Industries with the Highest Profit Margin in Australia in 2024

1. Superannuation Funds in Australia

Profit Margin 2024: 99.0%

Significant global market volatility has affected invest incomes for superannuation funds in recent years. The initial COVID-19 outbreak and subsequent economic uncertainty, including inflationary pressures, saw revenue for funds fluctuate dramatically. Superannuation fund revenue is expected to increase at an annualised 0.7% over the five years through 2022-23, to total $230.1 billion, although the period has seen significant volatility. Superannuation fund's total assets are a more accurate indicator of the industry's size, with assets expected to grow at an annualised 3.4% over the same period, to $3.5 trillion. Continued incremental increases to the Superannuation Guarantee Scheme have boosted contributions to... Learn More

2. Industry Superannuation Funds in Australia

Profit Margin 2024: 94.1%

Industry super funds are not-for-profit superannuation funds that operate for the benefit of their members. Revenue for the Industry Superannuation Funds industry has risen strongly over the past five years despite significant volatility. Several events created volatility for the industry at the start of the period, including the UK's EU referendum, which caused significant fluctuations in industry revenue. The industry's investment performance fluctuated but improved overall throughout much of the period prior to the COVID-19 outbreak. However, volatility during the pandemic led to an investment loss for industry super funds in 2019-20. Investment returns are expected to rebound strongly over... Learn More

3. Retail Superannuation Funds in Australia

Profit Margin 2024: 91.7%

The performance of the Retail Superannuation Funds industry has fluctuated significantly over the past five years. Industry revenue is expected to rise at an annualised 7.8% over the five years through 2021-22, to $75.3 billion. This trend includes a decline of 32.8% in the current year, following significant growth in 2020-21 as the industry rebounded from the investment losses incurred in 2019-20. Industry revenue is highly volatile, and fluctuations in investment returns can cause revenue shocks. Due to this volatility, revenue is not an accurate representation of industry performance and size. Funds under administration (FUA) provide a better indication, and... Learn More

4. Lithium and Other Non-Metallic Mineral Mining in Australia

Profit Margin 2024: 58.3%

Spodumene concentrate (lithium ore) has become by far the dominant product in the Lithium and Other Non-Metallic Mineral Mining industry over the five years through 2023-24. Spodumene concentrate is still mainly exported to China for further processing, but major mining firms have started to use it domestically to refine lithium hydroxide. Spodumene concentrate output has increased over the past five years, particularly over the three years through 2023-24. While production is growing strongly, surging demand is behind the largely price-driven growth, as strong demand from the Chinese electric vehicle market and lithium stockpiling is prompting a spike in world prices.... Learn More

5. Financial Asset Investing in Australia

Profit Margin 2024: 53.8%

Financial asset investors have benefited from a generally strong domestic sharemarket performance over the past five years. Typically, industry funds are invested in equities and industry revenue depends on various sharemarket performances. The COVID-19 pandemic and ensuing inflationary pressures significantly disrupted both local and global equity markets, which limited industry performance. Yet, total assets have continued to accumulate over recent years compounding returns for investors, assisted by previously low interest rates. Overall, industry revenue is expected to rise at an annualised 4.2% over the five years through 2023-24, to $143.2 billion.

The low interest rate environment that characterised the trading landscape... Learn More

6. Office Property Operators in Australia

Profit Margin 2024: 51.8%

Trading conditions have been challenging for the Office Property Operators industry. The number of non-manual employees in the workforce and private sector capital expenditure have been climbing, supporting overall demand. But fluctuating business confidence and reduced demand from superannuation funds have considerably dulled performance. The COVID-19 pandemic hit the financial outlook of many firms across the country; economic uncertainty led to negative business confidence, which discourage downstream customer firms from expanding their operations or acquiring office space. Superannuation funds invest a lot of money in office property, and lower demand from this market cut into the performance of office property... Learn More

7. Online Car Classifieds in Australia

Profit Margin 2024: 48.7%

Revenue for the Online Car Classifieds industry has been volatile in recent years but has grown overall. New passenger vehicle sales are diminishing as the economy deteriorated during the pandemic, negatively affecting credit availability and constraining demand for online car classifieds. The pandemic caused revenue to plummet in 2019-20 as restrictions on movement and gatherings hurt demand for motor vehicles and their accompanying classified ads. However, online car classifieds sellers have benefited from rising demand for online services, with online classifieds websites supplanting newspapers as the main resource for private car listings. Revenue is set to climb at an annualised... Learn More

8. Iron Ore Mining in Australia

Profit Margin 2024: 48.0%

Iron ore miners have benefited from major increases in iron ore prices, and modest growth in production volumes over the past five years. Iron ore revenue is expected to increase at an annualised 8.1% over the five years through 2022-23, to total an estimated $124.1 billion. Strong demand from China and disruptions to iron ore producers in Brazil prior to, and during the COVID-19 pandemic, sent iron ore prices soaring. Iron ore prices are projected to fall in 2022-23, prompting iron ore revenue to drop an estimated 16.2% over the year.

Over the past decade, strong economic growth in China has... Learn More

9. Mineral Sand Mining in Australia

Profit Margin 2024: 47.6%

Australia is a major mineral sands mining country due to its large natural reserves and extensive mining sites. Most of the Mineral Sand Mining industry's products proceed to downstream smelting and refining companies for processing prior to being exported or used by domestic manufacturers. Titanium dioxide products are mainly sold to pigment manufacturers, while zircon is primarily sold to producers of refractory bricks for use in metal smelting operations. Consequently, industry demand largely derives from these downstream manufacturing markets. Industry production volumes have increased over the past five years, as industry firms have increased output to benefit from higher prices.

Industry... Learn More

10. Battery Material Mining in Australia

Profit Margin 2024: 45.9%

Battery material mining revenue has soared, as battery manufacturers have sought to lock in supply to meet surging demand. Rising demand for electric vehicles has led global automakers to offer a growing range of electric vehicles, particularly in China. The supply of battery materials has become increasingly tight, driving demand for Australian battery material exports. Overall, industry revenue has grown at an annualised 55.9% over the past five years, to $16.9 billion. This includes a rise of 198.6% in 2022-23, as lithium export prices skyrocket.

Several new enterprises have entered the industry by developing lithium mines in Western Australia. These firms... Learn More