What’s Happening?
Mackay has been named one of Australia’s leading cities for starting a business in Reckon’s 2026 Startup City report.
The annual study compared major cities using workforce access, business conditions, internet performance and living costs. Mackay performed well due to its available workforce, internet access and relatively manageable household expenses.
The findings also placed Mackay among several regional centres competing strongly with Australia’s capital cities.
Why It Matters
A business location can affect operating costs, workforce access and the ability to remain viable over time. Mackay’s results suggest the city offers several benefits for founders, particularly when recruiting employees.
However, the report also found that maintaining a business beyond its early years remains difficult. Mackay’s business conditions result was its weakest score across the four categories.
Reckon CEO Sam Allert said regional areas were becoming more established as attractive places for businesses.
“By comparing results from 2024 through to 2026, we learned that regional areas are becoming increasingly established as attractive business hubs,” he said.
“We also found that previously top-scoring cities like Perth and Geelong are starting to lose some ground, while cities such as Brisbane, Toowoomba or Launceston are beginning to surge ahead.”
Local Impact
Mackay’s workforce results provide a positive sign for local founders seeking skilled employees and a broad pool of potential hires. Its labour force participation was among the factors supporting the city’s strong talent result.
Internet performance and living costs also strengthened Mackay’s overall position. These factors can affect business productivity, staff recruitment and everyday operating expenses.
The weaker business conditions result shows that access to workers does not guarantee long-term success. Local owners must still account for competition, changing costs and the difficulty of surviving beyond the first three years.
By the Numbers
- Mackay scored 63.95 out of 100, placing sixth nationally after rising from seventh place in 2025.
- Its talent pool scored 77.36, supported by 2.7 per cent unemployment and 70.7 per cent workforce participation.
- Mackay scored 53.00 for business conditions, with 50.5 per cent of businesses surviving their first three years.
The city also scored 62.75 for internet performance and 63.28 for living costs.
Zoom In
Reckon assessed Australia’s 50 largest cities using 17 socioeconomic factors across four main categories. The company conducted the same study in 2024 and 2025, allowing year-on-year comparisons.
The talent category considered median weekly incomes, demographics and education levels using Australian Bureau of Statistics data. It measured each city’s access to a capable and available workforce.
Business conditions covered business density, growth and survival rates using government figures. Internet performance considered connection speed and latency, with benchmarking data supplied by Ookla.
Living costs included median rents, mortgage repayments, commuting expenses and childcare fees. Government and industry publications provided the figures used for this category. All category and index scores were calculated out of 100. Reckon used consistent methods across the three reports, making yearly comparisons reasonable.
Internet speeds increased nationally following NBN Co’s “Accelerate Great” wholesale upgrade in September 2025. Mortgage costs also used a lower assumed interest rate than the 2025 report.
The complete methodology and national results are available through Reckon’s 2026 Startup City report.
Allert said owners should continue monitoring conditions that could affect where and how their businesses operate.
“Whether you own a start-up or an established business, it is more important than ever that business owners keep track of the evolving climate and any factors that could impact how and where their business operates,” he said. “Doing so can help your business have the best opportunity to develop and grow in the long term.”
Zoom Out
Queensland claimed five positions in the national top 10, more than any other state. Brisbane overtook Perth to become Australia’s highest-ranked start-up city.
Toowoomba placed third, followed by Gladstone in fifth and Mackay in sixth. Townsville completed Queensland’s strong result by placing eighth.
Launceston recorded the largest improvement, climbing 10 positions to seventh. Gladstone rose nine places, while Townsville improved by seven.
Melbourne was Victoria’s only city in the top 10, falling six positions to tenth place.
What To Look For Next?
Future reports may show whether Mackay can convert its workforce strength into better long-term business survival.
Employment levels, internet performance and household expenses could also affect the city’s position in future national rankings.
