Changes

Since the 1980s, Australia has undertaken significant structural reform of its economy and has transformed itself from an inward-looking, highly protected, and regulated marketplace to an open, internationally competitive, export-oriented economy. Key economic reforms included unilaterally reducing high tariffs and other protective barriers to free trade, floating the Australian dollar, deregulating the financial services sector, including liberalizing access for foreign banks, increasing flexibility in the labor market, reducing duplication and increasing efficiency between the federal and state branches of government, privatizing many government-owned monopolies, and reforming the taxation system, including introducing a broad-based Goods and Services Tax (GST) and large reductions in income tax rates.

Since the 1980s, Australia has undertaken significant structural reform of its economy and has transformed itself from an inward-looking, highly protected, and regulated marketplace to an open, internationally competitive, export-oriented economy. Key economic reforms included unilaterally reducing high tariffs and other protective barriers to free trade, floating the Australian dollar, deregulating the financial services sector, including liberalizing access for foreign banks, increasing flexibility in the labor market, reducing duplication and increasing efficiency between the federal and state branches of government, privatizing many government-owned monopolies, and reforming the taxation system, including introducing a broad-based Goods and Services Tax (GST) and large reductions in income tax rates.

[[File:Salamanca-Market-2008 Australia.jpg|left|320px]]

[[File:Salamanca-Market-2008 Australia.jpg|left|320px]]

Australia enjoys a higher standard of living than any G7 country other than the United States. Australia's economic standing in the world is a result of a commitment to best-practice macroeconomic policy settings, including the delegation of the conduct of monetary policy to the independent Reserve Bank of Australia, and a broad acceptance of prudent fiscal policy where the government aims for fiscal balance over the economic cycle. Largely due to the fall in revenue as a result of the global economic downturn, net government debt is projected to reach about A$188 billion (U.S. $150.4 billion) in four years. The previous government, drawing from budget surpluses, created the “Future Fund” to provide for future liabilities resulting from the retirement of civil servants. The Government of Australia is predicting negative 0.5% growth in the 2009-2010 fiscal year; the International Monetary Fund (IMF) predicted growth to be negative 1.4% for 2009.

Australia has the highest standard of living in the G20, as well as the second highest standard of living in the world (after Norway)<ref>http://en.wikipedia.org/wiki/List_of_nations_by_HDI, Australian cities themselves often rank highly in standards of living surveys, Melbourne sometimes tops the list.</ref>. Australia's economic standing in the world is a result of a commitment to best-practice macroeconomic policy settings, including the delegation of the conduct of monetary policy to the independent Reserve Bank of Australia, and a broad acceptance of prudent fiscal policy where the government aims for fiscal balance over the economic cycle. Largely due to the fall in revenue as a result of the global economic downturn, net government debt is projected to reach about A$188 billion (U.S. $150.4 billion) in four years. The previous government, drawing from budget surpluses, created the “Future Fund” to provide for future liabilities resulting from the retirement of civil servants. The Government of Australia is predicting negative 0.5% growth in the 2009-2010 fiscal year; the International Monetary Fund (IMF) predicted growth to be negative 1.4% for 2009.

Over 2008, unemployment has risen to around 5.5% from 4.2%, and the labor market participation has remained at around 65%. Both the federal and state governments have recognized the need to invest heavily in water, transport, ports, telecommunications, and education infrastructure to expand Australia's supply capacity. The largest river system in Australia, the Murray-Darling, and related coastal lakes and wetlands in South Australia are critically threatened and the government has developed a plan to improve irrigation infrastructure and efficiency and buy back unused water allocations along the river.

Over 2008, unemployment has risen to around 5.5% from 4.2%, and the labor market participation has remained at around 65%. Both the federal and state governments have recognized the need to invest heavily in water, transport, ports, telecommunications, and education infrastructure to expand Australia's supply capacity. The largest river system in Australia, the Murray-Darling, and related coastal lakes and wetlands in South Australia are critically threatened and the government has developed a plan to improve irrigation infrastructure and efficiency and buy back unused water allocations along the river.