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Australia now has more than 2.8 million actively trading businesses

The number of actively trading businesses in Australia grew by 85,130 in 2025-26, to 2,814,778. New businesses outnumbered closures in every state and territory, and the number of employing businesses rose for the first time since 2021-22.

By G’day Business editorial team · Fact-checked against official sources
Published · 2 min read
A Come in, we're open sign hanging in a shop window
Photo by Tim Mossholder on Unsplash

The headline numbers

The Australian Bureau of Statistics’ Counts of Australian Businesses, released on 18 August 2026, shows that at 30 June 2026:

  • There were 2,814,778 actively trading businesses, and 996,203 of them employed staff.
  • The number of businesses grew by 3.1% (85,130) during 2025-26.
  • 460,461 businesses started (an entry rate of 16.9%) and 375,331 closed (an exit rate of 13.8%).

These are actively trading businesses, which is a smaller number than the total of entities holding an ABN.

Where the growth was

By industry, the largest percentage increases in 2025-26 were:

  • Health Care and Social Assistance: up 6.7% to 227,702 businesses.
  • Transport, Postal and Warehousing: up 4.9% to 261,109.
  • Financial and Insurance Services: up 4.3% to 139,417.

Agriculture, Forestry and Fishing was the only industry to shrink, down 0.5% to 170,185 businesses.

By state, every state and territory grew. New South Wales had the largest net increase (26,057), and Western Australia had the largest percentage increase (4.6%, or 12,248 businesses).

By structure, companies grew fastest, up 5.2% to 1,271,197. Sole proprietors rose 3.1% to 848,300, while partnerships fell 4.2% to 196,015.

Employing businesses

Non-employing businesses grew by 4.8%, while employing businesses grew by just 0.2% (2,025). The ABS says this is the first net increase in employing businesses since 2021-22. Part of the shift is businesses moving the other way: a net 28,127 surviving businesses went from employing staff to not employing.

What this means for small businesses

  • Plenty of people are starting out. More than 460,000 businesses started in a single year. If you’re one of them, our step-by-step guide to starting a business covers the order to do things in.
  • Closures are normal too. With an exit rate of 13.8%, planning cash flow and testing your idea before you commit both matter.
  • Companies are growing fastest, partnerships are declining. If you’re choosing or reviewing your structure, see choosing a business structure, and get advice from an accountant for your situation.

The ABS’s next release, with more detailed tables, is due on 18 December 2026.