Scary - absolute decline in number of businesses that employ people

The ABS Counts of Australian Businesses publication measures the stock of actively trading businesses in Australia, together with business entries, exits and survival.

The latest release, published on 18 August, covers the four financial years from July 2022 to June 2026.

The figures are drawn from the ABS Business Register, which is populated using administrative information from Australian Business Number registrations and quarterly or annual business data supplied by the Australian Taxation Office.

At 30 June 2022, shortly after the Albanese Government was elected, Australia had 1,018,296 businesses that actually empoyed people. As at 30 June 2026, that number has fallen to 996,203 — a decline of 22,093 businesses, or 2.2 per cent.

Over these four years, Australia's estimated resident population has grown 7%, from 25,978,935 at 30 June 2022 to 27,801,023. That is an increase of 1,822,088 people, or 7.0 per cent.

It should be noted that over the same period, the number of non-employing businesses increased from 1,521,428 to 1,818,575, an increase of 297,147, or 19.5 per cent.

This may appear strong growth, but business counts are not measures of economic scale. A new sole trader is counted in exactly the same way as a business employing hundreds of people. Growth in non-employing businesses can therefore occur without corresponding growth in employment, investment or productive capacity, and may partly reflect existing work being reorganised into contracting or self-employment.

Australian businesses by employment status
Business type	Jun 2022	Jun 2026	Change	%
Employing businesses	1,018,296	996,203	−22,093	−2.2%
Non-employing businesses	1,521,428	1,818,575	+297,147	+19.5%
Source: ABS, Counts of Australian Businesses, including Entries and Exits. Business counts at 30 June 2022 and 30 June 2026.