The paper "To What Extent Does Business Dominate Industry Policy in Australia" is a great example of business coursework. Industry policy in Australia is necessary to enhance the competitive edge of the country in the global stage. There are currently regulatory burdens and high cash costs hindering business. The change of industry policy will make Australia viable for doing business (Anderson, 2012). Adoption of the new policy will protect the industry from losing market share to other countries. The extent to which Australia business dominate industry policy depends on the nature of the business, business horizons of the business and government policy in different industries.
Most business dominates industry policy in terms of taxation, access to subsidies, research and development and the possibility of black market activities. Business dominance in industry policies depends on the nature of the industry and government interest in the particular industry. Policy implantation can take the form of taxes, subsidies or restriction of imports to protect small and medium businesses. This paper will focus on creative and mining industries and the impact of Australia business in relation to policy decisions making. Discussion Some business requires protection while others regulation.
There is stiff competition in the global mining industry. Rapid cost escalation in the mining industry will force Australian businessmen to lose market share. The Australia industry policy revolves around environment and planning, tax reforms and industry relations (World Bank, 2007). Punitive tax regimes will increase the cost of doing business and scare away foreign direct investment. Introduction of Minerals Resource Rent Tax was bad for doing business. The tax will make investors prefer to invest in overseas minerals in investing in Australia.
This is because of the exorbitant tax on mineral resources. Industry policy clears spells relationship between miners and suppliers. An industry policy that brings together buyers and sellers will encourage innovation and market efficiency. Industry policy that protects infant business will protect start-up businesses from breaking up before full establishment (IFC, 2012). It is the government that really creates the market. Continuous regulation of industry kills business as there are no perfect market and industries. In Australia, government intervention is to the extent of benefiting start-up business. This is unlike other countries where the role of government is to advance the business interest of big companies.
The four influential industries in Australia are gambling, banking, mining, and superannuation. The industry policy in Australia requires employers to deposit 9% of workers’ pre-tax wages in superannuation account (World Bank, 2013). The employers are not supposed to withdraw any of the money until retire. The new policy demands the deduction to increase to twelve per cent. This will make workers in Australia to be customers of the specified industry. The big four banks in Australia are among the top eight profitable banks in the world.
According to international monetary Fund, Australia enjoys a profitable banking system in the world. The industry policy allows acquisition of small banks by large established banks. Gambling industry is small but very lucrative in Australia (Smith, 2012). Creative industries in Australia are made of small and dynamic firms located in rural areas. The industry policy supports the creative business through nurturing talent. Favorable industry policy ensures local talent to be globally competitive. The growth of creative content intends to optimize commercial capacity in the country.
Cultural policy safeguards the business interest of creative talent in the country. The cultural policy will encourage creative business to develop more content that is globally competitive. The positive response of creative businesses will further economic investment and stimulate interest in the industry. Favorable industry policy in the country encourages local businesses to invest as there is a surety of interest (IMME, 2014).
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