Local Government Administration in Australia - Market Research Report (2013-2028)
Melbourne, Australia
Last Updated: May 2023
ANZSIC O7530Revenue
$56.9bn
Past 5-Year Growth
Profit
$XX.Xbn
Employees
195k
Businesses
537
Wages
$XX.Xbn
Local Government Administration in Australia industry analysis
The Local Government Administration industry includes municipal councils in Australia. The industry has three primary means of generating income: rates charges, user charges, including statutory fees and fines, and government funding. Revenue has been growing at an average annualised 1.3% over the past five years and is expected to total $56.9 billion in 2022-23, when revenue will jump by an estimated 1.0%. An expanding number of households has provided a steady source of revenue in recent years, as councils charge rates on a per-property basis. Property rates and charges are the primary source of local government income. Nonetheless, segment revenue growth has been stifled by caps on the rise of rates and charges.Revenue from state and federal government grants has ramped up in recent years. Significant investment in roads and other public infrastructure has encouraged funding from higher forms of government. Climbing capital outlays have driven higher depreciation expenses, contributing to net operating balances tumbling as a share of revenue in recent years. Rises in general and recurring funding have been subdued. This has been reflected in modest industry employment growth, as councils have struggled to fund additional staff.The industry is on track to expand steadily over the coming years. Ongoing infrastructure investment is anticipated to benefit many councils. For example, part of the Federal Government's $10.0 billion in infrastructure expenditure over the 10 years through 2029-30 is expected to be managed by local governments. Even so, a tightening of some state and federal budgets is expected to limit general funding for councils, constraining revenue growth. Industry revenue is forecast to grow at an annualised 2.5% over the five years through 2027-28 to total $64.3 billion.
Trends and Insights
- Climbing household numbers and population has provided local governments with additional opportunities to generate revenue. However, caps on rate hikes have still subdued potential revenue growth.
- Local government areas generate revenue from a variety of services. The proportion of revenue generated by each category can differ based on a council's location and population density.
- The distribution of local governments throughout Australia largely reflects the distribution of the population. States with larger populations require a greater number of local governments to provide services.
- Buyer power in the industry is low. All citizens of Australia are required to pay rates to their local council limiting buyer power. However, some citizens may choose to move to a different local council area with lower rates.
Industry Overview
Market size and recent performance (2013-2028)
Industry revenue has grown at a CAGR of 1.3 % over the past five years, to reach an estimated $56.9bn in 2023.
Trends and Insights
Caps on rate hikes can significantly influence revenue
- Most revenue is generated through rates and charges, the largest component of which is a general rate for providing services.
- Additional trends and insights available with purchase
Source: IBISWorld
Industry outlook (2024-2029)
Market size is projected to grow over the next five years.
Trends and Insights
A forecast improvement in Australian economic conditions is expected to underpin revenue growth
- Rising economic activity bodes well for local governments as state and federal governments generate more tax income from households and businesses. This typically flows through to local governments, either through direct grants or co-funded infrastructure projects.
Biggest companies in the Local Government Administration in Australia
| Company | Market Share (%)
2023 | Revenue ($m)
2023 |
|---|---|---|
City of Brisbane | 2,277.1 | |
City of Gold Coast | 1,707.9 | |
City of Sydney | 569.3 |
To view the market share and analysis for all 4 top companies in this industry, view purchase options.
Products & Services Segmentation
Source: IBISWorld
Industry revenue is measured across several distinct product and services lines, including Rates and charges, Grants and Fees and user charges. Rates and charges is the largest segment of the Local Government Administration in Australia.
Trends and Insights
The Minister for Local Government caps rate rises, constraining revenue generated from rates and charges
- The primary source of revenue for most councils is rates paid by both residential and commercial property landowners. These rates are effectively a property tax, which is paid to provide services councils provide, like maintaining roads, public open spaces, waste collection and treatment.
- More insights available in the full report
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Competitors
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Complementors
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International industries
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Table of Contents
About this industry
Industry definition
This industry consists of local government administrations, also known as local councils. Units of local government authorities that are mainly involved in activities other than government administration are included in industries appropriate to their activity.
What's included in this industry?
Rates and chargesGrantsFees and user chargesDonations and contributionsFinesReimbursementsCompanies
City of BrisbaneCity of Gold CoastCity of SydneyPurchase this report to view all 4 major companies in this industry.
Related Terms
URBANISATIONCBDSTATUTORY FEENET OPERATING BALANCEIndustry Code
ANZSIC 7530 - Local Government Administration in Australia
Performance
Get an indication of the industry's health through historical, current and forward-looking trends in the performance indicators that make or break businesses.
Analyst insights
Climbing household numbers and population has provided local governments with additional opportunities to generate revenue. However, caps on rate hikes have still subdued pot...
In this chapter (4)
- Current Performance
- Outlook
- Volatility
- Life Cycle
Key metrics
- Annual Revenue, Recent Growth, Forecast, Revenue Volatility
- Number of Employees, Recent Growth, Forecast, Employees per Business, Revenue per Employee
- Number of Businesses, Recent Growth, Forecast, Employees per Business, Revenue per Business
- Total Profit, Profit Margin, Profit per Business
Charts
- Revenue, including historical (2013-2022) and forecast (2023-2028)
- Employees, including historical (2013-2022) and forecast (2023-2028)
- Businesses, including historical (2013-2022) and forecast (2023-2028)
- Profit, including historical (2013-2023)
- Industry Volatility vs. Revenue Growth
- Industry Life Cycle
Detailed analysis
- Trends in supply, demand and current events that are driving current industry performance
- Expected trends, economic factors and ongoing events that drive the industry's outlook
- Key success factors for businesses to overcome volatility
- How contribution to GDP, industry saturation, innovation, consolidation, and technology and systems influence the industry's life cycle phase.
Products and Markets
Learn about an industry's products and services, markets and trends in international trade.
Analyst insight
Local government areas generate revenue from a variety of services. The proportion of revenue generated by each category can differ based on a council's location and populati...
In this chapter
- Products & Services
- Major Markets
Key metrics
- Largest market segment and value in 2023
- Product innovation level
Charts
- Products & services segmentation in 2023
- Major market segmentation in 2023
Detailed analysis
- Trends impacting the recent performance of the industry's various segments
- Innovations in the industry's product or service offering, specialization or delivery method
- Key factors that successful businesses consider in their offerings
- Buying segments and key trends influencing demand for industry products and services
Geographic Breakdown
Discover where business activity is most concentrated in an industry and the factors driving these trends to find opportunities and conduct regional benchmarking.
Analyst insights
The distribution of local governments throughout Australia largely reflects the distribution of the population. States with larger populations require a greater number of loc...
In this chapter (1)
- Business Locations
Charts
- Share of revenue, establishment, wages and employment in each region
- Share of population compared to establishments in each region in 2023
Tables
- Number and share of establishments in each region in 2023
- Number and share of revenue each region accounts for in 2023
- Number and share of wages each region accounts for in 2023
- Number and share of employees in each region in 2023
Detailed analysis
- Geographic spread of the industry across Asia Pacific, and trends associated with changes in the business landscape
- Key success factors for businesses to use location to their advantage
Competitive Forces
Get data and insights on what's driving competition in an industry and the challenges industry operators and new entrants may face, with analysis built around Porter's Five Forces framework.
Analyst insights
Buyer power in the industry is low. All citizens of Australia are required to pay rates to their local council limiting buyer power. However, some citizens may choose to move...
In this chapter (4)
- Concentration
- Barriers to Entry
- Substitutes
- Buyer & Supplier Analysis
Key metrics
- Industry concentration level
- Industry competition level and trend
- Barriers to entry level and trend
- Substitutes level and trend
- Buyer power level and trend
- Supplier power level and trend
Charts
- Market share concentration among the top 4 suppliers from 2018-2023
- Supply chain including upstream supplying industries and downstream buying industries, flow chart
Detailed analysis
- Factors impacting the industry’s level of concentration, such as business distribution, new entrants, or merger and acquisition activity.
- Key success factors for businesses to manage the competitive environment of the industry.
- Challenges that potential industry entrants face such as legal, start-up costs, differentiation, labor/capital intensity and capital expenses.
- Key success factors for potential entrants to overcome barriers to entry.
- Competitive threats from potential substitutes for the industry’s own products and services.
- Key success factors for how successful businesses can compete with substitutes.
- Advantages that buyers have to keep favorable purchasing conditions.
- Advantages that suppliers have to maintain favorable selling conditions.
- Key success factors for how businesses can navigate buyer and supplier power.
Companies
Learn about the performance of the top companies in the industry.
Analyst insights
The Local Government Administration industry has no major players. Local government areas are often allocated based on population size making it difficult for a single operat...
In this chapter
- Market Share Concentration
- Companies
- Company Spotlights
Charts
- Industry market share by company in 2019 through 2023
- Major companies in the industry, including market share, revenue, profit and profit margin in 2023
- Overview of City of Brisbane's performance by revenue, market share and profit margin from 2017 through 2023
- Overview of City of Gold Coast's performance by revenue, market share and profit margin from 2017 through 2023
- Overview of City of Sydney's performance by revenue, market share and profit margin from 2017 through 2023
- Overview of revenue, market share and profit margin trend for one additional company
Detailed analysis
- Description and key data for City of Brisbane, and factors influencing its performance in the industry
- Description and key data for City of Gold Coast, and factors influencing its performance in the industry
- Description and key data for City of Sydney, and factors influencing its performance in the industry
- Description, key data and performance trends for one additional company
External Environment
Understand the demographic, economic and regulatory factors that shape how businesses in an industry perform.
Analyst insights
The Local Government Act 1993 underpins industry regulation. The act forms the basis for regulating the role and limitations of local government operations.
In this chapter
- External Drivers
- Regulation & Policy
- Assistance
Key metrics
- Regulation & policy level and trend
- Assistance level and trend
Charts
- Regulation & Policy historical data and forecast (2013-2028)
- Assistance historical data and forecast (2013-2028)
Detailed analysis
- Demographic and macroeconomic factors influencing the industry, including Regulation & Policy and Assistance
- Major types of regulations, regulatory bodies, industry standards or specific regulations impacting requirements for industry operators
- Key governmental and non-governmental groups or policies that may provide some relief for industry operators.
Financial Benchmarks
View average costs for industry operators and compare financial data against an industry's financial benchmarks over time.
Analyst insights
Rising capital expenditure by the government has lifted depreciation costs. Limited funding has hindered small-scale infrastructure work by councils, leading to private firms...
In this chapter
- Cost Structure
- Financial Ratios
- Key Ratios
Key metrics
- Profit margin, and how it compares to the sector-wide margin
- Average wages, and how it compares to the sector-wide average wage
- Largest cost component as a percentage of revenue
- Industry average ratios for days' receivables, industry coverage and debt-to-net-worth ratio
Charts
- Average industry operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2023
- Average sector operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2023
- Investment vs. share of economy
Data tables
- Cash Flow & Debt Service Ratios (2013-2028)
- Revenue per Employee (2013-2028)
- Revenue per Enterprise (2013-2028)
- Employees per Establishment (2013-2028)
- Employees per Enterprise (2013-2028)
- Average Wage (2013-2028)
- Wages/Revenue (2013-2028)
- Establishments per Enterprise (2013-2028)
- IVA/Revenue (2013-2028)
- Imports/Demand (2013-2028)
- Exports/Revenue (2013-2028)
Detailed analysis
- Trends in the cost component for industry operators and their impact on industry costs and profitability
Key Statistics
Industry Data
Data Tables
Including values and annual change:
- Revenue (2013-2028)
- IVA (2013-2028)
- Establishments (2013-2028)
- Enterprises (2013-2028)
- Employment (2013-2028)
- Exports (2013-2028)
- Imports (2013-2028)
- Wages (2013-2028)
Methodology
How are IBISWorld reports created?
IBISWorld has been a leading provider of trusted industry research for over 50 years to the most successful companies worldwide. With offices in Australia, the United States, the United Kingdom, Germany and China, we are proud to have local teams of analysts that conduct research, data analysis and forecasting to produce data-driven industry reports.
Our analysts start with official, verified and publicly available sources of data to build the most accurate picture of each industry. Analysts then leverage their expertise and knowledge of the local markets to synthesize trends into digestible content for IBISWorld readers. Finally, each report is reviewed by one of IBISWorld’s editors, who provide quality assurance to ensure accuracy and readability.
IBISWorld relies on human-verified data and human-written analysis to compile each standard industry report. We do not use generative AI tools to write insights, although members can choose to leverage AI-based tools within the platform to generate additional analysis formats.
What data sources do IBISWorld analysts use?
Each industry report incorporates data and research from government databases, industry-specific sources, industry contacts, and our own proprietary database of statistics and analysis to provide balanced, independent and accurate insights.
Key data sources in Australia include:
- Australian Bureau of Statistics
- Australian Taxation Office
- Australian Securities & Investments Commission
Analysts also use industry specific sources to complement catch-all sources, although their perspective may focus on a particular organization or representative body, rather than a clear overview of all industry operations. However, when balanced against other perspectives, industry-specific sources provide insights into industry trends.
These sources include:
- Industry and trade associations
- Industry federations or regulators
- Major industry players annual or quarterly filings
Finally, IBISWorld’s global data scientists maintain a proprietary database of macroeconomic and demand drivers, which our analysts use to help inform industry data and trends. They also maintain a database of statistics and analysis on thousands of industries, which has been built over our more than 50-year history and offers comprehensive insights into long-term trends.
How does IBISWorld forecast its data?
IBISWorld’s analysts and data scientists use the sources above to create forecasts for our proprietary datasets and industry statistics. Depending on the dataset, they may use regression analysis, multivariate analysis, time-series analysis or exponential smoothing techniques to project future data for the industry or driver. Additionally, analysts will leverage their local knowledge of industry operating and regulatory conditions to impart their best judgment on the forecast model.
IBISWorld prides itself on being a trusted, independent source of data, with over 50 years of experience building and maintaining rich datasets and forecasting tools. We are proud to be the keystone source of industry information for thousands of companies across the world.
Learn more about our methodology and data sourcing on the Help Center.
Frequently Asked Questions
Unlock comprehensive answers and precise data upon purchase. View purchase options.
What is the market size of the Local Government Administration industry in Australia in 2024?
The market size of the Local Government Administration industry in Australia is $56.9bn in 2024.
How many businesses are there in the Local Government Administration in Australia industry in 2023?
There are 537 businesses in the Local Government Administration industry in Australia, which has declined at a CAGR of 0.0 % between 2018 and 2023.
Has the Local Government Administration industry in Australia grown or declined over the past 5 years?
The market size of the Local Government Administration industry in Australia has been growing at a CAGR of 1.3 % between 2018 and 2023.
What is the forecast growth of the Local Government Administration industry in Australia over the next 5 years?
Over the next five years, the Local Government Administration industry in Australia is expected to grow.
What are the biggest companies in the Local Government Administration market in Australia?
The biggest companies operating in the Local Government Administration market in Australia are City of Brisbane, City of Gold Coast and City of Sydney
What does the Local Government Administration in Australia include?
Rates and charges and Grants are part of the Local Government Administration industry.
Which companies have the highest market share in the Local Government Administration in Australia?
The company holding the most market share in Australia is City of Brisbane.
How competitive is the Local Government Administration industry in Australia?
The level of competition is low and steady in the Local Government Administration industry in Australia.
