Industry spotlight: which sectors are banks backing in 2025-26?
 
With banks increasingly competing for business customers, these are the sectors leading the charge.
In some welcome good news for business owners, Australian SMEs are operating in the most business-friendly lending environment we've seen in years. In FY24, business lending by the Big Four banks grew 5.3% - more than double the pace of consumer credit. Banks are now actively competing for quality business customers, particularly in sectors aligned with national priorities.
Government policy is amplifying this momentum. The $22.7 billion Future Made in Australia package - as well as its 'Front Door' initiative for major, transformational projects - are making key industries more attractive to lenders by reducing investment risk and unlocking profitability.
For SMEs, this convergence of policy and private capital creates a unique window to secure funding, scale operations and align with long-term growth markets. Here are six sectors leading the way.
 
1. Renewable Energy and Green Technologies
Renewable energy is no longer considered a speculative bet-it's core infrastructure, and banks are treating it that way.
  • The federal government's Hydrogen Production Tax Incentive is a refundable tax offset of $2 per kilogram of eligible hydrogen produced by eligible companies.
  • A separate $7 billion Critical Minerals Production Tax Incentive offers a refundable tax offset of 10% to support critical minerals processing in Australia.
  • Banks are actively financing solar, wind, battery storage and grid projects. For example, Reuters reports the government-backed 'green bank', CEFC, committed a record $3.5 billion to clean energy projects and grid infrastructure in FY24-25.
Opportunities for SMEs:
  • Supply chain businesses in solar, wind and battery sectors.
  • On-site energy installers and consultants.
  • Energy-efficiency specialists for buildings, transport and agriculture.
  • SMEs with power purchase agreements (PPAs) or contracted revenues can access more favourable lending terms.
 
2. Critical Minerals and Advanced Manufacturing
Australia is moving concertedly to onshore high-value manufacturing and reduce reliance on overseas processing, particularly for energy-transition materials.
  • As mentioned, The Future Made in Australia plan provides targeted support for processing of 31 critical minerals including lithium, cobalt and rare earths.
  • The National Reconstruction Fund Corporation (NRFC) allocates $15 billion to strengthen onshore industrial capabilities.
Opportunities for SMEs:
  • Suppliers of components, tools or digital infrastructure to clean energy manufacturers.
  • Niche manufacturers of equipment, processing technology or industrial automation tools.
  • Cybersecurity providers serving the manufacturing sector.
 
3. Agriculture, Food Production and AgTech
According to the Australian Banking Association, agribusiness lending reached a record $131 billion in the year to September 2024, up 9.4%, signalling strong momentum and growing appetite from banks.
  • Sustainability-linked loans are becoming more common, with interest rate incentives tied to emissions reductions and regenerative farming targets.
  • While now fully committed, the government's On-Farm Connectivity Program offered up to $30,000 per farm for digital and IoT upgrades-a strong signal of likely future support for agtech adoption.
Opportunities for SMEs:
  • Banks recognise strong fundamentals and export potential among agricultural SMEs.
  • Well-managed farms and agtech providers with sustainability credentials are in a strong position to secure capital.
 
4. Infrastructure and Logistics
Banks are highly active in infrastructure lending due to the sector's long-term horizons and stable returns. Government spending is also unlocking new opportunities for SMEs, with $16.5 billion committed over 10 years to nationwide infrastructure projects, including $1.9 billion for Western Sydney road and rail infrastructure.
Opportunities for SMEs:
  • Subcontracting on major infrastructure projects.
  • Providing components, systems or labour to Tier 1 contractors.
  • Delivering specialised services across energy, construction and telecommunications infrastructure.
 
5. Technology, Fintech and Digital Innovation
As Australia's tech sector continues to mature, banks are backing firms with strong digital capabilities, recurring revenue and scalable products.
  • Tech investment by the Big Four grew 15.2% to $8.9 billion in FY24.
  • A YouGov study found that over 84% of banking executives are exploring or implementing AI tools.
Opportunities for SMEs:
  • Startup and growth-stage financing for firms with a clear path to commercialisation.
  • Asset and working capital finance for digital transformation.
  • Co-investment opportunities via government grants (e.g. Industry Growth Program).
 
6. Healthcare and Aged Care
  • NAB, Commonwealth Bank and Bank Australia have collectively provided a $260 million joint debt facility to For Purpose Aged Care, a not-for-profit aged care platform, demonstrating strong banking sector commitment to aged care financing.
  • The 2025-26 Federal Budget allocates record funding to healthcare and aged care, including $7.9 billion to bolster Medicare and bulk billing, supporting substantial sector growth.
Opportunities for SMEs:
  • Providing specialised services and products to aged care facilities and healthcare providers.
  • Partnering with large providers to support compliance with new regulations and quality standards.
  • Supplying medical equipment, pharmaceuticals or consumables tailored to sector needs.
 
For SME owners, this is a moment to act strategically. If your business operates within, or provides services to, one of these six high-priority sectors, there's no better time to secure finance, tap into incentives and position for long-term growth. Simply put, the banks are open for your business.
Please note we do not provide tax, legal or accounting advice. This article has been written for general informational purposes only, and is not intended to provide, and should not be relied on for tax, legal or accounting advice. We suggest you consult with your own tax, legal and accounting advisers before engaging in any transaction.
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