Annual operating profits grew in 2021-22, with fewer domestic COVID-19 restrictions, according to the latest data released by the Australian Bureau of Statistics (ABS).
Robert Ewing, ABS head of business indicators, said: "Profitability was largely driven by higher demand for goods and services, which saw businesses pass higher costs onto consumers."
"After slower profit growth across the earlier COVID-19 pandemic affected years almost all industries recorded higher operating profits in 2021-22. This is despite many businesses seeing increased input costs and a reduction in government COVID-19 subsidies."
The Mining industry recorded the largest growth in operating profit ($84.2b), driven by higher export prices, followed by Rental, hiring and real estate services ($41.7b), Professional, scientific and technical services ($38.6b), and Wholesale trade ($9.8b).
Operating profit in the Construction (-$4.4b) and Electricity, gas, water and waste services (-$1.6b) industries bucked this trend, as both were impacted by rising commodity prices and supply chain issues.
| 2018-19 ($m) | 2019-20 ($m) | 2020-21 ($m) | 2021-22 ($m) | |
|---|---|---|---|---|
| Agriculture, forestry and fishing | 14,406 | 11,095 | 16,564 | 23,925 |
| Mining | 98,551 | 106,426 | 97,982 | 182,227 |
| Manufacturing | 33,822 | 28,772 | 31,796 | 40,559 |
| Electricity, gas, water and waste services | 17,354 | 11,908 | 16,237 | 14,604 |
| Construction | 43,485 | 47,682 | 48,100 | 43,730 |
| Wholesale trade | 21,465 | 24,993 | 25,758 | 35,567 |
| Retail trade | 17,582 | 23,105 | 32,261 | 33,323 |
| Accommodation and food services | 7,691 | 7,523 | 8,517 | 10,303 |
| Transport, postal and warehousing | 14,047 | 9,572 | 11,201 | 14,733 |
| Information media and telecommunications | 2,925 | 1,415 | 4,113 | 5,233 |
| Rental, hiring and real estate services | 67,221 | 52,750 | 60,756 | 102,459 |
| Professional, scientific and technical services | 65,132 | 63,854 | 70,245 | 108,810 |
| Administrative and support services | 6,921 | 8,760 | 9,695 | 10,793 |
| Public administration and safety (private) | 903 | 833 | 942 | 1,379 |
| Education and training (private) | 5,148 | 4,495 | 5,429 | 5,328 |
| Health care and social assistance (private) | 26,530 | 30,326 | 33,100 | 36,446 |
| Arts and recreation services | 5,377 | 3,496 | 5,554 | 5,413 |
| Other services | 7,417 | 9,733 | 11,347 | 12,156 |
"Businesses of all sizes increased income and operating profit in 2021-22," Mr Ewing said.
Australian Industry Consultation
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