Aussie businesses grow amidst industry shifts

ABS reports a vibrant year with notable entries, exits, and sector changes

Aussie businesses grow amidst industry shifts


By Mina Martin

As of June 30, the Australian economy is home to 2,589,873 actively trading businesses, marking a 0.8% increase, or 19,973 businesses, from the previous year, according to fresh figures from ABS.

The 2022-23 financial year saw a vibrant activity with a 15.8% entry rate, equating to 406,365 new businesses, and a 15% exit rate, with 386,392 businesses closing down.

Industry movements: Winners and losers

The health care and social assistance sector led the growth with a 6.1% increase, followed by financial and insurance services at 2.7%, and transport, postal, and warehousing at 2.4%.

On the flip side, the administrative and support services and retail trade sectors experienced the largest decreases, at 1.6% and 1.4% respectively.

State and territory dynamics

Queensland boasted the largest net business increase of 11,031, while Victoria was the only region to see a decline, with 7,606 businesses exiting the market.

Institutional and legal frameworks

The financial year also highlighted a 5.1% growth in financial corporations and a 3.3% rise in non-financial corporations, to a total of 96,082 and 1,109,777 businesses, respectively. Conversely, household-based businesses decreased by 1.4% to 1,381,741.

Households represented 53.4% of all businesses, making them the largest segment among institutional sectors.

Companies experienced the most significant net growth among legal organisations, with a 4% increase to 1,094,465 total. Additionally, there was a 3.8% decrease, amounting to 8,790, in partnerships, bringing the total to 223,048 and a 1.7% reduction, or 42,246, in sole proprietorships, totalling 784,744.

Employment and turnover trends

There was a 2.3% increase in non-employing businesses, while businesses with 20-199 employees and those with 200+ employees grew by 8.8% and 8%, respectively. However, the number of businesses with one to four employees saw a 3.5% decrease.

In terms of turnover, businesses with less than $2 million dominated, though there was a significant movement of surviving businesses to higher turnover ranges.

Quarterly experimental counts and seasonal adjustments

The December quarter showed a slight 0.2% decrease in business numbers but revealed interesting industry subdivision trends with increases in postal and courier services and social assistance services.

Seasonally adjusted data for the same quarter indicated a 1.1% increase in the total number of businesses, suggesting a resilient and dynamic Australian business environment despite seasonal fluctuations.

For a deeper dive into the complexities of the Australian business sector, including detailed analyses of industry movements, institutional sectors, and employment size trends, visit the ABS website.

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