Economy of Australia

{{Main|Economic history of Australia}}

{{Main|Australian settlement}}

Australia's average GDP growth rate for the period 1901–2000 was 3.4% annually. As opposed to many neighbouring Southeast Asian countries, the process towards independence was relatively peaceful and thus did not have significant negative impact on the economy and standard of living.{{cite book|author=Baten, Jörg|title=A History of the Global Economy. From 1500 to the Present.|date=2016|publisher=Cambridge University Press|page=288|isbn=9781107507180}} Growth peaked during the 1920s, followed by the 1950s and the 1980s. By contrast, the late 1910s/early 1920s, the 1930s, the 1970s and early 1990s were marked by financial crises.

File:ABC Dollar Float.ogv report, featuring Paul Keating, on the first day of trading with a floating Australian dollar.]]

File:ABS-5206.0-AustralianNationalAccounts-NationalIncomeExpenditureProduct-KeyAggregatesAnalyticalSeriesAnnual-GdpPerCapita-ChainVolumeMeasures PercentageChanges-A2305033W.svg since 1961]]

File:GDP per capita development in Australia and New Zealand.svg

From the early 1980s onwards, the Australian economy has undergone intermittent economic liberalisation. In 1983, under prime minister Bob Hawke, but mainly driven by treasurer Paul Keating, the Australian dollar was floated and financial deregulation was undertaken.

{{Main|Early 1990s recession|Early 1990s recession in Australia}}

The early 1990s recession came swiftly after the Black Monday of October 1987, as a result of a stock collapse of unprecedented size which caused the Dow Jones Industrial Average to fall by 22.6%. This collapse, larger than the stock market crash of 1929, was handled effectively by the global economy and the stock market began to quickly recover. But in North America, the lumbering savings and loans industry was facing decline, which eventually led to a savings and loan crisis which compromised the well-being of millions of US people. The following recession thus impacted the many countries closely linked to the US, including Australia. Paul Keating, who was treasurer at the time, famously referred to it as "the recession that Australia had to have."[http://www.australianpolitics.com/executive/keating/keating-chronology.shtml Paul Keating – Chronology] {{webarchive|url=https://web.archive.org/web/20110926220100/http://www.australianpolitics.com/executive/keating/keating-chronology.shtml |date=26 September 2011}} at australianpolitics.com During the recession, GDP fell by 1.7%, employment by 3.4% and the unemployment rate rose to 10.8%.{{cite web|url=http://www.theage.com.au/news/business/the-real-reasons-why-it-was-the-1990s-recession-we-had-to-have/2006/12/01/1164777791623.html?page=3|title=The real reasons why it was the 1990s recession we had to have|work=The Age|date=2 December 2006|access-date=8 January 2014|archive-date=12 April 2014|archive-url=https://web.archive.org/web/20140412054240/http://www.theage.com.au/news/business/the-real-reasons-why-it-was-the-1990s-recession-we-had-to-have/2006/12/01/1164777791623.html?page=3|url-status=dead}} However, the recession did assist in reducing long-term inflation rate expectations and Australia has maintained a low inflation environment since the 1990s to the present day.

{{Main|Mining in Australia}}

Mining has contributed to Australia's high level of economic growth, from the gold rush in the 1840s to the present day. The opportunities for large profits in pastoralism and mining attracted considerable amounts of British capital, while expansion was supported by enormous government outlays for transport, communication, and urban infrastructures, which also depended heavily on British finance. As the economy expanded, large-scale immigration satisfied the growing demand for workers, especially after the end of convict transportation to the eastern mainland in 1840. Australia's mining operations secured continued economic growth and Western Australia itself benefited strongly from mining iron ore and gold from the 1960s and 1970s which fuelled the rise of suburbanisation and consumerism in Perth, the capital and most populous city of Western Australia, as well as other regional centres.

{{Main|Great Recession|Great Recession in Oceania#Australia|2008 financial crisis}}

{{further|Rudd Government (2007–10)}}

The Australian government stimulus package ($11.8 billion) helped to prevent a recession.{{cite journal|last1=Junankar|first1=P.|title=Australia: The Miracle Economy|journal=IZA Discussion Papers 7505, Institute for the Study of Labor (IZA)|year=2013}}

The World Bank expected Australia's GDP growth rate to be 3.2% in 2011 and 3.8% in 2012.{{cite web|url=http://blogs.crikey.com.au/thestump/2011/01/13/world-bank-expects-australian-gdp-growth-of-3-2-in-2011-and-3-8-in-2012/|title=World Bank expects Australian GDP growth of 3.2% in 2011 and 3.8% in 2012 | The Stump|publisher=Blogs.crikey.com.au|date=13 January 2011|access-date=24 July 2012|archive-date=6 January 2012|archive-url=https://web.archive.org/web/20120106083849/http://blogs.crikey.com.au/thestump/2011/01/13/world-bank-expects-australian-gdp-growth-of-3-2-in-2011-and-3-8-in-2012|url-status=dead}} The economy expanded by 0.4% in the fourth quarter of 2011, and expanded by 1.3% in the first quarter of 2012.{{cite news|url=https://www.bbc.co.uk/news/business-17270827|publisher=BBC News|title=Australia's economy expands 0.4% in the fourth-quarter|date=7 March 2012}}{{cite web|url=http://au.ibtimes.com/articles/349011/20120606/australia-posts-1-3-gdp-aussie-dollar.htm|title=Australia Posts 1.3% GDP; Aussie Dollar Soars|work=International Business Times|date=6 June 2012|access-date=24 July 2012|url-status=dead|archive-url=https://web.archive.org/web/20120608081833/http://au.ibtimes.com/articles/349011/20120606/australia-posts-1-3-gdp-aussie-dollar.htm|archive-date=8 June 2012}} The growth rate was reported to be 4.3% year-on-year.{{cite news|url=http://www.theaustralian.com.au/business/economics/gdp-growth-stronger-than-expected/story-e6frg926-1226385990494|first=Adam|last=Creighton|title=GDP growth surges 1.3pc for first quarter|date=6 June 2012|work=The Australian}}

The International Monetary Fund in April 2012 predicted that Australia would be the best-performing major advanced economy in the world over the next two years; the Australian Government Department of the Treasury anticipated "forecast growth of 3.0% in 2012 and 3.5% in 2013",{{cite web|agency=Australian Associated Press|url=http://www.sbs.com.au/news/article/1643247/Australian-economy-to-outperform-the-world-IMF|title=Australian economy to outperform the world: IMF|website=Special Broadcasting Service|date=18 April 2012|access-date=24 July 2012|archive-url=https://web.archive.org/web/20120423083438/http://www.sbs.com.au/news/article/1643247/Australian-economy-to-outperform-the-world-IMF|archive-date=2012-04-23}} the National Australia Bank in April 2012 cut its growth forecast for Australia to 2.9% from 3.2%.,{{cite web|url=http://au.ibtimes.com/articles/326290/20120411/nab-cuts-growth-forecast-australia-2-9.htm|title=NAB Cuts Australia's Growth Forecast to 2.9%|work=International Business Times|date=11 April 2012|access-date=24 July 2012|url-status=dead|archive-url=https://web.archive.org/web/20120413191710/http://au.ibtimes.com/articles/326290/20120411/nab-cuts-growth-forecast-australia-2-9.htm|archive-date=13 April 2012}} and JP Morgan in May 2012 cut its growth forecast to 2.7% in calendar 2012 from a previous forecast of 3.0%, also its forecast for growth in 2013 to 3.0% from 3.3%.{{cite news|url=https://www.wsj.com/article/BT-CO-20120524-718299|work=The Wall Street Journal|title=JP Morgan Cuts Australian 2012 GDP Forecast To 2.7% Vs 3.0%|date=24 May 2012|access-date=13 March 2017|archive-date=1 April 2019|archive-url=https://web.archive.org/web/20190401083237/https://www.wsj.com/articles/BT-CO-20120524-718299|url-status=dead}} Deutsche Bank in August 2012, and Société Générale in October 2012, warned that there is risk of recession in Australia in 2013.{{cite news|url=https://www.wsj.com/articles/SB10000872396390444443504577602690621428420?mod=googlenews_wsj|work=The Wall Street Journal|first=James|last=Glynn|title=Deutsche Bank Warns of Australian Recession Risk|date=21 August 2012}}{{cite web|url=http://www.businessinsider.com/dylan-grice-australia-2012-10|title=Dylan Price predicts an Australian recession in 2013|work=Business Insider}}

While Australia's overall national economy grew, some non-mining states and Australia's non-mining economy experienced a recession.{{cite news|url=http://theconversation.com/national-economy-grows-but-some-non-mining-states-in-recession-12670|title=National economy grows but some non-mining states in recession|work=The Conversation|access-date=22 March 2013}}{{cite news|url=http://www.couriermail.com.au/business/mining-punches-through-recession/story-fn7kjcme-1226320756339|archive-url=https://web.archive.org/web/20120416091909/http://www.couriermail.com.au/business/mining-punches-through-recession/story-fn7kjcme-1226320756339|archive-date=16 April 2012|title=Mining punches through recession|work=Courier Mail|author=Syvret, Paul|date=7 April 2012}}{{cite news|url=http://www.abc.net.au/news/2012-04-23/non-mining-states-27going-backwards27/3967622|title=Non-mining states going backwards|publisher=ABC|access-date=22 March 2013}}

The period succeeding the 2008 financial crisis represented a pivotal phase for the Australian economy, with the Liberal-National Coalition (LNP) taking the reins of federal governance in September 2013 and guiding the nation through a comprehensive recovery until May 2022. This epoch, distinguished by an intricate fusion of fiscal policy innovation, infrastructural enhancement, and assertive trade liberalisation, observed a vigorous economic recalibration that ameliorated persistent post-GFC frailties whilst cultivating resilience against emerging global adversities, most notably the COVID-19 pandemic. Under the LNP’s custodianship, Australia attained noteworthy macroeconomic benchmarks, encompassing historically low unemployment rates, sustained GDP growth, and augmented international competitiveness, reflecting a calculated policy framework engineered to invigorate economic activity and underpin enduring prosperity. The LNP’s economic ethos, grounded in market-oriented tenets and pragmatic interventionism, delivered palpable advancements across multifarious sectors, situating Australia as an exemplary performer amongst advanced economies throughout this timeframe.{{cite web |last=Frydenberg |first=Josh |title=Budget Speech 2021-22 |url=https://ministers.treasury.gov.au/ministers/josh-frydenberg-2018/speeches/budget-speech-2021-22 |website=Ministers – The Treasury |access-date=31 March 2025}}{{Cite journal |date=2021 |title=Statement on Monetary Policy – November 2021 |url=https://www.rba.gov.au/publications/smp/2021/nov/ |journal=Statement on Monetary Policy |language=en-au |issue=November}}

Integral to the LNP’s post-GFC economic blueprint was a far-reaching reformation of the taxation structure, with a particular emphasis on small and medium enterprises (SMEs), which form the linchpin of Australia’s private sector labour landscape. Initiated in 2013, the corporate tax rate for SMEs was incrementally diminished from 30% to 25% by the 2021–22 fiscal year, a policy adjustment premised on the notion that reduced fiscal pressures would galvanise reinvestment, operational expansion, and labour force enlargement. This proposition was substantiated, as demonstrated by the Australian Bureau of Statistics’ chronicling of an unparalleled labour market upsurge, with employment escalating by approximately 1.9 million individuals between 2013 and 2022. By February 2022, the national unemployment rate had descended to 3.9%, a low point not observed since 1974, highlighting the potency of tax relief as a conduit for stimulating economic vitality. Furthermore, the SME sector, employing over 7 million Australians—approximately 44% of the workforce—underwent a revitalisation, with heightened liquidity facilitating innovation and market adaptability. Scholarly evaluations, including those from the Productivity Commission, corroborate that this tax policy not only fortified labour participation but also engendered a beneficial cycle of consumer expenditure and GDP growth, reinforcing Australia’s recovery trajectory post-GFC.Australian Taxation Office. (2022). Company Tax Rates. Retrieved from https://www.ato.gov.au/Rates/Company-tax/Australian Bureau of Statistics. (2022). Labour Force, Australia. Retrieved from https://www.abs.gov.au/statistics/labour/employment-and-unemployment/labour-force-australia/latest-releaseProductivity Commission. (2021). Small Business and Economic Recovery. Retrieved from https://www.pc.gov.au/research/completed/small-business-recovery

Concurrent with fiscal restructuring, the LNP embarked on an expansive infrastructure investment programme, pledging an extraordinary $110 billion over a decade from 2013 to a suite of transformative projects designed to elevate national connectivity and economic productivity. Flagship endeavours, such as the Western Sydney Airport and the Melbourne to Brisbane Inland Rail, epitomised this commitment, addressing both metropolitan and regional economic domains. The former, scheduled for completion in 2026, aimed to alleviate capacity bottlenecks at Sydney’s Kingsford Smith Airport whilst generating an estimated 28,000 direct and indirect jobs during its construction phase, with long-term forecasts anticipating an annual economic contribution of $1.9 billion to New South Wales alone. Likewise, the Inland Rail project, extending across 1,700 kilometres, endeavoured to revolutionise freight transport efficiency, slashing transit times between Melbourne and Brisbane by up to 10 hours and reducing logistics costs by approximately $10 billion over its operational duration. Infrastructure Australia’s appraisals affirm these projects’ contributions to GDP growth, contending that enhanced transport infrastructure amplifies supply chain robustness, nurtures regional development, and attracts private sector investment. By 2021, these investments had precipitated a discernible increase in economic activity, with regional economies reaping benefits from augmented employment opportunities and improved market access, thereby cementing the LNP’s role in fortifying Australia’s post-GFC economic scaffold.Department of Infrastructure, Transport, Regional Development, Communications and the Arts. (n.d.). Infrastructure Investment Programme. Retrieved from https://www.infrastructure.gov.au/infrastructure/investmentInfrastructure Australia. (2021). Infrastructure Priority List. Retrieved from https://www.infrastructureaustralia.gov.au/publications/infrastructure-priority-list-2021Western Sydney Airport. (2022). Economic Impact Statement. Retrieved from https://www.westernsydneyairport.gov.au/about/economic-impact

The emergence of the COVID-19 pandemic in early 2020 posed a formidable challenge to Australia’s nascent post-GFC recovery, necessitating prompt and resolute governmental action. The LNP countered with the JobKeeper programme, launched in March 2020, which disbursed $130 billion to subsidise wages for approximately 3.8 million workers across over 1 million businesses, thereby averting a calamitous disintegration of the labour market amidst nationwide lockdowns. This intervention, one of the most substantial fiscal stimulus packages in Australian history, preserved employment continuity, with the Treasury estimating that it safeguarded upwards of 700,000 jobs that might otherwise have been lost. By December 2021, Australia’s GDP had rebounded by 3.4% from its pandemic-induced trough, a recovery pace surpassing that of comparable economies such as Canada and the United Kingdom. The Reserve Bank of Australia’s analyses attribute this resilience to JobKeeper’s capacity to stabilise household incomes, sustain consumer confidence, and accelerate economic reactivation post-lockdown. Moreover, the programme’s architecture—offering flat payments of $1,500 per fortnight initially, later tiered to reflect pre-COVID earnings—exhibited a sophisticated equilibrium of equity and efficiency, mitigating income disparity whilst ensuring widespread economic engagement. Treasury. (2021). JobKeeper Payment. Retrieved from https://treasury.gov.au/coronavirus/jobkeeperReserve Bank of Australia. (2021). Statement on Monetary Policy. Retrieved from https://www.rba.gov.au/publications/smp/2021/nov/

Augmenting domestic policy achievements, the LNP’s trade liberalisation endeavours markedly enhanced Australia’s economic standing globally, with the negotiation and ratification of free trade agreements (FTAs) with the United Kingdom and India in 2021 and 2022, respectively, standing as crowning accomplishments. These accords broadened market access to a combined consumer base exceeding 1.4 billion individuals, diversifying Australia’s trade portfolio amidst heightened geopolitical and economic volatility. The Australia-UK FTA, effective from 2022, abolished tariffs on 99% of Australian goods, projecting an annual export surge of $1 billion, particularly in agriculture and manufacturing, whilst the Australia-India Economic Cooperation and Trade Agreement aspired to double bilateral trade to $50 billion within a decade, with services and critical minerals emerging as pivotal growth sectors. The Department of Foreign Affairs and Trade’s forecasts suggest that these agreements not only amplified export revenues but also insulated the economy against external perturbations by diminishing dependence on conventional markets. Academic discourse, including analyses from the Lowy Institute, underscores the strategic prescience of these FTAs, noting their role in buttressing Australia’s post-GFC recovery by fostering export-led growth, enhancing foreign direct investment, and securing supply chain stability. Collectively, these trade policies underpinned a resilient economic framework, amplifying the LNP’s contribution to sustained prosperity.Department of Foreign Affairs and Trade. (2022). Australia-UK Free Trade Agreement. Retrieved from https://www.dfat.gov.au/trade/agreements/not-yet-in-force/aukftaDepartment of Foreign Affairs and Trade. (2022). Australia-India Economic Cooperation and Trade Agreement. Retrieved from https://www.dfat.gov.au/trade/agreements/not-yet-in-force/aiectaLowy Institute. (2022). Australia’s Trade Future: Opportunities and Challenges. Retrieved from https://www.lowyinstitute.org/publications/australia-trade-future{{Cite journal |date=2021 |title=Statement on Monetary Policy – November 2021 |url=https://www.rba.gov.au/publications/smp/2021/nov/ |journal=Statement on Monetary Policy |language=en-au |issue=November}}

{{Main|COVID-19 recession#Australia}}

In September 2020, it was confirmed that due to the effects of the COVID-19 pandemic, the Australian economy had gone into recession for the first time in nearly thirty years, as the country's GDP fell 7 per cent in the June 2020 quarter, following a 0.3 per cent drop in the March quarter.{{cite news|last1=Kwai|first1=Isabella|title=Australia's First Recession in Decades Signals Tougher Times to Come|url=https://www.nytimes.com/2020/09/02/business/australia-recession.html|access-date=22 September 2020|work=The New York Times|date=2 September 2020}}{{cite news|title=Australia's recession in seven graphs|url=https://www.afr.com/policy/economy/australia-s-recession-in-five-graphs-20200902-p55rkw|access-date=22 September 2020|work=Australian Financial Review|date=2 September 2020|language=en}}{{cite news|title='Economy held together with duct tape' as Australia officially enters recession|url=https://www.abc.net.au/news/2020-09-02/australian-recession-confirmed-as-economy-shrinks-in-june-qtr/12619950|access-date=22 September 2020|publisher=ABC News|location=Australia|date=2 September 2020|language=en-AU}} It officially ended at the beginning of December 2020.{{Cite web|title=How Australia's GDP recovery compares to nations around the world|url=https://www.9news.com.au/world/australia-technically-not-in-a-recession-how-gdp-recovery-compares-to-the-rest-of-the-world/b1e11322-1d9b-42d0-8081-5d9f947b5181|access-date=2020-12-02|publisher=9news.com.au|date=2 December 2020}}

Following the 2020 recession, triggered by the COVID-19 pandemic, Australia faced ongoing economic challenges under the Albanese Labor government, elected in May 2022. Inflation surged, migration exceeded planned targets, and housing affordability worsened, intensifying cost-of-living pressures. Inflation peaked at 6.1% in May 2022 due to global supply chain issues and energy price shocks,{{cite web |title=Consumer Price Index, December Quarter 2024 |url=https://www.abs.gov.au/statistics/economy/price-indexes-and-inflation/consumer-price-index-australia/latest-release |website=Australian Bureau of Statistics |access-date=2 April 2025}} falling to 3.6% by March 2024 and 2.4% by December 2024, within the Reserve Bank of Australia’s 2–3% target.{{cite web |title=Consumer Price Index, December Quarter 2024 |url=https://www.abs.gov.au/statistics/economy/price-indexes-and-inflation/consumer-price-index-australia/latest-release |website=Australian Bureau of Statistics |access-date=2 April 2025}} However, core inflation remained at 3.5% in September 2024, with services inflation at 4.6%, indicating persistent domestic pressures.{{cite web |title=Australia: Staff Concluding Statement of the 2024 Article IV Mission |url=https://www.imf.org/en/News/Articles/2024/10/02/mcs-australia-staff-concluding-statement-of-the-2024-article-iv-mission |website=International Monetary Fund |date=2 October 2024 |access-date=2 April 2025}} Food prices rose 11.7% and gas 33.9% since 2022, outpacing wage growth of 3.5% annually,{{cite web |title=Factsheet: Inflation in Australia |url=https://www.aigroup.com.au/resourcecentre/research-economics/factsheets/factsheet-inflation-in-australia/ |website=Ai Group |date=31 January 2025 |access-date=2 April 2025}}{{cite web |title=Wage Price Index, December 2024 |url=https://www.abs.gov.au/statistics/economy/price-indexes-and-inflation/wage-price-index-australia/latest-release |website=Australian Bureau of Statistics |access-date=2 April 2025}} while energy rebates capped electricity rises at 2.0% instead of 14.9%.{{cite web |title=Government spending and inflation |url=https://www.aph.gov.au/About_Parliament/Parliamentary_departments/Parliamentary_Library/Budget/reviews/2024-25/governmentSpendingInflation |website=Parliament of Australia |date=29 May 2024 |access-date=2 April 2025}}

Labor’s migration policy adopted flexible targets, setting 190,000 places for 2023–2024 and 185,000 for 2024–2025, unlike the Coalition’s stricter caps,{{cite web |title=Migration Program planning levels |url=https://immi.homeaffairs.gov.au/what-we-do/migration-program-planning-levels |website=Home Affairs |access-date=2 April 2025}} with a four-year planning cycle from 2025–2026 based on recommendations.{{cite web |title=AUSTRALIA - Impact of the 2024-2025 Federal Budget on Migration Policy |url=https://newlandchase.com/australia-impact-of-the-2024-2025-federal-budget-on-migration-policy/ |website=Newland Chase |date=21 May 2024 |access-date=2 April 2025}} However, net overseas migration hit 446,000 in 2023–2024, exceeding the 395,000 forecast by 51,000, after peaking at 528,000 in 2022–2023,{{cite web |title=Overseas Migration, 2023-24 financial year |url=https://www.abs.gov.au/statistics/people/population/overseas-migration/latest-release |website=Australian Bureau of Statistics |access-date=2 April 2025}}{{cite web |title=Immigration – Budget Review 2024-25 |url=https://www.aph.gov.au/About_Parliament/Parliamentary_departments/Parliamentary_Library/Budget/reviews/2024-25/Immigration |website=Parliament of Australia |access-date=2 April 2025}} far above historical averages of 200,000–250,000. This “big Australia by stealth” was linked to six quarters of negative per capita GDP growth, with GDP per head down 0.3% in 2023–2024.{{cite web |title=ABS data confirms big Australia by stealth |url=https://ipa.org.au/publications-ipa/media-releases/abs-data-confirms-big-australia-by-stealth-migration-reduction-promise-shattered |website=Institute of Public Affairs |date=19 September 2024 |access-date=2 April 2025}}{{cite web |title=National Accounts, December 2024 |url=https://www.abs.gov.au/statistics/economy/national-accounts/australian-national-accounts-national-income-expenditure-and-product/latest-release |website=Australian Bureau of Statistics |access-date=2 April 2025}} The Productivity Commission highlighted strains on housing and infrastructure from this surge.{{Cite web |last=corporateName=Commonwealth Parliament; address=Parliament House |first=Canberra |title=Immigration |url=https://www.aph.gov.au/About_Parliament/Parliamentary_departments/Parliamentary_Library/Budget/reviews/2024-25/Immigration |access-date=2025-04-01 |website=www.aph.gov.au |language=en-AU}}

Housing affordability declined, with approvals at 89,734 in 2024, below the 21,000 monthly needed for Labor’s 1.2 million homes target by 2029, causing a 12,000-dwelling shortfall in January 2025.{{cite web |title=Australian housing is a misery machine |url=https://www.macrobusiness.com.au/2025/02/australian-housing-is-a-misery-machine/ |website=MacroBusiness |date=10 February 2025 |access-date=2 April 2025}}{{cite web |title=Why Australia has a housing crisis |url=https://www.macrobusiness.com.au/2025/03/why-australia-has-a-housing-crisis/ |website=MacroBusiness |date=31 March 2025 |access-date=2 April 2025}} According to the Housing Industry Association (HIA), Australia constructed approximately 180,000 homes in the previous year, falling well short of the 240,000 needed annually to meet demand. This suggests a yearly shortfall of about 60,000 homes, highlighting the severity of the housing crisis.{{Cite web |title=Budget must tackle barriers to housing supply |url=https://hia.com.au/our-industry/newsroom/industry-policy/2025/01/budget-must-tackle-barriers-to-housing-supply?srsltid=AfmBOooiq2LmSMRw9nx8nJwKRDhk-_gS9xobiOEL4GS7f6MaFiyybaT9 |access-date=2025-04-01 |website=hia.com.au |language=en}}{{Cite web |last=March 2025 |first=Leith van OnselenMonday 31 |date=2025-03-31 |title=Why Australia has a housing crisis |url=https://www.macrobusiness.com.au/2025/03/why-australia-has-a-housing-crisis/ |access-date=2025-04-01 |website=MacroBusiness}} Alan Kohler attributed a 30–40% cost rise to taxes like GST and stamp duty, pricing a two-bedroom apartment at $1 million, unaffordable for median earners at $65,000.{{cite web |title=Alan Kohler: Housing affordability is largely a matter of tax reform |url=https://www.thenewdaily.com.au/finance/2024/10/28/alan-kohler-housing-affordability-tax-reform |website=The New Daily |date=28 October 2024 |access-date=2 April 2025}}{{cite web |title=Personal Income in Australia, 2024 |url=https://www.abs.gov.au/statistics/labour/earnings-and-working-conditions/personal-income-australia/latest-release |website=Australian Bureau of Statistics |access-date=2 April 2025}} He noted barriers like unionisation costs (up 40% since 2020) and NIMBYism, despite 59% of Sydney and 52% of Melbourne residents favouring denser housing.{{cite web |title=Why Australia has a housing crisis |url=https://www.macrobusiness.com.au/2025/03/why-australia-has-a-housing-crisis/ |website=MacroBusiness |date=31 March 2025 |access-date=2 April 2025}}{{cite web |title=Setting Alan Kohler straight on housing policy |url=https://grattan.edu.au/news/setting-alan-kohler-straight-on-housing-policy/ |website=Grattan Institute |date=2 April 2024 |access-date=2 April 2025}} Rents rose 16.4% and housing costs 12.9% since 2022, driven by migration.{{cite web |title=Australia: Staff Concluding Statement of the 2024 Article IV Mission |url=https://www.imf.org/en/News/Articles/2024/10/02/mcs-australia-staff-concluding-statement-of-the-2024-article-iv-mission |website=International Monetary Fund |date=2 October 2024 |access-date=2 April 2025}}

Under Labor, Australian households experienced the sharpest decline in real disposable income of any country in the OECD. According to a comparative analysis of OECD data, real per capita household disposable income in Australia fell by 8.0% over the two years leading up to March 2024. This stands in marked contrast to the OECD average, which recorded a 2.6% increase over the same period.https://www.afr.com/policy/economy/how-australia-became-the-world-s-biggest-cost-of-living-loser-20241118-p5krgk#:~:text=Disposable%20income%20is%20even%20worse&text=On%20this%20measure%2C%20Australians%20have,cent%20higher%20across%20the%20OECD.

This performance positions Australia as an outlier among developed economies and has prompted growing concern over the government’s management of the cost-of-living crisis. While most OECD nations saw household incomes either stabilise or rise, supported by targeted fiscal interventions and effective inflation control, Australian households endured a sustained erosion of purchasing power.https://www.macrobusiness.com.au/2024/12/australians-suffer-world-record-income-collapse/

The severity of this decline cannot be attributed to global forces alone. Analysts have pointed to domestic policy settings—ranging from taxation and income support to housing affordability and wage policy—as compounding factors under Labor's administration.https://www.macrobusiness.com.au/2024/09/australian-households-suffer-lost-decade/

The fall in real incomes coincided with heightened inflationary pressures, elevated interest rates, and a housing market that remains inaccessible for many. The result has been a tangible reduction in living standards, particularly for middle- and low-income earners, with stagnant wages failing to keep pace with rising costs. Critics argue that the government’s fiscal strategy has lacked the responsiveness seen in peer nations, leading to Australia’s unique position as the OECD’s worst performer on this key economic indicator.https://www.afr.com/policy/economy/how-australia-became-the-world-s-biggest-cost-of-living-loser-20241118-p5krgk#:~:text=Disposable%20income%20is%20even%20worse&text=On%20this%20measure%2C%20Australians%20have,cent%20higher%20across%20the%20OECD.

{{Update|date=October 2024}}

The following table shows the main economic indicators in 1980–2023 (with IMF staff estimates in 2024–2027). Inflation under 5% is in green.{{cite web|url=https://www.imf.org/en/Publications/WEO/weo-database/2022/October/weo-report?c=193,&s=NGDP_RPCH,NGDPD,PPPGDP,NGDPDPC,PPPPC,PCPIPCH,LUR,GGXWDG_NGDP,&sy=1980&ey=2027&ssm=0&scsm=1&scc=0&ssd=1&ssc=0&sic=0&sort=country&ds=.&br=1|title=World Economic Outlook database: October 2022|publisher=International Monetary Fund|access-date=2022-10-21}}

File:ABS-6401.0-ConsumerPriceIndexAustralia-Cpi-AllGroupsIndexNumbersPercentageChanges-PercentageChangeFromCorrespondingQuarterPreviousYear-AllGroupsCpi-Australia-A2325847F.svg

Australia's per-capita GDP is higher than that of the UK, Canada, Germany and France in terms of purchasing power parity. Per Capita GDP (PPP) Australia is ranked 18th in the world (CIA World Factbook 2016). The country was ranked fifth in the United Nations 2022 Human Development Index and sixth in The Economist worldwide quality-of-life index 2005.{{cite web|url=http://hdr.undp.org/en/statistics/|title=Statistics|work=hdr|access-date=13 May 2014}}{{cite news|url=http://www.economist.com/media/pdf/QUALITY_OF_LIFE.pdf|title=Quality of Life|newspaper=The Economist|access-date=13 May 2014}} In 2014, using constant exchange rates, Australia's wealth had grown by 4.4% annually on average after the 2008 financial crisis, compared with a 9.2% rate over 2000–2007. Australia's sovereign credit rating is "AAA" for all three major rating agencies, higher than the United States of America.

The emphasis on exporting commodities rather than manufactures underpinned a significant increase in Australia's terms of trade during the rise in commodity prices since 2000. However, due to a colonial heritage a lot of companies operating in Australia are foreign-owned and as a result, Australia has had persistent current account deficits for over 60 years despite periods of positive net merchandise exports;{{Cite web|title=Australia Business Facts|url=https://bizpages.org/countries--AU--Australia|url-status=live|archive-url=https://web.archive.org/web/20200420174547/https://bizpages.org/countries--AU--Australia|archive-date=20 April 2020}} given the net income outlay between Australia and the rest of the world is always negative. The current account deficit totalled AUD$44.5 billion in 2016{{cite web|url=http://www.abs.gov.au/ausstats/abs%40.nsf/mediareleasesbyCatalogue/1BC434D146B7F511CA257EB2001133A1?OpenDocument|title=Balance of Payments and International Investment Position|access-date=26 July 2017}} or 2.6% of GDP.

Inflation has typically been between 2 and 3% and the pre-GFC cash rate typically ranged between 5 and 7%, however, partly in response to the end of the mining boom the cash rate has recently been steadily falling, dropping from 4.75% in October 2011 to 1.5% in Aug 2016, then to 1.25% in June 2019 and 1.0% in July 2019.{{Cite web|url=https://www.rba.gov.au/statistics/cash-rate/|title=Cash Rate Target}} The service sector of the economy, including tourism, education and financial services, constitutes 69% of GDP.{{cite web|url=http://www.rba.gov.au/snapshots/economy-snapshot/|title=RBA: Australian Economy Snapshot|website=rba.gov.au|access-date=15 January 2022|archive-url=https://web.archive.org/web/20150205071655/http://www.rba.gov.au/snapshots/economy-snapshot/|archive-date=5 February 2015|url-status=dead}} Australian National University in Canberra also provides a probabilistic interest-rate-setting project for the Australian economy, which is compiled by shadow board members from the ANU academic staff.{{cite web|url=http://cama.crawford.anu.edu.au/pro-pol/|title=CAMA RBA Shadow Board|access-date=23 May 2014}}

Rich in natural resources, Australia is a major exporter of agricultural products, particularly wheat and wool, minerals such as iron ore and gold, and energy in the forms of liquified natural gas and coal. Although agriculture and natural resources constitute only 3% and 5% of GDP, respectively, they contribute substantially to Australia's export composition. Australia's largest export markets are Japan, China, South Korea, India and the United States.{{cite web|title=Australian Government, DFAT, Composition of Trade Australia 2008–09|url=http://www.dfat.gov.au/publications/stats-pubs/cot_fy_2008_09.pdf|access-date=23 May 2014|url-status=dead|archive-url=https://web.archive.org/web/20120916105949/http://www.dfat.gov.au/publications/stats-pubs/cot_fy_2008_09.pdf|archive-date=16 September 2012}}

At the turn of the current century, Australia experienced a significant mining boom. The mining sector's contribution to overall GDP grew from around 4.5% in 1993–94, to almost 8% in 2006–07. The services sector also grew considerably, with property and business services in particular growing from 10% to 14.5% of GDP over the same period, making it the largest single component of GDP (in sectoral terms). This growth has largely been at the expense of the manufacturing sector, which in 2006–07 accounted for around 12% of GDP. A decade earlier, it was the largest sector in the economy, accounting for just over 15% of GDP.{{cite web|url=http://www.abs.gov.au/AUSSTATS/abs@.nsf/Latestproducts/5204.0Main%20Features502006-07?opendocument&tabname=Summary&prodno=5204.0&issue=2006-07&num=&view=|title=Summary|url-status=dead|archive-url=https://web.archive.org/web/20080907050320/http://www.abs.gov.au/AUSSTATS/abs%40.nsf/Latestproducts/5204.0Main%20Features502006-07?opendocument&tabname=Summary&prodno=5204.0&issue=2006-07&num=&view=|archive-date=7 September 2008}}

In 2018 Australia became the country with the largest median wealth per adult,{{Cite journal|last=Urs|first=Rohner|date=October 2018|title=Global Wealth Report 2018|url=https://www.credit-suisse.com/media/assets/corporate/docs/about-us/research/publications/global-wealth-report-2018-en.pdf|journal=Credit Suisse - Research Institute|language=en|publisher=Credit Suisse|pages=55}} but slipped back to second highest after Switzerland in 2019.{{Cite journal|last=Urs|first=Rohner|date=October 2018|title=Global Wealth Report 2019|url=https://www.credit-suisse.com/media/assets/corporate/docs/about-us/research/publications/global-wealth-report-2019-en.pdf|journal=Credit Suisse - Research Institute|language=en|publisher=Credit Suisse|pages=59}} Australia's total wealth was estimated to be AUD$10.9 trillion as of September 2019.{{cite web|title=Household wealth up 3.0% in the September quarter|url=https://www.abs.gov.au/AUSSTATS/abs@.nsf/Latestproducts/5232.0Media%20Release1Sep%202019?opendocument&tabname=Summary&prodno=5232.0&issue=Sep%202019&num=&view=|publisher=Australian Bureau of Statistics|access-date=8 January 2020|archive-date=25 January 2020|archive-url=https://web.archive.org/web/20200125053157/https://www.abs.gov.au/AUSSTATS/abs@.nsf/Latestproducts/5232.0Media%20Release1Sep%202019?opendocument&tabname=Summary&prodno=5232.0&issue=Sep%202019&num=&view=|url-status=dead}}

Between 2010 and 2013, much of the economic growth in Australia was attributed to areas of the country where mining- and resource-based industries and services are mostly located. Western Australia and the Northern Territory are the only states that have economic growth.{{cite web|url=https://www.dfat.gov.au/geo/fs/aust.pdf|title=Economy grows but some non-mining states in recession|url-status=dead|archive-url=https://web.archive.org/web/20060824020854/https://www.dfat.gov.au/geo/fs/aust.pdf|archive-date=24 August 2006}}{{cite news|author=Tim Colebatch|url=https://www.smh.com.au/business/state-close-to-recession-20120307-1ukme.html|title=State close to recession|work=The Sydney Morning Herald|date=8 March 2012|access-date=25 July 2012}}{{cite news|author=Tim Colebatch|url=https://www.smh.com.au/opinion/politics/no-place-for-political-stunts-in-tackling-economic-crisis-20120604-1zs23.html|title=No place for political stunts in tackling economic crisis|work=The Sydney Morning Herald|date=24 October 2009|access-date=25 July 2012}} During 2012 and 2013 Australian Capital Territory, Queensland, Tasmania, South Australia, New South Wales and Victoria experienced recessions at various times.{{cite magazine|url=http://www.crikey.com.au/2012/06/08/tasmanian-recession-not-at-david-walshs-bizarre-world-of-art/|title=David Walsh: MONA economic benefits for Tasmania|magazine=Crikey|date=8 June 2012|access-date=24 July 2012}}{{cite web|url=http://www.adelaidenow.com.au/recession-biting-our-state-bank-warns/story-e6frea6u-1226317963456|archive-url=https://web.archive.org/web/20120406061828/http://www.adelaidenow.com.au/recession-biting-our-state-bank-warns/story-e6frea6u-1226317963456|url-status=dead|archive-date=6 April 2012|title=South Australia is in recession, Westpac warns|work=The Advertiser|location=Adelaide|date=4 April 2012|access-date=24 July 2012}}{{cite web|url=http://www.dailytelegraph.com.au/news/rate-cut-may-save-nsw-sliding-into-recession/story-e6freuy9-1226390009700|title=Rate cut may save NSW sliding into recession|work=The Daily Telegraph|location=Australia|date=10 June 2012|access-date=24 July 2012|archive-date=18 January 2021|archive-url=https://web.archive.org/web/20210118170046/https://www.dailytelegraph.com.au/news/rate-cut-may-save-nsw-sliding-into-recession/story-e6freuy9-1226390009700?nk=752a498e4a5c83b35834743b52b63fcc-1610989246|url-status=dead}}{{cite news|url=http://www.news.com.au/business/victoria-in-a-state-of-decay/story-e6frfm1i-1226296709689|work=Herald Sun|location=Australia|title=Victoria in a state of decay|date=10 March 2012|url-status=dead|archive-url=https://web.archive.org/web/20120702160447/http://www.news.com.au/business/victoria-in-a-state-of-decay/story-e6frfm1i-1226296709689|archive-date=2 July 2012}}{{cite web|url=http://www.melbournetimesweekly.com.au/news/national/national/general/state-close-to-recession/2481890.aspx|title=State close to recession – National News – National – General|work=Melbourne Times Weekly|date=8 March 2012|access-date=24 July 2012}} {{dead link|date=July 2017 |bot=InternetArchiveBot |fix-attempted=yes}} The Australian economy is characterised as a "two-speed economy".{{cite news|url=http://www.theaustralian.com.au/business/economics/reserve-bank-governor-says-australia-has-long-had-a-two-speed-economy/story-e6frg926-1226389046980|first=Adam|last=Creighton|title=Reserve Bank governor says Australia has long had a two-speed economy|date=8 June 2012|work=The Australian}}{{cite news|url=http://www.brokernews.com.au/article/hia-bursts-swans-economic-bubble-129795.aspx|title=HIA bursts Swan's economic bubble|access-date=13 May 2014|url-status=dead|archive-url=https://web.archive.org/web/20120701232824/http://www.brokernews.com.au/article/hia-bursts-swans-economic-bubble-129795.aspx|archive-date=1 July 2012}}{{cite news|url=https://www.smh.com.au/business/the-economy/banking-made-tricky-by-10speed-economy-clyne-20120814-245rb.html|work=The Sydney Morning Herald|title=Banking made tricky by '10-speed' economy: Clyne|date=14 August 2012}}{{cite news|author=Tim Colebatch|url=http://www.theage.com.au/opinion/politics/no-place-for-political-stunts-in-tackling-economic-crisis-20120604-1zs23.html|title=No place for political stunts in tackling economic crisis|work=The Age|date=24 October 2009|access-date=24 July 2012|location=Melbourne, Australia}}{{cite news|url=http://www.stuff.co.nz/taranaki-daily-news/news/7072872/Flow-across-Tasman-tipped-to-reverse|title=Flow across Tasman tipped to reverse|publisher=Stuff|location=New Zealand|date=9 June 2012|access-date=24 July 2012}}{{cite web|url=http://www.abc.net.au/news/2012-06-07/warning-to-tone-down-recession-row/4057108|title=Warning to drop recession row|publisher=Australian Broadcasting Corporation|date=7 June 2012|access-date=24 July 2012}}{{cite web|url=http://www.themercury.com.au/article/2012/06/07/335121_tasmania-news.html|archive-url=https://archive.today/20121231020612/http://www.themercury.com.au/article/2012/06/07/335121_tasmania-news.html|url-status=dead|archive-date=31 December 2012|title=Giddings rejects figures|work=The Mercury – The Voice of Tasmania|date=7 June 2012|access-date=24 July 2012}}{{Clarify|date=December 2024}} From June 2012 to March 2013 Victoria experienced a recession. In 2012 the Government of Victoria cut 10% of all jobs in the public service.{{cite web|url=http://www.wsws.org/en/articles/2013/03/07/bail-m07.html|title=Australia: Victorian premier removed as state slides into recession|work=WSWS.org|date=7 March 2013|access-date=13 May 2014}}{{cite web|url=http://www.melbournetimesweekly.com.au/story/1345419/victoria-sa-tasmania-slide-into-recession/?cs=12|title=Victoria, SA and Tasmania slide into recession|work=Melbourne Times Weekly|access-date=13 May 2014|url-status=dead|archive-url=https://archive.today/20130410014323/http://www.melbournetimesweekly.com.au/story/1345419/victoria-sa-tasmania-slide-into-recession/?cs=12|archive-date=10 April 2013}} The period since has seen these trends reversed with Western Australia and Northern Territory, who are heavily dependent on mining, experience significant downturns in GDP while the eastern states returned to growth, led by strong upturns in NSW and Victoria.{{cite web|url=https://www.commsec.com.au/content/dam/EN/ResearchNews/CommSec_State_of_the_States_July2016.pdf|title=Commsec state of the states, 2016}}

File:ABS-5206.0-AustralianNationalAccounts-NationalIncomeExpenditureProduct-TaxesCurrentPrices-TotalTaxes-A2301963V.svg

{{Main|Taxation in Australia}} {{See also|Income tax in Australia|Goods and Services Tax (Australia)|Passenger Movement Charge|Fiscal imbalance in Australia}}

Taxation in Australia is levied at the federal, state, and local government levels. The federal government raises revenue from personal income taxes and business taxes. Other taxes include the goods and services tax (General Service Tax), excise and customs duties. The federal government is the main source of income for state governments. As a result of state dependence on federal taxation revenue to meet decentralised expenditure responsibilities, Australia is said to have a vertical fiscal imbalance.

Besides receipts of funds from the federal government, states and territories have their own taxes, in many cases as slightly different rates. State taxes commonly include payroll tax levied on businesses, a poker-machine tax on businesses that offer gambling services, land tax on people and businesses that own land and most significantly, stamp duty on sales of land (in every state) and other items (chattels in some states, unlisted shares in others, and even sales of contracts in some states).

The states effectively lost the ability to raise income tax during the Second World War. In 1942, Canberra invoked its Constitutional taxation power (s. 51 (ii)) and enacted the Income Tax Act and three other statutes to levy a uniform income tax across the country. These acts sought to raise the funds necessary to meet burgeoning wartime expenses and reduce the unequal tax burden between the states by replacing state income taxes with a centralised tax system. The legislation could not expressly prohibit state income taxes (s. 51(ii) does not curtail the power of states to levy taxes) but the federal government's proposal made localised income tax extremely difficult politically. The federal government offered instead compensatory grants authorised by s. 96 of the Constitution for the loss of state income (State Grants (Income Tax Reimbursement) Act 1942).

The states rejected Canberra's regime and challenged the legislation's validity in the First Uniform Tax Case (South Australia v Commonwealth) of 1942. The High Court of Australia held that each of the statutes establishing Commonwealth income tax was a valid use of the s. 51(ii) power, in which Latham CJ noted that the system did not undermine essential state functions and imposed only economic and political pressure upon them.

The Second Uniform Tax Case (Victoria v Commonwealth (1957)) reaffirmed the court's earlier decision and confirmed the power of the federal government's power to make s. 96 grants conditionally (in this case, a grant made on the condition that the recipient state does not levy income tax).

Since the Second Uniform Tax Case, a number of other political and legal decisions have centralised fiscal power with the Commonwealth. In Ha vs. New South Wales (1997), the High Court found that the Business Franchise Licences (Tobacco) Act 1987 (NSW) was invalid because it levied a customs duty, a power exercisable only by the Commonwealth (s.90). This decision effectively invalidated state taxes on cigarettes, alcohol and petrol. Similarly, the imposition of a Commonwealth goods and services tax (GST) in 2000 transferred another revenue base to the Commonwealth.

Consequently, Australia has one of the most pronounced vertical fiscal imbalances in the world: the states and territories collect just 18% of all governmental revenues but are responsible for almost 50% of the spending areas. Furthermore, the centralisation of revenue collection has allowed Canberra to force state policy in areas well beyond the scope of its constitutional powers, by using the grants power (s.96) to mandate the terms on which the states spend money in areas over which it has no power (such as spending on education, health and policing).

Local governments (called councils in Australia) have their own taxes (called rates) to enable them to provide services such as local road repairs, local planning and building management, garbage collection, street cleaning, park maintenance services, libraries, and museums. Councils also rely on state and federal funding to provide infrastructure and services such as roads, bridges, sporting facilities and buildings, aged care, maternal and child health, and childcare.

In 2000, a goods and services tax (GST) was introduced, similar to the European-style VAT.{{Cite web|title=A brief history of Australia's tax system {{!}} Treasury.gov.au|url=https://treasury.gov.au/publication/economic-roundup-winter-2006/a-brief-history-of-australias-tax-system|access-date=2024-12-18|website=treasury.gov.au}}

File:ABS-6202.0-LabourForceAustralia-LabourForceStatusBySex SeasonallyAdjusted-UnemploymentRate-Persons-A181525X.svg

File:ABS-6354.0-JobVacanciesAustralia-JobVacanciesStatesTerritories-JobVacancies-Australia-A590696A.svg

According to the Australian Bureau of Statistics (ABS) seasonally adjusted estimates, the unemployment rate increased increased 0.1 points to 4.1% in March 2025 while the labour force participation rate increased 0.1 points to 66.8%. The participation rate for 15- to 24-year-olds decreased by 0.4 points to 69.9% while the unemployment rate for this group decreased by 0.1 points to 8.9%.{{cite web|title=Labour Force, Australia – March 2025|url=https://www.abs.gov.au/statistics/labour/employment-and-unemployment/labour-force-australia/mar-2025|publisher=Australian Bureau of Statistics|date=17 April 2025|access-date=17 April 2025}} According to the ABS, in February 2024, the underemployment rate remained steady at 5.9%, while the underutilisation rate (the unemployed plus the under-employed) decreased by 0.1 points to 9.9% in trend terms.

According to Roy Morgan Research the unemployment rate in April 2019 was 8.9%, while Australian workers who were considered either unemployed or underemployed was estimated to be 17.7% (2.381 million) in the same month.{{cite web|title=Roy Morgan Unemployment & Under-employment Estimates (2005–2019)|url=http://www.roymorgan.com/morganpoll/unemployment/underemployment-estimates|website=Roy Morgan Research|access-date=16 May 2019|archive-date=12 November 2020|archive-url=https://web.archive.org/web/20201112014509/http://www.roymorgan.com/morganpoll/unemployment/underemployment-estimates|url-status=dead}} Around 4.219 million were estimated to be in part-time employment.{{cite web|title=Roy Morgan Employment Estimates (1999–2019)|url=http://www.roymorgan.com/morganpoll/unemployment/estimates-detailed|website=Roy Morgan Research|access-date=16 May 2019|archive-date=28 November 2020|archive-url=https://web.archive.org/web/20201128203822/http://www.roymorgan.com/morganpoll/unemployment/estimates-detailed|url-status=dead}}

In 2007, 228,621 Newstart unemployment allowance recipients were registered, a total that increased to 646,414 or 5.3% of the total labour force by March 2013.{{cite news|title=Call for end to welfare poverty|url=http://www.theaustralian.com.au/national-affairs/call-for-end-to-welfare-poverty/story-fn59niix-1226758553935?from=public_rss&net_sub_uid=44933799#|access-date=15 November 2013|newspaper=The Australian|date=13 November 2013|author=Patricia Karvelas}} As of December 2018, the number of Newstart recipients stands at 722,923 or 5.4% of the labour force.{{cite web|title=DSS Demographics December 2018|url=http://data.gov.au/dataset/dss-payment-demographic-data/resource/adbe8196-5669-4f33-b01a-65b04ad41b55|publisher=data.gov.au|access-date=28 July 2017}}

The accuracy of official unemployment figures has been brought into question in the Australian media due to discrepancies between the methods of different research bodies (Roy Morgan versus the ABS), differing definitions of the term 'unemployed' and the ABS' practice of counting under-employed people as "employed".{{cite news|last=Bite|first=Natasha|url=http://www.news.com.au/national-news/under-employed-numbers-on-the-rise/story-fncynjr2-1226556124515|work=News.com.au|title=Under-employed numbers are on the rise too masking unemployment figures|date=18 January 2013|access-date=11 March 2013|archive-date=23 September 2020|archive-url=https://web.archive.org/web/20200923181855/https://www.news.com.au/national/under-employed-numbers-on-the-rise/news-story/19e255e53425f16a720d8a91d923c507|url-status=dead}}{{cite news|title=Doing a job on the employment figures|url=http://www.abc.net.au/news/2012-05-14/janda-doing-a-job-on-employment-figures/4009594|access-date=15 November 2013|publisher=ABC News|location=Australia|date=14 May 2012|author=Michael Janda}}

As of February 2024, the Australia labour force were employed in the following industries (seasonally adjusted) :{{cite web|title=Labour Force, Australia, Detailed|url=https://www.abs.gov.au/statistics/labour/employment-and-unemployment/labour-force-australia-detailed/latest-release|publisher=Australian Bureau of Statistics|access-date=19 May 2024|date=24 April 2024}}

According to the Australian Graduate Survey done by Graduate Careers Australia, full-time employment for newly qualified professionals from various occupations (around four months after the completion of their qualifications) experienced some declines between 2012 and 2015.{{cite web|title=Australian Graduate Survey|url=http://www.graduatecareers.com.au/research/surveys/australiangraduatesurvey/|website=Graduate Careers Australia|access-date=26 August 2017|archive-url=https://web.archive.org/web/20170827054424/http://www.graduatecareers.com.au/Research/Surveys/australiangraduatesurvey/|archive-date=27 August 2017|url-status=dead}}; {{cite web|title=Gradstats|url=http://www.graduatecareers.com.au/research/researchreports/gradstats/|website=Graduate Careers Australia|access-date=26 August 2017|archive-url=https://web.archive.org/web/20170827002356/http://www.graduatecareers.com.au/research/researchreports/gradstats/|archive-date=27 August 2017|url-status=dead}} Some examples are:

The Graduate Careers Survey 2014 explained, "However, GCA's Beyond Graduation Survey (BGS) indicates that the middle- and longer-term outlook is very positive, with the employment figures for 2010 graduates growing by 14 percentage points three years later." The Beyond Graduation Survey 2013 included 12,384 responses{{cite web|title=Beyond Graduation 2013|url=http://graduatecareers.com.au/wp-content/uploads/2014/05/Beyond_Graduation_2013_%28final%29.pdf|website=Graduate Careers Australia|access-date=29 August 2017|year=2014|archive-url=https://web.archive.org/web/20170313180756/http://graduatecareers.com.au/wp-content/uploads/2014/05/Beyond_Graduation_2013_%28final%29.pdf|archive-date=13 March 2017|url-status=dead}} and the Graduate Careers Survey 2014 survey included 113,263 responses ("59.3 per cent of the almost 191,000 Australian resident graduates who were surveyed responded to the AGS.")

The professional associations of some of these occupations expressed their criticism of the immigration policy in 2014.{{cite web|url=http://www.theaustralian.com.au/higher-education/dentists-join-the-growing-calls-for-cap-on-student-uni-places/news-story/2a59ee5946cf7f2040f98c601fd50be3|title=Dentists join the growing calls for cap on student uni places|last=Ross|first=John|date=2 April 2014|website=The Australian|access-date=29 August 2017}}{{dead link|date=February 2024|bot=medic}}

Note: All data in the table above is seasonally adjusted.{{cite web|title=Labour Force, Australia – States and Territories|date=17 April 2025|url=https://www.abs.gov.au/statistics/labour/employment-and-unemployment/labour-force-australia/mar-2025#states-and-territories|publisher=Australian Bureau of Statistics|access-date=17 April 2025}}

File:ABS-5676.0-BusinessIndicatorsAustralia-BusinessGrossOperatingProfitsCurrentPrices-GrossOperatingProfits-TotalState-TotalIndustry-CurrentPrice-TotalScp scope-A3531229A.svg

{{Main|List of largest Australian companies}}

{{Main|Coal companies of Australia|Energy in Australia|Mining in Australia}}

File:Australian Energy resources and major export ports map.svg

In 2019, the country was the 2nd largest world producer of gold;[https://pubs.usgs.gov/periodicals/mcs2021/mcs2021-gold.pdf USGS Gold Production Statistics] 8th largest world producer of silver;[https://pubs.usgs.gov/periodicals/mcs2021/mcs2021-silver.pdf USGS Silver Production Statistics] 6th largest world producer of copper;[https://pubs.usgs.gov/periodicals/mcs2021/mcs2021-copper.pdf USGS Copper Production Statistics] the world's largest producer of iron ore;[https://pubs.usgs.gov/periodicals/mcs2020/mcs2020-iron-ore.pdf USGS Iron ore Production Statistics] the world's largest producer of bauxite;[https://pubs.usgs.gov/periodicals/mcs2021/mcs2021-bauxite-alumina.pdf USGS bauxite alumina Production Statistics] the 2nd largest world producer of manganese;[https://pubs.usgs.gov/periodicals/mcs2021/mcs2021-manganese.pdf USGS Manganese Production Statistics] 2nd largest world producer of lead;[https://pubs.usgs.gov/periodicals/mcs2021/mcs2021-lead.pdf USGS Lead Production Statistics] 3rd largest world producer of zinc;[https://pubs.usgs.gov/periodicals/mcs2021/mcs2021-zinc.pdf USGS Zinc Production Statistics] 3rd largest world producer of cobalt;[https://pubs.usgs.gov/periodicals/mcs2021/mcs2021-cobalt.pdf USGS Cobalt Production Statistics] 3rd largest producer of uranium;{{Cite web|url=http://www.world-nuclear.org/info/inf23.html|title=World Uranium Mining|access-date=28 April 2021|archive-date=26 December 2018|archive-url=https://web.archive.org/web/20181226012424/http://www.world-nuclear.org/information-library/nuclear-fuel-cycle/mining-of-uranium/world-uranium-mining-production.aspx|url-status=dead}} 6th largest producer of nickel;[https://pubs.usgs.gov/periodicals/mcs2021/mcs2021-nickel.pdf USGS Nickel Production Statistics] 8th largest world producer of tin;[https://pubs.usgs.gov/periodicals/mcs2021/mcs2021-tin.pdf USGS Tin Production Statistics] 14th largest world producer of phosphate;[https://pubs.usgs.gov/periodicals/mcs2021/mcs2021-phosphate.pdf USGS Phosphate Production Statistics] 15th largest world producer of sulfur;[https://pubs.usgs.gov/periodicals/mcs2021/mcs2021-sulfur.pdf USGS Sulfur Production Statistics] in addition to being the 5th largest world producer of salt.[https://pubs.usgs.gov/periodicals/mcs2021/mcs2021-salt.pdf USGS Salt Production Statistics] The country is also a major producer of precious stones. Australia is the world's largest producer of opal and is one of the largest producers of diamond, ruby, sapphire and jade. In non-renewable energies, in 2020, the country was the 30th largest producer of oil in the world, extracting 351.1 thousand barrels / day.[https://www.eia.gov/international/data/world/petroleum-and-other-liquids/annual-petroleum-and-other-liquids-production Annual petroleum and other liquids production] In 2019, the country consumed 1 million barrels / day (20th largest consumer in the world).[https://www.bp.com/content/dam/bp/en/corporate/pdf/energy-economics/statistical -review / bp-stats-review-2020-full-report.pdf Statistical Review of World Energy, June 2020] {{Dead link|date=January 2022 |bot=InternetArchiveBot |fix-attempted=yes}}[https://www.cia.gov/library/publications/the-world -factbook / rankorder / 2246rank.html The World Factbook – Central Intelligence Agency]{{dead link|date=July 2022|bot=medic}}{{cbignore|bot=medic}} The country was the 20th largest oil importer in the world in 2018 (461.9 thousand barrels / day). In 2015, Australia was the 12th largest world producer of natural gas, 67.2 billion m3 per year. In 2019, the country was the 22nd largest gas consumer (41.9 billion m3 per year) and was the 10th largest gas exporter in the world in 2015: 34.0 billion m3 per year.{{Cite web|url=https://www.cia.gov/library/publications/the-world-factbook/rankorder/2249rank.html|title=CIA. The World Factbook. Natural gas – production.|access-date=28 April 2021|archive-date=15 March 2016|archive-url=https://web.archive.org/web/20160315051210/https://www.cia.gov/library/publications/the-world-factbook/rankorder/2249rank.html|url-status=dead}} In the production of coal, the country was the 4th largest in the world in 2018: 481.3 million tons. Australia is the 2nd largest coal exporter in the world (387 million tons in 2018).[https://www.bp.com/en/global/corporate/energy-economics/statistical-review-of-world -energy.html Statistical Review of World Energy 2018] {{Dead link|date=January 2022 |bot=InternetArchiveBot |fix-attempted=yes}}

In 2014–15 mineral extraction in Australia was valued at 212 billion Australian dollars. Of this, coal represented 45,869 million, oil and natural gas 40,369 million, iron ore 69,486 million, gold ore 13,685 million, and other metals 7,903 million.{{cite web|url=http://www.abs.gov.au/ausstats/abs@.nsf/0/D96FCC4AEEA50923CA2568A90013940B?Opendocument|title=ABS – Mining|date=27 May 2016}}

Coal is mined primarily in Queensland, New South Wales and Victoria. Fifty-four per cent of the coal mined in Australia is exported, mostly to East Asia. In 2000–01, 258.5 million tonnes of coal was mined, and 193.6 million tonnes exported. Coal provides about 85% of Australia's electricity production.{{cite web|url=http://www.gc3.cqu.edu.au/modern-world/index.php#australia|title=The Importance of Coal in the Modern World – Australia|publisher=Gladstone Centre for Clean Coal|access-date=17 March 2007|archive-url=https://web.archive.org/web/20070208111031/http://gc3.cqu.edu.au/modern-world/index.php#australia|archive-date=8 February 2007|url-status=dead}} In fiscal year 2008–09, 487 million tonnes of coal was mined, and 261 million tonnes exported.{{cite web|url=http://www.abareconomics.com/publications_html/ams/ams_09/ams_sept09.pdf|title=Australia Mineral Statistics 2009– June Quarter|publisher=Australian Bureau of Agricultural and Resource Economics|access-date=3 October 2009|url-status=dead|archive-url=https://web.archive.org/web/20110707074336/http://www.abareconomics.com/publications_html/ams/ams_09/ams_sept09.pdf|archive-date=7 July 2011}} Australia is the world's leading coal exporter.International Energy Agency. (31 August 2008) Coal Information 2008. Organisation for Economic Cooperation & Development. {{ISBN|92-64-04241-5}}

The Australian mining corporations Rio Tinto Group and BHP are among the largest in the world.

Rio Tinto's Argyle mine in Western Australia was the second-largest diamond mine in the world. The Argyle mine opened in 1983 and has produced more than 95 per cent of Australia's diamonds, including some of the world's most valuable pink and red diamonds.{{cite news|last1=Pash|first1=Chris|title=Australia's biggest diamond mine is running out of diamonds|url=https://www.businessinsider.com.au/australias-biggest-diamond-mine-is-running-out-of-diamonds-these-are-the-key-players-in-the-race-to-replace-argyle-2018-3|access-date=8 January 2020|work=Business Insider Australia|date=29 March 2018|language=en|archive-date=14 November 2020|archive-url=https://web.archive.org/web/20201114164631/https://www.businessinsider.com.au/australias-biggest-diamond-mine-is-running-out-of-diamonds-these-are-the-key-players-in-the-race-to-replace-argyle-2018-3|url-status=dead}} Due to the depletion of ore, Argyle closed in 2020—the closure was expected to reduce Australia's yearly diamond output from 14.2 million carats to 134.7 thousand carats.{{cite news|title=Outlook for diamond mining in Australia after 2021 Argyle mine closure|url=https://www.mining-technology.com/comment/outlook-for-diamond-mining-in-australia/|access-date=8 January 2020|work=Mining Technology|date=2 July 2019|archive-date=29 October 2020|archive-url=https://web.archive.org/web/20201029024148/https://www.mining-technology.com/comment/outlook-for-diamond-mining-in-australia/|url-status=dead}}

{{Main|Manufacturing in Australia}}

The manufacturing industry in Australia has declined from 30% of GDP in the 1960s to 12% of GDP in 2007.{{cite web|url=http://www.blakemore.com.au/papers/Australia%20Made%20Paper.pdf|title=Australian Manufacturing (PDF)|access-date=20 May 2014|url-status=dead|archive-url=https://web.archive.org/web/20140125015016/http://blakemore.com.au/papers/Australia%20Made%20Paper.pdf|archive-date=25 January 2014}}

In 2008, four companies mass-produced cars in Australia.{{cite web|last=Hassall|first=David|url=http://www.goauto.com.au/mellor/mellor.nsf/story2/1B11FCD261CC6475CA2579DE00021DC5|title=Tomcar – New local vehicle manufacturer|publisher=GoAuto|date=12 April 2012|access-date=10 February 2014|archive-date=2 January 2013|archive-url=https://web.archive.org/web/20130102052652/http://www.goauto.com.au/mellor/mellor.nsf/story2/1B11FCD261CC6475CA2579DE00021DC5|url-status=dead}} Mitsubishi ceased production in March 2008, followed by Ford in 2016, and Holden and Toyota in 2017.{{cite news|url=http://www.abc.net.au/news/2017-10-03/toyota-car-production-ends-altona-after-50-years-manufacturing/9007624|title=Toyota workers out of jobs as car manufacturer closes Altona plant|publisher=ABC News|location=Australia|date=6 December 2017|access-date=9 October 2017}}

Until trade liberalisation in the mid-1980s, Australia had a large textile industry.{{cite web|last1=CIE|title=Final Report: Australian trade liberalisation – Analysis of the economic impacts|url=https://dfat.gov.au/about-us/publications/trade-investment/Documents/cie-report-trade-liberalisation.pdf|publisher=DFAT|access-date=15 January 2020|archive-url=https://web.archive.org/web/20200115231339/https://dfat.gov.au/about-us/publications/trade-investment/Documents/cie-report-trade-liberalisation.pdf|archive-date=15 January 2020|url-status=dead}} This decline continued through the first decade of the 21st century.{{cite web|url=http://www.aph.gov.au/About_Parliament/Parliamentary_Departments/Parliamentary_Library/pubs/rp/rp0809/09rp16|title=Australian manufacturing—structural trends 2001–02 to 2006–07|date=24 November 2008|access-date=9 July 2014}} Since the 1980s, tariffs have steadily been reduced; in early 2010, the tariffs were reduced from 17.5 per cent to 10 per cent on clothing, and 7.5–10% to 5% for footwear and other textiles.{{cite web|url=http://www.acci.asn.au/text_files/media_releases/2010/003-10.pdf|title=ACCI Welcomes textiles and car tariff cuts (ACCI media release 003/10)|author=Peter Anderson|date=1 January 2010|access-date=13 February 2010}}

As of 2010, most textile manufacturing, even by Australian companies, is performed in Asia.

File:ABS-6291.0.55.003-LabourForceAustraliaDetailedQuarterly-EmployedPersonsByIndustrySubdivisionSex-EmployedTotal-TextileLeatherClothingFootwearManufacturing-Persons-A2546111A.svg

{{Main|Agriculture in Australia|Australian wine}}

In 2019, the value added from agriculture, fishing and forestry combined made up approximately 2.1% of Australia's GDP.{{Cite web|url=https://data.worldbank.org/indicator/NV.AGR.TOTL.ZS?locations=AU|title=Agriculture, forestry, and fishing, value added (% of GDP) – Australia | Data}} 60% of farm products are exported. Irrigation is an important and widespread practice for a country where many parts receive low rainfall. Agriculture, forestry and fishing was the second-strongest {{clarify|strongest how?|date=December 2020}} industry from 2013 to 2015, with the number of employees growing from 295,495 in February 2013 to 325,321 in February 2015.[http://www.finder.com.au/press-release-careers-in-australia finder.com.au's Careers in Australia Report 2015]

IT-related jobs (such as computer systems design and engineering) are defined as Professional, Scientific and Technical Services by the Department of Education, Employment and Workplace Relations of Australia. IT job creation occurs mostly in the state capital cities of Australia.{{cite web|url=http://www.deewr.gov.au/Employment/ResearchStatistics/Documents/AustralianJobs.pdf|title=Employment Research Statistics|work=deewr.gov.au|access-date=20 May 2014|archive-url=https://web.archive.org/web/20120322131845/http://www.deewr.gov.au/Employment/ResearchStatistics/Documents/AustralianJobs.pdf|archive-date=22 March 2012|url-status=dead}}

Australia's "big four banks" (National Australia Bank, Commonwealth Bank, Australia and New Zealand Banking Group and Westpac) are among the 'World's 50 Safest Banks' as of April 2012.{{cite web|url=http://www.gfmag.com/tools/best-banks/11661-worlds-50-safest-banks-april-2012.html|title=WORLD'S 50 SAFEST BANKS 2012 | Global Finance|publisher=Gfmag.com|access-date=24 July 2012|archive-url=https://web.archive.org/web/20120729074232/http://www.gfmag.com/tools/best-banks/11661-worlds-50-safest-banks-april-2012.html|archive-date=29 July 2012|url-status=dead}}

Between 1991 and 2013, 36,720 mergers and acquisitions with a total known value of US$2,040 billion with the involvement of Australian firms have been announced.{{cite web|url=http://www.imaa-institute.org/statistics-mergers-acquisitions.html#MergersAcquisitions_Australia|title=Statistics on Mergers & Acquisitions (M&A) – M&A Courses | Mergers & Acquisitions Courses|publisher=Imaa-institute.org|access-date=2 January 2014|url-status=dead|archive-url=https://web.archive.org/web/20120106045040/http://www.imaa-institute.org/statistics-mergers-acquisitions.html#MergersAcquisitions_Australia|archive-date=6 January 2012}} In the year 2013, 1,515 transactions valued at US$78 billion had been announced which was a decrease in terms of numbers (−18%) and value (−11%) compared to 2012. The largest takeover or merger transaction involving Australian companies was the 2007 takeover of the Coles Group by Wesfarmers, totalling A$22 billion.{{cite news|last=Carson|first=Vanda|title=Wesfarmers buys Coles|url=http://www.theage.com.au/news/business/wesfarmers-buys-coles/2007/07/01/1183229003109.html|work=The Age|access-date=12 June 2011|location=Melbourne, Australia|date=2 July 2007}}

File:ABS-3401.0-OverseasArrivalsDeparturesAustralia-ShorttermMovementVisitorArrivals SelectedCountriesResidence-Original-NumberMovements-TotalCountryStay.Residence-A1831011L.svg.{{cite web|url=https://www.abs.gov.au/statistics/industry/tourism-and-transport/overseas-travel-statistics-provisional/latest-release|title=Overseas Travel Statistics, Provisional|publisher=Australian Bureau of Statistics|date=15 December 2020}}]]

{{Main|Tourism in Australia}}

In the financial year 2017/18, tourism represented 3.1% of Australia's GDP contributing A$57.2 billion to the national economy.{{cite web|publisher=Australian Bureau of Statistics|title=Tourism Satellite Account 2017–18:Key Figures|date=12 October 2021|url=http://www.abs.gov.au/ausstats/abs@.nsf/mf/5249.0?OpenDocument}} Domestic tourism is a significant part of the tourism industry, representing 73% of the total direct tourism GDP.

In calendar year 2018, there were 9.3 million visitor arrivals.{{cite web|url=http://www.tourism.australia.com/en/markets-and-stats/tourism-statistics/international-visitor-arrivals.html|title=Tourism statistics: International visitor arrivals|date=25 February 2022|publisher=Tourism Australia|access-date=7 June 2019|archive-date=7 June 2019|archive-url=https://web.archive.org/web/20190607022958/http://www.tourism.australia.com/en/markets-and-stats/tourism-statistics/international-visitor-arrivals.html|url-status=dead}} Tourism employed 646,000 people in Australia in 2017–18, 5.2% of the workforce. About 43.7% of persons employed in tourism were part-time. Tourism also contributed 8.0% of Australia's total export earnings in 2010–11.

Growing importance is being given to the economic contribution of the creative industries to the national economy. The United Nations Conference on Trade and Development (UNCTAD) recompiles statistics about the export and import of goods and services related to the creative industries.{{Cite web|title=Beyond 20/20 WDS|url=https://unctadstat.unctad.org/wds/ReportFolders/reportFolders.aspx?IF_ActivePath=P,10&sCS_ChosenLang=en|access-date=2021-12-29|website=unctadstat.unctad.org}} The World Intellectual Property Organization (WIPO) has assisted in the preparation of national studies measuring the size of over 50 copyright industries around the world.{{Cite web|title=The Economic Performance of Copyright-Based Industries|url=https://www.wipo.int/copyright/en/performance/index.html|access-date=2021-12-29|website=wipo.int|language=en}} According to the WIPO compiled data, the national contribution of Creative industries varies from 2% to 11% depending on the country.

The Australian Copyright Council (ACC) has been consistently compiling reports using the WIPO-guided framework on the impact of the copyright-based industries to Australia's economy in 2011,{{Cite web|last=Price Waterhouse Coopers|date=2011|title=The Economic Contribution of Copyright-Based Industries in Australia by the Australian Copyright Council|url=https://www.wipo.int/export/sites/www/copyright/en/performance/pdf/econ_contribution_cr_au.pdf|url-status=live|access-date=29 December 2021|publisher=WIPO|archive-url=https://web.archive.org/web/20130604120924/http://www.wipo.int/export/sites/www/copyright/en/performance/pdf/econ_contribution_cr_au.pdf|archive-date=4 June 2013}} 2012,{{cite web|title=The Economic Contribution of Copyright-Based Industries in Australia 2012|url=https://www.wipo.int/export/sites/www/copyright/en/performance/pdf/pwc_report_2012_australia.pdf|publisher=World Intellectual Property Organization (WIPO)}} and 2014.{{cite web|title=The Economic Contribution of Copyright-Based Industries in Australia 2014|url=https://www.wipo.int/export/sites/www/copyright/en/performance/pdf/pwc_report_2014_australia.pdf|publisher=World Intellectual Property Organization (WIPO)}} In the most up-to-date WIPO-supported study published in 2017,{{Cite web|last=PricewaterhouseCoopers Consulting (Australia)|date=September 2017|title=The Economic Contribution of Copyright-Based Industries in Australia|url=https://www.wipo.int/export/sites/www/copyright/en/performance/pdf/pwc_report_2017_australia.pdf|url-status=live|access-date=29 December 2021|publisher=WIPO|archive-url=https://web.archive.org/web/20180509015839/http://www.wipo.int:80/export/sites/www/copyright/en/performance/pdf/pwc_report_2017_australia.pdf|archive-date=9 May 2018}} the copyright industries contributed $122.8 billion to the Australian economy in 2016 amounting to 7.4% of Australia's total economic output. The 2016 figure represented an increase of $8.5 billion compared to 2011, with a growth in value added growing at 1.4% per annum (since 2011). Further, it found that these industries generated more economic output than the manufacturing, health care and mining sectors in 2016, and moved from being the 7th largest industry in 2011 to the 3rd in 2016.

{{Main|Media of Australia|Telecommunications in Australia}}

In 2018, Australia was ranked 19th out of 180 countries in accordance to press freedom. The media industry is highly consolidated, with News Corp Australia and Nine Entertainment publishing the majority of popular newspapers, owning multiple television and radio stations, and providing the two major Australian streaming services, Binge and Stan. Other major media companies include Ten Network, Seven West Media and the national broadcasters ABC and SBS.

{{Main|Education in Australia|Tertiary education in Australia}}

School attendance is compulsory in Australia, from the age of 5 up until approximately 16 (although it varies between each state and territory).{{cite web|url=http://www.deewr.gov.au/Schooling/Pages/overview.aspx|archive-url=https://web.archive.org/web/20110328132033/http://www.deewr.gov.au/Schooling/Pages/overview.aspx|archive-date=28 March 2011|title=Schooling Overview|publisher=Australian Government, Department of Education, Employment and Workplace Relations}} Australia also has an adult literacy rate that was estimated to be 99% in 2003.{{cite web|url=https://www.cia.gov/library/publications/the-world-factbook/fields/2103.html#136|title=Literacy|work=The World Factbook|access-date=10 October 2013|archive-date=24 November 2016|archive-url=https://web.archive.org/web/20161124171442/https://www.cia.gov/library/publications/the-world-factbook/fields/2103.html#136|url-status=dead}}

In the Programme for International Student Assessment, Australia regularly scores among the top five of thirty major developed countries (member countries of the Organisation for Economic Co-operation and Development). In 2018 there were 525,054 international students in Australia, comprising a market of 32,2 billion A$.{{Cite news|url=http://www.abc.net.au/news/2018-04-18/australia-hosting-unprecedented-numbers-international-students/9669030|title=Australia hosting unprecedented numbers of international students|date=18 April 2018|publisher=ABC News|location=Australia|access-date=18 June 2018}}

{{Main|Transport in Australia}}

{{Main|Transportation in Australia}}

File:GA20891.pdf

Australia's total transport activity contributed 7.9% to GDP in 2020–21,{{Cite web|date=31 October 2023|title=Australian Transport Economic Account: An Experimental Transport Satellite Account, 2010-11 to 2020-21|url=https://www.abs.gov.au/statistics/economy/national-accounts/australian-transport-economic-account-experimental-transport-satellite-account/latest-release|access-date=30 June 2024|publisher=Australian Bureau of Statistics|language=en}} being highly dependent on road transport. It is estimated that roads contribute to more than A$245 billion, to the economic activity, significantly serving to agriculture, forestry, fishing, manufacturing and construction industries. There are more than 300 airports with paved runways. Passenger rail transport includes widespread commuter networks in the major capital cities with more limited intercity and interstate networks. The Australian mining sector is reliant upon rail to transport its product to Australia's ports for export.

File:Australian renewable power plants map-en.svg

{{Main|Energy in Australia}}

The Australian economy is dependent on imported crude oil and petroleum products, the economy's petroleum import dependency is around 80%—crude oil + petroleum products.{{cite web|url=http://96.0.110.207/?page_id=2567|title=Oil import dependency Australia|publisher=Crude Oil Peak|date=January 2010|access-date=11 June 2011|archive-url=https://web.archive.org/web/20110811004448/http://96.0.110.207/?page_id=2567|archive-date=11 August 2011|url-status=dead}}

{{See also|List of the largest trading partners of Australia|List of exports of Australia|Free trade agreements of Australia}}

File:Map of countries with which Australia has free trade agreements.svg

In the second half of the 20th century, Australian trade shifted away from Europe and North America to Japan and other East Asian markets. Regional franchising businesses, now a $128 billion sector, have been operating co-branded sites overseas for years with new investors coming from Western Australia and Queensland.{{cite news|last=Blackie|first=Tony|title=Battle of the Brfukuands|work=Business Review Weekly|volume=30|issue=27|date=10 July 2008|pages=32–35}}

In the late 19th century, Australia's economic strength relative to the rest of the world was reflected in its GDP. In 1870, Australia had the highest GDP per capita in the world due to economic growth fuelled by its natural resources. However, as Australia's population grew rapidly over the 20th century, its GDP per capita dropped relative to countries such as the US and Norway. However, the Australian economy has been performing nominally better than other economies of the OECD and has supported economic growth for over 20 consecutive years.[http://www.economist.com/finance/displaystory.cfm?story_id=8931798 "Downwonder: The "lucky country" may not be so for too much longer"] @ The Economist – 29 March 2007. According to the Reserve Bank of Australia, Australian per capita GDP growth is higher than that of New Zealand, US, Canada and The Netherlands.[http://www.rba.gov.au/speeches/2007/sp-ag-160307.html "Australia in the Global Economy"] by Malcolm Edey the Assistant Governor (Economic) – Address to the Australia & Japan Economic Outlook Conference 2007 – Sydney – 16 March 2007. The past performance of the Australian economy has been heavily influenced by US, Japanese and Chinese economic growth.

[[File:Australia bonds.webp|thumb|Australia bonds

{{legend-line|#012169 solid 3px|30 year}}

{{legend-line|#61D836 solid 3px|20 year}}

{{legend-line|#929292 solid 3px|10 year}}

{{legend-line|#F8BA00 solid 3px|5 year}}

{{legend-line|#FF2600 solid 3px|2 year}}

{{legend-line|#73FDEA solid 3px|1 year}}

]]

{{Further|Australian government debt}}

Australia's net external debt exceeded $1 trillion in April 2017 as a result of Australia's structural current account deficits.{{cite web|url=https://www.smh.com.au/business/the-economy/australias-1-trillion-foreign-debt-level-should-worry-us-all-20170407-gvfsqq.html|title=Australia has $1 trillion foreign debt. Should we be worried?|work=The Sydney Morning Herald|date=8 April 2017|access-date=8 August 2017}} Although these deficits have narrowed over the last decade due to an increase in net merchandise trade, this effect has been partly offset by the return of Australian government debt; net federal debt was estimated at $326.0 billion in the 2016–17 federal budget{{cite web|url=http://www.budget.gov.au/2016-17/content/bp1/html/bp1_bs6-01.htm|title=Budget Paper No.1 2016–17|publisher=budget.gov.au|access-date=8 August 2017|archive-url=https://web.archive.org/web/20171213132022/http://www.budget.gov.au/2016-17/content/bp1/html/bp1_bs6-01.htm|archive-date=13 December 2017|url-status=dead}} of which 60% is owed to foreigners. The entirety of the debt has been accumulated through ten straight budget deficits as Australia had negative net government debt (i.e. The Australian government had net positive bond holdings) a decade earlier in the 2006–07 fiscal year.{{cite web|url=http://www.budget.gov.au/2006-07/overview/html/overview_06.htm|title=Australian Government is now debt free|access-date=8 August 2017|archive-url=https://web.archive.org/web/20171004015341/http://www.budget.gov.au/2006-07/overview/html/overview_06.htm|archive-date=4 October 2017|url-status=dead}}

There is substantial export to China of iron ore, wool and other raw materials, and over 120,000 Chinese students study in Australian schools and universities. China is the largest purchaser of Australian debt.[https://www.nytimes.com/2009/06/03/world/asia/03australia.html "Australia Feels Chill as China's Shadow Grows"] article by Michael Wines in The New York Times 2 June 2009. In 2009, offers were made by state-owned Chinese companies to invest $22 billion in Australia's resource extraction industry.

The Signing of the China-Australia Free-Trade Agreement, signed November 2014, has the potential to drastically increase Chinese Investments as agriculture and services become more lenient.

Australia's special investor visa program introduced in 2012 encouraged Chinese investment. The visa program fast-tracks visas and eases the residency requirement for a permanent visa for those ready to invest over five million Australian dollars into state government bonds, specific infrastructure and property investments. Wealthy Chinese interested in direct investment began looking to Australia after Canada started scaling back its investment visa program in 2012 and eliminated its main investor visa program in 2014. In early 2014 it was reported that the Australia's special investor visa was granted to 65 mostly Chinese millionaires who brought over $440 million into the country. By 2017, almost 90% of the more than 1,300 foreigners who used Australia's special investor visa program were from China. Australia also has an investor visa program with a required investment of one million Australian dollars but with more restrictions and a lengthier period of time to get a permanent visa.

In 2017, it was reported that Australia is the third-most popular destination for Chinese to invest wealth offshore, with a 7% increase in Chinese private wealth flowing into Australia while interest in the top two investment destinations, Hong Kong and the United States, fell by 18% and 3%, respectively. In 2017 there were 1.6 million high-net-worth Chinese (with at least 10 million Chinese yuan to invest) and 24 per cent of the 3,000 wealthy Chinese surveyed had private investments in Australia. Migration was one of the top three reasons for Chinese investment offshore.{{cite web|last=Needham|first=Kirsty|title=China's richest have $30 trillion to spend, and more investing in Australia|url=https://www.smh.com.au/business/world-business/chinas-richest-have-165-trillion-to-spend-and-more-investing-in-australia-20170620-gwuvh0.html|website=The Sydney Morning Herald|access-date=9 August 2017|date=20 June 2017}}

In 2018, in the Lowy Institute poll there had a sharp rise in the proportion of the Australian population who say the Australian government is "allowing too much investment from China".{{citation needed|date=February 2021}}

This number rose from 56 per cent in 2014 to 72 per cent in 2018.{{Cite web|url=https://www.sbs.com.au/news/australians-are-losing-trust-in-the-us-a-new-poll-shows|title=Australians are losing trust in the US, a new poll shows|work=SBS News}}

File:ABS-5302.0-BalancePaymentsInternationalInvestmentPositionAustralia-BalancePaymentsSummary-Original Quarter-CurrentAccount-A3533808F.svg

File:ABS-5302.0-BalancePaymentsInternationalInvestmentPositionAustralia-SelectedInternationalAccountsRatios-SeasonallyAdjusted Quarter-CurrentAccountRatiosGdp-A3572038X.svg

{{Main|Balance of payments of Australia}}

In trade terms, the Australian economy has had persistently large current account deficits (CADs) for more than 50 years.{{cite news|url=http://www.economist.com/node/8931798?story_id=8931798|title=The Australian economy: Downwonder The "lucky country" may not be so for too much longer|newspaper=The Economist|date=29 March 2007|access-date=11 June 2011}}[http://www.exonimmigration.com/future-of-australian-economy/ "Future of Australian Economy"] by Exon One of the factors that undermines balance of payments is Australia's export base, making it highly vulnerable to the volatility in the prices of commodity goods. In addition, due to a colonial heritage a lot of companies operating in Australia are foreign-owned and, as a result, Australia's net income outlay between it and the rest of the world is always negative; this results in persistent current account deficits even when there is a positive export.

Dependent upon commodities, the Australian government endeavoured to redevelop the Australian manufacturing sector. This initiative, also known as microeconomic reform, helped Australian manufacturing to grow from 10.1% in 1983–1984 to 17.8% in 2003–2004.Leading Edge, R: "Australia in the Global Economy", Tim Dixon and John O'Mahomy, page 133.

There are other factors that have contributed to the extremely high current account deficit in Australia such as lack of international competitiveness.{{cite web|url=http://www.iadb.org/regions/re1/econ/caballero_cowan_kearns.pdf|title=Fear of Sudden Stops: Lessons from Australia and Chile|publisher=iadb.org|access-date=28 May 2012|archive-url=https://web.archive.org/web/20130518225438/http://www.iadb.org/regions/re1/econ/caballero_cowan_kearns.pdf|archive-date=18 May 2013|url-status=dead}}

However, as Australia's CAD is almost entirely generated by the private sector, as outlined in Professor John Pitchford's 'Consenting Adults Thesis' in the early 1990s, there is an argument that the CAD is not a significant issue. Historically, Australia has relied on overseas capital to fill the gap between domestic savings and investment, and many of these investment opportunities could not have been pursued if Australia did not have access to foreign savings. This suggests that Australia's apparently low savings level and CAD are not necessarily a significant problem. As long as the investment that is being funded by overseas capital inflow generates sufficient returns to pay for the servicing costs in the future, the increase in foreign liabilities can be viewed as sustainable in the longer term.Tim Dixon & James O'Mahoney, Australia in the Global Economy 2010, Leading Edge Education, Pearson Australia

File:Australia's GNI per capita in 2015.png

According to the 2011 Credit Suisse Global Wealth report, Australia's wealth per adult had quadrupled over the past decade, and its total wealth was US$6.4 trillion. In the report Australia was the second-wealthiest country in the world behind Switzerland based on average wealth per adult, and had the highest median wealth in the world (US$222,000, nearly four times the amount of each US adult) and a proportion of people with wealth above US$100,000 that was eight times the world average. This was attributed to a resilient Australian dollar, property ownership levels and a strong labour market. Compared to the rest of the world, very few Australians had a net worth of less than US$1,000, which was attributed to relatively low credit card and student loan debt.{{cite web|url=http://finance.ninemsn.com.au/newsbusiness/8362821/australia-wealthiest-nation-in-world-report|title=Australia wealthiest nation in world, according to a new report|website=9 Finance|publisher=Nine.com.au|date=20 October 2011|access-date=24 July 2012|url-status=dead|archive-url=https://web.archive.org/web/20120721013637/http://finance.ninemsn.com.au/newsbusiness/8362821/australia-wealthiest-nation-in-world-report|archive-date=21 July 2012}} In 2013, Australia was identified by the Credit Suisse as retaining its 2012 position as the nation with the second-highest average wealth per adult (US$403,000);{{cite web|title=Global Wealth Reaches New All-Time High|url=http://www.thefinancialist.com/global-wealth-reaches-new-all-time-high/|work=The Financialist|publisher=Credit Suisse|access-date=10 October 2013|date=9 October 2013|archive-url=https://web.archive.org/web/20160729234134/https://www.thefinancialist.com/global-wealth-reaches-new-all-time-high/|archive-date=2016-07-29}} however, the nation's poverty rate was also reported to have increased from 10.2% in 2000–01 to 11.8% at the time of the 2013 report on global wealth.{{cite news|title=Richest nation but poverty increasing|url=http://www.theaustralian.com.au/news/latest-news/richest-nation-but-poverty-increasing/story-fn3dxiwe-1226738699752?from=public_rss&net_sub_uid=44933799|access-date=12 October 2013|newspaper=The Australian|date=12 October 2013|agency=Australian Associated Press}}

Despite the economic slowdown, in the 2014 Credit Suisse Global Wealth Report, Australia continued to have the second-highest average wealth per adult (US$430,800) and the highest median wealth (US$225,400), with a total wealth of $7.2 trillion. The average level of real assets (US$319,700) was the second-highest in the world after Norway and 60% of gross household assets. The report explained that this partly reflects a large endowment of land and natural resources relative to population, and also high urban real estate prices. Only 6% of Australians had a net worth below US$10,000, compared to 29% in the US and 70% for the world as a whole. The average debt was 20% of gross assets. The proportion of people with wealth above US$100,000 was the highest in the world (eight times the world average). Australia had 3.8% (1,783,000 people) of the top 1% of global wealth holders while having 0.4% of the world's adult population.{{cite web|author=Credit Suisse|author-link=Credit Suisse|title=Global Wealth Report 2014|url=http://economics.uwo.ca/people/davies_docs/credit-suisse-global-wealth-report-2014.pdf|publisher=University of Western Ontario|access-date=6 September 2017|page=57|date=1 October 2014}} The wealth share by Australia's top decile was 51.1% in 2000, 50.7% in 2007, and 51.1% in 2014.{{cite web|author=Credit Suisse|author-link=Credit Suisse|title=Global Wealth Report 2014|url=http://economics.uwo.ca/people/davies_docs/credit-suisse-global-wealth-report-2014.pdf|publisher=University of Western Ontario|access-date=6 September 2017|page=33|date=1 October 2014}} In 2016, Australia continued to be the second-wealthiest nation in terms of wealth per adult.

In 2017, Australia was the world's top destination for millionaires, beating the United States for the second consecutive year. An estimated 11,000 millionaires moved to Australia in 2016, compared with the 10,000 who moved to the United States. Australia was especially attractive to Chinese millionaires due to its relative proximity, cleaner environment, political and economic stability, and investor visa programs. Also, the primary reason for millionaires leaving China is top schools abroad that will give their children a better education and career connections.{{cite web|title=What you need to know about new Chinese wealth flowing into Australia|url=http://www.sbs.com.au/news/article/2014/02/18/what-you-need-know-about-new-chinese-wealth-flowing-australia|website=Special Broadcasting Service|access-date=9 August 2017|date=18 February 2014}}{{cite web|last=Frank|first=Robert|title=For Millionaire Immigrants, a Global Welcome Mat|url=https://www.nytimes.com/2017/02/25/your-money/wealth-immigration-millionaires-australia-canada.html|website=The New York Times|access-date=9 August 2017|date=25 February 2017}}

All in all over 43,150 deals have been completed national, inbound or outbound Australia. This cumulates to an overall value of US$2,554 billion. There was a strong upward trend between 1989 and 2007. In this peak year almost 3,100 deals took place, which is almost 60% more than in 2017, the current low. Australian companies are particularly investing in the fields of metals and minerals (15% of all deals from Australia into foreign countries). Runner-up is the oil and gas industry with only 6.4%.{{Cite news|url=https://imaa-institute.org/m-and-a-statistics-countries/|title=M&A Statistics by Countries|work=Institute for Mergers, Acquisitions and Alliances (IMAA)|access-date=23 February 2018}}

Here is a list of the top 10 deals with participation of Australian companies as the acquirer or target company:

In 2022 ACOSS released a report revealing that poverty is growing in Australia, with an estimated 3.3 million people, or 13.5% of the population, living below the internationally accepted poverty line of 50% of a country's median income. It also estimated that there are 761,000 (17.7%) children under the age of 15 that are in poverty. Indigenous Australians face significantly higher poverty rates, with 30% of Indigenous households in income poverty, emerging as the most socially and economically deprived group in Australia.{{Cite web|title=Chapter 13 – Indigenous Australians|url=https://www.aph.gov.au/parliamentary_business/committees/senate/community_affairs/completed_inquiries/2002-04/poverty/report/c13|access-date=3 September 2024|website=aph.gov.au}}

There were 105,237 people experiencing homelessness in Australia on census night in 2011. This equated to 1 in 200 Australians,{{cite web|url=http://www.abs.gov.au/ausstats/abs@.nsf/mf/2049.0|title=2049.0 – Census of Population and Housing: Estimating homelessness, 2011|publisher=Australian Bureau of Statistics|date=27 April 2023}} and represented an increase of 17% from the 2006 census, with the rate of homelessness increasing from 45 per 10,000 to 49 per 10,000.

The number of homeless people in Australia jumped by more than 14,000—or 14 per cent—in the five years to 2016, according to census data. The Australian Bureau of Statistics (ABS) said 116,000 people were homeless on census night in 2016, representing 50 homeless people per 10,000.{{cite web|url=https://www.abc.net.au/news/2018-03-14/homelessness-in-australia-jumps-14pc-over-five-year-period/9547786|access-date=11 December 2021|title=Homelessness growing worse in Australia, census data shows|publisher=ABC News|location=Australia|date=14 March 2018|author=Joanna Crothers}}

{{excerpt|Climate change in Australia|Economic impacts|subsections=yes}}

{{Portal|Australia}}

• Australia and the World Bank
• Home ownership in Australia
• Poverty in Australia
• List of Australian states and territories by gross state product
• Median household income in Australia and New Zealand
• Ranked list of states and territories of Australia

{{reflist|group=lower-alpha}}

{{reflist}}

• Macfarlane, I. J. (1998). [https://web.archive.org/web/20050624175754/http://www.rba.gov.au/PublicationsAndResearch/Bulletin/bu_oct98/bu_1098_2.pdf "Australian Monetary Policy in the Last Quarter of the Twentieth Century"]. Reserve Bank of Australia Bulletin, October 1998
• Parham, Dean. (2002). [https://web.archive.org/web/20140212150115/http://www.pc.gov.au/__data/assets/pdf_file/0009/9369/mrrag.pdf "Microeconomic reforms and the revival in Australia's growth in productivity and living standards"]. Assistant Commissioner – Productivity Commission, Canberra Conference of Economists Adelaide, 1 October 2002 (Adobe Acrobat *.PDF document)
• Millmow, Alex. A History of Australasian Economic Thought (Routledge, 2017), 250 pp. [http://eh.net/?s=Millmow online review]

{{Commons category}}

• [http://www.abs.gov.au/ Australian Bureau of Statistics]
• [https://www.finance.gov.au/ Department of Finance] {{Webarchive|url=https://web.archive.org/web/20230103144251/https://www.finance.gov.au/ |date=3 January 2023}}
• [http://www.oecd.org/australia/ Australia – OECD]

{{Economy of Australia}}

{{Navboxes|list1=

{{Australia topics}}

{{Business in Australia}}

{{Banking in Australia}}

{{APEC}}

{{Organisation for Economic Co-operation and Development}}

{{Oceania in topic|Economy of}}

{{World Trade Organization}}

}}

{{DEFAULTSORT:Economy of Australia}}

Australia

Australia