Government Influence and Global Market

• ASIC:

  Australian Security and Investment Commision aims to regulate corporations, markets and provision of finance services covered by the Corporations Act 2001

  Covers consumer protection, the supervision of financial market operations, insurance, superannuation, life insurance, retirement savings and medical indemnity. 

  ASIC is responsible that businesses directors carry out duties honestly and diligently .

  Audits and surveillance over business activities

  Punishment by ASIC = fine + lower reputation
• Company Tax:

  The ATO is a statutory body and the principal revenue collection agency for the Australian Government, that administers taxation law.

  25-30% of net profit is paid as tax to government

  Consider and alter tax rate to ensure economic growth and business activity
• Economic Output

  Refers to the expected levels of economic growth of nations around the world.  A downturn in global economies in nations like the USA, China and Japan, and other trading partners, may cause Aus economy to decline due to less number of exports. 

  Negative Outlook = discourage risk taking due to nervousness in market

  Positive Outlook = higher demand
• Availability of Funds:

  Ease of which a business can access funds on national and international financial market

  Australian = low risk for international banks = higher contribution 
• Interest Rates

  Interest rate, or the cost of borrowing money  fluctuates over time. In a time of high Interest, it is harder to acquire loans as repayments would be high
• Global Market influences include

  Economic Output

  Availability of Funds

  Interest Rates