MEDIA RELEASE (AU)

Finance and investment services are among Australia's most profitable small business sectors, while hospitality businesses operate on some of the tightest margins, new research from Chartered Accountants Australia and New Zealand (CA ANZ) and the University of Melbourne has found. 

Drawing on the latest available Australian Bureau of Statistics (ABS) data, the 2026 Australia Small Business Benchmarking Report compares Australian small and medium-sized enterprises (SMEs) across profitability, growth and financial performance. It identifies the most profitable small business sectors based on typical net operating profit over the five years from 2018 to 20231.  

As the second edition of the benchmarking report, the research shows finance and investment services continue to rank among Australia's most profitable SME sectors, while cafes, restaurants and takeaway businesses remain among those operating on the narrowest margins. 

The sectors recording the highest typical net operating profit were: 

• finance and investment services, including trustee, investment management and advisory activities: $310,915 
• chemist and pharmacy businesses: $248,627 
• legal services: $191,620 

By comparison, some of the least profitable sectors are: 

• cafes and restaurants: $29,887 
• takeaway food services: $38,725 
• hairdressing and beauty services: $44,889 

The research also found the typical Australian small business records annual sales growth of around six per cent, although performance varies between industries and individual firms. 

Industries with the highest typical revenues include: 

• fuel retailing: $3.9 million 
• general goods wholesaling: $3.7 million 
• electrical and electronic goods wholesaling: $3.7 million 
• supermarket and grocery retailing: $2.8 million 
• hardware and building supplies wholesaling: $2.7 million 

CA ANZ Chief Executive Officer Ainslie van Onselen said the benchmarks provide small businesses and their advisers with valuable insight into financial performance, profitability and risk. 

"These benchmarks help business owners understand how they compare with similar businesses and identify opportunities to improve performance,” Ms van Onselen said.  

"There is no single formula for success. Businesses operate in very different markets and face different challenges, which makes access to reliable industry data critical for informed decision-making. 

"For Chartered Accountants, the benchmarks provide evidence-based insights that can strengthen business planning, forecasting, valuations and advisory services. 

"The report also shows that growth alone is not enough. In sectors such as hospitality, strong sales don't always translate into strong profits because wage and operating costs can quickly erode margins. That's why managing risk is just as important as pursuing growth." 

The benchmarks cover micro (1-4 employees), small (5-19 employees) and medium-sized businesses (20-100 employees), with performance ranges spanning low to high-performing firms across a broad range of industries. 

The findings reinforce CA ANZ's ongoing commitment to supporting small businesses through practical resources, guidance and professional support available to members via its Smaller Practices Centre. 

The analysis was undertaken by researchers from the University of Melbourne using ABS Business Longitudinal Analysis Data Environment (BLADE) data from SME company tax returns and activity statements.