New business formation in Australia remains stable, but there's been a notable shift in the types of businesses being set up and who's behind them. According to Lawpath's August New Business Index, a total of 111,555 new Australian Business Numbers (ABNs) were registered - a 2.46% increase from August last year.
However, this growth isn't uniform across all areas. New company registrations actually decreased by 6.43%, while GST registrations dropped by 5.48% over the same period. This suggests that the overall growth is being driven by specific sectors or types of businesses.
Construction is the clearest industry mover, formations in that sector jumped 38.18%, lifting construction's share of Lawpath's overall industry mix from 13% to 20% in just a year.
Who's starting businesses is changing
The founder profile is shifting too. Australians aged 45 to 54 made up 20% of applicants in August, up from 18% a year earlier, while the 55-plus cohort grew from 10% to 11%. The 35 to 39 age bracket fell from 20% to 18% over the same period.
Birthplace data moved as well. Australian-born first directors increased their share from 31% to 38%, while India remained the second-largest birthplace group, rising from 23% to 25%.
Lawpath CEO Tom Willis said the national registration figure doesn't capture what's actually changing.
"The encouraging thing is that Australians are still starting businesses. What's changing is the mix underneath that. We're seeing shifts in the industries people are entering, but also in the age and background of the founders behind those businesses."
Where growth is happening
Every state and territory recorded year-on-year growth in new ABN registrations. Tasmania led with 15.95% growth, followed by the Northern Territory at 11.37%, Queensland at 7.49%, New South Wales at 7.13% and Victoria at 6.97%. Regional Australia accounted for 30.1% of all new business registrations in August.
"There isn't one single story behind new business formation," Willis said. "The data is showing different groups of Australians finding opportunities in different parts of the economy and across the country, which is why the mix underneath the headline number is worth watching."
How founders are structuring up
The way new businesses are being set up is shifting alongside everything else. Sole trader registrations rose 12.29% year-on-year and company registrations rose 12.84%, while trust registrations fell sharply, down 63.87%, and superannuation fund registrations dropped 19.97%. That divergence points to founders changing not just where and who is starting businesses, but how they're choosing to structure them from the outset.