There were more than 2.3 million actively trading businesses in Australia in June 2018, an increase of 3.4 per cent from June 2017 according to figures released today by the Australian Bureau of Statistics (ABS). This represents the fifth consecutive year of growth of businesses in the Australian economy.
ABS Director of the Business Register Unit, Luisa Ryan, noted counts of businesses increased across all states and territories, with Victoria recording the largest growth in businesses.
Ms Ryan also noted that the entry rate of businesses into the economy increased in the year to June 2018 to 15.8 per cent, compared with 15.1 per cent in 2017. At the same time, there has been an increase in the exit rate of businesses, with an exit rate of 12.5 per cent at June 2018 compared with 12.0 per cent at June 2017.
The Transport, Postal and Warehousing industry continued to account for the largest growth in the number of businesses, increasing by 16.8 per cent (25,247 businesses) from June 2017 to June 2018. This growth has continued since 2015 when legislation was passed requiring ride share drivers to register as businesses.
Nationwide the Construction industry continues to have the highest number of active businesses. There were some increases in other industries reflecting the changing business landscape. For example, the number of beer manufacturing businesses in Australia has more than doubled since 2013-14, from 224 to 500; and the number of health centres and gyms has increased 50 per cent in the same period from 3,163 to 4,723 businesses.
Agriculture, Forestry and Fishing has continued to have the largest decrease in the number of businesses (1,634 businesses, or -0.9 per cent). Forestry was the largest contributor to this decline with an 11 per cent decrease.