Australia

H

Currency and Banking

The unit of currency in Australia is the Australian dollar, divided into 100 cents and coined in 5¢, 10¢, 20¢, 50¢, $1, and $2 pieces (A$1.30 equals U.S.$1; 2005 average). The Australian dollar is freely traded on international currency markets.

The first Australian bank was established in Sydney in 1817. The banking system now includes the Reserve Bank of Australia, established in 1911, which handles the functions of central banking, including note issuance; the components of the Commonwealth Banking Group, including the Commonwealth Development Bank and the Commonwealth Savings Bank; and three other major banks: the Australia and New Zealand Banking Group, Westpac Banking Corporation, and the National Australia Bank. A number of privately owned or state-owned banks operate, as well as many foreign banks. The Australian Stock Exchange conducts trading in six cities: Adelaide, Brisbane, Hobart, Melbourne, Perth, and Sydney.

I

Foreign Trade

Under older Australian tariff policies, protection was afforded to those Australian industries considered essential, and preferential treatment was granted to imports from certain British Commonwealth countries. After World War II the foreign trade of Australia became primarily focused in Asia. Since the 1970s, economic reforms have reduced tariff protections and increased import quotas, removing many barriers to foreign competition. In the late 1990s, the value of imports regularly exceeded the value of exports. In 2004 imports were valued at $105.5 billion, exports at $97.1 billion.

The leading purchasers of Australia’s exports are Japan, the United States, South Korea, New Zealand, the United Kingdom, Taiwan, China, Singapore, and Hong Kong. These trading partners as well as Germany and Indonesia are also the major suppliers of imports. Principal exports include metal ores, coal, gold, nonferrous metals, meat and meat products, textile fibers (mainly wool), petroleum and petroleum products, and cereals. Leading imports are machinery and transportation equipment (including road vehicles), which together constituted 47 percent of total imports in 1999, as well as office equipment, petroleum and petroleum products, and textiles. Australia is also an important exporter of agricultural and medical research services, especially to the wider Asian and Pacific region. Australia is a member of the World Trade Organization (WTO).

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J

Transportation

Each Australian colony established its own rail network prior to becoming a state within the federation; as a result, the gauge varies from one state to another. A government-sponsored, Australia-wide program to standardize railroad gauges and privatize rail services was under way in the early 2000s. Construction also began on an extensive project to extend the central transcontinental line from Alice Springs to Darwin, thereby linking Adelaide in the far south with Darwin on the northern coast. Railroad lines total about 9,528 km (5,920 mi) of track.

Australia has about 811,601 km (about 504,305 mi) of roads. About 40 percent of the overall length is bitumen- or concrete-paved, including more than 16,000 km (more than 9,900 mi) of state highway. The capital cities are connected by inexpensive bus services. Some 601 motor vehicles are registered for every 1,000 people. A comprehensive network of airline services links major cities and even remote settlements. Domestic lines carry about 25 million passengers yearly. Because of the long distances between cities and the country’s ideal flying conditions, Australians are especially accustomed to air travel. Qantas Airways, Ltd., the country’s largest airline company, provides service to domestic and international locations. International airports are located near each of the mainland capitals and near Cairns and Townsville. Coastal and transoceanic shipping is vital to the Australian economy. Major ports include Melbourne, Sydney, and Fremantle (in Western Australia).

K

Communications

Australia maintains contact with the rest of the world by such means as satellite, submarine telegraph cable, radio-telephone, and phototelegraph services. Since 1975 the Australian Telecommunications Commission has been responsible for telecommunications services within Australia; the Australian Postal Commission manages the postal services. In 2005 there were 564 telephone mainlines for every 1,000 people. Commercial radio and television stations operate under licenses granted by the Australian Broadcasting Authority (ABA). In 1997 about 260 private broadcasters offered radio services, and there were 48 private television broadcasters; each of these private operators relies on the sale of airtime, chiefly for advertising. The Australian Broadcasting Corporation (ABC) is the country’s only national noncommercial broadcaster. It operates one national television network and six national radio networks, including Radio National, ABC-FM, and the Triple-J youth network. In addition, it operates Radio Australia, an international service broadcast by shortwave radio to Papua New Guinea and the Pacific region, and by satellite to the wider Asia-Pacific region in English and other languages.

Australia has about 650 newspapers, including 65 dailies with a combined daily circulation of 5.4 million. The Australian is a national-circulation daily with simultaneous editions published in several major cities. The state capitals also support their own large-circulation dailies, including the Sydney Morning Herald; The Age and Herald Sun (both published in Melbourne); Courier-Mail (Brisbane); Advertiser (Adelaide); and West Australian (Perth). Local weekly newspapers are more popular in rural areas.

V

Government

Australia's system of government is a federal parliamentary democracy. The constitution of Australia, which became effective in 1901, is based on British parliamentary traditions, and includes elements of the United States system. Australia is a member of the Commonwealth of Nations that chooses to recognize the British monarch as its own sovereign and, as such, its head of state. The head of government is the Australian prime minister, who is responsible to the Australian parliament. All powers not delegated to the federal government are entrusted to the states. Australia is a founding member of the United Nations (UN).