Industries with Riskiest Business Environments in Australia in 2026

• 1. Coal Mining in Australia

  Business Environment Risk for 2026: 7

  Coal is a key input in steelmaking and energy generation. Although coal deposits are found all over the world, Australia is one of the world's lowest-cost producers and a major coal exporter. Domestic reserves exceed domestic demand, are high grade and are economical to access. As a result, exports account for a large share of coal mining revenue. Imports are negligible, as local production is higher than domestic demand for coal. Black coal mining accounts for most activity, with some brown ...

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• 2. Iron Ore Mining in Australia

  Business Environment Risk for 2026: 7

  Iron ore miners have faced difficult trading conditions because of easing iron ore prices over the past few years, despite the nation maintaining its status as the world's largest iron ore supplier and benefiting from proximity to Asian markets. However, modest growth in production volumes has partly offset revenue declines. Industry revenue is expected to have sunk at an annualised 1.7% over the five years through 2024-25, to $131.5 billion. Easing iron ore prices, driven primarily by a slow...

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• 3. Oil and Gas Extraction in Australia

  Business Environment Risk for 2026: 7

  Oil and gas producers have experienced significant revenue volatility. Changes in oil and gas prices, exchange rate movements, annual production volumes, and domestic and export demand for oil and gas all influence the industry’s performance. Output has expanded over the past decade, while world oil and natural gas prices have displayed significant volatility.

  Australia's natural gas production, which comprises most of the industry, has soared over the past decade as new gas fields hav...

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• 4. Credit Unions and Building Societies in Australia

  Business Environment Risk for 2026: 7

  The Credit Unions and Building Societies industry has faced challenging operating conditions over the past few years. While low interest rates after the COVID-19 outbreak cut into interest income generated on providers' loan books, the RBA has since been consistently hiking the cash rate. This trend has elevated interest income through higher interest rates on existing loans. Government incentives, like the First Home Guarantee scheme, have fuelled demand from first-homeowners despite decline...

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• 5. Gas Supply in Australia

  Business Environment Risk for 2026: 7

  The Gas Supply industry consists of gas retailers that buy and sell gas, and gas distributors that operate the distribution networks carrying gas to end users. The retail and distribution functions are separated by regulation, with different companies performing these activities. Gas retailing accounts for the majority of industry revenue and is dominated by three companies; AGL Energy Limited, Origin Energy Limited and EnergyAustralia Holdings Limited. SGSP (Australia) Assets Pty Ltd, tradin...

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• 6. Wine Production in Australia

  Business Environment Risk for 2026: 7

  Wine producers have faced mixed trading conditions over the past few years. They’ve benefited from growing global demand for Australian wine and premiumisation trends. In recent years, a depreciating Australian dollar and several free trade agreements with countries in the Asia-Pacific region have benefited exports. Nonetheless, declines in per capita alcohol consumption have limited domestic demand. Pandemic restrictions adversely affected the food-service market over the three years through...

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• 7. Jewellery Manufacturing in Australia

  Business Environment Risk for 2026: 7

  Australia's jewellery manufacturers are turning challenges into opportunities in a market shaken by soaring input costs and evolving consumer demands. The industry has faced rocky conditions in recent years, with volatile gold and silver prices and export volumes shifting revenue. Exports have rebounded following a notable slump in 2023-24, driven by growing downstream demand for custom-designed pieces. The industry has demonstrated resilience, leveraging niche markets and premium products to...

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• 8. Foreign Banks in Australia

  Business Environment Risk for 2026: 7

  The Foreign Banks industry includes domestic subsidiaries of foreign banks and branches of foreign banks, which have grown over the past few years as soaring interest rates contributed to a sharp revenue rise. The Reserve Bank of Australia (RBA) maintained a relatively low cash rate over the past decade – especially in response to the pandemic – to stimulate economic activity. The low cash rate environment hampered foreign banks' revenue in the three years through 2021-22. In May 2022, this a...

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• 9. Lubricants and Other Petroleum Product Manufacturing in Australia

  Business Environment Risk for 2026: 7

  Lubricants and other petroleum product manufacturers further refine heavy and light oil components into various petroleum-based products using oil and grease base stocks with key products, including lubricating oils and greases, bitumen and aromatic hydrocarbons. Others distil coal to produce coke and coal tar. This means that the industry is highly susceptible to developments in the upstream petroleum refining and coal mining sectors. In particular, the industry has been adversely affected b...

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• 10. Cotton Growing in Australia

  Business Environment Risk for 2026: 7

  The Cotton Growing industry experiences significant annual volatility due to water availability and erratic weather, which influence acreage, participation and revenue. Water scarcity forces farmers to reduce cotton cultivation and shift to more lucrative crops suited to prevailing conditions. Abundant rainfall in the Murray-Darling Basin during 2021-22 boosted water availability and revenue, but less favourable conditions have since constrained growth. Global fashion trends and the cost of s...

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