Most Profitable Industries in Australia in 2022

1. Superannuation Funds in Australia

Total Profit for 2022: $137.7B

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 2022: $56.1B

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 13.5% over the five years through 2021-22, to total $141.1 billion. This strong revenue growth is due to demand strength from China, and despite the COVID-19 pandemic from late 2019-20 through part of 2021-22. However, the high revenue growth trend over the period includes an anticipated 15.3% fall in the current year, due to weaker iron ore prices and higher global output.

Over the... Learn More

3. Finance in Australia

Total Profit for 2022: $45.1B

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 2.4% over the five years through 2021-22, to $185.1 billion. Subdivision revenue is anticipated to rise by 2.1% in 2021-22, as most operators have wound down deferrals on loan repayments that were offered at the height of... Learn More

4. Retail Superannuation Funds in Australia

Total Profit for 2022: $41.1B

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 7.8% over the five years through 2021-22, to $75.3 billion. This trend includes a decline of 32.8% in the current year, following significant growth in 2020-21 as the industry rebounded 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... Learn More

5. Professional Services in Australia

Total Profit for 2022: $22.2B

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 the subdivision's performance. In particular, demand for engineering consulting, architectural services, and surveying and mapping services have been constrained over the past three years during the COVID-19... Learn More

6. Health Services in Australia

Total Profit for 2022: $13.5B

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 (GPs), 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 contain the virus. Consequently, subdivision revenue is expected to grow at an annualised 1.6% over the five years through 2021-22, to... Learn More

7. Coal Mining in Australia

Total Profit for 2022: $13.1B

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 industry revenue. Industry imports are negligible, as total local production has been higher than domestic demand for black coal. Black coal mining makes up the vast majority of industry activity. Brown coal is used domestically for electricity generation in Victoria.

Industry revenue is expected to grow... Learn More

8. Office Property Operators in Australia

Total Profit for 2022: $11.2B

Trading conditions for the Office Property Operators industry have been volatile over the past five years. Increases in the number of non-manual employees in the workforce and total capital expenditure by the private sector have supported demand for offices. Record low interest rates have also benefited industry participants by ensuring cheap capital for acquiring and developing office property. However, fluctuations in business confidence and declines in demand from superannuation funds over the past five years have constrained industry performance. Periods of negative business confidence have discouraged expanding tenant's operations and reduced their demand for office space. Superannuation funds are major... Learn More

9. Residential Property Operators in Australia

Total Profit for 2022: $10.5B

The Residential Property Operators industry involves renting or leasing out residential property. Industry demand is mainly driven by the number of households that do not own residential property and have to rent property from industry operators. Conditions have been generally favourable for the industry over the past five years. Residential housing prices have increased over the period, which has excluded many potential buyers and supported demand for industry services. However, the economic effects of the COVID-19 pandemic have constrained industry performance. Declines in residential property yields have constrained industry revenue streams and reductions in international arrivals of workers and students... Learn More

10. Retail Property Operators in Australia

Total Profit for 2022: $9.6B

The Retail Property Operators industry involves the leasing of properties to tenants conducting retail activities. The industry has contended with subdued trading conditions over the past five years. The industry has benefited from heightened demand from retail trade over the period. However, the growing popularity of online shopping has constrained demand for traditional brick-and-mortar locations as some operators have reduced their in-store presences to soften rent costs. Low interest rates have supported the development and supply of retail properties for the industry. However, this has also provided tenants greater bargaining power for more desirable lease agreements. Demand from supermarket and... Learn More