GCS A GUIDE TO AUSTRALIA

Population: 20,090,437 (Approx - July 2005)

Economy Overview:

Australia has an enviable Western-style capitalist economy, with a per capita GDP on par with the four dominant West European economies. Rising output in the domestic economy, robust business and consumer confidence, and rising exports of raw materials and agricultural products are fueling the economy. Australia's emphasis on reforms, low inflation, and growing ties with China are other key factors behind the economy's strength. The impact of drought, weak foreign demand, and strong import demand pushed the trade deficit up from $8 billion in 2002, to $18 billion in 2003, and to $13 billion in 2004. One other concern is the rapid increase in domestic housing prices, which have raised the prospect that interest rates will need to be raised to prevent a speculative bubble.

1. General Business Practices.

a). The main language is English and this is used in all court proceedings.

b). Australia operates under a metric currency, with the dollar and cent being the primary currency unit.

c). Assignments forwarded should ensure that correspondence is in the English language. Any supportive documentation in another language should be translated into English with such translation sworn before a notary public if court proceedings are likely to be required.

Collections.

A. Background of Industry.

1. An estimate for collections in Australia would be approx. $1 billion, however this figure would vary substantially if one takes into consideration state and federal government debt.

2. Debt collection is handled by both collection agencies and lawyers, referred to as solicitors. Attendance at court to handle a case before the court is usually conducted by a barrister.

B. Licensing Requirements.

A licence is required in all states of Australia and the Northern Territory but not in the Australian Capital Territory. The licence is issued by the respective state governments, and is in most cases referred to as a Commercial Agents licence. To obtain a licence the applicant must have a bond which in New South Wales can be issued by the Institute of Mercantile Agents Ltd, ( Australia's equivalent of the American Collectors Association. ) In other states it may be issued by an approved insurance company and the amount of the bond varies dependent on whether the applicant is an individual, partnership or company incorporated at law.

C. General Procedures.

Collections agencies usually tailor their operating methods to suit the needs of the client, the amount of debt, and the remoteness of the debtor. In most cases a collection agency would institute a recovery by telephoning the debtor, and if unable to obtain satisfaction, then issuing a demand letter or series of letters. A visit could be made to the debtors address to see if the matter can be negotiated and settled. The majority of agencies are computerized and have sophisticated collection systems that ensure prompt follow up to any arrangements made with the debtor. Where an offer is made, the agency will have an arrangement with the client to ensure that they can accept or reject such offers to a certain value. Where large amounts are involved the agency would liaise on a regular basis with the client. In the event that the debt can not be settled amicably, the agency would issue proceedings usually through a solicitor with which the agency has developed a close working relationship.

Dependent on the agency's manner of conducting business, many will maintain a close working control of the file, and conduct the process of issuing the summons, obtaining judgment and enacting the enforcement procedures and the solicitor will only become involved in the event that a defense is lodged