PRACTICE NOTES
Updated in January 2025
Introduction
Australia’s resilient economy, a talented multilingual labour force, favourable tax settings and a predictable political climate position it as a prime destination for overseas capital. Businesses also benefit from comparatively modest establishment costs, proximity to the Asia–Pacific, a dynamic finance industry, and a time zone bridging the United States market close and Europe’s opening. Before the global coronavirus (COVID‑19) outbreak, Australia ranked among the quickest‑expanding economies in the Organisation for Economic Co‑operation and Development (OECD). Relative to many OECD peers, it managed the immediate health and economic shocks of COVID‑19 effectively. As elsewhere in the OECD, though, the short‑run effects of domestic and international stimulus during the pandemic years—together with external influences such as the war in Ukraine and local issues including COVID‑19‑related construction backlogs—have driven stronger inflationary pressures in Australia and prompted a period of firm monetary
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