Business Activities in 2025: Trends, Growth & Compliance Australia

Australia’s business landscape is in the midst of a transformation. In 2025, the definition of ‘business activities’ is expanding rapidly, shaped by digital innovation, shifting regulations, and evolving consumer expectations. Whether you’re a start-up or an established SME, understanding these changes is crucial—not just for compliance, but for unlocking new growth opportunities.

What Counts as Business Activity in 2025?

Traditionally, ‘business activities’ referred to the core operations that generate revenue—buying, selling, providing services, and manufacturing goods. But in 2025, the boundaries are blurring. Activities now encompass:

• Digital Operations: E-commerce sales, online consulting, digital content creation, and remote service delivery.

• ESG Initiatives: Environmental, Social, and Governance (ESG) reporting, carbon accounting, and sustainable supply chain practices.

• Data & Cybersecurity: Collecting, storing, and protecting customer data, now a regulated business activity under new privacy laws.

• AI Integration: Using artificial intelligence in operations, from customer service bots to predictive analytics.

For example, a regional retailer in 2025 might not just sell in-store but also manage an online marketplace, partner with local producers to reduce emissions, and use AI-driven inventory management—all core business activities, all subject to new regulations.

Regulatory Changes Impacting Business Activities

The Australian government has been active in updating business compliance frameworks to keep pace with innovation. In 2025, several key updates are reshaping how businesses operate:

• Privacy Act Reforms: Expanded obligations on data collection and customer consent, especially for SMEs operating online.

• Mandatory Climate Reporting: Medium and large businesses must now report on carbon emissions, with phased requirements for smaller enterprises.

• Single Touch Payroll (STP) Enhancements: The ATO’s STP 2.0 requires more granular payroll data, impacting businesses with remote or hybrid workforces.

• Digital ID Mandate: Businesses transacting online must verify customer identities using accredited digital ID platforms, aiming to reduce fraud and protect consumers.

Staying compliant means more than just ticking boxes. Businesses need robust systems for data management, reporting, and real-time monitoring—often requiring investment in new technology and upskilling staff.

Growth Opportunities: Rethinking Core Activities

While compliance is essential, the evolving nature of business activities also opens doors for growth. Here’s how Australian businesses are leveraging these changes in 2025:

• Digital Transformation: SMEs adopting cloud-based platforms, AI, and automation are seeing faster growth and improved customer retention.

• Sustainable Business Models: Companies integrating ESG goals into daily activities are accessing new markets and investment, as sustainability becomes a procurement requirement for large contracts.

• Remote Expansion: With hybrid work the new norm, businesses are expanding their talent pool beyond metro areas, tapping into regional expertise and lowering overheads.

• Customer-Centric Innovation: Personalised digital experiences, enabled by data analytics, are setting businesses apart in crowded markets.

For example, a Sydney-based consultancy that pivoted to virtual workshops during the pandemic has now expanded nationally, with 70% of its client engagements fully digital in 2025. By embracing online delivery as a core business activity, it’s lowered costs and grown revenue by 40% year-on-year.

Building a Resilient Business Activity Framework

Success in 2025 requires businesses to regularly reassess their operations and ensure their core activities align with both market demands and regulatory expectations. Practical steps include:

• Conducting annual reviews of all business activities for compliance and efficiency.

• Investing in digital literacy and cybersecurity training for all staff.

• Engaging with trusted advisors on ESG and data management requirements.

• Leveraging government grants and incentives for digital adoption and sustainability initiatives.

As the definition of ‘business activity’ continues to evolve, proactive adaptation is the key to both compliance and competitive advantage.