Australia is a developed nation with a very agreeable climate. The economy is diverse and offers opportunities in a variety of industries.
Australia is a developed nation with a very agreeable climate. The economy is diverse and offers opportunities in a variety of industries.

Economy of Australia

A wealthy country, Australia has a market economy, a high GDP per capita, and a relatively low rate of poverty. In terms of average wealth, Australia ranked second in the world after Switzerland from 2013 until 2018. In 2018, Australia overtook Switzerland and became the country with the highest average wealth. Australia’s poverty rate increased from 10.2% to 11.8%, from 2000/01 to 2013. It was identified by the Credit Suisse Research Institute as the nation with the highest median wealth in the world and the second-highest average wealth per adult in 2013.

In 2018, Australia overtook Switzerland and became the country with the highest average wealth

The Australian economy is dominated by its service sector, comprising 62.7% of the GDP and employing 78.8% of the labour force in 2017. East Asia (including ASEAN and Northeast Asia) is a top export destination, accounting for about 64% of exports in 2016. Australia has the tenth-highest total estimated value of natural resources, valued at Int$19.8 trillion in 2019. At the height of the mining boom in 2009–10, the total value-added of the mining industry was 8.4% of GDP. Despite the recent decline in the mining sector, the Australian economy has remained resilient and stable and had not experienced a recession from 1991 until 2020.

Australia Economic Indicators

Australia GDP Growth Rate

Australia’s economy is dominated by the service sector (65 percent of total GDP). Yet its economic success in recent years has been based on the mining (13.5 percent of GDP) and agriculture (2 percent of GDP) as the country is a major exporter of commodities. Other sectors include: manufacturing (11 percent) and construction (9.5 percent).

Australia Interest Rate

In Australia, interest rates decisions are taken by the Reserve Bank of Australia’s Board. The official interest rate is the cash rate. The cash rate is the rate charged on overnight loans between financial intermediaries, is determined in the money market as a result of the interaction of demand for and supply of overnight funds.

Australia Inflation Rate

In Australia, the most important categories in the consumer price index are housing (22.3 percent of the total weight), food and non–alcoholic beverages (16.8 percent), recreation and culture (12.6 percent), transport (11.6 percent), furnishings, household equipment and services (9.1 percent), alcohol and tobacco (7.1 percent), health (5.3 percent) and insurance and financial services (5.1 percent). Clothing and footwear, education and communication account for remaining 10.2 percent of total weight.

Australia Unemployment Rate

In Australia, the unemployment rate measures the number of people actively looking for a job as a percentage of the labour force.

Australia Government Dept to GDP

Generally, Government debt as a percent of GDP is used by investors to measure a country ability to make future payments on its debt, thus affecting the country borrowing costs and government bond yields. Australia recorded a government debt equivalent to 45.10 percent of the country’s Gross Domestic Product in 2019.

Australia Balance of Trade

In 2017 and 2018 Australia recorded trade surpluses mostly due to rise in a resource exports like natural gas, metal ores and minerals, coal, coke and briquettes and rural goods such as meat and cereals. The biggest trade surpluses are recorded with China, Hong Kong and Japan and New Zealand and the biggest trade deficits with the United States, Singapore, South Korea, Malaysia and Thailand. .

Australia Currency Dollar

The AUDUSD spot exchange rate specifies how much one currency, the AUD, is currently worth in terms of the other, the USD.

Australia Stock Market

The S&P/ASX 200 is the most important stock market index which tracks the performance of 200 large companies based in Australia. It is a market-capitalization weighted and float-adjusted index. The index has a base value of AUD3133.3, equal to the value of the All Ordinary Shares as of March 31, 2000.

Australia Ease of Doing Business

Australia is ranked 14 among 190 economies in the ease of doing business, according to the latest World Bank annual ratings. The rank of Australia improved to 14 in 2019 from 18 in 2018. The Ease of doing business index ranks countries against each other based on how the regulatory environment is conducive to business operationstronger protections of property rights. Economies with a high rank (1 to 20) have simpler and more friendly regulations for businesses.

Australia Business Confidence

National Australia Bank’s index of business confidence rose to -4 in September 2020 from -8 in the previous month, pointing to the highest reading since June, amid improving business activity as the economy opens up. Confidence rose in all industries except finance, business & property services which was flat. Business conditions also strengthened to levels not seen since the COVID-19 pandemic brought a nationwide lockdown (0 vs -6 in August). All three sub-components rose, with trading (6 vs -2) and profitability (2 vs -3) in positive territory while the employment index remaining negative (-6 vs -14) as businesses were not yet ready to add new positions. Meanwhile, forward orders improved (-7 vs -11) while capacity utilization ticked higher to 76.9 percent. “While the improvement in conditions and confidence in the last few months has been promising, it is important to remember that in a levels sense, things are still weak,” said Alan Oster, NAB Group chief economist.

The NAB monthly survey of business confidence is based on a telephone survey of around 600 small, medium and large size non-agricultural companies. The Survey measures the expectations of business conditions for the upcoming month and is a simple average of trading, profitability and employment indices, reported by respondents for their company. The indices are calculated by taking the difference between the percentage of respondents nominating good or very good, or a rise and those nominating poor or very poor, or a fall.

Australia Consumer Confidence

Consumer Confidence in Australia increased to 105 points in October from 93.80 points in September of 2020.

The Consumer Sentiment Index is based on a survey of over 1,200 Australian households. The Index is an average of five component indexes which reflect consumers’ evaluations of their household financial situation over the past year and the coming year, anticipated economic conditions over the coming year and the next five years, and buying conditions for major household items. The index scores above 100 indicate that optimists outweigh pessimists.

Australia Bank Lending Rate

Bank Lending Rate in Australia remained unchanged at 6.51 percent in October from 6.51 percent in September of 2020.

In Australia, the bank lending rate refers to major banks overdraft lending rate to small and medium businesses.

Australia Credit Rating

Standard & Poor’s credit rating for Australia stands at AAA with negative outlook. Moody’s credit rating for Australia was last set at Aaa with stable outlook. Fitch’s credit rating for Australia was last reported at AAA with negative outlook. DBRS’s credit rating for Australia is AAA with stable outlook. In general, a credit rating is used by sovereign wealth funds, pension funds and other investors to gauge the credit worthiness of Australia thus having a big impact on the country’s borrowing costs.

Taxation in Australia

Corporate tax	Personal Income Tax	VAT or sales tax	Social Security Rate For Companies	Social Security Rate For Employees
30% (standard rate) 28.5% (reduced rate)	0-45%	10% (standard rate) 0% (essential items)	9,5%	2%

How to Start a Business in Australia

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