Uncovering Australia’s middle-market
Globally, BDO has a strong affiliation with the dynamic mid-market.
In Australia, it’s no different. It’s where we fit and have strong business relationships in this space. Our relationships are peer-to-peer, respectful, innovative and always growth-orientated.
Yet, the mid-market is a mystery and not universally defined. Generally, they are growing businesses, dynamic, fast-moving, entrepreneurial in nature, exploring new regions and new markets, embracing technology and finding acquisitions.
There is a lack of clear consensus as to what counts as the ‘middle’ and how to define the ‘market’.
- The Australian Bureau of Statistics (ABS), for example, defines medium sized businesses as those who employ between 20 and 200 employees. No parameters for revenue, however, are included in their definition. In 2016 the ABS reported that based on employment size, there are 51,024 medium sized businesses in Australia.
Others have claimed that the middle market is based on annual turnover, with definitions ranging anywhere between $5 million and $500 million.
In contrast to the ABS the ATO defines businesses size by their income. Their definitions divide Australian businesses into seven size categories that range from ‘loss’ on the lowest end of the spectrum to ‘very large’ on the highest end. Businesses earning between $10 million and $250 million are defined as being ‘medium to large’ in size. Businesses in this category contribute close to one fifth of net tax (18%). Medium to large sized businesses have been defined as the middle market in this report, as they are the definable ‘middle’ of the net tax market.
If you would like to find out more, please download our report on the Australian mid-market
Australian mid-market report