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Australian industries record profit surge in 2021-22

28 May '23

1 min read

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Australia's operating profits rose significantly in fiscal 2021-22, driven by fewer COVID-19 restrictions and higher demand for goods and services, according to the Australian Bureau of Statistics.
Despite increased input costs and decreased government subsidies, most industries recorded higher profits.
The profit growth encompassed businesses of all sizes.

Annual operating profits in Australia saw a significant increase in fiscal 2021-22, largely due to fewer domestic restrictions related to COVID-19, the Australian Bureau of Statistics (ABS) has announced.

Robert Ewing, ABS head of business indicators, attributed the surge in profitability to a higher demand for goods and services, resulting in businesses passing increased costs onto consumers. "After slower profit growth across the earlier COVID-19 pandemic affected years, almost all industries recorded higher operating profits in 2021-22," Ewing said in a press release.

This robust growth was observed despite increased input costs for many businesses and a cutback in government COVID-19 subsidies.

Wholesale trade recorded a growth of Au$9.8 billion in operating profit during the period under review.

The construction industry witnessed a decrease in operating profit by Au$4.4 billion, and the Electricity, gas, water, and waste services industries registered a Au$1.6 billion decrease. Both sectors were impacted by rising commodity prices and supply chain issues.

"Businesses of all sizes saw an increase in income and operating profit in 2021-22," added Ewing.

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