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Australia has one of the most transparent and efficient regulatory environments in the world.
Through proactive reforms, the Australian Government has shown a strong commitment to providing businesses with the right conditions for growth and investment.
Best practice regulation
Australia’s business friendly regulatory environment is undisputed. A recent OECD report cites Australia’s approach to regulation as a best practice benchmark for other OECD countries.[1]
The report identified Australia as having the fewest restrictions on product markets of the 30 OECD countries. It is also considered to have the least public ownership of business and the least restrictive impact of business regulation on economic behaviour.
Regulatory standards
In fact, with regulatory procedures taking just two days, Australia has been assessed as the fastest place in the world to start a business.[2]
Businesses can invest with the confidence that Australia's regulatory systems are more transparent and secure than most other locations in the region. This provides predictability and certainty for business planning.
Unlike many countries in the region, there are no foreign exchange controls in Australia and the currency is fully internationalised.
Capital flows, profit remittances, capital repatriation, transfer of royalties and trade related payments remain largely free from regulation.
In the region, Australia enjoys the strongest credit rating from leading international rating agencies.
Transparency in government policy is considered fourth best in the region, and Australia's legal and regulatory framework has been rated one of the top nine economies in the world for encouraging enterprise competition.[3]
The Australian Government's commitment to continuous improvement in areas such as intellectual property (IP) reform and business immigration ensures a streamlined, business-focused regulatory environment.
Recent reforms focus on greater labour market flexibility, trade liberalisation, industry deregulation, reductions in tariff barriers and the development of a better tax system - resulting in strong productivity and enabling businesses to be highly responsive to economic conditions.
Corporate governance
Not only is government policy in tune with business imperatives, but so too is corporate governance. Australian corporate boards are ranked second most effective in the world for the supervision of the management of companies[4]. What’s more, Australia is ranked one in the top three countries in the world for efficiently managing shareholder value, and for the implementation of ethical practices in companies.[5]
Transparency
Australia has a highly professional and transparent public service, which is reflected in its rating in the top seven countries in the world.[6].
The inherent value system in the society promotes competitiveness and has been rated fifth most supportive of business competitiveness in the world,[7]
Intellectual property
As the knowledge economy gathers pace, a strong intellectual property framework is critical to business success.
In terms of intellectual property, Australia’s patent and copyright enforcement regime is ranked third best in the Asia-Pacific and above major developed countries like the UK, Japan, Ireland, Finland and Hong Kong.[8] In terms of adequate protection of cyber security, Australia ranks among the top eight countries globally and in the top three countries in the Asia-Pacific region.[9]
For personal security and protection of private property, Australia ranks eighth best globally and second in the region [10]
“Australian scientists have a tradition of lateral thinking, technical excellence and global outlook. The Nobel Prize-winning discovery of the bacteria which cause stomach ulcers now generates a worldwide health benefit of about US$6 billion per year. Fired up by this example, Australian biological sciences are growing exponentially, underpinned by a dynamic government keen to encourage private investment and commercial success.” Bary Marshal, Nobel Laureate FRACP FAA FRS, Clinical Professor, University of Western Australia.
View Ten Good Reasons to Invest in Australia summary.
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[1] OECD Going for Growth, 2006
[2] The World Bank Doing Business 2007
[3] IMD World Competitiveness Yearbook 2007
[4] IMD World Competitiveness Report 2007
[5] Ibid
[6] Ibid
[7] Ibid
[8] Ibid
[9] Ibid
[10] Ibid
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