Why Australia

Benchmark Report 2023

Discover why Australia is a
great investment destination

Image credit: Koorie Heritage Trust at Federation Square/Visit Victoria

Ministerial
ministerial foreword
foreword

Open, prosperous and talented, Australia is a hub and the Cochlear implant. We are positioned
for business. Our innovative economy attracts to become a renewable energy superpower.
investment from multinationals, start-ups and Our critical minerals, wind, hydrogen and solar
research organisations from around the world. industries are powering the global clean-energy
These investors are attracted by our strong, transition. The Albanese Government’s strong
globally connected economy that is projected to action on climate change has put us back in
grow by 1.6% in 2023. Our trade and investment lockstep with the rest of the world, making
relationships with the world’s fastest growing Australia among the most attractive markets for
economies mean we are a natural gateway for renewable energy investment as we grow to be a
international business, with preferential access to major exporter of renewable energy by 2030.
the dynamic Asian and Indo-Pacific markets.
There is no better place to do business than
Our strength is in our diversity. Australia is Australia. The Australian Government supports
multicultural and welcoming, with a highly investors through grants and incentives, including
educated, creative workforce. As a nation we A$25 billion for clean energy and renewables
are renowned for quality and innovation across projects, a A$20 billion Medical Research
multiple industries, including research and Future Fund as well as building an investment
education, agriculture and food, health, renewable pipeline of more than A$120 billion in transport
energy and technology. This reputation and our infrastructure and the National Broadband
quality of life attracts and retains skilled talent Network and mobile coverage.
from across the globe.
I am pleased to present the Why Australia
Our fast-growing tech sector is one of the largest Benchmark Report 2023 that shows why Australia
in the southern hemisphere valued at over continues to be a top destination for global
A$167 billion. Australia was the incubator for investment. Senator the Hon Don Farrell
Google Maps, wi-fi, the black box flight recorder Minister for Trade and Tourism

Why Australia Benchmark Report 2023 2

Contents
Introduction  5 A magnet for ambitious talent  28
No worries, we’re happy!  29
Chapter 1 – Fundamentals  7
The world’s 12th largest economy  8 Chapter 3 – A renewable energy superpower  31
Australia’s strong relative growth  9 A renewable energy superpower  32
A nation of high-income households  10 A natural leader in clean energy  33
Australia is a low-tax country  11 Australia’s power surge in wind and solar  34
Sophisticated financial markets and a large managed funds sector  12 Local ingenuity and Australia’s clean energy revolution  35
Good governance, strong institutions and the rule of law  13 A top destination for investment in renewables  36
Transparent regulation, open markets and efficient businesses  14 Australia is a solar powerhouse  37
Australia’s lifestyle cities are global drawcards  15 Huge reserves of minerals to power the transition to net zero  38
A leader in industrial-scale hydrogen  39
Chapter 2 – Innovation, technology & skills  17 The world’s second highest potential for solar power  40
Australia leads in niche technologies  18 A low-cost country for solar power generation  41
Top marks for talent attraction  19
A #1 ranking for new technology skills  20 Chapter 4 – Global ties  43
Our fast-growing, A$167 billion tech sector  21 Asian markets drive export success  44
A highly skilled workforce  22 Trade tops A$1 trillion  45
Top grades for higher education  23 A high-growth destination for A$4.4 trillion of foreign investment  46
Australia is a big investor in education  24 A magnet for investment from North America, Europe and Asia  47
High-impact research across multiple fields  25 FDI powers growth in Australia’s services sector  48
Australia’s top-ranking academic institutions  26 An open trading economy for services  49
Our universities aid sustainable development  27 A broad network of trade agreements  50

Why Australia Benchmark Report 2023 3

Australia: Open, prosperous
and talented

Why Australia?

Thanks to strong economic fundamentals and producer per capita in the world. And we have
prudent economic management, our economy is the resources, investment and patents to stay
expected to grow by 1.6% in 2023. We will again competitive.
outpace other advanced economies, whose
Australia’s openness to trade and foreign
growth rates will average 1.3% in 2023.
investment has been central to our long-term
Our workforce is talented, motivated and success. We are an export-driven economy.
highly skilled. This drives our success in multiple Seventy-five per cent of our trade is with
technology-driven industries. Classified as a single fast-growing economies in the Asia region1 .
industry, technology is now the third largest We have 17 free trade agreements (FTAs)
contributor to GDP in Australia. currently in force, including multiple regional
trade agreements in the Asia-Pacific region.
Australia is well placed to become a renewable
energy superpower. We have abundant solar and We are also a natural platform for commercial
wind resources. We also have vast deposits of expansion into Asian markets. With an open
critical minerals, including lithium. Today, we are economy, multiple FTAs and strong cultural links
innovators right across the renewable energy with Asia, we can help businesses from around the
supply chain. We are already the largest solar world to grow and expand in our region.

1. Asia region defined as economies located in Asia and Oceania.

Why Australia Benchmark Report 2023 5

Page heading Chart Heading
Chart Subhead

Body copy

Footnotes

Why Australia Benchmark Report 2023 6

01 Fundamentals

A growing economy that outperforms in global rankings

While many major economies are at risk of Our economic strength is based on sound
recession in 2023, the IMF has forecast that the fundamentals. Australia’s legal and governance
Australian economy will continue to grow. systems are transparent and trustworthy. We
are a global leader in the protection of property
Our positive outlook is built on strong
rights, including intellectual property rights.
recent performance. During 2021, Australia
Our low tax and adaptive regulatory
outperformed peer economies, growing by 5.2%.
environment make us a business-friendly nation.
This solidified our position as the world’s 12th
largest economy in 2021. For a small population, Australia is a rich
consumer market. We have the highest median
Australia continued to outperform other
wealth in the world. We also have the sixth
advanced economies during 2022, with a growth
largest number of high-income households. Our
rate of 3.7%. This compares to an estimated
US$7.3 trillion financial sector includes the
of 2.7% for advanced economies. Our success
world’s fifth largest pool of pension assets.
will likely continue. The IMF forecasts that
Australia’s economy will grow by 1.6% in 2023, Why Australia? Thanks to our strong economy,
compared to an average of 1.3% for advanced talented workforce, renewable energy
economies. resources, and open trade and investment,
Australia is well placed to lead and innovate in
the Asia-Pacific region.

Why Australia Benchmark Report 2023 7

The world’s 12th World’s largest economies in 2021

largest economy Percentage share of total world nominal GDP in US$

Strong growth in 2021 solidified Australia’s

position as the world’s 12th largest economy
in 2021. Nominal GDP was around A$2.2 trillion 4. Germany 4.4% 11. Russia 1.8%
19. Saudi Arabia 0.9% 1. US 23.7%
(US$1.6 trillion) in 2021. Australia is home to just 18. Netherlands 1.0% 20. Türkiye 0.8% 3. Japan 5.1%
0.3% of the world’s population, but accounts for 5. UK 3.3%
1.7% of the global economy.
15. Spain 1.5% 9. Canada 2.0%

2. China 18.3%
10. Korea 1.9%
7. France 3.0% 14. Iran 1.6%

16. Mexico 1.3%

ASEAN 3.4% (includes 17. Indonesia 1.2%)

17. Indonesia 1.2%
13. Brazil 1.7%

8. Italy 2.2%

6. India 3.3%

12. Australia 1.7%

Notes: 1. Across 196 economies. 2. The GDP for the top 20 largest economies
was US$78,346 billion or 81% of the world’s GDP in 2021. 3. The GDP for the
rest of the world was US$18,731 billion in 2021 or 19% of global GDP.

Sources: International Monetary Fund, 2022, World economic outlook,

October 2022 database; Reserve Bank of Australia, 2023, Foreign exchange
rates; Austrade.

Why Australia Benchmark Report 2023 8

Australia’s strong Change in real GDP1 , selected economies

relative growth Percentage change in 2023

5.9

Australia’s outlook remains strong. The IMF

forecasts the Australian economy will grow by 5.2

1.6% in 2023. This means Australia will again

outperform other advanced economies, which 4.5

are expected to grow by an average of just 1.3%.

Emerging market and developing economies (3.9%)
This follows Australia’s solid 5.2% growth in
2021 and a 3.7% in 2022. As an exporting nation,
our outlook partly reflects the prosperity of
our major trading partners. India, China and the
ASEAN-52 economies all expect to register solid
economic growth in 2023.

1.6 1.6 1.6

1.5 1.5
1.3 Advanced economies (1.3%)
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Sources: International Monetary Fund, 2023, World economic outlook,

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Why Australia Benchmark Report 2023 9

A nation of high- Number of households with disposable income of more than US$75,000 per annum

income households Selected economies1

Australia is a large consumer market and 2022 2030

Australian households have a high disposable
Region1
income. According to the Economist Intelligence
Unit (EIU), almost 6 million households generate US (1) 82.9m 98.9m
an income above US$75,000 per year.
This places Australia sixth in global rankings.
Germany (3) 6.9m 17.3m
The EIU forecasts continued growth, with
7.6 million high-income households by 2030.
Japan (4) 6.4m 11.7m

China (34) 0.4m 11.0m

Australia (6) 5.9m 7.6m

ASEAN-62 2.3m 5.6m

Sweden (23) 1.0m 3.0m

Hong Kong SAR (20) 1.2m 1.8m

Notes: 1. The number in brackets indicates the economy’s ranking in 2022

across 59 economies. 2. Association of Southeast Asian Nations. The forecast
Singapore (21) 1.1m 1.6m
includes Indonesia, Malaysia, Philippines, Singapore, Thailand and Vietnam.
Sources: Economist Intelligence Unit, 2022, Number of households with
disposable income of more than US$75,000 per annum, accessed 1 December New Zealand (27) 0.7m 1.1m
2022; Austrade.

Why Australia Benchmark Report 2023 10

Australia is a Tax revenue as a percentage of Gross Domestic Product (GDP) by country

low-tax country Percentage of GDP, 2021 or latest available

50
47
Australia has one of the lowest overall tax 45 Tax on personal income & corporate profits
rates of any high-income country in the world. 1 43 43 43 43
42 42 Other taxes
Our tax revenue represents 29% of our GDP, 40 40
40 39
compared to 34% across OECD countries. 38
Australian social security taxes2 represent 35
34 34
less than 1% of GDP. The average among the 33 33 33
32
38-strong OECD countries is 9%. Taxes on goods
30
29
and services represented 7% of Australia’s GDP, 28
27
compared to 11% across OECD countries.
24
23
21
20

10
Notes: 1. Measured as a percentage of GDP. Tax systems across countries vary
significantly and this makes it often difficult to make direct comparisons on a
like-for-like basis. A simple measure used by the OECD, and others, is to consider
the total ‘tax take’ of an economy. The tax take (or tax burden) is the ratio of
total tax revenues to GDP, at market prices. This ratio is a broad measure of a
country’s taxation impost which cuts across the various bases, rates, thresholds
and purposes, which distinguishes one system from another. 2. Social security 0
contributions/taxes as “compulsory payments paid to general government that

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Sources: Organisation for Economic Co-operation and Development, 2023,
Tax revenue, accessed 6 January 2023; Austrade.

Why Australia Benchmark Report 2023 11

Sophisticated Global significance of Australia’s financial markets

financial markets
and a large managed
funds sector US$7.3 trillion1 US$2.8 trillion6
Assets of Australian Pension assets*
financial institutions*
5th largest in the world
The Australian dollar is the sixth most traded Five times Australia’s nominal GDP
2nd largest in the world as a
currency globally. Today, Australia is home to *September 2022 pecentage of GDP
the world’s fifth largest pool of managed funds *2021

and 11th largest stock market. Australia’s

US$2.2 trillion managed funds sector is
underpinned by a mandated retirement savings US$2.2 trillion2,3 US$479 billion7
scheme, called superannuation. This has created Fund assets under Daily foreign exchange trade using
the world’s fifth largest pension pool. management* Australian dollar across 52 countries
5th largest in the world 6th most traded currency in the world
Note: 2. For international comparison, the Investment Company Institute 2nd largest in the Asia region4
excludes funds of funds. 4. Asia region defined as economies located in Asia
and Oceania. *September 2022
Sources: 1. Reserve Bank of Australia (RBA), 2023, Assets of financial
institutions; Australian Bureau of Statistics (ABS), 2023, Managed funds;
Australian Prudential Regulation Authority, 2023, Quarterly general insurance
performance statistics; ABS, 2023, Assets and Liabilities of Australian
Securitises; ABS, 2023, Australian national accounts: national income, US$1.5 trillion4 US$2.3 trillion8
expenditure and product; RBA, 2023, Foreign exchange rates, accessed
Stock market* International and domestic debt
via Macrobond in January 2023. 3. Investment Company Institute, 2023,
Worldwide market data. 5. World Federation of Exchanges, 2023, Equity
securities outstanding*
11th largest in the world
statistics; Saudi Stock Exchange, 2023, Exchange market statistics; London 9th largest in the world
Stock Exchange, 2023, LSE market cap by sector; Center for Research in 5th largest in the Asia region4
Security Prices, 2023, CRSP indices; Euronext, 2023, Euronext indices; 3rd largest in the Asia region4
*October 2022
Indonesia Stock Exchange, 2023, Jakarta stock exchange indices; Hong Kong
*Total outstanding value, March 2022
Exchanges & Clearing Limited, 2023, HKEX market cap by sector; accessed
via Macrobond on 10 January 2023. 6. Thinking Ahead Institute, 2022, Global
pension assets study. 7. Bank for International Settlements, 2022, Triennial
central bank survey of foreign exchange and OTC derivatives markets in
2022. 8. Bank for International Settlements, 2022, Debt securities statistics;
Austrade.

Why Australia Benchmark Report 2023 12

Good governance, Global rankings of Australia’s governance

strong institutions
and the rule of law
#1 Quality of bureaucracy
Australia’s success is built on strong #1 Legal system
Australian public servants have the
institutions. Our legal system is highly rated. Australia has a transparent and
highest level of specialisation and
fair legal system.1
Corruption is low. Our public service is agile, with technical qualification.1

the ability to formulate and implement sound

policies. We are a global leader in the protection
of property rights, including intellectual
property (IP) rights. Australia’s good governance
gives investors confidence. We provide a secure
base for multinationals that want to expand #1 Lowest risk of social unrest #1 External intervention

or set up new operations in the Asia-Pacific Globally, Australia has the lowest risk Australia’s government is free from the
of social unrest.1 influence and impact of external actors.2
region.

#4 Regulatory quality #7 Factionalised elites

Australia’s government has a strong Australia’s institutions are less likely to
ability to formulate and implement be fragmented by the brinksmanship
sound policies and regulations.3 and gridlock of ruling elites.2

Sources: 1. Economic Intelligence Unit, 2022, Viewpoint database. 2. Fund for

Peace, 2022, Fragile states index. 3. The World Bank, 2022, The worldwide
governance indicators. 4. Austrade.

Why Australia Benchmark Report 2023 13

Transparent Business efficiency and environment, 2022

regulation, open
markets and efficient
businesses Australia China India Japan Korea Norway Singapore UK US

The Heritage Foundation, 2022 Index of Economic Freedom in:

Australia’s pro-business environment attracts Financial freedom1 1 160 106 37 37 37 3 3 3

foreign investment and encourages new Trade freedom2 2 84 93 68 86 8 1 10 70

enterprise. According to the Institute for IMD World Competitiveness Yearbook 2022 Ranking in:
Management Development (IMD), Australia
Country credit rating 1 26 51 28 17 1 1 20 11
ranks highly in terms of competition legislation,
Environmental agreements3 1 33 50 11 55 10 35 1 60
number of days to start a business, judicial
effectiveness and access to credit. Australia Investment in telecommunications 4 4 34 1 32 15 33 55 50 14

has been a leader in the Heritage Foundation Financial card transactions 5

5 17 61 30 14 15 18 12 4

Economic Freedom Index since its inception in Number of days to start a business 5 31 51 37 26 9 2 15 9

1995. Globally, we rank first for financial freedom Judicial effectiveness 6 30 29 14 42 7 7 22 26

and second for trade freedom. This reflects
Stock markets6 6 38 14 24 36 7 9 25 12
our strong banking system and commitment to
Competition legislation 7 31 22 8 34 14 4 24 27
open trade.
Central bank policy 9 27 13 50 28 10 3 48 32

Notes: 1. Financial freedom is an indicator of banking efficiency as well as a EIU Business environment rankings 2022 in:
measure of independence from government control and interference in the
financial sector. 2. Trade freedom is a measure of the extent of tariff and non- Private enterprise 6 47 41 20 22 11 9 8 1
tariff barriers that affect imports and exports of goods and services.
Market opportunities 9 3 17 29 17 22 41 16 4
3. Number of international multilateral environmental agreements that have
been met. 4. As a percentage of GDP. 5. Financial card transactions US dollars
Overall business environment rating 10 42 46 21 23 10 1 18 2
per capita. 6. Stock markets provide adequate financing to companies.
Sources: The Heritage Foundation, 2022, Index of economic freedom; Institute
for Management Development, 2022, World competitiveness yearbook 2022;
Economist Intelligence Unit, 2023, EIU overall business environment rating;
Austrade.

Why Australia Benchmark Report 2023 14

Australia’s lifestyle Cost of living: City rankings in Asia and rest of world

cities are global 2022 global rankings of the Mercer cost of living index

drawcards
Cities ranked by cost of relocating
Seoul 14 employees (outside Asia)
Fresh talent keeps arriving. Australia’s vibrant Tokyo 9
Zurich, Switzerland 2
cities offer a laid-back, outdoor lifestyle and the
Tel Aviv, Israel 6
opportunity to expand horizons. Additionally, Beijing 10 Shanghai 12 New York, US 7
our cities are secure, pristine and well-managed. New Delhi 155 Shenzhen 13 London, UK 15
Taipei 28
This attracts families. Our high quality of life Los Angeles, US 17
Mumbai 127
is a key drawcard. Australia’s state capitals Hong Kong 1 San Francisco, US 19
Dhaka 98
have a competitive cost of living compared to Dubai 31 Manila 122 Dubai, United Arab Emirates 31
Bangkok 106
most major cities in the Asia region, according Munich, Germany 33

Paris, France 35
to Mercer’s 2022 Cost of Living Index. The index Hanoi 150
Milan, Italy 48
is used by companies to measure the cost of
Singapore 8 Lagos, Nigeria 55
relocating employees globally.
Toronto, Canada 89
Buenos Aires, Argentina 114

Notes: 1. The Mercer Cost of Living Index measures the cost of sending an
Brisbane 84
employee overseas. The index covers more than 200 goods and services,
in addition to currency fluctuations, cost inflation and accommodation Perth 97
instability. If a country lacks infrastructure or public services, the index Sydney 58
reflects the costs of additional compensation a company may need to provide Canberra 104
to their employees. This includes the cost of providing security. Australian
cities are cost-effective for expatriates owing to high quality infrastructure
and public services. 2. A higher ranking means a lower cost of living. For Adelaide 102
example, Hong Kong has the highest cost of living across the 225 cities.
Sources: Mercer, 2022, Cost of living index; Austrade. Melbourne 67

Why Australia Benchmark Report 2023 15

 Chart Heading
Chart Subhead

Why Australia Benchmark Report 2023 16

02 Innovation, technology
& skills
01 ROBUST ECONOMY
Highly skilled, tech-savvy talent that attracts global enterprise

Australia is home to a workforce that is skilled, We are also a tech-powered economy. Classified
talented and highly motivated. Seven Australian as a singlevelesti
industry, Australia’s outsized Lessit,
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Our scientific institutions rank in the world’s top
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Why Australia Benchmark Report 2023 17

Australia leads in Australia’s tech credentials

niche technologies

Our entrepreneurs and academics work well Over 800 fintech 577 medtech & digital
together. This enables Australia to pioneer companies1 health companies3
world-class technologies in agriculture, A$4 billion industry1 US$176 billion spent on health
education, financial services and health.
Ranked 6th in the world2 The 6th largest health expenditure per
Australian success stories include the capita in the world4
application of blockchain in finance; immersive US$6.4 billion medical device market in
simulation in education; robotics in medical 20225

procedures; and the Internet of Things in Ranked 2nd on quality of the healthcare
system 6
agriculture. Australia is also recognised as
a world leader in silicon-based quantum
computing research.
600 edtech 551 agritech
companies7 startups8
A$2.2 billion edtech market A$800 million invested annually
through Rural R&D Corporations9
13,000–strong workforce
8 Innovation Hubs received more
50% of companies are early-stage
than A$100 million investment for
startups
innovation adoption9

Sources: 1. Fintech Australia, 2023, What is Fintech? 2. Findexable, 2021,

Global fintech rankings report, accessed January 2023. 3. AusBiotech, 2022,
Biotech sector snapshot 2022. 4. Fitch Solutions, 2022, Worldwide medical
devices market factbook. 5. Fitch Solutions, 2023, Australia medical devices
report Q1 2023. 6. Foundation for Research on Equal Opportunity, 2023,
Introducing the FREOPP world index of healthcare innovation. 7. EduGrowth,
2022, Annual report 2022. 8. Tracxn, 2023, Agritech startups in Australia,
accessed 11 January 2023. 9. Department of Agriculture, Water and the
Environment, 2022, Delivering Ag2030.

Why Australia Benchmark Report 2023 18

Top marks for talent Talent attractiveness

attraction Index, 2019

0.7
0.63 0.63
Amid intense competition, Australia stands 0.62 0.61 0.61 0.61
0.59 0.59
out as one of the world’s most attractive 0.6
0.58
0.57 0.57
destinations for talented individuals. According 0.55
0.54
0.52 0.52
to the OECD’s talent attractiveness index, 0.50
Australia is the most attractive country in the 0.5
0.48

world for prospective talent. The index includes 0.45

factors such as quality of opportunities, income

and tax, future prospects, family environment, 0.38
0.4
skills environment, inclusiveness and quality 0.35

of life.

0.3

0.2

0.1

0.0

Denmark (13)
Australia (1)

Sweden (2)

Switzerland (3)

New Zealand (4)

Canada (5)

Ireland (6)

US (7)

Netherlands (8)

Norway (10)

UK (16)

France (22)

Spain (27)

Israel (30)

Mexico (34)

Türkiye (35)
Korea (23)
Germany (12)

Finland (18)

Japan (25)
Note: 1. The number in brackets indicates the economy’s ranking across
35 economies.
Sources: Organisation for Economic Co-operation and Development, 2023,
Data provided by the International Migration Division of the OECD; Austrade.

Why Australia Benchmark Report 2023 19

A #1 ranking for new Skills for using, adopting and adapting frontier technologies1 , 2019

technology skills Index

100
Australia is a nation of early adopters. In global 100
rankings, Australia scores highest for the
skills needed to use, adopt and adapt frontier 88
85
83 83
technologies. These skills make us one of the 82
80
80 79
most innovative countries in the world. Our 75
74 74
72
track record is already impressive. Australia was 71
67 67
the incubator for Google Maps, Wi-Fi, the black
box flight recorder and the cochlear implant. 60 58

The Economist Intelligence Unit reports that 53

50
Australia is now the most attractive place in the
world for tech companies to invest. Government
40
agencies are also early adopters. Oxford 37

Insights ranks the Australian Government 31

among the top eight in the world in terms of

ability to benefit from artificial intelligence. 20

Hong Kong SAR (31)

Australia (1)

Iceland (2)

Norway (5)

Sweden (7)

New Zealand (8)

Singapore (9)

Netherlands (10)

Israel (14)

Germany (16)

US (17)

France (19)

Korea (27)

Saudi Arabia (41)

Japan (49)

China (96)

India (108)
Brazil (53)
Canada (21)
UK (12)
Note: 1. The number in brackets indicates the economy’s ranking across 158
economies. 2019 is the latest year available as at February 2023.
Sources: United Nations Conference on Trade and Development, 2022,
Frontier technology readiness index, accessed 23 November 2022; Economist
Intelligence Unit, 2022, Preparing for disruption technological readiness
ranking; Oxford Insights, 2022, AI readiness index 2021; Austrade.

Why Australia Benchmark Report 2023 20

Our fast-growing, Technology sector contribution to Australian GDP

A$167 billion tech A$ billion

sector
Direct contribution Indirect contribution Target
$250bn
Australia has one of the biggest technology
industries in the Southern Hemisphere.
861,000
persons employed
The sector’s economic contribution to GDP
has increased 79% since 2016–17, reaching
A$167 billion in 2020–21. This equates to
65,000
jobs were created
around 8.5% of GDP. Rapid digital adoption $167bn during the
79%
COVID-19 crisis
during COVID-19 meant that Australia’s +26%
technology sector grew by 26% – or A$34 billion $133bn
– in the year to June 2021. The Tech Council
$124bn
$76bn A$640
of Australia has set a target for technology to
$110bn
$57bn
billion
deliver A$250 billion per annum to Australia’s
$94bn
$52bn sector
$47bn A$570 billion held
GDP by 2030. This would be the equivalent of $41bn by public firms
1.2 million jobs.
$92bn
$53bn $63bn $72bn $76bn 98%
of tech firms
are SMEs

2016–17 2017–18 2018–19 2019–20 2020–21 2030

Note: The direct tech sector is defined as internet publishing and

broadcasting, telecommunications services, internet service providers, web
search portals, data processing services, and computer system design and
related services.
Sources: Tech Council of Australia, 2021, The economic contribution of
Australia’s tech sector; Tech Council of Australia, 2022, Turning Australia into
a regional tech hub; Austrade.

Why Australia Benchmark Report 2023 21

A highly skilled Skilled workforce and innovation indicators – Global rankings

workforce

Australia’s skilled and educated workforce fosters Australia US UK France Germany Japan Korea China India Singapore
a culture of innovation. Australia ranks in the top
The Global Innovation Index 2022 Ranking in:
five countries for university education systems
School life expectancy, years 1 30 16 39 18 na 25 na 92 24
according to a 2022 study by INSEAD. We rank
Tertiary education 1
3 48 11 33 7 83 18 92 60 2
fifth in the world on the UN’s Human Development
Index, which measures literacy and education. Regulatory quality 5 21 15 25 13 19 32 77 81 1

Australia’s scientific publication scores are among Human capital and research 2
5 9 6 15 2 21 1 20 43 7

the world’s highest. We also score in the top four Females employed with advanced degrees 5 8 22 19 51 24 30 na 103 6

for scientific journal articles. Australia is rated as a Government’s online service 7 7 6 18 59 12 1 12 24 5

‘good place’ to live for immigrants. Around 29% of IMD World Competitiveness Yearbook 2022 Ranking in:
Australians were born overseas, and we are home
Student mobility3 2 30 8 26 23 44 40 55 59 5
to more than 270 distinct ancestries.
Foreign labour force 9 22 na 29 19 52 48 62 59 4

Notes: 1. Index composed by: the ratio of total tertiary enrolment to the The Global Talent Competitiveness Index 2022 Ranking in:
corresponded population. 2. Based upon: Government expenditure on
ICT infrastructure 4 1 2 4 15 23 9 13 30 39 3
education as a percentage of its GDP; school life expectancy; Government
funding per secondary pupil; and scores in reading maths and science from the
Personal safety 5
4 52 24 26 11 1 7 83 87 2
Programme for International Student Assessment. 3. Foreign tertiary–level
students per thousand inhabitants. 4. Comprises: mobile tariffs, handset Scientific journal articles 4 21 14 30 23 35 22 50 80 5
prices, internet access, SMS sent by population, population covered by at
least 3G, internet bandwidth, and internet access in schools. 5. Based on: High-level skills, global knowledge 4 7 9 24 37 40 18 86 83 1
deaths from interpersonal violence, perceived criminality, political killings, and
transportation-related fatalities. 6. Based upon QS World University rankings. University ranking 6
5 1 2 8 10 7 9 3 21 11
7. The number of newly registered firms per working-age persons. 8. Index
combines economic, social and educational indicators. Tolerance of immigrants 6 11 24 59 34 71 65 65 81 16
Sources: World Intellectual Property Organization, 2023, Global innovation index
Startups 7
6 na 1 28 74 100 na 17 114 14
2022; Institute for Management Development, 2022, World competitiveness
yearbook 2022; International Graduate School of Business Administration United Nations Human Development Report 2021–22 Ranking in:
(INSEAD), 2023, The global talent competitiveness index 2022; United
Nations, 2023, Human development report 2021–22; Australian Human Rights Human Development Index8 5 21 18 28 9 19 19 79 132 12
Commission, 2023, Face the facts: Cultural diversity; Austrade.

Why Australia Benchmark Report 2023 22

Top grades for higher Percentage of employed persons with tertiary education by industry1 – 2022

education

Education & training 77

Professional, scientific & technical services

Australia has one of the world’s most highly 76

educated workforces. Approximately 48% of Financial & insurance services 72

employed people hold a tertiary qualification. Healthcare & social assistance 65

This ratio has increased rapidly, from just 36% Public administration & safety 63
in 2010. In some sectors, more than 70% of Information media & telecommunications 58
employees have a tertiary education degree. Rental, hiring & real estate services 51
These sectors include ‘education and training’, Arts & recreation services 49
‘professional scientific and technical services’,
Electricity, gas, water & waste services 41
and ‘financial and insurance services’.
Wholesale trade 37

Administrative & support services 37

Transport, postal & warehousing 35

Mining 34

Manufacturing 31

Other services 29

Retail trade 28

Agriculture, forestry & fishing 25

Accommodation & food services 24

Construction 22

All-industry average: 36% (2010) All-industry average: 48% (2022)

Note: 1. Tertiary education refers to Advanced Diploma/Diploma or higher.

Sources: Australian Bureau of Statistics, 2022, Education and work, accessed
14 November 2022; Austrade.

Why Australia Benchmark Report 2023 23

Australia is a big Expenditure on educational institutions across OECD countries1

investor in education As a percentage of gross domestic product, 2019

Australia ranks fourth for spending on Total tertiary education

educational institutions among members of the 6.6 6.5 Primary, secondary education and
post-secondary non-tertiary education
OECD. At 6.1% of GDP, spending on education 6.2
6.1 6.0 6.0
institutions in Australia exceeds the OECD
5.7
average of 4.9%. Spending on tertiary education 5.5
5.4
5.3
increased from 1.5% of GDP in 2005 to 1.9% in 5.2 5.2
OECD average (4.9%)
2019. This raised Australia to sixth place among
4.6
OECD countries. 4.3 4.3

4.0
3.8

3.3
3.2

Korea (13)
Norway (1)

Chile (2)

Israel (3)

Australia (4)

UK (5)

US (6)

Canada (9)

Sweden (11)

Finland (14)

France (16)

Mexico (22)

Japan (29)

Italy (31)

Luxembourg (35)

Ireland (36)
Germany (25)
Denmark (12)

Spain (26)
Notes: 1. Expenditure on all public and private institutions. Values of expenditure
are expressed in US dollar-equivalent, after converting local currencies using
purchasing-power parity (PPP) conversion factors. 2. Latest data available from
OECD database do not include data from Costa Rica and Switzerland.
Sources: Organisation for Economic Co-operation and Development, 2022,
OECD.Stat; Austrade.

Why Australia Benchmark Report 2023 24

High-impact research Relative impacts of Australian scientific publications by research field, 2017–21

across multiple fields

Global average: 1.0
Our scientific research is highly ranked Computer science 1.75
internationally. Australian research publications Space science 1.69
achieve an impact that is at least 20% above the Multidisciplinary 1.66
global average in 20 out of 22 fields of academic Physics 1.62
research across a wide variety of disciplines. Clinical medicine 1.61
Australia’s six strongest categories of published Molecular biology & genetics 1.57
research are in computer science, space science, Materials science 1.57
multidisciplinary research, physics, clinical Engineering 1.53 Very highly ranked

medicine, and molecular biology and genetics. Chemistry 1.41

The 20 academic categories where Australia Biology & biochemistry 1.41

outscores the global average show a wide Microbiology 1.39

diversity of disciplines and topics. Environment/Ecology 1.38

Geosciences 1.37

Plant & animal science 1.36

Neuroscience & behavior 1.32

Immunology 1.27

Psychiatry/Psychology 1.24

Mathematics 1.24

Pharmacology & toxicology 1.21

Agricultural sciences 1.20 Highly ranked

Economics & business 1.18

Social sciences, general 1.15

0.0 0.5 1.0 1.5 2.0

Sources: InCites™, Clarivate Analytics, 2022, InCities dataset, accessed
22 November 2022; Austrade.

Why Australia Benchmark Report 2023 25

Australia’s top- Academic ranking of world universities, 2022

ranking academic
institutions
Economies Top 100 Top 200 Top 300 Top 400 Top 500 501 to Top 1 to
1000 Top 1000
1 US 39 62 85 106 127 69 196
Seven Australian institutions rank among the
2 China 9 30 46 66 83 102 185
world’s top 100 universities. 1 Our rankings 3 UK 8 21 25 33 38 25 63
are consistently improving. In 2004, just 14 4 Australia 7 8 18 22 24 9 33

Australian universities appeared in the top 500, 5 Canada 5 8 12 17 19 7 26

6 Germany 4 9 19 25 31 16 47
while in 2022, 24 Australian universities made
7 France 4 8 12 16 16 12 28
the grade. 2 Australia’s top-performing rankings 8 Switzerland 4 7 7 7 7 2 9
are: the University of Melbourne, the University 9 Netherlands 3 9 10 11 12 1 13
10 Sweden 3 5 6 8 10 3 13
of Queensland, the University of Sydney,
11 Israel 3 4 4 5 6 1 7
the University of New South Wales, Monash 12 Japan 2 6 8 10 13 19 32
University, the Australian National University, 13 Belgium 2 3 5 7 7 2 9

and the University of Western Australia. 14 Denmark 2 3 4 5 5 1 6

15 Singapore 2 2 2 2 2 1 3
16 Norway 1 2 2 3 3 4 7
17 Korea 1 1 7 8 11 19 30
18 Finland 1 1 1 2 5 2 7
19 Italy 0 4 8 11 17 29 46
20 Saudi Arabia 0 2 3 3 5 2 7
21 Spain 0 1 5 8 11 29 40
22 Austria 0 1 2 4 6 7 13
23 Ireland 0 1 1 3 3 4 7
24 Brazil 0 1 1 2 6 15 21
Notes: 1.According to the 2022 Academic Ranking of World Universities
(ARWU), published by the Shanghai Ranking Consultancy. Economies were 25 Russia 0 1 1 2 2 8 10
ranked according to the number of universities in the top 100. For evenly Top 1 to 25 economies 100 200 294 386 469 389 858
ranked economies, the number of universities in the top 200, top 300, top Top 26 to 62 economies 0 0 6 14 31 111 142
400 and top 500 was used as a tiebreaker.
Total 100 200 300 400 500 500 1,000
Sources: Shanghai Ranking Consultancy, 2022, The academic ranking of world
universities; accessed 10 October 2022; Austrade.

Why Australia Benchmark Report 2023 26

Our universities Top 100 Universities Times Higher Education Impact Rankings, 2022

aid sustainable Implementing the United Nations Sustainable Development Goals (SDGs)1

development

Australian universities are good global citizens Economies with Australia Global ranking
Economies with 2 universities 1 university:
when it comes to tackling poverty, gender Denmark, India, Indonesia, Brazil, China, Western Sydney University 1
equality and climate change. This makes Japan, Portugal, Taiwan Egypt, Malaysia,
University of Technology Sydney 15
and Thailand Mexico,
Australian universities attractive partners for Netherlands, La Trobe University 19
collaborative research into sustainability and Saudi Arabia,
South Africa and RMIT University 22
global development. It also encourages overseas Economies Sweden University of Tasmania 25
with 3
students to apply to Australian universities. universities: University of Newcastle 30
Ireland and
According to the UK’s Times Higher Education Italy
University of the Sunshine Coast 31

Impact Rankings, 17 Australian universities UK: 20 universities Monash University 42

University of Sydney 52
made it into the top 100 for having an impact Korea:
5 universities UNSW Sydney 55
on UN Sustainable Development Goals.
University of Canberra 57
Australia now has the second largest number of
Charles Sturt University 67
universities in this top 100 category, surpassed US: 6 universities University of Wollongong 70
only by the United Kingdom (with 20). Macquarie University 79
Victoria University 79
New Zealand:
7 universities Central Queensland University 83

Australia: 17 universities Griffith University 92

Note: 1. To put together the ranking, the Times Higher Education mapped
Canada: 16 universities
how universities around the world are implementing the United Nations’ 17
Sustainable Development Goals (SDGs). The SDGs are a global call to action
to tackle poverty, climate change and inequality. Universities were invited
to submit data on how they were progressing on the SDGs. The 2022 Impact
Rankings is the third edition and the overall ranking includes 1,406 universities
from 106 economies.
Sources: The Times Higher Education, 2022, Impact rankings; Austrade.

Why Australia Benchmark Report 2023 27

A magnet for Foreign-born population across OECD countries, 2000 and 20211

ambitious talent As a percentage of total population

49
Australia has the third highest proportion of
foreign-born citizens among countries in the
OECD. Approximately 29% of our population 2021

was born overseas. This is twice the average 2000

for OECD countries. Migrants and diaspora

communities contribute directly to Australian
trade via knowledge of overseas markets and
30
29
vital language skills. Citizens with links to Asia
27
also help Australian businesses expand trade
across the Asia-Pacific region.
21
20 20 20

18 18
16 16
15
14 14 14
14
12 13
11

4
2
1

Norway (13)
Mexico (34)

Korea (31)

Chile (27)

Denmark (24)

France (20)

US (19)

Netherlands (16)

OECD average

Spain (14)

Ireland (11)

Belgium (10)

Austria (9)

Sweden (7)

Israel² (6)

Canada (5)

New Zealand (4)

Australia (3)

Switzerland (2)

Luxembourg (1)
Greece (21)

UK (18)

Germany (12)
Japan (32)
Notes: 1. Data refers to 2000 or the closest available year, and to 2021 or
the most recent available year. The OECD information is the simple average
based on rates presented. For Japan and Korea, the data refers to the foreign
population rather than the foreign-born population. 2. Israel’s high fertility
rate and lower net migration rate reduced its percentage of foreign-born
population.
Sources: Organisation for Economic Co-operation and Development, 2022,
International migration outlook; Boston Consulting Group, 2022, Decoding
global talent, onsite and virtual; Austrade.

Why Australia Benchmark Report 2023 28

No worries, Happiness Index and GDP per capita, 2021

we’re happy!
Economy Happiness Index 2021 World Ranking 2021 Regional Ranking 2021
Finland 7.8 1 na
Australia was the second happiest country New Zealand 7.1 9 1
8 Australia 7.1 10 2
in the Asia region2 in 2021, according to a US 7.0 12 na
Finland
Canada 6.9 14 na
World Happiness Index published in 2022. High Singapore 6.6 23 4
incomes help. Other factors include a sense of Korea 6.1 46 8 Switzerland
Japan 6.1 49 9
New Zealand Australia
personal freedom, a spirit of generosity, trust China 5.9 58 11 Canada US
Hong Kong SAR 5.3 72 17 UK
in institutions and income equality. Australia’s India 3.6 109 24 UAE
France
lifestyle – plus our positive and optimistic spirit Saudi Arabia Germany

– are major factors for global companies that Singapore

Honduras Brazil Mexico Kuwait
6
want to re-locate employees and families into Philippines China Japan Korea

the Asia-Pacific region. In global terms, Australia

Happiness Index
Vietnam
Thailand
holds a similar ranking to Canada, New Zealand Bangladesh Indonesia Hong Kong SAR
Gambia South Africa
and Switzerland, and is ahead of Singapore,
Korea and Japan. Nepal Iran
Ethiopia Nigeria
Türkiye

Sri Lanka
4

Sierra Leone Tanzania

India

Rwanda
Zimbabwe
Zambia
Notes: 1. The GDP per capita, adjusted to constant 2017 international dollars
in terms of purchasing power parity (PPP), is measured on a natural logarithm
scale. 2. The Asia region is defined as economies located in Asia and Oceania,
Afghanistan
and excludes the Middle East region. Lebanon
Sources: John F. Helliwell, Richard Layard, Jeffrey Sachs, and Jan-Emmanuel 2
$1k $3k $8k $22k $60k
De Neve, eds. 2022, World happiness report 2022, accessed November 2022;
O
Austrade. GDP per Capita (PPP)¹

Why Australia Benchmark Report 2023 29

Why Australia Benchmark Report 2023 30
03 A renewable energy
superpower
01 ROBUST ECONOMY
Powering the world’s transition to net zero

Australia is set to become a renewable energy Australia’s advanced resources industry is at

superpower. This is thanks to vast solar and the forefront of our endeavours to decarbonise
Intro text here atem quis
wind resources, and an abundance of rare earth
Nequibus
the
velesti
economy. It is
as essecti
helping us
busdaectem.
convert
Lessit,
natural
corit as exero volupitae earum rest et officit
dolorib erisquame ommolesto
and other minerals. These resources make us endowments
rerchita quamintoquia renewables
nis quasimsuccess. Australia
nihit, sapel id ut
an ideal destination for investors who want to is already the largest per-capita producer of
blaudant et unte ipsanditio
export renewable energy.
qui ante videbitat volorio corro quo ipsa prem
solar energy in the world. Per head, we rank
veri ditatem. Loruptas aspicia pre opti nihillat
blaboreperum
We exerit
have enormous reserves adi
of the cum
minerals
seventh in the world for renewable energy
quam, sandes explign ieneceperios earchil eost,
patents.
ra quos
that nis
the world experi
needs id magnihi
to transition to net zero. inte volenissima vollacc uscitior si cuptamus quo
These include the largest known reserves of Australia
quibusda welcomes foreign investment in
idellab ipsunt.
llisci.
zinc, nickel and tantalum. We also have the renewables. It will help us meet commitments
Ugit pro bea is dem rescid moles eturibus, in
second largest reserves of lithium and cobalt, to reduce carbon emissions and become
nat aspit lam ea parum quunditinis rem ipsa
with abundant rare earth minerals. a renewable energy exporter. Access to
evellicipide officia parchil lorempo rehent
renewable resources – plus local ingenuity
With a vast coastline and immense open spaces, faciatum renihillum fuga. Sa sit, si sequo eos que
and a supportive policy environment – makes
Australia has some of the best wind resources in plic testior
Australia anmaximinctus. Ota quis pe
attractive destination forad quat is
the world and the second highest potential for vent dolendus, optatis coremolore ex escient
renewable energy investment.
solar power. The combination of huge wind and emporae rspellabo. Epudia con niet omnihiciis
solar resources is helping us forge ahead in the
atusci.
development of reliable renewable energy.

Why Australia Benchmark Report 2023 31

Why Australia Benchmark Report 2023 32
A natural leader in Australia’s renewable energy credentials

clean energy

Australia is a leader in renewable energy. We have 1st country to Almost 40,000

vast natural resources. Our cloudless skies and export hydrogen1 renewable energy
vast, empty plains make a perfect environment With over 100 hydrogen projects in the patents in 2 decades11
for generating solar power. Also, Australia’s pipeline, Australia is increasing its export
7th for renewable energy patents per head7,11,12
capacity2
strong offshore wind resources are positioned 10,000 patents in solar technologies11
conveniently close to energy demand centres. 4,000 patents in wind technologies11
These two factors make Australia an increasingly 4,000 patents in bioenergy technologies11
attractive investment destination for solar and
wind power. Australia is taking action on climate
change by legislating an ambitious emissions 2nd highest potential Largest producer of
reduction target of 43% by 2030 and to net zero for solar power3 lithium in the world
by 2050. This provides investors with certainty 3rd lowest cost for solar power4 Largest reserves of nickel, zinc and
on our transition to net zero. tantalum
5.8 gigawatts generated by solar farms,
equivalent to 18 million solar PV panels5,6 2nd largest reserves of lithium, copper
and cobalt13,14
Sources: 1. Reuters, 2022, World’s first hydrogen tanker to ship test
cargo to Japan from Australia. 2. Geoscience Australia, 2022, Australian
Hydrogen projects dataset, September 2022. 3. The World Bank, 2023,
Global photovoltaic power potential by country. 4. International Energy
Agency,2023, Levelised cost of electricity calculator. 5. Geoscience
Australia, 2023, Australia’s solar energy resources and production. 6.
US Office of Energy Efficiency and Renewable Energy, 2023, How much
Largest producer 6th most attractive
power is 1 gigawatt? 7. The world bank, 2022, The world bank open data. of solar energy per country for renewable
8. Worldometer, 2022, Population by country. 9. U.S. Energy Information
Administration, 2022, Electricity data. 10. Frontier Economics, 2020, capita7,8,9 energy investment15
Residential energy consumption benchmarks. 11. IRENA, 2022, Patents
evolution. 12. Worldometer,2022, Population by country. 13. Geoscience 6th in absolute terms9 29% of electricity from renewables9,
Australia, 2021, Australia’s identified mineral resources. 14. US Department target is 82% by 203016
of the Interior, 2022, Mineral Commodity. 15. EY, 2022, Renewable energy Enough to power 5 million homes10
country attractiveness index. 16. Department of Climate Change, Energy, the 22% of electricity generated by wind
Environment and Water, 2022, Government backs next-generation renewable
and solar power9
technology; Austrade.

Why Australia Benchmark Report 2023 33

Australia’s
Page headingpower Australia’s renewable energy generation volumes and world rankings

surge in wind and solar 1980 to 2021, TWh

Body copy

Renewables deliver a fast-growing share of Australia’s gross energy production 2021

Australian energy production. They accounted World ranking World share CAGR %
% 2010 to 2021
for a record 29% of total electricity generation
Bioenergy 31 0.4% 0.0%
in 2021. The Australian Government aims to
Solar 6 2.7% 47.5%
generate 82% of electricity from renewables
Wind energy 12 1.4% 16.3%
by 2030. Given our natural resources, wind and
Hydropower 37 0.3% 0.8%
solar are Australia’s main renewable generators, 80 30
Total 18 0.9% 11.5% 29%
making us the world’s sixth largest producer
of solar energy. Innovation in solar energy has 70
attracted significant investment. For instance, 25

Lightsource bp is developing two new solar

Percentage of total electricity generation

60
projects that aim to deliver 2 GW of solar-
20
generating capacity in Australia this decade. 50

Terawatt–hour
This is enough to power approximately Renewables: as a percentage of total electricity generation (right-hand axis)
1.5 million homes. 40 15%
15

30
9% 10

20

5
Note: 1. CAGR = compound annual growth rate. 10
Sources: U.S. Energy Information Administration, 2022, International energy
statistics; Department of Climate Change, Energy, the Environment and
Water, 2022, Government backs next-generation renewable technology; 0 0
Australian Financial Review, 2022, Lightsource bp secures $540m funding for
Footnotes
solar developments, December 2022; Austrade. 1980 1990 2000 2010 2020 2021

Why Australia Benchmark Report 2023 34

Local ingenuity and Renewable energy patents1 by economy

Australia’s clean Patents per million persons, 2000–2021

5,000

energy revolution

Approximately 4,000 patents in wind-powered 4,000

energy have been registered in Australia.
And around 10,000 patents in solar
technologies were registered in Australia from
2000 to 2021. Per size of population, this 3,000
means Australia has one of the highest ratios
of renewable energy patents in the world – on
par with the US and Germany. This achievement
reflects the strength of research and innovation
2,000
in Australia’s renewable sector, and will help
Australia build a global-scale renewables
industry.

1,000

New Zealand (13)

Korea (1)

Japan (2)

Denmark (3)

San Marino (4)

Taiwan (5)

Germany (6)

Australia (7)

Canada (9)

Austria (10)

Singapore (11)

UK (24)

Sweden (30)

Netherlands (33)

Italy (41)
France (21)
China (12)

Hong Kong SAR (15)

Norway (18)
US (8)
Note: 1. Includes biofuels, fuel from waste, geothermal, heat pumps,
hydropower, marine, PV-thermal hybrid, solar photovoltaic, solar thermal, and
wind, as defined by IRENA.
Sources: The World Bank,2022, Population; Worldometer, 2022 Population by
country; IRENA, 2022, Patents evolution; accessed December 2022; Austrade.

Why Australia Benchmark Report 2023 35

A top destination for Renewable energy country attractiveness

investment in Index, 2022

renewables 73

72
72
Globally, Australia ranks sixth on the renewable
energy attractiveness index, developed by EY. 70
69 69
The index considers factors such as energy 69

imperatives, policy stability, project delivery

capabilities and the diversity of natural resource. 66 66
Australia aims to become a major exporter of 65
64
renewable energy by 2030. This strategic national
goal creates significant potential for investment. 62 62
Capacity is increasing in three principal sectors:
solar, wind and green hydrogen. 60
59

58

56
55
54
53
52
52
US (1)

China (2)

Germany (3)

UK (4)

France (5)

Australia (6)

India (7)

Spain (8)

Japan (9)

Netherlands (10)

Denmark (11)

Brazil (14)

Sweden (20)

Belgium (24)

Philippines (27)

Switzerland (31)

Norway (34)

Vietnam (36)

South Africa (37)

Indonesia (39)

Thailand (40)
Canada (15)
Sources: EY, 2022, Renewable energy country attractiveness index, accessed
January 2023, Austrade.

Why Australia Benchmark Report 2023 36

Australia is a solar Electricity generated by solar energy – selected regions

powerhouse kWh per capita, 2021

In terms of population size, Australia was the Australia (1) 1,091

largest producer of solar electricity in 2021. Cook Islands (2) 903

We generated 1,091 kilowatt-hours (kWh) of Netherlands (4) 722

solar power per head. Australia is also a leader in UAE (5) 715

absolute terms. In 2021, we generated Japan (6) 706

28 billion kWh of solar power, making us the Germany (8) 601

world’s sixth largest producer. This means that Chile (9) 564

we generate nearly twice as much solar power Spain (10) 547

as France, Mexico, the UK, or the Netherlands. Israel (11) 495

Major projects are attracting investment US (13) 493

from around the world. The 26 GW Australian Greece (16) 480

Renewable Energy Hub (AREH) in the Pilbara Korea (17) 463

region of Western Australia is a hybrid wind China (29) 241

and solar project designed to produce green France (31) 223

hydrogen for export. The AREH site is expected UK (37) 186

to extend across 6,500 km2. This is roughly four Canada (45) 134

times the size of London. World 131

Mexico (53) 112

Malaysia (62) 85

Brazil (64) 78

Thailand (67) 60
Note: 1. The number in brackets indicates the economy’s ranking across 177 New Zealand (78) 40
economies.
Sources: The World Bank, 2022, The world bank open data; U.S. Energy Hong Kong SAR (142) 3
Information Administration, 2022, Electricity data; Worldometer, 2022,
Population by country; all accessed on 9 January 2023, Austrade. Indonesia (171) 1

Why Australia Benchmark Report 2023 37

Huge reserves of Australia’s minerals, 2021

minerals to power the Global ranking for production and reserves

transition to net zero

Minerals for clean technologies Production Reserves

Lithium 1 2
Australia is a secure and reliable source of
minerals that are in global demand as multiple Zinc 2 1

industries transition to net zero. With vast Graphite na 8

reserves, Australian mining can continue to Cobalt 3 2
supply these minerals well into the future.
Manganese ore 3 4
Demand for lithium is particularly strong
Rare earths 4 6
because of rising demand for the lithium-
ion batteries used in electric vehicles (EVs). Nickel 5 1

Australia is already a leading global producer of Tantalum 5 1

lithium. Investment is set to surge as customers Copper 6 2
look for secure supplies to feed transnational
Aluminium 6 na
EV battery supply chains. Australia also has
Silicon 16 na
the world’s largest reserves of zinc, nickel and
tantalum. Molybdenum na 7

Sources: Geoscience Australia, 2021, Australia’s identified mineral resources;

US Department of the Interior, 2022, Mineral commodity; Austrade.

Why Australia Benchmark Report 2023 38

A leader in industrial- Key hydrogen projects in Australia

scale hydrogen
Tiwi H2 (100)

Australia became a pioneer in hydrogen when

Darwin H2 Hub (80)
we sent the world’s first shipment of liquified
hydrogen to Japan. We remain at the forefront
of hydrogen production with over 100 hydrogen
Edify Green Hydrogen
projects in the pipeline. The International Project (150)
Australian Renewable
Energy Agency says that Europe and Australia Energy Hub (1,600) Queensland Solar Hydrogen
Facility (200)
are leading the way in hydrogen production
projects. This means Australia will have the Desert Bloom H2-HubTM Gladstone (1,825)
Hydrogen (410)
capacity to export hydrogen to high-demand Central Queensland
centres in Asia, including Japan, Singapore, India Hydrogen Project (329)

and Korea. Murchison Renewable SA Gov.

Hydrogen Project Hydrogen Gibson Island Green
(2,000) Western Green Facility Ammonia Feasibility
Energy Hub (3,000) Port Bonython (50)
Hydrogen Hub
(1,800)
H2Kwinana Hunter Energy Hub

H2Perth (110) Eyre Peninsula Gateway

Project (10)

Crystal Brook Energy Park (9) Newcastle Hydrogen Hub

Goyder Burra
Hydrogen Energy Supply Chain
Note: 1. The number in brackets indicate the project’s potential capacity in
gigagrams per year.
Sources: Reuters, 2022, World’s first hydrogen tanker to ship test cargo to HIF Carbon Neutral eFuels
Fortescue Green Hydrogen
Japan from Australia; International Energy Agency, 2022, Global hydrogen Manufacturing Facility
and Ammonia Plant (250)
review 2022; CSIRO, 2023, Hydrogen map; Geoscience Australia, 2022,
Australian hydrogen projects dataset, September 2022; Government of South
H2TAS Project (200)
Australia, 2023, Port Bonython export hub; Goyder renewables zone, 2023, Origin Green Hydrogen and
Renewable energy for South Australia; Austrade. Ammonia Plant (420)

Why Australia Benchmark Report 2023 39

The world’s second Solar power potential1 , top 20 regions

highest potential for Terawatts per day

solar power
51

50
When it comes to solar power, we have nature
44 44
on our side. Australia’s cloudless skies plus
vast empty plains make us the country with 41
39
the second greatest potential for solar power1 40

in the world. In June 2022, large-scale solar

farms operating in Australia had the capacity
30
to generate over 5.8 GW of electricity. This 30
is roughly equivalent to 18 million solar
photovoltaic (PV) panels. More than three
million (around 30%) of Australian households
20
now have rooftop solar PV power.
15
14 14
13
12
11 11
10
9
10 8 8 8
7 7

Libya (13)
Russia (1)

Australia (2)

Brazil (3)

US (4)

China (5)

Canada (6)

India (7)

Algeria (8)

Argentina (9)

Saudi Arabia (10)

Congo (11)

Kazakhstan (14)

Indonesia (16)

Niger (17)

Mali (19)

Angola (20)
Mexico (12)

Iran (15)

Chad (18)
Note: 1. Measured by the theoretical potential solar photovoltaic power.
Sources: The World Bank, 2023, Global photovoltaic power potential by
country; Geoscience Australia, 2023, Australia’s solar energy resources and
production; US Office of Energy Efficiency and Renewable Energy, 2023, How
much power is 1 gigawatt?; Austrade.

Why Australia Benchmark Report 2023 40

A low-cost country Cost of solar power generation by region1 , 2020

for solar power US$ per megawatt-hour

generation 172

Australia is one of the most cost-efficient

investment destinations for solar power
generation. This is thanks to a combination
of ideal geography and a supportive legal
and economic environment. According to the
International Energy Agency, Australia has the
97
third lowest cost for generating solar power
90
86
among major solar-power producers.
80
75

61

51
44 46
42
39
34 36

Korea (13)
France (1)

India (2)

Australia (3)

Denmark (4)

Brazil (6)

China (7)

Italy (8)

Canada (9)

Netherlands (10)

Hungary (11)

Japan (14)
Belgium (12)
US (5)
Note: 1. The ranking is based on the average levelised cost of energy (LCOE)
from a solar photovoltaic (PV) utility-scale plant. The LCOE measures the
cost of producing a unit of energy, taking into account the cost of the PV
technology, capital expenditure, operation costs, and the discount rate over
the typical PV plant lifetime.
Sources: International Energy Agency,2023, Levelised cost of electricity
calculator; Austrade.

Why Australia Benchmark Report 2023 41

Page heading Chart Heading
Chart Subhead

Body copy

Footnotes

Why Australia Benchmark Report 2023 42

04 Global ties

01 ROBUST ECONOMY
An open economy with worldwide connections

Global ties help make our nation prosperous. Our While Australia has been a net-capital exporter
success comes from being an open and adaptable in recent years, foreign investment continues
Intro text here atem quis
trading nation that is deeply connected to the
Nequibus
to power
velesti
our major
as essecti
industries.
busdaectem.
Foreign
Lessit,
direct
corit as exero volupitae earum rest et officit
dolorib erisquame ommolesto
global economy. Trade contributes over 40% of investment
rerchita quam (FDI) hasnis
quia grown by approximately
quasim nihit, sapel id ut
Australia’s GDP, with services and digital trade 7% per year over the last decade and ipsa
has now
blaudant et unte ipsanditio
emerging as important areas of trade growth.
qui ante videbitat volorio corro quo
topped A$1 trillion.
prem
veri ditatem. Loruptas aspicia pre opti nihillat
blaboreperum
Australian exerit
trade is hard-wired into adi cum
the fastest- quam, sandes
Australia explign
actively seeksieneceperios
new trading earchil eost,
ra quos
growing nis experi
countries. idper
Seventy-five magnihi
cent of inte volenissima
opportunities. Wevollacc
have 17 uscitior si cuptamus
free trade agreementsquo
our trade is with dynamic economies in the Asia quibusda
(FTAs) andidellab ipsunt.
have led the formation of multiple,
llisci.Preferential access to Asian markets
region. regional trade agreements in the Asia-Pacific,
Ugit pro bea is dem rescid moles eturibus, in
also makes us a natural springboard for global including the Regional Comprehensive Economic
nat aspit lam ea parum quunditinis rem ipsa
companies. Partnership (RCEP).
evellicipide officia parchil lorempo rehent
We are a migrant nation. This helps us stay We haven’t
faciatum stopped there.
renihillum fuga. SaOur newest
sit, agreement
si sequo eos que
engaged with all parts of the world. Around – the
plic Australia-India
testior Economic
maximinctus. Cooperation
Ota quis andis
pe ad quat
29% of people in Australia were born overseas, Trade Agreement
vent dolendus, – connects
optatis Australia
coremolore ex with one of
escient
and nearly half of Australians say that at least the world’s fastest-growing economies.
emporae rspellabo. Epudia con niet omnihiciis Arriving
one parent was born overseas. Over a fifth of shortly
atusci. is a comprehensive FTA with the UK, which
Australians speak a language other than English expands opportunities for trade and investment
at home. with a historical trading partner.

Why Australia Benchmark Report 2023 43

Asianheading
Page markets drive Australia’s top 15 export markets, 2021–22

export success A$ billion

Body copy

Close integration with dynamic economies in 1. China $180.9 5. US $26.8

6. Taiwan $23.9
Asia drives wealth creation in Australia. Twelve
3. Korea $48.8
of Australia’s top 15 export markets are in the
15. Netherlands $7.6
Asia­ region1 . They attracted exports worth
A$472 billion in 2021–22. This represents 14. UK $7.8

almost 80% of Australia’s total exports of

goods and services. China currently receives
around 30% of our goods and services exports.
2. Japan $92.8
More than 40% of our exports go to Japan,
Korea, India, the US, Taiwan and Singapore.
12. Hong Kong SAR $9.2
The Association of Southeast Asian Nations 9. Vietnam $13.7
(ASEAN) is also a significant bloc for Australian 7. Singapore $21.1
trade. It accounts for 12% of Australia’s total 10. Indonesia $12.4
exports.
Total:
4. India $33.1 $596

13. Thailand $8.4 8. New Zealand $15.7

11. Malaysia $11.7

Note: 1. The Asia region is defined as economies located in Asia and Oceania,
and excludes the Middle-East region.
Sources: Department of Foreign Affairs and Trade, 2023, Trade statistics,
Australia’s trade in goods and services: 2021–22, accessed 18 January 2023;
Footnotes
Austrade.

Why Australia Benchmark Report 2023 44

Trade tops A$1 trillion Australia’s exports and imports of goods and services
Current prices (A$ billion)

Australia is a highly globalised economy. Trade

represents around 45% of Australia’s economy. Percentage Share (%)
5 year CAGR
Our partners in the Asia region accounted for Rank Selected economies 2019–20 2020–21 2021–22
of GDP in of total in
(%)
2021–22 2021–22
almost 75% of our total goods and services trade
1 China 251.0 267.0 284.8 12.3 27.0 10.3
in 2021–225. This reflects Australia’s geographical 2 Japan 79.1 66.9 117.2 5.1 11.1 11.3
good fortune and our trade agreements with 3 US 80.9 67.5 76.4 3.3 7.2 2.8
regional economies. China remained Australia’s 4 Korea 38.9 39.5 68.7 3.0 6.5 12.2

largest trading partner in 2021–22, accounting 5 Singapore 31.2 28.3 46.8 2.0 4.4 13.6

for 27% of our two-way trade. Japan and Korea 6 India 26.2 27.1 46.3 2.0 4.4 12.4
7 Taiwan 18.9 17.2 33.8 1.5 3.2 18.1
account for a further 18%. Many Australian
8 Malaysia 21.6 21.1 26.8 1.2 2.5 6.2
companies are diversifying their export markets,
9 Germany 22.1 22.2 26.5 1.1 2.5 4.9
and the ASEAN region now accounts for 14% of
10 New Zealand 28.6 23.6 25.5 1.1 2.4 -0.8
total trade. Meanwhile, Australia maintains strong 11 Thailand 21.6 20.9 24.6 1.1 2.3 2.4
links with traditional partners. The EU and the UK 12 Vietnam 15.2 15.8 22.1 1.0 2.1 13.2
accounted for 11% of total trade in 2021–22, and 13 UK 36.8 28.6 22.0 1.0 2.1 -4.6

the US for 7%. 14 Indonesia 16.1 14.1 18.3 0.8 1.7 2.0
15 Hong Kong SAR 13.2 11.1 14.1 0.6 1.3 -6.5
Other economies 174.0 158.5 202.6 8.8 19.2 4.9

Notes: 1. Totals may not always add up exactly due to rounding. Refer to the Total all economies1 875.6 829.5 1,056.6 45.8 100.0 7.4
DFAT website (www.dfat.gov.au/trade/Pages/trade-and-investment) for more
By regions and groups
information. 2. Asia Pacific Economic Cooperation. 3. Regional Comprehensive
Economic Partnership. 4. Association of Southeast Asian Nations. APEC2 645.2 617.7 790.0 34.2 74.8 8.4
5. DFAT define the Asia region as economies located in Asia and Oceania,
RCEP 3
511.5 505.8 647.1 28.0 61.2 9.6
including the Middle-East region. For more information visit www.dfat.gov.au/
trade/resources/trade-statistics/Pages/trade-time-series-data. ASEAN4 113.8 108.8 150.9 6.5 14.3 8.3
CAGR = Compound annual growth rate. EU plus UK 116.0 106.4 119.0 5.2 11.3 3.3
SAR = Special administrative region of China.
Sources: Department of Foreign Affairs and Trade, 2023, Trade time series
data; Australian Bureau of Statistics, 2023, Australian national accounts:
national income, expenditure and product, Table 3; Austrade.

Why Australia Benchmark Report 2023 45

A high-growth Total foreign investment stock in Australia, 2001–02 to 2021–22

destination for Total value in June 2022: A$4.4 trillion

A$4.4 trillion of
foreign investment
4,500 192% 200
Other investment1 (left-hand axis, 8.3%)

Direct investment (left-hand axis, 7.7%)

Foreign direct investment (FDI) in Australia is 4,000
175

Foreign investment stock as a percentage of GDP

Total investment as a % of GDP (right-hand axis)
growing fast. The total stock of FDI in Australia

Foreign investment stock (A$ billion)

3,500
has risen by an average 8.1% per year since 150
2001–02. Other forms of foreign investment –
3,000
including portfolio investment – grew by 8.3% 125

per year on average during the same period. This 2,500

123%

has taken the level of total foreign investment 100

in Australia to A$4.4 trillion. Investment is 2,000

becoming more important to the Australian 75

1,500
economy. As a percentage of GDP, the total
value of foreign investment stock grew from 50
1,000
123% in 2001–02 to almost 200% in 2021–22.
25
500

0 0

2001–02

2002–03

2003–04

2004–05

2005–06

2006–07

2007–08

2008–09

2009–10

2010–11

2011–12

2012–13

2013–14

2014–15

2015–16

2016–17

2017–18

2018–19

2019–20

2020–21

2021–22
Note: 1. Other investment is the balance of total investment less direct
investment. As such, it represents portfolio investment, financial derivatives
and other investment categories from the source ABS data.
Sources: Australian Bureau of Statistics (ABS), 2023, Balance of payments and
international investment position, Table 15; ABS, 2023, Australian national
accounts: national income, expenditure and product, Table 3; Austrade.

Why Australia Benchmark Report 2023 46

A magnet for Australia’s main sources of foreign direct investment stock, 2011–21

investment from Total value in 2021: A$1 trillion

North America,
Europe and Asia Rank 2011 2020 2021 % Share % Change % CAGR
% of
Australian
2021 Economy A$ billion A$ billion A$ billion 2021 2020–2021 2011–2021
GDP, 2021
1 US 116 194 185 17.4 -4.8 4.8 8.5
Australia attracts investment from around the
2 Japan 55 132 134 12.6 1.2 9.3 6.2
world. Over the past decade, foreign direct
3 UK 66 123 128 12.0 3.5 6.8 5.9
investment (FDI) from China has risen on
4 Canada 19 46 58 5.5 24.8 11.8 2.7
average by 12% each year; from Canada by 12%;
5 Netherlands 30 53 55 5.2 4.9 6.4 2.5
from Japan by 9%; and from Singapore by 9%. 6 China 14 46 46 4.4 1.6 12.3 2.1
Australia’s top three overseas investors are 7 Singapore 20 40 46 4.4 16.6 8.8 2.1
the US, Japan and the UK, with stock holdings 8 Bermuda 6 40 40 3.8 0.6 21.3 1.9

equivalent to 17%, 13% and 12% of total FDI 9 Virgin Islands, British np 22 22 2.1 0.4 np 1.0

respectively. Over the same period, investment 10 Germany 14 22 20 1.9 -7.5 3.7 0.9
11 Hong Kong SAR 8 16 17 1.6 3.5 8.3 0.8
activities from ASEAN countries – mainly
12 Malaysia np np 14 1.3 np np 0.6
Singapore and Malaysia – have grown by an
13 Switzerland 23 12 13 1.2 6.6 -5.7 0.6
average of 9% per annum to A$66 billion. The
14 France 7 12 12 1.1 -2.8 5.1 0.5
ASEAN bloc is now the fourth largest source of 15 Luxembourg 3 11 10 0.9 -13.9 11.0 0.4
FDI in Australia. 16 Korea np 7 7 0.7 9.0 np 0.3
Other economies 166 255 255 24.0 -0.3 4.3 11.7
FDI stock – all economies 547 1,032 1,062 100.0 2.9 6.9 48.8
OECD 359 640 650 61.3 1.7 6.1 29.9
APEC 248 506 518 48.8 2.4 7.7 23.8
Notes: ASEAN = The Association of Southeast Asian Nations. CAGR = compound
annual growth rate. SAR = Special administrative region of China. EU 72 118 120 11.4 1.8 5.3 5.5
Sources: Australian Bureau of Statistics (ABS), 2022, International investment ASEAN 28 58 66 6.2 12.6 8.9 3.0
position, Australia: supplementary statistics 2021, Table 2; ABS, 2022,
Australian national accounts: national income, expenditure and product, Table FDI stock as a percentage of GDP 37.3 52.4 48.8
3; Austrade.

Why Australia Benchmark Report 2023 47

FDI powers growth in Foreign direct investment stock in Australia by industry – value and percentage share

Australia’s services Total value: A$1 trillion in 2021

sector

Investment powers productivity growth in Others1 A$134.2bn, 12.6%

Australia’s domestic and export industries. Administrative and support service,

A$6.7bn, 0.6%
Services take about half of all foreign direct Accommodation and food service,
investment (FDI). From 2017–2021, FDI in real A$8.8bn, 0.8%
Professional, scientific
estate and financial services – the two largest and technical A$12.7bn, 1.2%
recipients in the services sector – rose by 11% and Construction A$17.6bn, 1.7% Mining
A$360.6bn, 34.0%
12% per year respectively. This growth is more Utilities and related industries A$24.4bn, 2.3%

than double the average (4%) across all industries. Transportation and storage A$25.4bn, 2.4%

FDI in the professional, scientific and technical Information and communications,

A$34.1bn, 3.2%
sector has also grown rapidly, at 17% per year since
2017. Australia’s export-focused mining sector Wholesale and retail trade
is the biggest primary-industry beneficiary of and related industries A$60.8bn, 5.7%

investment, accounting for 34% of total FDI, or

A$361 billion.
Manufacturing A$116.6bn, 11.0%

Real estate A$136.9bn, 12.9%

Notes: np = not available for publication but included in totals where

applicable. 1. Other includes Agriculture, forestry and fishing ($3.9 billion); Financial and insurance A$122.8bn, 11.6%
Public administration; Activities of households and of extraterritorial
organisations (np); Education (np); Human health and social work activities
($5.2 billion); Arts, entertainment and recreation (np); Other service activities
(np); and Unallocated ($121 billion).
Sources: Australian Bureau of Statistics, 2022, International investment
position, 2021, Australia: supplementary statistics, Table 15; Austrade.

Why Australia Benchmark Report 2023 48

An open trading Services trade restrictiveness index by sector, Australia vs OECD average

economy for services The lower the score, the more open to trade

OECD economies Australia

Australia is an open market for trade in
0.16
services. According to the OECD’s Services Distribution (9) 0.13
Trade Restrictiveness Index (STRI), Australia 0.36
Legal (2)
scored 0.19 across 22 sectors in 2021. This 0.15

was lower than the OECD average (0.23)1 and 0.23

Engineering (6)
0.15
indicates a high level of openness to trade.
0.21
The index ranked Australia as the second most Road freight transport (6)
0.17
open economy for legal services, and the fifth
0.25
most open for air transport. Trade in services Rail freight transport (7)
0.17
is growing strongly. Two-way trade reached 0.24
Architecture (9)
around A$133 billion in 2021–22, representing 0.17

an increase of 20% from 2020–21. Logistics storage and warehouse (15)

0.19
0.18

0.19
Insurance (20)
0.18

0.20
Commercial banking (19)
0.18

0.28
Accounting (12) 0.19

0.24
Maritime transport (12)
0.20

0.40
Air transport (5)
0.32
Notes: 1. Unweighted STRI average of 38 OECD countries. 2. The number in
brackets indicates Australia’s global ranking across 38 OECD countries.
Sources: Australian Bureau of Statistics, 2022, International trade in goods
and services; Organisation for Economic Co-operation and Development, More open to trade
2022, Services trade restrictiveness index, accessed January 2023; Austrade.

Why Australia Benchmark Report 2023 49

A broad network of Australia’s free trade agreements

trade agreements
China 2015 Korea 2014

Australia has 17 Free Trade Agreements (FTAs),

including agreements with the United States, China,
Korea, Japan and Singapore. Australia is also a Japan 2015
member of regional multi-party trade agreements, US 2005
including the Regional Comprehensive Economic
Hong Kong SAR 2020
Partnership Agreement (RCEP) and the ASEAN-
Australia-New Zealand Free Trade Agreement
Singapore 2003
(AANZFTA). During 2022, the Australia-India India 2022 Indonesia 2020 Peru 2020
Economic Cooperation and Trade Agreement
Thailand 2005
(ECTA) came into force. Australia and India are in the
Chile 2009
process of concluding a Comprehensive Economic Malaysia 2013 New Zealand 1983
Cooperation Agreement, which will build on ECTA’s
market access outcomes. In 2021, we agreed the
Has a bilateral free trade agreement with Australia Participates in an existing multilateral free trade agreement
Australia-United Kingdom Free Trade Agreement (with date of entry into force) with Australia

(A-UKFTA) which will likely be implemented during

2023.

d
lan

s
o re

ia
ine
sia

ar
Australia’s multi-party free

sia

m
Ze a

bod

ada
ilan

anm

o
gap
one

lipp

tna
nei
trade agreements

an
ea
l ay

xic
na
s

u
Cam
N ew

Can
Th a

Lao
B ru

Ko r

Jap

Pe r
V ie

Chi
Ph i
Ind

Sin

Me
Ma

My
ASEAN-Australia-New Zealand Free
Trade Area (2010-11)
Notes: 1. Information on the status of FTA negotiations can be found here:
https://www.dfat.gov.au/trade/agreements/trade-agreements 2. The Pacific Comprehensive and Progressive
Agreement on Closer Economic Relations Plus entered into force in 2020. Agreement for Trans-Pacific
Australia, New Zealand, Samoa, Kiribati, Tonga, Solomon Islands, Niue and Partnership (2018-19)
Cook Islands are parties to the Agreement. Regional Comprehensive
Sources: Department of Foreign Affairs and Trade, 2023, Australia’s free Economic Partnership
(2022)
trade agreements; Austrade.

Why Australia Benchmark Report 2023 50

About Austrade
The Australian Trade and Investment Commission (Austrade) is Australia’s leading trade
and investment agency.
We are experts in connecting Australian businesses to the world and the world to Australian businesses.
Austrade is the national point-of-contact for investors. We partner with state and territory governments
to provide the information and contacts you need to establish or expand a business in Australia.
We help companies around the world to identify and take up investment opportunities in Australia as well
as to source Australian goods and services for their global supply chains.
To discover how we can help you and your business, visit: austrade.gov.au

ABN: 11 764 698 227 Copyright © Commonwealth of Australia 2023

18-19-235. Publication date: March 2023
ISSN 2205-9415 (Print)
ISSN 2205-9423 (Online)
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Why Australia Benchmark Report 2023