Australian business profits fall on mining slump
- Australian business operating profits fell 1.9% in the 2024–25 financial year.
- The decline was driven by a $32.9 billion drop in mining industry profits.
- Reduced global demand for coal, iron ore, and lithium drove the commodity downturn.
The Australian Bureau of Statistics reported that overall Australian business operating profits fell 1.9% in the 2024–25 financial year due to a significant downturn in the resources sector.
This total decline follows a mixed performance across the economy where five industries reported profit drops and 14 industries recorded increases.
"There were mixed impacts across Australian businesses, as five industries reported falls in profits and fourteen industries recorded a rise in profits," said ABS Head of Business Insights and Statistics Tom Lay.
Mining operating profits decreased by $32.9 billion or 19.1% following reduced global demand and lower prices for coal, iron ore, and spodumene.
The rental, hiring, and real estate services industry partially offset this decline by recording the largest profit increase of $20.2 billion.
The private health care and social assistance sector also grew by $6 billion due to rising childcare enrolments, aged care clients, and disability insurance participants.
Construction operating profits rose by $5.2 billion over the same period because of increased demand for non-residential building construction.