OECD Economic Surveys: Australia, 1998.

193 Pages·1997·0.923 MB·English

by  OECD

OECD
D
ECONOMIC
SURVEYS
C
1998
E
SPECIAL FEATURES
Corporate governance
Entrepreneurship
O
AUSTRALIA
(cid:211) OECD, 1998.
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OECD
ECONOMIC
SURVEYS
1997-1998
AUSTRALIA
ORGANISATION FOR ECONOMIC CO-OPERATION
AND DEVELOPMENT
Pursuant to Article 1 of the Convention signed in Paris on 14th December 1960,
and which came into force on 30th September 1961, the Organisation for Economic
Co-operation and Development (OECD) shall promote policies designed:
– to achieve the highest sustainable economic growth and employment and a rising
standard of living in Member countries, while maintaining financial stability, and
thus to contribute to the development of the world economy;
– to contribute to sound economic expansion in Member as well as non-member
countries in the process of economic development; and
– to contribute to the expansion of world trade on a multilateral, non-discriminatory
basis in accordance with international obligations.
The original Member countries of the OECD are Austria, Belgium, Canada,
Denmark, France, Germany, Greece, Iceland, Ireland, Italy, Luxembourg, the
Netherlands, Norway, Portugal, Spain, Sweden, Switzerland, Turkey, the
United Kingdom and the United States. The following countries became Members subse-
quently through accession at the dates indicated hereafter: Japan (28th April 1964),
Finland (28th January 1969), Australia (7th June 1971), New Zealand (29th May 1973),
Mexico (18th May 1994), the Czech Republic (21st December 1995), Hungary
(7th May 1996), Poland (22nd November 1996) and the Republic of Korea
(12th December 1996). The Commission of the European Communities takes part in the
work of the OECD (Article 13 of the OECD Convention).
Publie´ e´galement en franc¸ais.
(cid:211) OECD 1997
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Table of contents
Assessment and recommendations 1
I. Recent trends and short-term prospects 15
Re-accelerating output growth 15
Sluggish employment and persistent high unemployment 20
Low inflation 25
A narrowing current external deficit 28
The outlook to 1999 30
II. Macroeconomic policies 34
Monetary policy 34
Fiscal policy 45
III. Implementing structural reform: a review of progress 55
Industrial relations reform 55
Active labour market policies 65
Education and training 68
Reform of the health care system 70
Implementing the National Competition Policy 74
Unfinished infrastructure industry reforms 79
Tariff policy 81
Reform of the financial system 84
Tax reform 86
IV. Current issues in corporate governance 93
Corporate governance in Australia: an international perspective 94
Current issues 100
Assessment 115
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V. Entrepreneurship 116
Measuring entrepreneurship 116
Factors affecting entrepreneurship 126
The role of public authorities 137
Assessment 143
List of acronyms 145
Notes 147
Bibliography 156
Annex
I. Calendar of main economic events 161
Statistical annex and structural indicators 167
Boxes
1. Intergovernmental agreements on National Competition Policy 76
2. The role of corporate governance 95
3. The Australian business sector: an overview 117
Tables
Text
1. Demand and output 16
2. The labour market 22
3. Costs and prices 26
4. Current account trends 28
5. Short-term prospects 32
6. Changes in official interest rates 1994-97 37
7. Commonwealth budget developments 47
8. Budget measures and forecasts 49
9. Implementing the OECD Jobs Strategy: an overview 56
10. Key developments in the federal industrial relations system 59
11. Real GDP per capita 75
12. Business telecommunications charges 78
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13. Social security contributions and taxes on individual income and
payrolls, 1995 88
14. Average effective tax rates on capital and labour 91
15. Market capitalisation of listed domestic equity issues at year-end 96
16. Large share-holdings: an international comparison 97
17. Ownership of exchange-listed firms 98
18. Business sector investment-output ratios 99
19. Rates of return on capital in the business sector 100
20. Substantial shareholdings in All Ordinaries Index companies 110
21. A snapshot of the Australian business sector 118
22. Enterprises and enterprise creation by states and territories 123
23. Registration requirements and costs in a sample of OECD countries
for three legal forms 124
24. Bankruptcy proceedings 127
25. Compliance costs in small enterprises 128
26. Labour force status of workforce by region of birth, 1981 130
27. International comparison of informal investor characteristics 134
28. Government support for the business sector 138
29. Formal co-operation between companies 141
Statistical annex and structural indicators
A. Selected background statistics 168
B. Gross domestic product 169
C. Income and expenditure of households 170
D. Prices and wages 171
E. Balance of payments 172
F. Foreign trade by commodity 173
G. Foreign trade by area 174
H. Production structure and performance indicators 175
I. Labour market indicators 176
J. The public sector 177
v
Figures
Text
1. The current expansion compared 17
2. Contribution to GDP growth 18
3. Business fixed investment 19
4. Housing affordability 21
5. Output and employment 23
6. Patterns of employment 24
7. International comparison of consumer prices 27
8. Competitiveness and trade 29
9. The performance of monetary policy 36
10. Nominal interest rates 38
11. Credit to the private sector 39
12. International comparison of long-term interest rates 40
13. Real interest rates 41
14. Exchange rates 42
15. Monetary conditions indicator and the Taylor rule 44
16. Underlying budget balance 50
17. Revenues and underlying outlays 51
18. Net debt 54
19. Total factor productivity in the business sector 80
20. Effective rates of assistance in manufacturing 82
21. Marginal income tax rates, 1995 88
22. Sources of tax revenue, 1995 90
23. Enterprises and employment by industry 119
24. Export performance in South East Asia 121
25. Venture capital 132
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BASIC STATISTICS OF AUSTRALIA
THE LAND
Area (1 000 sq.km) 7 682.3 Population of major cities, 1995 (1 000):
Agricultural area, 1986-87, per cent of total 61 Sydney 3 770
Urban population, 1991, per cent of total 85 Melbourne 3 217
Brisbane 1 489
Perth 1 262
Adelaide 1 081
THE PEOPLE
Population, June 1996 (1 000) 18 289 Civilian employment, 1996 (1 000) 8 344
Number of inhabitants per sq.km 2.4 of which: Agriculture 424
Natural increase, 1996 (1 000) 125 Industry1 1 877
Net migration, 1996 (1 000) 111 Other activities 6 043
PARLIAMENT AND GOVERNMENT
Composition of Parliament following latest elections:
House of
Party Senate Representatives
Australian Democrats 7 –
Australian Labor Party 29 49
Independent 1 5
Greens 2 –
Liberal Party of Australia 31 75
National Party of Australia 5 18
Country Liberal Party 1 1
Total 76 148
Present government: Liberal/National Party coalition
Next general elections for House of Representatives: March 1999
PRODUCTION
Gross domestic product, 1996 Gross fixed capital formation, 1996
(A$ million) 499 548 Percentage of GDP 20.1
GENERAL GOVERNMENT SECTOR, PER CENT OF GDP, 1996
Current disbursement 35.6 Current revenue 35.2
Current transfers 13.5 of which: Direct taxes 17.8
FOREIGN TRADE
Main exports, 1996, per cent of total: Main imports, 1996, per cent of total:
Food, beverages and tobacco 21.4 Food, beverages and tobacco 4.4
Raw materials 19.7 Raw materials 2.3
Fuels 16.8 Fuels 6.2
Machinery and transport equipment 12.9 Machinery and transport equipment 47.0
Other manufactured products 29.2 Other manufactured products 40.1
THE CURRENCY
Monetary unit: Australian dollar Currency unit per US dollar, average of daily
figures:
Year 1996 1.2769
October 1997 1.3880
1. Including mining, electricity, gas and water, and construction.
Note: An international comparison of certain basic statistics is given in an annex table.
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This Survey is based on the Secretariat’s study
prepared for the annual review of Australia by the
Economic and Development Review Committee
on 13 November 1997.
•
After revisions in the light of discussions during
the review, final approval of the Survey for publication
was given by the Committee on 26 November 1997.
•
The previous Survey of Australia was issued in
December 1996.
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