The Australian economy has entered its fifth consecutive year of growth of businesses. There were more than 2.3 million actively trading businesses in Australia in June 2018, an increase of 3.4% from the same time in 2017.
The ABS noted business growth in all states and territories with Victoria’s growth being the largest.
The entry rate of businesses into the economy also increased to 15.8% in the year compared to a 15.1% rate in 2017. There was also an increase in the exit rate of businesses to 12.5% compared to the last years’ rate of 12.0%.
The largest growth in the number of businesses was from the transport, postal and warehousing industries, increasing by 16.8% from June 2017 to June 2018. This growth has been consistent since legislation was passed in 2015 requiring rideshare drivers to register as businesses.
Agriculture, forestry and fishing industries have had the largest decrease in the number of businesses, with forestry being the most significant at an 11% decline.