Australia has scored a dismal 14.3 out of 100 in terms of ease of doing business, according to a new report.
The 2019 Marketplace Expansion Index found regulatory pressure is preventing Australia from reaching its full potential.
The Index, released by Hyperwallet, a PayPal service and leading global payouts provider, was conducted across 36 countries.
The report, which seeks to inform the global expansion decisions of digital marketplace platforms of today’s gig and sharing economies, analysed the local market to highlight key factors hindering or encouraging the emergence of expansion plans.
Despite its relatively small market size and “heavily regulated” economy, the report ranks Australia seventh out of 36 countries in terms of its expansion readiness.
Its position among the top ten countries proves that Australia remains a favourable market with exceptional growth potential, the report finds.
And while many gig and sharing economy platforms continue to grapple with regulatory pressure, more Australian consumers have embraced their services, the report finds.
According to the Australian Bureau of Statistics, nearly 10% of the population is employed on a casual basis.
Global marketplace dominance
The development of legislation that effectively manages the gig economy – preventing exploitation of labour and worker – without stifling innovation and entrepreneurship will add to Australia’s attractiveness for ecommerce and sharing economy platforms looking to scale quickly.
On the positive side, Australia was given a global marketplace dominance score of 100 out of 100 for the second consecutive year.
This was largely due to its high volume of cross-border and mobile transactions and successful global expansion of domestic marketplaces leading.
The report also noted Australia’s high level of awareness and acceptance of the “sharing” economy locally.
And its logistics infrastructure ranked 89.3 (out of 100), placing it among the highest.
On the downside, the report shows Australia has a heavily regulated economy, specifically regarding consumer protection, taxation, and payment/financial products.
Yet the research reveals the market is making key improvements in the right direction.