Australia is one of the largest countries on the planet comprising several small islands. The landscape consists of beaches, deserts, tropical forests, mountains, and wildlife. Canberra is the capital of Australia, but the most populated city is Sydney (Ride, 2021). Here is the PESTEL analysis of Australia.
Political Factors
Australia has a transparent political system. The administration of government is based on liberal democracy and constitutional monarchy. Since the management of the country is transparent and fair, this convinces people to trust the government. Australia has maintained strong ties with the United States and is a member of the United Nations. The country has alliances with different leading organizations like OECD, Commonwealth of Nations, G20, Asia Pacific Economic Cooperation World Trade Organization, ANZUS, ASEAN plus Six Mechanism, and Pacific Island Forum. The stable and strong political climate has attracted investors to the country (Shaw, 2020).
Economic Factors
Australia is ranked the 14th largest economy in the world. The country was less adversely affected by the COVID-19 lockdown in 2020. Its’ GDP growth is expected to be 3.1% by 2022. Household incomes, business investment, and inflation are expected to grow gradually. All the companies in Australia are obliged to pay a 30% tax rate on their taxable income. But small businesses are subjected to pay a reduced tax rate of 26%. Machinery, vehicles, mineral fuels including oil, delivery trucks, refined petroleum, types of equipment, electrical machinery, medical apparatus, pharmaceuticals, plastics, furniture, and precious metals are some of the major imports of Australia (David, 2021).
Social Factors
Australia has a low population density. The average life expectancy in the country differs by women around 84 years of age and men around 80 years old. Australia is a diverse country. Despite having large immigration requests and policies adopted after World War II, the topic is still very touchy for citizens. The Australian population is classified among three main social classes; upper class, middle class, and working class. The upper class consists of 5% to 10% of capital, ownership, and property being their main source of income. The middle class is comprised of a population who do not have manual jobs, and over 20% of the population is classified as working-class (Frue, 2019).
Technological Factors
Two organizations support most of Australia’s research and development. The Commonwealth Scientific and Industrial Research Organization was headquartered in Melbourne in 1926. This is an independent government agency that supports the research and development in almost all fields of biological and physical sciences except nuclear energy, clinical medicine, and science. DSTO (The Defense Science and Technology Organization) supports military research and development. Many issues dominate the current Australian science and technology policies, for instance, effective communication among industries, resources, and funding allocations etc (UK Essays, 2018).
Environmental Factors
Australia is one of the most beautiful countries in the world. It has stunning beaches, forests, and mountains. It is broadly known for amazing biodiversity. More than one million animals and plants are found in Australia. However, there are some environmental challenges that Australia has to face. For example, the country is known to be situated in the driest inhabited continent. Climate change is also a challenge. Water insecurity and infectious diseases are also major issues (David, 2021).
Legal Factors
Legal factors help in creating a stable business environment in the country, as the legal frameworks dictate the business rules, labour rights, pay regulations, and many other important factors. This is an important basic parameter, that would be indispensable in setting the standard of yardstick for all business ventures. The legal system of Australia is very favourable for commerce and trade. The country has fair rules and laws to regulate business operations, employee rights and consumer complaints. The country makes sure that its’ citizens are getting proper wages and are in good and safe working conditions (UK Essays, 2018).
Conclusion
Australia is a beautiful country with numerous potential for investors. The country has political stability and economic growth is also showing positive figures. The country is transparent and quickly adapts to policy changes and the global climate. Some new laws and policies affect data privacy and encryption which is deemed a step back by security experts and citizens.
References
David, J. 2021. PESTEL analysis of Australia. [Online], Available at: https://howandwhat.net/pestel-analysis-australia/, [Accessed on: 26th April, 2021].
Frue, K. 2019. PEST analysis of Australia. [Online], Available at: https://pestleanalysis.com/pest-analysis-of-australia/, [Accessed on: 26th April, 2021].
Ride, W. 2021. Australia. [Online], Available at: https://www.britannica.com/place/Australia, [Accessed on: 26th April, 2021].
Shaw, A. 2020. PEST analysis of Australia. [Online], Available at: https://www.marketingtutor.net/pest-analysis-of-australia/, [Accessed on: 26th April, 2021].
UK Essays, 2018. Pestel analysis of Australia. [Online], Available at: https://www.ukessays.com/essays/economics/pestel-analysis-of-australia-economics-essay.php?vref=1, [Accessed on: 26th April, 2021].