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Australia’s sole traders — the spirited, self-starting enterprising women and men who power our communities — are far more numerous and diverse than most policy settings recognise. New analysis by the Australian Small Business and Family Enterprise Ombudsman (91��Ƭ��), drawing on customised integrated administrative data in the ABS’ DataLab insights, reveals a vibrant enterprise cohort that has long been hiding in plain sight.

Nearly 1.7 million Australians operated as sole traders in 2021–22, underscoring the scale and significance of this enterprising cohort. In an economy where working lives have become more fluid — with Australians blending employment, enterprise and caring roles — understanding sole traders has never been more crucial. Yet despite their importance, these enterprising Australians often remain overlooked in program design, regulatory settings and economic debate.

91��Ƭ�� Ombudsman Bruce Billson says it’s time for the nation to “see” sole traders more clearly.

“Sole traders are not just economic participants — they are the beating heart of enterprise in our country. They’re innovators, problem solvers and community contributors. If we genuinely believe in a fair go, we need policies that recognise the real lives, pressures and possibilities of this dynamic group.”

“Sole traders are the unsung heroes of our economy. They are not just economic actors – they are community builders, innovators, and problem-solvers. If we truly believe in a fair go, it’s time to give sole traders the recognition and support they deserve,” Mr Billson said. 

Key Insights

• Women on the rise: Female sole traders grew by 31% over five years, more than double the rate for men. Women now make up 40% of sole traders, many balancing business with caring responsibilities.
• Cultural diversity: CALD sole traders account for 37% of the total, with strong growth in transport and warehousing – sectors critical to supply chains and the gig economy.
• Regional resilience: A quarter of sole traders operate outside major cities, providing essential services and economic activity in regional Australia.
• Emerging industries: Health care, social assistance, and transport are driving growth, meeting needs in aged care, disability support, and delivery services.

Challenges

Many sole traders carry pressures that larger businesses do not shoulder alone. In 2025, nearly half of all disputes taken to 91��Ƭ�� by sole traders in the transport, postal and warehousing sector were payment related — a stark reminder of their vulnerability in supply chains dominated by bigger players.

Others juggle long term health conditions, disability or significant caring responsibilities, all while keeping their business afloat.

Call to Action

Billson says the findings demand a policy rethink:

• Improve visibility and insights to capture the true scale and diversity of sole traders.
• Fairer payment practices to protect those most exposed to late or non-payment.
• Support for carers and those with health challenges, recognising the human realities behind the ABN.
• Inclusive programs that embrace cultural diversity and regional dynamics.
• Practical know-how and tech support to help sole traders thrive.
• Regulator evaluation to ensure compliance obligations are right-sized for micro-businesses.

“Even a sharper focus on sole traders when thinking about tax simplification and regulatory streamlining would deliver big dividends. Sole traders make up the vast majority of Australia’s businesses — the everyday enterprisers keeping local economies ticking. When such a large and dynamic part of our economy is overlooked, policy simply can’t keep pace with real working lives,” Mr Billson said.

“If Australia is truly the land of opportunity and entrepreneurship, we must ensure sole traders – in all their variety – get the recognition and support they deserve,” Mr Billson said.

The Datalab analysis includes all sole traders that the Datalab has a record of existing between 2017-18 and 2021-22. Sole traders are defined in this dataset as any ABN that appeared in the Business Longitudinal Analysis Data Environment (BLADE) Business Income Tax and Person Level Integrated Data Asset (PLIDA) Business Ownership (Sole traders) datasets. 

Additional definition notes are included for each variable in this paper. 

The following statement is provided as per ABS Datalab citation requirements: 

“The results of these studies are based, in part, on data supplied to the ABS under the Taxation Administration Act 1953, A New Tax System (Australian Business Number) Act 1999, Australian Border Force Act 2015, Social Security (Administration) Act 1999, A New Tax System (Family Assistance) (Administration) Act 1999, Paid Parental Leave Act 2010 and/or the Student Assistance Act 1973. Such data may only used for the purpose of administering the Census and Statistics Act 1905 or performance of functions of the ABS as set out in section 6 of the Australian Bureau of Statistics Act 1975. No individual information collected under the Census and Statistics Act 1905 is provided back to custodians for administrative or regulatory purposes. Any discussion of data limitations or weaknesses is in the context of using the data for statistical purposes and is not related to the ability of the data to support the Australian Taxation Office, Australian Business Register, Department of Social Services and/or Department of Home Affairs’ core operational requirements.

Legislative requirements to ensure privacy and secrecy of these data have been followed. For access to PLIDA and/or BLADE data under Section 16A of the ABS Act 1975 or enabled by section 15 of the Census and Statistics (Information Release and Access) Determination 2018, source data are de-identified and so data about specific individuals has not been viewed in conducting this analysis. In accordance with the Census and Statistics Act 1905, results have been treated where necessary to ensure that they are not likely to enable identification of a particular person or organisation.”