State Government Administration in Australia - Market Research Report (2013-2028)
Melbourne, Australia
Last Updated: October 2023
ANZSIC O7520Revenue
$365.5bn
Past 5-Year Growth
Profit
$X.Xbn
Employees
2m
Businesses
8
Wages
$XXX.Xbn
State Government Administration in Australia industry analysis
The State Government Administration industry is made up of the eight state and territory governments across Australia. Under the Australian Constitution, state and territory governments are responsible for everything that isn’t a Federal Government responsibility. This includes, but is not limited to, schools, hospitals, roads and railways. This report includes all actions that state and territory governments undertake. As a result, it double counts key information with other industries in Australia. For example, teachers employed in government schools in Australia are included as employees in both the State Government Administration industry and the Government Schools industry. State and territory governments primarily derive revenue from taxation, grants and subsidies. These account for approximately 73% of industry revenue. The industry doesn’t earn a traditional profit, but instead reports a net operating balance, which is the difference between government revenue and expenses.
Trends and Insights
- Revenue fell for the first time in almost a decade due to the impacts of the pandemic. Revenue has recovered strongly since then, but increased spending, particularly on healthcare and the environment, has resulted in a net operating deficit.
- The economic recovery from the pandemic has significantly increased taxation revenue for state and territory governments. This is attributed to rising land values, employment levels, and taxes on land, gambling, and motor vehicles among other things.
- The main source of state government income is primarily from Federal Government grants, subsidies, and taxation. The distribution of GST revenue is managed under fiscal equalisation, introducing necessary redistribution to maintain more expensive rural services.
- The dominance of certain state governments is driven by their large populations. The four largest states account for nearly 88.0% of revenue due to their high tax generation and allotment of Commonwealth grants and subsidies for infrastructure projects.
Industry Overview
Market size and recent performance (2013-2028)
Industry revenue has grown at a CAGR of 2.8 % over the past five years, to reach an estimated $365.5bn in 2023.
Trends and Insights
Healthcare expenditure has risen considerably with the pandemic highlighting areas for investment
- Over the past few years, the share of the industry revenue being allocated to the health sector has significantly increased.
- Additional trends and insights available with purchase
Source: IBISWorld
Industry outlook (2024-2029)
Market size is projected to grow over the next five years.
Trends and Insights
Improving domestic economic conditions are projected to drive revenue growth
- Expectations are high for strong growth over the short-to-medium term, driven by robust growth in GDP through 2028-29. Real GDP growth over this period is expected to average 2.6%; double the sluggish 1.3% projected for 2023-24.
Biggest companies in the State Government Administration in Australia
| Company | Market Share (%)
2024 | Revenue ($m)
2024 |
|---|---|---|
NSW Government | 106,700.0 | |
VIC Government | 89,300.0 | |
Queensland Government | 82,100.0 |
To view the market share and analysis for all 5 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 Taxation , Grants and subsidies and Goods and services. Taxation is the largest segment of the State Government Administration in Australia.
Trends and Insights
Grants and subsidies from the Commonwealth Government are the largest source of revenue
- The Federal Government collects the majority of taxes, and distributes a percentage of these taxes to state and territory governments for specific purposes like the National Health Reform Agreement, the National Housing and Homelessness Agreement, and the Quality Schools Agreement.
- More insights available in the full report
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Competitors
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Complementors
- There are no industries to display.
International industries
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Table of Contents
About this industry
Industry definition
This industry consists of all activities undertaken by state and territory governments. This includes parliament operations, commercial and business activities management, state government administration and a range of other activities. As a result, this industry double counts key statistics with other industries, such as those in the Government Schools industry.
What's included in this industry?
Financial and economic management of state governmentsLegislation enactment and enforcement Parliament operationsPolicy formulation and administrationState government administrationEducation and health servicesCompanies
NSW GovernmentVIC GovernmentQueensland GovernmentPurchase this report to view all 5 major companies in this industry.
Related Terms
PAYROLL TAXNET OPERATING BALANCELAND TAXIndustry Code
ANZSIC 7520 - State 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
Revenue fell for the first time in almost a decade due to the impacts of the pandemic. Revenue has recovered strongly since then, but increased spending, particularly on heal...
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
The economic recovery from the pandemic has significantly increased taxation revenue for state and territory governments. This is attributed to rising land values, employment...
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 main source of state government income is primarily from Federal Government grants, subsidies, and taxation. The distribution of GST revenue is managed under fiscal equal...
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
The dominance of certain state governments is driven by their large populations. The four largest states account for nearly 88.0% of revenue due to their high tax generation ...
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 main sources of revenue for state governments are grants and subsides from the Federal Government and taxation. As such, the highly populated states are able to generate ...
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 NSW Government's performance by revenue, market share and profit margin from 2017 through 2023
- Overview of VIC Government's performance by revenue, market share and profit margin from 2017 through 2023
- Overview of Queensland Government's performance by revenue, market share and profit margin from 2017 through 2023
- Overview of revenue, market share and profit margin trend for 2 additional companies
Detailed analysis
- Description and key data for NSW Government, and factors influencing its performance in the industry
- Description and key data for VIC Government, and factors influencing its performance in the industry
- Description and key data for Queensland Government, and factors influencing its performance in the industry
- Description, key data and performance trends for 2 additional companies
External Environment
Understand the demographic, economic and regulatory factors that shape how businesses in an industry perform.
Analyst insights
The Australian Constitution outlines the distinct responsibilities of the Commonwealth and state and territory governments. The Commonwealth has jurisdiction over specific ar...
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
State governments' net operating balances have shifted into a deficit over the past few years. This is largely due to increased government spending during the COVID-19 pandem...
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 State Government Administration industry in Australia in 2024?
The market size of the State Government Administration industry in Australia is $365.5bn in 2024.
How many businesses are there in the State Government Administration in Australia industry in 2023?
There are 8 businesses in the State Government Administration industry in Australia, which has declined at a CAGR of 0.0 % between 2018 and 2023.
Has the State Government Administration industry in Australia grown or declined over the past 5 years?
The market size of the State Government Administration industry in Australia has been growing at a CAGR of 2.8 % between 2018 and 2023.
What is the forecast growth of the State Government Administration industry in Australia over the next 5 years?
Over the next five years, the State Government Administration industry in Australia is expected to grow.
What are the biggest companies in the State Government Administration market in Australia?
The biggest companies operating in the State Government Administration market in Australia are NSW Government, VIC Government and Queensland Government
What does the State Government Administration in Australia include?
Financial and economic management of state governments and Legislation enactment and enforcement are part of the State Government Administration industry.
Which companies have the highest market share in the State Government Administration in Australia?
The company holding the most market share in Australia is NSW Government.
How competitive is the State Government Administration industry in Australia?
The level of competition is low and steady in the State Government Administration industry in Australia.
