Industry AOS1 (UNIT 4)

Chapter 1- Role of the government

Pressures

a force for change that impacts on an enterprise. May come internally from within an organisation or from an external source.

Opportunities

a potential for change available to an enterprise. Can arise from both internally from within an organisation or external sources

What is government policies?

Government policy sets the rules and priorities for areas like health, education, the economy, and environment.

Once passed as laws, these policies influence businesses and industries across Australia.

Levels of government

Federal government: Responsible for the overall management of the economy.

State government: Responsible for a range of areas includes health, education, etc.

Local government: Responsible for services (Local)

What are the key income streams in the 2025–26 federal budget, and why are they important?

The key income streams in the 2025–26 federal budget include personal income tax, company tax, and the Goods and Services Tax (GST). These revenue sources are essential for funding public services such as healthcare, education, infrastructure, and national defence, and they also support economic recovery and investment in innovation.

Social/Policital role

Make overall decisions, which lead to broad industry changes impacting specific industries.

Regulatory role

Governments create laws and enforce regulations,

Federal government: International trade

State government: OH&S laws

Local government: Local parking laws

Economic role

3 major roles:
Economic Stabiliser: Manages economy through stimulus and taxation

Economic Allocator: Provides essential public services

Economic Re-distributor: Uses taxation and welfare to reduce inequality

How does government policy support innovation in Australia?

The Australian government supports innovation by providing research grants, offering tax incentives to encourage investment in R&D, and funding clean energy projects and emerging technologies to enhance economic growth and global competitiveness.

What is a macro policy

a government policy decision-making that occurs on a large scale and affects most people and industries in the economy

Macro impact on healthcare

Healthcare plays a significant role in shaping macroeconomic policy, as a healthier population increases workforce productivity and reduces long-term government spending on welfare and disability support. High healthcare costs, however, can strain public budgets and influence decisions on taxation, interest rates, and government borrowing.

Budgetary Policy (Macro)

Budgetary policy (fiscal policy) is how the government collects revenue (money in) and decides on expenditure (money out) to influence the economy

Commonwealth Government (Budgetary)

The commonwealth budget is a document that outlines the governments planned revenue and expenses for the coming years. The commonwealth government collects revenue from income tax, company tax, GST, etc. It outlay expenses on areas such as social welfare, health, education, etc.

Budgetary policy impact on healthcare

Budgetary policy impacts healthcare by determining government spending on public hospitals, Medicare, and health programs, directly affecting access and quality of care. Increased health funding can reduce patient wait times, improve infrastructure, and expand preventive services.

Monetary Policy

Monetary policy is how the Reserve Bank of Australia (RBA) manages the economy by changing interest rates and controlling the supply of money. Aim is to keep the economy stable, with low inflation, steady growth, and low unemployment

Interest Rate (Monetary)

Influence borrowing costs for businesses and consumers.

RBA increases rates → borrowing becomes more expensive, people and businesses spend less

RBA lowers rates → borrowing becomes cheaper, people and businesses spend more

Supply money (Monetary)

Affects spending, investment, and employment across all sectors. The RBA controls how much money flows through the economy

Monetary policy impact on healthcare

Monetary policy affects healthcare indirectly through interest rates and inflation control, which influence healthcare costs and investment in medical infrastructure. Lower interest rates can encourage borrowing and expansion by healthcare providers, while inflation control helps maintain affordability of medicines and services.

What is micro-policy

Micro policy refers to government decisions and actions that target specific industries, sectors, or businesses rather than the whole economy. These policies aim to improve the efficiency, competitiveness, and innovation of specific parts of the economy .

Micro-economic reform

Refers to targeted government policies designed to improve the efficiency, productivity, and competitiveness of specific industries or sectors.

Rather than affecting the whole economy (like macro policy), micro reform focuses on individual industries or even specific organisations

Types of reforms

Privatisation: Government-owned business sold to private owners

Deregulation: Removal of government controls in an industry.

Training & Apprenticeships: Learning new skills to improve job performance. Paid work with structured, hands-on skill training.

Workplace Relations: The systems, laws, and agreements that manage the relationship between employers and employees—including wages, conditions, and dispute resolution.

Trade Agreements: Deals to make international trade easier.

Opportunities (Micro)

Create opportunities for organisations to improve and became more enterprising. Many micro polices are supported by government funding in he of projects, government agencies and/or industry assistance.

Emerging Opportunities

• New career paths

• Productivity gains

• Innovation potential

Pressures (Micro)

Place pressures on Australian enterprises because it forces them to become more competitive. Many micro policy decisions impact over a long period of time.

Initial Pressures

• Job loss

• Skill gap

• Retraining requirements

• Competitive intensity

Enterprising responses

Enterprising responses are proactive, positive actions by workplace stakeholders to government or industry change. Allowing them to adapt to change and improve outcomes

Why enterprising responses matter

Builds resilience Prepares workers for future change Creates innovation and opportunity

Adaptability (Manufacturing)

Stakeholders can change to implement more sustainable manufacturing processes throughout work practices, to reduce their environmental footprint, and to cut costs.

Learning & Development (Technology)

Workplace stakeholders in tech industry need to be able to use technology effectively, which requires ongoing training and e-learning in emerging digital technologies.

Chapter 2- International competitiveness

International Competitiveness

ability of industries and firms to successfully compete in the global marketplace against foreign competitors.

Trade journey

Early Trade (1800s-1950s): Australia established with wool as primary export.

Mining Boom (1960s-2000s): Discovery and exploitation of vast mineral resources. Shift in trade focus toward Japan and emerging Asian economies.

Services Economy (2000s-Present): Growth in education, tourism, and professional services exports.

Modern Challenges (Present): Navigating geopolitical tensions, sustainability demands, and digital transformation while maintaining competitive advantage.

Rising AUD

• Exports cost more = less competitive

• Imports cheaper = retail benefits

• Tourism, education may decline

Falling AUD

• Exports more competitive

• Imports more expensive

• Boost for tourism, education, manufacturing

Imports and Exports

Exports: Goods and services produced domestically and sold to other countries

Imports: Goods and services purchased from other countries for domestic consumption

Goods and Services

Goods: Tangible products (e.g., minerals, agricultural products, manufactured items)

Services: Intangible offerings (e.g., education, tourism, financial services, healthcare)

Balance of trade

Shows the difference between how much a country exports(sells) and how much it imports (buys).

Trade surplus: Exports are greater than Imports

Trade deficit: Imports are greater than Exports

Why trade balance matters

• A surplus might suggest strong export industries and economic strength.

• A deficit might indicate high consumer demand or reliance on foreign goods/services

Adaptability and innovation (Global pressure)

Adaptability & Innovation: Businesses pivot products or services to meet new global demands.

• E.g. Education providers shifted to online learning models and offshore campuses during and after COVID-19.

Managing and Leading (Global pressure)

Managing and Leading Change: Leaders guide businesses through uncertainty with strategy and vision. • E.g. Regional tourism leaders led domestic marketing campaigns when international travel stopped.

Workplace Impacts Global Pressure

• Upskilling: Investing in employee training for new technologies

• Outsourcing: Moving certain functions offshore to reduce costs

• Closures: Some industries unable to compete internationally • New Opportunities: Emergence of export-oriented service sector

Chapter 3- Changing Societal Values

How is the healthcare industry being affected by changing conditions in Australia?

The healthcare industry is experiencing significant change due to factors like the ageing population, technological advancements such as telehealth and AI diagnostics, and pressures from pandemics like COVID-19, which have increased demand for services and highlighted the need for resilient, tech-enabled systems.

Societal values

Societal values are shared by groups of people or communities, and they evolve overtime.

These influence workplace laws, business policies, and social movements.

What societal values influence sustainable innovation?

Societal values such as climate responsibility, ethical consumption, and environmental awareness are influencing organisations to pursue sustainable innovation.

Workplace expectations (Societal values

Shift from lifetime employment to career mobility

• Growing emphasis on corporate social responsibility

• Increasing expectations for workplace diversity and inclusion • Rising importance of sustainability practices

Conflict between stakeholders

Differing societal values can lead to conflict between stakeholders, because commercial decisions can impact on stakeholders in a variety of ways.

Opportunity Cost

Is the value of what you give up when making a choice. Every decision in work and life involves trade-offs.

Example: Choosing to work a shift means giving up study time or rest

Work/Life Balance Trends

Increasing pressure to balance work with personal life to accommodate personal priorities.

Causes: long hours, parenting, digital intrusion, commuting, cost of living, Covid-19

People-driven issues

People-driven issues are changes that happen in industry because of what people want, need, or believe.

Consumer Prefrences

People’s preferences have shifted in recent years based on social values, technology, and global events.

Examples:

• Electric Vehicles (EVs): More families are choosing EVs like Tesla and BYD as petrol prices rise and climate awareness grows

. • Ethical Fashion: Young consumers are buying from brands that promote fair trade or recycled materials

Consumer Purchasing Behaviour

How people buy things has also changed, especially after COVID and with new technology.

Click and Collect & Fast Delivery: Major stores (e.g. Kmart, Coles, JB Hi-Fi) now offer same-day pickup and express delivery options.

Buy Now, Pay Later: Platforms like Afterpay and Zip Pay are widely used— especially by young shoppers who want flexibility.

Labour Mobility

Where and how people work has changed because of cost of living, technology, and job availability.

Examples:

• Remote Work & Hybrid Roles: Many employees now work from home part of the week, especially in admin, IT, and education.

• Regional Relocation: People are moving from big cities to regional towns for cheaper housing and better lifestyle—especially since COVID.

Enterprising Responses to Changing Values

Adaptability: Quickly pivoting to meet new consumer demands gains competitive advantage.

Example: Retailers expanding online capabilities during lockdowns.

Leadership: Leaders who anticipate societal shifts can position their organisations as pioneers.

Example: Companies establishing sustainability targets ahead of regulations

Chapter 4: Environmental Sustainability

Sustainable resource use

Sustainable resource use means managing natural resources such as energy and water, so current needs are met without harming the ability of future generations to meet theirs.

Government initiatives on sustainability

Small-scale Renewable Energy Scheme (SRES) providing solar rebates and battery support

• Rewiring the Nation fund for electrical grid upgrades

• CSIRO innovation programs including Ultra Battery technology and the Drought Resilience Mission

Work-Related Skills for a Sustainable Future

Adaptability: Transitioning from traditional fossil fuel industries to renewable energy sectors requires workers to develop flexibility and embrace technological change.

Problem-Solving: Creating innovative solutions to address challenges like drought conditions and evolving energy needs in a changing climate.

Continuous Learning: Developing new technical skills in emerging fields such as renewable energy systems, agricultural technology, and sustainability management.