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. 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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• 3. 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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• 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. Petroleum Refining & Petroleum Fuel Manufacturing in Australia

  Business Environment Risk for 2026: 7

  The Petroleum Refining and Petroleum Fuel Manufacturing industry has faced highly volatile conditions over recent years. The pandemic wreaked turmoil on global energy supply chains, with the global situation filtering down to Australia's petroleum market. This contributed to the closure of two of Australia's last four remaining oil refineries: BP closed its refinery in Kwinana, while ExxonMobil shut down its Altona refinery. Both the closed refineries were converted into import terminals, dir...

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• 6. Road and Bridge Construction in Australia

  Business Environment Risk for 2026: 7

  Leading construction companies have ridden an unprecedented wave of road construction activity thanks to record investment in mega projects, like the WestConnex motorway in Sydney and the West Gate Tunnel in Melbourne. An injection of public funding and progress on landmark public-private partnership (PPP) developments have lifted the industry to new heights, primarily benefiting prominent contractors participating in strategic joint ventures and on PPP-funded developments, including CPB Cont...

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• 7. 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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• 8. Gold Ore Mining in Australia

  Business Environment Risk for 2026: 7

  Australia's gold ore miners have performed well over the past few years thanks to skyrocketing gold prices, driven by growing consumer demand for gold to hedge against inflation, economic uncertainty and geopolitical unrest. More recently, the US's sweeping tariffs have escalated trade tensions, causing uncertainty to loom over global economic growth prospects. This trend has rattled investors' confidence in riskier assets, propelling demand for safe-haven assets like g...

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• 9. Fossil Fuel Electricity Generation in Australia

  Business Environment Risk for 2026: 7

  Fossil fuel generators have historically supplied most of Australia's electricity, as coal is the central fuel powering the country. Large, centralised coal-fired power stations have long been the basis for electricity generation in Australia. However, climate change radically shifts this dynamic, providing the impetus for a transition away from fossil fuels. In the medium to long term, this trend presents an ongoing threat to the future of fossil fuels in the electricity supply chain.

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• 10. Nickel Ore Mining in Australia

  Business Environment Risk for 2026: 7

  Nickel ore miners have experienced mostly positive operating conditions over the past decade. For most of the past five years, pricing growth was strong amid rising global demand for nickel. However, in 2023-24, oversupply in the global market prompted a sharp price downturn, forcing smaller nickel ore miners like Wyloo and Panoramic Resources to cease and suspend their operations. The Federal Government responded to weak nickel ore prices and these closures by providing relief through tax cr...

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