PESTEL ANALYSIS OF AUSTRALIA

Presented BBappaditya Chakroborty

Gourav Nag Indujyoti Kar

Flow Of Presentation

• Introduction• Political analysis of Australia• Economic analysis of Australia• Social Analysis of Australia• Technological analysis of Australia• Environmental analysis of Australia• Legal analysis of Australia

IntroductionLocation: Oceania, continent between the Indian Ocean

and the South Pacific Ocean• Capital: Canberra• Climate: generally arid to semiarid; temperate in south

and east; tropical in north• Population:22.9 million• Religions: Christianity (61.1%), no religion (22.3%),

undeclared(9.3%)• Languages in Australia: English is the primary

language used in Australia.

Introduction • It is the world's sixth-largest country by total area.• Australia is the world's 12th-largest economy and has the

world's fifth-highest per capita income. • Australia's military expenditure is the world's 13th-largest. With

the second-highest human development index globally, Australia ranks highly in many international comparisons of national performance, such as quality of life, health, education, economic freedom, and the protection of civil liberties and political rights.

• Australia is a member of the G20 , OECD , WTO , APEC , UN ,  Commonwealth of Nations , ANZUS and the Pacific Islands Forum.

• The Commonwealth of Australia is a federal constitutional monarchy under a parliamentary democracy. The Commonwealth of Australia was formed in 1901 as a result of an agreement among six-governing British colonies, which became the six states. The Commonwealth also includes two territories - Northern Territory (NT) and Australian Capital Territory (ACT).

• A governor-general represents the British monarch who is the designated head of state.

POLITICAL

• The Queen (Head of State), Governor-general, prime Minister

• The Prime Minister is a Member of Parliament

• The prime Minister sometimes chooses the cabinet but this depends on the policy of the winning party.

Government format

The Queen Elizabeth 2

• 150 members• Single seat

constituencies, which reflect the differing population of the state (eg NSW- 50 members, Tasmania – 6)

• Elections at least every three years

The House of Representatives

• 76 members• All states elect 12 regardless of

population, plus 2 ACT and 2 NT.• Senators are elected for a six years term

with half seats renewed every three years.

Senate

Liberal Party of Australia

(centre-right)

Main policies:• Economic

liberalization• Business and middle

class orientated

Main parties

National Party of Australia

(conservative)

Main policies:• Anti-union • Free-trade• Pro-mining• Rural and agriculture orientated

Australian Labor Party

(social democrat)• Strong national

government• Equal opportunities• Working class/union

orientated• Efficient and transparent

legal framework• Stable political

environment

ECONOMIC ANALYSIS OF AUSTRALIA

Economy situation• Australia has an enviable, strong economy with a per capita GDP

on par with the four dominant West European economies.• Australia's abundant and diverse natural resources attract high

levels of foreign investment and include extensive reserves of coal, iron ore, copper, gold, natural gas, uranium, and renewable energy sources.

• Australia also has a large services sector and is a significant exporter of natural resources, energy, and food.

• The Australian economy grew for 17 consecutive years before the global financial crisis.

Economic IndicatorsMarkets Last Reference Previous FrequencyCurrency 0.76 15-Mar 0.76 Daily

Government Bond 10Y 2.56 percent 15-Mar 2.56Daily

Stock Market 5814 Index points 15-Mar 5814 DailyGDP Last Reference Previous FrequencyGDP 1561 USD Billion 13-Dec 1561 Yearly

GDP Growth Rate 0.5 percent 14-Nov 0.5Quarterly

GDP Annual Growth Rate

2.5 percent 14-Nov 2.5 Quarterly

GDP Constant Prices 397341 AUD Million 14-Nov 397341Quarterly

Gross National Product 380643 AUD Million 14-Nov 380643 QuarterlyGDP per capita 37493 USD 13-Dec 37493 Yearly

Gross Fixed Capital Formation

102472 AUD Million 14-Nov 102472 Quarterly

GDP per capita PPP 42810 USD 13-Dec 42810Yearly

Economic IndicatorsLabour Last Reference Previous Frequency

Unemployment Rate

6.3 percent 15-Feb 6.3

Monthly

Employed Persons 11652 Thousand 15-Feb 11652 Monthly

Full Time Employment

10300 Persons 15-Feb 10300

Monthly

Wages 1129 AUD/Week 14-Nov 1129 QuarterlyPopulation 23.13 Million 13-Dec 23.13 Yearly

Retirement Age Women

64.5 15-Jan 64.5

Yearly

Retirement Age Men

65 15-Jan 65 Yearly

Minimum Wages 641 AUD 14-Dec 641

Yearly

Wage Growth 2.5 percent 14-Nov 2.5 Quarterly

Taxation in AustraliaTaxes Last Reference Previous FrequencyCorporate Tax Rate 30 percent 14-Jan 30

Yearly

Personal Income Tax Rate

45 percent 14-Jan 45YearlySales Tax Rate 10 percent 14-Jan 10Yearly

Social Security Rate

10.75 percent 14-Jan 10.75

Yearly

Social Security Rate For Companies

9.25 percent 14-Jan 9.25Yearly

Social Security Rate For Employees

1.5 percent 14-Jan 1.5Yearly

International trade• The new trade strategy is based on five key principles :• Unilaterism• non discrimination• separation• transparency• Indivisibility of trade policy and economic reform • Australia’s highest regional trade negotiation priority at present is the

conclusion of the Trans-Pacific Partnership Agreement.• Other priorities include the pursuit of Free Trade Agreements with Korea,

Japan, Malaysia, Indonesia, India, China and the Gulf Cooperation Council.

• The Government will pursue bilateral trade deals only where they offer net benefits to Australia and where they do not impede the progress of multilateral agreements.

Exchange rates• The Australian dollar is currently the fifth-most-traded currency in

the world foreign exchange markets behind the US dollar, the euro, the yen and the pound sterling

• The Australian dollar is popular with currency traders, because of the comparatively high interest rates in Australia, the relative freedom of the foreign exchange market from government intervention, the general stability of Australia’s economy and political system.

• The Australian economy operates with a floating exchange rate.• Australian dollar offers diversification benefits in a portfolio

containing the major world currencies, especially because of its greater exposure to Asian economies and the commodities cycle.

Social Analysis of Australia

AboriginesAustralia’s first

people were the Aborigines. They have occupied the continent for at least 40,000 years, and before the Europeans arrived in 1788 their population as probably between 300,000 and 750,000. They occupied a lot of the northern territory.

• Although Captain James Cook had sailed the length of the east coast in 1770 the British did not settle in Australia until 1788. The first ships arrived and brought 1,000 convicts from England. They called the area where they landed New South Wales.James Cook

• Historians still argue today about why the British settled in Australia. Some say that Britain was trying to find new places to send convicts because British wanted to use Australia’s natural resources or that they were attempting to stop other Europeans from claiming Australia.

Convicts migratory from Saint Martin De Re to Penal Colony at Cayenne in Guyana

The use of convict labor on the prisoners' ranch.

Port Arthur, Tasmania, Australia in1926 

Language• English is most commonly spoken by about 81%.• The next most common languages spoken at home are

Mandarin (1.7%), Italian (1.5%), Arabic (1.4%), Cantonese (1.3%), Greek (1.3%), Vietnamese (1.2%)

• Sign Language called Auslan, used by 5500 deaf people.

Education• Responsibility of individual states and territories• 4.5% GDP contributed for education• General school going age-> 5-16• Adult Literacy of 99%• 37 Govt funded & 2 Private Universities • Approximately 58 per cent of Australians aged from 25 to 64

have vocational or tertiary qualifications,  tertiary graduation rate of 49 per cent is the highest among OECD countries.

Cuisine

• Australia's 11 million sq Km fishing zone is the third largest in the world and allows for bountiful access to seafood which significantly influences Australian cuisine.

• Lobster, prawn, tuna, salmon, and abalone are the main ocean species harvested

• Few iconic Australian foods are Vegemite, Australian hamburger, Pavlova

Drink

SPORTSIn Australia it is usually very warm, so Australians love sport and other outdoor activities. The most popular are: surfing

swimming

cricket

rugby

Some Famous Australians

- What is the capital of Australia? a. Sydney b. Melbourne c. Canberra- Which city is the oldest and largest? a. Canberra b. Sydney c. Darwin - Which is a popular Australian animal? a. bear b. kangaroo c. fox- Who are the Australian natives? a. Eskimos b. Aborigines c. Indians- Who discovered Australia? a. Columbus b. Captain Cook c. Lewis and Clark - What is the official Language in Australia? a. English b. German c. Spain

Technological Analysis of Australia

Information and communication technology• Household access to the Internet has grown from 1.1 million

households in 1998 to 4.7 million in 2005–06.• There were 6.7 million active Internet subscribers in Australia in

September 2006, with more than 1.1 million using connections with speeds of 1.5 megabits per second (Mbps) or greater.

Research and innovation • Expenditure on research and development (R&D) in Australia

reached more than $15.7 billion in 2004–05, up more than 19% on the figure two years previously.

• Australian business accounted for the highest expenditure on R&D (54%), followed by higher education (27%).

New Discoveries and Inventions• Here are some of the highlights of Australia’s

Greatest Technological Achievements.

RefrigeratorElectric DrillBlack box Flight RecorderBionic EarXerox PhotocopyingWifi Lawn MoversAnti Hacking Software Kernel, etc

Environmental analysis of Australia

Environment

Australia is a large island continent and is one of the most biologically diverse countries in the world, with a large portion of its plants and animals and ecosystems found nowhere else. About five percent of Australia is national parks that provide excellent places from which to experience such diverse habitats as rainforests, deserts, coral reefs and woodlands, and the plant sand animals that inhabit them.

Environment issue 3 types:• International• National • local

International

Global warming: Australia, like many regions of the world, has already begun to experience the impacts of global warming. In recent years, severe wildfires and drought have not only caused widespread damage to the land, but also negatively impacted tourism and the economy. Perhaps the most noteworthy effect global warming has had on Australia can be seen on the Great Barrier Reef, where coral bleaching threatens the world’s most diverse ocean ecosystem.

National

Marine and native fauna conservation: The Australian Government uses the Environment Protection and Biodiversity Conservation Act 1999 (EPBC Act) to protect and manage threatened, migratory and marine species. Threatened species are listed under the EPBC Act.

Ocean dumping: Waters surrounding Australia's coastlines are protected from wastes and pollution dumped at sea by the Environment Protection (Sea Dumping) Act 1981 (the Sea Dumping Act). The Sea Dumping Act regulates the loading and dumping of waste at sea. Permits are required from the Department for all ocean disposal activities

Oil spill : The Australian Marine Oil Spill Centre (AMOSC) is an organisation set up by the petroleum industry to enable a quick and effective response to oil spills around the Australian coastline. The organisation is owned by the Australian Institute of Petroleum and is financed by nine participating oil companies and other industry-related companies.

Whaling: In 1986, Australia supported the introduction of a global moratorium on commercial whaling by the International Whaling Commission

Local

• Mining• Waste management• Logging and wood chopping• Soil salinity

Legal environment

• The Australian legal system is based on a fundamental belief in the rule of law, justice and the independence of the judiciary. All people—Australians and non-Australians alike—are treated equally before the law and safeguards exist to ensure that people are not treated arbitrarily or unfairly by governments or officials.

• The Australian Constitution of 1901 established a federal system of government, under which powers are distributed between the federal government and the states. Australian law has developed from English law.

High Court of Australia

• Australia has nine legal systems—the eight state and territory systems and one federal system. However, it is the state and territory criminal laws that mainly affect the day-to-day lives of most Australians. In all cases, defendants are considered to be innocent until proven guilty beyond all reasonable doubt.

• Each of the federal and state systems incorporates three separate branches of government—legislative, executive and judicial. Parliaments make the laws, the executive government administers the laws, and the judiciary independently interprets and applies them.

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