Country Overview
Australia’s strong credit rating and transparent public procurement processes provide favourable conditions for investment in infrastructure projects. To reduce investment uncertainty, Australia could look to improve procurement processes to shorten the duration and minimise cost and risk. The long-term impact of the COVID-19 pandemic on Australia’s fiscal position may impact borrowing costs.
See Full Overview Data
GDP per capita
53,825 USD
Population
25.6 million persons
Infrastructure quality
79.2 (0-100 best)
Infrastructure investment
3.8% of GDP
Private infrastructure investment
15,547 5-year average, USD millions
Infrastructure gap
0.3% of GDP

Driver Overview

This section shows a country’s rank, ranking change and score for each of the eight drivers. It also categorises each country’s driver performance on a scale from “Emerging” (score from 0-20) to “Global Leader” (score from 80-100).

Driver
Rank
Score /100
Emerging Aspiring Contender Top performer Global Leader
- No ranking change Ranking increase Ranking decrease

Rank

Score /100

Best practice

10
1
79.5
Global Leader
9
3
75.7
Global Leader
11
4
86.1
Global Leader
2
-
99.1
Global Leader
9
2
93.0
Global Leader
7
-
65.0
Global Leader
6
1
81.5
Global Leader
12
2
67.9
Global Leader

Metric Overview

Strengths

Transparency in public procurement

Australia's public procurement notices are made available online and tender documents transparently detail procurement procedures. A transparent process encourages more participation and competition, which drive value for money.

Summary credit rating

Australia is AAA-rated by four international credit rating agencies, with a stable outlook, one of only four InfraCompass 2020 countries. Australia’s high credit worthiness provides favourable borrowing costs for infrastructure investments, but could be impacted by the COVID-19 pandemic.

Cost to start a business

According to the World Bank, the average cost of starting a businesses is 0.7% of income per capita, easing the entry of new firms.

Transparency in public procurement

Australia's public procurement notices are made available online and tender documents transparently detail procurement procedures. A transparent process encourages more participation and competition, which drive value for money.

Summary credit rating

Australia is AAA-rated by four international credit rating agencies, with a stable outlook, one of only four InfraCompass 2020 countries. Australia’s high credit worthiness provides favourable borrowing costs for infrastructure investments, but could be impacted by the COVID-19 pandemic.

Cost to start a business

According to the World Bank, the average cost of starting a businesses is 0.7% of income per capita, easing the entry of new firms.

Top Performing Metrics

Top Performing Metrics

This is defined by the metrics with the highest unweighted score out of 100. 

High income country average

Funding capacity:
Summary credit rating

Opportunities to Grow

Long term GDP growth trend

The long-term GDP growth rate for Australia is projected at 2.6% compared to the 20 year historical average of 3.2%. Long-term growth rates signal a country’s capacity to fund infrastructure from future growth. The COVID-19 pandemic may impact GDP growth trends.

Average procurement duration – transaction RFP

Australia has one of the highest durations from announcement of a tender to contract award at 43 months, greater than the High Income Countries average of 28.5 months. Lengthy procurement durations add costs, risks and down time to contractors bidding for and investing in infrastructure projects.

Gross government debt

Australia's gross government debt rose to 42% of GDP in 2019, a figure which may increase further due to the impact of the COVID-19 pandemic on Australia’s fiscal position.

Long term GDP growth trend

The long-term GDP growth rate for Australia is projected at 2.6% compared to the 20 year historical average of 3.2%. Long-term growth rates signal a country’s capacity to fund infrastructure from future growth. The COVID-19 pandemic may impact GDP growth trends.

Average procurement duration – transaction RFP

Australia has one of the highest durations from announcement of a tender to contract award at 43 months, greater than the High Income Countries average of 28.5 months. Lengthy procurement durations add costs, risks and down time to contractors bidding for and investing in infrastructure projects.

Gross government debt

Australia's gross government debt rose to 42% of GDP in 2019, a figure which may increase further due to the impact of the COVID-19 pandemic on Australia’s fiscal position.

Metrics to Improve

Metrics to Improve

This is defined by the metrics with the lowest weighted score out of 100, such that these metrics would have the greatest impact on the overall score.

For metrics that have binary outcomes (yes=100/no=0), no comparative income group average is reported.

High income country average

Funding capacity:
Long term GDP growth trend

Funding capacity:
Gross government debt

Detailed Data

This section shows country data for each of the 41 metrics. The figures in brackets denote the change in score since InfraCompass 2017. 

Note that all data has been normalised on a scale of 1-100. For raw metric data, please download the complete InfraCompass 2020 dataset. 

Where relevant, some metric scores have been inverted, such that all metrics have positive relationships with good infrastructure outcomes. For example, since lower compliance costs make it easier to invest in infrastructure, the normalised value of ‘number of procedures to start a business’ has been reversed such that lower number of procedures are scored closer to 100, and higher numbers closer to 0. In other words, a score of 0 indicates a poor performance, rather than 0 number of procedures.

Governance Regulatory Permits Planning Procurement Activity Funding Financial
Driver
Rank
Score /100
Emerging Aspiring Contender Top performer Global Leader
- No ranking change Ranking increase Ranking decrease

Metric

Australia

High Income Countries Average

Source Link

28.2%

Recovery rate

The recovery rate is recorded as cents on the dollar recovered by secured creditors through reorganisation, liquidation or debt enforcement (foreclosure or receivership) proceedings.

82.7 (+0.3)
68.3

20.7%

Rule of law

World Governance Composite Indicator reflecting perceptions of the extent to which agents have confidence in and abide by the rules of society, and in particular the quality of contract enforcement, property rights, the police, and the courts, as well as the likelihood of crime and violence. The rule of law reflects whether the law imposes limits of power on the state, private sector and individuals.

84.3 (-0.8)
74.3

18.1%

Post-completion reviews

Whether the country conducts post-completion reviews on infrastructure projects to ensure the forecast outcomes are being achieved.

Yes
-

15.1%

Shareholder governance

Measures the governance practices that protect shareholders through three dimensions: the extent of shareholder rights index (shareholders’ rights and role in major corporate decisions), the extent of ownership and control index (governance safeguards protecting shareholders from undue board control and entrenchment), and the extent of corporate transparency index (corporate transparency on ownership stakes).

46.7
48.1

12.8%

Political stability and absence of violence score

Measures perceptions of the likelihood of political instability and/or politically-motivated violence, including terrorism. Estimate gives the country's score on the aggregate indicator, in units of a standard normal distribution i.e. ranging from approximately -2.5 to 2.5.

66.3 (-1.2)
61.9

5%

Infrastructure or PPP agency

Whether an infrastructure agency exists to coordinate an integrated approach to infrastructure delivery and policy.

Yes
-

Australia

High Income Countries Average

82.7 (+0.3)
68.3
84.3 (-0.8)
74.3
Yes
-
46.7
48.1
66.3 (-1.2)
61.9
Yes
-

Country Overview Data

Australia’s strong credit rating and transparent public procurement processes provide favourable conditions for investment in infrastructure projects. To reduce investment uncertainty, Australia could look to improve procurement processes to shorten the duration and minimise cost and risk. The long-term impact of the COVID-19 pandemic on Australia’s fiscal position may impact borrowing costs.
GDP per capita

53,825 USD

Population

25.6 million persons

Infrastructure quality

79.2 (0-100 best)

Infrastructure investment

3.8% of GDP

Private infrastructure investment

15,547 5-year average, USD millions

Infrastructure gap

0.3% of GDP

GDP

1,376 USD billion

GDP growth rate

1.7%

GDP per capita growth rate

-4.6%

Gini coefficient

35.8 (0-100 worst)

Gross Government Debt

42.0% of GDP

Inflation rate

1.6%

Summary credit rating

100.0 (0-100 best)

Unemployment rate

5.3%

Urbanisation ratio

86.0% of total population

Road connectivity

94.5 (0-100 best)

Quality of road infrastructure

4.9 (1-7 best)

Efficiency of train services

4.4 (1-7 best)

Efficiency of air transport services

5.5 (1-7 best)

Efficiency of seaport services

4.8 (1-7 best)

Electricity access

100.0% of population

Electricity supply quality

5.3% of output lost

Exposure to unsafe drinking water

1.7% of population

Reliability of water supply

6.5 (1-7 best)

Digital Adoption Index

0.7 (0-1 best)

Mobile-broadband subscriptions

134.1 per 100 population

Fixed-broadband Internet subscriptions

32.2 per 100 population