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Local Government Administration in Australia - Market Research Report (2014-2029)

Callum Francis Callum Francis Melbourne, Australia Last Updated: October 2024 ANZSIC O7530

Revenue

$61.4bn

2024-25

$61.4bn

Past 5-Year Growth

Profit

$XX.Xbn

Employees

211k

Businesses

537

Wages

$XX.Xbn

Local Government Administration in Australia industry analysis

The Local Government Administration industry faced challenging conditions from 2019-20 to 2021-22 due to issues presented by the pandemic. Demand for ancillary services like gyms and swimming pools plummeted, hindering local governments' ability to generate revenue from user-based charges, like service fees and fines. Despite a recovery in demand since restrictions were lifted, local governments have continued to face intense competition from private sector competitors.

Trends and Insights

  • Rate caps in Victoria and New South Wales have limited local governments' ability to raise rates in line with inflation. Even though this has harmed revenue, operating margins have expanded due to increased government grants and outsourcing.
  • The metropolitan residential market generates most of the industry’s revenue due to mandatory council fees on properties. Urbanisation trends have meant that the metropolitan residential market has absorbed some of rural local governments’ revenue share.
  • Population densities and geographical areas largely determine local governments’ distributions, as highly populated states require more local governments to provide for their citizens. Western Australia's size and dispersed population mean that local governments are over-represented in the state.
  • Citizens have very minimal buyer power over local governments. Most constituents are locked into their local government, as changing residency to capitalise on lower fees or rates is rare.

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  • Market estimates from 2014-2029
  • Critical performance data and rankings
  • Detailed analysis of competitive forces and the external environment
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Industry Statistics and Trends

Market size and recent performance (2014-2029)

Industry revenue has declined at a CAGR of 0.2 % over the past five years, to reach an estimated $61.4bn in 2024.

Trends and Insights

The pandemic weighed on demand for ancillary services

  • The pandemic and associated restrictions led to a slump in demand for ancillary services, including swimming pools and gyms. This constrained local governments’ ability to generate revenue from user-based charges, like service fees and fines, between 2019-20 and 2021-22.
  • Additional trends and insights available with purchase
Local Government Administration in Australia
Revenue (2014-2029)
IBISWorld Logo 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 set to underpin revenue growth

  • Rising economic activity bodes well for local governments. When state and federal governments generate more tax income from households and businesses, this typically flows through to local governments through direct grants and co-funded infrastructure projects. Local governments are set to see revenue expand on the back of this increased government subsidisation.

Biggest companies in the Local Government Administration in Australia

Company
Market Share (%)
2025
Revenue ($m)
2025
City of Brisbane
3,406.6
Gold Coast City Council
2,011.0
City of Sydney
934.0

To view the market share and analysis for all 3 top companies in this industry, view purchase options.

Products & Services Segmentation

Local Government Administration in Australia
Products & Services
IBISWorld Logo 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

Local governments have been reluctant to increase household rate charges

  • Most councils’ primary revenue source is rates paid by both residential and commercial property landowners. These rates are effectively a property tax, which is paid to use the vital services councils provide, like road maintenance and waste collection.
  • More insights available in the full report

Table of Contents

About this industry

Industry definition

This industry consists of local government administrations, also known as local councils and municipalities. 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 contributionsFinesReimbursements

Companies

City of BrisbaneGold Coast City CouncilCity of Sydney

Purchase this report to view all 3 major companies in this industry.

Related Terms

URBANISATIONCBDSTATUTORY FEENET OPERATING BALANCE

Industry Code

ANZSIC 2006

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

Rate caps in Victoria and New South Wales have limited local governments' ability to raise rates in line with inflation. Even though this has harmed revenue, operating margin...

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 (2014-2023) and forecast (2024-2029)
  • Employees, including historical (2014-2023) and forecast (2024-2029)
  • Businesses, including historical (2014-2023) and forecast (2024-2029)
  • Profit, including historical (2014-2024)
  • 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 metropolitan residential market generates most of the industry’s revenue due to mandatory council fees on properties. Urbanisation trends have meant that the metropolitan...

In this chapter

  • Products & Services
  • Major Markets

Key metrics

  • Largest market segment and value in 2024
  • Product innovation level

Charts

  • Products & services segmentation in 2024
  • Major market segmentation in 2024

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

Population densities and geographical areas largely determine local governments’ distributions, as highly populated states require more local governments to provide for their ...

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 2024

Tables

  • Number and share of establishments in each region in 2024
  • Number and share of revenue each region accounts for in 2024
  • Number and share of wages each region accounts for in 2024
  • Number and share of employees in each region in 2024

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

Citizens have very minimal buyer power over local governments. Most constituents are locked into their local government, as changing residency to capitalise on lower fees or ...

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 2019-2024
  • 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 City of Brisbane has the largest market share in the industry. This is the only case where one of Australia's major cities is covered by a single local government, which ...

In this chapter

  • Market Share Concentration
  • Companies
  • Company Spotlights

Charts

  • Industry market share by company in 2020 through 2024
  • Major companies in the industry, including market share, revenue, profit and profit margin in 2024
  • Overview of City of Brisbane's performance by revenue, market share and profit margin from 2018 through 2024
  • Overview of Gold Coast City Council's performance by revenue, market share and profit margin from 2018 through 2024
  • Overview of City of Sydney's performance by revenue, market share and profit margin from 2018 through 2024

Detailed analysis

  • Description and key data for City of Brisbane, and factors influencing its performance in the industry
  • Description and key data for Gold Coast City Council, and factors influencing its performance in the industry
  • Description and key data for City of Sydney, and factors influencing its performance in the industry

External Environment

Understand the demographic, economic and regulatory factors that shape how businesses in an industry perform.   

Analyst insights

Most local governments are subject to state-based legislation, as local government organisations fall under the jurisdiction of state governments. Although each state has its...

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 (2014-2029) 
  • Assistance historical data and forecast (2014-2029) 

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

Even though employment in local governments has slightly increased, rising cost pressures have meant that the industry’s average wage has shrunk. These declining wage expense...

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 2024
  • Average sector operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2024
  • Investment vs. share of economy

Data tables

  • Cash Flow & Debt Service Ratios (2014-2029)
  • Revenue per Employee (2014-2029)
  • Revenue per Enterprise (2014-2029)
  • Employees per Establishment (2014-2029)
  • Employees per Enterprise (2014-2029)
  • Average Wage (2014-2029)
  • Wages/Revenue (2014-2029)
  • Establishments per Enterprise (2014-2029)
  • IVA/Revenue (2014-2029)
  • Imports/Demand (2014-2029)
  • Exports/Revenue (2014-2029)

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 (2014-2029)
  • IVA (2014-2029)
  • Establishments (2014-2029)
  • Enterprises (2014-2029)
  • Employment (2014-2029)
  • Exports (2014-2029)
  • Imports (2014-2029)
  • Wages (2014-2029)

Top Questions Answered

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 $61.4bn in 2024.

How many businesses are there in the Local Government Administration in Australia industry in 2024?

There are 537 businesses in the Local Government Administration industry in Australia, which has declined at a CAGR of 0.0 % between 2019 and 2024.

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 declining at a CAGR of 0.2 % between 2019 and 2024.

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, Gold Coast City Council 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.

Related Industries

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Competitors

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Complementors

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International industries

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View all industries in Australia

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.