Australia is a highly developed country with a market economy. As of 2021, Australia was the 13th-largest national economy by nominal GDP (Gross Domestic Product), the 18th-largest by PPP-adjusted GDP, and was the 25th-largest goods exporter and 20th-largest goods importer.
The Australian economy is set to become the world’s 13th largest economy in 2022, according to the International Monetary Fund. Australia’s nominal GDP will be around A$2.1 trillion (US$1.7 trillion). Australia is home to just 0.3% of the world’s population, but accounts for 1.6% of the global economy.
Australia took the record for the longest run of uninterrupted GDP growth in the developed world with the March 2017 financial quarter. It was the 103rd quarter and the 26th year since the country had a technical recession (two consecutive quarters of negative growth). As of June 2021, the country’s GDP was estimated at A$1.98 trillion.
The Australian economy is dominated by its service sector, which in 2017 comprised 62.7% of the GDP and employed 78.8% of the labor force. Australia has the tenth-highest total estimated value of natural resources, valued at US$9.8 trillion in 2017. At the height of the mining boom in 2009–10, the total value-added of the mining industry was 8.4% of GDP. Despite the recent decline in the mining sector, the Australian economy had remained resilient and stable and did not experience a recession from 1991 until 2020.
Australia’s economy is strongly intertwined with the countries of East and Southeast Asia, also known as ASEAN Plus Three (APT), accounting for about 64% of exports in 2016. China in particular is Australia’s main export and import partner by a wide margin.
Australia is a member of the APEC, G20, OECD and WTO. The country has also entered into free trade agreements with ASEAN, Canada, Chile, China, South Korea, Malaysia, New Zealand, Peru, Japan, Singapore, Thailand, and the United States. The ANZCERTA agreement with New Zealand has greatly increased integration with the economy of New Zealand.
Australia is well positioned to grow its resources, energy, agriculture, and education and tourism services exports to Asia’s rising 2.2 billion middle-class consumers expected by 2032.
Small and Medium Enterprises (SMEs) are the driving force behind the economic growth of Australia – out of 2.4 million businesses in Australia, the majority (2.35 million or 98 per cent) are small and/or medium businesses.
Nearly two-thirds of businesses are sole traders and more than a third employ 1-19 staff. Micro businesses, which employ 1 to 4 employees, account for an additional 25.7 per cent of all businesses. The remainder in the small business category (with 5 to 19 people) account for 8.9 per cent of all businesses.
Small and medium-sized enterprises (SMEs), contribute around 55 per cent to Australian GDP, and employ about two-thirds of the business workforce in Australia.
The Australian Tax Office define SMEs based on annual turnover and categorises small businesses as those with an annual turnover of $10 million or less. By their definition, medium businesses have a turnover of between $10 million and $250 million, and large companies have an annual turnover of more than $250 million.
Due to the size of their economies and other factors, the definition of SMEs is different in the United States and the European Union.
Australian Dollar (AUD$)
Australian Eastern Standard Time (GMT+10)
1 July to 30 June
10% (Known as Goods & Services Tax)
National Minimum Wage:
$20.33 per hour
Taxpayer Identification Numbers:
Tax File Number (TFN)
Australian Business Number (ABN)
GST Registration Number
Main trading partners:
China, Japan, South Korea, United States, India, Thailand, and Germany.