These refer to government policy such as the degree of intervention in the economy. What goods and services does a government want to provide? To what extent does it believe in subsidising firms? What are its priorities in terms of business support? Political decisions can
impact on many vital areas for business such as the education of the workforce, the health of the nation and the quality of the infrastructure of the economy such as the road and rail systems.
The federal government is separated into three branches:
The legislature: the bicameral Parliament, comprising the Queen (represented by the Governor-General), the Senate, and the House of Representatives;
The executive: the Federal Executive Council, in practice the Governor-General as advised by the Prime Minister and Ministers of State;
The judiciary: the High Court of Australia and other federal courts, whose judges are appointed by the Governor-General on advice of the Council.