Published: December 2025
Australia's 2.73 million businesses collectively generate over $4.5 trillion in annual revenue. But this headline figure masks an extraordinary concentration of economic activity:
- The top 0.2 per cent of businesses generate roughly half of all revenue
- 63.6 per cent of businesses operate as solo operators with minimal turnover
- The average revenue per business of $1.6 million is meaningless because it mixes BHP with part-time sole traders
Understanding how revenue actually flows through the Australian economy matters for business owners making strategic decisions about growth, positioning, and competitive strategy. This analysis draws on the latest Australian Bureau of Statistics data to reveal where money really moves in Australian business.
The Top-Down View: GDP to Business Revenue
Australia's nominal GDP sits at approximately $2.75 trillion for the 2024-25 financial year. But GDP measures value added, not total business turnover. The difference matters because businesses buy from each other before selling to end customers.
How we calculate total business revenue:
- Private sector gross value added: approximately $2.2-2.3 trillion (80-85 per cent of GDP)
- Gross output multiplier: 1.8-2.2x value added (accounting for intermediate inputs)
- Estimated total private sector revenue: $4.4-4.6 trillion annually
Cross-checking the estimate:
- ABS industry data for 2023-24 shows total sales and service income of approximately $4.2 trillion
- Adding roughly 5 per cent growth for 2024-25 brings us to the same $4.4-4.6 trillion range
- This excludes public sector "revenue" which is primarily tax-funded
Where Business Revenue Concentrates
Revenue distribution across Australian businesses is extraordinarily skewed. The overall average of $1.6-1.7 million per business tells us almost nothing useful.
The reality by business size:
- Non-employing businesses (1.74 million, 63.6 per cent of total): 10-15 per cent of revenue
- Micro and small businesses (1-19 employees, 900,000 businesses): 20-25 per cent of revenue
- Medium businesses (20-199 employees, 60,000-70,000 businesses): 20-25 per cent of revenue
- Large businesses (200+ employees, 4,000-5,000 businesses): 40-50 per cent of revenue
The concentration becomes stark when you consider that approximately 1,000-2,000 companies, representing less than 0.1 per cent of Australian businesses, generate more than half of all private sector revenue.
Revenue by Business Size: The Full Breakdown
Non-Employing Businesses
The numbers:
- Total businesses: 1,735,470 (63.6 per cent of all businesses)
- Estimated revenue share: 10-15 per cent ($450-700 billion)
- Average revenue: $200,000-400,000
- Growth rate: 4.9 per cent in 2024-25
The reality:
- Many operate below the $75,000 GST registration threshold
- A significant proportion are investment vehicles, trusts, or dormant entities
- The median revenue likely sits well below $100,000
- High-turnover sole traders in professional services and trades skew the average upward
Micro and Small Businesses (1-19 Employees)
The numbers:
- Total businesses: approximately 900,000
- Estimated revenue share: 20-25 per cent ($900 billion to $1.1 trillion)
- Average revenue: $800,000-1.5 million
The reality:
- A plumber with two apprentices and a marketing agency with fifteen staff have fundamentally different revenue profiles
- Retail shops, cafes, and service businesses at the lower end: $300,000-500,000 annually
- Professional services firms and specialist retailers at the upper end: $2-5 million
- The 1-4 employee segment declined 0.7 per cent in 2024-25
Medium Businesses (20-199 Employees)
The numbers:
- Total businesses: 60,000-70,000 (2-3 per cent of all businesses)
- Estimated revenue share: 20-25 per cent
- Average revenue: $10-20 million
What these businesses look like:
- Regional manufacturers with established supply chains
- Construction companies with multiple project teams
- Medical practices with multiple practitioners
- Professional services firms with partner structures
- They have typically found product-market fit and built scalable operations
Large Businesses (200+ Employees)
The numbers:
- Total businesses: 4,000-5,000 (0.2 per cent of all businesses)
- Estimated revenue share: 40-50 per cent ($1.8-2.3 trillion)
- Average revenue: $200 million to $500 million
- Growth rate: 2.6 per cent in 2024-25
The concentration:
- The top 100 companies alone account for a massive share of this segment
- Major banks generate $40-60 billion each annually
- Supermarket chains generate $50-70 billion each
- Major miners like BHP exceed $80 billion
- These figures dwarf the entire revenue of thousands of smaller businesses combined
Industry Revenue: The Quick Summary
Before diving into detail, here's where Australia's $4.5 trillion in business revenue actually comes from:
The heavyweight industries (over $400 billion each):
- Mining: $550-700 billion (12-15 per cent)
- Financial Services: $450-550 billion (10-12 per cent)
- Wholesale Trade: $450-550 billion (10-12 per cent)
The major industries ($250-450 billion each):
- Retail Trade: $350-450 billion (8-10 per cent)
- Construction: $350-450 billion (8-10 per cent)
- Professional Services: $250-350 billion (6-8 per cent)
- Manufacturing: $250-350 billion (6-8 per cent)
The growing industries ($100-250 billion each):
- Health Care and Social Assistance: $180-220 billion (4-5 per cent)
- Transport, Postal and Warehousing: $180-250 billion (4-6 per cent)
- Rental, Hiring and Real Estate: $180-220 billion (4-5 per cent)
Everything else:
- Accommodation and Food Services: $130-180 billion (3-4 per cent)
- Information Media and Telecommunications: $100-150 billion (2-3 per cent)
- All other industries: $650-900 billion combined (15-20 per cent)
Industry Revenue: Detailed Analysis
Mining
Revenue profile:
- Estimated annual revenue: $550-700 billion
- Share of total business revenue: 12-15 per cent
- Number of businesses: fewer than 30,000 (less than 1 per cent)
- Average revenue per business: $500 million+
Key insights:
- Revenue is dominated by BHP, Rio Tinto, Fortescue, and a handful of other major miners
- 2023-24 saw EBITDA fall to $233 billion from $275 billion as commodity prices moderated
- Most capital-intensive sector with highest revenue per business of any industry
- Small mining businesses are typically exploration or services companies with much lower revenue
Financial and Insurance Services
Revenue profile:
- Estimated annual revenue: $450-550 billion
- Share of total business revenue: 10-12 per cent
- Number of businesses: 133,743 (growing 3.7 per cent in 2024-25)
- Average revenue per business: $100-200 million
Key insights:
- The four major banks alone generate combined revenue exceeding $150 billion
- The average is meaningless given the spread between major institutions and small mortgage brokers
- Sector grew 5.6 per cent in 2024-25, the fastest of any institutional sector
- Includes banks, insurers, fund managers, financial advisers, and brokers
Wholesale Trade
Revenue profile:
- Estimated annual revenue: $450-550 billion
- Share of total business revenue: 10-12 per cent
- Number of businesses: approximately 100,000
- Average revenue per business: $100-150 million
Key insights:
- High gross turnover reflects distribution businesses operating on thin margins
- Wholesale businesses move goods between manufacturers and retailers
- Agricultural commodity traders can move billions annually
- Small niche distributors might turn over $2-5 million
- 2023-24 saw sales and service income grow 2.2 per cent
Retail Trade
Revenue profile:
- Estimated annual revenue: $350-450 billion
- Share of total business revenue: 7-9 per cent
- Number of businesses: 156,169 (declining 0.4 per cent in 2024-25)
- Average revenue per business: $10-20 million
Key insights:
- Woolworths and Coles together generate over $100 billion
- The typical independent retailer turns over $1-2 million annually
- Long tail of small retailers operating at $200,000-500,000 drags the average down
- Online competition continues to erode traditional retail
- 2023-24 saw sales and service income grow 4.8 per cent
Construction
Revenue profile:
- Estimated annual revenue: $350-450 billion
- Share of total business revenue: 8-10 per cent
- Number of businesses: 454,850 (largest by count, growing 2.2 per cent)
- Average revenue per business: $2-5 million
Key insights:
- Largest industry by business count but fragmented structure keeps average revenue low
- Large construction firms handling major infrastructure projects generate billions annually
- Most construction businesses are trades operators, subcontractors, and small builders
- 2023-24 saw industry value added grow 8.6 per cent reflecting strong infrastructure investment
- Total income from construction services grew 10.5 per cent
Professional, Scientific and Technical Services
Revenue profile:
- Estimated annual revenue: $250-350 billion
- Share of total business revenue: 6-8 per cent
- Number of businesses: 367,085 (largest professional sector)
- Average revenue per business: $1-3 million
Key insights:
- Low average reflects many sole practitioners alongside major consulting firms
- Large consulting firms, engineering practices, and law firms generate hundreds of millions
- Solo accountants, consultants, and designers at $100,000-300,000 make up bulk of counts
- 2023-24 saw sales and service income grow 8.7 per cent
- EBITDA grew 11.6 per cent, strongest earnings growth outside specialist sectors
Manufacturing
Revenue profile:
- Estimated annual revenue: $250-350 billion
- Share of total business revenue: 6-8 per cent
- Number of businesses: approximately 90,000
- Average revenue per business: $10-20 million
Key insights:
- Higher average than many service sectors due to capital intensity
- Sector has declined as share of economy but remains significant
- Food manufacturing, pharmaceutical production, and advanced manufacturing show strength
- 2023-24 saw sales and service income grow just 1.3 per cent
- EBITDA fell 7.1 per cent as input costs squeezed margins
Health Care and Social Assistance
Revenue profile:
- Estimated annual revenue: $180-220 billion
- Share of total business revenue: 4-5 per cent
- Number of businesses: 213,177 (growing 6.6 per cent, fastest of any industry)
- Average revenue per business: $2-5 million
Key insights:
- Growth driven by ageing population and NDIS expansion
- Medical practices, allied health clinics, aged care providers vary enormously in scale
- Large hospital groups generate hundreds of millions
- Solo practitioners turn over $200,000-500,000
- 2023-24 saw sales and service income grow 7.5 per cent
Transport, Postal and Warehousing
Revenue profile:
- Estimated annual revenue: $180-250 billion
- Share of total business revenue: 4-6 per cent
- Number of businesses: 249,289 (growing 5.1 per cent)
- Average revenue per business: $5-10 million
Key insights:
- E-commerce explosion has driven growth in last-mile delivery
- Mix of major logistics companies and small owner-operators
- Qantas and toll road operators skew averages upward
- 2023-24 saw sales and service income grow 3.5 per cent
- OPBT surged 103.3 per cent largely due to asset revaluations
What the Revenue Data Tells Us
The Extreme Concentration Problem
The data reveals a fundamental truth about Australian business: a tiny fraction of companies generate most of the revenue.
Consider these ratios:
- 0.2 per cent of businesses (large companies) generate 40-50 per cent of revenue
- 63.6 per cent of businesses (non-employing) generate just 10-15 per cent of revenue
- The top 2,000 companies likely generate more revenue than the bottom 2.5 million combined
What this means for business owners:
- You're not competing with the same businesses that dominate the statistics
- Industry revenue averages are largely irrelevant to your competitive reality
- Your actual competitive set is businesses of similar size in similar markets
The Missing Middle
The squeeze on small employing businesses shows up in revenue data too:
- Non-employing businesses: growing at 4.9 per cent
- Businesses with 1-4 employees: declining 0.7 per cent
- Businesses with 5-19 employees: flat (0 per cent growth)
- Large businesses (200+): growing at 2.6 per cent
The data suggests two sustainable models are emerging:
- Stay lean as a non-employing business with $200,000-500,000 in revenue using contractors and technology
- Scale quickly to 20+ employees with $5-10 million+ in revenue and proper infrastructure
The middle ground of 1-19 employees with $500,000-3 million in revenue is increasingly difficult territory.
Industry Dynamics Favour Services
All the fastest-growing industries by business count are service-based:
- Health Care and Social Assistance: 6.6 per cent growth
- Transport, Postal and Warehousing: 5.1 per cent growth
- Financial and Insurance Services: 3.7 per cent growth
Meanwhile, goods-producing sectors struggle:
- Agriculture, Forestry and Fishing: down 0.8 per cent
- Retail Trade: down 0.4 per cent
- Manufacturing: up just 1 per cent in revenue terms
The Australian economy continues its long-term shift toward services, with implications for business formation, employment, and productivity growth.
Using This Data for Business Planning
Benchmarking Your Revenue
The aggregate statistics have limited value for individual business planning. More useful questions:
For your industry:
- What is the typical revenue for a business your size in your sector?
- What revenue do you need to support your cost structure sustainably?
- What do the top performers in your category generate?
For your growth stage:
- Non-employing: Can you reach $200,000-300,000 sustainably as a solo operator?
- 1-4 employees: Can you generate $150,000-200,000 per employee to support overhead?
- 5-19 employees: Can you hit $2-5 million to justify management infrastructure?
- 20+ employees: Can you scale past $10 million with strong unit economics?
Understanding Your Competitive Position
The revenue concentration data suggests strategy implications:
If you're competing on price:
- You're competing with thousands of similar-sized businesses
- Large companies with scale advantages can undercut you
- Differentiation matters more than efficiency
If you're competing on expertise:
- Revenue per client matters more than client count
- Premium positioning requires demonstrated specialisation
- The professional services model of $100,000-300,000 revenue per professional is viable
If you're competing on scale:
- The jump from $1 million to $10 million is where most businesses stall
- Infrastructure investment required exceeds returns until you reach critical mass
- Many businesses are better off staying small than attempting growth without resources
Frequently Asked Questions
What is the total annual revenue of Australian businesses?
Total private sector business revenue is approximately $4.4-4.6 trillion annually. This figure is derived from GDP data using standard gross output to value-added ratios and cross-checked against ABS industry survey data showing $4.2 trillion in sales and service income for 2023-24 plus estimated growth.
What is the average revenue per Australian business?
The overall average revenue per business is approximately $1.6-1.7 million ($4.5 trillion divided by 2.73 million businesses). However, this average is misleading due to extreme concentration. Non-employing businesses average $200,000-400,000. Small employing businesses average $800,000-1.5 million. Large businesses average $200-500 million or more.
Which industries generate the most revenue in Australia?
Mining generates the highest revenue share at 12-15 per cent of total business revenue ($550-700 billion) despite having less than 1 per cent of businesses. Financial services and wholesale trade each generate 10-12 per cent. Retail, construction, and professional services each generate 6-10 per cent.
What percentage of revenue do large businesses generate?
Large businesses with 200 or more employees represent just 0.2 per cent of Australian businesses (approximately 4,000-5,000 businesses) but generate 40-50 per cent of total private sector revenue. The top 1,000-2,000 companies generate more than half of all private sector revenue.
How does Australian business revenue compare to GDP?
Total business revenue of approximately $4.5 trillion is roughly 1.6 times GDP of $2.75 trillion. This ratio reflects the difference between total turnover (gross output) and value added (GDP). GDP measures the value each business adds, while revenue includes payments to suppliers for intermediate inputs.
What is the average revenue for a small business in Australia?
Small employing businesses (1-19 employees) average $800,000-1.5 million in annual revenue. However, this varies significantly by industry. Retail and hospitality businesses might turn over $300,000-500,000. Professional services and trades businesses with multiple staff can reach $2-5 million.
Why do non-employing businesses have such low revenue?
Non-employing businesses average just $200,000-400,000 in revenue because many operate part-time, below the GST threshold, or as investment vehicles. The median is likely well below $100,000. High-turnover sole traders in professional services skew the average upward.
Which industries have the highest revenue per business?
Mining has the highest average revenue per business at over $500 million, driven by major miners like BHP and Rio Tinto. Financial services averages $100-200 million per business. Wholesale trade averages $100-150 million. Most other industries average $1-20 million per business.
How is business revenue distributed across Australian states?
New South Wales generates approximately 31-32 per cent of national business revenue, followed by Victoria at 24-25 per cent and Queensland at 19-20 per cent. Western Australia punches above its population weight due to mining, contributing 15-16 per cent of revenue.
What does the revenue concentration mean for small businesses?
The extreme concentration of revenue in large businesses means SMEs operate in fundamentally different markets. A $2 million business isn't competing with BHP. Understanding your actual competitive set requires looking at businesses of similar size, not industry aggregates dominated by major players.
How much revenue does a business need to employ staff sustainably?
To employ staff sustainably, most businesses need to generate $150,000-200,000 in revenue per employee to cover wages, superannuation, on-costs, and overhead while maintaining reasonable margins. A business with 5 employees typically needs $750,000-1 million minimum revenue.
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