Tasmania led the report on five out of eight economic indicators, including relative population growth, equipment investment, housing finance, dwelling starts, and retail trade. 

There has been a reshuffling of the rankings since last quarter, with Victoria slipping to third from second overall.

Despite strict COVID lockdowns and a shutdown of retail and service businesses, Victoria still ranks first for economic growth, however.

It also ranks first on construction work done.

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LenderHome LoanInterest Rate Comparison Rate* Monthly Repayment Repayment type Rate Type Offset Redraw Ongoing Fees Upfront Fees Max LVR Lump Sum Repayment Additional Repayments Split Loan Option TagsFeaturesLinkComparePromoted ProductDisclosure
6.04% p.a.
6.06% p.a.
$3,011
Principal & Interest
Variable
$0
$530
90%
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Disclosure
5.99% p.a.
5.90% p.a.
$2,995
Principal & Interest
Variable
$0
$0
80%
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  • No application or ongoing fees. Annual rate discount
  • Unlimited redraws & additional repayments. LVR <80%
  • A low-rate variable home loan from a 100% online lender. Backed by the Commonwealth Bank.
Disclosure
5.69% p.a.
6.16% p.a.
$2,899
Principal & Interest
Fixed
$0
$530
90%
  • Available for purchase or refinance, min 10% deposit needed to qualify.
  • No application, ongoing monthly or annual fees.
  • Flexibility to split your loan with both fixed and variable rates
Disclosure
Important Information and Comparison Rate Warning

Base criteria of: a $400,000 loan amount, variable, fixed, principal and interest (P&I) home loans with an LVR (loan-to-value) ratio of at least 80%. However, the ‘Compare Home Loans’ table allows for calculations to be made on variables as selected and input by the user. Some products will be marked as promoted, featured or sponsored and may appear prominently in the tables regardless of their attributes. All products will list the LVR with the product and rate which are clearly published on the product provider’s website. Monthly repayments, once the base criteria are altered by the user, will be based on the selected products’ advertised rates and determined by the loan amount, repayment type, loan term and LVR as input by the user/you. *The Comparison rate is based on a $150,000 loan over 25 years. Warning: this comparison rate is true only for this example and may not include all fees and charges. Different terms, fees or other loan amounts might result in a different comparison rate. Rates correct as of . View disclaimer.

Important Information and Comparison Rate Warning

Overall, the ACT ranks second; Victoria third; NSW and SA tied fourth; WA and Queensland tied sixth; and Northern Territory in last spot.

Queensland arguably has the most 'open' economy during the pandemic, reflected in its second overall ranking for retail spending, up 8.91% on decade-average levels.

However, CommBank's chief economist Craig James said that retail trade figures during the pandemic are to be taken with a grain of salt.

"Retail spending may be up sharply on a year ago, but from depressed levels," he said.

"Overall spending may still be well below 'normal'. And clearly some states such as Queensland and Western Australia traditionally have had faster economic growth rates due to historically faster population growth."

CommBank lists Queensland's weakness as relative economic growth.

The state also ranks second-worst in relative unemployment, behind NSW, and second-worst in equipment investment behind NT.

Queensland's unemployment sits at 7.7%, 26.3% above the decade average, while NSW's jobless rate is at its highest level in 22 years.

Last month, Queensland's Housing Minister Mick de Brenni cited 'economic strength' as reason for being the only state not to extend rental eviction moratoriums. 

In a bright spot, despite housing market uneasiness, in seven of the states and territories, housing finance commitments are above decade averages, up from five in the previous quarter. 

The outlier was the Northern Territory, with housing commitments 9.5% lower than its decade average. 

Home building in Tasmania has also been strong, being the only state to record a positive result compared to the decade average.

CommBank cited population growth and lower home prices compared to the mainland as reasons for the buoyed 'dwelling starts'.

Tasmania was also tied first with South Australia for wage growth, with the wage price index up 2.4% in the June quarter. 

CommBank's report also said the ACT is the only state or territory where annual new vehicle sales are above 'normal'.

The 'State of the States' reports compares states' eight economic indicators, compared to decade averages. 





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