What’s Happening?
Townsville has joined Australia’s leading locations for new businesses in Reckon’s latest Startup Cities report. The study compared major urban areas through workforce quality, business conditions, internet performance and living costs. Queensland recorded the strongest state presence, while Townsville made a notable gain among the leading cities.
Why It Matters?
Location can influence access to skilled staff, reliable internet and manageable household costs for owners and workers. Reckon’s comparison gives founders a broad benchmark before deciding where to establish or expand an operation. However, the report is a statistical guide and does not provide financial advice.
Local Impact
Townsville’s result places the city beside capitals and regional centres competing for new business activity. Its strongest result came from living costs, helping offset lower outcomes for workforce depth and business conditions. For local operators, the profile suggests an affordable base, although recruitment may require more planning.
By the Numbers
The national comparison shows how strongly Townsville and Queensland performed:
- Townsville ranked eighth with an index score of 62.42, after climbing seven positions from 2025.
- Queensland secured five national top-ten places: Brisbane first, Toowoomba third, Gladstone fifth, Mackay sixth and Townsville eighth.
- Reckon assessed 17 socioeconomic factors across Australia’s 50 largest cities, grouped into four weighted categories.
Zoom In
Townsville’s cost-of-living score of 74.54 was its strongest category. Internet speed followed at 67.81, ahead of business conditions at 60.10. The talent pool score was lower at 46.01, making workforce access the city’s weakest category in the report. This mix shows why affordability and internet performance were central to Townsville’s overall result.
Reckon also singled out Townsville and Gladstone as Queensland cities that had risen since 2025. Their movement added to the report’s broader finding that regional centres are becoming more attractive for new businesses.
Zoom Out
Brisbane topped the national ranking after placing eighth in 2024 and second in 2025. Its internet, business conditions and talent results outweighed its high living costs. Perth fell one place to second, while Toowoomba climbed three places to third. Adelaide slipped one place to fourth. Gladstone, Mackay, Launceston, Townsville, Darwin and Melbourne completed the top ten.
Melbourne dropped six places, leaving Victoria with one top-ten city compared with six in 2024. Geelong fell from first nationally in 2024 to 25th in 2026. Warrnambool slid from 10th to 44th over the same period. Reckon linked both declines to leaner infrastructure and higher business costs.
Results also varied sharply across individual measures. Sydney led for educated workers, people without long-term health conditions and business density. Yet it also had the highest monthly mortgages and transport costs. Ballina recorded the lowest median income, while Wollongong’s unemployment rate reached 6 per cent. Port Macquarie had the lowest labour force participation, at 51.3 per cent.
Ballarat had the lowest weekly rent, while Kalgoorlie-Boulder mortgages were more than $4,000 below Sydney’s. Mackay recorded the highest median income, while Warrnambool had the lowest unemployment rate.
Reckon combined public datasets with responses from small business owners. Its category weightings came from a survey conducted in 2024. The company noted that national internet speeds rose after wholesale upgrades in September 2025. It said the 2026 figures should not be treated as proof of local infrastructure investment.
Reckon chief executive Sam Allert said the three-year comparison showed regional areas were gaining appeal.
“By comparing results from 2024 through to 2026, we learned that regional areas are becoming increasingly established as attractive business hubs. 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.”
He said owners should keep track of conditions affecting their location and operations.
“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. Doing so can help your business have the best opportunity to develop and grow in the long-term.”
What To Look For Next?
Townsville’s lower talent score leaves the clearest area for improvement, while its living-cost result provides a strong base. A future Reckon update could show whether Townsville can hold its top-ten place or climb further. Changes in workforce access, internet results and business survival rates would influence any movement.
