Australia’s Leading Economies

Western Australia continues to have Australia’s strongest economy, according to the Institute of Public Affairs’ latest State Economic Scorecard.

The scorecard, which assesses each state on ten key economic indicators, says Western Australia has higher wage growth and retail turnover compared to other states, as well as the lowest tax and debt burdens.

Tasmania came in second place, leading the nation for productivity and per capita economic growth. Its capital Hobart also had the lowest median rent.

Queensland came in third place, due to low wage growth in 2025 and an average comparative performance on other criteria.

South Australia was fourth, recognised for its “dynamic business environment”, although it was marked down for its relatively high energy costs and productivity decline.

Victoria remains in fifth place due to its tax and debt burdens, as well as declining per capita economic output.

New South Wales was at the bottom of the ladder, with lower business investment, lower retail turnover, higher tax burden, and higher median rent in its capital compared to other states.