ABSTRACT
This chapter provides an overview of the general nature of the economic role of government in the post-war era in Australia. It describes the process by which government policy in Australia is formulated at both the Australian and the state government level. Public policy involves pretty much whatever the government does to alter the arrangements made by private individuals. In Australia, there are three levels of government – national, state, and local – all of which are involved in the formulation and application of microeconomic policy. The Australian Government's responsibilities include such things as financial market regulation, health insurance, telecommunications, postal services, aviation, agricultural policy that involves international trade, corporation law, higher education, trade policy, immigration policy, and a range of other areas.
