The purchasing power of Canberra households continues to rise as the national capital entrenches its position as the seat of high-income earners. The ACT economy is also remaining healthy, despite cuts to the public service by the Coalition government and the former Labor administration.
Subscribe now for unlimited access.
$0/
(min cost $0)
or signup to continue reading
The Australian Bureau of Statistics' update on state accounts for the last financial year, released on Thursday, gives the ACT a good report card.
The ACT has recorded the strongest growth of any of the non-mining states and the equal fourth-highest growth in gross household disposable income in the nation.
The territory is confirmed as having the highest gross household disposable income per capita - the best measure of purchasing power - which, at $81,314, is twice that of Victoria. This figure has risen by almost one-third in five years and more than 40 per cent in the past eight years.
The measure takes account of wages, the proportion of the population in work and the proportion of income going to rent.
The ACT is one of four jurisdictions to exceed the national growth rate of 2.6 per cent but the territory's economic output per resident is only half the national average.
Six jurisdictions had positive growth in gross state product per capita due to gross state product growth rates exceeding their state population growth rates for 2012-13.
Victorian has joined Tasmania as the only states where economic output per resident is shrinking.
ACT Treasurer Andrew Barr was upbeat about the results which show the ACT marginally above the national average. ''This is particularly noteworthy given growth nationally was driven mainly by the mining industry,'' he said. He noted that in the ACT, gross household disposable income was 83 per cent higher than the national average.
''Overall, the results are very positive and demonstrate the strong economic fundamentals of our economy,'' he said.
''The figures indicate the continued strong contribution that the public administration sector has made to the territory's growth.
''However, this growth may come under pressure in the coming year due to both the hit to confidence caused by the Coalition's planned deep cuts to the Commonwealth public service, and due to the foreshadowed cuts … from the Commission of Audit.
''Further, construction output is decreasing as several major projects … are winding up.
''As such, it is important that the ACT government continues to support the territory economy, including through maintaining a strong program of infrastructure spending.''
