Nearly 1 Million Australian Businesses Stop Trading Amid Cost Pressures
Synopsis
Almost one million Australian businesses have stopped trading since 2022 as higher prices and mounting operating costs make survival harder.
Australian business exits continue to hit record numbers during 2025-26, with 375,331 businesses departing the market as of the latest Australian Bureau of Statistics data.
370,500 people emigrated to the country during 2024-25, up by 4,831 persons from the previous year. On June 30, 2026, the number of active businesses increased by 3.1% (85,130 businesses) to 2,814,778 businesses.
Business turnover rises as operating costs stay high
New data shows that businesses are continuing to turn over within Australia’s market. During 2025-26, 460,461 businesses were commenced and 375,331 businesses were exited leaving a net business growth of 85,130 businesses.
The ABS business exit is not necessarily an indicator of permanent closure but rather encompasses business cancellations, cessations for extended periods and other structural changes to a business.
Australian businesses are feeling the pressure of the rising costs with 46% of businesses reporting an increase in expenses in the last four weeks with 71% of those businesses citing increases in fuel costs and 65% reporting higher overheads.
Health care and transport lead business growth
The latest business count also shows that business growth is occurring concurrently with business departures as businesses turn over within various industries.
The largest increase in business numbers was in the Health Care and Social Assistance sector which grew by 6.7% to 227,702 businesses. The Transport, Postal and Warehousing industry increased by 4.9% to 261,109 businesses, and Financial and Insurance Services by 4.3% to 139,417 businesses.
The only industry to record a decrease in business numbers was Agriculture, Forestry and Fishing falling by 0.5% to 170,185 businesses.
The ABS business count series records businesses with employees as the largest category of business with 996,203 businesses of the 2,814,778 businesses counted as active businesses as of June 2026.
The data is derived from the market sector of the Australian economy and does not capture businesses in the general government, the Reserve Bank of Australia or non-profit institutions serving households.
Source: News24
Pooja Malik is a business journalist with over six years of experience covering startups, entrepreneurship, and emerging trends. She has previously worked with leading media platforms such as YourStory Media and BW BusinessWorld, where she reported on business, policy, and market developments. Currently, she serves as Editor at The Inspirepreneur Magazine, where she writes and edits stories across business, lifestyle, and travel, with a focus on clarity, accuracy, and reader relevance.
