New business landscape shifts as regional areas and company setups gain traction

By Newsdesk

February 27 2026
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The latest data from the January 2026 Lawpath New Business Index reveals a dynamic shift in how Australians are choosing to embark on new business ventures. While the overall number of new Australian Business Numbers (ABNs) registered in January reached 107,587, marking a 2.95% year-on-year increase, the underlying trends paint a more nuanced picture of the current business landscape.

New business landscape shifts as regional areas and company setups gain traction

One of the most significant findings from the report is the surge in new company registrations, which soared by 19.97% year-on-year to 24,563. This increase significantly outpaced the overall growth in ABN registrations, indicating a growing preference among entrepreneurs for more formal business structures. "What we’re seeing is steady overall growth, but a clear divergence in structure," explained Tom Willis, Co-Founder and Chief Marketing Officer at Lawpath. "More founders are choosing company setups."

In contrast, GST registrations saw a notable decline, dropping by 20.7% compared to the previous year, with only 27,040 new registrations. This decrease suggests that new businesses may be adopting a more cautious approach to their early-stage turnover expectations. Willis noted, "GST registrations have softened," reflecting a trend towards moderation in financial projections among new business owners.

Another key development is the geographical shift in business registrations. Regional areas accounted for 32.8% of all new registrations, translating to roughly one in three new businesses. This marks a significant move away from traditional central business district (CBD) postcodes. "Activity continues shifting away from traditional CBD postcodes," Willis highlighted, underscoring the growing appeal of regional locations for new businesses.

The data reveals a decline in registrations within major CBD areas, with Melbourne's CBD (postcode 3000) experiencing a 12.9% year-on-year drop and Sydney's CBD (postcode 2000) also seeing a decline. In contrast, outer suburban corridors in Victoria and New South Wales continued to experience growth, indicating a decentralisation of business activity. The Northern Territory emerged as a standout performer, recording the strongest state-level growth nationally.

This shift towards regional areas and outer suburbs could be attributed to several factors, including the rising cost of living and operating in major cities, as well as the increasing availability of remote work options. Entrepreneurs may be seeking more affordable and flexible environments to establish their businesses, away from the traditional urban centres.

The Lawpath report offers a comprehensive overview of these trends, providing valuable insights for aspiring entrepreneurs, policymakers, and industry stakeholders. It includes a detailed data sheet, an interactive national map, and a webpage report that delve deeper into local and structural angles.

As the business landscape continues to evolve, these findings highlight the importance of adapting to changing preferences and conditions. The rise in company registrations and the shift towards regional areas reflect a broader transformation in how Australians are approaching entrepreneurship in 2026.

For those interested in exploring these trends further, the Lawpath report serves as a valuable resource, offering tailored cuts and additional context to suit various analytical needs. As Tom Willis emphasised, "We also have a webpage report, a detailed data sheet, and an interactive national map available if you’re exploring local or structural angles."

The January 2026 Lawpath New Business Index provides a snapshot of a dynamic and evolving business environment in Australia. With more founders opting for company setups and a growing number turning to regional areas, the landscape is shifting in response to new challenges and opportunities. This transformation underscores the resilience and adaptability of Australian entrepreneurs as they navigate the complexities of the modern business world.

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