Today, the services sector is the fastest growing in Australia’s economy. Finance, property,

tourism and business services are attracting big investment, both domestic and overseas. A wide range of financial institutions, including a number of foreign banks, caters to Australia’s developing industries.

Australia is rich in minerals and exports significant quantities of natural gas, oil, coal

and aluminium, iron ore, copper, lead, zinc, gold, nickel, and mineral sands. There are

also diamonds.

Plentiful energy resources – coal, oil, natural gas and uranium – contribute to export earnings and allow relatively low energy prices. In turn, this has encouraged the competitive development of energy-intensive industries – aluminium, iron and steel.

With the introduction of technology on a wide scale, Australia is now among the world leaders in areas of scientific application, such as fibre optics, micro-electronics, medical equipment and telecommunications.

Australia manufactures and exports a wide range of goods, including pharmaceuticals, information and communications technology, paper products, steel, chemical and plastics, machinery, motor vehicles, and processed food.

The robust construction industry is also a significant contributor to Australia’s

economic activity.

Tourism is another major growth area, with international arrivals expected to attract 10 million visitors by the year 2018. Annual expenditure by residents and international visitors travelling in Australia is more than $88 billion.

Australia is one of the world’s major trading nations, with China its most important trading partner. China (not including Hong Kong) buys 17 per cent of the nation’s exports and supplies 16.8 per cent of its imports.

Japan is the second largest, accounting for 22.8 per cent of exports and 8 per cent

Australia’s Major Exports

Today, Australian exporters reap the reward of having the world’s fastest growing economies on their doorstep.

Changes in trading emphasis have gone hand-in-hand with major changes in the mix of Australian exports. Thirty years ago, rural products accounted for more than 75 per cent of export earnings; they are now less than 30 per cent.

Agricultural exports are still important, however, with big earnings from top-quality wool, wheat, meat and fishery products.

Aggressive marketing and improved techniques, such as meat-chilling and air-freighting perishables in containers, have led to big increases in the sale of traditional agricultural commodities and of some new ones, including wine, fruit, vegetables and native flowers.

Minerals are also an important source of export earnings. Coal alone accounts for around 19 per cent of exports, most of it to Japan and China. Australia is also a major world supplier of bauxite, beach sand minerals, uranium, and copper.

Export successes have also been received in a variety of fields including computer equipment, industrial machinery and value-added food products.

And Australian consultancy services are in strong demand overseas in many areas, particularly in civil engineering, communications and education.

The Australian Trade Commission (AUSTRADE) and other Government bodies, both federal and state, provide support services to companies which are exploring and developing export markets.

Technology and the Future

Telecommunications regulation has kept pace with technology with one of the most liberal regulatory regimes in the world. This allows a wide variety of modern telecom-munications services to be offered, in particular to business.

Australia is at the cutting edge of technology – with an education system that gives emphasis to technology and computer literacy.

Personal computer ownership is among the highest in the world.

Australians have always been at the forefront of aviation, electronics and communications. Groups like the Commonwealth Scientific Industrial and Research Organisation (CSIRO), together with Australia’s universities and an innovative private business sector have given Australia a strong technological base.

Australians are among the world leaders in a number of specialist fields such as in-vitro fertilisation, cochlear implants, genetic engineering for crop and cattle improvement, bio-medical engineering, advanced ceramics, and silicon chip technology. With its own satellite system and fibre optic links (domestic and overseas). Australia is the communications hub for the South Pacific. Australian avionics, navigation aids and computer components are widely excported.

Supportive Government

Government support for industry has resulted in the transfer of a wide variety of technologies as well as the boosting of employment in supporting industries. As a result, Australian companies now manufacture key components for some of the world’s most advanced aircraft, undersea optic fibre telecommunications links and components for the automotive industry.

Industrial Research and Development (R&D) is encouraged with incentives available to companies involved in the development of new products and processes. Interaction between tertiary institutions and industry is also promoted.

Agencies of all Australian states and territories offer advice and support to people establishing new business enterprises, particularly those involved in new technology, tourism, exports, and manufacturing.

Deregulated Financial Markets

On the financial scene, the Australian system is lightly regulated to create a climate which provides capital on a competitive basis to individuals and businesses.

Financial institutions offer a broad range of products and services to business, focussing more on loans than equity finance. Stock exchanges in several capital cities provide a means for equity investments in public companies.

There are few foreign exchange controls. This allows Australian companies to operate freely in international markets and for overseas companies and individuals to invest in Australia. The Australian dollar is a relatively free-floating currency.

The Reserve Bank of Australia is Australia’s central bank, responsible for monetary, banking policy and  supervising the Australian banking system in accord with international guidelines.

The banking sector in Australia comprises more than 30 banking groups. This includes major banks which operate internationally. Australian banks are well capitalised.

In addition, there are more than 44 merchant banks operating in Australia, and a substantial number of other financial institutions, such as credit unions, finance companies and building societies, providing a wide range of financial services.The Commonwealth Development Bank and Primary Industry Bank of Australia support small business and the rural sector with development finance – while the Australian Industry Development Corporation offers finance to industry and participates in major development projects.

Australia Welcomes Business People

With plenty of business opportunities, it’s easy to invest in Australia.

There are no special investment restrictions placed on business people newly arrived in Australia. As long as they have resident status they may invest in and be part of the Australian business scene under the same terms as other Australians.

Most investment proposals from overseas are readily approved, unless they are contrary to the national interest or involve certain key industries such as civil aviation and the media. Foreign investment regulations do not apply to business migrants.

Business people settling in Australia can either buy into existing companies, or start their own. Australia offers business migrants and investors an exciting future in a prosperous, democratic society with room to grow.