Australian society is built on well-functioning institutions that provide the stability and certainty needed for a high quality of life.
The quality of Australia's institutions sees it in the top 10 percent of countries in five out of six of the World Bank's dimensions of governance and above the average for high income OECD countries in all six of the World Bank’s dimensions.
These dimensions include:
- Voice and accountability - freedoms of expression, association, a free media and participation in elections.
- Political stability - the likelihood of political instability and/or politically motivated violence
- Government effectiveness - the quality of public and civil service, its independence, policy and implementation
- Regulatory quality - the ability of government to implement policies that promote private sector development.
- Rule of law - citizens’ confidence in and abidance by the rules of society and their enforcement.
- Control of corruption – the extent to which public power is exercised for private gain.
| Governance indicator | High Income OECD country average –2014 | Australia –2014 |
| Voice and accountability | 87 | 94.3 |
| Political stability | 77 | 87 |
| Government effectiveness | 88 | 92 |
| Regulatory quality | 87 | 98 |
| Rule of law | 88 | 96 |
| Control of corruption | 85 | 95 |
The World Bank’s analysis is based on data from 32 survey institutes, think tanks, non-government organisations, international organisations, and private sector firms.
The quality of these institutions contributes to the recognition of Australia as a reliable investment destination. The Economist Intelligence Unit, in its Business Environment Rankings 2016 has Australia as the eighth most investment friendly location in the world.