Least Risky Industries in Australia in 2022

1. Community Services in Australia

2022 Overall Risk Score: 2.58

Organisations in the Community Services subdivision play an important role in supporting Australia's welfare system. Subdivision operators help to arrange care and counsel for individuals in need, including the economically disadvantaged and other vulnerable members of society, such as children and the elderly. Not-for-profit organisations and private enterprises in the subdivision are expected to receive $70.0 billion from government funding, donations and private income in 2021-22. Subdivision revenue is expected to increase at an annualised 4.3% over the five years through 2021-22. Favourable demographic trends and ongoing government funding have contributed to revenue growth. The COVID-19 pandemic has also supported... Learn More

2. State Government Administration in Australia

2022 Overall Risk Score: 2.84

The State Government Administration industry is made up of the eight state and territory governments across Australia. Under the Australian Constitution, state and territory governments are responsible for everything that is not a Federal Government responsibility. This includes, but is not limited to, schools, hospitals, roads and railways. This report includes all actions that state and territory governments undertake. As a result, it double counts key information with other industries in Australia. For example, teachers employed in government schools in Australia are included as employees in both the State Government Administration industry and the Government Schools industry. State and territory... Learn More

3. Aged Care Residential Services in Australia

2022 Overall Risk Score: 2.87

As Australia's population ages, demand for age-appropriate housing increases. Older individuals are more susceptible to a range of age-related ailments and need more assistance with everyday activities and personal care. As aged-care requirements have changed over the past five years, the Aged Care Residential Services industry has expanded, offering different lifestyle accommodation options. This expansion, combined with more flexible pricing and ongoing government funding for aged-care, has supported revenue growth over the period.

A challenging operating environment has limited the industry's growth over the past five years. Industry revenue is expected to rise at an annualised 2.8% over the five years... Learn More

4. Facilities Management and Other Office Administrative Services in Australia

2022 Overall Risk Score: 2.89

The Facilities Management and Other Office Administrative Services industry benefited from rising demand for outsourced services prior to the COVID-19 pandemic. Positive business confidence and a rising number of businesses in Australia until 2019-20 provided operators with an expanding market of potential customers and a steady source of demand. Downstream markets have increasingly accepted the cost reduction benefits of outsourcing non-core functions, supporting demand for industry services over much of the past five years. However, the COVID-19 pandemic is expected to constrain demand for industry services over the two years through 2020-21, offsetting any growth over the past five years.... Learn More

5. Foreign Banks in Australia

2022 Overall Risk Score: 2.94

The Foreign Banks industry has reversed its fortunes over the past five years. Following a decline in the cash rate to historic lows in August 2016, out of cycle interest rate hikes by most banks have since supported industry growth. However, declines in the rate in the current year, and the impact of the COVID-19 outbreak on the economy have constrained the industry's performance. Growing investment from overseas and the rising globalisation of businesses have further contributed to industry growth over the much of the period. Overall, industry revenue is expected to rise at an annualised 5.6% over the five... Learn More

6. Non-Depository Financing in Australia

2022 Overall Risk Score: 2.96

The Non-Depository Financing industry has grown over the past five years on the back of increased loan volumes. This is despite operating in a low interest rate environment over the period, with the RBA attempting to stimulate the economy by cutting the official cash rate to historic lows. Non-bank lenders have benefited from tighter lending standards implemented by major banks and the fallout from the Financial Services Royal Commission over the past five years, with households, and small and medium enterprises (SMEs) increasingly turning towards non-bank lenders for alternative financing solutions. However, APRA temporarily relaxed some of the capital requirements... Learn More

7. Airport Operations in Australia

2022 Overall Risk Score: 3.03

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 that controls Australian airspace, earns revenue mostly on a per-aircraft basis. As a result, the volume of aircraft movements and passengers carried strongly correlate with industry growth.

Over the two years through 2018-19, rising inbound tourist numbers and strong growth in outbound... Learn More

8. Police and Firefighting Services in Australia

2022 Overall Risk Score: 3.16

The Police and Firefighting Services industry is vital to Australia's security and emergency response capabilities. Each state and territory is predominantly responsible for operating its own police and firefighting services. The role of firefighting organisations includes responding to fires, investigating fires, developing safety codes, responding to road accidents, managing hazardous materials and educating the community about fire safety. The Federal Government oversees the Australian Federal Police (AFP), which enforces national laws and provides community policing services in the Australian Capital Territory.

Major sporting, cultural or political events often require additional police services. One-off natural disasters, such as cyclones, catastrophic flooding and... Learn More

9. Local Government Administration in Australia

2022 Overall Risk Score: 3.19

The Local Government Administration industry includes municipal councils in Australia. These bodies provide vital services to their local communities, including urban and land planning, building approvals, road maintenance, parking services, health services, library operation, recreation and culture operations, and waste management services. Councils also have the ability to enforce federal and state laws, and instate local laws. The industry has three primary means of generating income: rates charges, user charges, including statutory fees and fines, and government funding.

Industry revenue is expected to increase at an annualised 0.8% over the five years through 2021-22, to $52.8 billion. This includes an... Learn More

10. Aircraft Manufacturing and Repair Services in Australia

2022 Overall Risk Score: 3.25

The Aircraft Manufacturing and Repair Services industry maintains and repairs commercial and military aircraft, and manufactures aircraft and aircraft components. Industry revenue has declined over the past five years, due to decreased air travel as a result of the COVID-19 pandemic. Commercial airlines, which represent a significant market for the industry, have placed fewer orders and required less maintenance, repair and overhaul (MRO) services due to limited flight numbers. Industry firms conduct MRO services for military and commercial fleets, with growth in capital expenditure on defence supporting revenue and offsetting some of the decline over the period. Almost all domestically... Learn More