Most Profitable Industries in Australia in 2021

1. Professional Services in Australia

Total Profit for 2021: $22.7B

The Professional Services subdivision provides various professional, scientific and technical services to a range of markets. The subdivision's performance is largely linked to overall economic conditions, which often determine business confidence and capital expenditure. Prior to the COVID-19 outbreak, technology development and greater business profit drove growth across the subdivision. Over the three years through 2018-19, accounting and management consultants benefited from downstream businesses looking to improve efficiencies as increased globalisation constrained profit margins. The COVID-19 pandemic has negatively affected the subdivision's largest industries, including the Engineering Consulting industry, the Management Consulting industry and Accounting Services industry. The subdivision is... Learn More

2. Office Property Operators in Australia

Total Profit for 2021: $10.4B

Operating conditions in the Office Property Operators industry have been volatile over the past five years. Prior to the outbreak of COVID-19 in 2019-20, solid demand from superannuation funds looking to benefit from steady long-term returns had supported the industry. Additionally, the gradual shift to a serviced-based economy over the past five years had increased the amount of non-manual employees in the workforce, and therefore demand for office floorspace. However, tenants have moved from premium-grade offices towards A-grade and B-grade offices over the period, due to rising rental costs. Furthermore, the popularity of hot desking and shared office spaces has... Learn More

3. Retail Property Operators in Australia

Total Profit for 2021: $8.1B

Weak retail trade conditions have caused the Retail Property Operators industry to decline over the past five years. Consumer goods retailers have faced mounting competitive pressures from online retailers over the period, constraining demand for floorspace. This trend has decreased rental yields and increased vacancy rates over the period. However, demand from supermarket and grocery stores has grown over the period, providing a steady source of rental income for some retail property operators. Furthermore, the cash rate has continued to decline over the period, reducing the cost of capital, and therefore allowing for greater investment into faciality expansions and developments.... Learn More

4. Financial Asset Investing in Australia

Total Profit for 2021: $5.8B

The Financial Asset Investing industry has benefited from a strong domestic sharemarket performance for most of the past five years. Typically, industry funds are invested in equities and industry revenue depends on the performance of global sharemarkets. The outbreak of COVID-19 in 2019-20 has led to significant disruption in both local and global equity markets. Consequently, industry revenue is expected to decline at an annualised 1.7% over the five years through 2020-21, to $10.0 billion. This includes an anticipated decline of 3.4% in the current year.

Market volatility has continued to impact the industry since the GFC. Economic and geopolitical unrest... Learn More

5. Residential Property Operators in Australia

Total Profit for 2021: $5.8B

Residential property operators are companies or individuals that draw income from renting out residential property. Industry demand is mainly driven by the number of households that do not own residential property, as these households have to rent property from industry operators. Although home ownership has traditionally been a priority for many Australians, housing price growth over the past five years has made it harder for consumers to save for a deposit and service increasingly costly mortgages. This trend has decreased the overall proportion of the population that owns the home they live in, supporting industry demand. Industry operators respond to... Learn More

6. Consumer Goods Retailing in Australia

Total Profit for 2021: $5.7B

The Consumer Goods Retailing subdivision has been subject to difficult retail conditions over the past five years. Weak disposable income growth and volatile consumer sentiment due to unstable economic conditions have resulted in a poor trading landscape, as households have scaled back their expenditure on non-essential goods. In addition, the rising popularity of online shopping has contributed to a fall in retail demand for many consumer goods over the period, such as photographic equipment, video games and recorded music, newspapers and books and stationery goods.

Subdivision operators have struggled with growing competition from online-only retailers, as consumers have become increasingly comfortable... Learn More

7. Computer System Design Services in Australia

Total Profit for 2021: $5.7B

The Computer System Design Services industry consists of businesses that develop and implement information technology services, programming systems and business solutions. Despite the COVID-19 pandemic, the industry has expanded strongly over the past five years, as many businesses have outsourced non-essential systems operations, and computers and IT systems have required regular upgrades and enhancements. Furthermore, increased internet connectivity has driven the industry's growth over the period, with financial services providers such as banks and insurers remaining the industry's largest clients.

Due to strong demand, industry revenue is expected to increase at an annualised 4.8% over the five years through 2020-21, to... Learn More

8. General Insurance in Australia

Total Profit for 2021: $4.9B

The General Insurance industry provides protection for individuals, households and businesses from financial loss associated with events such as car accidents, floods, break-ins and malpractice. General insurers provide this coverage at a fraction of the potential loss by spreading risk over many policies. Operators generate revenue from insurance policy sales and investing premium reserves in bonds, stocks and other assets. Premiums tend to fluctuate between soft and hard market conditions, which typically change following certain events, such as severe underwriting losses or changes in the competitive landscape. Hard market conditions will generally drive revenue growth without a change in coverage... Learn More

9. Supermarkets and Grocery Stores in Australia

Total Profit for 2021: $4.8B

The Supermarkets and Grocery Stores industry is one of the most fiercely competitive industries in Australia. However, price-based competition has begun to decrease over the past three years. Nevertheless, the continued expansion of ALDI and Costco has forced the two established industry giants, Woolworths and Coles, to remain price-competitive. In response, Coles and Woolworths have further expanded their private-label product ranges. Smaller supermarket chains have struggled to compete in an increasingly price-competitive industry. Industry profit margins have fallen over the past five years as operators have recorded rising capital investment and wage costs, in an attempt to gain an advantage... Learn More

10. Beef Cattle Farming in Australia

Total Profit for 2021: $4.7B

The Beef Cattle Farming industry has declined over the past five years. This is partly attributable to the industry reducing turnoff rates in response to improving weather conditions, as prior conditions have resulted in farmers increasing turnoff rates to reduce herd sizes due to poor pasture conditions and lower availability of feed. Industry revenue Is anticipated to decline at an annualised 2.8% over the five years through 2020-21, to $16.9 billion. Strong demand for cattle in 2015-16 resulted in high demand during the year, which supported a high base year and further contributed to the industry's decline over the past... Learn More