Tasmania falls to last in latest CommBank economic report

The latest CommBank ranking of states and territories' performance across a series of key indicators puts Tasmania at the bottom of the pack, where it has been for all of 2026. The report found the state has the highest unemployment rate in the country, with total labour income slowing more than any jurisdiction except for Western Australia and the ACT. What's next? Treasurer Eric Abetz says the government's investment in projects such as the Hobart stadium and Launceston Convention Centre will ensure the Tasmanian economy remains resilient "in the face of economic headwinds". Tasmania has ranked last in CommBank's latest State of the States economic report, a significant decline from four years ago when it repeatedly topped the ranking. The quarterly report, produced by the Commonwealth Bank of Australia, measures six economic indicators and compares states and territories' performances to their decade average or norm. States and territories are measured on how much they have improved against themselves. The latest report ranks Tasmania at the bottom of the pack, where it has been for all of 2026. The report found the state has the highest unemployment rate in the country, up from 3.8 per cent a year ago to 5.1 per cent. Wage growth has slowed, and total labour income is slowing more than any jurisdiction except for Western Australia and the ACT. Business investment grew slightly, while investment in housing fell by 6.2 per cent. Public demand, which is government spending, ranks last, but the recent figures are distorted because of the purchase of the new Spirit of Tasmania vessels. The only positive indicator was household consumption, which was up by 2.1 per cent, giving Tasmania its highest rank of fourth place. The report said this may be down to an older population that has paid off mortgages and is not impacted by rising interest rates. It also said there was a "clear risk" that the labour market deterioration eventually impacted household spending, describing the labour market as concerning. "Employment growth is so weak that even subdued labour-supply growth is not preventing unemployment from rising," it said. Four years ago, Tasmania was regularly topping the State of the States report, and even when it did not land on top, it claimed top position in some performance indicators. The government marked these moments with media releases with titles such as "Tasmanian economy continues to grow under strong Liberal leadership" and "Tasmania's economic resilience on full display". "We have a clear plan and these outcomes are the result of the strong actions we have taken to rebuild our economy, providing a business-friendly, job-creating environment that encourages investment and promotes growth," former treasurer Guy Barnett said in October 2022. Referencing the Liberal government's prior claims that the report "proved their economic plan was working", Labor Shadow Treasurer Dean Winter said the latest CommBank report showed the opposite. "By their own test, today's result proves their plan is failing," Mr Winter said. "After 13 years, the Liberals have left Tasmania with the worst-performing economy in the country, rising unemployment, spiralling debt, and a downgraded credit rating." He said the state was "experiencing an unprecedented economic and fiscal storm". "We have not seen job losses like this since the global financial crisis," he said. "But unlike that period, when economies across the country were slowing, Tasmania is now going backwards while other states continue to grow." Hobart stadium, Launceston convention centre will bolster economy, Abetz says In a statement, Treasurer Eric Abetz said the economy "continues to be resilient despite persistent economic challenges nationally, including rising interest rates". "When Labor was last in government, the unemployment rate had a 7 in front of it," he said. "Since then, we have created more than 40,000 jobs and continue to invest in job-creating projects. "Our economic resilience was reflected in the latest NAB Quarterly Business Survey, which ranked Tasmania first among the states for both business conditions and business confidence." He said the government's significant investment in projects such as the Hobart stadium and Launceston Convention Centre will ensure the economy remains resilient "in the face of economic headwinds".