Least Risky Industries in Australia in 2021

1. Local Government Administration in Australia

2021 Overall Risk Score: 2.76

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 2.4% over the five years through 2020-21, to $54.3 billion. This includes an expected... Learn More

2. Zoological and Botanical Gardens in Australia

2021 Overall Risk Score: 2.87

Government funding and attendance numbers drive the Zoological and Botanical Gardens industry's performance. Over the three years through 2018-19, rising domestic and international tourism supported the industry, with self-generated revenue through admissions increasing strongly. The depreciation of the Australian dollar over the period drove increases in tourism activity, as it made Australia a cheaper option for overseas travellers. In addition, the weak Australian dollar caused the cost of overseas tourism to remain relatively higher than domestic alternatives, prompting domestic tourism in Australia to rise.

Tourism activity has dropped strongly over the two years through 2020-21, due to the COVID-19 pandemic. In... Learn More

3. Electricity Distribution in Australia

2021 Overall Risk Score: 2.90

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

4. Water Passenger Transport in Australia

2021 Overall Risk Score: 2.94

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 decrease at an annualised 11.2% over the five years through 2020-21, to $776.9 million. The COVID-19 pandemic has put heavy downwards pressure on industry performance, with revenue... Learn More

5. Airport Operations in Australia

2021 Overall Risk Score: 2.96

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

6. Sports and Physical Recreation Clubs in Australia

2021 Overall Risk Score: 3.03

The Sports and Physical Recreation Clubs industry has been severely affected by the COVID-19 pandemic. The industry was growing steadily at the start of the past five-year period due to the continuing popularity of Australian sport. Steady growth in spectator sport participation boosted club memberships and attendances at major sporting events. Rising sport participation, particularly among younger demographics, also benefited operators of local and regional amateur sports clubs. However, the outbreak of COVID-19 prompted many amateur and community clubs to suspend their competitions and shutdown facilities. Professional sports clubs were also affected. When their competitions were able to resume, restrictions... Learn More

7. Pipeline Transport in Australia

2021 Overall Risk Score: 3.15

The Pipeline Transport industry operates large pipelines, particularly high-pressure gas transmission pipelines. Gas transmission accounts for the vast majority of industry activity. The industry provides a vital connection between gas producers and gas retailers, which distribute gas via low-pressure distribution pipelines. Industry operators also supply gas to major industrial firms. Demand for industry services is driven by final demand for energy in the Australian economy, and demand from export markets served by Australian oil and gas fields. Industry operators have benefited from increasing domestic gas consumption over the past five years, and Australia's proximity to Asian markets, as these countries... Learn More

8. Defence in Australia

2021 Overall Risk Score: 3.16

The Defence industry is a Federal Government monopoly that is operated through the Australian Defence Organisation, which consists of the Department of Defence and the Australian Defence Force (ADF). 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. Industry revenue is expected to grow at an annualised 2.1% over the five years through 2020-21, to $38.6 billion. The industry has grown strongly since the Coalition's victory in the 2013 Federal Election, with the party anticipated to... Learn More

9. Hotels and Resorts in Australia

2021 Overall Risk Score: 3.22

The fortunes of the Hotels and Resorts industry have been mixed over the past five years. Over the three 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, increased domestic business travel activity, which is a major revenue stream for larger hotels, further supported... Learn More

10. Nature Reserves and Conservation Parks in Australia

2021 Overall Risk Score: 3.22

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 most of their revenue through funding from federal, state and local governments. Consequently, the industry is highly sensitive to changes in government funding. Funding from... Learn More