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Economic System Australia



 
Free market is the main characteristics of the economic system of Australia. The growth of the economy of Australia is phenomenal and this country is among the first five developed countries of the world. The four main components of the Australian economic system are trade, manufacturing, services and finance. In the beginning of the 21st century the Australian government had taken a pledge to further reform its economy. The standard of living of Australia has risen significantly in the last fifteen years and it is just below United States now.

Industrialization, private enterprises, large scale productions, high technology and natural resources are Australian economic system. Small businesses also play an important role in the economy of this country. The unemployment rate in this country speaks for its developing economy as 11% unemployment rate in 1992 has come down to just 5%.

The growth of the Australian economy began in the middle of the 19th century with woolen industry and the gold rush. The gold rush was also responsible for the population growth of the country which was very much needed by Australia at that point of time. The second phase of economic boom began during the Second World War and it continued till 1970.

The fundamentals of the Australian economy were further changed at the beginning of the new millennium. A new improved tax system was started which was favourable both for the individual and the businesses. The government is also striving towards building a more adaptable labour market and augmenting the living standards. Some major business sectors are also partially privatized. In the first decade of the new millennium it is expected that the growth would be around 3.5%. One of the most significant achievements is that in 2000 the labour productivity growth has even moved past United States.

The integral part of the economic system of Australia is the Australian Securities Exchange or ASX. The name of Australian Stock exchange was changed to Australian Securities Exchange only in December 2006. This stock market trades from 10 in the morning to 4 in the afternoon.

Taxation in Australia can be divided mainly in to two parts, federal taxation and state taxation. The taxes are not uniform all through out the country. The most important of all the taxes are income tax and business tax. Apart from these two taxes there are taxes like Goods and Services tax, Social Security Levy, Municipal tax, excise duties and Capital Gains tax. The main reason behind the phenomenal growth of the Australian economy is its stable government, healthy politics and huge natural resource. The knowledge based industries has evolved as another factor which has contributed to the exceptional growth of this country currently. At least twenty five thousand Information Communication and Technology companies are present in Australia currently.

International trade both export and import has contributed greatly to the development of the economy.
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