Most Profitable Industries in Australia in 2023

1. Superannuation Funds in Australia

Total Profit for 2023: $150.4B

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 July 2022, the Superannuation Guarantee scheme requires employers to contribute an amount equal to 10.5% 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.

Revenue is expected to fall at an annualised 10.6% over the five years through 2022-23, to $127.9 billion. This includes growth... Learn More

2. Iron Ore Mining in Australia

Total Profit for 2023: $80.7B

Iron ore miners have benefited from major increases in iron ore prices, and modest growth in production volumes over the past five years. Iron ore revenue is expected to increase at an annualised 8.1% over the five years through 2022-23, to total an estimated $124.1 billion. Strong demand from China and disruptions to iron ore producers in Brazil prior to, and during the COVID-19 pandemic, sent iron ore prices soaring. Iron ore prices are projected to fall in 2022-23, prompting iron ore revenue to drop an estimated 16.2% over the year.

Over the past decade, strong economic growth in China has... Learn More

3. Finance in Australia

Total Profit for 2023: $75.4B

The Finance sector's operating environment has characterised by record low interest rates and market turbulence over most of the past five years. A strong residential property market supported by housing price growth and high numbers of house transfers have supported the incomes of many lenders. Yet, volatile business confidence and inflationary pressures have limited growth in capital expenditure from the private sector and overall demand from commercial clients. Competition from neobanks and other fintech disruptors has spurred some larger financial firms to invest in new capabilities in the online space. Overall, sector revenue is expected to decline at an... Learn More

4. Coal Mining in Australia

Total Profit for 2023: $52.4B

Coal is a key input in steelmaking and energy generation. Although coal deposits are found all over the world, Australia is one of the world's lowest cost producers and a major coal exporter. Domestic reserves exceed domestic demand, are high grade and economical to access. As a result, exports account for a large share of coal mining revenue. Imports are negligible, as local production is higher than domestic demand for coal. Black coal mining accounts for most activity, with some brown coal used domestically for electricity generation in Victoria.

Coal mining revenue is expected to grow at an annualised 14.6% over... Learn More

5. Oil and Gas Extraction in Australia

Total Profit for 2023: $34.4B

Oil and gas producers have experienced significant revenue volatility. Changes in oil and gas prices, exchange rate movements, annual production volumes, and domestic and export demand for oil and gas all influence performance. Output has expanded over the past decade, while world oil and natural gas prices have displayed significant volatility.

Australia's natural gas production, which makes up most of the industry has soared over the past decade as new gas fields have been developed to feed Australia's liquefied natural gas (LNG) facilities. Global trade in LNG has expanded with growing demand for LNG in Asian markets and weakness in the... Learn More

6. National and Regional Commercial Banks in Australia

Total Profit for 2023: $32.5B

Banks are grappling with a transition from years of loose monetary policy to tighter financial conditions. Soaring inflation has prompted an RBA pivot, in the face of surging energy, housing and food prices. The RBA has aggressively hiked the cash rate since May 2022. Prior to this, banks cashed in on high residential housing prices, with low interest rates and government schemes encouraging strong mortgage uptake over the course of the pandemic. APRA also eased the interest rate buffer in 2019, before raising it in 2021. Although a subdued cash rate cut banks' interest incomes, it was more than offset... Learn More

7. Professional Services in Australia

Total Profit for 2023: $29.7B

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. Over the past five years, greater business profit, rising capital expenditure by the public sector and mostly positive business confidence have supported subdivision demand. However, the COVID-19 pandemic has disrupted several industries in the Professional Services subdivision, weighing on its performance. In particular, demand for architectural services, and surveying and mapping services fell over the years following the COVID-19 pandemic, as many construction projects were delayed... Learn More

8. Health Services in Australia

Total Profit for 2023: $19.3B

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 (GPs), clinical specialists and dentists also represent significant revenue streams for the subdivision. Australia's growing and ageing population has supported demand for health services over the past five years. However, the COVID-19 pandemic has limited subdivision expansion, as health services have redirected resources to contain the virus. Consequently, subdivision revenue is expected to grow at an annualised 2.2% over the five years through 2022-23, to $197.8 billion. The industry's growth... Learn More

9. Office Property Operators in Australia

Total Profit for 2023: $14.9B

Trading conditions have been challenging for the Office Property Operators industry. The number of non-manual employees in the workforce and private sector capital expenditure have been climbing, supporting overall demand. But fluctuating business confidence and reduced demand from superannuation funds have considerably dulled performance. The COVID-19 pandemic hit the financial outlook of many firms across the country; economic uncertainty led to negative business confidence, which discourage downstream customer firms from expanding their operations or acquiring office space. Superannuation funds invest a lot of money in office property, and lower demand from this market cut into the performance of office property... Learn More

10. Residential Property Operators in Australia

Total Profit for 2023: $14.3B

The Residential Property Operators industry involves renting or leasing out residential property. The number of households that do not own residential property – and therefore need to rent it from landlords – is the main driver of industry demand. Recently, the industry's performance has diminished, as high vacancy rates, eviction moratoriums during the COVID-19 pandemic and lower residential property yields have negatively affected property operators. Overall, industry revenue has slipped by 0.3% over the five years to 2022-23, to $54.1 billion. This trend includes a rise of 3.7% in 2022-23, as revenue recovers thanks to pandemic restrictions easing and borders... Learn More