The fastest growing group of new business founders in Australia right now is 45 to 54 year olds. New Lawpath data paints an interesting picture of who is actually starting businesses in 2026.
Australia recorded 112,857 new business registrations in May 2026, up 6.77% on May last year, according to the Lawpath New Business Index. That takes total registrations for the year to date to 583,683, a 10.05% increase on the same period in 2025.
Company registrations rose a more modest 0.33% year-on-year to 32,094. GST registrations fell 4.51% to 25,317. Sole traders were the standout, with 83,219 registrations in May, up 14.02% year-on-year and accounting for the largest share of all new business activity.Starting yes, scaling carefully
The gap between those three numbers tells its own story. New registrations are growing strongly, but company formations and GST sign-ups are not keeping pace. That suggests many of the new businesses being formed are starting lean, registering the idea first and then waiting to see whether demand justifies the next step.
Tom Willis, CMO at Lawpath, said the May data reflects a shift in how Australians are approaching the early stages of business ownership. “More Australians are taking the first step, particularly through sole trader structures, but the drop in GST registrations suggests many are keeping things lean while they test demand,” he said.
“This feels less like a slowdown in entrepreneurship and more like a shift in how Australians are approaching the early stages of business ownership. They are still setting up, but they are being more deliberate about when to commit to larger structures, tax obligations and growth plans,” Willis added.Where growth is happening
New business registrations increased across every state and territory in May. The ACT recorded the strongest year-on-year growth at 10.83%, followed by Queensland at 8.01%, Western Australia at 7.95% and Tasmania at 7.85%. New South Wales remained the largest state by volume with 36,115 registrations, followed by Victoria with 29,678 and Queensland with 24,111.
Major metropolitan postcodes featured strongly, with Victoria’s 3029 recording 1,150 registrations, Sydney 2000 recording 1,033 and Melbourne 3000 recording 1,008. Outer suburban and growth corridor postcodes were also prominent, including Craigieburn, Werribee, Liverpool, Cranbourne and Cardinia. Regional Australia accounted for 32.16% of all May registrations, continuing to represent a significant and consistent share of new business activity.Who is starting businesses
The founder profile emerging from the May data skews older and more experienced than might be expected. The largest age cohort of applicants was 45 to 54 year olds, accounting for 21% of new registrations, followed by 35 to 39 year olds and 40 to 44 year olds, each at 19%.
The industry mix reflects that experience. Property and business services accounted for the largest share of applicants at 21%, followed by personal and other services at 20% and construction at 12%.
Willis said the profile points to practical, experience-led business formation rather than speculative activity. “The founder profile we are seeing is practical and experienced. A larger share of applicants are in their 40s and 50s, and the strongest industry categories are tied to services, property, construction and local demand. These are not just speculative ideas. Many are businesses being built around skills, experience and clear commercial need,” he said.
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