Least Risky Industries in Australia in 2022

1. Student Housing Management in Australia

2022 Overall Risk Score: 2.56

The long-term expansion of the Student Housing Management industry has been underpinned by the strong growth in foreign student enrolments in local tertiary institutions along with greater funding for the construction of purpose-built student accommodation (PBSA). Student housing managers assist investors with tenant administration, leasing and rent collection, as well as providing traditional property management services, such as managing tenant and landlord interactions. The industry generates its revenue through a fee on the rental income that landlords receive, which is largely paid by foreign students enrolled in Australian higher education institutions.

The industry's robust expansion prior to the COVID-19 pandemic was... Learn More

2. Airport Operations in Australia

2022 Overall Risk Score: 3.14

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

3. Wood Chipping in Australia

2022 Overall Risk Score: 3.25

The Wood Chipping industry has had mixed performance over the past five years, due to the Chinese government imposing export bans on woodchips in some years, and supply chain disruptions associated with the COVID-19 pandemic. Due to stringent regulations, the industry comprises a small number of forestry-associated companies. These industry operators mostly produce woodchips for export markets. The industry also includes smaller firms that operate next to sawmills and convert their residue into woodchips. Generally, the major industry players are either integrated forest companies or plantation managers that have expanded into logging and wood chipping.

Hardwood woodchip exports to China and... Learn More

4. Electric Vehicle Wholesaling

2022 Overall Risk Score: 3.36

The Electric Vehicle Wholesaling industry has grown rapidly over the past five years. Increased charging infrastructure availability has supported demand, as has an increased range of electric vehicle (EV) models. Rising concern about environmental issues has also assisted the industry, as consumers have sought to lower their environmental footprint. A mostly positive consumer index, which indicates households are optimistic about their financial position and more likely to make expensive purchases, has further supported this trend. Despite these factors, EVs are still unaffordable for many consumers due to their high price point, limiting their consumer market. Additionally, minimal federal and state... Learn More

5. Sewerage and Drainage Services in Australia

2022 Overall Risk Score: 3.61

Operators in the Sewerage and Drainage Services industry have faced a difficult operating environment over the past five years. Industry revenue is expected to only increase at an annualised 0.7% over the five years through 2021-22, to total $10.3 billion, with moderate yearly volatility. This low revenue growth is mainly due to declines in 2020-21 and 2021-22, and some pricing restrictions. Government lockdowns in response to the COVID-19 pandemic forced many businesses to temporarily close, leading to a surge in unemployment in 2019-20 and 2020-21. As a result, some households and businesses defaulted on their utility payments in 2020-21, including... Learn More

6. Personal Welfare Services in Australia

2022 Overall Risk Score: 3.62

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 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.

High and increasing government funding, including the new National Disability Insurance Scheme, has benefited welfare providers in Australia over the past decade.... Learn More

7. Liquid Waste Collection Services in Australia

2022 Overall Risk Score: 3.62

The Liquid Waste Collection Services industry has experienced volatile but mostly positive operating conditions over the past five years. Industry revenue is expected to rise at an annualised 4.7% over the five years through 2022-23, to $1.6 billion. This trend includes an anticipated increase of 4.0% in the current year, due to the continued economic recovery from the pandemic. Greater recycling rates and higher waste output have supported demand for liquid waste collection services over the past five years. Government regulations for collecting and transporting liquid waste have also strengthened over the period. Furthermore, stronger legislation has encouraged liquid waste... Learn More

8. Accounting Services in Australia

2022 Overall Risk Score: 3.63

Revenue in the Accounting Services industry has increased over the past five years, despite mixed operating conditions. 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 the profit margins associated with providing 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 and... Learn More

9. Correctional and Detention Services in Australia

2022 Overall Risk Score: 3.64

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 includes firms that operate and manage prisons, community correctional facilities, programs for adult offenders, onshore 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 remainder of industry revenue. Industry performance is generally influenced by criminal activity rates, government capital expenditure and appropriation, overall population trends, and incarceration rates. The COVID-19... Learn More

10. Water Treatment Services in Australia

2022 Overall Risk Score: 3.71

The Millennium Drought, one of the longest and most severe droughts in Australia's history, has made water supply a prominent political issue over the past decade. The lack of rainfall challenged the Water Supply industry, as it had historically depended on rainwater from large catchments. Each tier of government has focused on improving water security as dam levels have dropped and interest in augmenting water supply has grown. New techniques for recovering usable water from salt water, wastewater and stormwater emerged, contributing to greater demand for water treatment services.

The Water Treatment Services industry is expected to generate subdued revenue growth... Learn More