This research note is the second annual state economic scorecard, whereby the performance of each Australian state across ten key economic measures is assessed and ranked. The measures use the most recently available data across a variety of macroeconomic metrics, and finds:
- Queensland is the overall best performing state, improving from its fourth-place ranking in 2024 due to its relatively low debt burden and energy prices, and strong wages, jobs, and retail trade growth.
- Tasmania improved from third in 2024 to second in 2025 due to stronger economic growth, wages and productivity growth.
- Western Australia, which ranked first overall in 2024, has fallen to third due to soft economic and productivity growth.
- South Australia declined from second in 2024 to fourth due to continuing weakness in energy prices and weak retail turnover.
- Victoria ranked fifth with weak economic growth and high tax and debt burdens.
- New South Wales is the worst overall performing state in the nation. Its key weaknesses were having the highest rental costs and lowest retail turnover in the country, the second highest tax burden and second lowest wages growth.
