Trends & Research

Lawpath New Business Index • 2025 Review

Australia’s 2025 Year in Review: 1,308,115 New Businesses

Breaking down founder ages, business origins, and the industries driving Australia forward

2020 - 2025 • Yearly ABN Registration Trends and Insights

391,865
468,536
541,413
757,308
938,680
1,308,115
2020
2021
2022
2023
2024
2025

1,308,115

ABN registrations in 2025

+27.3%

Average annual growth rate (last 5 years)

734,320

Yearly Average

2020 - 2025 • Yearly ACN Registration Trends and Insights

237,994
300,721
272,891
287,880
318,151
364,748
2020
2021
2022
2023
2024
2025

364,748

ACN registrations in 2025

+8.9%

Average annual growth rate (last 5 years)

297,064

Yearly Average

2020 - 2025 • Yearly GST Registration Trends and Insights

369,675
476,644
531,971
562,117
604,890
636,998
2020
2021
2022
2023
2024
2025

636,998

GST registrations in 2025

+11.5%

Average annual growth rate (last 5 years)

530,383

Yearly Average

What is the
New Business Index?

We launched the Lawpath New Business Index to answer a simple but important question: how is entrepreneurship in Australia really evolving? For too long, conversations about small business have relied on lagging reports or isolated anecdotes. We wanted to give founders, policymakers, and industry leaders a clear, timely view of what’s actually happening.

Each month, the Index brings together verified data from the Australian Business Register (ABR) and ASIC with anonymised insights from thousands of registrations on the Lawpath platform. The result is a unique picture of who is starting businesses, where they are based, and which industries are driving growth.

Our goal is to make this information useful. Not just as a snapshot, but as a way to spot trends, challenge assumptions, and inspire action. When we understand the shifts happening in entrepreneurship, we can help shape a stronger, more resilient business landscape for Australia.

Statistics for the Year 2025

Key growth signals from the ABN registry and Australia’s latest new business registrations.

+39.35% YoY

NEW BUSINESSES REGISTERED (2025)

1,308,115

Total ABN registrations in 2025

(vs 938,680 in 2024)

Source: Australian Business Register – ABN Bulk Extract (data.gov.au, accessed 9 January 2026)

+14.65% YoY

NEW COMPANIES REGISTERED (2025)

364,748

Total ACN registrations in 2025

(vs 318,151 in 2024)

Source: ASIC – Company registration statistics (annual new company registrations), accessed 9 January 2026

+5.31% YoY

GST Status (2025)

636,998

Business Registered for GST

(vs 604,890 in 2024)

Source: Australian Business Register – ABN Bulk Extract (data.gov.au, accessed 9 January 2026)

Summary

The surge in business registrations in 2025 reflects a widening of participation, not just faster growth. Lawpath data shows the increase was spread across industries, age groups, and locations, with no single sector or demographic driving the uplift. Service-led industries, digital businesses, trades, and professional services all recorded higher formation volumes, while registrations continued to expand beyond CBDs into suburban and regional areas, reinforcing the decoupling of business formation from traditional office centres.

Demographically, 2025 saw strong participation from younger, first-time founders, alongside sustained activity from older cohorts establishing consulting, contracting, and asset-holding structures. This broader mix is reflected in entity choices. Most new entrants opted for simpler, more flexible structures, contributing to the sharp rise in overall ABN registrations, while company incorporations and GST registrations grew at a more measured pace. The pattern suggests founders are entering the system earlier and committing progressively, rather than upfront.

The economic backdrop helps explain this shift. Ongoing cost-of-living pressure, elevated interest rates, and modest wage growth have increased the appeal of alternative income and self-directed work. For many, starting a business in 2025 appears less about rapid scale and more about income resilience, flexibility, and optionality. The result is a broader, more diverse cohort of Australians formalising business activity as a response to economic uncertainty, rather than a narrow surge driven by optimism alone.

Australia’s business formation at a glance

A closer look at how Australia’s new businesses are taking shape, from the structures they choose to the regions driving growth.

Business Structures

931,530
Sole Traders
Category
2024
2025
YoY
Growth

States & Territories

419,023
NSW
Category
2024
2025
YoY
Growth

Suburbs

13,626
3029
POSTCODE
2024
2025
YoY
Growth

Source: Australian Business Register – ABN Bulk Extract (annual new company registrations), accessed 9 January 2026

Most Popular Structure

Sole Trader

+55% YoY, leading driver of growth
Growth Leader

Western Australia

+46% YoY, fastest growth
Metro Dominance

69%

in major metropolitan areas

Business formation breakdown by suburbs in Australia

Explore our interactive map to see where new businesses are forming across Australia, suburb by suburb.

All States
NSW
VIC
QLD
SA
WA
ACT
TAS
NT
Business Formation Rate
1000+
500-999
300-499
200-299
0-199

Australia Business Statistics

Total Active ABNs: 8,904,508
New Businesses (YTD): 1,308,115
Growth Rate (YTD): +39.36%

Australia Business Statistics

Total Active ABNs: 8,904,508
New Businesses (YTD): 1,308,115
Growth Rate (YTD): +39.36%
Business Formation Rate
1000+
500-999
300-499
200-299
0-199

Source: Australian Business Register – ABN Bulk Extract, accessed 9 January 2026

Lawpath Platform Insights

Key metrics and trends from companies registered through our platform

Age Distribution of Founders

20%
45–54 years
Age Group
2024
2025
YoY
Growth

Countries of Birth

35%
Australia
Country
2024
2025
YoY
Growth

Industry Distribution

20%
Personal Services
Industry
2024
2025
YoY
Growth
Sharpest Age Rise

18-24 yrs

+66% YoY Growth
International Diversity

65%

born outside Australia
Personal Services

+18%

+20% YoY Growth

Methodology

Each month, the Lawpath New Business Index captures how entrepreneurship in Australia is evolving.

Using verified data from the Australian Business Register (ABR) and ASIC, combined with anonymised insights from thousands of registrations processed through the Lawpath platform, we deliver a verified, month‑by‑month view of who is starting businesses, where they are based, and the industries they are choosing.

New business in 2025 was defined by broader participation and flexibility. With AI reducing the friction of starting and running a business, more Australians are entering the system earlier and with lighter structures, responding to rising living costs by creating income on their own terms.

Tom Willis

Chief Marketing Officer, Lawpath

2025

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Sole trader

As the simplest business structure, sole traders are responsible for the legal and financial aspects of their business. Sole traders are required to apply for an ABN and are taxed on their individual income.

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