Most Profitable Industries in Australia in 2021

1. Superannuation Funds in Australia

Total Profit for 2021: $130.3B

Australia's superannuation system underpins the nation's retirement income system. Three pillars make up the pension system: a means-tested age pension, compulsory super contributions and voluntary savings. From 1 July 2021, the Superannuation Guarantee scheme requires employers to contribute an amount equal to 10.0% of an employee's income to the employee's choice of superannuation fund. This system has supported the Superannuation Funds industry over the past five years, which is expected to be one of the largest pension systems in the world.

Industry revenue is expected to fall at an annualised 8.1% over the five years through 2021-22, to $167.4 billion. This... Learn More

2. Iron Ore Mining in Australia

Total Profit for 2021: $63.4B

The Iron Ore Mining industry has benefited from major increases in iron ore prices, and small increases in production volumes over the past five years. As a result, industry revenue is expected to increase at an annualised 15.8% over the five years through 2020-21, to $128.7 billion. This trend includes an anticipated 13.5% rise in the current year, due to higher iron ore prices and rising demand from China, despite some uncertainty during the COVID-19 pandemic. Over the past decade, strong economic growth in China has driven developments in Australian iron ore mining to meet Chinese demand for greater steel... Learn More

3. Industry Superannuation Funds in Australia

Total Profit for 2021: $48.3B

Industry super funds are not-for-profit superannuation funds that operate for the benefit of their members. Revenue for the Industry Superannuation Funds industry has risen from a low base over the past five years. Several events weighed on the industry at the start of the period, including the UK's EU referendum and the European sovereign debt crisis, which caused significant fluctuations in industry revenue. The industry's investment performance fluctuated but improved overall throughout much of the period prior to the COVID-19 outbreak, which led to an investment loss for industry super funds. Overall, industry revenue is expected to rise at an... Learn More

4. Finance in Australia

Total Profit for 2021: $37.4B

The Finance subdivision's operating environment has been challenging over the past five years, due to falling interest rates. Residential property prices have risen over the period, supporting demand for mortgages. However, volatile business confidence over the period has limited growth in capital expenditure from the private sector and overall demand from commercial clients. Overall, subdivision revenue is expected to decline at an annualised 2.2% over the five years through 2021-22, to $186.7 billion. Subdivision revenue is anticipated to rise by 1.9% in 2021-22, as most operators have closed and wound down deferrals on loan repayments during the COVID-19 pandemic.

The RBA's... Learn More

5. Retail Superannuation Funds in Australia

Total Profit for 2021: $36.9B

The performance of the Retail Superannuation Funds industry has fluctuated significantly over the past five years. Industry revenue is expected to rise at an annualised 29.5% over the five years through 2020-21, to $44.4 billion. This trend includes significant growth in the current year as the industry rebounds from the investment losses incurred in 2019-20. Industry revenue is highly volatile, and fluctuations in investment returns can cause revenue shocks. Due to this volatility, revenue is not an accurate representation of industry performance and size. Funds under administration (FUA) provide a better indication, and these are expected to grow at an... Learn More

6. National and Regional Commercial Banks in Australia

Total Profit for 2021: $30.0B

Revenue for the National and Regional Commercial Banks industry has declined over the past five years as the cash rate has fallen to record lows. Consistent cash rate cuts over the past five years, to a record low of 0.10%, have reduced industry revenue despite growth in lending volumes. Banks have increased interest rates on various mortgage and business lending products out-of-cycle at times over the period due to higher capital adequacy requirements and tighter lending standards in an effort to maintain margins. However, this trend has been more than offset by falling interest rates over the period. In addition... Learn More

7. 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

8. Health Services in Australia

Total Profit for 2021: $11.5B

The Health Services subdivision includes a range of health services and facilities. General hospitals are the subdivision's largest revenue driver, accounting over half of Australia's health services revenue. General practitioners, clinical specialists and dentists also represent significant revenue streams for the subdivision. Australia's growing and ageing population has generated strong demand for health services over the past five years. However, the outbreak of COVID-19 in early 2020 has limited subdivision expansion, as health services have redirected resources to containing the virus. Consequently, subdivision revenue is expected to grow at an annualised 1.5% over the five years through 2020-21, to $162.5... Learn More

9. 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. The gradual shift towards a serviced-based economy over the past five years has 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 limited the amount of floorspace demanded over the period, constraining industry performance. The COVID-19 pandemic weighed on rental income and demand for office property over... Learn More

10. Local Government Administration in Australia

Total Profit for 2021: $10.0B

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