Australia has a written Constitution. The legal system in Australia is a mixture of common law and statute similar to the legal systems in the United Kingdom, other Commonwealth countries and some European countries. The common law tradition, which applies in Australia, values and expects judicial independence. Decisions of the courts conform with due process and are made in the context of prevailing law. Contractual arrangements are therefore protected by the rule of law and the independence of the judiciary. Both domestic and foreign companies and persons have the same standing before the law.

The Australian government recognises the need for a regulatory framework to keep pace with financial market developments. The Government has just now completed a major reform of Australia’s corporate law, aimed at streamlining regulation while maintaining market integrity and investor protection.