Best state for business in Australia revealed

New South Wales CBD — People walk through the Central Business District on the first day of Autumn in Sydney March 1, 2004. Reuters/David Gray

A recent survey suggests that New South Wales is the best place for business in Australia. Businesses in the area have experienced the best trading conditions over the 2016/17 fiscal year.

The survey from National Australia Bank stressed that the state’s Business Conditions Index was more than three times its 10-year average. Several factors such as profitability, sales activity of businesses in the country and hiring intentions were measured.

The index was above the national average for 31 successive months over the past year to June. For acting treasurer Victor Dominello, the findings imply a promising future for New South Wales. He said that businesses in the state are driving it forward, providing jobs and pushing the economy. Dominello believes that the survey confirms NSW has the right condition for hardworking businesses to keep doing well.

"Importantly, the large pipeline of construction work in NSW, whether it be for housing or infrastructure, will continue to be the bedrock of success for businesses in this state,” The Northern Star quotes him as saying. Furthermore, NSW business conditions have been at or above the national average for several months.

Meanwhile, a new report by Commonwealth Bank senior economist Gareth Aird revealed the impact of high immigration rates. "Per capita measures of the economy suggest that growth in living standards has stagnated and for some sections of the resident population, in particular younger people, it has gone backwards," he wrote, according to The ABC.

Aird has warned that if the economy does not produce sufficient jobs to cover the lift in the population, labour market slack will rise. He pointed out that it has been the case in Australia since the end of the mining boom. The solution to the deterioration in average household living standards, according to him, is government intervention. The government is expected to pursue more policies that would generate more jobs.

According to Aird, the government needs to ensure sufficient new public services and transport infrastructure if it chooses to keep a relatively high immigration intake. He argued it must also be accompanied by commensurate growth in public investment. Aird is also arguing the need to cut the inward flow of immigration, pointing that the country has one of the highest population growth rates among developed economies.

The Bureau of Statistics wage price index (WPI) was rising at an annual pace of just 1.9 percent at the end of March. Average weekly earnings (AWE) climbed by 1.6 percent.

Internet of things pioneer Nest launches in Australia