Most Profitable Industries in Australia in 2020

1. Finance in Australia

Total Profit for 2020: $61.3B

The Finance subdivision has operated in a challenging trading environment over the past five years, with falling interest rates and declining private capital expenditure weighing on its performance. Although residential property prices have risen over the period, especially over the first half of the five-year period, other segments of the economy have lagged behind. This trend is despite the cash rate falling to a historic low of 0.75%. The cash rate's decline has contributed to falling subdivision revenue, as interest revenue derived from lenders' loan portfolios has fallen. As a result, subdivision revenue is expected to decline at an annualised... Learn More

2. Industry Superannuation Funds in Australia

Total Profit for 2020: $43.2B

Industry super funds have become the leading type of superannuation fund in Australia by assets held. 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 slightly over the past five years despite weaker investment returns compared with the start of the period. Several events have weighed on the industry over the period, including the UK's EU referendum and the European sovereign debt crisis, which caused significant fluctuations in industry revenue. Overall, industry revenue is expected to rise at an annualised 1.8% over the five years... Learn More

3. Retail Superannuation Funds in Australia

Total Profit for 2020: $38.2B

Retail super funds account for a significant proportion of the asset base in the superannuation sector, behind industry super funds and self-managed super funds, and represent a significant part of the Australian financial system. The Retail Superannuation Funds industry’s revenue is expected to rise at an annualised 0.2% over the five years through 2019-20, to $46.0 billion. This includes an anticipated 6.7% rise in 2019-20. However, industry revenue is 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... Learn More

4. Iron Ore Mining in Australia

Total Profit for 2020: $37.7B

The Iron Ore Mining industry has benefited from rising prices and higher production volumes over the past five years. As a result, industry revenue is expected to increase at an annualised 1.7% over the five years through 2019-20, to $83.4 billion. However, this trend includes an anticipated 8.7% decline in the current year, due to reduced iron ore prices and demand from China as the COVID-19 pandemic results in lower steel manufacturing output. Despite this, strong economic growth in China over the past decade has driven developments in Australian iron ore mining to meet Chinese demand for greater steel production.... Learn More

5. Black Coal Mining in Australia

Total Profit for 2020: $14.3B

Black coal is a key input into steelmaking and energy generation. Although black coal deposits are found all over the world, Australia is one of the world's lowest cost producers and a major black 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. Imports are negligible in the industry, as total local production has been higher than domestic demand for black coal.

Industry revenue is expected to rise at an annualised 10.4% over the five years through 2018-19. Volatile trading conditions have affected industry... Learn More

6. Oil and Gas Extraction in Australia

Total Profit for 2020: $13.3B

The Oil and Gas Extraction industry has had significant revenue growth over the past five years, despite exhibiting high volatility. Changes in oil and gas prices, exchange rate movements, domestic and export demand for oil and gas, and annual production volumes all influence the industry’s performance. Industry output has expanded over the past five years, while world oil and natural gas prices have declined. Australian natural gas production, which makes up most of the industry, is expected to increase at an annualised 16.3% over the five years through 2018-19. Although the world price of natural gas has fallen over the... Learn More

7. Health Services in Australia

Total Profit for 2020: $10.6B

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 is expected to generate strong demand for health services over the five years through 2019-20. 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 1.4% over the five years through... Learn More

8. Residential Property Operators in Australia

Total Profit for 2020: $10.3B

Residential property operators are companies or individuals that draw income from renting out residential property. Industry demand is mainly driven by the number of households that do not own residential property, as these households have to rent residential property from industry operators. Although home ownership has traditionally been a priority for many Australians, strong housing price growth over the past five years has made it harder for consumers to save for a deposit and service increasingly costly mortgages. This trend has decreased the overall proportion of the population that owns the home they live in, increasing industry demand. Industry operators... Learn More

9. Local Government Administration in Australia

Total Profit for 2020: $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 3.2% over the five years through 2019-20, to $52.4 billion. This includes a 2.9%... Learn More

10. Office Property Operators in Australia

Total Profit for 2020: $9.7B

The Office Property Operators industry has grown strongly over the past five years. Demand for office space, and therefore commercial property values, have increased over the period. This increased demand has driven greater development of new office spaces, as both local and international investors have sought to access increased rental yields. Pension funds, sovereign wealth funds and local superannuation funds have invested heavily in office property to benefit from steady long-term returns.

Industry revenue is expected to grow at an annualised 6.1% over the five years through 2019-20, to $40.1 billion. This trend includes expected growth of 3.5% in the current... Learn More