Australia is considered to be a very attractive investment destination, known for its well-functioning independent judiciary, transparent regulatory climate, and overall low levels of corruption. However, in recent years, several scandals involving Australian public officials, most notably in the border protection services and the public procurement sector, in addition to an increase in the foreign bribery offences, have shed light on the lack of enforcement of Australia's anti-bribery provisions in the Criminal Code. Recent volatility in global markets and increased pressure to win and retain business make companies vulnerable to corruption. The risk of bribery and corruption is furthermore enhanced by the decentralised government structure in Australia.

Positive developments in relation to corruption and investment:

• In 2012, Australia's government developed its first National Anti-Corruption Plan aimed at improving the government's approach to combating corruption, including an examination of federal agency roles and responsibilities and improvement of anti-corruption policy implementation and coordination.
• In 2012, major reforms were introduced to the Australian Customs and Border Protection Service to improve transparency of the public sector.

Risks of corruption:

• In 2012, the OECD specifically indicated that overall enforcement of the foreign bribery offence in Australia has been extremely low. Deficiency and inconsistency in the investigation and prosecution of cases reported by whistle-blowers contribute to risks of corruption for international companies operating in Australia.
• Political parties in Australia are perceived to be the most corrupt institution in the country, due to an established system of political donations made by large donor corporations.