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 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 2022: $68.5B

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 14.5% over the five years through 2022-23, to total $165.8 billion. This strong revenue growth is due to demand strength from China, and despite the COVID-19 pandemic from late 2019-20 through 2021-22. However, the high revenue growth trend over the period includes an anticipated 13.4% fall in the current year, due to weaker iron ore prices and higher global output.

Over the past decade,... Learn More

3. Industry Superannuation Funds in Australia

Total Profit for 2022: $53.6B

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 strongly over the past five years despite significant volatility. Several events created volatility for the industry at the start of the period, including the UK's EU referendum, 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. However, volatility during the pandemic led to an investment loss for industry super funds in 2019-20. Investment returns are expected to rebound strongly over... Learn More

4. 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

5. 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

6. National and Regional Commercial Banks in Australia

Total Profit for 2022: $33.7B

Revenue for the National and Regional Commercial Banks industry has declined over the past five years as the cash rate has fallen. The cash rate fell to a record low of 0.10% in November 2020. This low rate, combined with loan repayment deferrals during the COVID-19 pandemic, has weighed heavily on 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... Learn More

7. 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

8. Health Services in Australia

Total Profit for 2022: $13.9B

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. 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

10. 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