New business registrations rise in April, but GST drop points to more cautious founders

By Newsdesk

May 20 2026
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In a testament to the enduring entrepreneurial spirit in Australia, new business registrations surged in April 2026, marking a 6.41% increase compared to the same period last year. According to the latest Lawpath New Business Index, a total of 109,710 new businesses were registered throughout the month. However, a sharp decline in GST registrations presents a nuanced picture of the current business landscape, suggesting a more cautious approach among new founders.

New business registrations rise in April, but GST drop points to more cautious founders

The data reveals that while the number of new businesses is on the rise, GST registrations have decreased significantly. Specifically, GST registrations fell from 35,544 in April 2025 to 30,366 in April 2026, representing a 14.57% year-on-year decline. This divergence highlights a shift towards smaller-scale operations and a more measured entry into the business world.

Tom Willis, Co-founder & CMO of Lawpath, offered insights into this trend. "The headline number tells us business formation is still growing, but the GST data tells us how founders are approaching that growth," he explained. "Many Australians appear to be entering the market in a more measured way, setting up the foundations first before making bigger financial or operational commitments."

The figures suggest that new founders are not necessarily stepping back from entrepreneurial activity but are instead adopting a leaner, more strategic approach. For many, the initial step involves setting up an ABN or company to test a service, consulting model, or small-scale venture. GST registration, which often signifies a higher revenue threshold, may follow later as these businesses gain traction and confidence.

"We’re seeing a more deliberate founder profile emerge," Willis added. "People are still registering businesses, but many seem to be starting lean, validating demand, and holding off on larger commitments until the business case is clearer."

Further analysis of the data reveals that the top applicant industries in April were practical and service-oriented. Personal and Other Services led the way, accounting for 24.42% of applicants. This was followed by Property and Business Services at 18.43%, and Retail Trade at 11.30%. These figures indicate a strong inclination towards service-led ventures, which may require lower initial investment and offer more flexibility as founders test their business models.

The age demographics of new business applicants also provide valuable insights. The largest group was 45–54-year-olds, making up 20.52% of applicants. They were closely followed by 35–39-year-olds at 19.62% and 40–44-year-olds at 18.61%. This suggests that the current wave of new business activity is not solely driven by early-career entrepreneurs or high-growth startups. Instead, experienced Australians are stepping into the business arena, often in practical, service-based industries.

Regional areas played a significant role in the April business registration figures, accounting for 31.08% of new registrations. This underscores the fact that business creation is not confined to major CBDs but is spreading across the country. Notable growth was observed in outer suburban and regional-adjacent postcodes, including Craigieburn, Casula, Cardinia, Penrith-linked areas, and Cairns. This trend points to a broader distribution of entrepreneurial activity, with new businesses emerging outside traditional inner-city centres.

Overall, the April 2026 data presents a complex picture of the Australian business landscape. While the increase in new business registrations highlights a resilient entrepreneurial spirit, the decline in GST registrations indicates a cautious approach among new founders. Many are opting to start small, test the waters, and gradually scale their operations as they gain confidence and market insight. As Tom Willis aptly put it, "Australians are still entering the market, but many appear to be doing so before reaching the scale or revenue threshold that typically requires GST registration."

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