What’s happening?
Toowoomba has been recognised as one of Australia’s leading cities for starting a business, according to new research from Reckon.
The 2026 Startup Cities study examined the conditions facing business owners across Australia’s largest urban centres. It considered internet performance, workforce availability, living costs and the strength of each local business sector.
The results place Toowoomba among several Queensland cities performing strongly in the national comparison. They also show that regional centres can provide credible alternatives to Australia’s capital cities.
Why it matters?
Choosing where to establish a business can influence operating costs, recruitment, connectivity and access to customers. These conditions can affect a business well beyond its opening year.
Reckon’s research gives prospective owners a broader way to compare possible locations. It considers everyday pressures that may not appear in a standard business plan.
A city may offer affordable premises but lack suitable workers or reliable internet. Another may provide a large customer base while placing greater pressure on wages, rent and transport expenses.
The result suggests the city offers a competitive balance across several important measures. Its performance also adds weight to the growing role of regional Queensland in Australia’s small business sector.
Local Impact
Toowoomba’s high national ranking could support the city’s appeal among entrepreneurs, independent operators and established businesses considering regional expansion.
The city offers access to a major regional population while serving surrounding agricultural, health, education, construction and professional service sectors. Its location also connects local businesses with customers across the Darling Downs and wider southern Queensland.
Compared with larger capitals, Toowoomba may offer some owners a more manageable cost base. However, its business appeal also depends on suitable workers, digital connections and local customer demand.
The findings provide a positive national comparison for the city, but each business will face different needs. Industry, staffing requirements, supplier access and target markets remain important when choosing a location.
By the Numbers
- Toowoomba ranked third nationally in 2026, climbing three places from sixth in Reckon’s 2025 study.
- The city achieved an overall score of 64.93. Internet speed scored 75.24, while cost of living received 67.10.
- Reckon compared 17 socioeconomic factors across Australia’s 50 largest cities, with Queensland securing five top 10 positions.
Zoom In
Internet performance was Toowoomba’s highest-scoring category, giving local businesses a strong base for online sales, communication and remote work.
The city also performed well for cost of living, which can affect both employers and workers. Lower household costs may help businesses attract staff without matching the expenses associated with larger capitals.
Toowoomba received 61.19 for business conditions and 54.58 for its talent pool. These results were lower than its internet and cost-of-living scores, highlighting areas that could influence future rankings.
Workforce availability remains particularly important as local businesses compete for skilled employees. Continued training, education and worker retention could help improve Toowoomba’s position.
Reckon Chief Executive Officer Sam Allert said business owners must consider several conditions outside their direct control.
“At Reckon, we understand that running a business is challenging enough without needing to consider factors often beyond your control, such as the quality of the talent pool, business landscape, internet speed, and cost of living,” Mr Allert said.
“That’s why we continue to update this study. We know how often the business landscape changes, and we want small business owners to have all the information they need to make confident, well-informed decisions about where to start their businesses.”
Mr Allert said the three years of research had also shown the increasing competitiveness of regional centres.
“For example, 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.”
Zoom Out
Queensland claimed five positions in the national top 10, with Brisbane leading the overall rankings.
Brisbane rose from eighth place in 2024 to second in 2025 before taking first place in 2026. Its result reflected strong internet performance, business activity and workforce diversity, despite its higher living costs.
Perth slipped from first to second, while Adelaide moved from third to fourth. Melbourne experienced a larger fall, moving from fourth in 2025 to tenth in 2026.
The Victorian results showed a broader decline across the three-year study. Six Victorian cities appeared in the top 10 during 2024, but only Melbourne remained there in 2026.
Geelong fell from first place in 2024 to 25th in 2026. Warrnambool also dropped sharply, moving from tenth to 44th during the same period.
Sydney led several individual measures, including educated workers, business density and residents without long-term health conditions. However, it recorded the highest monthly mortgage and transport costs.
Other cities faced different pressures. Ballina recorded the lowest median income, while Wollongong had an unemployment rate of 6 per cent. Port Macquarie recorded a labour force participation rate of 51.3 per cent.
Ballarat had the lowest weekly rent, while monthly mortgages in Kalgoorlie-Boulder were more than $4,000 below Sydney’s figure. Mackay recorded the highest median worker income, and Warrnambool had the lowest unemployment rate.
“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,” Mr Allert said.
“Doing so can help your business have the best opportunity to develop and grow in the long-term.”
What To Look For Next?
Reckon plans to continue updating the study as business conditions, living costs and workforce availability change across Australia.
Future results will show whether Toowoomba can maintain its top-three position. Improvements to its talent pool and wider business conditions could strengthen the city’s national standing.
For local operators, the ranking may also encourage closer discussion about skills, training and the support needed for continued business growth.
