Queensland dethrones powerhouse WA as nation’s best performing economy

Western Australia has been knocked off its perch as Australia’s top performing economy.

WA has been top dog in four of the past six quarters of the CommBank State of the States report but has been upstaged by Queensland in the June 2026 quarter.

The report ranks each state on eight key indicators including economic growth, retail spending and employment.

On the back of booming dwelling and business investment, Queensland moved up one place over the June quarter and three places over the year.

CommBank economist Harry Ottley said Queensland’s investment and business boom was driving the state forward.

“Queensland’s rise to No.1 is about consistency rather than one single standout result, with dwelling and business investment now doing more of the heavy lifting,” he said.

Dwelling investment was the clear standout, as it grew 16.8 per cent over the year in Queensland – the strongest growth in the country – while business investment increased 9 per cent.

The Sunshine State also boasts the second lowest unemployment rate and the second best wage increase.

Household consumption, which dropped 1.9 per cent over the year, was the only negative in Queensland.

South Australia was the big mover this quarter, leaping two spots to claim second place outright and pushing powerhouse WA down to third.

SA’s public demand surged 5.6 per cent over the year, the strongest result in the country.

Wage growth told the same story, climbing 3.6 per cent annually, also the nation’s best.

WA still has the most balanced economic profile of any state or territory, ranking between second and fifth on every indicator.

NSW ranked fourth, down one place over the quarter but two places higher than a year ago.