Least Risky Industries in Australia in 2020

1. Government Schools in Australia

2020 Overall Risk Score: 2.53

The Government Schools industry has grown over the past five years due to rising student numbers and government funding. The industry receives most of its income from the federal, state and territory governments, with state and territory funding providing approximately 80% of revenue. Political debate surrounding school funding has introduced volatility to industry revenue over the past five years. However, student enrolment numbers have increased over the period, lifting revenue. Growth in discretionary incomes has allowed parents and guardians to contribute more to school fees, despite also increasing the affordability of competing private schools. Overall, industry revenue is expected to... Learn More

2. Crisis and Care Accommodation in Australia

2020 Overall Risk Score: 2.62

The Crisis and Care Accommodation industry is part of Australia's community welfare sector, and provides services for some of the most economically vulnerable people in Australian society, including children, those with long-term disabilities and the elderly. In the face of high rental costs and housing stress, a growing number of Australians are at increased risk of homelessness, with many experiencing financial hardship, persistent disadvantage and social exclusion. Over three million Australians live in poverty, of which 739,000 are children, while over 116,000 Australians are homeless. This result is despite various national policies designed to reduce homelessness.

The industry heavily depends on... Learn More

3. Personal Welfare Services in Australia

2020 Overall Risk Score: 2.67

The Personal Welfare Services industry provides community and welfare services to disadvantaged individuals, including children and the elderly. Many individuals using industry services have long-term disabilities or are experiencing economic hardship. Welfare services include those designed to assist the frail and disabled in community settings, thereby circumventing the need for institutional care. The industry also provides early intervention, prevention and counselling services. Most industry operators are small, non-profit social service organisations that rely on government funding and volunteers to operate.

Welfare providers in Australia have benefited from high and increasing government funding over the past decade. Industry revenue is expected to... Learn More

4. Grain Storage in Australia

2020 Overall Risk Score: 3.02

Operators in the Grain Storage industry have faced grain production volatility over the past five years. Industry revenue is expected to decline at an annualised 1.7% over the five years through 2019-20, to $2.7 billion, due to falling grain production. However, this does not reflect the volatility that many industry operators have contended with over the period. Shifting wheat prices, movements in the Australian dollar and fluctuating grain production due to changing rainfall levels have influenced industry demand and earnings. Additionally, a record national grain harvest during 2016-17 significantly increased demand for grain storage. However, dry and hot weather conditions... Learn More

5. Nature Reserves and Conservation Parks in Australia

2020 Overall Risk Score: 3.08

The role of the Nature Reserves and Conservation Parks industry is to protect Australia's flora, fauna and natural ecosystems. Industry operators, such as government agencies, Indigenous groups and private landholders, manage Australia's network of protected land areas, known as the National Reserve System. State government agencies manage most national and state parks, while the Federal Government manages only six national parks. Alongside terrestrial protected areas, the industry also manages marine parks and reserves.

Industry operators generate the majority of their revenue through funding from federal, state and local governments. Consequently, the industry is highly sensitive to changes in government funding. Despite... Learn More

6. Child Care Services in Australia

2020 Overall Risk Score: 3.21

Approximately 1.3 million children aged 12 and under are expected to attend some form of government-approved or government-funded child care service in 2019-20. Over the past five years, the Federal Government has increased assistance for parents who want to put their children in formal care as they return to the workforce, which has aided industry revenue. Rising maternal workforce participation has supported demand for child care services over the period. Furthermore, the Federal Government has relaxed regulations to allow childcare centres to register as kindergartens. This regulatory change has allowed long day care centres to compete directly with the Preschool... Learn More

7. Diagnostic Imaging Services in Australia

2020 Overall Risk Score: 3.25

The Diagnostic Imaging Services industry has performed strongly over the past five years. Diagnostic imaging provides healthcare practitioners with crucial information about patients' health. Industry services, such as X-rays, ultrasounds and MRIs, are integral to delivering high-quality health care. Demand for these services is stronger among older people, and has surged as Australia's population has aged over the past five years. Price competition and government policies have supported bulk-billing over the period, making diagnostic imaging more affordable and boosting service volumes. Industry revenue is expected to rise at an annualised 3.0% over the five years through 2019-20, to $4.1 billion.... Learn More

8. Electricity Distribution in Australia

2020 Overall Risk Score: 3.34

Operators in the Electricity Distribution industry use networks to transport electricity from high-voltage transmission networks to households and businesses. These distribution networks are built and regulated to ensure a safe and reliable supply of electricity, even during peak demand periods in summer. Network operators have extended their networks substantially over the past decade, to account for potential rises in peak electricity demand. Regulators allow industry operators to generate a return on their capital so they can pay debt and equity holders. Historically, the amount of revenue that regulators have permitted the industry to capture from users has been proportional to... Learn More

9. Sewerage and Drainage Services in Australia

2020 Overall Risk Score: 3.45

The Sewerage and Drainage Services industry has performed moderately well over the past five years. Industry revenue is projected to increase at an annualised 1.5% over the five years through 2019-20, to $10.7 billion, with moderate yearly volatility. This reflects higher sewerage service prices in most years, and an increase in volumes treated, largely due to rising business numbers and population growth. Revenue is anticipated to increase by 3.0% in the current year, as the industry continues to provide wastewater collection and treatment services to more households and businesses.State governments own most of the industry’s operations. This is largely due... Learn More

10. Correctional and Detention Services in Australia

2020 Overall Risk Score: 3.50

The Correctional and Detention Services industry aims to provide a safe, secure and humane correctional system that incorporates elements of rehabilitation, education and community protection. The industry encompasses the operation and management of prisons, community correctional facilities, programs for adult offenders, immigration detention centres, juvenile detention facilities and other related services. Most industry revenue comes from publicly funded and government-operated facilities. A small number of privately operated companies accounts for most of the remaining proportion of yearly industry revenue. Industry performance is generally influenced by criminal activity rates, government capital expenditure and appropriation levels, overall population trends and rates of... Learn More