AUSTRALIA

Australia’s political stability, transparent regulatory system, and sound governance frameworks underpin its economic
resilience.

Ranked in the global top five on the Index of Economic Freedom, Australia’s effective governance provides multinationals
with a safe, secure business environment.

Australia offers:

 a business environment that is ranked 15th out of 190 economies for ease of doing business
 a robust regulatory system noted for its stable institutional frameworks and strong finance and banking
regulations
 competitive rates for office space and the remuneration of professionals
 a quality of life that is rated the seventh highest in the world.

 Our supportive business environment

 Free, stable and prosperous, Australia is a secure base for your new venture or expanding your

existing business.

 In Australia, fair and effective governance is seen as the foundation for economic growth and a free

society. Our transparent and dependable institutions give businesses the confidence their investments

will be protected. We are one of only nine countries to hold a AAA credit rating.

 It’s easy to do business in Australia

 Australia has a clear set of rules – but we aren’t over governed. We have the processes in place to

make it easier to unleash the entrepreneurship of private enterprise and grow your business. Just ask

the OECD, which noted in 2021 that ‘Australia offers a favourable administrative and regulatory

framework for entrepreneurship, especially regarding the costs of starting a business’.

Australia welcomes foreign investment. It has helped build Australia's economy and will
continue to enhance the wellbeing of Australians by supporting economic growth and innovation
into the future.
Does Australia have FDI?

Australia continues to be a highly attractive destination for foreign direct investment (FDI) – which is when an
overseas company sets up, buys or increases its stake in an Australian business. The total stock of FDI in Australia
has risen, on average, by about 8% per year since 2000. It reached A$1 trillion in 2020

Why is Australia attractive for FDI?

 Australia welcomes foreign investment, with the overwhelming majority of investment being approved. A strong
and secure economy creates a positive investment environment that ensures Australia remains an attractive
destination for foreign investment
Why is Australia investing in India?
The Morrison Government is investing over $280 million to boost cooperation with India, to further grow our
economic relationship and support jobs and businesses in both countries. India is already an important
economic and security partner in the Indo-Pacific.

Can a foreigner invest in a business in Australia?

If you already have business skills you might be eligible for a Business Innovation and Investment provisional
visa. This provisional visa is for people with business skills. It lets you operate a new or existing business in
Australia

Which Australian industries attract foreign direct investment?

Global investment powers Australian mining, manufacturing and finance
 35.3% of FDI (worth A$360 billion) is invested in our mining industries.
 12.9% of FDI (worth A$131 billion) in invested in Australian manufacturing.
 11.1% of FDI (worth A$113 billion) is invested in financial services and insurance

Process To Starting a Mining Company in Australia

The mining industry may soon become one of the most significant drivers of the Australian economy. While
Australia was not among the most severely affected countries by the global financial crisis. It has been suffering
from a recession in recent years. The unemployment rate in Australia is currently 6.2%. Many believe that starting
a mining company could be one of the best ways to solve this problem.
Creating a mining company can be pretty challenging. In addition to raising capital and hiring staff, you
need to understand where to start with your business plan. Are you stranded on starting a mining company
in Australia?
The business of mining is way too different from  Car Insurance , Real Estate , or running a Restaurant  business.
You need not worry; we have created a guide for you that will help you start the company.

Steps for Starting a Mining Company in Australia

Starting a mining business is profitable, but a lot of work has to be put into it. Take the time to do your research,
make the right decisions, and have a successful business. Here are the steps of starting a mining company in
Australia:

Plan your mining business

To start a mining business, you must create a plan. During this phase, employees and contractors will build upon
their ideas from the brainstorming sessions and create more detailed plans for how the company will operate. You
must make sure that everyone understands what needs to be done during this phase and works together towards the
same goals. Once your mining business has been successfully created, it’s time to get started on planning its
operations.

Decide the business structure

You will have to decide on your new company’s type of business structure. The most popular forms are sole
proprietorship, partnership, corporation, and limited liability company (LLC). You will have to decide which one is
best for your mining business.

Form your mining business into a Legal Entity

Suppose you want to start a mining business; doing so as a limited liability company (LLC) or a corporation will
give you legal protections. And this would keep your tax obligations simple. This means that if something goes
wrong with your business or someone sues you, your assets, like your home or car, are safe because they can’t be
used to pay off business debts or judgments against your company.

Register your mining business for Taxes

If your mining company is an LLC, you have to register it with the state where you are based. You also have to
apply for an EIN if you will be employing other workers in your mining business. If you are going to be operating
as a corporation, you will have to register your business. And get a business tax ID or say Business TFN.

Open a Business Bank account & credit card

To keep your personal and business finances separate, open up a business bank account and a credit card. All the
expenses related to the running of the mining company would be paid through it.

Set up Accounting for your mining business

To help track how much money is coming into your mining company and how much has been spent. How much
profit has been made at any particular period? You need accounting software such as QuickBooks or any other
software. This will help you keep the business operation incomes and expenses to account for the profits or losses
realized.

Get the necessary permits and licenses for your mining business

If you want to start a mining company in Australia, you must apply for permits and licenses. For the business
which is a partnership or a limited liability company, you need an Australian Business Number (ABN). And if it is
a sole proprietorship, you need an Australian Company Number (ACN).
Register ABN
 
Register a Company
 
Hire a Lawyer
 
Get Legal Advice
Get All Legal Solutions Today!

Get mining business insurance

As a mining business owner, one of the most important things you must do first is get insured. Insurance will help
you with any mishap that may occur in the future or any accident that comes along while doing your business. It
will help you with all the problems in case of an accident during the working of your business. You need insurance
so that there is no problem in the future, and if something terrible happens, you won’t suffer because of it.

Define your mining business brand

To build a strong presence in the industry, you need to define your brand and establish it in the market. Your brand
will help you stand out from your competitors in the market. Your brand is one of the most critical aspects of your
business, which is why it’s essential to define it early on. When determining your brand identity, think about how
you want people to perceive your business, what makes your business unique from others like it, and what you
want people to associate with your business.
Create your mining business Website

A significant part of starting a mine is promoting it to potential customers and investors. Website marketing has
become the most potent form of marketing today. The easiest way to market your business is via the internet;
creating your Mining Business Website can boost your business tremendously.

Set up your business Phone System

Setting up a phone system for your business is one of the first things you should do as a new mining company.
Your phone number is the first thing people see when searching for a mining company online. You must have a
unique and catchy number so people will remember it and use it in their search queries.

Find Suppliers

You will need to find suppliers for most of the services you will be offering. There are many different types of
suppliers that you can choose from depending on what kind of service you want to provide. Some suppliers will
only offer their services in certain areas, while others may offer them all over Australia.

Calculate Overheads

Before running any business, you must calculate all your overheads before beginning to ensure that everything runs
smoothly once the company is up and running.

Calculate your mining business startup cost

Your startup cost may vary depending on the size of your operations and the nature of your product. Even if you
are operating a small-scale operation, you will still need some capital to start up and keep things running smoothly.

Choose a location for Starting a Mining Company

The location of your mining company should be the next step. You will want to find a place where there is demand
for your product or service and where it is legal to mine for that product or service. It would help if you also
looked for areas with a good infrastructure surrounding them because once your company gets started, you’ll need
to transport your products elsewhere where they can be sold at a profit and used by consumers.

Obtain financing

As much as investors can quickly provide the finance you need to start your mining company, one thing you should
keep in mind is that there are several other business opportunities available for investors, so you have to convince
them that yours is better. When you can do this, getting financed will not be a problem.

Test the waters

To determine if it is worth starting a mining company, you have to test-run it. This will help you know if indeed
you will be making money from it or not. You can test run by finding out what people want and selling it at an
affordable price.

Get your equipment, tools, and employees ready

Once you are registered, you will need to get all the mining equipment and tools ready before starting a mining
operation. You must also hire employees that are dedicated to working on the site. The number of employees
required will depend upon the size of your mining site and the amount of work that needs to be done on it.

Start marketing your mining company

You cannot run a successful business without marketing your products or services. Therefore, you must create a
strong marketing team to help promote and sell your products. Some of the marketing strategies you should
consider include creating an informative website, using social media platforms, and advertising your products on
relevant forums and blogs.

Consider risk factors involved in the business

The truth is that working and operating a mining company can be risky considering the various hazards such as
collapsing mine shafts, explosives, and accidents that may occur while doing business. Therefore, you should take
time and consider the different risks involved with this type of business before investing your money in it. You
must consult with insurance experts to help you find appropriate insurance coverage for your mining company.

Choose a lawyer

Look for a lawyer willing to give you a flat fee quote, so you don’t get surprises later. In addition to charging
hourly rates or flat fees, some lawyers also work on contingency, which means they take a percentage of any
proceeds or settlements you receive. Choose someone who is easily accessible and responsive when you need it.
Please find out your lawyer’s communication style and make sure it suits you well

There are currently hundreds of grant programs, loan programs, and assistance programs available from the Australian government. Many of these
grant and loan programs are specific to the businesses in the Mining Industry. In addition, private funding sources want to work with startups within the
Mining Industry as well. Be sure that you use all of these sources of funding to get the best funding results for your small business.

Launching your own small business doesn’t have to be difficult. Regardless of your experience or how far you’ve gotten in the start-up process,
AustraliaStartups is ready to offer you the support and guidance you need to get your business off the ground.

Legislation, regulations and guidelines

Australia continues to streamline business, policy and investment processes that, in combination with a proven record of environmental, social, financial, legal and
political stability, make Australia the smart, secure choice for exploration and project investment.

This page provides information on federal, state and territory legislation, policies and guidelines for mining and exploratory projects.

Contents
 Legislation

 Exploration reporting

 Foreign investment

 Environmental policy

 Taxation

Legislation
Commonwealth legislation
The Australian Commonwealth government administers policy for mineral and petroleum exploration in Australia's offshore areas. Responsibility for onshore
legislation lies with Australia's states and territories.

 Offshore mineral legislation (additional information here)

 Offshore petroleum legislation

The Energy Council Cabinet Reform Committee (ENCRC) replaced the former Council of Australian Governments (COAG) Energy Council following the
disbandment of COAG in May 2020. Energy Ministers work closely with Energy Consumers Australia, and have oversight of the following energy market
institutions responsible for the operation of national energy markets:

 the Energy Security Board (ESB)—whole of system oversight through transition

 the Australian Energy Market Commission (AEMC)—the rule maker and market development adviser
  the Australian Energy Market Operator (AEMO)—the system operator

 the Australian Energy Regulator (AER)—the economic regulator and rule enforcer.

Like many countries, Australia reviews foreign investment proposals on a case-by-case basis to ensure they are not contrary to the national interest. See Foreign
Investment Review Board for more information.

State and territory legislation

New South Wales
 All legislation

 Applying to explore or mine in NSW

Northern Territory
 All legislation

 Mining, petroleum and geothermal legislation

 Forms, procedures and guidelines

 Guide to mineral exploration in the Northern Territory

Queensland
 Legislation, applications and compliance

South Australia
 All legislation

 Mining legislation

 Exploration Licensing

 Petroleum information

Tasmania
 Mineral Resources Development Act 1995

 Mineral Resources Regulations 2016

 Mining (Strategic Prospectivity Zones) Act 1993

Victoria
 Energy and earth resources legislation

Western Australia
 Mining legislation and compliance

 Resources safety legislation and compliance

 Petroleum and geothermal exploration legislation and schedules

Exploration reporting
The Chief Government Geologists, through the Government Geoscience Information Committee, have developed a national requirements standard for resources
exploration reporting.

 Australian requirements for the submission of digital exploration data (v4.5) - Feb 2018 [PDF 2813KB] .

Mineral exploration reporting template software

Software to facilitate the creation of geochemical, drilling and other point located data in the required data templates has been developed to assist industry clients
comply with the reporting guidelines.

 Mineral Reporting Template (MRT) software v1.4.2 - October 2012 [ZIP 6.8MB]

 Data templates and examples - October 2012 [ZIP 365KB]

Commonwealth offshore reporting guidelines

Offshore minerals reporting regulations can be found on the Department of Innovation, Industry and Science webpage: Offshore mineral legislation and Offshore
Minerals (Data Lodgement and Reporting) Regulations 1996 [PDF 31KB].

Further information on offshore petroleum reporting guidelines can be found on the National Offshore Petroleum Titles Authority (NOPTA) website.

State and territory reporting guidelines and systems

Each jurisdiction has its own set of guidelines tailored to its legislation. State and territory mineral exploration guidelines are based on the national guidelines

New South Wales

 Exploration reporting

 DIGS online database

Northern Territory
 Mineral exploration guidelines

 Mineral exploration reports (MEX)

 Energy Exploration Reports

Queensland
 Reporting guidelines

 Use GSQ Open Data Portal to search for reports and data

South Australia
 Reporting guidelines

 Exploration reports: Use SARIG to search the SAMREF database

Tasmania
 Reporting guidelines

 Use TIGER to search for reports and data

Victoria
 Reporting guidelines

 Exploration reports

Western Australia
 Reporting guidelines

 WAMEX online database

Foreign investment
The Foreign Investment Review Board (FIRB) is a non-statutory body established in 1976 to advise the Treasurer and the Government on Australia's foreign
investment policy and its administration.
Like many countries, Australia reviews foreign investment proposals on a case-by-case basis to ensure they are not contrary to the national interest. The review
framework is well-established, practical and non-discriminatory. Most proposals are considered within 30 days and Australia rarely rejects or imposes conditions
on foreign investment business proposals. Since 2001 only three resources-related business proposals have been rejected.

You can find out more by going to the Foreign Investment Review Board website.

Environmental policy
The Environment Protection and Biodiversity Conservation Act 1999 (the EPBC Act) is the Australian Government's central piece of environmental legislation. It
provides a legal framework to protect and manage nationally and internationally important flora, fauna, ecological communities and heritage places - defined in the
EPBC Act as matters of national environmental significance. The EPBC Act enables the Australian Government to join with the states and territories in providing a
truly national scheme of environment and heritage protection and biodiversity conservation.

The Department of the Environment designs and implements the Australian Government's policies and programmes to protect and conserve the environment,
water and heritage and promote climate action. You can find out more about the EPBC Act on their website.

The EPBC Act provides a legal framework to protect and manage matters of national environmental significance. The EPBC legislation applies to any activity that
is likely to have a significant impact on identified matters of national significance. EPBC approval may be required for certain actions or activities that affect
Australia's environment, for example when mining or exploration activities may impact on water resources.

Taxation
Those currently investing, or considering investing, in minerals and petroleum exploration and development in Australia, should be considering the taxation
implications. The Australian Taxation Office (ATO) has a considerable amount of related material available.

Minerals specific taxation

The state and Northern Territory  governments collect royalties on mineral production in return for granting the right to private businesses to exploit mineral
resources within their jurisdictions. With limited exceptions, these take the form of output-based royalties imposed as a percentage of the value of production or,
less commonly, the volume of production. Royalty payments are a deduction for company income tax purposes.

Royalty systems on minerals across Australian states and the Northern Territory vary by both jurisdiction and commodity.

Mining regulation 
The Australian Government does not regulate WHS in the mining industry. WHS in the mining industry is regulated by states and territories. 

A summary of the WHS regulatory framework for mining is set out below. 

Jurisdiction  Mining legislative framework 

New South Wales  WHS requirements for mining are regulated through the: 

 Work Health and Safety (Mines and Petroleum Sites) Act 2013  
 Health and Safety (Mines and Petroleum Sites) Regulation 2014  
More information about NSW’s WHS regulatory framework for mining is available at the NSW Resources Regulator. 

Victoria  WHS requirements for mining are regulated through: 

 Chapter 5.3 of the Occupational Health and Safety Regulations 2017   

More information about Victoria’s WHS regulatory framework for mining is available at WorkSafe Victoria. 

Queensland  WHS requirements for mining are regulated through the: 

 Mining and Quarrying Safety and Health Act 1999  

 Mining and Quarrying Safety and Health Regulation 2017  
 Coal Mining Safety and Health Act 1999 
 Coal Mining Safety and Health Regulation 2017  
More information about Queensland’s WHS regulatory framework for mining is available at the Queensland Government website. 

Note: This legislation is under review. Information about the review is available at the Department of Resources website. 
Western Australia  WHS requirements for mining are regulated through the: 

 Mines Safety and Inspection Act 1994 

 Mines Safety and Inspection Regulations 1995  
More information on Western Australia’s WHS regulatory framework for mining is available at the Department of Mines, Industry,
Regulation and Safety. 

South Australia  WHS requirements for mining are regulated through: 

 Chapter 10 of the Work Health and Safety Regulations 2012 (SA) 

More information is available at SafeWork South Australia. 

Tasmania  WHS requirements for mining are regulated through the: 

 Mines Work Health and Safety (Supplementary Requirements) Act 2012  

 Mines Work Health and Safety (Supplementary Requirements) Regulations 2012  
More information about Tasmania’s WHS regulatory framework for mining is available at WorkSafe Tasmania. 

Australian Capital WHS requirements for mining are regulated through the: 

Territory 
 Work Health and Safety Act 2011 
 Work Health and Safety Regulation 2011 

Northern Territory  WHS requirements for mining are regulated through the: 

 Work Health and Safety (National Uniform Legislation) Act 

 Chapter 10 (Mines) of the Work Health and Safety (National Uniform Legislation) Regulations 
More information is available at the Northern Territory Worksafe website. 

What does a small mining company/ supplying

business entail? 
A mining business works with extracting natural rocks and minerals from the Earth that is used for commercial purposes. A small mining
company or supplying business uses a small workforce with basic tools to extract the minerals and supplies to a few partners/local retailers. 

Mining businesses can commercially provide minerals to energy production companies, jewellery businesses, etc. 

Getting started: The Pre-Planning Steps

To have a successful mining business, it is necessary to understand the industry itself. Although it may be difficult to begin directly mining a
region, you can offer a number of services to start. These services include consultancy, transportation, machine sales, risk assessment
services, equipment leasing and safety services. Accordingly, it is necessary to understand these specific areas of the mining industry.

This means having practical, theoretical and technical expertise required for the business. There are a number of ways to build these skills. A
few of these educational channels include tertiary classes, as well as online tutorials.

Further, given the volatile nature of the mining industry, it is necessary to stay up to date with the news and trends occurring. This will be a
significant portion of the continued learning that will be necessary to succeed.

Research 
Further, given the volatile nature of the mining industry, it is necessary to stay up to date with the news and trends occurring. This will be a
significant portion of the continued learning that will be necessary to succeed.
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Create a Business Plan

Creating a business plan is essential for your long-term success. Business plans should cover the direction of your business, competitors in your area or
sector, funding options, costs and expenses as well as projected profits and growth plans. This is a document that you can produce to investors to secure
funding. 

Find out how to write your own business plan here.

Your business plan can also help you answer the following
questions:
 What kind of business am I establishing?
You will need to determine if your small mining business will mine a variety of resources, only minerals, only gems, a certain resource, etc. 

 What kind of customers can I attract?

Your small mining business will require a customer base in order for commercial success. If you are planning to mine gemstones, your potential clients
could range from local gemstone-dealers and jewellery stores to individual gemstone enthusiasts. 

Acquire Funding
You can organise your spending by creating an estimate of your monthly, quarterly and annual profits. This can help you in determining if you will need to
acquire additional funding, either through personal savings, loans, or investors to fund your business before your profits are able to cover your operation
costs. 

Establish Your Business

Although establishing your mining business can be intimidating, a simple checklist can ease this process. In Australia, you should prioritise the following:

1. Registering your business

Your mining business, like all businesses in Australia,  needs to be registered. In order to register your business you will need to apply for an Australian
Business Number (ABN) using your business name to be able to operate in Australia. An ABN also enables you to apply for the goods and services tax
(GST) concessions.

2. Open a business bank account to separate your funds

3. Seek legal assistance to create legal contracts to use with your clients
For further information, please see the Australian Business License and Information Service to learn about the laws you need to follow based on the
specifics of your business.

How to Choose the Best Business Structure 

The success of your business can also be dependent on the structure you choose for your business. Some business structures can provide risk-protection and
tax-benefits whereas some might create higher tax-liability than other structures. 

 Sole trader: This can be a low-cost option for an individual running the business. A sole-trader and their company are considered the same
entity and hence they are responsible for the company’s debts and obligations.
  Partnership: A partnership is controlled by two or more people who also share the debts and obligations of the company.
 Company: A company has a complex structure and can legally sue and be sued. In other words, it is a legal entity in itself. Companies are
incorporated under the Corporations Act 2001 (Cth) and are governed by the Australian Securities and Investments Commission (ASIC).
You can decide your business structure based on some of the following factors:

1. Ownership: If you want to co-own the company with another partner, you can register as a partnership. Here, the obligations of the company
will be divided out between the partners.
2. Taxation: In Australia a company has a lower tax rate than the highest tax bracket for individuals. Therefore, registering as a company can
have lower tax obligations. However, companies might have higher regulatory costs.

Sourcing the right employees for your business

Your company will also require employees to manage clients, load, store and ship goods. Employees might also be required for book-keeping, cleaning,
packaging, etc. You need to determine if you want to hire casual, part-time or full time employees for your business.

 Part-time employees: Part-time employees generally work for less than 38 hours a week. They can still receive some employment benefits,
such as sick-leaves or annual leaves, on a pro-rata basis. 
 Full-time employees: Full-time employees work consistently for fixed pay, subject to change on employer discretion. Generally full-time
employees receive a wide variety of employment benefits such as sick leaves, health insurance, etc. 
 Independent Contractors: Independent contractors are freelancers or individuals who offer their services for a fixed period of time to a
company for a fixed price. 
Here is a webinar on how to hire the right employees for your business.

https://www.youtube.com/watch?v=kYV6NYJETBI&ab_channel=Lawpath

Advertise your business

Now that you have set up your business and hired a group of talented employees, you will also need to set up a marketing team to advertise and market
your warehouse to potential clients. Your marketing team would run outreach programs, use social media or new outlets to advertise your products and
services to the right audience. With effective marketing you can quickly create a loyal customer base. 

Mining Supply Business and the Legalities 

Once you are set to start your business, you will need to apply for a mining licence depending on the region where your mining business will be
operational. 

 Queensland: In Queensland, you need to apply for a mining lease. Before the lease is granted, you will need to meet approval requirements,
such as environmental approvals, native title and Aboriginal cultural heritage agreements, private landowners compensation and addressing any
objections to the application. 
 Western Australia: In Western Australia, you need to apply for a mining licence subject to approval on other requirements such as 
 Tasmania: You can apply for a mining licence based on the mineral you are hoping to extract. 
 New South Wales (NSW): In NSW, you can apply for an exploration or mining lease. If you apply for a mining lease you must demonstrate
that the area has viable resources in the area and that you have the funding to conduct mining.
 Victoria: You can apply for an exploration licence, a mining licence, a prospecting licence, retention licence or buy a miner’s right to conduct
any mining activity in Victoria.
 South Australia: You can apply for a mining licence or exploration licence based on your needs in South Australia. An exploration licence
does not grant mining rights.
So, depending on your area of operation, you can apply for licences and permits. You can only begin mining activity upon approval of your mining permit.
This can be a complicated process. Talking to a lawyer can help streamline this process. 

PEST Analysis of Australia: A Brief Look into Politics, Economy, Society

and Technology
FEB 20, 2019 BY KIESHA FRUE
 This PEST analysis of Australia identifies critical impacts of four macro-environmental factors: politics, economy, society, and technology,
although it can be extended to a PESTLE analysis if one chooses so. What happens in Australia easily affects other countries around the
world, especially regarding politics and technology. You’ll want to continue reading to see how this information could impact you too.

Contents
 Political factors affecting Australia: Transparency from political parties means happy citizens
 The economic climate of Australia: A easy choice for investors of land and companies
 Social factors of Australia: Three types of social classes
 Technological influences of Australia: No more encryption
 Conclusion

Political factors affecting Australia: Transparency

from political parties means happy citizens
Queen Elizabeth II remains the head of state for Australia. Although she’s the leader of the country’s constitutional monarchy, the Queen of
Australia is just a figurehead; the governors represent her at the state level while the governor-general represents her at the federal level.
The country’s figurehead (the Prime Minister) sits at the head of the Australian government.

The country is connected to several organizations, including the OECD, World Trade Organization, G20, and Commonwealth of Nations.
Despite having a close relationship with the United States, Australia is frequently criticized by neighboring countries, including New Zealand
and the UN. The former isn’t a fan of Australia’s deportation laws, while the latter sees the country as a failure for poor treatment of refugees
and for not upholding human rights, including the rights of indigenous people.

The country’s business climate makes it a hot contender for investments. The political situation is rather stable, allowing investors to feel
confident in their purchases. As for economic challenges, the country’s government addresses this, as well as policy changes. In fact, recent
economic policy changes have driven Australia to be one of the top-rated countries in the region.

The government is rather transparent in their reasons for such changes, making it rather effective and highly regarded among citizens.

The economic climate of Australia: A easy choice for

investors of land and companies
Australia holds the 13th spot for the largest economy worldwide. In 2017, the economy grew more than 2 percent. Although any growth is a
good sign, the country expected more. Despite this, household incomes, business investments, and inflation will pick up sooner than later.

People are also opting for “pure investments”. This is an option for purchasing off-land property in the country for optimal prices. This is
another promising area for investors; they use a “money down” payment to buy land early, then sell it later for a greater profit. The currency
exchange rate favors outside countries, including America, which makes investing into Australian soil and businesses an easy choice.

Companies also use Australia as a headquarters for foreign companies. Primarily Asian operations. Australia remains a low-cost location for
business relocations even today.

Problems stem from the company tax rates; it’s 30 percent. This doesn’t affect all businesses though; if a company has a turnover of less
than $25 million, they qualify for the lower tax bracket.

Australia imports several key products, ranging from pharmaceuticals to copper to oil. These products are imported from countries all over
the world. The cost was over $221 billion USD.

Social factors of Australia: Three types of social

classes
Next up in the PEST framework is social factors. Australia has a smaller population than most other countries. As of 2018, it’s nearly 23
million. The average life expectancy differs by men and women; men average around 80 years and women 84 years.

Australia is multicultural and multiracial. Despite having a mass immigration policy adopted back in World War II, the discussion of refugees
and immigration is a touchy topic for citizens.

There are three social classes in Australia: the working, middle, and upper class. What separates these classes? This is debatable. The
upper class is typically 5-10 percent with property, capital, and ownership being their main sources of income. The middle class is the people
who don’t have manual jobs. And more than 20 percent of the population identify as manual workers (the working class).
The upper class has expensive homes, cars, and clothes. However, the middle class can easily have these same objects. It may all just be
mimicry though. For the middle class, this doesn’t hurt them much, but the working class can become indebted by trying to appear more
wealthy. Classes are also identified by mannerisms, entertainment, and sports participation.

Australia puts emphasis on higher education. You can choose between universities and TAFE (institutions of technical and further
education). Going to either of these institutions is also affected by your wealth and social status.

Technological influences of Australia: No more

encryption
Australia is known for its technological innovations. It adopts new technology more frequently than countries in similar standing. The
purchasing of new technology is expected to reach $65 billion this year.

There’s trouble regarding technological policies and research. Most research and development falls towards national research centres, while
university researchers must struggle over funding resources. The government funds over 50 percent of all the research and development;
industries contribute around 40 percent.

Then there’s the new law passed by government officials regarding encryption. The government has passed a controversial law to allow
police and security to access anyone’s encrypted messages.

Encryption is supposed to hide information from anyone but the intended target or user. In this case, the government is forcing a “back door”
in the name of “protection”. The government believes this will help solve cases relating to terrorism and criminal exploits. Users and security
experts don’t agree.

The “back door” use isn’t confined to just police and governmental parties. Once created, anyone who wishes to gain access can exploit this
back door for their own personal gain. As such, shared information becomes vulnerable to anyone and everyone.

To citizens, this is an invasion of privacy. It also means products using end-to-end encryption, like WhatsApp and Signal, are expected to
change for this policy. People outside of Australia fear similar policies will be adopted into their home countries too.

Conclusion
Australia is a beautiful country with ample options for outside investors. Economic growth is on the rise, although slowly. Even though the
country is quickly adaptable and transparent with policy changes, it doesn’t necessarily listen to the gripes of the people as demonstrated in
this PEST example. The new law affecting encryption and data privacy is deemed a step back by most citizens and security experts. That
won’t stop the change though, as the government feels it’s doing what’s best for the citizens.

PESTEL analysis of Australia

This detailed PESTEL analysis of Australia aims to address some of the political, economic, social, technological,
environmental, and legal factors that affect Australia today. Australia is one of the best countries to live in the world. It is also
a powerful country and plays a considerable role in the global economy and politics.

Political environment in Australia

Australia is a constitutional monarchy with Charles III (the King of the United Kingdom and the other Commonwealth realms)
as the head of state. The King of Australia is represented by the Governor-General at the federal level and by the Governors
at the state level. The Prime Minister is the head of government of Australia.

Canberra is the capital of Australia and Sydney is the largest city in the country. The total area of Australia is 7,741,220 square
kilometres that makes it the 6th largest country in the world (O’Neill, 2023). The neighbouring countries are Papua New
Guinea, Indonesia, East Timor, the Solomon Islands, Vanuatu, and New Zealand.
 

Australia is a member of the Commonwealth of Nations, OECD, G20 and the World Trade Organisation. It maintains a very
close association with the United States. It has a safe and stable political environment.

However, the country drew a lot of criticisms over a number of issues in the past. For instance, its deportation laws were
criticised by Justice Minister of New Zealand. Similarly, the UN criticised Australia for its failures in areas such as the
protection of human rights, Indigenous rights, and the treatment of refugees.

Economic environment in Australia

The next element to address in the PESTEL analysis of Australia is the economic environment. Australia is the 13 th largest
economy in the world.  Its GDP is expected to reach $1571.00 billion US dollars by the end of 2023 (Trading Economics,
2023).

All companies in Australia are subjected to a federal tax rate of 30% on their taxable income. However, small businesses pay
a reduced tax rate of 25% (PwC, 2023). Individual tax rates vary depending on the income of the individuals.

Australia is one of the wealthiest countries in the world, with a strong and vibrant economy. It is a major exporter of
commodities, including minerals, agricultural products, and natural gas. It is also a major importer of consumer goods,
technology, and services.

Vehicles, machinery, mineral fuels including oil, refined petroleum, delivery trucks, electrical machinery and equipment,
pharmaceuticals, medical apparatus, precious metals, plastics, and furniture are some of the key imports of Australia.

On the other hand, iron ore, gold, coal, natural gas, beef, wheat, financial services, educational services, and copper are some
of Australia’s top exports. Its major trading partners are China, Japan, Germany, India, USA, Thailand, and South Korea (OEC,
2023).

Australia is a popular tourist destination, with visitors from all over the world flocking to the country to experience its unique
culture, stunning scenery, and vibrant cities. It is home to some of the world’s most iconic attractions, such as the Sydney
Opera House, the Great Barrier Reef, and the Uluru-Kata Tjuta National Park. There are also many smaller attractions, such as
beaches, national parks, and wildlife reserves.
 

 Social environment in Australia

Australia is one of the best countries to live in the world in terms of wealth, education, health, and quality of life. Compared
to other major economies, it has a relatively small population of around 26.2 million (Worldometer, 2023).

The life expectancy in Australia for men is 80 years while 84 years for women. However, having more retirees and fewer
people of working age is an area of concern for the country.

Australia is one of the most multicultural and multiracial countries in the world. It has an important heritage from its
indigenous people who are believed to have migrated from Asia many thousands of years before the arrival of British settlers
in 1788. It adopted a policy of mass immigration after the Second World War; however, migration is a politically sensitive
issue in Australia.

Australia has a good number of public and private universities which attract a lot of international students every year. In fact,
international students now make up more than a quarter of enrolments at some universities in the country. Most of the
international students come from countries such as China, India, Nepal, Malaysia, Vietnam, Brazil & Colombia.

Australians are generally lively, hardworking, and outward looking. They spend a lot of their spare time in playing or
watching sports. In fact, Australia is one of the world’s best in many sports e.g. cricket, hockey, and swimming. Its sport
sector makes a significant contribution to the country’s GDP.

Australia has a universal healthcare system, which provides free or low-cost medical services to all citizens. The system is
funded by the government, and it covers a wide range of treatments and services.

However, Australia needs to work more on issues such as indigenous rights, discrimination, refugee rights, harassment,
incarceration of children, and homelessness. These issues are very important to many Australians according to different
surveys.

Technological environment in Australia

Technological environment is another key element in this PESTEL analysis of Australia. Australia is one of the most
technologically advanced countries in the world. It is well-known for adopting new technologies at a faster rate than many
other developed countries. It has witnessed an enormous growth in technology over the years.

The government is investing heavily in the digital economy, with the aim of creating a more connected and efficient
economy. It is also investing in new technologies, such as artificial intelligence, blockchain, and the Internet of Things.

Australia is also a leader in the renewable energy sector, with the country’s solar and wind industries having grown
significantly in recent years. However, the government needs to invest heavily in renewable energy, with the aim of making
the country’s energy supply more sustainable.

Local companies are investing in technologies to meet the growing demands of their customers. Computers & equipment,
software, tech consultancy services, cloud, and artificial intelligence are likely to drive these investments which should result
in more innovation and designs.

However, many analysts are of the view that Australia has a long way to go if it would like to challenge tech hubs in Asia,
Europe, the Middle East, and the US. It also has shortage of digitally skilled workers.

Environmental factors in Australia

Australia is one of the most beautiful countries in the world with stunning beaches, mountains, and forests. It is also widely
known for its brilliant biodiversity. In fact, more than one million species of plants and animals are found in the country. No
wonder why millions of overseas visitors visit the country every year!

However, Australia faces some environmental challenges. For instance, Australia is the driest inhabited continent on earth.
Likewise, climate change is also a great challenge. A recent Senate inquiry has concluded that climate change is a ‘current
and existential national security risk’ to Australia.

Water insecurity, the spread of infectious diseases, and regional conflicts over food, water and land are some of the potential
outcomes of climate change. Therefore, Australia needs to do more to tackle these challenges.

Legal environment in Australia

The last element to address in the PESTEL analysis of Australia is the legal landscape of the country. In order to ensure fair
trading for both businesses and consumers, Australia has fair trading laws, competition laws, and consumer laws. The Fair
Work Act 2009 is the primary piece of legislation that governs employment in the country.

Likewise, privacy laws deal with how businesses handle the personal information of their customers. Australia has an
independent legal system, which is based on the common law system. The country’s legal system is overseen by the High
Court of Australia, which is the highest court in the country.

Summary of PESTEL analysis of Australia

Australia is a vibrant and diverse country, with a rich history and culture. It has a strong economy, a thriving tourism industry,
and a highly developed infrastructure. It is also doing very well in the technology sector, with a strong focus on innovation
and research.

However, Australia needs to work more on issues such as lack of tech workers, indigenous and refugee rights, climate,
change, harassment, and homelessness.