Most Profitable Industries in Australia in 2021

1. 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

2. 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

3. 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

4. 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

5. 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

6. 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

7. 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

8. 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

9. Legal Services in Australia

Total Profit for 2021: $7.0B

Operators in the Legal Services industry have faced mixed conditions over the past five years. Business confidence has been volatile over the period, prompting varied demand from downstream markets. Due to mixed economic conditions, demand has fallen for value-added services, such as legal work relating to M&A activity, IPOs and restructuring initiatives, over the past five years. The COVID-19 pandemic has placed further downward pressure on demand over the two years through 2020-21. However, industry conditions are anticipated to improve over the second half of the current year. Overall, industry revenue is expected to rise at an annualised 0.9% over... Learn More

10. 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