Most Profitable Industries in Australia in 2024

1. Superannuation Funds in Australia

Total Profit for 2024: $269.6B

Significant global market volatility has affected invest incomes for superannuation funds in recent years. The initial COVID-19 outbreak and subsequent economic uncertainty, including inflationary pressures, saw revenue for funds fluctuate dramatically. Superannuation fund revenue is expected to increase at an annualised 0.7% over the five years through 2022-23, to total $230.1 billion, although the period has seen significant volatility. Superannuation fund's total assets are a more accurate indicator of the industry's size, with assets expected to grow at an annualised 3.4% over the same period, to $3.5 trillion. Continued incremental increases to the Superannuation Guarantee Scheme have boosted contributions to... Learn More

2. Finance in Australia

Total Profit for 2024: $142.5B

The Finance sector's operating environment has characterised by record low interest rates and market turbulence over most of the past five years. A strong residential property market supported by housing price growth and high numbers of house transfers have supported the incomes of many lenders. Yet, volatile business confidence and inflationary pressures have limited growth in capital expenditure from the private sector and overall demand from commercial clients. Competition from neobanks and other fintech disruptors has spurred some larger financial firms to invest in new capabilities in the online space. Overall, sector revenue is expected to decline at an... Learn More

3. Industry Superannuation Funds in Australia

Total Profit for 2024: $105.2B

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 strongly over the past five years despite significant volatility. Several events created volatility for the industry at the start of the period, including the UK's EU referendum, which caused significant fluctuations in industry revenue. The industry's investment performance fluctuated but improved overall throughout much of the period prior to the COVID-19 outbreak. However, volatility during the pandemic led to an investment loss for industry super funds in 2019-20. Investment returns are expected to rebound strongly over... Learn More

4. Financial Asset Investing in Australia

Total Profit for 2024: $82.8B

Financial asset investors have benefited from a generally strong domestic sharemarket performance over the past five years. Typically, industry funds are invested in equities and industry revenue depends on various sharemarket performances. The COVID-19 pandemic and ensuing inflationary pressures significantly disrupted both local and global equity markets, which limited industry performance. Yet, total assets have continued to accumulate over recent years compounding returns for investors, assisted by previously low interest rates. Overall, industry revenue is expected to rise at an annualised 4.2% over the five years through 2023-24, to $143.2 billion.

The low interest rate environment that characterised the trading landscape... Learn More

5. National and Regional Commercial Banks in Australia

Total Profit for 2024: $65.4B

Banks are grappling with a transition from years of loose monetary policy to tighter financial conditions. Soaring inflation has prompted an RBA pivot, in the face of surging energy, housing and food prices. The RBA has aggressively hiked the cash rate since May 2022. Prior to this, banks cashed in on high residential housing prices, with low interest rates and government schemes encouraging strong mortgage uptake over the course of the pandemic. APRA also eased the interest rate buffer in 2019, before raising it in 2021. Although a subdued cash rate cut banks' interest incomes, it was more than offset... Learn More

6. Iron Ore Mining in Australia

Total Profit for 2024: $63.3B

Iron ore miners have benefited from major increases in iron ore prices, and modest growth in production volumes over the past five years. Iron ore revenue is expected to increase at an annualised 8.1% over the five years through 2022-23, to total an estimated $124.1 billion. Strong demand from China and disruptions to iron ore producers in Brazil prior to, and during the COVID-19 pandemic, sent iron ore prices soaring. Iron ore prices are projected to fall in 2022-23, prompting iron ore revenue to drop an estimated 16.2% over the year.

Over the past decade, strong economic growth in China has... Learn More

7. Retail Superannuation Funds in Australia

Total Profit for 2024: $62.4B

The performance of the Retail Superannuation Funds industry has fluctuated significantly over the past five years. Industry revenue is expected to rise at an annualised 7.8% over the five years through 2021-22, to $75.3 billion. This trend includes a decline of 32.8% in the current year, following significant growth in 2020-21 as the industry rebounded from the investment losses incurred in 2019-20. Industry revenue is highly 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 better indication, and... Learn More

8. Coal Mining in Australia

Total Profit for 2024: $27.1B

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 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 coal used domestically for electricity generation in Victoria.

Coal mining revenue is expected to grow at an annualised 14.6% over... Learn More

9. Oil and Gas Extraction in Australia

Total Profit for 2024: $25.1B

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 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 makes up most of the industry has soared over the past decade as new gas fields have been developed to feed Australia's liquefied natural gas (LNG) facilities. Global trade in LNG has expanded with growing demand for LNG in Asian markets and weakness in the... Learn More

10. Residential Property Operators in Australia

Total Profit for 2024: $20.2B

The Residential Property Operators industry involves renting or leasing out residential property. The number of households that do not own residential property – and therefore need to rent it from landlords – is the main driver of industry demand. Recently, the industry's performance has diminished, as high vacancy rates, eviction moratoriums during the COVID-19 pandemic and lower residential property yields have negatively affected property operators. Overall, industry revenue has slipped by 0.3% over the five years to 2022-23, to $54.1 billion. This trend includes a rise of 3.7% in 2022-23, as revenue recovers thanks to pandemic restrictions easing and borders... Learn More