Industries with Riskiest Business Environments in Australia in 2026

• 1. Coal Mining in Australia

  Business Environment Risk for 2026: 7

  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 are economical to access. As a result, exports account for a large share of coal mining revenue. Imports are negligible, as local production is higher than domestic demand for coal. Black coal mining accounts for most activity, with some brown...

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• 2. Iron Ore Mining in Australia

  Business Environment Risk for 2026: 7

  Iron ore miners have faced difficult trading conditions because of easing iron ore prices over the past few years, despite the nation maintaining its status as the world's largest iron ore supplier and benefiting from proximity to Asian markets. However, modest growth in production volumes has partly offset revenue declines. Industry revenue is expected to have sunk at an annualised 1.7% over the five years through 2024-25, to $131.5 billion. Easing iron ore prices, driven primarily by a slow...

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• 3. Foreign Banks in Australia

  Business Environment Risk for 2026: 7

  The Foreign Banks industry includes domestic subsidiaries of foreign banks and branches of foreign banks, which have grown over the past few years as soaring interest rates contributed to a sharp revenue rise. The Reserve Bank of Australia (RBA) maintained a relatively low cash rate over the past decade – especially in response to the pandemic – to stimulate economic activity. The low cash rate environment hampered foreign banks' revenue in the three years through 2021-22. In May 2022, this a...

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• 4. Oil and Gas Extraction in Australia

  Business Environment Risk for 2026: 7

  Oil and gas producers have experienced significant revenue volatility. Changes in oil and gas prices, exchange rate movements, annual production volumes, and domestic and export demand for oil and gas all influence the industry’s performance. Output has expanded over the past decade, while world oil and natural gas prices have displayed significant volatility.

  Australia's natural gas production, which comprises most of the industry, has soared over the past decade as new gas fields hav...

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• 5. Road and Bridge Construction in Australia

  Business Environment Risk for 2026: 7

  Leading construction companies have ridden an unprecedented wave of road construction activity thanks to record investment in mega projects, like the WestConnex motorway in Sydney and the West Gate Tunnel in Melbourne. An injection of public funding and progress on landmark public-private partnership (PPP) developments have lifted the industry to new heights, primarily benefiting prominent contractors participating in strategic joint ventures and on PPP-funded developments, including CPB Cont...

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• 6. Credit Unions and Building Societies in Australia

  Business Environment Risk for 2026: 7

  The Credit Unions and Building Societies industry has faced challenging operating conditions over the past few years. While low interest rates after the COVID-19 outbreak cut into interest income generated on providers' loan books, the RBA has since been consistently hiking the cash rate. This trend has elevated interest income through higher interest rates on existing loans. Government incentives, like the First Home Guarantee scheme, have fuelled demand from first-homeowners despite decline...

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• 7. Wine Production in Australia

  Business Environment Risk for 2026: 7

  Wine producers have faced mixed trading conditions over the past few years. They’ve benefited from growing global demand for Australian wine and premiumisation trends. In recent years, a depreciating Australian dollar and several free trade agreements with countries in the Asia-Pacific region have benefited exports. Nonetheless, declines in per capita alcohol consumption have limited domestic demand. Pandemic restrictions adversely affected the food-service market over the three years through...

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• 8. Fossil Fuel Electricity Generation in Australia

  Business Environment Risk for 2026: 7

  Fossil fuel generators have historically supplied most of Australia's electricity, as coal is the central fuel powering the country. Large, centralised coal-fired power stations have long been the basis for electricity generation in Australia. However, climate change radically shifts this dynamic, providing the impetus for a transition away from fossil fuels. In the medium to long term, this trend presents an ongoing threat to the future of fossil fuels in the electricity supply chain.

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• 9. Hay and Other Crop Growing in Australia

  Business Environment Risk for 2026: 7

  Dry conditions and fodder shortages are delivering a difficult year for hay and other crop growers in 2025-26. While prices have climbed on the back of strong livestock demand, declining rainfall and lower soil moisture have undermined yields and heightened production risk. At the same time, easing fertiliser and fuel costs have softened purchasing pressures, offering some relief. Yet this hasn’t been enough to offset broader challenges. Rising insurance and administrative expenses are erodin...

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• 10. Cotton Growing in Australia

  Business Environment Risk for 2026: 7

  The Cotton Growing industry experiences significant annual volatility due to water availability and erratic weather, which influence acreage, participation and revenue. Water scarcity forces farmers to reduce cotton cultivation and shift to more lucrative crops suited to prevailing conditions. Abundant rainfall in the Murray-Darling Basin during 2021-22 boosted water availability and revenue, but less favourable conditions have since constrained growth. Global fashion trends and the cost of s...

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