18 August 2026
More Australian companies are choosing private capital over listing on the ASX, avoiding the costs, compliance obligations and scrutiny associated with being publicly listed, according to new research from Chartered Accountants Australia and New Zealand (CA ANZ), the University of Melbourne and the University of Queensland.
The Australian Financial Reporting Benchmarks 2026 report found that growing access to private funding is making it easier for businesses to raise capital without the reporting, governance and disclosure requirements of a public listing. The shift is reflected in the number of ASX-listed companies, which fell 12 per cent between 2018 and 2024 from 2,012 to 1,773.
CA ANZ Reporting & Assurance Leader, Amir Ghandar, said the findings reflect a changing relationship between companies and Australia's public markets.
"A decade ago, businesses looking for significant growth capital often saw a public listing as the next step. Today, many can access substantial private funding without entering public markets," Mr Ghandar said.
"While private markets play an important role in supporting business growth, strong public markets remain critical to the health of the economy."
"Public markets promote transparency, accountability and investor confidence through reporting, governance and disclosure requirements. A continued shift away from public markets could have implications for transparency and limit opportunities for investors to participate in the growth of Australian businesses."
Dr Mark Wallis from the University of Queensland said the decline in listed companies extends beyond Australia.
"This trend is not unique to Australia. Similar declines in listed company numbers have been observed in New Zealand, the United Kingdom and the United States," Dr Wallis said.
"That suggests there are broader forces at work, including the growth of private capital, mergers and acquisitions and changing company preferences about how they raise funds."
"Further research will help identify the most significant drivers behind this trend in Australia and better understand what it means for investors, capital markets and economic growth," Dr Wallis said.
Mr Ghandar said the findings should prompt discussion about whether Australia's market settings are keeping pace with the changing ways companies raise capital.
"The challenge is finding the right balance between encouraging companies to list and preserving the standards that make Australia's capital markets trusted and competitive."
Mr Ghandar said policymakers should also consider reforms that improve the attractiveness and efficiency of public markets.
"High-quality, machine-readable financial information reduces friction for investors, improves comparability and makes Australian market data easier for global investors to access and use," he said.
"If Australia wants deep, diverse and internationally competitive capital markets, we need a clear understanding of how the market is changing and what those changes mean for companies, investors and the broader economy."
About Chartered Accountants Australia and New Zealand
Chartered Accountants Australia and New Zealand represents more than 140,000 financial professionals, supporting them to make a difference to the businesses, organisations and communities in which they work and live. Chartered Accountants are known as Difference Makers. The depth and breadth of their expertise helps them to see the big picture and chart the best course of action.
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