Least Risky Industries in Australia in 2021

1. State Government Administration in Australia

2021 Overall Risk Score: 2.60

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

2. Facilities Management and Other Office Administrative Services in Australia

2021 Overall Risk Score: 2.68

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

3. Local Government Administration in Australia

2021 Overall Risk Score: 2.73

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

4. Police and Firefighting Services in Australia

2021 Overall Risk Score: 2.96

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

5. Foreign Banks in Australia

2021 Overall Risk Score: 3.13

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

2021 Overall Risk Score: 3.16

The Non-Depository Financing industry has operated in a low interest rate environment over the past five years. As the RBA attempted to stimulate the economy by cutting the official cash rate to historic lows, growth in interest revenue generated on industry operators’ lending portfolios remained stagnant over the first half of the past five years. However, non-bank lenders have benefited from tighter lending standards implemented by major banks and the fallout from the Financial Services Royal Commission over the second half of the five-year period. Households, and small and medium enterprises (SMEs) have increasingly turned towards non-bank lenders for funding.The... Learn More

7. Commercial Cleaning Services in Australia

2021 Overall Risk Score: 3.26

The Commercial Cleaning Services industry has had a mixed performance over the past five years. Revenue increased over the four years through 2019-20, but this growth has been partly offset by an anticipated decline in the current year due to the COVID-19 pandemic. Industry revenue is expected to increase at an annualised 0.6% over the five years through 2020-21, to $12.3 billion. This includes an anticipated decline of 4.7% in the current year, as the number of businesses declines across the economy, causing demand for cleaning services to fall. This trend has offset greater demand for deep cleaning and additional... Learn More

8. Accounting Services in Australia

2021 Overall Risk Score: 3.30

Revenue in the Accounting Services industry has fallen slightly over the past five years, as demand for services has been mixed. Audit and tax services have remained a dependable source of revenue for industry firms, as some businesses legally require these services. However, increasing price competition has limited profit margins from these services. Rising demand for industry-specific advisory services has supported revenue over the period, with many operators expanding their advisory services. Industry operators are increasingly incorporating technology, such as data analytics and cloud-based accounting, which has expanded value-added services. These value-added services have larger profit margins than traditional tax... Learn More

9. Sewerage and Drainage Services in Australia

2021 Overall Risk Score: 3.33

Operators in the Sewerage and Drainage Services industry have faced a difficult operating environment over the past five years. Industry revenue is expected to decline at an annualised 1.6% over the five years through 2020-21, to $9.5 billion, with moderate yearly volatility. This revenue fall is mainly due to declines in 2019-20 and 2020-21, as COVID-19 forced the temporary closure of many businesses, resulting in a surge in unemployment. In addition to lower incomes, some households and businesses are likely to default on their utility payments, including those to the industry. Revenue is anticipated to fall by 2.3% in the... Learn More

10. Investigation and Security Services in Australia

2021 Overall Risk Score: 3.34

The Investigation and Security Services industry has grown at a steady pace over the past five years, despite the negative effects of the COVID-19 pandemic on many parts of the economy in 2019-20 and 2020-21. Although criminal activity has declined over the past five years, cautious businesses and households have continued to invest in security services and crime-prevention measures to protect themselves and their assets. Demand for industry services has also risen due to heightened global concerns regarding terrorism and cybercrime. Technology now plays a key role in crime prevention, including closed-circuit television, online security and protection from fraud.

The industry... Learn More