In the year to June 2025, Australia added a net 66,650 new businesses. But this growth was far from even. While some regions stagnated, others saw business entries surge by double digits, driven by infrastructure investment, population booms, and sector-specific tailwinds.
This analysis ranks the top 10 Local Government Areas for small business growth, using the latest ABS Counts of Australian Businesses data (released 16 December 2025) combined with population trends from ABS Regional Population estimates, industry concentration data, and infrastructure catalysts. For business owners considering where to expand, relocate, or launch, these are the areas worth watching.
At 30 June 2025, Australia had 2,729,648 actively trading businesses, with 994,178 of these being employing businesses. Small businesses with fewer than 20 employees comprised 97.3% of the total.
The national figures show steady expansion:
State-level data reveals significant variation. New South Wales led with an absolute gain of 20,040 businesses. Western Australia posted the highest percentage growth at 4.3%, adding 10,877 net businesses. Victoria added 16,486 net businesses, concentrated heavily in outer Melbourne corridors.
The industries driving this growth tell their own story. Health Care and Social Assistance led all sectors with 6.6% growth, reaching 213,177 businesses nationally. Transport, Postal and Warehousing followed at 5.1%, now totalling 249,289 businesses. Financial and Insurance Services grew 3.7%.
Meanwhile, Agriculture declined 0.8% and Retail Trade contracted 0.4%, continuing a multi-year squeeze on traditional sectors.
This ranking uses a weighted scoring model drawing on four factors:
Important note on data availability: The ABS publishes LGA-level business counts in supplementary data cubes, but granular net entry figures by LGA are limited in public releases. This ranking therefore combines ABS state data with population growth as a proxy for business formation potential, validated against third-party indices such as Tapt's Business Growth Index 2025.
This ranking does not include commercial property price growth as a positive factor, as affordability is a key consideration for new market entrants.
The verdict: Australia's standout performer, combining exceptional population growth with strong sector alignment in health and professional services.
Melton tops the ranking as Australia's fastest-growing LGA for business activity. The Tapt Business Growth Index 2025 identified Melton as the number one performer nationally, with an implied 34.9% surge in business activity over five years.
The combination of population influx, sector alignment, and relative affordability makes Melton the standout performer for SME expansion.
The verdict: Melbourne's western growth corridor leader, with transport and warehousing businesses capitalising on freight route access.
Wyndham recorded among Australia's highest absolute population gains, placing it in the top tier nationally for demographic growth.
Startup affordability remains a key draw, allowing capital-constrained businesses to establish operations with lower fixed costs.
The verdict: Ground zero for Western Sydney's transformation, with airport-driven growth creating opportunities across construction and professional services.
Camden sits at the centre of the Western Sydney transformation, with sustained population growth driven by new housing estates and infrastructure investment.
The Aerotropolis precinct surrounding the airport is designed to support advanced manufacturing, aerospace, and defence industries. Small businesses providing services to these sectors are positioning early.
The verdict: Western Sydney's logistics gateway, with transport and warehousing businesses establishing ahead of the airport opening.
Liverpool functions as a logistics and transport hub for Western Sydney, with business entries heavily weighted toward these sectors.
Proximity to the airport zone positions Liverpool as a supply chain gateway. Businesses serving freight, distribution, and passenger services are establishing ahead of the late 2026 opening.
The verdict: The employment anchor for the airport precinct, with health care SMEs expanding to serve outer-western population growth.
Penrith contributed significantly to NSW's 20,040 net business gain, with particular strength in health care services.
The LGA benefits from its position as the employment anchor for the airport precinct, with transport links connecting Penrith to the new airport and broader Sydney network.
The verdict: Established infrastructure meets emerging airport economy, with retail and professional services serving residential demand and new employment centres.
Blacktown recorded population growth of around 9,400 residents, among the highest absolute gains nationally.
The LGA's existing infrastructure makes it attractive for businesses requiring immediate operational capacity rather than greenfield development.
The verdict: Western Sydney's manufacturing base, positioned for emerging opportunities in renewables and logistics.
Fairfield shows strong percentage growth in manufacturing and transport SMEs, benefiting from Western Sydney's industrial transition.
Proximity to the airport zone provides infrastructure access while maintaining cost advantages over primary development areas.
The verdict: SEQ's construction and renewables hub, with Olympics infrastructure creating sustained demand for contractors and service providers.
Moreton Bay recorded population growth of around 6,500 residents, with business entries concentrated in construction.
Emerging SME activity in renewables reflects Queensland's energy transition, with solar and battery installation businesses expanding rapidly.
The verdict: Regional headquarters for firms expanding into Queensland, with professional services firms establishing operations to serve the infrastructure pipeline.
Brisbane's urban core added around 6,800 residents, with business concentration in professional services.
Professional services firms are establishing Brisbane operations to serve the construction and infrastructure pipeline extending through the early 2030s.
The verdict: Perth's northern fringe capturing WA's resource sector strength, with mining services and renewables businesses expanding.
Wanneroo benefits from Western Australia's position as the fastest-growing state by percentage, with WA adding 10,877 net businesses at a 4.3% growth rate.
Perth's northern fringe offers access to major resource projects while maintaining residential population growth that supports local services.
New South Wales leads absolute gains with 20,040 net businesses, driven primarily by the Western Sydney Airport precinct and surrounding development. The state's concentration of growth in outer-western LGAs reflects both infrastructure investment and relative affordability compared to established Sydney centres.
Western Australia tops percentage growth at 4.3%, with mining and renewables investment driving demand for services businesses. Critical minerals and renewable energy projects are adding to traditional mining activity, creating opportunities across the supply chain.
Victoria added 16,486 net businesses, concentrated in outer Melbourne growth corridors. Melton and Wyndham lead the state, absorbing population growth with corresponding demand for health, retail, and professional services.
Queensland shows strong gains in SEQ, with Brisbane, Moreton Bay, and surrounding LGAs receiving sustained infrastructure investment ahead of the 2032 Olympics. Construction and professional services businesses are expanding to meet demand.
Western Sydney Airport opens late 2026 with capacity for 10 million annual passengers initially. Employment projections reach 28,000 by 2031 and 48,000 by 2041. The surrounding Aerotropolis is designed for advanced manufacturing, aerospace, and defence. For detailed project updates, refer to the Western Sydney Airport project overview at westernsydneyairport.gov.au.
Perth mining and renewables continue to drive demand for services businesses. Western Australia's resource sector, including critical minerals and renewable energy projects, creates opportunities across the supply chain for SMEs willing to service remote and regional operations.
Melbourne growth corridors in the outer western and northern suburbs are absorbing population growth with corresponding demand for health, retail, and professional services. Transport infrastructure investment is improving connectivity while maintaining cost advantages over established centres.
SEQ Olympics infrastructure is providing sustained investment to Brisbane, Gold Coast, and surrounding LGAs ahead of 2032. Construction and professional services businesses are expanding to meet the infrastructure pipeline extending through the early 2030s.
Businesses considering interstate expansion face different regulatory environments across states. Payroll tax thresholds, workers compensation schemes, and licensing requirements vary significantly between NSW, Victoria, Queensland, and Western Australia.
The top-performing LGAs share common characteristics:
For businesses in these sectors, these locations offer the combination of demand and accessibility that supports sustainable expansion.
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ABS Counts of Australian Businesses, including Entries and Exits (July 2021 - June 2025), released 16 December 2025 - https://www.abs.gov.au/statistics/economy/business-indicators/counts-australian-businesses-including-entries-and-exits/latest-release
ABS Regional Population 2023-24 - https://www.abs.gov.au/statistics/people/population/regional-population/latest-release
ABS Data by Region (LGA Profiles) - https://dbr.abs.gov.au/
Western Sydney Airport Project Overview - https://www.westernsydneyairport.gov.au/
Tapt Business Growth Index 2025 - https://tapt.io/
Scale Suite delivers embedded finance and human resource services for ambitious Australian businesses.Our Sydney-based team integrates with your daily operations through a shared platform, working like part of your internal staff but with senior-level expertise. From complete bookkeeping to strategic CFO insights, we deliver better outcomes than a single hire - without the recruitment risk, training time, or full-time salary commitment.
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