The latest Institute of Public Affairs (IPA) State Economic Scorecard confirms a significant divergence in the Australian economic landscape, with Western Australia solidifying its position as the nation’s premier economy. While headlines often focus on national aggregates, the structural reality is that state-level performance dictates the long-term viability of property and wealth strategies.
Western Australia’s top ranking is underpinned by robust wage growth and retail turnover, combined with the structural advantage of having the lowest tax and debt burdens in the country. From a wealth creation perspective, this indicates an economy with high “velocity”—where residents have higher disposable income and the state government has more fiscal headroom to invest in infrastructure without aggressive taxation.
Conversely, the performance of New South Wales and Victoria highlights the risks of high debt and tax burdens. NSW’s position at the bottom of the ladder is particularly telling; high median rents in Sydney coupled with lower business investment create a “squeeze” that impacts both residents and investors. When taxes are high and investment is low, the long-term growth ceiling for property in those jurisdictions is naturally pressured.
Tasmania’s second-place finish, led by productivity and per capita growth, demonstrates that smaller markets can provide exceptional fundamental stability when managed efficiently. Queensland’s drop to third serves as a reminder that even high-demand markets require consistent wage growth to sustain economic momentum.
At Infinite Wealth, we look past short-term market “noise” to focus on these structural drivers. A state’s ability to foster business investment while maintaining low debt is a far more reliable indicator of future property performance than a single quarter of price growth. Understanding this hierarchy allows investors to position themselves where the economic tailwinds are strongest.
