Western Australia remained Australia's best performing economy while the Australian Capital Territory (ACT) is the second strongest, overtaking the Northern Territory, according to CommSec's quarterly State of the States report released Monday.
The report showed that New South Wale is the fourth strongest on economic growth followed by Victoria and Queensland.
South Australia is still in the seventh place, while Tasmania has the nation's worst-performing economy.
The report analyzed eight key indicators, including economic growth, retail spending, equipment investment, unemployment, construction work done, population growth, housing finance and dwelling commencements.
"We are going to see a passing of the baton -- the mining sector is peaking in terms of new investment, but the housing sector is lifting," CommSec chief economist Craig James said in the report.
"And after a long period of relative inactivity, a lack of building across the nation, we are seeing an improvement and that does have significant multiplier effects right through the broader economy."
James said the election was central to the current situation in the economy and the future outlook for the economy.