Industries with Least Risky Business Environments in Australia in 2023

1. Student Housing Management in Australia

Business Environment Risk for 2023: 3.24

Before the COVID-19 pandemic, strong growth in the number of international students entering Australia to study at tertiary institutions underpinned the Student Housing Management industry's long-term expansion. More funding for constructing purpose-built student accommodation (PBSA) also aided this growth. Student housing managers help investors with tenant administration, leasing and collecting rent. They also provide traditional property management services, like managing tenant and landlord interactions. Student housing managers generate revenue through a fee on the rental income that landlords receive, which foreign students enrolled in Australian tertiary education institutions pay.

Favourable immigration policies for foreign students and a relatively low Australian dollar... Learn More

2. Electricity Transmission in Australia

Business Environment Risk for 2023: 3.53

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

3. Debt Collection in Australia

Business Environment Risk for 2023: 3.54

The Debt Collection industry tends to perform well when the economy is weak, as a poorly performing economy can trigger a rise in business bankruptcies and lead to households defaulting on loans. In contrast, strong economic conditions and tighter lending practices can have the opposite effect on the industry. Households and businesses tend to pay down debts during strong economic conditions, while tighter lending practices result in better loans with less likelihood of default.

The industry has contracted over the past five years, largely due to government assistance to businesses during the COVID-19 pandemic causing bankruptcy numbers to fall in 2019-20... Learn More

4. Motor Vehicle Electrical Services in Australia

Business Environment Risk for 2023: 3.55

Firms in the Motor Vehicle Electrical Services industry have come through mixed operating conditions in recent years, but the industry has emerged in a strong position. Volatile consumer sentiment has exerted some downward pressure on demand for industry services. Intensifying external competition, particularly from motor vehicle dealers, has also inhibited the industry's success. Even so, the number of vehicles on the road has climbed, as the population, disposable incomes and freight task have all strengthened. Overall, industry revenue is expected to expand at an annualised 2.1% over the five years through 2022-23, to $2.5 billion. This trend includes an anticipated... Learn More

5. Independent Investment Research Services in Australia

Business Environment Risk for 2023: 3.57

The COVID-19 pandemic has brought on a surge in demand for independent investment research services over the two years through the end of 2020-21 due to requirements for more information and corporate access to potential investment options in response to the pandemic. Industry analysts covering hard-hit and virus-centric industries have had to make sense of industries severely disrupted while also analysing a plethora of new information and data points. Revenue is expected to decline at an average of 2.4% per year over the five years through 2022-23, to $280.2 million. This trend includes an anticipated drop of 8.2% in the... Learn More

6. Satellite Communications and Astronautics in Australia

Business Environment Risk for 2023: 3.63

Australia's geographic position is ideal for space activities as Australia looks directly into the centre of the galaxy. This factor makes Australia a vital contributor to global deep space observation and communication systems. Regional Australia is ideal for industry establishments because of the lack of light pollution and radio frequency interference. Multinational space projects also operate in Australia, including large radio telescope facilities and ground station systems.

Satellite services include satellite tracking and communications telemetry, as well as operating radar stations, satellite terminal stations and associated facilities. Other communications companies are key customers for the industry. Despite new space technology's heightened... Learn More

7. Child Care Services in Australia

Business Environment Risk for 2023: 3.67

Australia's Child Care Services industry currently operates under a market-based subsidy model, although recent years have witnessed a growing number of calls for the funding model to be reviewed. Approximately 1.3 million children aged 12 and under attend some form of government-approved or government-funded childcare service in 2022-23, a sizeable portion of which is provided by for-profit childcare.

The Child Care Services industry has posted mixed results in recent years. Revenue is expected to grow at an annualised 1.8% over the five years to 2022-23 to an estimated $14.7 billion. This includes anticipated growth of 2.1% in 2022-23, boosted by changes... Learn More

8. Technical and Vocational Education and Training in Australia

Business Environment Risk for 2023: 3.75

Regulations in the Technical and Vocational Education and Training industry are frequently changing. In January 2017, the Federal Government introduced the VET Student Loans scheme. This scheme has raised provider standards, but has also reduced the number of eligible courses, which has constrained revenue growth. Industry revenue is expected to rise at an annualised 3.4% over the five years through 2022-23, to $12.2 billion. This trend includes an anticipated rise of 4.5% in the 2022-23 financial year – the first full year since Australia's borders reopened in February 2022.

The COVID-19 outbreak had mixed effects on industry revenue. A depreciating Australian... Learn More

9. Correctional and Detention Services in Australia

Business Environment Risk for 2023: 3.78

The Correctional and Detention Services industry aims to provide a safe, secure and humane correctional system that incorporates elements of rehabilitation, education and community protection. The industry includes firms that operate and manage prisons, community correctional facilities, programs for adult offenders, onshore immigration detention centres, juvenile detention facilities, and other related services. Most industry revenue comes from publicly funded and government-operated facilities. A small number of privately operated companies accounts for most of the remainder of industry revenue. Industry performance is generally influenced by criminal activity rates, government capital expenditure and appropriation, overall population trends, and incarceration rates. The COVID-19... Learn More

10. Water Treatment Services in Australia

Business Environment Risk for 2023: 3.79

Water treatment services are intertwined with Australia's wider water security – purification and wastewater management are essential for making the most of existing resources and reducing any environmental harms. The Millennium drought in the 2000s still reverberates today, as public and private sector funding flows to improving water security.

An expanding population has ensured ongoing demand for water treatment, as more households require stable drinking water and sewage management services. Despite steady demand, water treatment providers have struggled with supply chain disruptions, as rising input costs cut into profit margins. While industrial demand has stuttered over the course of the pandemic,... Learn More