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COMMERCE TRANSFORMED Roset Khair, Kate Dally, Wendy Mockler Giles Tom Spencer, Tania White
Digital-only chapters • Cambridge University Press & Assessment © Khair, et al 2026 • 978-1-009-78780-2 • (03) 8671 1400
Chapter
6
Our economy
Lessons Setting the scene: how do we understand the economy?
6.2
How does Australia’s economic performance compare with India’s economic performance?
6.3
What are the effects of demographic changes, such as an ageing population and immigration, on Australia’s economic performance?
6.4
How does the government intervene in the economy to improve economic performance and living standards?
6.5
Why does Australia trade with other nations?
6.6
What does Australia trade and who do we trade with?
6.7
Skills focus: how do governments make decisions to solve economic problems?
6.8
Case study: the value of Aboriginal and Torres Strait Islander Peoples’ Cultural arts in the international market
6.9
Investigation: Australian farmers as global climate leaders
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6.1
6.10 Chapter review
Teachers access the Online Teaching Suite to: • plan, sequence and assign directed tasks for students and classes using Task Manager • view student activity reports • provide feedback to students • download a printable “Writing focus” workbook for this chapter.
Warning: Aboriginal and Torres Strait Islander people should be aware that this chapter discusses Culturally sensitive matters. Educators should take care to create a culturally safe environment for students of Aboriginal and/or Torres Strait Islander backgrounds.
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Chapter 6 Our economy
6.1
Setting the scene: how do we understand the economy? Success criteria
In this lesson, you will learn how key economic indicators, including the rate of economic growth, inflation and unemployment, are used to evaluate Australia’s economic performance.
❏ I can describe economic activity in Australia using the rate of economic growth, inflation and unemployment.
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Learning intention
Introduction
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Video 6.1.1 Setting the scene: our economy
Economist John Kenneth Galbraith once quipped that “the only function of economic forecasting is to make astrology look respectable”. That doesn’t mean that economic forecasting is no better than Paul the Octopus, who gained global attention for his much-hyped, and usually correct, predictions of 2010 FIFA World Cup football matches. What Galbraith was really saying was that predicting economic growth is incredibly difficult because it involves predicting the combined actions of millions of people and countless unpredictable factors. Despite these challenges, economists forecast economic trends using key indicators, such as the rate of economic growth, inflation and unemployment, and other factors. The following video from the Reserve Bank of Australia is a good place to start when considering what economics is: https://cambridge.edu.au/redirect/12168.
Writing focus 6.1 Question words
Economic growth
economic growth the increase in the size of a country’s economy over a period of time, usually a year
Employment
Interest rates (RBA cash rate)
Wage growth
Consumer confidence
Inflation rate (CPI)
Balance of trade (exports/imports)
Gross Domestic Product (GDP)
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Figure 6.1.1 Australia’s economic pulse. Just as doctors check your health by taking your vital signs, economists monitor key
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6.1 Setting the scene: how do we understand the economy?
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It is tough making predictions. Consider the following examples:
• the “unsinkable” Titanic • Netflix dismissed as a “very small niche business” • various experts declaring Bitcoin “dead” multiple times since 2010.
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All these failed predictions don’t mean that we shouldn’t keep trying to understand where we are heading. Knowing what is going to happen in the economy helps governments, businesses and households plan for what lies ahead. To do this, economists usually rely on a combination of two different approaches to forecast economic trends:
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Figure 6.1.2 John Kenneth Galbraith (1908–2006). At over 2 metres tall, this towering Canadian-born economist was literally and figuratively one of the giants of twentieth-century economics, advising every Democratic president from Franklin Delano Roosevelt (1933–45) to Bill Clinton (1993–2001).
1. Theory-based, where economists use their understanding of how they believe economies behave. 2. Data based, using the assumption that the past is a reasonable guide to the future.
Uncertainty creates unease, and people seek the safety of knowing what is coming next. A big part of being an economist is about giving people the right information they need so they can make good decisions. Economists study the patterns and signals around us, from employment rates to consumer spending, that offer glimpses, for the educated, into our economic future. In this lesson, you will come to grips with the jargon of economic indicators and start piecing together what is really happening in the economy so you can add a dose of your own common sense and make informed decisions for your future.
Key indicators of economic activity
Economists calculate and use many different indicators to help understand how the Australian economy is performing. Some of the key indicators include:
• economic growth rates • inflation rates • unemployment rates.
We are going to explore each of these and what they can tell us about the Australian economy.
Economic growth
Economic growth measures how much the size of a country’s economy increases over time. It is important to measure economic growth as a growing economy creates employment opportunities where people can earn an income and businesses make a profit. This is the basis for a prosperous economy and society. Economists measure economic activity by adding up how much different decision-makers spend on goods and services that have been produced in Australia and overseas. This measure of economic activity is called gross domestic product (GDP). The change in GDP over time is called GDP• Cambridge growth or economic growth. Digital-only chapters University Press & Assessment © Khair, et al 2026 • 978-1-009-78780-2 • (03) 8671 1400
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Chapter 6 Our economy
If the economy grows too fast, prices of goods and services start to increase faster than people’s ability to pay for them. If the economy grows too slowly, people can lose their jobs, businesses struggle to make a profit, and households have less money to spend. Economists describe the optimal range over which an economy can grow as its “speed limit”.
Inflation Inflation is an increase in the prices of the goods and services that households buy. It is measured as the change in those prices over time. The Australian Bureau of Statistics (ABS) uses the Consumer Price Index (CPI) to measure inflation. The CPI measures the change in the price of a “basket” of goods and services consumed by the average household. Inflation is measured as the change in the price of this basket over time. If inflation is 3%, a basket of goods and services that cost $100 last year will cost $103 this year. In Australia, keeping the CPI between 2% and 3% is a key part of our economic management.
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inflation the rate at which prices for goods and services rise over time despite no added value to the product, leading to the same amount of money buying less over time unemployment rate the percentage of people who want jobs but cannot find work
When inflation is too high, prices can rise faster than incomes. This means people can afford fewer goods and services than before, making them worse off. If inflation is too low, then prices might stay the same or even fall (deflation), but this is very uncommon in Australia.
Unemployment
Unemployment is measured by the unemployment rate, which is the share of people in the labour force who are unemployed expressed as a percentage. The labour force includes everyone who is 15 years or older and is willing and able to work. If everyone who wants to work has a job and is working as many hours as they want to work, then an economy is operating at full capacity and should grow around its optimal speed.
If there are people who want to work but are unable to get a job, then this indicates there is spare capacity in the economy. Every month, many thousands of people leave their jobs, some of them voluntarily and some involuntarily. What matters is, if they want to, they can move back into secure employment. When there is spare capacity in an economy, it means people can’t get work and are not able to contribute and feel useful. It is not just about an economic principle of efficiency; it is also about human dignity and recognising how we all have something valuable that we can offer to others.
How is the economy doing today?
Economists use key economic indicators to make predictions that politicians and businesses use to inform policies and people use to make life decisions, such as buying a house or moving overseas. This activity encourages you to use the same data economists calculate and use, to make your own policy recommendations. You will be researching the performance of the Australian economy by reading and interpreting charts on the following key economic indicators:
• economic growth (GDP growth) • inflation • unemployment rate. Digital-only chapters • Cambridge University Press & Assessment © Khair, et al 2026 • 978-1-009-78780-2 • (03) 8671 1400
6.1 Setting the scene: how do we understand the economy?
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Figure 6.1.3 shows a useful strategy that you can use to read the data like an economist.
Scan and skim
Read through the information
Re-read more slowly and thoroughly
Annotate and highlight useful information
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Figure 6.1.3 How to read data
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Start by quickly scanning and skimming the whole text by reading the titles and any subheadings. Next, read the whole text and think about the connections between what you are reading and what you know. Then, re-read the text and circle or underline terms that are unfamiliar. Finally, annotate and highlight important ideas and link them to broader economic concepts and events before summarising the main ideas.
Activity 6.1.1
This learning activity uses the Snapshot Comparison tool on the Reserve Bank of Australia (RBA) website. To access the data and charts, go to the RBA’s Snapshot Comparison, found at: https://cambridge.edu.au/redirect/11727. Open the tool and then follow these instructions to get started: 1.
Select a recent month and the month and year you were born.
2.
Make sure that you have ticked: “GDP Growth”, “Inflation” and “Unemployment Rate” in the “Refine by Subject” menu.
3.
Click “View” to see the data for the two chosen dates.
4.
Click on the drop-down arrow for each indicator to reveal a chart of the data.
Now work through these exercises: 1.
Copy the following table into your workbook and complete it using the data in the Snapshot Comparison.
Indicator
Current value
Past value
GDP growth
Unemployment rate Inflation
2.
For each indicator, describe how it changed or stayed the same from around the time you were born to now. Here are some examples of how you could describe the trend:
Upward trend
Downward trend
Stable trend
Increased Climbed Grew Recovered
Decreased Declined Weakened Fell
Constant Steady Stable Unchanged
Considerably Significantly
Slightly Slowly
Degree of change Sharply Rapidly
3.
Choose one of the indicators and research some of the possible reasons for the trend you have identified. Explain what may have happened to cause the trend.
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6.2
How does Australia’s economic performance compare with India’s economic performance? Success criteria
In this lesson, you will learn how to use key economic indicators to compare the performance of the Australian economy with the Indian economy and interpret what these differences reveal about each country’s economic structure and development.
❏ I can compare the performance of the Australian economy with that of another economy by interpreting charts on their GDP growth.
SA D I M GI PL T A E L C -O H N AP L Y TE R S
Learning intention
Starter activity
Economic check-in 1.
Partner quiz
In pairs, take turns naming an economic indicator (GDP growth, unemployment, inflation) and challenging your partner to: a. recall the most recent statistic b. state whether it was above or below historical average in the recent analysis c. describe in one word its recent trend (e.g. recovering, stable, declining).
2.
All together
Based on last lesson’s analysis, write on a sticky note: a. one economic indicator you would like to see high b. one economic indicator you would like to see low c. a six-month prediction of an economic indicator.
Place sticky notes on a class “Economic Forecast Board”.
Similar but different
Both Australia and India have economies shaped by their colonial histories, but they chose different paths after independence. India, with its independence in 1947, pursued a mixed economy model that prioritised self-reliance and domestic industries. This approach aimed to reduce dependence on foreign powers and build strong internal economic structures. Australia, with its smaller population and abundant natural resources, developed an economy focused on resource exports and trade relationships. Both approaches reflected each country’s circumstances and priorities at the time.
Writing focus 6.2 Transitional phrases
development (economic) the material living standards, overall health, education and environmental quality of a country
Despite their different economic outcomes, Australia and India share some key similarities that have shaped their development. Both nations have democratic governments and English as a widely spoken language, which helps with international trade and investment. Both are also members of the Commonwealth, which shares historical trading relationships and legal frameworks.
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6.2 How does Australia’s economic performance compare with India’s economic performance?
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However, some of the differences are significant and help explain their different economic paths. Australia’s population of 27 million contrasts sharply with India’s 1.4 billion people. This population difference creates different economic dynamics. India has a large domestic market and labour force, but also faces major challenges in providing education, healthcare and employment for all citizens. India has a strong bureaucratic culture, and the government has committed to reducing corruption. Figure 6.2.1 shows that over longer time horizons, Indian family-owned companies have more capability than Australian companies but have much higher levels of risk.
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Longer time horizons Less capability
More capability
Levels of risk
Lower risk
Higher risk
Indian family-owned
Australian companies
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Figure 6.2.1 Risk to Indian family-owned companies compared with Australian companies
Adapted from Department of Foreign Affairs and Trade (DFAT) website.
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Geographically, Australia’s abundant natural resources per capita (iron ore, coal, gold) have created wealth through mining exports, while India’s resource endowment relative to its population is much smaller. Australia’s isolated location has led to a focus on high-value exports and services, whereas India’s central position in Asia has made it a hub for manufacturing and information technology services. Cultural attitudes towards business and innovation also differ. India’s trading traditions and recent growth in technology have created a dynamic startup ecosystem, particularly in cities like Bangalore and Mumbai. Australia’s more conservative business culture focuses on stability and established industries, though this is gradually changing. The education systems reflect these differences too. India produces large numbers of engineers and IT professionals, supporting its technology boom, while Australia focuses on creating a skilled workforce across diverse sectors. Both approaches serve different Figure 6.2.2 Mumbai has become a hub for technology startups in India. economic strategies.
A tale of two economies Economic growth
The GDP growth chart in Figure 6.2.3 shows India typically achieving 5% to 8% annual growth, while Australia generally grows at 2% to 4% annually. These differences reflect several factors.
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Chapter 6 Our economy
12.0 10.0 8.0 6.0 4.0 2.0 0.0 –2.0 –4.0 –6.0 –8.0
Real GDP growth in Australia and India (1990–2025) India Australia
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GDP growth rate (%)
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1990 2000 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 Year
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Figure 6.2.3 A comparison of GDP growth rates shows how the Indian economy continues to grow rapidly while Australia has experienced more subdued GDP growth.
Source: World Bank Group website.
India’s higher growth rates reflect several advantages: a large domestic market that drives internal demand, a young population entering the workforce, and ongoing infrastructure development that creates employment and productivity gains. India’s diverse economy includes world-leading technology sectors, manufacturing industries and service exports.
Australia’s steadier growth pattern reflects different economic characteristics: an established infrastructure base, high productivity levels, and an economy that prioritises stability and sustainability. Australia’s approach focuses on maintaining high living standards while adapting to global changes.
Economic strengths
Both economies contribute valuable strengths to the global economy. India leads in information technology services, pharmaceuticals and sustainable development innovations. Indian companies provide technology solutions worldwide, and the country is developing renewable energy systems that other nations can learn from. Australia contributes through sustainable resource extraction, agricultural innovation and financial services. Australian expertise in mining technology, drought-resistant farming and environmental management benefits many countries.
Partnerships
The growing partnership between Australia and India demonstrates how different economic models can complement each other. The Australia–India Economic Cooperation and Trade Agreement (ECTA) creates opportunities for both countries to benefit from their respective strengths. This partnership focuses on four key areas: clean energy development, education and skills exchange, agricultural technology and sustainable tourism, while eliminating tariffs on 90% of Australian goods. These collaborations allow both countries to share knowledge and resources while respecting their different approaches to economic growth and development.
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6.2 How does Australia’s economic performance compare with India’s economic performance?
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The partnership shows how countries can work together as equals, with each contributing unique capabilities. Australia’s experience with resource management complements India’s manufacturing and technology expertise, while India’s large market provides opportunities for Australian businesses and Australia’s educational institutions benefit from international collaboration.
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Looking ahead
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Australia and India face similar global challenges: Figure 6.2.4 India’s Prime Minister Narendra Modi and Australian climate change, technological disruption and changing Prime Minister Anthony Albanese shake hands during a press trade patterns. However, they are addressing these conference following a bilateral meeting at Admiralty House in challenges in ways that suit their circumstances Sydney, 2023. and values. India is pioneering affordable renewable energy solutions, digital payment systems and sustainable urban development that serve as models for other large populations worldwide. Australia is developing expertise in sustainable resource use, climate adaptation and high-quality education systems. There are different paths to economic success, each shaped by a country’s unique circumstances, values and choices. Both economies contribute to global prosperity and innovation in their own important ways.
Review 6.2
Online quiz
Knowledge and understanding
Thinking, researching and communicating
Students can access sample responses and results online
Teachers can go online to assign questions, view results, reports and more!
Knowledge and understanding 1.
2.
3.
4.
What are the main similarities between Australia and India that have influenced their economic development? Explain why India typically achieves higher GDP growth rates (5% to 8%) compared with Australia (2% to 4%). What are the four key areas of focus in the Australia–India Economic Cooperation and Trade Agreement (ECTA)? Describe how Australia and India’s different population sizes affect their economic dynamics.
Thinking, researching and communicating
After reviewing the comparison of the Australian and Indian economies, you will compare the Australian and Chinese economies by interpreting charts on their GDP growth. 1.
2.
Access the IMF World Data set https://cambridge.edu.au/redirect/11903 and compare Australia and China datasets for real GDP growth. Describe the key patterns and trends shown in the data over the past decade. Research and explain three key factors that have contributed to China’s rapid economic growth compared with Australia’s more moderate growth pattern.
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Chapter 6 Our economy
6.3
What are the effects of demographic changes, such as an ageing population and immigration, on Australia’s economic performance? Success criteria
SA D I M GI PL T A E L C -O H N AP L Y TE R S
Learning intention In this lesson, you will learn how demographic changes, such as an ageing population and immigration, affect Australia’s economic performance, and how these trends create both opportunities and challenges for future economic growth.
❏ I can explain Australia’s key demographic changes using current data. ❏ I can evaluate the impact of demographic trends on Australia’s future economic performance using evidence from statistical sources.
Starter activity
The global economy in your phone
This infographic details how critical metals are used in smartphones. 1.
Turn to someone near you and share: what is one thing that surprised you about your smartphone’s global journey?
2.
In 10 words or less, write about what our smartphones tell us about how countries work together.
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Figure 6.3.1 Australia, China and India all play a role in the production of smartphones. For example, Australia is the world’s top producer of lithium, China processes about 85% of the world’s rare earth elements and India is fast becoming a major smartphone assembly hub.
Source: Visual Capitalist website. Digital-only chapters • Cambridge University Press & Assessment © Khair, et al 2026 • 978-1-009-78780-2 • (03) 8671 1400
6.3 What are the effects of demographic changes on Australia’s economic performance?
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Shaping the nation
Writing focus 6.3 Transitional phrases Country lands, waterways, seas and skyways to which Aboriginal and Torres trait Islander Peoples are connected
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Australia is unique – not only for its landscapes and wildlife, but for its people. Australia is home to the longest continuing cultures in the world: that of Aboriginal and Torres Strait Islander Peoples. For over 65,000 years, their traditional Knowledge has shaped and managed Australia’s sky, land and sea using sustainable practices through deep spiritual and Cultural connections to Country. ABS data from June 2025 showed that Australia is also one of the most multicultural developed nations in the world, with a higher percentage of residents born overseas (32%) than the United Kingdom (14%) or the United States (14%). Migration is a key driver of Australia’s population growth, which influences Australia’s economic performance.
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Australia’s population is expanding, and as a nation, we are more diverse than we have ever been. Using census data, the Australian Bureau of Statistics (ABS) reported that “In 2024, nearly every country from around the world was represented in the birthplaces of Australia’s population”. In June 2025, the ABS reported that over onethird of Australians had been born overseas. The data showed that they were most likely to have been born in India, England, the People’s Republic of China or New Zealand (in that order). For economists, understanding the effects of demographic changes in Australia is important for economic decision-making. This lesson introduces you to some of the headline statistics that tell us who we are so that we can consider economic challenges and benefits ahead. For example, economists try to understand how an ageing population could create economic pressures, such as Figure 6.3.2 Garma Festival 2022. The festival is a celebration of Yolngu Culture aimed at sharing Culture and Knowledge, which also brings healthcare and aged care costs, and how this politicians and Indigenous leaders together to discuss issues facing could impact productivity and future budgets. Aboriginal and Torres Strait Islander people. You will be shaping Australia’s future as the demographic landscape transforms, so understanding these changes means you can prepare for new career opportunities, influence policy decisions, and help create innovative solutions for the future.
Snapshot of Australia
Economists use data to tell stories. After reading through this data, use this information to tell Australia’s story about how our economy is affected by demographic changes.
Who are we?
• Australia’s population is growing by more people annually than ever before. Currently •
at 27.6 million as of June 2025, we are projected to reach around 31.3 million by 2035. Australia is now one of the most culturally diverse nations on the planet. Australia’s total population growth over the past year stands at 446,000, with 76% resulting from net overseas migration (341,000) and 24% from natural increase (105,000). Digital-only chapters • Cambridge University Press & Assessment © Khair, et al 2026 • 978-1-009-78780-2 • (03) 8671 1400
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Chapter 6 Our economy
• There are approximately 10 million
households in Australia. The average household size is around 2.6 people. Australia is experiencing record low fertility rates and declining birth numbers. The fertility rate hit a historic low of 1.48 babies per woman in 2024, with 292,318 registered births – down from 1.85 in 1994. Mothers are becoming older. The median age for mothers increased to 32.1 years in 2024, while fathers average 33.9 years. New South Wales, currently with 8.3 million people, continues to receive the largest net Figure 6.3.3 The demographics of Australia are constantly changing. overseas migration (168,000 annually). Victoria’s population is growing at 2.7% annually, but Western Australia now leads growth at 3.1% due to mining sector recovery and interstate migration patterns. Australia’s median age has increased from 32 years three decades ago to 38.5 years today. The population is expected to continue ageing, with median age projected to reach between 43.8 and 47.6 years by 2066. There are over 13 million employed Australians. Gens Y and Z continue to comprise most of the workforce, increasingly moving into leadership roles as demographic transitions accelerate. Employment patterns show continued flexibility. Average job tenure remains around 2.9 years, meaning emerging generations are expected to have multiple jobs across several careers over their lifetime, reflecting ongoing employment flexibility and worker empowerment.
•
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• •
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• • • •
For a detailed overview of Australia’s population, visit the link: https://cambridge.edu.au/redirect/11728.
Review 6.3 Online quiz
Knowledge and understanding
Thinking, researching and communicating
Students can access sample responses and results online
Teachers can go online to assign questions, view results, reports and more!
Knowledge and understanding 1.
2.
3.
4.
Define net overseas migration and explain why it accounts for 76% of Australia’s population growth. Explain how Australia’s median age of 38.5 years compares with three decades ago and what this demographic shift means for the economy. Using the data that 51% of permanent migrants hold bachelor’s degrees compared with 29% of all Australians, and that permanent migrants have a 4.4% unemployment rate compared with Australia’s overall 4.6%, analyse how skilled migration impacts Australia’s economic performance. Explain why Australia’s fertility rate of 1.48 babies per woman is economically significant.
Thinking, researching and communicating 1.
2.
Using a PMI (Plus, Minus, Interesting) graphic organiser, analyse how Australia’s demographic changes will create both economic opportunities and challenges over the next decade. Research and compare Australia’s demographic transition with one other developed country. Digital-only chapters • Cambridge University Press & Assessment © Khair, et al 2026 • 978-1-009-78780-2 • (03) 8671 1400
6.4 How does the government intervene in the economy to improve economic performance and living standards?
6.4
653
How does the government intervene in the economy to improve economic performance and living standards? Success criteria
In this lesson, you will learn how the Australian Government uses fiscal and monetary policies to influence economic conditions, improve living standards and respond to economic challenges.
❏ I can explain how the government intervenes in the economy. ❏ I can analyse the effect of these policies on key economic indicators.
SA D I M GI PL T A E L C -O H N AP L Y TE R S
Learning intention
Starter activity
Demographic-economic snapshot
Access the ABS population clock and pyramid using the following link: https://cambridge.edu.au/redirect/12059.
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Figure 6.4.1 This population pyramid shows Australia’s ageing demographic structure. Run the simulation from 1981 to 2071. Notice the “bulge” in middle-aged groups and the narrower base of younger people. Consider what this means for future workers, healthcare costs and economic growth.
Source: ABS website.
1.
Read the list of demographic impacts below.
• healthcare job growth • housing affordability crisis • cultural trade networks
• ageing workforce • skilled migration • infrastructure strain.
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2.
Chapter 6 Our economy
Copy the following table into your workbook.
Economic opportunities
3.
Economic challenges
Sort each impact into one of two columns:
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• economic opportunities – situations that can lead to growth, innovation or benefits for the economy • economic challenges – situations that create problems, costs or barriers for the economy.
4.
Explain your reasoning for each choice.
Government economic policies
Writing focus 6.4 Developing sentences
Picture this: your savings account becomes worthless overnight, your employer shuts down without warning, and there is no government safety net to catch you. For millions of people in the 1930s, this nightmare became reality during the Great Depression. Before this economic catastrophe, most experts believed economies were like smartphones with automatic updates – sure, they would glitch sometimes, but they would always fix themselves without any outside help. This “hands-off” approach meant governments should just balance their budgets and let markets sort themselves out, much like letting your phone’s software update itself. But when the Depression hit and economies stayed broken for years, a brilliant economist named John Maynard Keynes basically said, “This is ridiculous – sometimes you need to manually restart the system!” Keynes revolutionised economic thinking by arguing that sometimes governments need to act like economic paramedics, injecting money into the economy through increased spending and tax cuts when people stop buying things and businesses stop investing. Cambridge economist Joan Robinson was also developing groundbreaking theories about market imperfections and economic intervention during this same period, though history tends to remember Keynes’s name more prominently. Later, economist Milton Friedman and his research partner Anna Schwartz challenged this approach with their influential work on monetary history, arguing that controlling the money supply through central banks was far more effective than government spending sprees.
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Figure 6.4.2 Professor Joan Robinson (1903–1983) was a Keynesian economist who challenged the view that markets tend to a competitive equilibrium. She showed that just because something is not paid for or is paid at a low rate, this does not make it of a lesser value, economically or socially.
Fast-forward to 2020, when the COVID-19 pandemic hit Australia, and our government went full Keynesian mode – introducing JobKeeper payments, JobSeeker supplements and stimulus packages.
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It was like the government became everyone’s financial life support system overnight. But here’s where it gets interesting: economists are still fiercely debating whether this approach actually works long-term, or if we are just creating bigger problems down the road. Some say monetary policy (controlling interest rates) is better than fiscal policy (government spending), while others argue we need both tools in our economic toolkit. The truth is nobody really knows which approach will dominate the next 20 years – making this one of the most interesting questions without a clear answer.
Monetary policy
Figure 6.4.3 Anna Schwartz (1915–2012) was a remarkable economist who showed how money matters in the economy. When Milton Friedman was awarded the 1976 Nobel Prize in Economics, it was an injustice that Schwartz didn’t get it, too. As Friedman admitted, “Anna did all of the work, and I got most of the recognition.” ➜
The Reserve Bank primarily controls monetary policy through the cash rate target, which is the interest rate banks charge each other overnight. During extreme economic conditions, the Reserve Bank uses additional tools, including forward guidance (advance policy announcements), term funding facilities (favourable bank loans), yield curve control (targeting bond interest rates), and quantitative easing (purchasing government securities). The Reserve Bank used several of these unconventional tools during the COVID-19 pandemic, when near-zero cash rates were not sufficient.
What are the objectives of monetary policy?
The overarching objective of the Reserve Bank, as established by the 2024 amendments to the Reserve Bank Act 1959, is “to promote the economic prosperity and welfare of the people of Australia both now and into the future”. The Act sets out that this is best achieved by the Monetary Policy Board setting policy that best contributes to:
Video 6.4.1 The state of living in Australia ➜
Monetary policy is the regulation of the money supply and interest rates to influence economic activity, including economic growth, employment and inflation. In Australia, monetary policy is conducted by the Reserve Bank of Australia, the nation’s central bank, which acts independently of the federal government. The Reserve Bank does this primarily through setting the official interest rate, which is referred to as the cash rate target. Monetary policies are described as demand-side policies because they work by stimulating or discouraging spending on goods and services, also known as aggregate demand.
monetary policy actions taken by a government to control the amount of money in an economy and how easily available it is; for example, by changing the interest rate
fiscal policy a government’s plan for deciding how much money to borrow and to collect in taxes, and how best to spend it, in order to influence the level of economic activity
• price stability in Australia the maintenance of full employment in Australia. • Digital-only chapters • Cambridge University Press & Assessment © Khair, et al 2026 • 978-1-009-78780-2 • (03) 8671 1400
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Chapter 6 Our economy
Australia’s inflation target
To achieve an inflation rate of 2–3%
Inflation
3%
SA D I M GI PL T A E L C -O H N AP L Y TE R S
2%
Time
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Figure 6.4.4 The Reserve Bank of Australia’s Monetary Policy Board meets eight times a year, following the release of key economic data on inflation and economic activity, and decides if the official cash rate should increase, decrease or remain unchanged from the last meeting.
Source: Reserve Bank of Australia, 2025.
Since the early 1990s, the Reserve Bank has used an inflation target to achieve its monetary policy objectives. Australia has a flexible inflation target, which is to keep consumer price inflation, measured by the Consumer Price Index, between 2% and 3%. The Monetary Policy Board sets monetary policy such that inflation is expected to return to the midpoint of the target. The primary and conventional tool for monetary policy, the official cash rate, is the market interest rate for overnight loans between financial institutions. It has a strong influence over other interest rates, such as deposit and lending rates for households and businesses.
How does monetary policy influence economic activity?
Monetary policy affects interest rates across the economy, from mortgage and business lending rates to returns on savings accounts. When interest rates change, they influence whether people choose to spend or save, and whether businesses invest or delay expansion plans. These decisions ripple through the economy, ultimately impacting economic growth, job creation and prices. The effects work through multiple pathways as monetary policy helps stabilise economic fluctuations while keeping inflation within the target range. When the Reserve Bank cuts interest rates, it is like offering everyone a discount on borrowing money – suddenly taking out loans for cars, homes or business expansion becomes cheaper, so people spend more. But there’s a catch: it takes time for businesses to produce more stuff to meet this extra demand. You can’t instantly build new factories, hire workers or create products overnight. So initially, there is more demand than supply, which pushes prices up – that is inflation kicking in.
This whole process is like a slow-motion domino effect that can take one to two years to fully play out. Inflation expectations become a psychological game changer. If workers think prices are going to rise, they will demand bigger pay rises to keep up, which causes the inflation they were worried about – it can be a self-fulfilling prophecy!
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6.4 How does the government intervene in the economy to improve economic performance and living standards?
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That is why the Reserve Bank’s 2% to 3% inflation target is so important: it tells everyone “This is what we are aiming for”, which helps people make smarter decisions about spending, saving and investing because they are not constantly guessing what might happen to prices.
Fiscal policy
SA D I M GI PL T A E L C -O H N AP L Y TE R S
Fiscal policy refers to government decisions about spending and taxation to influence economic activity, including economic growth, employment and inflation. In Australia, fiscal policy is conducted by the federal government through Treasury, which acts as the government’s lead economic adviser. The government does this through two primary tools: government spending and taxation.
The government primarily controls fiscal policy through spending decisions (such as infrastructure projects, social security payments and public services) and taxation policy (including personal income tax, company tax, and goods and services tax). During extreme economic conditions, governments may use discretionary fiscal measures, including stimulus packages, emergency spending programs and temporary tax measures. Australia deployed several of these tools during the COVID-19 pandemic, including JobKeeper payments, JobSeeker supplements and various business support measures.
What are the objectives of fiscal policy?
Government spending and taxation serve three main purposes: allocating resources efficiently (such as providing public goods and addressing market failures), redistributing resources fairly (through progressive taxation and social security systems) and stabilising the economy (through both automatic stabilisers like unemployment benefits and discretionary measures during economic crises).
The government uses both discretionary spending (decided through the annual budget process based on policy priorities such as defence, infrastructure and education) and non-discretionary spending (automatic stabilisers such as unemployment benefits and age pensions that respond automatically to economic conditions). The budget process involves planning and prioritising through the Expenditure Review Committee (ERC), consisting of the Prime Minister, Treasurer and the Minister for Finance, along with other selected portfolio ministers. This is followed by spending and monitoring implementation.
How does fiscal policy influence economic activity?
Fiscal policy affects economic activity through its impact on aggregate demand and supply. When the government increases spending or cuts taxes, it puts more money into people’s pockets, encouraging them to spend more on goods and services. This increased demand can boost business activity, create jobs and stimulate economic growth. Conversely, reducing government spending or raising taxes can cool an overheating economy and help control inflation.
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The business cycle
Potential
GDP
Lower unemployment, higher inflation
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Actual
Unlike monetary policy, fiscal policy can work through both demand-side and supply-side channels. Government infrastructure spending, for instance, not only provides immediate economic stimulus through increased demand but also boosts the economy’s long-term productive capacity. Education and skills programs can increase workforce productivity, while tax incentives can encourage business investment and innovation.
Sometimes the effects of fiscal policy can be more immediate than monetary policy, particularly during economic crises. Government spending directly injects money into the economy, while tax changes immediately affect people’s disposable Time income. For example, reducing excise duty on fuel during the fuel crisis in 2026 provided Figure 6.4.5 The government uses fiscal policy to smooth out the business cycle. When actual GDP falls below potential (recession), expansionary some relief for household budgets. However, fiscal policy stimulates growth. When actual GDP exceeds potential (boom), fiscal policy is subject to political constraints contractionary fiscal policy prevents overheating and controls inflation. and longer decision-making processes, Source: Reserve Bank of Australia, 2025. as changes typically require parliamentary approval through the annual budget cycle. This makes discretionary fiscal policy less flexible for fine-tuning economic conditions, though automatic stabilisers like unemployment benefits provide some immediate response to economic downturns without requiring new policy decisions. Higher unemployment, lower inflation
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Review 6.4 Online quiz
Knowledge and understanding
Thinking, researching and communicating
Students can access sample responses and results online
Teachers can go online to assign questions, view results, reports and more!
Knowledge and understanding 1.
2. 3.
4.
Define monetary policy and explain the primary tool used by the Reserve Bank of Australia to implement it. List and explain the three main objectives of fiscal policy. If Australia entered a recession tomorrow, identify two types of government spending that would automatically increase and two types that would only increase if politicians decided to act. Explain why this distinction is important for economic stability. Describe how inflation expectations can become a self-fulfilling prophecy in monetary policy.
Thinking, researching and communicating 1.
2.
Compare and contrast the speed and flexibility of monetary policy versus fiscal policy in responding to economic crises. Research the most recent Statement on Monetary Policy and the Treasurer’s Budget Statement. Imagine you are a member of the Monetary Policy Board and write a 300-word memo justifying your next interest rate decision. Digital-only chapters • Cambridge University Press & Assessment © Khair, et al 2026 • 978-1-009-78780-2 • (03) 8671 1400
6.5 Why does Australia trade with other nations?
6.5
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Why does Australia trade with other nations? Success criteria
In this lesson, you will learn why Australia trades with other nations and how concepts such as scarcity, opportunity cost and comparative advantage explain the benefits of international trade for economic growth and living standards.
❏ I can explain why nations engage in international trade.
SA D I M GI PL T A E L C -O H N AP L Y TE R S
Learning intention
Starter activity
Cloze challenge: understanding international trade
Copy out the paragraphs below and complete them with the missing words from the word bank.
taxation | economy | fiscal | increase | lower | monetary | cash rate | regulation | ACCC | monopolies | services | living | reduce
The Australian Government plays an important role in managing the __________ through various forms of intervention. One key tool is __________ policy, where the government adjusts its spending and __________ levels to influence economic activity. When the economy is struggling, the government might __________ spending on infrastructure projects or __________ taxes to stimulate growth. Another major tool is __________ policy, controlled by the Reserve Bank of Australia (RBA). By raising or lowering the __________, the RBA can influence how much people borrow and spend. During economic downturns, __________ interest rates encourage borrowing and investment. The government also intervenes through __________ to protect consumers and ensure fair competition. The Australian Competition and Consumer Commission (__________) monitors business practices and prevents companies from forming harmful __________. Finally, the government provides essential __________ such as healthcare, education and infrastructure that the private market might not supply efficiently. These interventions aim to improve __________ standards and ensure that the economy operates effectively.
Helping ourselves while helping others
Trade brings countries together, creates wealth and changes the structures of economies. It can also impact living standards and create disputes and diplomatic crises. Think of it this way:
• Would you support a government policy that reduced your and your family’s
prosperity to make it more difficult for people in another country, who earn less than $2 a day, to escape poverty?
The answer is obvious: No! But try this one:
• Would you support a government policy that restricts trade with other countries,
where they pay their workers very low wages, to protect high-wage jobs in Australia?
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Writing focus 6.5 Appositives
Chapter 6 Our economy
Figure 6.5.1 After US President Donald Trump imposed tariffs on Chinese goods and China responded with tariffs on US products, Australia was dragged into a dispute with its largest trading partner, China. ➜
This time you probably answered: Yes! But these two questions are asking the same thing – they are just worded differently. The point here is not that people don’t care about others who have less than them; that is not true! It is about widespread misinformation about the effects of free trade, or trade without barriers such as tariffs and other restrictions, that we will all be worse off if we cannot compete against low-paid foreign workers. In this lesson, we are going to use the fundamental concepts of scarcity, opportunity cost and comparative advantage to explain why international trade increases gross domestic product (GDP) and people’s incomes as well as raising living standards for us and our trading partners.
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How long could you live if you did not have access to supermarkets, running water or sewerage and you had to live completely off-grid, including growing your own food? Probably not very long. Each of us relies on the knowledge of tens of thousands of other people who know how to keep our electricity connected, grow our food, ensure that our water is clean, treat us when we become unwell – a whole range of specialists help us live a good life. Economic growth in our time is due to the creation of new knowledge. That new knowledge is shared when we trade so that we can all benefit.
Free trade
➜
Video 6.5.1 When global connections stop
For most of our modern history, Britain has been Australia’s major trading partner. By 1967, Japan had surpassed Britain as Australia’s main market, and later China became Australia’s top trading partner, in 2006. Australia’s strategic trade relationships, economic reforms and supply of resources combined to create the most sustained economic expansion in modern developed world history, with an unprecedented 28 to 29 years of continuous economic growth. Australia is the only country in the developed world to have done this. How did that happen? We will explore the economic case for free trade and its impact on economic growth, employment and inflation to understand how the Australian economy has flourished.
Scarcity
Scarcity in economics relates to our limited ability to produce goods and services and our unlimited desire to want those goods and services. Scarcity means that when we do more of something, we do less of something else. There is an opportunity cost for making that change. The cost is not always about the money; it can also be time or the pure joy of spending time doing something you love. It also has implications for trade.
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6.5 Why does Australia trade with other nations?
SA D I M GI PL T A E L C -O H N AP L Y TE R S
Technological progress, such as the introduction of generative artificial intelligence, pushes back the limits of scarcity by allowing more of the things we value to be produced by the same number of workers. In the short term, automation can cause people to lose their jobs and force them to retrain or move to another area, which is a difficult transition. However, in the long term, technological progress has eliminated lowpaying and dangerous jobs. Workers are most productive in jobs where their opportunity cost is lowest. International trade has the same effect as technological progress as it allows countries to specialise in producing what they do best and exchange for goods they cannot produce efficiently, effectively expanding the total amount of goods and services available to everyone and reducing the impact of scarcity.
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Comparative advantage
Comparative advantage occurs when a country can produce a good or service at a lower opportunity cost than another country, even if it is not necessarily the best at producing that item in absolute terms. Here’s an example to help you understand comparative advantage.
The scenario
Meet Drew and Indira. They both help with their family’s online business during weekends. The business needs two main tasks completed: 1. packing customer orders 2. updating the website with new products.
However, Drew and Indira work at different speeds, as shown in Table 6.5.1.
Table 6.5.1 Comparing Drew’s and Indira’s packing times Task
Drew’s time
Indira’s time
Pack 10 orders
2 hours
4 hours
Update 10 product listings
2 hours
1 hour
At first glance, Drew seems faster at packing while Indira is clearly quicker at website updates. But comparative advantage isn’t about who is fastest – it is about opportunity cost.
Calculating opportunity costs
When each of them chooses to do one task, what do they give up? Drew’s and Indira’s orders and listings are compared in Table 6.5.2. Table 6.5.2 Comparing Drew’s and Indira’s orders and listings
To pack 10 orders, they give up:
To update 10 listings, they give up:
Drew
10 product updates (2 hours of web work)
10 packed orders (2 hours of packing)
Indira
40 product updates (4 hours of web work)
2.5 packed orders (1 hour of packing)
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To pack 10 orders, Drew gives up only 10 updates while Indira gives up 40. This means Drew has a comparative advantage because he gives up less. When it comes to the website updates, Indira gives up only 2.5 packed orders compared with Drew’s 10. This means that Indira has the comparative advantage. Each of them is faster at different tasks, but the key insight is that they should specialise based on opportunity cost, not just speed. Drew should focus on packing orders, Indira on website updates. This way, they complete more work overall than if each tried to do everything.
SA D I M GI PL T A E L C -O H N AP L Y TE R S
This is exactly how international trade works – countries specialise in what they have a comparative advantage in, then trade for what they need. Specialisation creates enormous increases in productivity. The theory of comparative advantage explains how a country can increase its standard of living by specialising in what it can make with the lowest opportunity cost and trade for goods and services that have a high opportunity cost.
Australia has a comparative advantage in natural resources like iron ore, coal and agricultural products due to our vast land, geological endowments and relatively small population, which is why we export these commodities globally and import manufactured goods like cars, electronics and machinery that other countries can produce more efficiently. This specialisation allows Australians to enjoy higher living standards by accessing cheaper manufactured goods while our mining and agricultural sectors generate the export income to pay for them.
Review 6.5 Online quiz
Knowledge and understanding
Thinking, researching and communicating
Students can access sample responses and results online
Teachers can go online to assign questions, view results, reports and more!
Knowledge and understanding 1.
2.
3.
4.
Define comparative advantage and explain how it is based on opportunity cost. Using the Drew and Indira example, explain why Drew should focus on packing orders rather than website updates. Identify three Australian exports that demonstrate our comparative advantage and explain why we have this advantage. Explain how international trade acts similarly to technological progress in reducing scarcity.
Thinking, researching and communicating 1.
2.
Analyse why the two questions posed at the beginning of this lesson (“Would you support a government policy that reduced your and your family’s prosperity …?” versus “Would you support a government policy that restricts trade …?”) are essentially asking the same thing, despite likely receiving different answers. Research Australia’s top three trading partners today and compare your findings with our trading relationships in 1967. Analyse what economic factors might explain these changes. Students can access “Australia’s Trade through Time” on the DFAT website: https://cambridge.edu.au/redirect/11729.
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6.6 What does Australia trade and who do we trade with?
6.6
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What does Australia trade and who do we trade with? Success criteria
In this lesson, you will learn what goods and services Australia trades internationally, who our major trading partners are, and how these trade patterns have shifted over time.
❏ I can list Australia’s major exports and imports and trading partners. ❏ I can explain reasons for changes to Australia’s trading patterns, including possible future trends.
SA D I M GI PL T A E L C -O H N AP L Y TE R S
Learning intention
Starter activity
Think, pair, share: trade your future
Did you know that:
• one in 25 Australian jobs (4.2%) depends on trade with China • trade with China alone added $2600 to Australian household incomes in 2022 to 2023 • your family would pay 4.2% more for goods and services without China as a trading partner? 1.
Think: if one in 25 jobs depends on just one trading partner (China), what happens to Australian workers and consumers when that trading relationship becomes less important?
2.
Pair: Australia exports mainly raw materials (iron ore, coal, gas) but imports manufactured goods (cars, phones, machinery). What are the long-term risks of this narrow export base for our living standards?
3.
Share: mining royalties and export taxes fund hospitals, schools and infrastructure. If commodity prices crash or trading relationships break down, how does this affect the government services that you rely on?
What we trade: the story in numbers
Trade balance refers to a country’s levels of imports and exports. When a country’s exports (X) are greater than imports (M), it has a trade surplus (X > M). When imports exceed exports, it has a trade deficit (X < M). Australia currently runs a trade surplus of around $30 billion, meaning the value of our exports is higher than the value of our imports.
Figure 6.6.1 The $2600 question: what happens to household incomes when trading partners clash? ➜
What Australia exports
Looking at 2024 data (Figure 6.6.2), Australia’s top exports tell a clear story about our economy. We are the world’s quarry: iron ore (19.3%), coal (13.2%) and natural gas (10.5%) make up over 40% of everything we sell overseas. Countries like China and Japan are building cities and factories, and they need our resources to do it. Education has become a massive export, at 8% of total exports. International students contribute more than our beef industry (2.2%). We are still world champions at producing gold (5.5%), premium beef (2.2%) and wheat (1.3%). These traditional exports might seem old-school, but they are steady earners.
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Writing focus 6.6 Creating topic sentences
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Chapter 6 Our economy
The growth story is in services such as tourism (3.5%), professional services and intellectual property. Services jobs are often higher-paid and less vulnerable to commodity price swings than mining.
Australia’s top exports in 2024 Agriculture and food 8%
Services 17%
SA D I M GI PL T A E L C -O H N AP L Y TE R S
41% Minerals and metals
Minerals and metals: Iron ore (19.3%), Gold (5.5%), Aluminium ores (2.0%), Copper ores (1.0%). Includes other ores and processed metals. Energy: Coal (13.2%), Natural gas (10.5%), Crude petroleum (1.7%). Includes refined petroleum. Services: Education-related travel (8.0%), Personal travel (3.5%), IP royalties (1.5%), Professional services (1.2%). Includes technical/business, financial, and digital services. Agriculture and food: Beef (2.2%), Wheat (1.3%), Meat excl. beef (1.1%). Includes oil-seeds and vegetables.
Energy 34%
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Figure 6.6.2 Australia’s top exports in 2024
Source: DFAT website.
What Australia imports
Looking at 2024 data (Figure 6.6.3), our import numbers reveal what we can’t or don’t produce efficiently. We are big spenders on travel, with personal travel (10.3%) topping our import list as Australians holiday overseas. That is more than we spend on refined petroleum (7.7%), despite being an energy exporter ourselves. Our manufacturing gap shows up clearly in these statistics: passenger vehicles (5.8%), computers (2.1%) and various machinery fill our import lists. We export iron ore but import affordable vehicles. Services dominate our shopping list, with professional services (3.5%), freight transport (2.9%) and intellectual property charges (2.7%). We are buying expertise and paying for foreign technology patents.
Australia’s top imports in 2024
Pharmaceuticals and medical
5%
3% Metals and minerals
Machinery 8% and equipment
ICT and electronics 12%
43% Services
Vehicles and 14% transport equipment
Energy 15%
Services: Personal travel (10.3%), Professional services (3.5%), Freight transport services (2.9%), Charges for intellectual property (2.7%), Passenger transport services (1.4%), Technical & other business services (1.3%), Telecom, computer and information services (1.2%) Energy: Refined petroleum (7.7%), Crude petroleum (1.3%). Vehicles and transport equipment: Passenger motor vehicles (5.8%), Goods vehicles (2.7%).
ICT and electronics: Telecom equipment & parts (2.8%), Computers (2.1%), Electrical machinery & parts (1.6%). Machinery and equipment: Civil engineering equipment & parts (1.2%). Includes heating/cooling, household equipment, furniture and plastics. Pharmaceuticals and medical: Medicaments (incl veterinary) (1.5%), Pharm products (1.3%). Metals and minerals: Gold (1.6%).
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Figure 6.6.3 Australia’s top imports in 2024 Source: DFAT website.
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6.6 What does Australia trade and who do we trade with?
Gold (1.6%) appears on both our export and import lists, showing how global commodity markets work. We mine it, export it, then import processed gold products back. Our top 10 imports total about 50% of everything we buy from overseas. The pattern is clear. We sell raw materials and buy back finished products, plus pay for services we can’t provide domestically.
Who are Australia’s main trading partners? Top trading partners
SA D I M GI PL T A E L C -O H N AP L Y TE R S
China dominates Australian trade, taking 30.1% of our exports, with nearly one in three dollars we earn overseas coming from our largest trading partner. Japan remains our second-largest partner, buying massive quantities of our iron ore, coal and gas to fuel its manufacturing economy. South Korea has grown steadily in importance, particularly for our resources, while the United States focuses more on our services and high-tech exports rather than raw materials. India is the rising star, rapidly increasing trade as its economy expands and it needs more resources for infrastructure development. But this wasn’t always the case. Australia’s trading relationships have shifted dramatically:
China
$212.7 billion
• 1960s: Britain was our main
Japan
$80.5 billion
$250b
$225b
$200b
$175b
$150b
$125b
$34.2 billion
$100b
India
$75b
$37.5 billion
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There has been a geographic shift as Australia’s trade has moved from Europe (70% in 1901) to Asia-Pacific dominance today. We now send 81.5% of exports to Asia, with only 6.7% going to Europe.
United States of America
$50b
•
$42.3 billion
$25b
•
Republic of Korea
$0
•
partner (colonial legacy). 1967: Japan surpassed Britain as our largest export market. 2006: China overtook Japan to become our biggest trading partner. Today: Asia accounts for over 80% of our exports.
Australia’s top five export markets (2023–24) (
Figure 6.6.4 Australia’s top five export markets in 2023 to 2024
Source: DFAT website.
Why trading patterns change
Australia’s trading relationships shift for four key reasons. Economic growth drives demand: China’s massive industrialisation from the 1980s created huge appetite for our iron ore and coal to build cities and infrastructure. Geography matters: shipping costs favour nearby partners; it is cheaper to send iron ore to Asian steel mills than to distant European ones, which helped make Japan a major partner. Political changes force adaptations: when Britain joined the European Union in 1973, it ended preferential trading with Australia, pushing us to seek new partners just as Asia was beginning its economic take-off. Finally, complementary economies create natural trade flows: Australia has what Asia needs (resources, food, education), while Asia produces what we need (manufactured goods, technology). These forces explain why our trade map hasDigital-only shifted chapters dramatically from Europe to &Asia-Pacifi dominance the past 50• years. • Cambridge University Press Assessment c © Khair, et al 2026over • 978-1-009-78780-2 (03) 8671 1400
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Chapter 6 Our economy
Figure 6.6.5 Australia’s trade support
Source: DFAT website
Review 6.6 Online quiz
Knowledge and understanding
Thinking, researching and communicating
Students can access sample responses and results online
Teachers can go online to assign questions, view results, reports and more!
Knowledge and understanding 1.
2. 3.
4.
Define trade surplus and trade deficit. Explain which one Australia currently has and what this means. Recall Australia’s top three exports and imports by value, including percentages. Describe the shift in Australia’s trading relationships since 1901. Explain how Australia’s trade relationships connect to UN Sustainable Development Goal (SDG) 8 (Decent Work and Economic Growth) and SDG 10 (Reduced Inequalities). Analyse both positive contributions and potential challenges.
Thinking, researching and communicating 1.
2.
Predict future trends in Australia’s trading relationships. Consider Indonesia’s growing economy and how middle-power alliances might develop in response to US–China tensions. Using DFAT country fact sheets (https://cambridge.edu.au/redirect/11730), create an infographic comparing Australia’s trade relationship with two countries: (1) one traditional partner (Japan/UK) and (2) one emerging partner (India/Indonesia). Include trade values, main exports/imports, and growth trends. Digital-only chapters • Cambridge University Press & Assessment © Khair, et al 2026 • 978-1-009-78780-2 • (03) 8671 1400
6.7 Skills focus: how do governments make decisions to solve economic problems?
6.7
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Skills focus: how do governments make decisions to solve economic problems? Success criteria
In this lesson, you will examine how fiscal and monetary policies are used by the federal government to influence economic conditions.
❏ I can identify the steps in economic decision-making. ❏ I can apply problem-solving strategies to real-world economic scenarios. ❏ I can evaluate the impact of different policy choices on living standards.
SA D I M GI PL T A E L C -O H N AP L Y TE R S
Learning intention
Starter activity
Imagine Australia’s unemployment rate rises sharply. 1.
The government introduces a new job creation scheme to combat rising unemployment. Using a clear chain of reasoning, finish these sentence starters explaining the consequences of this new policy. a. This is because … b. This leads to … c. As a consequence …
2.
The Reserve Bank of Australia decides to decrease the official rate to stimulate demand and lift employment. Using a clear chain of reasoning, finish the same sentence starters now explaining the consequences of this new policy.
3.
What impacts can you suggest could happen from both of these policies?
Why this skill matters
The Australian Government implements fiscal policy through the annual budget. The Reserve Bank of Australia implements monetary policy using a variety of tools. These policies impact key economic indicators, including the rate of economic growth, inflation and unemployment, which directly improve your standard of living or cause it to worsen. Understanding how and why policy decisions are made helps you not only make sense of what is happening now but also what may happen into your future. Policy options are compared in Table 6.7.1. Table 6.7.1 Comparing policy options
Fiscal policy
Monetary policy
Short-term
Jobs ↑, GDP ↑
Borrowing ↑
Long-term
Debt ↑
Growth ↑
Risks
Inflation risk
Inflation risk
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Chapter 6 Our economy
Step-by-step guide to the decision-making process
SA D I M GI PL T A E L C -O H N AP L Y TE R S
1. Define the problem. For example: high unemployment and slow economic growth. 2. Gather information. For example: key indicators such as GDP growth, unemployment rate, inflation. 3. Identify options. For example: increase government spending (fiscal policy); lower interest rates (monetary policy). 4. Evaluate consequences. For example: spending boosts jobs but may increase debt; lower interest rates encourage borrowing but risk inflation. 5. Make a decision and justify your reasons for it. For example: the option that best balances growth and living standards. Step 1: Define the problem
Step 2: Gather information
Step 3: Identify options
➜
Australia: key economic indicators (as at Sep–Dec 2025)
Worked example
• Scenario: Australia’s GDP growth is
4.3%
4.0
3.4%
3.6%
•
3.0 2.0
•
2.1%
1.0
0.0
Step 5: Decide and justify
Figure 6.7.1 Decision-making flow chart
5.0
Percentage (%)
Step 4: Evaluate consequences
•
GDP growth (through-year)
CPI inflation (year-ended)
Unemployment RBA cash rate rate target
➜
Figure 6.7.2 Australia: Key Economic Indicators (from ABS & RBA, as at Sep–Dec 2025) (GDP: Sep 2025; CPI: Nov 2025; Unemployment: Nov 2025; Cash Rate: Dec 2025) Sources for indicators: ABS National Accounts (GDP); ABS Consumer Price Index (CPI); ABS Labour Force (unemployment); RBA (cash rate target).
•
1%, unemployment is 7%, inflation is 2%. Question: should the government increase spending or cut interest rates? Analysis: government spending creates jobs quickly but increases debt. Cutting interest rates makes borrowing cheaper but takes time to impact. Decision: increase spending on infrastructure for job creation. Justification: supports living standards by reducing unemployment.
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6.7 Skills focus: how do governments make decisions to solve economic problems?
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Activity 6.7.1 Work in pairs to apply the decision-making steps to solve the economic problem outlined in this scenario. When the latest data dropped, there were some surprising results. Australia’s inflation rose sharply to 6%, but unemployment is low (4%). Use the data in Figure 6.7.2 showing the key indicators in the year leading up to the new release of statistics on inflation and unemployment. Identify the main economic problem in this scenario. Is it inflation or unemployment? Explain briefly.
2.
Explain why high inflation is a concern for households and businesses. List two possible effects.
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1.
3.
Compare the inflation rate in this scenario with the data shown in Figure 6.7.2. Is it higher or lower? What does this suggest about price stability?
4.
Analyse the following two options:
Option A: Increase taxes and reduce government spending (fiscal policy). Option B: Raise interest rates (monetary policy). For each option:
a. Describe what would happen to demand in the economy. b. Predict how this might affect inflation. c. Evaluate what risk this could pose for jobs and living standards.
5.
Decide which option is better for controlling inflation while maintaining living standards. Write a short paragraph that explains your decision and justifies it with two reasons, using evidence from Figure 6.7.2 and your analysis.
6.
Suggest one additional measure the government or RBA could consider if inflation stays high for several months.
Review 6.7
Online quiz
Knowledge and understanding
Thinking, researching and communicating
Students can access sample responses and results online
Teachers can go online to assign questions, view results, reports and more!
Knowledge and understanding 1.
2. 3.
4. 5.
Define fiscal policy. Define monetary policy. Identify two economic indicators used in decision-making. Explain why the government might choose to increase spending. Describe one risk of lowering interest rates.
Thinking, researching and communicating 1.
2.
Apply the decision-making steps to a new scenario: Australia faces a trade deficit and rising unemployment. What should the government do? Research a recent government economic decision (e.g. budget spending or cash rate change). Was it effective? Present your findings in a short report, following the structure you have learned in this lesson.
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6.8
Case study: the value of Aboriginal and Torres Strait Islander Peoples’ Cultural arts in the international market Success criteria
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Learning intention In this lesson, you will learn about the value of Aboriginal and Torres Strait Islander Cultural art in Australia’s economy and international trade reputation, and what government policies are doing to protect Indigenous Cultural and Intellectual Property (ICIP).
❏ I can explain what Indigenous Cultural and Intellectual Property (ICIP) means. ❏ I can argue how Aboriginal and Torres Strait Islander Cultural arts contribute to the economy.
Starter activity Fair or unfair?
Read out the following statements one at a time, and discuss your judgements as a class: Fair, Unfair, Unsure or Depends. Statements:
“If an artwork is online, anyone should be allowed to use it.”
2.
“Copying Aboriginal art patterns is fine because they’re traditional.”
3.
“Artists should get paid when their work is used on products.”
4.
“It’s okay to copy art if you change it a little bit.”
5.
“Cultural designs belong to everyone.”
Figure 6.8.1 Bronwyn Bancroft, a famous Bundjalung artist, brought a copyright infringement case involving an Aboriginal artist to court in 1991. ➜
1.
Aboriginal and Torres Strait Islander Cultural arts
Aboriginal and Torres Strait Islander Cultural arts are both Culturally significant and an important part of Australia’s contemporary economy. They contribute to international trade and provide income for artists and Communities. However, this sector faces ongoing challenges, particularly the sale of inauthentic products and misuse of Indigenous Cultural and Intellectual Property (ICIP). Aboriginal and Torres Strait Islander Peoples have long developed their own economic systems based on trade, exchange and Cultural responsibilities. The central economic issue examined in this case study is the pervasive problem of inauthentic Aboriginal and Torres Strait Islander-style products undermining the legitimate market.
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Analysis by the Productivity Commission reveals that non-Indigenous authored products accounted for up to $54 million of spending in 2019 to 2020, representing well over half of total souvenir sales. This market displacement reduces income for Aboriginal and Torres Strait Islander artists and Communities and can misrepresent their Cultural heritage in international markets.
Background and context
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Aboriginal and Torres Strait Islander Peoples have long engaged in trade and exchange across Country and with neighbouring cultures, including with Makassan seafarers. They now export native botanicals, art, design, cyber and clean energy solutions to world markets. They have been creating visual arts and artefacts for over 65,000 years, making this the world’s oldest continuous artistic tradition. These works are not only economic goods but also expressions of Cultural Knowledge and identity. This practice has evolved into a significant contemporary industry that:
• maintains, strengthens and shares Aboriginal and Torres Strait Islander Cultures • generates income for approximately 7300 artists through art centres nationally • creates economic opportunities in remote and regional Communities • is recognised internationally as part of Australian identity • provides Cultural tourism experiences valued by visitors. Market structure and size
The Aboriginal and Torres Strait Islander arts market operates across multiple segments, as shown in Table 6.8.1. Table 6.8.1 International market data for Aboriginal and Torres Strait Islander art in 2019 to 2020 Market segment
Annual value (2019–20)
Key characteristics
Art centre sales
$35 million
Authentic artworks, average artist income $3200
Independent artists
Significant portion
Higher average income ~$6000
Souvenirs/merchandise
$80+ million
Tourist products, high fraud risk
International market data indicates approximately 20% of international visitors purchased Aboriginal and Torres Strait Islander art, crafts or souvenirs in 2017 to 2018, representing potential for hundreds of millions of dollars in annual trade value.
Issue: fraud and Cultural misappropriation
A key economic issue affecting Aboriginal and Torres Strait Islander Cultural arts in international markets is the widespread production and sale of inauthentic products that misappropriate ICIP. ICIP refers to the rights of Aboriginal and Torres Strait Islander Peoples to control and protect their Cultural Knowledge and designs. These ideas have been developed through decades of Indigenous advocacy.
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This includes:
• fake art – products that misleadingly suggest Aboriginal or Torres Strait • • •
Islander authorship Cultural appropriation – unauthorised use of sacred symbols, traditional designs and Cultural motifs copyright infringement – reproduction of protected artworks without permission misleading consumer practices – false claims about product origin and authenticity.
Scale of the problem
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Research conducted by various organisations reveals the extensive nature of this market failure:
• mystery shopping exercises found • • •
➜
•
approximately 80% of products in tourist shops are inauthentic non-Indigenous authored products captured $54 million in sales (2019 to 2020) over half of all souvenir purchases with Figure 6.8.2 The majority of souvenirs featuring First First Nations designs are inauthentic Nations-inspired designs, like these boomerangs found in many products are mass-produced in tourist shops Australia-wide, are inauthentic. overseas factories (India, Indonesia, China) false marketing suggests Australian production and Aboriginal and Torres Strait Islander authorship.
Causes
Legal and regulatory gaps
Market failures in this sector stem from several interconnected causes. There is an absence of specific ICIP protection as Australian law does not recognise Indigenous Cultural and Intellectual Property rights in the way that Aboriginal and Torres Strait Islander Customary Lore does. Traditional Knowledge, symbols and Cultural Expressions cannot be adequately protected under existing copyright, trademark or design laws.
Inadequate consumer protection is another contributing factor. Until recent enforcement actions, there were limited penalties for false claims about product authenticity. The 2019 Federal Court case against Birubi Art, where the company was fined $2.3 million, set an important legal precedent by confirming that selling inauthentic “Aboriginal-style” products as genuine is misleading and unlawful.
Economic incentives for fraud
Profit maximisation incentives mean that producers gain by selling counterfeit products that can be mass-produced cheaply overseas and sold at significant markups. Manufacturing costs in Asia are substantially lower than the costs of supporting authentic Aboriginal and Torres Strait Islander artists. Consumers, particularly international tourists, often lack the knowledge to distinguish authentic from inauthentic products. This creates market conditions where inferior goods can compete unfairly.
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Structural market issues The authentic Aboriginal and Torres Strait Islander art market involves remote Communities, art centres and various intermediaries. This complex supply chain can be difficult for retailers to navigate, compared with wholesale relationships with importers. There are also scale economies. Mass production enables lower unit costs for inauthentic products, creating price advantages that authentic products struggle to compete with.
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Impacts on individuals, groups and the economy Artists
Artists often experience emotional distress when seeing their Cultural heritage misrepresented. Sacred symbols and traditional designs used inappropriately can cause spiritual and Cultural trauma. Reduced market opportunities limit artists’ ability to develop careers, access professional development, and invest in equipment and materials.
➜
Figure 6.8.3 Warlayirti Artists is an Aboriginal owned and governed, Competition from cheap imitations not-for-profit organisation located in the Community of Wirrimanu reduces demand for authentic (Balgo) in the south-east Kimberley. Warlayirti Art Centre accommodates works, impacting artist incomes. a Community of artists diverse in age, cultural and life experience and With average art centre artist provides several large studio spaces for artists and a large purpose-built incomes of only $3200 annually, gallery where work is displayed and sold. this displacement has significant impacts. Reduced market opportunities limit artists’ ability to develop careers, access professional development, and invest in equipment and materials.
Community
Many Aboriginal and Torres Strait Islander Communities rely on art centres as key economic institutions. Reduced sales affect not just individual artists but entire Community economies, including employment for coordinators, managers and support staff. Art centres serve crucial social functions, providing spaces for Cultural learning and intergenerational Knowledge transfer. Economic pressures threaten these cultural preservation activities.
Broader economic impacts
Inauthentic products create negative effects by reducing overall market quality and consumer trust. Tourists seeking genuine cultural experiences receive inferior products, reducing satisfaction and potentially damaging Australia’s cultural tourism reputation. Digital-only chapters • Cambridge University Press & Assessment © Khair, et al 2026 • 978-1-009-78780-2 • (03) 8671 1400
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The opportunity cost is the $54 million captured by inauthentic products, which represents lost income for Aboriginal and Torres Strait Islander Communities. This perpetuates economic disadvantage and reduces the income effects that would occur from authentic sales. It also weakens Australia’s reputation in international cultural markets when authentic products are devalued by competition from fakes, affecting the nation’s cultural export potential.
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Government policy responses Legislative initiatives
Indigenous artists have long advocated for recognition of their Cultural rights over shared art forms and Knowledge, with limited protection under Australian laws based on European legal traditions. Indigenous lawyer Terri Janke, of the Wuthathi, Yadhaigana and Meriam Peoples, helped formalise these ideas through the development ICIP principles. These principles have since been widely adopted by institutions such as galleries and museums. Following decades of advocacy, the Australian Government committed to developing ICIP legislation in 2024. The first stage will address fake art, merchandise and souvenirs through:
• mandatory disclosure requirements for non-Indigenous authored products • legal remedies for Traditional Owners when Cultural assets are used • •
without authorisation penalties for misleading consumers about product authenticity recognition of communal ownership principles from Aboriginal and Torres Strait Islander Customary Lore.
The Australian Competition and Consumer Commission (ACCC) has increased enforcement of laws against misleading conduct.
Industry support measures
A comprehensive review of the voluntary Indigenous Art Code concluded in 2024, with recommendations to strengthen protections for Aboriginal and Torres Strait Islander artists and consumers. The review examined ways to improve ethical trading standards and authentication processes, which included investing $30 million through the Indigenous Languages and Arts program, support for art centres and professional development, training in digital literacy, e-commerce and marketing, and infrastructure development for remote Communities.
Economic policy tools
Policy responses utilise the following economic tools:
• information provision – labelling requirements • regulatory intervention – legal frameworks to address market failures • public investment – direct funding to support authentic production • institutional support – strengthening art centres and industry bodies.
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Key economic concepts and terminology This case study demonstrates several important economic concepts:
• Cultural economy: economic activity based on Cultural heritage, Traditional •
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•
Knowledge and creative expression. Market failure: the free market fails to protect Indigenous intellectual property rights, leading to poor outcomes where inferior products compete unfairly with authentic goods. Negative effects: inauthentic products impose costs on Aboriginal and Torres Strait Islander Communities without these costs being reflected in product prices. Information asymmetry: consumers lack information about product authenticity, enabling inferior goods to compete through misleading marketing. Government intervention: regulatory and legislative measures aim to correct market failures and protect intellectual property rights.
• •
Case examples
• Australian Competition and Consumer Commission v Birubi Art Pty Ltd (2019): •
https://cambridge.edu.au/redirect/11731 The “Fake Art Harms Culture” campaign: https://cambridge.edu.au/redirect/11732
Conclusions and outlook
The widespread sale of inauthentic products highlights a clear case of market failure, reducing income for Aboriginal and Torres Strait Islander Communities. Recent policy responses, including proposed ICIP legislation, recognise both the economic and Cultural dimensions of this issue. Ongoing challenges include enforcing new laws, addressing offshore production, and building consumer awareness. Continued collaboration between government, industry and Aboriginal and Torres Strait Islander Communities will be essential to support authentic Cultural arts.
Case study activity 6.8.1 1.
Describe how fake Aboriginal and Torres Strait Islander Cultural art imports affect artists, Communities and Australia’s trade reputation.
2.
Calculate Australia’s lost export earnings if fake imports capture 68% of the $80 million international souvenir market.
3.
Explain why businesses or retailers in other countries may choose to import cheap Aboriginal and Torres Strait Islander-style products rather than authentic products from Australia.
4.
Discuss how government requirements to label or identify authentic Aboriginal and Torres Strait Islander Cultural products could affect international trade.
5.
Evaluate how fake Aboriginal and Torres Strait Islander Cultural art imports create trade barriers for authentic Cultural exports.
6.
Investigate international approaches to protecting Indigenous intellectual property (for example, New Zealand, Canada, United States).
7.
Analyse how Cultural economics differs from traditional economic models.
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Chapter 6 Our economy
6.9
Investigation: Australian farmers as global climate leaders Success criteria
In this lesson, you will research how Australian farmers use sustainable practices to remain competitive, investigate one environmental organisation that supports farmers, and explain how climate-smart farming benefits Australia’s economy.
❏ I can find reliable information about sustainable farming in Australia. ❏ I can explain how environmental organisations support farmers with clear examples.
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Learning intention
The topic: Australian farmers leading the way
Did you know that 92% of Australian farms now use sustainable practices? These aren’t just good for the environment – they’re great for business too! Australian farmers are becoming world leaders by working with environmental organisations to farm smarter, not harder.
The task
Discover how Australian farmers are turning environmental challenges into economic opportunities. Find out which organisations are helping them succeed and why other countries want to buy from climate-smart Australian farms.
➜
Figure 6.9.1 Australian farmers are leading the way when it comes to climate-smart farming.
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The process Step 1: find a farming success story Look for examples of Australian farmers who have saved money, increased yields or earned extra income by using sustainable practices. Reliable sources include government reports, Landcare case studies and agricultural news websites such as the ABC’s Landline program: https://cambridge.edu.au/redirect/12023. Your success story should include:
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• farmer/farm name and location • what sustainable practice(s) they used • how much money they saved or earned • what environmental benefits resulted.
Step 2: research one helpful organisation
Choose one organisation: Landcare Australia, CSIRO Agriculture, Future Drought Fund or Carbon8. Research their website and explain:
• what they do to help farmers • one specific example of their success • how much funding they provide or how many farmers they help. Step 3: connect to Australia’s economy
Explain why environmental organisations and farmers working together benefits:
• the environment (reduced pollution, better soil health) • the farmers (more profit, less risk, better reputation) • Australia’s economy (export advantages, international reputation, job security). The deliverable
Your teacher will tell you how you should present your report (written, oral or multimedia). Your report should include your research portfolio with three parts:
• Part 1: details of your chosen farming success story (300 words) • Part 2: data and other information from your research on an organisation that helps •
farmers (200 words) Part 3: your explanation of why this matters for Australia (150 words).
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6.10
Chapter review Access the Interactive Textbook for a range of digital tools to help you review this chapter and build confidence.
• •
SA D I M GI PL T A E L C -O H N AP L Y TE R S
•
Auto-marked questions for fast feedback and fun practice Self-assessment tools to track your progress, review answers (if enabled by the teacher), and flag questions for extra help Downloadable worksheets for class or homework revision
DOC
Download chapter summary
Summary
Summary notes
What have you learned about the economy? Copy the table and fill it out by outlining your understanding. Aim for two points per topic.
Topic
What I have learned
Key economic indicators used to determine Australia’s economic performance
How Australia’s economic performance compares with India’s economic performance
Impacts of demographic changes on the Australian economy Relationship between economic performance and living standards
Government intervention in economic performance Fiscal policy
Monetary policy
The reasons for international trade
Government solutions for economic problems
Indigenous Cultural and Intellectual Property (ICIP)
Visible thinking routine Connect, extend, challenge
This exercise in visible thinking asks you to think about how the concepts in this chapter have expanded your understanding of how our economy functions.
Using the question prompts, write a paragraph explaining what you previously knew about the topic and connecting what you now understand about the topic to your own experiences. 1.
Connect: how does what you learned in this chapter connect to what you already knew about the economy?
2.
Extend: what new ideas have extended or deepened your thinking?
3.
Challenge: what is still challenging or confusing? What questions do you now have?
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Questions Scorcher quiz Access a fast, fun, competitive quiz that puts your understanding to the test.
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Short-answer questions 1.
Define the term unemployment rate.
2.
Identify one effect of high inflation on households.
3.
Recall who sets the official interest rate in Australia.
4.
List two of Australia’s key exports and two of its main imports.
5.
Define the term monetary policy.
6.
Recall the two main ways the government controls fiscal policy.
7.
Summarise why an ageing population could be considered an economic challenge.
8.
Explain economic growth and how it’s measured.
9.
Describe one reason Australia’s trading relationships have shifted towards Asia.
10.
Outline the difference between a trade surplus and a trade deficit.
11.
Explain why inauthentic Aboriginal and Torres Strait Islander art is both an economic and Cultural problem.
12.
List two advantages Australian farmers gain through sustainable practices.
➜
Figure 6.10.1 A 1928 illustrated collectable tobacco card showcasing the agricultural exports of countries around the world published by John Player and Sons Cigarettes. The card for Australia shows a farmer shearing sheep with electrical machine shears at a woolshed.
Teachers, access the Online Teaching Suite for digital resources and tools that support review, assessment and reporting, including:
• student and class activity reports • a test generator to create custom assessments • built-in feedback tools • editable downloadable support material • a downloadable and printable “Writing focus” workbook for this chapter.
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Download single paragraph model
Writing focus The following activities offer ways to demonstrate your understanding of the chapter and allow you to continue to practise your writing skills.
Answering questions in paragraphs You can use this as a model when writing your own answers to the questions that follow. Question: Explain how one key economic indicator influences both government decisionmaking and living standards in Australia, using an example.
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Model answer:
Topic sentence: the first sentence of the paragraph; directly answers the question
Elaborate: extra detail, reasoning, causes, consequences, links between ideas
Examples: provide credibility and illustrate the argument
The inflation rate is a key economic indicator because changes in price levels directly shape government policy decisions and influence the everyday living standards of Australian households. Inflation refers to the sustained increase in the average price of goods and services, which reduces the purchasing power of consumers over time. When inflation rises more quickly than expected, governments and the Reserve Bank must respond to stabilise the economy, control rising costs, and protect household budgets. This is demonstrated when the Reserve Bank raises the cash rate to slow borrowing and spending, which helps reduce price pressures across the economy. Higher interest rates can, for example, make mortgages and personal loans more expensive, encouraging households and businesses to reduce spending, which in turn helps bring inflation back within the target range. Therefore, the inflation rate both guides government decision-making and plays a central role in shaping the living standards experienced by Australians.
Explain: clarify, define and describe
Evidence: specific, relevant evidence to support arguments
Linking sentence: reconnects to the topic sentence using the language of the question
Structured-response questions 1.
Define the three key economic indicators that economists use to measure Australia’s economic performance and explain why each is important.
2.
Compare Australia’s demographic profile with a developing economy like India’s, explaining how population differences affect economic dynamics.
3.
Distinguish between fiscal policy and monetary policy, identifying which institution controls each and their main tools.
4.
Explain the theory of comparative advantage using a real-world example of Australia’s trade relationships.
Extended-response question 1.
Analyse how Australia’s changing demographic profile will impact the effectiveness of fiscal policy and monetary policy over the next 20 years. In your response, consider the ageing population and immigration patterns, and their effects on economic indicators.
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Chapter
9
Investing
Lessons Setting the scene: the floating of Guzman y Gomez
9.2
What are the ways to finance my investments?
9.3
What are the ways I can invest?
9.4
What is ethical investment?
9.5
How can I manage risk and return in my investments?
9.6
How do I reduce my risk as an investor?
9.7
How do financial roles, responsibilities and government agencies protect investors?
9.8
Case study: what company is best to invest in?
9.9
Skills focus: can I become a share market detective to figure out how a company is performing?
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9.1
9.10 Investigation: can you beat the market in the ASX Schools Sharemarket Game? 9.11
Chapter review
Teachers access the Online Teaching Suite to:
• plan, sequence and assign directed tasks for students and classes using Task Manager • view student activity reports • provide feedback to students • download a printable “Writing focus” workbook for this chapter.
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9.1
Setting the scene: the floating of Guzman y Gomez Success criteria
In this lesson, you will learn about the role of the Australian Securities Exchange (ASX), why businesses may want to list their company on the ASX and investors may choose to invest.
❏ I can explain the role of the ASX and why businesses and investors may interact with the ASX.
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Learning intention
Guzman y Gomez lists on the ASX When owners and childhood friends Steven Marks and Robert Hazan, two Americans from New York, came to Australia, they realised that there were very few options when it came to good Mexican fast food. The two entrepreneurs decided to fulfil that need themselves, starting the iconic Guzman y Gomez (GYG).
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Video 9.1.1 Setting the scene: investing
Writing focus 9.1 Question words
initial public offering (IPO) the first sale of a company’s shares to the public
Figure 9.1.1 GYG is an iconic Australian business that first listed on the ASX on 20 June 2024. ➜
Australian Securities Exchange (ASX) a marketplace where investors can purchase shares in listed companies, which list their shares in order to raise money and grow their businesses
Selling a wide variety of freshlymade quick meals, the business they started in 2006 grew quickly, with restaurants opening all over Australia and overseas. In 2024, they had reached around 250 restaurants but had plans to grow the business to over 1000 restaurants.
They needed money to fund this expansion, and listing their business on the Australian Securities Exchange (ASX) was the best option. Businesses use the ASX to raise money by selling equity, which means giving up part ownership of the business in exchange for funds. When a company sells its shares to the public for the first time, this is called an initial public offering (IPO). GYG officially listed its business on the ASX on 20 June 2024. Before the IPO, GYG was valued at $2.2 billion, but due to demand by investors in the company, its value increased to over $3 billion in just one day. This increase in value secured muchneeded funds to open more GYG restaurants worldwide.
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Case study 9.1.1: how did the GYG float grow Ahmed’s wealth? Ahmed learned about investing in the share market at school and knew it was a good way to grow his wealth. He was 20 years old at the time of the GYG float in 2024 and decided to invest just over $5000 of his savings in GYG, becoming a shareholder.
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Although he initially invested with the intention of keeping the shares long-term and earning a dividend (a payment made to shareholders when the profits of the company are distributed to them as the owners), he sold them less than a year later after making over $1000 due to the growth in the value of the shares. This increase in value is known as capital growth. He then used this money to invest in other companies listed on the ASX.
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Figure 9.1.2 Learning about investing at a young age helped Ahmed grow his wealth.
wealth the total value of a person’s money and investments
float the number of shares in a company available for public trading shareholder a person who owns shares in a company and may receive profits and vote on how the company is run dividend a portion of a company’s profits paid to its shareholders
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Figure 9.1.3 GYG serves a variety of freshly-made, quick-service Mexican food.
capital growth an increase in the value of an asset, such as a share or investment
Activity 9.1.1
Thinking about investing 1.
Outline the role of the Australian Securities Exchange (ASX).
2.
Refer to Case study 9.1.1: how did the GYG float grow Ahmed’s wealth? Identify the two ways that investors may make money in the share market.
3.
Research GYG and identify all the countries where it has opened restaurants.
4.
Define IPO and give reasons why a business may want to list on the ASX.
5.
Identify five well-known companies you may want to invest in. Justify your choices and compare your list with your classmates and the rest of your class.
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Chapter 9 Investing
9.2
What are the ways to finance my investments? Success criteria
In this lesson, you will learn why investing is important to both individuals and businesses and the range of ways you can finance your investments.
❏ I can explain the importance of investing to both individuals and businesses. ❏ I can outline the different options available to finance my investments.
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Learning intention
Starter activity 1.
Propose why investing may be important to you as an individual.
2.
Propose why investing may be important to a business.
3.
Do individuals and businesses have the same reasons for investing? Compare your responses with your friends and the rest of the class.
Why is investing important to both individuals and businesses?
Writing focus 9.2 Transitional phrases
assets something a business or individual owns
• buying shares listed on the share market • • •
Figure 9.2.1 Individuals can choose to invest their money in a variety of ways, including buying precious metals like gold. ➜
Have you ever wondered how a wealthy person made their money? Chances are they achieved this through investing, either as an individual or through a business they are a shareholder in. Investing is a way in which an individual may grow their wealth, through their assets or the things they own. Investing wisely allows an individual to more comfortably pay for their individual needs and wants. There are a few ways you may choose to invest as an individual, including:
that provide a regular dividend payment purchasing property that you rent out buying precious stones, metals or collectibles (such as artworks) that grow in value over time starting and growing your own business as an entrepreneur.
A business will also want to grow its value or wealth and will participate in activities that help it achieve this goal. This could be by:
• expanding the number of products it offers to consumers • expanding geographically by offering its products to new markets • encouraging investors to purchase its shares if the business is listed on the share market • investing in other businesses Digital-only chapters • Cambridge Press & Assessment © Khair, et al 2026 • 978-1-009-78780-2 • (03) 8671 1400 assetsUniversity such as property. • purchasing
9.2 What are the ways to finance my investments?
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How can I finance my investments? Most people finance their investments in one of two ways: 1. using their own personal savings 2. borrowing money, such as through a loan.
Personal savings
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This is when an individual saves up over a period of time so that they may purchase something that generates income for them. Purchasing assets as part of an investment is called equity finance. There are benefits to using your own money, including having no interest repayments and having full control and ownership over the asset. There are, however, disadvantages to choosing to invest your personal savings, including having to wait until you have enough money, meaning possibly missing out on a good opportunity to invest.
equity finance using your own money to invest in an asset, giving you full ownership debt finance using borrowed money to invest, which must be repaid with interest
Borrowed money (loans)
This is when the money used to invest is borrowed from elsewhere with the expectation that the borrower makes regular repayments and pays interest. This is called debt finance. An example of this is when an individual borrows money from a bank to buy an investment property to rent out.
Figure 9.2.2 Investing in the purchase of a house may require borrowing large sums of money. ➜
Borrowing can be helpful because it allows investors to purchase large assets, like a house, without needing to save the entire amount first. However, borrowing to invest also involves risks. The investment might not earn the expected income. For example, a rental property may sit empty, or an asset like an artwork may not increase in value.
Review 9.2
Online quiz
Knowledge and understanding
Thinking, researching and communicating
Students can access sample responses and results online
Teachers can go online to assign questions, view results, reports and more!
Knowledge and understanding 1.
2. 3.
4. 5.
Define investing. Identify reasons why an individual may want to invest. Identify as many types of investment as you can that an individual can make. Explain one advantage and one limitation of using savings to invest. Explain one advantage and one limitation of using borrowings to invest.
Thinking, researching and communicating 1. 2.
Compare investing in shares versus investing in property for an individual. Outline why it is important for investors to compare different sources of finance before making a decision on which to use.
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9.3
What are the ways I can invest?
Success criteria
In this lesson, you will learn about the types of investments you can make as an individual, depending on your situation.
❏ I can explain the different types of investments I can make as an individual based on my context.
SA D I M GI PL T A E L C -O H N AP L Y TE R S
Learning intention
Starter activity
You are given $1 million to invest. 1.
Outline how you would invest the money. (It must be an investment and not spending on wants!) Compare your answer with other people in your class.
2.
Do you notice any similarities? Explain why you think there may be similarities.
I want to invest: where do I start?
Writing focus 9.3 Transitional phrases
There are many factors to consider when deciding where to invest your money. These factors include the following.
• Your life stage: this refers
➜
to what stage of life you are at and as a result how much disposable income and savings you have. Generally, the younger you are the less money you have, so the types of Figure 9.3.1 Superannuation is one way many Australians invest their investments and amounts money throughout their working lives. may differ compared with someone at a different life stage or age. Your appetite for risk: how much risk are you willing to take? Remember, the higher the risk, the higher the potential reward. Every individual has a different risk appetite. Some people are cautious and will forgo potential returns in return for safety and protecting their asset. The timeframe you have in mind: do you want to invest for the short term (less than 2 years), medium term (two years to 10 years), or long term (more than 10 years)? Depending on how quickly you want your money back, you will choose different investment types.
• •
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9.3 What are the ways I can invest?
• How much money you have to invest: do you have a lot of money to invest or only •
a small amount? If you have a large amount, you may want to invest in property, whereas a smaller amount may mean investing in something like shares. Ethical and social considerations: an ethical investor may avoid investing in businesses that destroy the environment or have questionable ethics. Examples include shares offered by businesses that produce munitions, use slave labour, harm animals, or harm society, such as alcohol or gambling.
Types of investments an individual may make
munitions weapons, ammunition and other equipment used by the military, including bombs, missiles, bullets and the machines or tools needed to use or transport them slave labour when someone is forced to work under threats or pressure and is not free to leave, resulting in their labour being exploited by others
SA D I M GI PL T A E L C -O H N AP L Y TE R S
There are countless ways to invest your money. Investors must decide what they want to do, depending on the individual factors outlined in this lesson. Some of these investment types are outlined in Table 9.3.1.
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Table 9.3.1 Some types of investments that individuals can make Investment type
Description
Level of risk
Length of time required
Interestearning investments
Involves putting money into term deposits and interest-bearing bank accounts
Low risk
Short term
Superannuation An account where regular investments are made by employers on behalf of employees throughout their working lives, with funds invested according to the instructions of the account holder
Can vary depending on investment strategy
Long term
Shares
A part of a business sold to an investor, through a share marketplace (such as the ASX in Australia) and with the assistance of a broker, making them a part-owner of the business
Can vary depending on investment strategy
Variable depending on investor
Property
Investments involving buildings, space Medium risk and land, such as houses, units or factories
Cryptocurrency
A digital currency (money) that has no legal or intrinsic value except what people are willing to pay for it, causing it to fluctuate in price according to supply and demand. They are widely accepted and can be used to buy or sell things, especially things that are of high value. They are often seen as something to invest in because of the possibility of an increase in value over time.
High risk
Short to medium term
Non-fungible tokens (NFTs)
An NFT is a digital item stored on a blockchain, similar to cryptocurrency, with tokens representing digital art, game items, collectables, music or videos.
High risk
Short term
Long term
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Case study 9.3.1: Theo’s gift Video 9.3.1 How share investment works. Please note that this video is also in Chapter 1. ➜
Theo has a few thousand dollars that his grandparents have gifted him. Wanting to make the most of it, he talks to his uncle, who is a financial planner, about how to invest the money over several years. Theo is a cautious investor, so he doesn’t want to risk losing his savings, even if that means earning less. This makes options like cryptocurrency and NFTs less appealing to him.
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financial planner a person whose job is to advise people on how to manage their financial arrangements
His uncle suggests buying shares but to choose companies that are Figure 9.3.2 Young people can turn to guardians and trusted considered safer because they have adults to learn more about financial management. been around for a long time and tend to be less volatile. After doing thorough research, Theo uses an online broker to buy shares in four different companies across four different industries. By spreading his money out, also known as diversifying, Theo reduces the risk of losing everything if one investment performs badly. ➜
volatile likely to change suddenly and unexpectedly
online broker a person or company that buys and sells foreign money, company shares and more for other people online
Review 9.3 Online quiz
Knowledge and understanding
Thinking, researching and communicating
Students can access sample responses and results online
Teachers can go online to assign questions, view results, reports and more!
Knowledge and understanding 1.
Identify the features of your life stage.
2.
Outline your risk appetite. Are you a cautious investor, or are you willing to accept higher risk in the hope of achieving higher returns?
3.
Outline the ethical and social considerations that are important to you when investing.
4.
Explain why using a financial planner may be useful when investing.
Thinking, researching and communicating 1.
Why is it important for investors to compare different types of investment options before making a decision?
2.
You are given $10,000 as a gift from your grandparents. Refer to Table 9.3.1 and select one of the investment types you would use, then thoroughly research it. Justify why this investment type is the right one for you.
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9.4 What is ethical investment?
9.4
689
What is ethical investment?
Success criteria
In this lesson, you will learn about ethical investment options available to investors.
❏ I can explain the features of an ethical investment option. ❏ I can apply what I’ve learned to shape my investment strategy.
SA D I M GI PL T A E L C -O H N AP L Y TE R S
Learning intention
Starter activity 1.
Construct a table with two columns in your workbook with the headings: Invest | Not invest.
2.
Place each industry below under one of the two headings:
• renewable energy • fast fashion • coalmining • electric vehicles
3.
• tobacco • online education • weapons manufacturing • organic farming.
For one of the industries you put under “Not invest”, write a sentence explaining why.
What is ethical investing?
Ethical investing means choosing investments that match your personal values as well as your financial goals. Ethical investors think about how money is made, who is affected by the business, and what impact the business has on people and the environment. These factors are often referred to as environmental, social and governance (ESG), and they include how a business manages its environmental impact, its treatment of employees, suppliers and customers, and the governance (financial and leadership aspects) of the business. Different people care about different things. For you, an ethical investment is one that reflects your beliefs in areas such as the following.
• Environment: does the business avoid creating waste pollution, air pollution from • • • •
gas and substance emissions, water pollution, soil degradation and noise pollution from excessive noise? Human rights: does the business avoid slave labour, wage theft and unfair treatment of employees? Animal welfare: does the business avoid animal testing, loss of animal habitat and cruelty to animals in food production? Indigenous rights: does the business respect Indigenous people and land rights, and provide Indigenous people and Communities with opportunities? Community wellbeing: does the business avoid the production of weapons, alcohol, tobacco and gambling? Does it donate and participate in volunteering activities in the community?
Writing focus 9.4 Developing sentences
environmental, social and governance (ESG) a set of criteria used to evaluate a company’s impact on the environment, its treatment of people, and the quality of its leadership and ethics
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How does an investor know if a business is ethical? What does the company do to make money?
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Consider what it produces and how it produces its product. Does its product enhance the community or create problems? Questions to consider when researching
How does the company behave towards employees, customers, animals, the environment and the community?
Consider whether it pays and treats its employees fairly, how customers and the community perceive it, and if animals and the environment are affected negatively by it.
➜
Figure 9.4.1 How to research the ethics of a business
Case study 9.4.1: being ethical makes good business sense
Many companies now see that being a good corporate citizen can improve their profits and share price. Investors often choose businesses that look after the environment, the community, and the people in their supply chain. They want companies that go beyond the basic legal requirements and act ethically. Some businesses now make this a core part of what they do through the products they create.
Energy Resources of Australia Ltd, listed on the ASX, has reshaped its entire business. It has moved away from uranium production and now focuses on closing mines responsibly and caring for the environment. The company aims to leave a positive legacy for local communities and the natural landscape.
Another organisation built around ethical investing is Australian Ethical Investment Ltd. It offers superannuation and managed funds based on strict ethical rules. The company invests only in businesses that act responsibly in what they make and how they operate. It refuses to support industries that cause harm. Instead, it backs renewable energy, environmental services, healthcare, sustainable and affordable real estate, sustainable food production, and transport projects such as rail, shipping and public transport. Another ethical organisation is Mawal, an organisation that aims to create value in the natural resources sector while supporting Indigenous Communities to take part in the global economy. Mawal specialises in fair project development and strong, Community-based engagement. Brad Welsh, the founder and CEO of Mawal, saw a gap between Indigenous Communities that lacked commercial skills and businesses that did not understand Indigenous Knowledge. The company aims to bridge this gap by creating longterm and sustainable opportunities for First Nations people. It does this by offering practical support, such as finance and capital, and by involving Indigenous Communities directly in project planning and development. Digital-only chapters • Cambridge University Press & Assessment © Khair, et al 2026 • 978-1-009-78780-2 • (03) 8671 1400
9.4 What is ethical investment?
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Brad is a proud member of the Muruwari People from north‑western New South Wales. His leadership is shaped by his deep Cultural connection and his long commitment to helping Indigenous Communities build their own economic future. Brad grew up in Redfern in Sydney and lived in remote and regional areas for more than 15 years. He has seen the challenges faced by these Communities and believes commercial skills are essential for long-term independence. He says that Indigenous Communities need the chance to manage capital, assess risks and build stable economic growth for the future. Mawal works carefully to make sure Indigenous Knowledge and Cultural Practices are respected. The company aligns Cultural values with the projects it supports, so both the Community and the business can succeed.
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➜
Figure 9.4.2 The symbol of the company Mawal is a zebra finch, symbolising resilience and connection. The purpose of the organisation is to bridge the gap between modern economics and Indigenous Cultural Practices.
Review 9.4
Online quiz
Knowledge and understanding
Thinking, researching and communicating
Students can access sample responses and results online
Teachers can go online to assign questions, view results, reports and more!
Knowledge and understanding 1.
Define ethical investing.
2.
Outline what is meant by ESG.
3.
Explain the importance of ethical investing on community wellbeing.
4.
Using Case study 9.4.1: being ethical makes good business sense, explain why Mawal Pty Ltd is considered an ethical business.
Thinking, researching and communicating 1.
Research a business that has an ethical stance on animal welfare. Explain how it protects the rights of animals as part of its business.
2.
Refer to the section “What is ethical investing” and rank the belief areas (environment, human rights, animal welfare, Indigenous rights, community wellbeing) in order of importance to you as an investor. Justify why you have ranked them in that order.
3.
Research one superannuation fund that has an ethical approach to investing. Outline its approach to ethical investing.
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9.5
How can I manage risk and return in my investments? Success criteria
In this lesson, you will learn about the relationship between risk and return, and the factors influencing an investment portfolio.
❏ I can explain the relationship between risk and return. ❏ I can identify the factors influencing an investment portfolio.
SA D I M GI PL T A E L C -O H N AP L Y TE R S
Learning intention
Starter activity 1.
Write down one investment you think is safe and one you think is risky.
2.
Compare your choices with a partner. a. Where did you agree? b. Where did you differ?
3.
As a class, contribute your ideas to a shared list on the board of safe and risky investments.
The relationship between risk and return
Writing focus 9.5 Developing sentences
As an investor, you will need to consider your appetite for risk. This means how comfortable you are in taking investment risks. Generally, the higher the level of risk associated with an investment, the higher the potential rate of return. This means you are more likely to make more money if the investment goes well. However, the higher risk also means potentially losing the money you have invested.
➜
If you are a cautious investor, or you are risk-averse and not comfortable with taking risks, you may consider making less risky investment choices and forgoing the potential high rewards of highrisk investments. Each investor is different in their risk appetite, and this appetite may change over time. For example, an investor who is young may be more willing to take risks in their investment choices as they have less to lose, whereas someone who is closer to retirement with a lot more money may be more cautious. It’s important that you understand your risk appetite so that you can make Figure 9.5.1 Understanding the factors that influence a person’s choices that reflect it throughout your investment portfolio will help you make more informed investment decisions. life as an investor.
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9.5 How can I manage risk and return in my investments?
693
What are the factors influencing an investment portfolio? An investment portfolio is a collection of different investments owned by an investor. An investment portfolio may include a mixture of:
• shares • property • cash deposits • precious metals and stones
• managed funds • superannuation • collectibles (such as artworks and antiques).
investment portfolio a collection of financial assets, such as shares, bonds, and cash held by an individual or organisation
There are many factors impacting an investor’s portfolio, including the following.
SA D I M GI PL T A E L C -O H N AP L Y TE R S
• Their appetite for risk: are they a cautious investor or do they take more risks to • • • • •
chase the possibility of high returns? Their personal preference for certain types of investments: this is shaped by what the investor may find familiar. How long they want to invest for: they may choose to invest for the short, medium or long term. Their individual goals: are they looking for a regular income, such as from a rental property? Do they prefer dividends, from shares, or capital growth, such as from cryptocurrencies or precious metals? The economy: are interest rates high, making cash deposits more attractive, or are shares increasing in price? Are there any global events such as wars that are affecting economic growth? Their ethical and social values: are they hesitant to invest in companies that have a poor reputation for human rights and animal welfare? Do they want to make sure their investment doesn’t damage the environment or harm the community?
Ultimately, every investor’s investment portfolio is impacted by their own circumstances and their appetite for risk. To be able to make an informed decision, an investor needs to continuously review and assess the risks associated with their investment to avoid losing money.
Review 9.5
Online quiz
Knowledge and understanding
Thinking, researching and communicating
Students can access sample responses and results online
Teachers can go online to assign questions, view results, reports and more!
Knowledge and understanding 1.
2. 3.
4.
Outline what is meant by “appetite for risk”. Outline why someone closer to retirement may be hesitant to make risky investment decisions. Explain the relationship between risk and return. Compare the difference between economic growth and how wars and other major events may affect it.
Thinking, researching and communicating
Refer to the list of investment options in this lesson and rank them from riskiest to least risky. Explain why you have ranked them in this order. 2. Research cash deposits and property investment. Discuss their features and justify why you would choose one over the other as an investment option. 3. Research superannuation as an investment option. Discuss the advantages and restrictions that Digital-only • Cambridge University Press & Assessment © Khair, et al 2026 • 978-1-009-78780-2 • (03) 8671 1400 applychapters to investing through superannuation. 1.
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Chapter 9 Investing
9.6
How do I reduce my risk as an investor? Success criteria
In this lesson, you will learn about the importance of risk mitigation strategies relating to investing.
❏ I can explain how to reduce my risks when investing. ❏ I can identify and apply risk mitigation strategies.
SA D I M GI PL T A E L C -O H N AP L Y TE R S
Learning intention
Starter activity 1.
Choose one of the scenarios below and, in your workbook, describe or draw two versions of the same situation. One will be a risky choice and the other a safer version. Identify which is risky and which is safe.
• Crossing a road • Riding a bike • Saving money
2.
• Carrying something fragile • Cooking something hot
Turn to a partner and share your ideas. Discuss what was risky about the first situation and what made the other version safer.
The importance of risk mitigation strategies
Writing focus 9.6 Appositives
risk mitigation actions taken to reduce the chance of a loss or negative outcome
Investing can be a very powerful tool in helping you increase your wealth as an individual. It can, however, also be a way to lose money. Before investing, you need to be aware of the risks, be prepared to lose the money you are investing and take steps to reduce the potential harm. An investor needs to research their investment, seek financial advice when needed, be alert to scams and know how to diversify their investments. These actions are examples of risk mitigation, which means reducing the chance of loss.
➜
Figure 9.6.1 Seeking professional advice can help a young person make sound financial decisions.
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9.6 How do I reduce my risk as an investor?
695
Researching potential investments Before investing, it is important to understand the investment so that risks can be assessed accurately. If you do not understand how your money will be invested, and the conditions of the investment, you may end up with a loss. It is important to do your own research on an investment and not just rely on one source for information about your investment. An investor should:
• understand how the investment works • know how it makes money. For example, will the investment generate an income,
SA D I M GI PL T A E L C -O H N AP L Y TE R S
capital growth, or both? If investing in shares, what does the company produce and what services do they offer? Are their products and service in demand by consumers? consider the conditions of the investment. For example, can you take the money out early or are there fees and charges relating to the investment? identify potential risks consider the past performance of the investment by looking at the trends in this industry and for this investment. Note that past performance is not necessarily a reliable indicator for Figure 9.6.2 If an investment seems too good to be true, promising massive future performance. returns, it might be a scam.
•
• •
➜
Seeking financial advice
If returns seem too good to be true, then they usually are. Independent and unbiased financial advice helps investors make better decisions about money. Some sources of financial advice may include:
• banks • superannuation funds • government websites such as Moneysmart (https://cambridge.edu.au/redirect/11758) •
and the ATO (https://cambridge.edu.au/redirect/11759) licensed financial advisers (you can search for these through the Moneysmart website).
A good licensed financial adviser will explain risks clearly, will not promise guaranteed profits, and will help match investments to financial goals for a fee. Be wary of any organisation or person that tries to force you into investing in their product.
Being alert to scams
Unfortunately, some investors fall prey to scams, losing some or all of their money. It is important to be alert to scams. Scammers may use a variety of tactics to steal your money. If you are in doubt, do your own independent research and refer to the Scamwatch website (https://cambridge.edu.au/redirect/11760), which regularly updates its page with the latest scams.
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Scammers may use fake websites, social media, emails and phone calls to draw people in. Scams usually display a few key characteristics like:
• promises of very high or guaranteed returns • pressure to invest quickly • requests for personal details • messages from unknown people. Diversifying your investments
SA D I M GI PL T A E L C -O H N AP L Y TE R S
Figure 9.6.3 A diverse investment portfolio will help reduce your risk in a sometimes volatile market. ➜
To reduce your risk, it is important to diversify your investment portfolio. This means not putting all your money into one investment type. This protects your money so that if something goes wrong you do not lose all your money. For example, an investor may have investments of $100,000 in total, but they may spread them across many different asset and investment types. By investing some of the money in shares, some in a term deposit, some in a managed fund, some in gold, and the rest in property, the investor is able to spread the potential risks of one of the investments performing poorly.
Another way that an investor may diversify is to buy assets across different geographic locations, such as some Australian shares and some US shares. If they are investing in shares, they may buy shares across different industries as well. By doing this, if one investment fails, they do not lose all their money.
Review 9.6 Online quiz
Knowledge and understanding
Thinking, researching and communicating
Students can access sample responses and results online
Teachers can go online to assign questions, view results, reports and more!
Knowledge and understanding 1.
2. 3.
4.
Outline the importance of risk mitigation strategies. Identify some of the things you may want to research before you make an investment. Identify some tricks used by investment scammers. Explain three different ways an investor may diversify their investment portfolio.
Thinking, researching and communicating 1.
2.
3.
Search for a financial adviser in your local area. Outline the services they offer and the costs involved. Research the most recent and common scams relating to investing (you can refer to the Scamwatch website). Share these in a presentation to the class. Research government websites such as Moneysmart and the ATO and investigate some of the advice you find on investing. Share your findings in a presentation to the class. Digital-only chapters • Cambridge University Press & Assessment © Khair, et al 2026 • 978-1-009-78780-2 • (03) 8671 1400
9.7 How do financial roles, responsibilities and government agencies protect investors?
9.7
697
How do financial roles, responsibilities and government agencies protect investors? Success criteria
In this lesson, you will learn about the role of the financial services industry, the responsibilities of lenders and financial advisers, and government agencies that protect investors.
❏ I can explain the role of the financial services industry. ❏ I can outline the responsibilities of lenders and financial advisers. ❏ I can identify how government agencies protect investors.
SA D I M GI PL T A E L C -O H N AP L Y TE R S
Learning intention
Starter activity 1.
In pairs, brainstorm any groups or people you think might help keep money-related decisions safe, including lenders, advisers or government organisations.
2.
Share your ideas as a class and see how many different helpers or protectors your class can identify together.
3.
Choose one organisation from the class list and explain in one sentence how it protects consumers or investors.
The role of the financial services industry
The financial services industry is made up of organisations such as banks, credit unions, superannuation funds, insurance companies, investment funds and financial advisers. Their role is to help investors to save, borrow, invest and manage their money. They do the following things.
• •
• •
➜
Banks: provide a comprehensive service that includes providing accounts for everyday transactions, savings accounts, home loans, business loans, credit cards, and a wide range of products and advice. Credit unions: provide similar services as banks, although they are not as comprehensive or large, as their main purpose is to serve the financial needs of only their members. Investment funds: provide investments on behalf of their clients. Financial advisers: provide advice to their clients on how Figure 9.7.1 Banks are one part of the financial services industry that many people interact with the most in their daily lives. they should invest.
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Writing focus 9.7 Creating topic sentences
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Chapter 9 Investing
The responsibilities of lenders and financial advisers A lender is any organisation that lends money, and a financial adviser is an individual that provides tailored advice to individuals. Lenders have obligations under the National Consumer Credit Protection Act 2009, while financial advisers are regulated by the Corporations Act 2001. Both have a legal and ethical responsibility to their customers.
SA D I M GI PL T A E L C -O H N AP L Y TE R S
Lenders have an obligation to lend responsibly by checking that a borrower can afford to repay the loan and won’t be put into financial hardship. They also need to make sure that they understand the loan contract, including the costs. Lenders need to explain the interest rates, fees and charges, repayment amounts and what to do if the borrower gets into financial difficulties, so that the borrower can make an informed choice.
➜
A financial adviser gives people advice about investments. They must act in the best interests Figure 9.7.2 A financial adviser can provide direction and advice about investments and money of their client by providing management. advice that aligns with the investor’s goals and risk appetite, and is accurate. They must be careful to only recommend what is good for the investor, and not financial products that earn them a commission.
Government agencies that protect investors
There are several government organisations that protect investors by enforcing laws and educating the public.
The Australian Securities and Investments Commission (ASIC)
The main goal of the Australian Securities and Investments Commission (ASIC) is to protect consumers, investors and creditors. This promotes confidence in Australia’s financial system by making it safer to invest. Some of ASIC’s responsibilities include:
• regulating financial markets, such as the companies listed on the Australian Securities
Exchange (ASX), to ensure fair and transparent market prices and that share trading is honest and lawful so that investor confidence is maintained licensing financial services providers by making sure that financial advisers act in the best interests of the client by providing suitable and honest advice and disclosing and• Cambridge conflictsUniversity of interest Digital-onlyfees chapters Press & Assessment © Khair, et al 2026 • 978-1-009-78780-2 • (03) 8671 1400
•
9.7 How do financial roles, responsibilities and government agencies protect investors?
699
• stopping scams and misconduct by issuing warnings about investment scams, and •
monitoring suspicious activity by working with police and other agencies to stop fraud educating investors, for example by operating Moneysmart, a website that helps Australians understand different investments, know their rights as investors, and avoid scams.
Australian Competition and Consumer Commission (ACCC)
SA D I M GI PL T A E L C -O H N AP L Y TE R S
The Australian Competition and Consumer Commission (ACCC) promotes fair trading and competition, and prevents misleading or deceptive business conduct that can affect investors. The ACCC operates Scamwatch, a website that alerts and educates investors about scams.
Australian Prudential Regulation Authority (APRA)
The Australian Prudential Regulation Authority (APRA) is a government agency that oversees banks, insurers and superannuation funds to ensure that they are financially stable, so they don’t collapse and harm investors.
Australian Transaction Reports and Analysis Centre (AUSTRAC)
The Australian Transaction Reports and Analysis Centre (AUSTRAC) is a government agency that detects and prevents money laundering and financial crime, protecting the financial system from being used for fraud.
Review 9.7
Online quiz
Knowledge and understanding
Thinking, researching and communicating
Students can access sample responses and results online
Teachers can go online to assign questions, view results, reports and more!
Knowledge and understanding 1.
Identify the main participants in the financial industry.
2.
Identify the two main laws that protect investors.
3.
Outline what a financial adviser does and their responsibilities under the law.
4.
Justify the importance of ASIC in protecting investors.
5.
Compare the roles of the different government agencies that protect investors by showing how they differ.
Thinking, researching and communicating 1.
Access the following website to review the Moneysmart information on how to invest https://cambridge.edu.au/redirect/11761. Select one of the areas and summarise it, then share your findings as an interactive presentation to the class.
2.
Access the following website to review the Moneysmart information on developing an investing plan: https://cambridge.edu.au/redirect/11762. Pretend you are 10 years into the future and predict what your income and wealth will look like. Use this information to build an investing plan for yourself. Compare this with your classmates. How do you differ?
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Case study: what company is best to invest in? Success criteria
In this lesson, you will learn how to research a company before making the decision to invest.
❏ I can explain the factors you must consider when choosing a business to invest in.
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Learning intention
Starter activity 1.
Without doing any research, write down businesses you think are listed on the ASX. List as many as you can.
2.
Compare your list with the person sitting next to you.
a. Did you have many of the same ones? b. Who had written down more businesses?
Did you know there are over 2000 ASX-listed companies? The Australian Securities Exchange (ASX) is a marketplace where buyers and sellers of shares come together to trade. With so many companies to invest in, it is difficult to know which companies suit your financial goals, so it is important to research companies you are interested in before you become a shareholder.
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Figure 9.8.1 How do smart investors decide where to put their money? These students are using data to research companies before making an informed choice.
Activity 9.8.1
Know what you want as an investor
Consider the following questions before you begin your research. 1.
What is your goal as an investor? Are you more interested in capital growth or in receiving dividends? Or a mixture of both?
2.
Do you intend to keep shares for the long term, medium term or short term?
3.
What sectors are you most familiar with?
4.
Describe your risk appetite (refer to Lesson 9.3). Are you a cautious investor or more of a risk-taker?
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9.8 Case study: what company is best to invest in?
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Activity 9.8.2 Know your sectors 1.
Construct the table below in your workbook.
Sector
Types of companies in this sector
Examples of companies in this sector (List three per sector)
Consumer discretionary
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Consumer staples Energy
Financials
Healthcare
Industrials
Information technology Materials
Real estate
Telecommunication services Utilities
2.
Research the types of companies in each sector and list three companies as examples for each sector.
Activity 9.8.3
Know your companies
Select three of the companies identified in Activity 9.8.2 and research them thoroughly. Consider the following points in your research. 1.
Outline what the company does to make a profit.
2.
Identify how many years it has been in operation and how many years it has been listed on the ASX.
3.
Research the general news surrounding the company. Are the articles you read mostly favourable towards the company?
4.
Discuss the financial situation of the company based on the following.
a. Profits: have profits been growing steadily? b. Share price: has the share price increased steadily over the years? c. Dividend payments: are dividend payments made to shareholders regularly?
Activity 9.8.4
Your company of choice to invest in 1.
Identify which company is best suited to your financial goals.
2.
Justify why this company is worthwhile to invest in. Give at least three reasons.
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Skills focus: can I become a share market detective to figure out how a company is performing? Success criteria
In this lesson, you will learn how to understand trends about a company’s share performance from reading a chart.
❏ I can explain how investors use share charts alongside other information to make investment decisions.
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Learning intention
Starter activity 1.
List as many types of charts as you can think of in your workbook.
2.
Compare your responses with the rest of your class.
3.
Do you know which type of graph is the most common when it comes to making investment decisions and buying shares?
Share price
How to read a share price chart
A share price chart is an important tool used by investors to make decisions about what companies to invest in. It indicates how much shares are worth over a period of time and how much the share price has changed over time, indicating the trend relevant to that company. They may help an investor understand past performance and consider when to buy or sell shares or understand how confident other investors are about a company. Figure 9.9.1 shows a company’s share price chart. The red line shows the fluctuating share price over time, and the blue line show the general upward trend.
Time
Share price
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Figure 9.9.1 This company chart indicates an upward trend over time with some volatility.
Time ➜
Figure 9.9.2 This company chart indicates a downward trend over time.
How to interpret a trend
Generally, an upward trend (as shown by the blue trend line in Figure 9.9.1) may indicate that a company is growing and has performed well over time. A downward trend (as shown by the blue trend line in Figure 9.9.2) may suggest weaker performance or challenges, with investors hesitant to invest in it. While trends can help investors understand how a company has performed in the past, they cannot reliably predict future performance. Trends can change for many reasons, including:
• increasing or decreasing company profits • expansion of the business, such as new stores or products
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9.9 Skills focus: can I become a share market detective to figure out how a company is performing?
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Share price
• increasing competition in the market • economic conditions • major events affecting the company.
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Time
Figure 9.9.3 This company chart indicates a stable trend.
It’s important to do your research
Charts are only one way to research a company and should be used with other information when making investment decisions. An investor should also look at the prospectus and annual financial report of the company, as well as any media announcements about the company indicating new opportunities, or events that may have had an adverse impact. For example, an airline’s share price may be impacted by any recent mechanical issues it has had, or political problems in countries it frequently flies to. It is important that you understand charts are only some of the many tools available to you as an investor to help you make an informed decision.
Review 9.9
Online quiz
Knowledge and understanding
Thinking, researching and communicating
Students can access sample responses and results online
prospectus a document that provides information about a company and its shares to help investors decide whether to invest
Teachers can go online to assign questions, view results, reports and more!
Knowledge and understanding 1.
Refer to Figure 9.9.1. Describe the trend shown in the chart and explain what this suggests about the company’s past performance.
2.
Refer to Figure 9.9.2. Describe the trend shown in the chart and explain what this suggests about the company’s past performance.
3.
Refer to Figure 9.9.3. Describe the trend shown in the chart and explain what this suggests about the company’s past performance.
4.
Explain why a share price chart alone is not enough to make an investment decision, and outline other sources of information an investor can use.
Thinking, researching and communicating 1.
Select three companies listed on the ASX and review their charts. Respond to the following questions to help decide if each could be a good investment. a. Identify the trend shown in the chart over one year. Is it upward, downward or stable? b. Research the company (you may refer to the prospectus, annual financial report or media articles) more widely and summarise three important points about the company and its performance. c. For each of the companies researched, justify why you would or would not invest in it, drawing on your understanding from this lesson on how to interpret trends.
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9.10
Investigation: can you beat the market in the ASX Schools Sharemarket Game? Success criteria
In this lesson, you will learn how to invest in the share market.
❏ I can explain how the share market works. ❏ I can identify how to invest in the share market.
SA D I M GI PL T A E L C -O H N AP L Y TE R S
Learning intention
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Figure 9.10.1 The ASX Schools Sharemarket Game
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9.10 Investigation: can you beat the market in the ASX Schools Sharemarket Game?
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Get ready to play! It’s time to put your investing skills to the test and play the ASX Schools Sharemarket Game. When you play, you will be given $50,000 in virtual money to test your investing skills and turn it into far more by competing with investors in your class, your state and all over Australia to possibly win some big prizes!
Getting started
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1. Your teacher will need to register you for the game and provide you with information on how to log in and instructions on how to play on the website. 2. Once registered, download the tracker here: https://cambridge.edu.au/redirect/11763. You will need one tracker for each company. 3. Watch Finding your way around the game | ASX Schools Sharemarket Game at the following link: https://cambridge.edu.au/redirect/11764. 4. Outline five important tips shared in the video about playing the game. Compare these with a classmate. Do they have the same tips or different ones? Consider writing these down, if you feel they are important.
Tracking your share price
Using the downloaded graph, track three companies of your choice, recording their share price daily. (You may want to invest in the same companies from previous lessons.)
Comparing your companies
Have a look at the three graphs and the data you collected using the trackers.
1. Identify the company that performed the best of the ones tracked. 2. Explain why the highest performer may have outperformed the rest over four weeks. 3. Compare your highest performing company with your peers in the class. Who had the greatest success?
Note: You can also complete this investigation using real share market data from the Company Directory on the ASX website by recording the daily closing price of the three companies you have chosen to track.
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Chapter review Access the Interactive Textbook for a range of digital tools to help you review this chapter and build confidence.
• Auto-marked questions for fast feedback and fun practice • Self-assessment tools to track your progress, review answers (if enabled
SA D I M GI PL T A E L C -O H N AP L Y TE R S
by the teacher), and flag questions for extra help • Downloadable worksheets for class or homework revision
DOC
Download chapter summary
Summary
Summary notes
What have you learned about investing? Copy the table and fill it out by outlining your understanding. Aim for two points per topic.
Topic
What I have learned
Financing investments Investment methods Ethical investment
Investment considerations Investment risk reduction
The professionals, organisations and agencies protecting investors
Visible thinking routine Connect, extend, challenge
This exercise in visible thinking asks you to think about how the concepts in this chapter have expanded your understanding of how investing works.
Using the question prompts, write a paragraph explaining what you previously knew about the topic and connecting what you now understand about the topic to your own experiences. 1.
Connect: how does what you learned in this chapter connect to what you already knew about investing?
2.
Extend: what new ideas have extended or deepened your thinking?
3.
Challenge: what is still challenging or confusing? What questions do you now have?
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9.11 Chapter review
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Questions Scorcher quiz Access a fast, fun, competitive quiz that puts your understanding to the test.
Short-answer questions Define the term initial public offering (IPO).
2.
Define equity finance, including where the funds come from and what investors receive in return.
3.
Define ESG, outlining what each letter stands for and how it is used to assess a company.
4.
Outline how shareholders earn money from their investments.
5.
Describe one advantage and one disadvantage of using personal savings to invest.
6.
List three factors to consider before choosing an investment.
7.
Outline why diversification is important when investing.
8.
Summarise the relationship between risk and return.
9.
Identify two factors that may influence an investment decision, with reference to economic conditions and an investor’s risk appetite.
10.
Identify two warning signs that an investment offer may be a scam and outline the purpose of Scamwatch.
11.
Outline the role of a financial adviser.
12.
List two responsibilities of ASIC.
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1.
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Figure 9.11.1 Airline Virgin Australia marks its IPO by ringing the bell for the commencement of trading at the Australian Securities Exchange (ASX). Investing in shares allows individuals to own parts of wellknown companies and organisations.
Teachers, access the Online Teaching Suite for digital resources and tools that support review, assessment and reporting, including:
• student and class activity reports • a test generator to create custom assessments • built-in feedback tools • editable downloadable support material • a downloadable and printable “Writing focus” workbook for this chapter.
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Writing focus The following activities offer ways to demonstrate your understanding of the chapter and allow you to continue to practise your writing skills.
Download single paragraph model
Answering questions in paragraphs You can use this as a model when writing your own answers to the questions that follow.
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Question: With reference to different types of investments, outline how your risk appetite may impact your investment choices. Model answer:
Topic sentence: the first sentence of the paragraph; directly answers the question Elaborate: extra detail, reasoning, causes, consequences, links between ideas
Linking sentence: reconnects to the topic sentence using the language of the question
Risk appetite influences the types of investments an individual selects because it determines how much uncertainty they are willing to accept. Investors with a low risk appetite generally prefer stable, lower-return options such as bonds or blue chip shares. Investors with a higher risk appetite may choose assets like technology stocks or cryptocurrency, which offer higher potential returns but greater volatility. This is evident in how portfolios change across life stages, with younger investors often taking on more risk than those nearing retirement. For example, a cautious investor may select a balanced fund, while a growth-oriented investor may prefer a portfolio weighted towards shares. Therefore, understanding risk appetite helps investors choose investments that match their goals and comfort level.
Explain: clarify, define and describe
Evidence: specific, relevant evidence to support arguments
Examples: provide credibility and illustrate the argument
Structured-response questions 1.
Outline reasons why a company may choose to list on the ASX.
2.
Outline the two ways investors can make money from shares.
3.
Compare the benefits of investing using personal savings versus borrowing.
4.
Identify the factors that an investor may consider when investing their money.
Extended-response questions 1.
Explain the importance of ethical investing, including factors to consider when assessing ethical investments, and make reference to at least one company.
2.
Imagine you are a financial adviser and a young investor has come to you for guidance. Explain five pieces of advice you would give to support them in developing their investment strategy.
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Chapter
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11
Political and community involvement
Lessons 11.1
Setting the scene: being involved
11.2
What types of issues of concern affect the lives of individuals and the community?
11.3
How can individuals and groups influence political processes and decisions on issues of concern, and how effective are these methods?
11.4
The right to stand for public office: what eligibility requirements are needed to become a candidate at different levels of government?
11.5
Case study: what is a young parliamentarian?
11.6
What are the roles and responsibilities of elected representatives and what happens if they do the wrong thing?
11.7
What are the opportunities to become an active participant in the community?
11.8
Skills focus: how do I research my local council?
11.9
What are the benefits of community involvement and how can young people be more involved?
11.10 Investigation: organising a local campaign against graffiti 11.11 Chapter review
Teachers access the Online Teaching Suite to: • plan, sequence and assign directed tasks for students and classes using Task Manager • view student activity reports • provide feedback to students • download a printable “Writing focus” workbook for this chapter.
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11.1
Setting the scene: being involved
Success criteria
In this lesson, you will learn about the issues that affect a community and cause people to take action.
❏ I can identify issues that are important to members of a community.
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Learning intention
What matters to you?
In February 2025, ahead of a national election, the online publication The Conversation featured an article titled “What do young people want to see in politics? More than 20,000 pieces of their writing hold some answers”. The article highlighted that over the past 20 years, young people have shared their perspectives through the Whitlam Institute’s “What Matters?” writing competition. Open to students in years 5 to 12, the competition allows them to write on any topic. While many participants enter as part of their school’s civics curriculum, others join out of personal interest.
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Video 11.1.1 Setting the scene: political and community involvement
Writing focus 11.1 Question words
Drawing on a unique sample of 22,500 submissions from 2019 to 2024, the analysis revealed the key issues that resonate most strongly with this generation. Common themes identified include society and democracy, mental health, the environment and climate change, intergenerational justice and (social) media.
submission written feedback given to government during consultations
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Figure 11.1.1 Climate change is a key area of concern for young people.
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11.1 Setting the scene: being involved
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Activity 11.1.1 Addressing the issues
Consider the issues discussed in the article and write down the answers to the following questions in your workbook. 1.
Do any of these themes resonate with you? If so, which do you believe is the most important?
2.
How might you raise awareness about this issue and work towards a solution?
SA D I M GI PL T A E L C -O H N AP L Y TE R S
In this topic, you will explore concerns that affect both individuals and the community, as well as strategies for drawing attention to these issues.
Activity 11.1.2
Thinking and writing
Refer to Figure 11.1.2.
➜
Figure 11.1.2 Volunteers collecting signatures
1.
Explain in one sentence what is happening in the picture.
2.
Identify the kinds of causes or issues the volunteers might be campaigning for.
3.
Identify the issues that affect your community. Would you be likely to create a petition for any of these issues? Why or why not?
4.
Consider the issues raised in The Conversation article. Which one do you think causes the most concern? Explain why.
5.
Discuss this with another student. Write a brief summary of your discussion.
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11.2
What types of issues of concern affect the lives of individuals and the community? Success criteria
In this lesson, you will learn about the issues that create concern with individuals and the community at local, state and federal levels.
❏ I can outline the main issues that create concern with individuals and the community at local, state and national levels.
SA D I M GI PL T A E L C -O H N AP L Y TE R S
Learning intention
Starter activity
If you read the newspaper, watch the news, listen to your parents and friends, you will hear about lots of concerns in the local and wider community. In fact, after listening to them, you may even feel that society is crumbling around you.
sensationalism the act by the media of presenting information in a way that is shocking or exciting
1.
What can you do to separate the real from the sensationalism?
2.
Talk about this with another student.
➜
Figure 11.2.1 How do you work out the real issues from all the noise?
Areas of concern
Writing focus 11.2 Transitional phrases
There will be different areas of concern for individuals and communities that may only affect them in their local area, such as a new housing development in their suburb. Other concerns can be at a state level, affecting such things as state recreation parks, and then there may be issues at a whole country level, including increased taxes. These are all the responsibilities of different levels and areas of government.
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11.2 What types of issues of concern affect the lives of individuals and the community?
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Different levels of government deal with different issues As you may already be aware, Australia has three levels of government: federal state local.
• • •
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Each level has its own set of responsibilities, including addressing issues that affect individuals and communities at the local, state and national levels. Contacting the relevant government body (and its representative in your area) is usually the first point of contact in dealing with an issue.
federal related to the central government of a country, as opposed to the government of a specific state or region
Local government and community concerns
Local governments are the closest level of government to communities and so have direct management of many day-to-day services.
Infrastructure and services
• Local councils maintain and upgrade roads, footpaths, drainage systems, parks and recreational facilities. They ensure that street lighting, public toilets and waste collection services operate efficiently. • If this infrastructure is not well maintained, it will affect the local community’s quality of life and safety.
Community health and safety
• Local governments work with police and emergency services to manage community safety programs, fire prevention, and local health initiatives such as vaccination drives and health screenings. • If the local government is not strong in these areas, it can lead to increased crime and health risks in the community.
• Local councils control zoning regulations, approve building permits, and oversee residential and Urban planning commercial development. and development • Without good urban planning, factors such as sustainable growth, heritage and the balance of community needs will suffer.
Environmental management
• Councils run litter and recycling programs, manage parks, protect waterways and regulate pollution at a local level. These actions contribute to cleaner environments and better public health. • When these things are not monitored, communities may become less attractive or healthy places for people to live in.
Local economy and employment
• Local governments support small business through grants or workshops, attract tourism, and create job opportunities by maintaining commercial zones and infrastructure. • Without this support, businesses will choose to set up elsewhere and unemployment will rise.
• Local councils offer services such as community centres, libraries, aged care programs, youth services and support for marginalised groups. Social services • These services are important for community cohesion and provide vital assistance to vulnerable residents. • When these services are lacking, individuals may face social isolation.
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Figure 11.2.2 Without these core local government services, community wellbeing will suffer. Digital-only chapters • Cambridge University Press & Assessment © Khair, et al 2026 • 978-1-009-78780-2 • (03) 8671 1400
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State government and community concerns State governments are responsible for delivering essential services and addressing community issues that affect people across the state. • State governments run public hospitals, ambulance services and mental health programs. They make sure emergency and planned medical treatments are available and regulate private healthcare providers. • If these services are not well managed or funded, it can lead to long waiting times and negatively affect the health of the community.
Healthcare
• State governments manage public schools, set the curriculum standards, approve teachers and provide funding for their training. • Without this support, learning opportunities and the community’s success would suffer.
Transport
• State governments build and care for highways, organise public transport like trains and buses, and enforce road safety laws. • Good transport helps people move around, supports trade and reduces traffic problems. • Poor transport services can isolate people and communities, limiting access to essential services.
Law and order
• State police enforce laws, state courts handle legal matters, and state correctional facilities manage prisons and rehabilitation programs. • Public safety and justice are essential for community trust and wellbeing.
Environmental protection
• State authorities create and carry out conservation programs, manage water supplies and enforce environmental laws. • They deal with problems like deforestation, water quality and land damage, which are important for sustainable living. • Without these efforts, the lives of future generations are impacted.
Economic development
• States invest in large infrastructure projects, support different industries, offer incentives to businesses and create workforce policies. • These actions help create jobs and grow the economy. • Without them, unemployment can rise, leading to social problems.
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Figure 11.2.3 State governments invest in the long-term health, safety and development of the community.
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Figure 11.2.4 The state government invests in transport and infrastructure, like the new Sydney Metro system and the redevelopment of Barangaroo. Digital-only chapters • Cambridge University Press & Assessment © Khair, et al 2026 • 978-1-009-78780-2 • (03) 8671 1400
11.2 What types of issues of concern affect the lives of individuals and the community?
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Federal government and community concerns The federal government is responsible for setting national policies and managing programs that affect the entire country. National security and defence
• The federal government oversees the military, intelligence services and border control to protect Australia from external threats and maintain the nation’s sovereignty. • National security is vital for the safety of all citizens and to alleviate concerns about the country’s vulnerability to attack.
Social security
• Federal programs provide financial support such as unemployment benefits, pensions, disability payments and family assistance. • These safety nets help reduce poverty and support vulnerable individuals.
Economy and trade
• The government manages federal taxes, creates fiscal policies, negotiates trade agreements and regulates the national financial system. • The state of the economy impacts employment opportunities, wages and the overall cost of living.
Healthcare funding
• Although many health services are delivered by the states, the federal government funds Medicare, subsidises medicines and runs national health programs like immunisation campaigns. • This ensures that healthcare remains affordable and accessible.
SA D I M GI PL T A E L C -O H N AP L Y TE R S Immigration and citizenship
• The federal government establishes immigration policies, processes visa applications and grants citizenship. • These actions influence population growth, cultural diversity and Australia’s relationships with other countries. • While some worry that high immigration could strain resources, others fear that low immigration may result in a shortage of workers and consumers needed for economic growth.
Environmental policy
• The federal government develops nationwide climate strategies, sets and enforces emissions targets, and protects biodiversity through legislation. • These policies address environmental challenges that affect all Australians on a global scale.
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Figure 11.2.5 The actions taken by the federal government affect the whole of Australia and cover these areas.
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Figure 11.2.6 People are concerned about the environment at local, state and federal level and expect elected officials to devise solutions. Digital-only chapters • Cambridge University Press & Assessment © Khair, et al 2026 • 978-1-009-78780-2 • (03) 8671 1400
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Review 11.2 Online quiz
Knowledge and understanding
Thinking, researching and communicating
Students can access sample responses and results online
Teachers can go online to assign questions, view results, reports and more!
Knowledge and understanding 1.
Copy the table into your workbook and complete it with information from the text in this lesson.
Main responsibilities
Areas of concern for individuals and community
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Area of government Local government State government
Federal government
2.
Identify if the statements below are true or false. Write the true statements in your workbook and rewrite the false statements to make them true.
Statement
True or false
a. State recreation parks are managed and concerned with local government only. b. Different levels of government are responsible for addressing concerns at local, state and national levels.
c. A new housing development is usually a responsibility of the federal government. d. There are no concerns that affect only local areas; all issues are either state or national only.
e. It is the same government body that handles local suburb issues and countrywide tax policies.
f. Local governments handle issues that only affect their specific suburb or community. g. National issues, such as changes in taxation, do not fall under any government responsibility.
h. Local, state and federal governments share some responsibilities depending on the issue. i. D ifferent government levels ensure that problems affecting different-sized communities can be addressed appropriately.
3.
Read through each of the following specific community concerns and identify which level of government you would contact about it. Explain the reason why. a. Some local streets are very dark at night.
b. The high school needs its science labs to be updated.
c. The street where the primary school is located needs to have better crossing facilities.
d. The Medicare payment does not cover the doctor’s bill.
e. The local hospital does not have enough emergency room beds.
f. Concerns about selling products to a country with human rights contraventions.
Thinking, researching and communicating 1.
Imagine that you had to explain to someone why it is important to have local, state and federal governments instead of just one level handling all issues. Write two to three paragraphs justifying your explanation to them. Digital-only chapters • Cambridge University Press & Assessment © Khair, et al 2026 • 978-1-009-78780-2 • (03) 8671 1400
11.3 How can individuals and groups influence political processes and decisions on issues of concern
11.3
717
How can individuals and groups influence political processes and decisions on issues of concern, and how effective are these methods? Success criteria
In this lesson, you will learn about the different ways that individuals and groups can influence political decision-making about issues, then consider the effectiveness of these methods.
❏ I can identify and outline different methods of influencing political processes and decisions in dealing with issues. ❏ I can assess the effectiveness of the methods that are used to influence political processes and decisions.
SA D I M GI PL T A E L C -O H N AP L Y TE R S
Learning intention
Starter activity 1.
If you had concerns about an issue that affected you or your community, what actions could you take to try to find a solution?
2.
Jot down some ideas.
3.
Compare them with another student.
4.
Which action do you think would be the most effective?
Ways to get involved
Individuals and groups have many ways to influence political decisions and processes. These include:
• voting • joining interest groups • signing petitions, writing letters and contacting the media. Each method has its own strengths and challenges, but when combined, they create a strong set of tools for taking part in democracy and making an impact. Success often depends on clear messaging, good organisation, persistence, and using the right platforms and channels. Additionally, many political issues need people, interest groups and elected officials working together to achieve real change.
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Figure 11.3.1 Is a protest an effective way to bring about change?
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Each method plays a vital role in influencing political processes, with varying strengths and limitations; however, their effectiveness depends on context, sustained effort, and often a combination of methods used strategically over time. What is important is that empowering citizens with knowledge and access, as well as responsive institutions, enhances democratic influence overall.
Voting in elections Voting is very important in a representative democracy. It lets people do the following.
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• Choose leaders or parties that share their values and what they care about. • Decide who will be in the government at local, state and national levels. • Have a direct say in how the government is run and what decisions it makes. • Help bring changes that match what the voters want. For example, if people vote for a candidate who promises to improve public schools, this can lead to more resources for schools and hiring more teachers.
In Australia, the law requires everyone who is eligible to vote, which affects how many people take part. However, issues can still arise.
• If a person resents being forced to vote, they may not take their vote seriously. • Some people don’t vote because they feel uninterested or disconnected, which can • •
make voting less effective. Voting only happens sometimes, so people can’t give their opinions on unforeseen issues that need action between elections. Some voters always support the same party or vote the same way, so it’s hard to see changes.
When is voting most effective?
Voting works best when many people take part and elections are close. It matters more when big issues like money, health or the environment are talked about during campaigns. In Australia, voting is required by law, which helps make sure many people vote every time.
Joining or forming interest groups and advocacy organisations
interest groups groups that try to influence government decisions on issues they care about advocacy speaking or acting in support of a cause
Interest groups and advocacy organisations bring people together who care about the same issues. These groups work as a team to ask the government for changes, talk to the media and get more people to join them. By working together, they can share money, skills and ideas, which helps them have a stronger voice and be taken more seriously by decision-makers. For example, the Australian Conservation Foundation protects the environment by doing research, talking to politicians and running public campaigns to raise awareness. Interest groups try to influence politics in different ways.
• One way is called lobbying, where they meet with government officials to ask for •
new laws or changes to existing ones that support their goals. They encourage their members to vote for certain candidates during elections.
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• They hold protests to draw attention to their cause. • They use the media to shape public opinion by giving interviews, writing articles or •
running campaigns. They write reports or give advice to government committees when new laws are being discussed, helping guide decisions.
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Even though interest groups are important, they face some problems. Some groups focus only on their own small interests and forget about what is good for everyone. This can upset other people. Bigger or richer groups have more money and staff, so they can have more influence than smaller groups. Smaller groups might find it hard to make their voices heard. Also, if people think these groups only help wealthy or powerful members, the groups might lose trust and support from the public.
When are interest groups and advocacy most effective?
Groups need good connections with government leaders to be listened to. Groups that give clear and trustworthy information have more chance to influence decisions. It also helps if many people agree with what the group wants. Lastly, being honest and open about what they do makes people trust the group more, and this helps them get support.
Petitions and campaigns
Petitions are used to show public support or opposition by gathering signatures from many people. Campaigns aim to raise awareness about an issue through activities like writing letters, collecting petitions or fundraising. They can also get attention from the media and others, which helps more people learn about the problem. Sometimes, petitions can start talks or investigations in parliament. These actions help highlight specific concerns in the community and create pressure on politicians to respond.
However, petitions and campaigns need to reach many people and gain media attention to have a real impact. They might be ignored if not many people support them or if there is no ongoing effort. Without more action, petitions might only be symbolic and not lead to real change. Online petitions can also have trouble proving that all signatures are real.
When are petitions and campaigns most effective? Petitions work best when lots of people sign them, and they are part of a well-planned campaign with media attention. It also helps to keep talking with representatives after sending the petition to keep the effort strong.
Engaging in public demonstrations and protests
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Public protests and rallies are events where people show if they agree or disagree with something. They also help people feel connected and part of a team working for the cause.
Figure 11.3.2 Street volunteers collecting signatures for a petition
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These events get attention from the news and make people talk about important issues. Big protests can help make politicians and the public see that the issue needs to be fixed quickly. For example, young people all over the world have organised climate strikes to encourage governments to take stronger actions to protect the environment.
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Protests can have some problems too, which is why it’s very important that these events stay peaceful and follow the law. If protests become Figure 11.3.3 A protest against inaction on climate change messy or violent, people might think badly of them. Sometimes, protests don’t last or make a big impact if they are not part of a bigger plan. Some leaders might ignore protests and say they only represent a small group.
➜
Video 11.3.1 Black Lives Matter protests, 2020
When are public protests most effective?
To be most effective, protests need many peaceful people, clear messages, and goals that can be reached. Timing protests carefully, like before important political events, can also help them have a bigger effect.
Contacting elected representatives
Contacting elected representatives means writing or speaking directly to politicians to share opinions, offer local knowledge or ask for help. This kind of personal communication can be better at influencing lawmakers than large, general campaigns because politicians want to hear from the people they represent about what matters to them. This helps politicians understand what their voters want and can influence their decisions. Sometimes, it can also bring new services or projects to the area, such as better public transport services. There are some challenges here, too. It can take persistence and clear messages to get a response, and sometimes it is hard to reach the right elected officials. Individual messages may not get noticed, especially if the representative is not very responsive. It can also be harder for people in smaller or less organised groups to make their voices heard.
When is contacting elected representatives most effective?
➜
Figure 11.3.4 You can email your elected representative as one option to make your voice heard.
If you live in an area where the elections are close, your voice might count more. Sending personal and polite messages regularly also helps build a relationship with your representative, making it more likely they will listen and help.
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Participating in public consultations and submissions
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Governments and organisations often ask people to give their opinions when they are making new rules or planning big projects. This lets people share detailed information or different ideas that might change what the government decides. For example, a person might send a letter about how a new highway could affect the environment. People can send detailed reports with facts, ideas or concerns to help influence government decisions. Another way is by speaking directly to leaders at public meetings. Sometimes, official steps like consultations and reviews can also slow down or change plans because of the feedback received.
But there are problems too. The language used in government communications can be hard to understand, and the steps can be tricky, making it hard for some people to join in. Taking part can also take a lot of time and effort, and governments don’t always have to listen to the feedback.
When is participating in public consultations most effective?
When many people get involved, it shows that the issue is important to a lot of people. When a group participating in public consultations gives clear, well-organised information with facts or expert advice, it can help boost participation. If the feedback is mentioned in official reports, it can help change political talks and decisions.
Using media and social media platforms
Traditional media like newspapers, television and radio, along with social media platforms, are used to share information, gather supporters and shape public conversations. These tools can reach a large audience quickly, and social media especially helps small groups spread their message and respond quickly. Social media helps people learn about issues and get support quickly, and it can make politicians pay attention by showing what people think through efforts like hashtag campaigns, for example. However, there can often be too much information to follow, a high risk of false information, and people often have short attention spans, so keeping them active and engaged can be a challenge. People often only see opinions they agree with, which is called being in an echo chamber. Also, not everyone uses or trusts social media the same way.
When are media platforms and social media most effective?
Figure 11.3.5 Social media can spread news quickly, but like all media, there is a risk of misinformation. ➜
To do well on social media, stories need to be interesting and use pictures or videos to catch attention. Good planning helps reach more people, and popular influencers can make messages stronger.
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Running for public office
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Running for public office means someone tries to get chosen for a position in government, like being a local council member or a state representative. When candidates win office, they become directly involved in making important decisions and creating laws and policies. They do this by introducing new laws, voting on proposed legislation, advocating for the needs and interests of the people they represent, and influencing how budgets are set and programs are carried out. This gives them a chance to bring positive changes and support important causes from inside the government. For example, a community activist might run for local council to help improve youth services in their area. However, running for office takes a lot of time, effort and money. The competition among candidates can be very strong, and candidates need to get support from voters and work hard during their campaign. Even after being elected, individuals may face limits on what they can achieve due to rules and structures within the political system.
When is running for public office most effective?
platform a set of policies, ideas or plans that a political candidate presents to voters
Candidates benefit from having strong connections within their communities and clear plans or platforms that voters understand. Working collaboratively with other government members also helps increase their influence on policies. Additionally, focusing on local issues helps build support among voters, improving their chances for election and success in office.
Community organising
Community organising involves building local networks, educating community members and creating collective strength to work with authorities. This process helps people come together, improves communication and supports ongoing efforts to make positive changes in their community. For example, residents might form a neighbourhood association to campaign for safer pedestrian crossings and better street lighting. Community organising can help create solutions that fit social needs and build partnerships to help get things done. This process also helps people develop important skills and connections that make them more confident and involved in their community. However, organising people can be hard. It takes time to build trust and keep momentum going, and strong leadership and good coordination are needed. Sometimes, if the community is divided, it can make it harder to work well together.
When is community organising most effective?
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To succeed, it’s important to involve everyone and be open and honest, so people trust each other. Having clear goals and a good plan helps keep the group focused and working steadily. When the group wins small successes, it encourages more Figure 11.3.6 Community members campaigning against the Digital-only chapters • Cambridge University Press & Assessment al 2026 • 978-1-009-78780-2 • (03) motivated. 8671 1400 people©toKhair, joinetand keeps the community Carmichael coalmine
11.3 How can individuals and groups influence political processes and decisions on issues of concern
Review 11.3 Knowledge and understanding
Online quiz
Thinking, researching and communicating
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Teachers can go online to assign questions, view results, reports and more!
Students can access sample responses and results online
Knowledge and understanding
Identify some common ways individuals and groups can influence political decisions.
2.
Describe why it is important to use multiple methods when trying to influence political change.
3.
Outline how voting can lead to changes in government policies or services.
4.
Identify what an interest group is and the challenges they face when trying to influence government decisions.
5.
Explain how petitions and campaigns help bring attention to community concerns and what might limit their effectiveness.
6.
Assess how public protests influence political decisions. Why is it important for protests to remain peaceful and lawful?
7.
Explain why contacting an elected representative might be more effective than other campaigns.
8.
Summarise the purpose of public consultations and submissions in government decision-making.
9.
Discuss how traditional and social media platforms help people influence public opinion and political decisions.
10.
Summarise the opportunities for making political change that running for public office provides.
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1.
Thinking, researching and communicating 1.
Read through the text and complete the following summary table in your workbook.
Method
What it involves Advantages Disadvantages Ways to be effective
Voting
Joining groups
Petitions and campaigns
Protests
Contacting politicians
Public consultation
Using media
Running for office
Community organising
2.
Conduct some research to find out who your local, state and federal members are. Identify what party they belong to and what their contact address is. Construct a table in your workbook to keep this information.
3.
Imagine you are part of a community group wanting to protect your local environment. Identify three ways, inspired by a real-life campaign, that you could use to help to protect your area.
4.
Write a letter to your elected member of government about your concerns regarding an issue. Who you write to will depend on the issue you choose.
DOC
In your letter, remember to:
• use a formal letter format and address the member using their correct title • include an introduction to yourself and your purpose • be concise and clear about the actions you want the member to take.
Download letter-writing scaffold
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11.4
The right to stand for public office: what eligibility requirements are needed to become a candidate at different levels of government? Success criteria
In this lesson, you will learn about what a person needs to have and do to stand for public office.
❏ I can outline the requirements needed to become a candidate in Australian local, state and federal elections.
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Learning intention
Starter activity 1.
If you wanted to be elected a leader in your school community, what qualities, skills and actions would help you win?
2.
Write down a few points in response to this question.
as or
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Figure 11.4.1 Do you have the requirements that will let you run for an elected position?
One way that people can influence political decision-making and help deal with community issues is to run for an elected position in government. This can be local, state or federal government. However, to do this an individual must meet the eligibility criteria.
Writing focus 11.4 Appositives eligibility the set of requirements you must meet to qualify for something
In Australia, the right to stand for public office is generally governed by both federal and state/territory laws, which set out eligibility criteria and disqualifications for candidates.
Federal elections
Two main requirements for a candidate to stand for the Australian Parliament (both House of Representatives and Senate) are that they must be at least 18 years old and an Australian citizen. The Australian Constitution (section 44) does not allow a prospective federal candidate to:
• be bankrupt or insolvent • have been convicted of certain crimes or currently be serving a sentence • have certain paid government positions. Digital-only chapters • Cambridge University Press & Assessment © Khair, et al 2026 • 978-1-009-78780-2 • (03) 8671 1400
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To become a candidate at federal level, a person must follow certain steps (Figure 11.4.2). Nomination
• Complete a nomination form and lodge it with the Australian Electoral Commission (AEC) by the designated deadline before the election. • Pay a nomination deposit (currently $2000 for House of Representatives and Senate candidates), which is refundable if a certain percentage of votes is achieved.
Party or independent
• Candidates can stand as representatives of registered political parties (requiring party endorsement and adherence to internal party rules) or as independents.
Renunciation
• If holding dual citizenship, candidates must renounce their foreign citizenship before nominating to comply with section 44 of the Australian Constitution.
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Deposit
Figure 11.4.2 The process for becoming a candidate for a federal election
State elections
For state and local elected positions, the eligibility rules vary but generally follow similar principles regarding citizenship, age and disqualification criteria. The primary law that covers potential election candidates in New South Wales is the Electoral Act 2017 (NSW). A candidate must meet the following eligibility requirements.
• They must be at least 18 years old. • They must be an Australian citizen. • There is no strict residency requirement within New South Wales, but you must be enrolled to vote in New South Wales or eligible to be enrolled.
A prospective candidate cannot be:
• bankrupt • serving certain criminal sentences • holding certain positions that disqualify them under the NSW Constitution or the Electoral Act (e.g. certain public servants or judiciary members).
Each Australian state and territory has its own electoral commission and legislation, but the principles are broadly similar. An eligible person must follow the process shown in Figure 11.4.3. Nomination
• Submit nomination forms to the relevant state or territory electoral commission by the official deadline.
Deposit
• Usually a monetary deposit is required, refundable subject to vote thresholds.
Party endorsement or independent
• Similar to federal elections, candidates can be party-endorsed or independent.
Compliance
• Ensure compliance with candidate information disclosure and campaign finance laws.
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Figure 11.4.3chapters The process for becoming a candidate state election© Khair, et al 2026 • 978-1-009-78780-2 • (03) 8671 1400 Digital-only • Cambridge University Pressfor & aAssessment
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Local elections In New South Wales, the right to stand for local council elections is governed by the Local Government Act 1993 (NSW) and associated regulations. The key eligibility requirements to be a candidate for local council are that a prospective candidate be at least 18 years old on the day of nomination. They must meet at least one of the following criteria.
• Be an elector for the local government area (LGA),
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•
meaning that they are enrolled to vote there. Have been a resident in the LGA for at least three months before the day of nomination. Be the owner or renter of rateable property in the LGA for at least three months before the day of nomination. Be the principal or a secretary of a corporation that owns or leases property in the LGA for at least three months before nomination.
• •
➜
Figure 11.4.4 There are many eligibility requirements across different levels of government for a candidate to stand for public office.
Nomination
Fee
These criteria ensure that candidates have a genuine connection to the local community they wish to represent.
At local government level, prospective candidates need to participate in the process shown in Figure 11.4.5.
• Lodge a nomination form with the NSW Electoral Commission by the close of nominations, usually a few weeks before the election date. • There may be a nomination fee (varies by council).
Compliance
• Include declaration of eligibility and possibly evidence of residential or property qualification.
Endorsement
• Local council elections are usually non-partisan, but candidates can also be endorsed by political parties or run independently.
Campaigning
• Candidates can campaign according to local rules and must adhere to conduct and disclosure requirements.
➜
Figure 11.4.5 The process for becoming a candidate for a local election
Additional considerations across all levels
• Electoral roll enrolment: it’s essential that you are correctly enrolled on the electoral • •
roll for the area and jurisdiction where you intend to stand. Disclosure and integrity: candidates must comply with laws on disclosure of interests, donations and campaign financing. Withdrawal: candidates may withdraw their nomination before the close of nominations.
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11.4 The right to stand for public office: eligibility requirements at different levels of government
Review 11.4 Knowledge and understanding
Online quiz
Thinking, researching and communicating
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Teachers can go online to assign questions, view results, reports and more!
Students can access sample responses and results online
Knowledge and understanding 1.
Identify if the statements below are true or false. Write the true statements in your workbook and rewrite the false statements to make them true.
Statement
True or false
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a. The Australian Constitution (section 44) does not allow a prospective federal candidate to hold dual citizenship, unless renounced prior to nomination. b. Candidates may withdraw their nomination after nominations close.
c. Federal candidates must pay a nomination deposit (currently $2000 for House of Representatives and Senate candidates), which is refundable if a certain percentage of votes is achieved.
d. Local candidates must have been a resident in the LGA for at least a month before the day of nomination. e. For local candidates, the cost of their nomination fee varies by council.
f. Across all levels, late nominations can be accepted with a $500 late fee.
2.
Define what is meant by compliance within local government.
3.
Define what is meant by nomination within state or territory government.
4.
Outline the Act that governs local council elections in New South Wales.
5.
a. Define at least two of the four criteria that prospective candidates must meet to be eligible for election.
b. Justify why these criteria are in place.
Thinking, researching and communicating 1.
Imagine an individual living in New South Wales who wants to stand for public office. Construct an account of their electoral journey. a. Create an individual
i. How old is the individual? ii. Are they an Australian citizen? iii. Which level of government would they like to run for (federal, state or local)?
b. Eligibility requirements
i. What eligibility requirements must the individual meet at this level of government? ii. Are there any reasons they may be disqualified? iii. What level seems easiest or hardest to run for, and why?
c. Reflecting on the rules
i. Do the rules seem fair for this individual? Could some rules make it harder for certain people to participate? ii. How do these rules protect voters and elections? iii. What risks might come from changing these rules?
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11.5
Case study: what is a young parliamentarian? Success criteria
In this lesson, you will learn about some younger Australians who became involved in politics.
❏ I can identify one young Australian who entered politics and describe how they went about doing this.
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Learning intention
Starter activity
Politics is often seen as an older person’s arena; however, age is not a barrier if you can meet the necessary criteria to be a candidate in an election. 1.
What advice do you think you could give a year 7 student with political aspirations?
➜
Figure 11.5.1 Senator Fatima Payman makes a speech in Parliament House.
Young politicians creating a pathway for others
At the beginning of 2025, the average age of Australian members of parliament was 52, with fewer than 25% aged 45 or younger. This is significantly older than the national median age of all Australians, around 38. Despite these figures, some members of parliament have been under the age of 30. The experiences of Fatima Payman, Wyatt Roy and Sarah Hanson-Young (outlined in Figure 11.5.2) underscore the distinct challenges and opportunities encountered by young politicians in Australia’s federal parliament. By challenging ageism, sexism and traditional norms, they have created a path for emerging leaders to transform political conversations and introduce new perspectives that will more accurately reflect the nation’s evolving population.
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2007: Sarah Hanson-Young Hanson-Young was one of the early pioneers among young politicians. When elected in 2007, she was the youngest woman ever voted into parliament. That record stood until 2025, when Labor’s Charlotte Walker, who turned 21 on election day, surpassed it. Reflecting on her experiences, Senator Hanson-Young said that while being the youngest was challenging, it also empowered her to push boundaries. She was among the first politicians to use social media to engage with voters, which exposed her to harsh online trolling. She also faced sexism and harassment but hesitated to speak out initially, fearing being labelled a “complainer”. 2010: Wyatt Roy
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Roy won a seat in the House of Representatives for the Queensland electorate of Longman at just 20 years old. During his campaign, he faced criticism due to his youth, with slogans like “Don’t trust a learner in Longman”. However, Roy found his colleagues welcoming and noted that they often sought his perspective as the youngest member. He was not re-elected in 2016 and has since moved into the private sector. 2022: Senator Fatima Payman
Senator Fatima Payman was elected to federal parliament in 2022, representing Western Australia. At 27 years old, she was the youngest member of the Senate at that time. She often felt out of place in a parliament dominated by much older colleagues and sometimes struggled to be heard, even within her own party.
➜
Figure 11.5.2 These Australian parliamentarians changed history and shattered expectations of what young people can achieve.
Charlotte Walker: the youngest Australian senator In 2025, Charlotte Walker became the youngest person ever elected to the Australian Senate. Elected as a senator for South Australia at the 2025 federal election representing the Australian Labor Party (ALP), her six-year term began on 1 July 2025. At age 21, Walker is the youngest senator in Australian history, surpassing the previous record held by Jordon Steele-John, who was elected at age 23 in 2017. She is also the youngest current member of the Australian Parliament. Her election represents a shift towards greater youth involvement in federal politics.
Political career and campaign approach
➜
At school, Walker was involved in Figure 11.5.3 Charlotte Walker attending the PIRA Federal fundraising as well as initiating a school Election Forum on 29 April 2025 sustainability project. Following high school, Walker gained practical political experience working part-time in the electorate office of Leon Bignell, Speaker of the South Australian House of Assembly.
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She also served as president of Young Labor in South Australia and worked for the Australian Services Union prior to her Senate bid. Her campaign platform focused on:
• access to education • reducing students’ HECS debt • addressing the cost-of-living crisis. Parliamentary contributions and priorities In her maiden speech on 26 August 2025, Walker addressed several key issues:
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• personal experiences with bullying and depression, inspiring her advocacy for better • • •
mental health support for young people environmental concerns, notably the algal bloom affecting South Australia a call for increased discussion on domestic violence in parliament highlighting the housing crisis impacting young Australians.
These topics reflect her commitment to representing the interests and challenges of her generation.
Conclusion
Charlotte Walker’s unprecedented election as the youngest Australian senator highlights her as a rising political leader. Her engagement with young voters through modern communication platforms, emphasis on youth-centric policies, and courage in addressing personal and societal challenges illustrate her potential to significantly influence Australian politics. Her time in parliament will be important in promoting how young people see today’s issues.
Case study activity 11.5.1 1.
Outline why you think the average age of parliament members is significantly higher than the national median age. What effects might this have on political decision-making?
2.
Discuss how older politicians may treat young politicians like Wyatt Roy, Fatima Payman and Sarah Hanson-Young and the effect it may have on attracting other young candidates to run for parliament.
3.
Explain how young politicians like Charlotte Walker can influence political conversations and policies differently than older politicians.
4.
Assess the ways social media can be both a tool and a challenge for young politicians.
5.
Evaluate the benefits and challenges that you think come with having a younger generation represented in parliament.
6.
Reflect on the campaign slogan “Don’t trust a learner in Longman” used against Wyatt Roy. What does this say about public attitudes towards age and leadership?
7.
Explain how mentorship and support from experienced politicians benefit emerging leaders like Charlotte Walker.
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11.6 What are the roles and responsibilities of elected representatives and what happens if they do the wrong thing?
11.6
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What are the roles and responsibilities of elected representatives and what happens if they do the wrong thing? Success criteria
In this lesson, you will learn about the roles and responsibilities of elected representatives and the consequences they face if they do the wrong thing.
❏ I can outline the roles and responsibilities of elected representatives and state the consequences they face if they do the wrong thing.
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Learning intention
Starter activity
Imagine that you are an elected representative responsible for helping lots of people, making laws and solving problems. 1.
What types of mistakes could you make?
2.
What might be the consequences you could face if you do the wrong thing?
➜
Figure 11.6.1 Money can often play a role in influencing elected officials to do the wrong thing.
Local government
Local councillors are people chosen by the community to speak up for them. They talk to people to find out what matters most, such as safety, traffic, parks or events. Councillors hold meetings and visit neighbourhoods to hear different ideas. Their job is to ensure that people’s opinions are heard when important decisions are made.
• • •
Councillors meet often to discuss local issues and make choices. They decide where to build parks, improve town centres, and make rules about new houses or shops. They plan how the area grows and fix problems like traffic or rubbish. Councils provide services such as rubbish collection, street cleaning, parks and libraries. Councillors make sure these services work well and ask for changes if needed. They help keep public places safe and clean. Councils have a budget, money mainly from local taxes and government help. Councillors decide how to spend this money wisely, for things like fixing roads, supporting community groups and paying workers.
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• Councillors also support local events like festivals and sports to bring people •
together. They help local clubs and volunteers and sometimes try to get extra money from state or federal governments for new projects. Councillors follow rules to make fair and honest choices. They avoid making decisions that only help themselves. They join committees focusing on specific topics, like planning or the environment, to make detailed decisions. This helps keep the council trustworthy and open.
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State elected representatives State elected officials, called members of parliament (MPs), help run their state and speak up for local people. They have a variety of roles and duties that include:
• make and change laws about schools, hospitals, transport, safety and • • • • • •
the environment listen to people’s concerns and bring them to the state parliament so that the government knows what matters to the community make sure that services like schools, hospitals, roads, buses, police and emergency services work well help decide how to spend the state’s money and check that it is used wisely keep an eye on the government to make sure it acts fairly and properly by asking questions and joining discussions stay connected with the community by meeting people, going to events and sharing news help get money and support for local projects.
Federal elected representatives
Federal elected officials, also called members of parliament, help run the country and speak for Australians. They have a variety of roles and duties that include:
• make laws that everyone in Australia follows, about things like health, safety, money, • • • • • •
schools and the environment listen to their community’s needs and bring these issues to the national parliament to find solutions check that the government is honest and doing a good job by asking questions and joining discussions to keep things fair help decide how the government’s money is spent on services like hospitals, defence and support programs make sure that important services used by all Australians, like healthcare and mail delivery, work well meet people, attend events and share government news to stay connected and listen to concerns work with state and local governments to make sure that laws and services work together to improve life for everyone.
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Wrongdoing In Australia, if an elected official does something wrong at state or federal level, there are several ways they can be held accountable. Parliamentary committees, ethics bodies or independent agencies can investigate allegations of misconduct or breaking rules. For serious matters like corruption or illegal actions, law enforcement agencies (police) can investigate and take legal action. This might lead to fines, charges or even jail.
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Political parties can also discipline their members. An official might be removed from their party, lose leadership roles or be asked to resign. In addition, voters have the power to remove officials by not re-electing them at the next election if they are unhappy with their actions.
At the local government level in Australia, if a councillor doesn’t follow codes of conduct, a complaint can be made to the council or to an independent body like the Local Government Investigations and Compliance Inspectorate (in some states) or the relevant oversight authority. An investigation can be carried out to investigate the councillor’s behaviour. If the councillor is found to have acted improperly, they may face penalties such as formal warnings, suspension or disqualification from office. In some cases, councillors who break the law can face legal action, which might include fines or other consequences depending on the nature of the offence.
code of conduct rules that guide acceptable behavior in a group or organisation
If issues are serious, state governments sometimes have the power to intervene in a local council, which could include suspending the entire council until matters are resolved. Overall, local government has processes to ensure that councillors act responsibly, and there are clear ways to address problems if a councillor does the wrong thing.
➜
Figure 11.6.2 There are several ways an elected official can be held accountable for corruption or wrongdoing. Digital-only chapters • Cambridge University Press & Assessment © Khair, et al 2026 • 978-1-009-78780-2 • (03) 8671 1400
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Taking action against wrongdoing If you believe an elected official in Australia has done the wrong thing, you can make a complaint to different authorities, depending on the level of government and the nature of the issue. Some ways you can do this are shown in Figure 11.6.3. Local government level
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You can tell your local council about the problem. They have rules about how councillors should behave and ways to deal with complaints. You can also contact a special government office in your state that checks how councils work and looks into bad behaviour. State parliament level
If it’s a state parliament member, you can complain to the group that checks their behaviour, like a parliamentary committee or a government anti-corruption agency. You can also tell their political party if you have concerns. Federal government level
For federal members or senators, there are specific people or committees that handle complaints about their conduct. If it is very serious, such as corruption or a crime, you can report it to the police or other federal law enforcement groups. All elected official levels
If you think a law was broken, you can always report it to the police. You can also contact your elected official’s office or write to them to say what your concerns are. These places are there to check on elected officials and make sure they do the right thing. ➜
Figure 11.6.3 As a citizen and community member, you have a right to address and report any wrongdoings you believe your elected officials have engaged in.
Review 11.6
Thinking, researching and communicating
Knowledge and understanding
Online quiz
Students can access sample responses and results online
Teachers can go online to assign questions, view results, reports and more!
Knowledge and understanding 1.
In your workbook, copy and complete the following summary table from your learning in this lesson.
Elected representative
Role
Responsibility
Local State
Federal
2.
Complete the following cloze passage in your workbook.
In Australia, if an elected official does something wrong at __________ or __________ level, there are several ways they can be held __________. Parliamentary committees, ethics bodies or independent __________ can look into allegations of __________ or breaking rules. For serious matters like __________ or illegal actions, law enforcement agencies can investigate and take __________ action. This might lead to fines, __________ or even jail.
Political parties can also __________ their members. An official might be removed from their party, lose __________ roles or be asked to __________. In addition, __________ have the power to remove officials by not re-electing them at the next __________ if they are unhappy with their actions. Digital-only chapters • Cambridge University Press & Assessment © Khair, et al 2026 • 978-1-009-78780-2 • (03) 8671 1400
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At the __________ government level in Australia, if a __________ does something wrong, there are several steps that can be taken to address the issue. Local councils have __________ of conduct that councillors must follow. If a councillor breaks these rules, a __________ can be made to the council or to an independent body like the Local Government Investigations and Compliance __________ (in some states) or the relevant __________ authority. An __________ can be carried out to look into the councillor’s behaviour. If the councillor is found to have acted __________, they may face penalties such as formal __________, suspension or disqualification from office. In some cases, councillors who break the law can face __________ action, which might include fines or other consequences depending on the nature of the __________.
SA D I M GI PL T A E L C -O H N AP L Y TE R S
If issues are serious, state governments sometimes have the power to __________ in a local council, which could include __________ the entire council until matters are resolved.
Overall, local government has processes to ensure that councillors act responsibly, and there are clear ways to address __________ if a councillor does the wrong thing.
3.
Identify if the statements below are true or false. Write the true statements in your workbook and rewrite the false statements to make them true.
Statement
True or false
a. You can make a complaint about a local councillor’s behaviour to your local council. b. Local councils have rules about how councillors should behave and how to handle complaints. c. For state parliament members, you cannot complain to their political party about their behaviour.
d. Complaints about federal members or senators are handled by particular officials or committees. e. If corruption or a crime is involved, it is not necessary to report it to the police.
f. At all levels of government, if you think a law was broken, you should report it to the police. g. You cannot contact an elected official’s office to raise your concerns.
h. There are no special government offices that look into bad behaviour by local councils.
Thinking, researching and communicating 1.
The Office of the NSW Ombudsman focuses on complaints, rights and fair treatment in various public services. Visit their website (https://cambridge.edu.au/redirect/12099) and complete the following activities to learn more about this body.
a. Explain the main role of the NSW Ombudsman. Why is it important to have an independent Ombudsman in government? b. Identify the types of complaints that the NSW Ombudsman can investigate. c. Summarise how the Ombudsman helps people who feel they have been treated unfairly by a public service. d. Discuss what happens once the Ombudsman starts investigating a complaint and how it ensures that complaints are handled in a fair and confidential manner. e. Create an informative poster or digital graphic about the role of the NSW Ombudsman that can be displayed around the school. The focus could be any of the following: how to make a complaint, rights of NSW residents, or why fairness in government services matters.
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11.7
What are the opportunities to become an active participant in the community? Success criteria
In this lesson, you will learn about the ways that you can be an active participant in your community.
❏ I can outline different ways that individuals can take an active role in their community.
SA D I M GI PL T A E L C -O H N AP L Y TE R S
Learning intention
Starter activity
Think about your community. You can consider your school, neighbourhood, family or any group you belong to. 1.
What is one small action you can take right now or soon to help or improve your community?
2.
Is it “doable”?
3.
Discuss your ideas with another student.
➜
Figure 11.7.1 Volunteers keeping their local park clear of rubbish Digital-only chapters • Cambridge University Press & Assessment © Khair, et al 2026 • 978-1-009-78780-2 • (03) 8671 1400
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How you can be an active participant in the community Becoming an active participant in the local community is a great way to make a positive difference and build strong connections with others. Volunteering, joining local clubs, attending community meetings and taking part in community campaigns are all ways that an individual can get involved and even create change. As you will see in the following descriptions, being involved in the community has both community and individual benefits.
Writing focus 11.7 Appositives
SA D I M GI PL T A E L C -O H N AP L Y TE R S
Volunteering
Volunteering means giving your time and skills freely to help others without expecting payment. It can involve many activities, such as helping at a local charity, assisting in community events, working with animals at shelters, or supporting people in need. Volunteering can teach important skills like teamwork, communication and responsibility. Many schools and community centres have volunteer programs, and larger organisations often have special days or ongoing roles for volunteers.
Figure 11.7.2 There are many different ways to volunteer and support your local community. ➜
Joining local clubs or groups
Local clubs or groups bring people together who share similar interests or goals. These can include sports teams (e.g. soccer, netball, basketball), hobby groups (e.g. dance, chess, gardening, music) or cultural and language groups. Being involved in clubs helps you develop talents, make new friends and contribute to group goals or events. Schools and community centres are great places to find out about clubs that suit different interests.
Attending community meetings
Community meetings provide a chance for residents to learn about what is happening locally and have their opinions heard. These might be town hall meetings, council sessions, or forums on specific topics like safety, development or environmental issues. Attending and contributing your views helps local leaders make better decisions and ensures that your community reflects the needs and ideas of its members.
Participating in clean-up or environmental activities
Helping care for the environment is another way to be active in your community. Activities might include organising or joining litter pick-ups in parks or streets, planting trees and gardens, recycling programs, or raising awareness about saving energy and water. This is valuable because a cleaner, greener environment benefits everyone’s health and happiness. Schools and environmental organisations often run programs that are open to students and families.
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Advocating for change
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Advocacy means speaking up or taking action to improve your community based on something you care about. This could be reducing plastic use, improving local transport or supporting mental health services. You can advocate by writing letters to local officials, creating petitions, organising awareness campaigns or using social media to share information. Advocacy helps bring attention to issues and can lead to important changes.
➜
Figure 11.7.3 A group of volunteers sorting donated clothes at a fundraiser
Supporting local events and fundraisers
Community events like fairs, sports tournaments, markets and charity fundraisers bring people together and raise funds or awareness for good causes. You can participate by attending, volunteering, helping organise or promoting these events. This builds community spirit and helps raise money or support for groups that improve people’s lives.
Helping neighbours and community members
Sometimes, being active means offering simple acts of kindness close to home. This could include helping elderly neighbours with shopping, gardening or technology, welcoming new families, babysitting younger kids, or organising community celebrations and holiday events. These actions build trust, friendship and a sense of belonging in your neighbourhood.
Case study 11.7.1: Clean Up Australia Day Clean Up Australia Day is a nationwide community-driven event that is held annually on the first Sunday of March. It encourages individuals, groups, schools and businesses to come together to clean up litter and waste from their local environments, such as parks, beaches, streets and waterways.
Figure 11.7.4 According to the Clean Up Australia organisation, over a million people participate every year. ➜
The goal is to improve the environment by reducing pollution, promoting recycling and raising awareness about the impact of waste on ecosystems.
The event usually involves volunteer clean-up activities and is a part of wider environmental education and community participation efforts. It helps foster a sense of community responsibility and environmental stewardship among participants. Clean Up Australia Day is held in early autumn but other related Clean Up events and initiatives occur throughout the year under the Clean Up Australia program.
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Case study 11.7.2: community involvement How the Mudcrabs group gets the community involved to clean up the Cooks River
This case study shows how getting local people involved step-by-step can make a big difference in cleaning and caring for a natural area such as the Cooks River. When many people work together, the environment and the community both benefit. Introduction
SA D I M GI PL T A E L C -O H N AP L Y TE R S
The Cooks River in Sydney has had a lot of pollution problems because of rubbish and harmful chemicals from homes and businesses. The Mudcrabs group is a local community group that aims to help clean and protect the river. They believe that to make a real difference, they need to get lots of local people involved. How the Mudcrabs group involves the local community
• Clean-up events: they organise regular days where people come together to pick up
rubbish from the river and the areas around it. These events are easy for families and people of all ages to join. They provide gloves and tools to help everyone. • Working with schools: the group visits local schools and invites students to learn about the river and help with clean-ups. This helps kids understand why the river is important and how they can help protect it. • Workshops and talks: they hold fun and simple workshops to teach people about why the river needs cleaning and how pollution hurts plants, animals and people. These talks help people learn more and ask questions. • Community activities: the group also holds friendly community events like picnics and art activities by the river, giving people a chance to meet and feel connected to the river and each other. • Using social media: they use Facebook, Instagram and websites to tell people about upcoming clean-ups, share stories and give tips on how to reduce pollution at home. Results
• More people helping: increasing numbers of people from all walks of life have joined
clean-up activities and are becoming more interested in caring for the river. • People care more: many local residents now take action, like properly disposing of rubbish and encouraging others to do the same. • Children learn and care: students who join school activities become more aware of the environment and help spread the message. • Stronger community: the group has helped neighbours, schools, businesses and local councils work together to protect the river. Challenges
• Sometimes people are busy and can’t always come to events. • Some people don’t believe small efforts help much at first. • It is hard to reach everyone in the community. What’s next?
The Mudcrabs group aims to:
• get more support from different cultural groups in the area • create programs for young people to keep them involved long-term • use technology to allow people to join in even if they cannot come to events in person.
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Review 11.7 Knowledge and understanding
Online quiz
Thinking, researching and communicating
Students can access sample responses and results online
Teachers can go online to assign questions, view results, reports and more!
Knowledge and understanding 1.
Copy the following table into your workbook and complete it by matching each action with its correct description.
SA D I M GI PL T A E L C -O H N AP L Y TE R S
• Joining local clubs and groups • Participating in clean-up or environmental activities • Supporting local events and fundraisers • Advocating for change • Attending community meetings • Volunteering • Helping neighbours and community members Description
Action
a. Giving your time and skills freely without payment to help others, such as assisting at events or supporting people in need
b. Joining groups with shared interests like sports, hobbies or culture to develop talents and make friends
c. Participating in events that help keep the environment clean and green, such as tree planting or clean-ups
d. Going to meetings where locals discuss community issues and share their opinions to help leaders make decisions
e. Offering simple kindness and support to neighbours, like helping with shopping or welcoming new families
f. Attending or helping organise fairs, markets or fundraisers that bring people together and support causes
g. Speaking up or taking action to improve community issues by organising campaigns or contacting officials
Choose the correct answers for the multiple-choice questions based on the two case studies. Write the correct answers as statements in your workbook. 2.
What is the main goal of Clean Up Australia Day?
A. To host sports events B. To reduce pollution and raise awareness about waste C. To build new parks D. To promote tourism
3.
When is Clean Up Australia Day usually held? A. Early winter B. Early autumn C. Mid-summer D. Late spring
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4.
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What specific area does the Mudcrabs group focus on cleaning? A. Sydney Harbour B. Cooks River C. Bondi Beach D. Blue Mountains
5.
Which of the following is not a way the Mudcrabs group involves the community?
SA D I M GI PL T A E L C -O H N AP L Y TE R S
A. Organising clean-up events B. Working with schools C. Holding workshops and talks D. Building new shopping centres
6.
What tools does the Mudcrabs group provide to participants during clean-up events? A. Paintbrushes and canvases B. Gardening tools and seeds C. Gloves and rubbish pickers D. Sports equipment
7.
How do the Mudcrabs group use social media?
A. To share recipes B. To announce upcoming clean-ups and give pollution reduction tips C. To sell merchandise D. To organise music festivals
Thinking, researching and communicating 1.
Discuss the reasons that you think motivate individuals to participate in volunteer clean-up events.
2.
Explain how small actions by community members can lead to larger environmental changes.
3.
Do you think local businesses and councils should support events like Clean Up Australia Day? If so, outline how they could be involved. Justify your answer.
4.
Write an extended response on the following.
Discuss how your community can work together to keep the environment clean. Use ideas from what you have learned about Clean Up Australia Day and the Mudcrabs group. Remember to:
• use simple and clear sentences • give examples to explain your ideas • try to show why working as a team is important.
Points to include in your answer:
• why it is important for people in the community to help clean up parks, rivers or streets • how different groups (families, schools, local businesses and councils) can join the effort • the benefits the community and environment get when people work together • any ideas you have to encourage more people to join clean-up events.
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11.8
Skills focus: how do I research my local council? Success criteria
In this lesson, you will carry out research to learn about the important role played by local councils in Australia.
❏ I can find and use a range of information sources to investigate the role of local councils. ❏ I can use suitable terminology to communicate their important role in the community.
SA D I M GI PL T A E L C -O H N AP L Y TE R S
Learning intention
Starter activity
Local councils offer a starting point for anyone who wants to be more involved in politics and their local community. 1.
Do you know the name of your local council and where they meet?
2.
What services do they offer?
3.
Are these services for free?
4.
Compare your knowledge with another student.
➜
Figure 11.8.1 Sydney Town Hall is used as the offices of the Council of the City of Sydney
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Local councils are important in Australia because they’re the level of government closest to local communities. They provide services such as roads, waste collection, parks, libraries and planning. Councils also help protect the local environment, support community health and assist in emergencies. Their work ensures that daily services run smoothly, from building approvals to registering pets, helping communities stay safe and well supported.
Your task
SA D I M GI PL T A E L C -O H N AP L Y TE R S
In this lesson, you will show your research skills by investigating local councils and your own local council. You are to put together an information file on the role played by local government in Australia, and specifically your own local area. Use websites (such as your local council’s official site, the Australian Local Government Association website or government portals) to answer the following.
1. What is a local council? Describe what a local council is and its role in the community. 2. What are the main responsibilities of local councils? List at least five key services or responsibilities managed by local councils. 3. Who runs a local council? Explain the structure: who are the councillors, mayor and other key roles? 4. How do local councils affect your daily life? Reflect on how local councils impact you and your family’s everyday activities. What would you do if these things were not available or maintained? For example: garbage bins collected weekly by the council’s waste service parks and playgrounds where you play footpaths and safe crossings on your way to school local libraries where you borrow books or attend programs local parking rules and public transport links.
• • • • •
You can interview family members, friends or neighbours to gather more insights.
5. Research your local council. Identify your local council: use your home address or suburb to find the correct local council at the Australian Local Government Directory or your state's local government website. Location and contact: find the council’s office address, phone number and website. Current initiatives: look for recent news articles, newsletters or announcements on the council’s website about projects such as community events, infrastructure upgrades, environmental initiatives or social programs. Projects might include expanding bike paths, renovating a community centre or launching a recycling education program. Describe this initiative with details on what it is, where it will be and who it will affect.
• • •
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6. Take it further by adding one of the following options. Mock interview: prepare and write down three questions you would ask a local councillor or council staff. Community map: draw or create a list or map of facilities your local council provides, such as parks, libraries and waste centres. Include at least five locations and a short description for each. Council meeting: watch or read the minutes of a recent council meeting (check your local council’s website). Write a summary of one key decision or topic discussed.
•
SA D I M GI PL T A E L C -O H N AP L Y TE R S
•
•
➜
Figure 11.8.2 Choose additional research steps and a presentation format that suits your skills and interest.
7. Present your findings. Presenting your research clearly will help others understand the role of local councils. Choose a format that suits your skills and interests. Poster/infographic: use images, diagrams and text to highlight key points. PowerPoint/slides: create a slide show with headings, dot points and pictures. Report/booklet: write a detailed explanation incorporating your research and reflections. Video/presentation: record a brief video presentation or give a live talk to your class, explaining what you’ve learned.
• • • •
Review 11.8 Online quiz
Knowledge and understanding
Thinking, researching and communicating
Students can access sample responses and results online
Teachers can go online to assign questions, view results, reports and more!
Knowledge and understanding 1.
Define a local council and its main purpose in the community.
2.
Identify three services your local council provides that affect your daily life.
3.
Identify and describe one of the people responsible for making decisions in a local council.
4.
Explain why it is important for councils to maintain infrastructure such as roads, footpaths and parks.
Thinking, researching and communicating 1.
When researching your local council, what types of information sources were most reliable and why?
2.
Choose one current initiative by your local council. Analyse how this project might benefit different groups in your community.
3.
If you could recommend one improvement to your local council’s services, what would it be? Evaluate the evidence from your research that supports this recommendation.
4.
Imagine you are explaining the role of local councils to someone new to Australia. What three points would you emphasise, and why are these the most important? Digital-only chapters • Cambridge University Press & Assessment © Khair, et al 2026 • 978-1-009-78780-2 • (03) 8671 1400
11.9 What are the benefits of community involvement and how can young people be more involved?
11.9
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What are the benefits of community involvement and how can young people be more involved? Success criteria
In this lesson, you will learn about how young people can become involved in the community and the benefits from being an active participant.
❏ I can outline how young people can become involved in the community and the benefits from being an active participant.
SA D I M GI PL T A E L C -O H N AP L Y TE R S
Learning intention
Starter activity
Throughout this topic, you have learned about issues that affect Australians at different levels. 1.
Have any of the issues caught your interest?
2.
Do you want to be involved in the solution?
3.
How would you go about doing this?
4.
What benefits would be gained from your involvement? ➜
Figure 11.9.1 There are many ways you can give back to your local community, and many ways in turn that people can give back to you.
Benefits of active community engagement
As already seen in this topic, being an active participant in your community can take different forms and they all have positive outcomes for both the community and the individual. Below is a summary of the benefits that you could see by being an active member of your community.
Creates positive change
When you get involved in your community, you help make it better for everyone. This could be speaking up for safer streets, helping clean parks or volunteering at places like shelters. Your actions can lead to real improvements, such as the following.
• Better services: your voice can help local leaders improve things like buses, • • •
hospitals or safety in your area. Cleaner and safer places: helping keep your environment clean and speaking up for safety makes your community nicer and safer to live in. Stronger support: by volunteering, you help people who need it and build a caring community. More awareness: you can help others learn about important issues like homelessness or mental health so we can find better solutions together.
When people work together like this, it makes the community fairer and stronger now andDigital-only in the future. chapters • Cambridge University Press & Assessment © Khair, et al 2026 • 978-1-009-78780-2 • (03) 8671 1400
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Builds connections Taking part in community activities helps you meet many different people. These might be new friends, neighbours, teachers or leaders. Benefits of these connections include the following.
• Help you feel like you belong: being part of a group makes you feel accepted and •
SA D I M GI PL T A E L C -O H N AP L Y TE R S
•
less lonely. Create a support network: friends and mentors you meet can support you when you need help or advice. Teach teamwork: working with others helps you learn about different opinions and cultures. Build lasting friendships: these relationships can continue long after the activity ends and be fun and helpful throughout your life.
•
Being connected with others in this way makes life happier and more enjoyable.
Develops skills
Joining community groups helps you learn skills that are useful in life and work.
• Teamwork: working with others teaches you how to cooperate and solve • • •
problems together. Leadership: taking charge of tasks or events teaches you how to make decisions and motivate people. Communication: you get better at explaining your ideas clearly and listening to others. Problem-solving: when things don’t go as planned, you learn to think creatively and adapt.
These skills increase your confidence and help you in school, work and personal situations.
Improves wellbeing
Helping in your community can also make you feel better emotionally and physically.
• Purpose and happiness: doing good things for others gives you a sense of • •
meaning and makes you feel proud. Less stress: being around people and feeling included can make you feel less worried or lonely. Healthier habits: activities like volunteering often get you moving and outside, which is good for your health.
Taking part in your community helps you feel happier, healthier and more confident.
Organisations that involve young people
If you do want to be more involved in your community, it can be in a small way or a large way, depending on factors such as how much time you have. Young people can join single events like Clean Up Australia Day or take part in ongoing projects such as the Cooks River Mudcrabs group.
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Active participation can even lead to an elected parliamentary position, as in the case of Charlotte Walker, who started off running environmental projects in her school.
Figure 11.9.2 Giving back to the community can provide a sense of wellbeing. ➜
If you are interested, organisations such as SEEK Volunteer and GoVolunteer list a range of volunteering opportunities. However, it is always important to do your research and discuss it with family before you sign up to anything.
SA D I M GI PL T A E L C -O H N AP L Y TE R S
A recognised way to become an active participant is the Duke of Edinburgh's International Award (Duke of Ed), which encourages young people to participate in volunteering as part of its program. It encourages participants to carry out local volunteering opportunities, including assisting at community centres, environmental groups, charities, aged care facilities, libraries, sports clubs or local events. Another organisation that has strong credentials and is run by young people is United Nations Youth (UN Youth) Australia. Volunteering is essential to UN Youth Australia’s success. It empowers young people not only as program participants but also as leaders and organisers who build their skills while contributing to a larger cause. This culture of volunteering sustains the organisation and drives its mission to inspire and educate future global leaders.
Review 11.9
Online quiz
Knowledge and understanding
Thinking, researching and communicating
Students can access sample responses and results online
Teachers can go online to assign questions, view results, reports and more!
Knowledge and understanding 1.
Outline how individual actions contribute to improving services and safety in the community.
2.
Identify some examples of how volunteering can create stronger support networks in a community.
3.
Explain why raising awareness about social issues is important for community development.
4.
Outline how participating in community activities helps people feel a stronger sense of belonging.
5.
Identify the skills that can be gained from volunteering in the local environment.
6.
Explain how the skills developed through community engagement help in other areas of life.
7.
Discuss, with examples, some ways young people can get involved in community volunteering, both short-term and long-term.
8.
Summarise the challenges that organisations might face in recruiting and retaining volunteers.
Thinking, researching and communicating 1.
Are young people an asset or a liability to community organisations? Assess how the unique skills, perspectives and energy of young volunteers influence the success of community projects, and what challenges they might face in fulfilling their roles effectively. Write an extended response that could be included in an online newspaper. Download the worksheet from the Interactive Textbook for a detailed scaffold and some points to consider when you’re writing.
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Download articlewriting scaffold
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Investigation: organising a local campaign against graffiti Success criteria
In this lesson, you will explore the issue of graffiti and its impact on the local neighbourhood. Additionally, you will investigate strategies to help reduce this problem.
❏ I can create a well-researched and detailed plan for a community campaign focused on reducing and preventing graffiti vandalism in the local area.
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Learning intention
The topic: being active in the local community
In this topic, you have explored different problems that affect the community and ways to address them. In this task, you will have the opportunity to study a community issue more closely and find out how actions taken by people in the local area can help reduce or solve the problem.
The task
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Figure 11.10.1 Is this street art or graffiti? Many Your task is to investigate the incidence of people call it vandalism. graffiti in the local community and ways to reduce it. Graffiti is writing or drawings scribbled, scratched or sprayed illicitly on walls or other surfaces in public places. While some graffiti may be considered art or self-expression, illegal graffiti often involves vandalism that can damage property and negatively impact neighbourhood perceptions of safety, aesthetics and community pride.
The process
Find out about graffiti in your community
Start by learning how much graffiti there is in your local area. You can do this by asking neighbours, school friends and local shop owners if they have seen graffiti recently.
• Check if your local council or community centre has reports or information about • •
graffiti problems. Look at places where graffiti happens a lot, such as walls, parks, bus stops or train stations. Notice if it happens more at certain times, like weekends or night-time. Also, find out if there are any groups or programs already trying to stop graffiti in your area.
Understand the problem better
Once you have collected information, try to see if there are patterns. For example, does graffiti mostly occur in certain areas or on specific types of buildings? Think about why people might be putting graffiti there. Are they trying to express something, or is it just vandalism? Digital-only chapters • Cambridge University Press & Assessment © Khair, et al 2026 • 978-1-009-78780-2 • (03) 8671 1400
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Look at how the community currently deals with graffiti. Do they clean it up quickly? Are there any punishments or rules in place? Are these methods working well or not?
Talk to people in the community It’s important to hear different views. You can interview local residents, business owners, teachers, young people and police officers to understand how they feel about graffiti.
• Ask questions like the following. How does graffiti affect you or your business? What
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• •
do you think causes it? What do you think should be done? Collect different opinions to get a full picture of the problem and ideas for solutions. Collect pictures, interviews, quotes and other information that can be included in your final report.
Make ideas to reduce graffiti
Using what you have learned, think of helpful ways to reduce graffiti. Ideas could include:
• quickly cleaning or painting over graffiti to discourage more graffiti • creating legal art spaces where people can paint without damaging property • running education programs in schools to teach young people about respecting property • organising community groups to watch for graffiti and report it • using better lighting or security cameras in areas where graffiti happens a lot. Write a detailed plan
Put all your information and ideas together in a report.
• Start by explaining what graffiti is and why it is a problem in your community. • Share what you found out about where and when graffiti happens, and how people • • •
feel about it. List the ideas you have for stopping or reducing graffiti. Make a step-by-step plan that says what actions should be taken, who will do them (e.g. the local council, community groups, schools), when they should be done and what resources or support might be needed (e.g. money for paint, volunteers). Make sure your plan is clear and easy to understand so it can help the community work together to solve the problem.
The deliverable
You will create a five-minute presentation that could be given at a community meeting called “Graffiti in our community: how to reduce it”. This presentation will include the following.
• Introduction: what graffiti is and why it matters to the community. • Current graffiti situation: information about how much graffiti is happening, common • • • •
places where it appears, and any times it happens more often. Community opinions: what different people think about graffiti and how it affects them. Ideas for solutions: different ways to reduce and stop graffiti, based on your research and talks with the community. Action plan: clear steps for the community to follow, who will help, when each step should happen and what resources are needed. Include pictures, interviews and quotes where they will have impact.
This report will help your local community understand the problem better and work together to make the area cleaner and safer. Digital-only chapters • Cambridge University Press & Assessment © Khair, et al 2026 • 978-1-009-78780-2 • (03) 8671 1400
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Chapter 11 Political and community involvement
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Chapter review Access the Interactive Textbook for a range of digital tools to help you review this chapter and build confidence.
• Auto-marked questions for fast feedback and fun practice • Self-assessment tools to track your progress, review answers (if enabled
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by the teacher), and flag questions for extra help • Downloadable worksheets for class or homework revision
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Summary
Summary notes
What have you learned about political and community involvement? Copy the table and fill it out by outlining your understanding. Aim for two points per topic. Topic
What I have learned
Governments and communities Influencing political process
Eligibility requirements for public office Misconduct of elected representatives Community participation
Young people’s community involvement
Visible thinking routine Connect, extend, challenge
This exercise in visible thinking asks you to think about how the concepts in this chapter have expanded your understanding of how political and community involvement works.
Using the question prompts, write a paragraph explaining what you previously knew about the topic and connecting what you now understand about the topic to your own experiences. 1.
Connect: how does what you learned in this chapter connect to what you already knew about political and community involvement?
2.
Extend: what new ideas have extended or deepened your thinking?
3.
Challenge: what is still challenging or confusing? What questions do you now have?
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Questions Scorcher quiz Access a fast, fun, competitive quiz that puts your understanding to the test.
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Short-answer questions 1.
Define what is meant by an interest group.
2.
Define the term volunteering.
3.
List three services usually provided by local councils.
4.
Recall two national-level concerns managed by the federal government.
5.
List two criteria you must meet to run in a local council election.
6.
Describe two responsibilities of a state Member of Parliament.
7.
Identify two consequences an elected official will face for misconduct.
8.
List which bodies can investigate wrongdoing by federal parliament members.
9.
Summarise how community meetings can give residents a voice.
10.
Identify two benefits a person might enjoy from community engagement.
11.
Summarise the difference between real issues and sensationalism.
12.
Outline three ways individuals or groups can influence political decisions.
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Figure 11.11.1 A sight synonymous with Australian democracy is the sausage sizzle, available outside many polling booths around Australia.
Teachers, access the Online Teaching Suite for digital resources and tools that support review, assessment and reporting, including:
• student and class activity reports • a test generator to create custom assessments • built-in feedback tools • editable downloadable support material • a downloadable and printable “Writing focus” workbook for this chapter.
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Chapter 11 Political and community involvement
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Download single paragraph model
Writing focus The following activities offer ways to demonstrate your understanding of the chapter and allow you to continue to practise your writing skills.
Answering questions in paragraphs You can use this as a model when writing your own answers to the questions that follow.
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Question: Explain the importance and benefits of community participation, especially for young people. Model answer:
Topic sentence: the first sentence of the paragraph; directly answers the question Elaborate: extra detail, reasoning, causes, consequences, links between ideas Linking sentence: reconnects to the topic sentence using the language of the question
Community participation is important because it allows individuals, including young people, to contribute to positive change and support their local area. Participation can include volunteering, joining organisations or contributing to initiatives that respond to local issues. These actions help to strengthen community connections, develop personal skills and encourage active citizenship. We can see this when young people volunteer at events or work with local groups, supporting both the community needs and individual personal development. For example, joining a youth-led project can help young people make a real impact while learning teamwork and leadership skills. Participating in the community has benefits for both individuals and the wider community by encouraging active involvement and meaningful contributions.
Explain: clarify, define and describe
Evidence: specific, relevant evidence to support arguments
Examples: provide credibility and illustrate the argument
Structured-response questions 1.
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Extended-response question 1.
Download extendedresponse worksheet
Discuss how local, state and federal governments each address different issues that affect individuals and communities. Provide examples in your answer. Explain the various ways individuals and groups can influence political decisions. Which method do you think is the most effective and why? Evaluate the effectiveness of different political engagement methods such as voting and protesting. Outline the eligibility requirements someone must meet to stand for public office. Explain why it is important to have these rules in place. Summarise the main roles and responsibilities of elected representatives and describe how they contribute to solving community and national issues.
Discuss the ways of addressing community issues and influencing political decisions. In your response, evaluate various methods of political participation, the importance of elected representatives, and the benefits of community involvement, especially for young people. Download the worksheet from the Interactive Textbook for an in-depth scaffold and some points to consider when you’re writing.
Digital-only chapters • Cambridge University Press & Assessment © Khair, et al 2026 • 978-1-009-78780-2 • (03) 8671 1400