Australians registered 110,075 new Australian Business Numbers in September, up 4.1 percent compared with the same month last year, according to Lawpath’s latest New Business Index. But beneath the headline growth, the mix of business structures being registered is changing significantly.
Sole traders lead the growth
Sole trader registrations climbed 13 percent year-on-year to 84,318, an increase of nearly 9,700 registrations compared with September 2025. That growth stands out against a broader slowdown in other registration types.
“What’s encouraging about September’s data is that Australians are continuing to take steps towards business ownership,” said Tom Willis, Co-Founder and CMO at Lawpath. “We’re seeing particularly strong growth in sole trader registrations, which shows that individual business activity remains an important part of Australia’s entrepreneurial landscape.”
Willis says the shift reflects the range of paths people are taking into business ownership, rather than a single trend. “Starting a business looks different for everyone, and the latest figures are a reminder that there isn’t one pathway into business ownership,” he said. “What’s important is that founders understand the structure they’re choosing and how it supports their plans.”
Sole trader structures generally involve fewer establishment requirements than companies or trusts, though Lawpath notes the appropriate structure for any individual business depends on factors including liability, tax obligations and long-term plans, not registration simplicity alone.
Companies and trusts pull back
While overall ABN registrations grew, new company formations slowed considerably, with 26,634 companies registered in September, down 20.3 percent compared with September 2025. That marks the second consecutive month of annual decline, following a 6.4 percent fall in August, after company registrations had actually increased 22.9 percent in July. GST registrations also fell, down 8.7 percent year-on-year to 23,228.
Trust registrations recorded the sharpest decline of any structure, dropping 64.2 percent from 5,968 in September 2025 to 2,135 in September 2026.
Lawpath notes the index can’t directly attribute these shifts to specific policy changes, but points to broader discussions around tax policy, including proposed changes to capital gains tax arrangements and the treatment of trusts, as relevant context for the changing mix.
Where the growth is happening
Business registration growth was recorded across every Australian state and territory in September. Tasmania recorded the strongest annual percentage increase, with ABN registrations rising 16.7 percent to 1,544, followed by Queensland at 11.3 percent growth, reaching 24,548 registrations. South Australia grew 8.4 percent, Victoria 7.5 percent and Western Australia 6.6 percent. New South Wales continued to account for the largest number of new registrations overall, with 35,157 ABNs registered, up 4.8 percent year-on-year.
At a postcode level, Melbourne’s western growth corridor stood out, with postcode 3029, covering Hoppers Crossing and Tarneit, recording 1,142 new registrations, the highest of any postcode in the September data. Sydney’s CBD (2000) followed with 996 registrations, and Melbourne’s CBD (3000) recorded 990. Craigieburn in Melbourne’s north saw registrations rise 13.8 percent to 849, while Brisbane’s CBD recorded an 8.6 percent increase to 692.
Regional Australia accounted for 32.6 percent of new business registrations nationally, against 67.4 percent in metropolitan areas, showing business formation remains concentrated in cities but with a meaningful regional contribution.
What this shift might reflect
The combination of rising sole trader numbers and falling company and trust registrations suggests more Australians may be opting for simpler, lower-cost structures when starting out, potentially reflecting caution around the complexity or cost of establishing a company or trust, rather than a slowdown in entrepreneurial activity itself. For anyone currently weighing up how to structure a new business, Willis’s underlying point is the relevant one: the right structure depends on individual circumstances, including liability exposure and tax position, not on which structure is currently trending.