Australia

Australia's economy has continued to perform remarkably well, despite encountering major adverse shocks. Fiscal policy, with an objective of maintaining a balanced budget, will help support the economy. Maintaining a sound and stable macroeconomic environment is essential. Reforms of the personal income tax system are critical elements. A comprehensive reform of the complex system of income support payments would provide stronger incentives for labor force participation. Maintenance of competitive product markets will contribute to faster innovation and productivity and income growth. The financial system is sound.Article IV consultations;Economic conditions;external debt, current account, current account deficit, reserve bank, balance of payments, external liabilities, domestic demand, income support system, unemployment rate, current account balance, net external debt, net external liabilities, competitive product, terms of trade, external shocks, net debt, foreign debt, nominal interest rate, net exports, trade liberalization, skilled workers, prudential regulation, income support programs, foreign currency debt, trade agreements, repayments, currency risk, debt sustainability, external financing, quota-free access, fiscal gap, short-term debt, gross capital formation, external debt sustainability, central bank, total external debt, currency debt, trade agreement, public sector debt, regulatory regime, producer price index, debt-equity, principal repayments, free trade, domestic industries, employment growth, export prices, domestic currency, trade barriers, free trade agreements, bilateral free trade, import price, fiscal stabilizers, net private debt, private debt, import prices, long-term debt, transition period, fiscal gaps, multilateral efforts, external position, domestic economy, fixed capital formation, trade regime, oil prices, trade diversion, bilateral free trade agreements, current account deficits, public debt, general resources account, fixed investment, debt ratio, budget balance, international trade regime, debt stock, tax incentives, external debt statistics, trading partners, trade in services, agricultural trade, debt statistics, debt dynamics, domestic market, commodity prices, export price, multilateral framework, international standards, market access opportunities