Australia is a vast continent and a country comprised of many smaller islands. Her landscape comprises of beautiful beaches, tropical forests, deserts, mountains, and plethora variety of wildlife, birds, and insects. When we talk about majestic size and area, Australia is the 6th largest country in the world.
The capital of the country is Canberra, while her most populated and crowded city is Sydney. If we look at the history of the continent, native Australians have been occupying and living in the Island for the past 65000 years. Dutch were the first earliest invaders who came to her shores in the 17th century, and then the British followed it in 1770. However, all the colonists and invaders decide to come together and lay the foundation of the commonwealth and united Australia on January 01, 1901. She has been a united country since then.
To learn more, we will take study how political, economic, social and technological factors are affecting the country collectively.
Here’s the PEST Analysis of Australia;
Political Factors Affect Australia
Transparent Political System
The administrative management system of the government is comprised of constitutional monarchy and liberal democracy. Queen Elizabeth the 2nd is the official head and leader of the country and prime minister is the head of the government. Australian governors and governor generals respect and treat queen at the state and federal levels respectively.
The management system of the government is fair and transparent, that’s why people have trust in her government. The country has two major political parties; the Australian labor party and the liberal party.
Alliances & Connections
Australia has very strong ties with the US and she is a member of the United Nations. She has also got membership and alliances with other world-leading organizations like Commonwealth of Nations, OECD, G20, ANZUS, Asia Pacific Economic Cooperation, ASEAN plus Six Mechanism, Pacific Island Forum, and World Trade Organization.
Criticism of Neighbours
Despite having a membership at the UN table and close relations with the US, the UN and her neighboring country New Zeeland has fiercely criticized her for poor treatment towards refugees, deportation laws, not caring for indigenous people, and violation of human rights.
The strong and stable political climate of the country has attracted the attention of investors because stability makes them feel to trust the system. As far as the economic policies of the county are concerned, Australia’s recent economic and political reforms have made her one of the top-ranking countries in the region.
Economic Factors Affect Australia
According to an estimate, Australian’s per capita is the 10th highest in the world comprising of 52952 US dollars. Nominal gross domestic product (GDP) of the country in 2020 is 1.375 trillion US dollars. The highest per capita means earning per citizen, it means that every citizen of the country is employed and earning well. When people are working and earning, then there will be lower unemployment, less crime and people will be happy. Happier and mentally satisfied people would perform better, and then the overall productivity of the country would rise.
The way her economy is progressing, her issues like inflation, business investment, and household income would be resolved sooner.
Best Choice for the Real Estate Investors
Businesses and investors who are interested in the real estate business, then the US currency exchange rate would make it favorable for them to invest. Real estate is a flourishing industry here in Australia; it allows to buy property at a less price, and sell it at a higher price sometimes later.
Although it is a great promising opportunity for investors, but much of the country’s resources are stuck in the real estate. No real productivity is happening; just renting prices are being multiplied.
Head Office of Foreign Companies
Many companies are moving and relocating their head offices into Australia because the business relocation here is a bit cheaper than other western countries for Asian companies.
Australian taxation policy and rules depend on the income; if the income is higher and it is more than roundabout 25 million dollars, then the standard 30% tax rate would apply. If it is less than 25 million dollars, then the tax rate is 27.5%. if income is $18200, then the rate is zero percent. In case, it is more than $18200, then the business has to pay 19% tax rate on every dollar over it.
Imports and Exports
Some of her prominent exports are oil, gas, gold, coal, wheat, beef, education, and financial services. On the other hand, Australian’s imports are fuel, machinery, electrical equipment, vehicles, mineral oils, pharmaceutical products, medical apparatus, furniture, and plastic. In 2017, the total imports of the country comprised of 221.4 billion US dollars.
Social Factors Affect Australia
The landscape of Australia so vast and majestic, but if you compare her size with the total population of the country, then it is much lower. According to an estimate, the total population of Australia in 2020 is approximately more than 25 million people. The average life expectancy of males and females is roundabout 80 and 84 years old accordingly.
After the 2nd World War, Australia allowed to mass immigrants to habitat the Island. Therefore, Australia has the world’s most multicultural and multi-ethnic society. That’s why the country is conscious about refugees and immigrants because they have had faced such multicultural and multi-ethnic issues in the past. What the world is facing today.
Three Social Classes
Australian society is divided and comprised of three parts; upper class, middle class, and working class. The upper class and middle class acquire big houses, expensive clothes, and luxury cars. The difference in both of these classes is the amount of money they have in the banks. But the outlook, lifestyle, and manners of both of up classes is almost the same. However, the working class is usually under the debt to maintain the same luxurious lifestyle set by the upper class.
Higher Education System
Australians prefer higher-tech education, and the selection of educational institution depends on status and wealth. Rich people would go to the private schools and colleges, and the working class have to attend the government schools.
Technological Factors Affect Australia
Australians economy is spending approximately 65 billion US dollars in the technology. It shows the country’s interest in the technological innovation. Local businesses and companies are investing and adapting the latest technology.
Tech Policies and Funding
Australian Nation Research Center usually takes the credit of the tech innovation and development. That’s why it’s irritating for some people that they and their organization should make a name of themselves.
Australian government has passed the law of removing encryption from the personal and private message. It is for security purposes. If hackers and outsiders get their hands on the private information of people, then it can be disastrous.
The Government says that by removing the encryption from the private messages of citizens would help the police to catch the criminals and terrorists. If the encryption is removed, then hackers can use the backdoors of the government and get access to the private information of people. Critics say that it’s an attack on the privacy of the people.
Conclusion: PEST Analysis of Australia
Australia is one of the world’s strong countries with beautiful landscape. The Government should discourage real estate investment, and encourage investment in the technological sector. The stable political environment of the country is admirable, and it’s one of the main reasons for attracting investors. Removing encryption is not a good step either in terms of security or privacy.
Image by CryptoSkylark