Industries with the Highest Profit Margin in Australia in 2023

1. Superannuation Funds in Australia

Profit Margin 2023: 82.1%

Australia's superannuation system underpins the nation's retirement income system. Three pillars make up the pension system: a means-tested age pension, compulsory super contributions and voluntary savings. From July 2022, the Superannuation Guarantee scheme requires employers to contribute an amount equal to 10.5% of an employee's income to the employee's choice of superannuation fund. This system has supported the Superannuation Funds industry over the past five years, which is expected to be one of the largest pension systems in the world.

Revenue is expected to fall at an annualised 10.6% over the five years through 2022-23, to $127.9 billion. This includes growth... Learn More

2. Financial Asset Investing in Australia

Profit Margin 2023: 49.5%

The Financial Asset Investing industry consists of trusts that primarily invest money on their own account in predominantly financial assets. The industry excludes trusts of separately constituted superannuation funds. The industry has benefited from a strong domestic sharemarket performance over the past five years. Typically, industry funds are invested in equities and industry revenue depends on global sharemarkets' performance. The COVID-19 pandemic and broader geopolitical tensions significantly disrupted both local and global equity markets, which limited industry performance. However, the industry's total assets increased over the period, assisted by historically low interest rates. Overall, Industry revenue is expected to rise... Learn More

3. Iron Ore Mining in Australia

Profit Margin 2023: 48.7%

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

4. Online Car Classifieds in Australia

Profit Margin 2023: 44.8%

Revenue for the Online Car Classifieds industry has been volatile in recent years but has grown overall. New passenger vehicle sales are diminishing as the economy deteriorated during the pandemic, negatively affecting credit availability and constraining demand for online car classifieds. The pandemic caused revenue to plummet in 2019-20 as restrictions on movement and gatherings hurt demand for motor vehicles and their accompanying classified ads. However, online car classifieds sellers have benefited from rising demand for online services, with online classifieds websites supplanting newspapers as the main resource for private car listings. Revenue is set to climb at an annualised... Learn More

5. Office Property Operators in Australia

Profit Margin 2023: 42.6%

Trading conditions have been challenging for the Office Property Operators industry. The number of non-manual employees in the workforce and private sector capital expenditure have been climbing, supporting overall demand. But fluctuating business confidence and reduced demand from superannuation funds have considerably dulled performance. The COVID-19 pandemic hit the financial outlook of many firms across the country; economic uncertainty led to negative business confidence, which discourage downstream customer firms from expanding their operations or acquiring office space. Superannuation funds invest a lot of money in office property, and lower demand from this market cut into the performance of office property... Learn More

6. Toll Road Operators in Australia

Profit Margin 2023: 42.4%

Firms in the Toll Road Operators industry charge motorists for the right to access high-quality roads that reduce travel times. Revenue from individual toll roads is typically stable as individual assets grow in popularity with motorists over their lifetime and congestion and market acceptance boost toll road use and allow operators to raise prices and expand. However, industry revenue volatility can rise when new roads enter operation. The industry is capital-intensive, as tunnels, bridges and other expensive design features are often built on toll roads to save motorists time on their commutes. Ideally, tolling revenue is sufficient to cover both... Learn More

7. Finance in Australia

Profit Margin 2023: 38.4%

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

8. Online Advertising in Australia

Profit Margin 2023: 38.3%

The Online Advertising industry has grown strongly over the past five years, as consumers have become more frequent users of social media, web-based applications and other internet systems. Industry operators provide services through search engines, online applications, online videos, streaming services and online directories. The industry is highly concentrated, with the top four players accounting for more than 70% of revenue in the current year. Google is the dominant player, with its search engine advertising services attracting significant web traffic from consumers and businesses. Google also attracts extensive advertising revenue from its online video service, YouTube. The outbreak of COVID-19... Learn More

9. Residential Real Estate Advertising in Australia

Profit Margin 2023: 34.8%

The Residential Real Estate Advertising industry involves listing residential properties that are available for buying or leasing. While most listings are now offered online, advertisements can also be published in print publications like newspaper or property magazines. Positive trading conditions have been benefiting real estate advertisers. Lower interest rates after the COVID-19 outbreak encouraged residential housing prices to climb, which elevated the number of listings that could be advertised. REA Group and Domain Holdings dominate the industry, and most properties available at any one time are listed on their websites. Climbing housing prices have enabled these large advertisers to hike... Learn More

10. Electricity Transmission in Australia

Profit Margin 2023: 33.6%

Australia's electricity supply chain is undergoing a radical shift, as renewable energy sources take up more of the electricity mix. Electricity transmission forms a key part of the infrastructure underlying this supply chain, transporting high-voltage current from generators to distribution networks, and directly to energy-intensive businesses. Transmission providers function as regional monopolies, with the Australian Energy Regulator (AER) determining their revenue and capital returns in five-year blocks.

Regulators loosened their purse strings until 2015, letting transmission firms invest in new assets and earn more revenue. After 2015 this trend was reversed, with revenue creeping up 0.2% over the past five years,... Learn More