Most Profitable Industries in Australia in 2020

1. Finance in Australia

Total Profit for 2020: $49.5B

The Finance subdivision's operating environment has been challenging over the past five years, due to falling interest rates and declining private capital expenditure. Residential property prices have risen over the period, particularly over the two years through 2016-17. However, declines in the cash have 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 1.4% over the five years through 2019-20, to $195.7 billion. Subdivision revenue is anticipated to fall by 4.6% in 2019-20, due to the COVID-19 outbreak and five cash rate... 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. Professional Services in Australia

Total Profit for 2020: $40.1B

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 have driven the subdivision's growth. Earlier in the five-year period, accounting and management consultants have benefited from downstream businesses looking to improve efficiencies as increased globalisation have constrained profit margins. Overall, the subdivision revenue is expected to grow at an annualised 2.1% over the past five years through 2019-20 to $179.3 billion. However, the subdivision's... Learn More

4. National and Regional Commercial Banks in Australia

Total Profit for 2020: $38.6B

The National and Regional Commercial Banks industry has recorded a decline in industry revenue over the past five years as the cash rate has fallen to record lows. Consistent cash rate cuts across 2015 and 2016, followed by five cash rate cuts since June 2019 have led to a decline in industry revenue despite growth in lending volumes. Banks have increased interest rates on various mortgage and business lending products out-of-cycle over the period due to higher capital adequacy requirements and tighter lending standards over the past two years in an effort to maintain margins. However, this trend has been... Learn More

5. 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

6. 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

7. Coal Mining in Australia

Total Profit for 2020: $18.8B

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. Brown coal is used domestically for electricity generation in Victoria.

Industry revenue is expected to rise at an annualised 7.8% over the... Learn More

8. 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

9. Office Property Operators in Australia

Total Profit for 2020: $9.9B

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

10. Residential Property Operators in Australia

Total Profit for 2020: $7.9B

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 property from industry operators. Although home ownership has traditionally been a priority for many Australians, 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, supporting industry demand. Industry operators respond to... Learn More