Australians Are Registering New Businesses at Record Pace — Here's What's Driving It

Australia recorded 115,949 new ABN registrations in February 2026 — up 9.3% on the same month last year. Company registrations grew even faster, jumping 16.1% to 31,325, nearly double the rate of overall business formation.

Why it matters

The data, from the Lawpath New Business Index, signals a shift in how Australians are building wealth. Starting a business has overtaken saving cash as the most popular wealth-building strategy, according to a separate Intuit survey of 1,500 Australians — with 41% planning to launch a business or side hustle this year.

What's changed is the approach. Company registrations are growing nearly twice as fast as ABN registrations overall, which suggests more founders are setting up formal structures — with limited liability and clearer separation between personal and business assets — from day one rather than starting as sole traders and converting later.

At the same time, GST registrations stayed flat in February. That's not a contradiction — it's a signal. Businesses must register for GST once turnover hits $75,000, so flat GST numbers alongside surging ABNs means a significant wave of new businesses are launching below that threshold. Founders are testing ideas before scaling.

What the numbers show

The median cost to start a business in Australia is now $20,000, according to Intuit's research — well below the cost of a typical home deposit. Most founders (75%) plan to self-fund, and two-thirds say they'll use AI tools to help launch, covering everything from market research to website setup.

Nearly one in three new businesses (32%) are being registered outside metropolitan areas. Remote work and digital-first business models continue to reduce the geographic constraints on where you can operate.

What's holding people back

The biggest barriers haven't changed: lack of capital (43%), fear of failure (39%), and limited time (24%). But 58% of aspiring founders say they feel urgency to start within the next year — and 45% say they'd launch even if conditions aren't perfect.

What to do with this

For Australians weighing up the jump, the data says three things: start with the right structure, test before you scale, and don't wait for perfect conditions.

This article is general information only and is not financial advice.