Australia’s business landscape is rapidly evolving and expanding well beyond the confines of traditional CBDs. Despite facing various challenges over the past five years, new research from Tapt has revealed that the number of businesses in Australia has grown significantly, rising by 17.4% since 2019. Notably, the sharpest rise in business activity is occurring in the outer suburbs and regional hubs.
The states with the fastest-growing number of businesses:
The Australian Capital Territory has led the way with the highest business growth rate in Australia. The average annual growth rate from 2019 to 2024 was 4.64%, and business growth increased by 25.4% across this period.
Victoria follows closely with a 20.6% growth rate, driven by a significant influx of new businesses and steady growth off the back of an already large business base. Interestingly, Victoria’s biggest spike came amid the 2021-22 period, right through lockdown and as restrictions began to ease.
In comparison, South Australia experienced the lowest business growth at an average growth rate of 2.83% annually or 15.0% over the past five years. This is 2.4% below the national average.
The regions with the fastest-growing number of businesses:
Victoria’s Melton has taken the top spot as Australia’s fastest-growing local government area (LGA) for business growth. Registered businesses have increased from 9,300 in 2019 to 17,300 in 2024, an impressive 86.5% growth. Wyndham isn’t far behind, recording an 80.6% surge in business numbers, followed by Casey and Hume, also in Victoria, both experiencing over 50% growth since 2019.
With Victoria placing second, it is no surprise that the state boasts seven LGAs, highlighting the rapid pace of business growth within the state.
Camden was the highest-ranking LGA outside of Victoria, placing fifth. The region saw a 50.2% spike in business growth, with the number of registered businesses rising from 7,300 to 11,000.
The industries with the fastest-growing businesses:
The industries that thrive in Australia vary over time, with some sectors thriving and others facing more modest expansion. As of 2024, the Health Care and Social Assistance industry tops the list for growth in business numbers, with a remarkable 41.2% increase since 2019. This is likely driven by the rising demand for healthcare services due to the ageing population and post-COVID-19.
Rounding out the top three are Administrative and Support Services with a 27.0% spike and Arts and Recreation Services with a 26.9% growth.
However, not all industries are experiencing such profound growth. Agriculture, Forestry and Fishing saw a 0.7% decline in registered businesses, likely influenced by climate change and labour shortages.
