Least Risky Industries in Australia in 2020

1. Diagnostic Imaging Services in Australia

2020 Overall Risk Score: 2.81

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

2. Solid Waste Collection Services in Australia

2020 Overall Risk Score: 2.82

The Solid Waste Collection Services industry has grown over the past five years. The industry has been supported by rising waste volumes from households, while strong construction activity early in the period boosted demand from the Construction division. However, the COVID-19 pandemic has partially offset revenue growth, as social distancing measures have reduced demand from some downstream markets, such as construction and hospitality. Overall, industry revenue is forecast to increase at an annualised 1.6% over the five years through 2020-21, to $5.6 billion. This includes an anticipated decline of 3.9% in the current year, primarily due to the effects of... Learn More

3. Intellectual Property Leasing in Australia

2020 Overall Risk Score: 2.97

The Intellectual Property Leasing industry plays a vital role in the Australian economy. Operators lease their intellectual property, such as patents, trademarks, spectrum and other intangible property, to businesses in exchange for royalties or licensing fees. Businesses then use the intellectual property to create a range of products and services. The industry's largest market is manufacturing firms, such as chemical and pharmaceutical manufacturers, which lease patents and other intellectual property on new medicines and other chemical products to avoid the costs associated with research and development (R&D). Telecommunications firms are also a notable market, as these firms lease spectrum to... Learn More

4. Airport Operations in Australia

2020 Overall Risk Score: 3.01

The Airport Operations industry features several dominant players, with most aircraft movements going through Australia's major airports, such as Sydney, Melbourne and Brisbane. Airport operators generate revenue by charging landing and terminal fees to domestic and international airlines. Airports also receive rental income from airlines and retail stores for space leased on their premises. Airservices Australia, the industry authority which controls Australian airspace, earns revenue mostly on a per-aircraft basis. As a result, the volume of aircraft movements and passengers carried strongly correlates with industry growth.

Over the four years through 2018-19, a rising number of visitors from Asia and strong... Learn More

5. Electricity Distribution in Australia

2020 Overall Risk Score: 3.07

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

6. Scientific Research Services in Australia

2020 Overall Risk Score: 3.15

The Scientific Research Services industry includes a range of government and private sector organisations operating across many scientific research fields, particularly in medical, health and IT. The industry relies heavily on public sector funding, despite the Australian Government increasingly calling for greater self-funding. Industry firms continue to face greater pressure to generate own-source revenue by raising funds through donations and co-investment with other corporations and governments, and through royalty and licence revenue on intellectual property. Private businesses can also commercialise their research by generating revenue streams after taking developed products to market. These pressures are anticipated to continue over the... Learn More

7. Defence in Australia

2020 Overall Risk Score: 3.19

The Defence industry is a Federal Government monopoly that is operated through the Department of Defence. The industry administers a public service to the Australian population by providing national security. Industry revenue is primarily made up of Federal Government appropriations on behalf of taxpayers to fund necessary defence expenditure. The Defence industry is expected to grow at an annualised 2.3% over the five years through 2019-20, to $35.8 billion. The industry has grown strongly since the Coalition's victory in the 2013 Federal Election with the party aiming to achieve their goal of defence expenditure three years ahead of its election... Learn More

8. Nature Reserves and Conservation Parks in Australia

2020 Overall Risk Score: 3.19

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

9. Hotels and Resorts in Australia

2020 Overall Risk Score: 3.30

The fortunes of the Hotels and Resorts industry have been mixed over the past five years. Over the four years through 2018-19, the depreciating Australian dollar supported the industry by increasing the number of international arrivals, particularly from Asian countries, by making it cheaper to travel in Australia. The weak dollar also made it more expensive for Australians to travel overseas. This trend boosted the number of international and domestic tourist visitor nights over the period, increasing demand for the industry's services. In addition, an increase in domestic business travel activity, which is a major revenue stream for larger hotels,... Learn More

10. Water Passenger Transport in Australia

2020 Overall Risk Score: 3.33

The Water Passenger Transport industry provides water-based transport, including city-based ferries in harbours and rivers, boat and ship hire with crew, ferry services on longer routes, and cruise services. These services are typically provided to commuters, and domestic and international tourists. The industry does not include water-based sightseeing transport services. Industry firms are subject to competition from substitute services, such as low-cost air travel, and rail and road transport.

Industry revenue is expected to grow at an annualised 0.4% over the five years through 2019-20, to total $1.3 billion. The Australian dollar has depreciated over the past five years, making it... Learn More