Environmental Governance and Aviation Finance

The provided document is a compilation of research papers and articles related to environmental governance and aviation finance. It includes studies on public orchestration, social networks, and transnational environmental governance in the aviation industry. The document also covers topics such as airline finance, infrastructure debt fund policy frameworks, and investment decision-making under uncertainty. Furthermore, it touches upon the analysis of irreversibility, uncertainty, and dynamic technical inefficiency on investment decisions in specific sectors. This comprehensive collection is likely intended for students or researchers looking to understand the complex relationships between environmental governance, aviation finance, and various sectors.

Running head: PROPERTY ECONOMICS AND FINANCE
Property Economics and Finance
University Name
Student Name
Authors’ Note

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Executive Summary
The current study elucidates in detail about financial and taxation environment in
Australia that can be utilized by financier client to uphold decisions of investment.
Additionally, this study focuses on ability of identifying, understanding, summarising and
analysing diverse taxation and finance market along with the identified risk issues.
Furthermore, the study at hand has the intent to present analytical understanding as regards
environment that can assist financiers to endorse investment decisions. Thus, this study
concentrates on monitoring and detection of risks (both financial along with taxation concern)
related to the Western Sydney Airport and present suggestions for dealing with the identified
issues.

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Introduction
The current study intends to analytically examine the environment finance environment
and the taxation environment for analyzing the atmosphere in which the Western Sydney
Airport will thrive. The study at hand identifies diverse risks that might affect investment
decisions of financiers in Western Sydney Airport with special consideration to the financial
as well as taxation risks attached to the environment of the business. Moving further, this
study presents a risk framework that can help in systematic appropriate detection of risk that
can be addressed adequately. Thereafter, the study presents the identified risk and proposes
suggestions for averting the identified risks.
The given case study under deliberation helps in comprehending background of the
establishment of the Western Sydney Airport. The case study reads about the opportunities of
job creation and growth of the economy in particularly Western Sydney. As such, this also
indicates towards increase in volume and states presence of around 82 million passenger
every year (Galariotis et al., 2016). Also, the case study explains about present infrastructure
and taxation for developing the process of planning and preparing work for Western Airport
Project.
Description of finance environment in Sydney, NSW, Australia
The nation Australia provides a powerful combination of solid economic performance, a
diversified economy along with low risk environment for undertaking business operations. As
per reports, it can be said that the nation Australia is entering 26 years of persistent economic
growth; nation is the 13th largest economy in the entire world and 5th largest economy among
the Asian economies (Sigmund et al., 2015). Entering 26 years of uninterrupted economic
growth along with AAA sovereign risk profile, Australia is well positioned to continue to
prosper. Regardless of the fact that this nation is home to only 0.3% of the entire world

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population, GDP accounts of Australia accounts for approximately 1.7% of the world’s
economy.
Description of taxation environment in Sydney, NSW, Australia
There are different forms of taxation scheme prevalent in Australia. In particular, both
individuals as well as corporations operating in Australia might be required to disburse taxes
or else charge to different government levels namely local, state along with federal
government. Jeucken & Bouma (2017) suggests that taxes are collected to make payments for
diverse public services together with transfer payments.
J. Liapis et al., (2014) identifies that income taxes are the most important taxation form in
the nation Australia, and amassed by the federal government by means of the Australian
Taxation Office. Again, Australian GST revenue can be acquired by the Federal Government
and then disbursed to specific states under a distribution formula ascertained by the
Commonwealth Grants Commission. According to reports of taxation, Australia maintains a
considerably lower burden of taxation in comparison to other wealthy, developed countries.
This is necessarily 27.8% of the nation’s GDP in the year 2018. As indicated by (), taxes in
Australia are primarily administered and acquired by the Australian Taxation Office and in
certain cases revenue offices of the state government. As such, businesses operating in
Australia can save money by disbursing the appropriate amount on time and acquiring benefit
of any kind of tax concessions. As rightly put forward by Aharoni (2015), the important taxes
that affect businesses are Company (Income) Tax, Goods and Service Tax (GST) as well as
Capital Gains Tax (CGT). Additionally, businesses can elect to make disbursements every
month, quarter or year.
Company Tax: An Australian resident corporation is necessarily subject to company tax,
at a specific rate determined by the Australian Government. Again, a non-resident

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corporation is chiefly taxed on Australian source earning at the same rate as a resident
corporation (Levy, 2015). Taxable earning along with tax rate might possibly differ under
limited circumstances, namely industry or business framework.
Capital Gains Tax: Capital Gains Tax (CGT) implements on any capital gain acquired
by means of disposal of assets. In essence, it is paid as a particular part or section of income
tax. Essentially, foreign business units might be subject to CGT on particular assets acquired
and utilized in undertaking business actions in particularly Australia (Kumar & Goyal, 2015).
Businesses also have the need to maintain records upon acquiring assets that again might be
subject to CGT in the upcoming period.
Goods and Services Tax (GST): As correctly mentioned by Gaziel Yablowitz & Raban
(2016), the Goods and Services Tax (GST) is necessarily a national, broad based consumer
tax on majority of goods and services marketed else wise consumed in Australia. Majority of
businesses have the need to register for GST with specifically the Australian Taxation Office.
Particularly, businesses that have made payments for various business supplies counting GST
are entitled to claim an equal input tax credit. However, there are also certain businesses that
are eligible for concessions of GST.
Payroll Tax: As rightly put forward by Lambarraa et al., (2015), payroll tax can be
regarded as a state tax levied on the wages that is paid to workers of a corporation. As such, it
is enumerated on the specific amount of wages that is paid every month and has the need to
be disbursed in case if the Australian wages exceed the threshold of exemption in the
pertinent state or else territory.
Other taxes: In particular, there might be taxes of the Australian Government and
Territory Government that are pertinent to specific business actions. In essence, this might
possibly include certain items namely land tax along with fringe benefits tax. Business along

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with financiers assesses these types of taxes for the purpose of ascertainment whether they
are applicable in a specific case. O’Callaghan & Vivoda (2017) suggests that there is a
variety of federal, state along with local government taxes and rates can apply, based on size
along with location of the business.
Analysis of implication of tax on investment decision of the case project development
There are several tax incentives that can help financiers to invest in the project. Different tax
incentives that can affect the current project re as mentioned below:
- Research and Development Incentive of tax
Program of incentive for research and development is available in Australia. This can help in
fostering the process of establishment of the project under consideration (Lambarraa et al.,
2015)
-Tax incentive for early stage innovation company (ESIC)
Financiers of Australian ESIC also have accessibility to specific tax incentives. A non-
refundable carryforward tax offset of the amount that is equal to 20% is disbursed for new
issued equity interests particularly in ESIC. Again, capital gains tax (CGT) concessions are
available for various interest in an ESIC of Australia (Lambarraa et al., 2015).
-Concessions for Investment Manager Regime (IMR)
IMR delivers different non-residents with particularly exemptions of Australian income tax
for returns.
-Various other incentives
Diverse other incentives are also particularly available for business.

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For the purpose of tax purposes, a proposed project in Australia has the need to satisfy
different tests. These tests include the shares (barring fixed preference shares) for the purpose
of tax has the need to be quoted on the stock exchange list of Australia else wise abroad
during the end of a financial year. In addition to this, at particularly no time, 20 or less than
20 individuals during specifically the tax year can receive or get entitled to accept 75% or
more of dividends disbursed. The formalities of tax purpose are necessary for establishing the
project.
Identification of risk factors upon investing in the case study project development
(as regards finance and taxation environment
The financier can take into consideration certain risk factors and the ways to address the
same before moving forward with the plan of investment. Diverse risk factors that can be
taken into consideration before undertaking the decision of investment include
-It is important to bear in mind three different components of investment. Investment
components comprise of risk levels, return as well as liquidity. Essentially, it is almost
impossible to have low level of risk, higher rate of return and higher levels of liquidity all
within any one particular area of investment (Kauffman et al., 2015). It is also important to
take into account different types of risk and factors of risk can be considered to be major risk.
In this case as well it is important to take into account different types of risk namely the
interest rate risk, whilst others might encounter credit risk or else some other macro-
economic risk. In addition to this, it is important to recognize the amount that needs to be
invested both during the short term and the long term.
Financial Risks

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Risk can be said to be inherent in case study project development and appropriate risk
management can be considered to be an important aspect of operating a successful business.
Management of the company has varying control levels with regard to particularly risk. There
are certain risks that can be directly handled and other risks are to large extent beyond control
of management of company Western Sydney Airport. There are times when a corporation can
do is to make attempts to anticipate probable risks, evaluate probable influence on business of
the corporation and remain prepared with a scheme to react to different adverse incidents
(Henriksen & Ponte, 2017). In addition to this, there are several ways in which financial risks
can be classified into different classes namely market risk, liquidity risk, operational risk as
well as credit risk.
Market Risk:
Market risk refers to risk of altering conditions in the market place in which a corporation
and in this specific case Western Sydney Airport competes for business. An example of the
market risk is the escalating influences of various factors namely increasingly intricate
markets, transient workforce, and disparate regulatory structure, inexorable march of new and
advanced technology along with geopolitical shifts (Baker et al., 2015). Generally, the long-
standing economic struggles of majority of the shipping lines have necessarily made the
maritime segment more sensitive to specific risk than other transport modes. Thus, Western
Sydney Airport is also expected to suffer from the shipping lines that might perhaps make the
segment more sensitive to this particular risk.
Also, providers of maritime transport conceive cyber threats and breach of data
confidentiality to be the apex risks. However, dissenters from this specific opinion argue that
fear of cyber risk get fuelled by hysterical media environment in which discussion is mainly
dominated by various hacking stories, bad-intentioned insiders and recommendations that the

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critical systems of majority of top corporations have already been compromised
(Papatheodorou, 2016). Nonetheless, this fact cannot be denied that skill set of actors of
digital threat are escalating just as augmented reliance of the company Western Sydney
Airport operating in the transport industry on third parties is multiplying the probable entry
points. Evidently, an increasingly associated world calls for community response to different
risks.
Baker et al., (2016) suggests that transportation segment maintains movement of the
global economy. In this case, any kind of operational disruption has wider consequences for
community can make administration of the related risks a priority and have the need to
transcend boundaries of the specific sector. Intimate associations of the transportation
segment with the worldwide economy imply that the risks encountered by the industry are
primarily influenced by various factors and these facets interact with one another in intricate
manner that are difficult to comprehend. The findings of Transportation Risk Index Report
replicate the fact that there is a fluid risk setting that is increasingly intricate and at the same
time interconnected (Vasigh et al., 2014). Proactive mitigation stratagems are necessary for
the purpose of maintaining central corporate flexibility, preparedness along with reaction that
is critical to performance of the corporation.
Global commerce is primarily undertaken in a digitized world in which automation as
well as internet of things is altering fast nearly in every segment of the economy. Whilst
some transportation modes have been slow to assume specific digital tools, the entire
engagement pace is speedily escalating. The company also has the need to embrace the
digital revolution as the digital technology is becoming so pervasive that numerous
businesses underestimate the degree and extent to which they are reliant on the same. Even
risk savvy corporations struggle to map chain of consequences that inform about effectual

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mitigation strategies. Scott & Gössling (2015) suggest that while commercial benefits that
are inherent in technological advances are too numerous to list, so are the vulnerabilities
along with risks. The balance is said to thrive. The company Western Sydney Airport
functioning in the transportation industry
Credit Risk:
Credit risk can be considered to be business risk that can be incurred by extending credit
to particularly customers of the airline corporation Western Sydney Airport. This can indicate
towards credit risk of the company Western Sydney Airport with specifically customers of
the suppliers owing to the probability that a customer might default on disbursements. The
company Western Sydney Airport might have the need to handle diverse credit obligations by
making certain that it will always have adequate flow of cash to disburse bills for accounts
payable in a timely manner (Baker et al., 2015). Otherwise, suppliers might either stop
extending credit to the corporation or else even stop undertaking business with the company
altogether.
Liquidity Risk:
The risk of liquidity comprises of asset liquidity and functional funding of liquidity risk
of the airline corporation named Western Sydney Airport. Again, asset liquidity indicates
towards comparative simplicity with which a corporation Western Sydney Airport can alter
the assets into cash and there is need for sudden, considerable requirement for supplementary
flow of cash. Again, operational funding liquidity is a reference to regular flow of cash.
Operational funding liquidity indicates towards general else wise seasonal downturns in
company’s revenue (Gillen & Morrison, 2015). This can refer to considerable risk in case if
the corporation Western Sydney Airport suddenly finds itself without adequate cash on hand
to disburse basic expenditure obligatory to continue to pursue business success. Essentially,

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this is the reason behind management of flow of cash can be considered to be critical to
success of the business and financiers view at dimensions namely free flow of cash at the
time of evaluating firms as an equity investment (Abbott, 2018).

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Operational Risk:
As rightly indicated by Abbott (2018), operational risk indicates towards diverse risk that
can stem from ordinary activities of the airline corporation Western Sydney Airport.
Operational risk comprises of lawsuits, risks of fraud, personnel problems and business
model risk that is necessarily the risk that a company’s marketing model and plans of growth
might prove to be inaccurate or else inadequate.
Risks related to taxation environment
There is absence of documented tax stratagem, tax policies and procedures along with tax
procedures. In addition to this, there is incoherence of quality of tax data across diverse
jurisdictions, disjointed approach to deal with different authorities of tax across different
operating nations. In addition to this, challenges associated to taxation environment include
restricted visibility of pending compliance tasks along with tax audits, inadequacy of ordinary
internal tax controls approach across different entities along with jurisdictions (Abbott 2018).
Furthermore, there is limited alignment between particularly tax and specifically the business
regarding defined objectives and risk appetite. Also, there is lack of assimilation between tax
approach to management of risk and approach of overall business. Additionally, there are
also other challenges owing to taxation environment and business operations.
Main challenges associated to taxation environment
-There is no one size fits all tactic for updating management of risk of taxation. Again,
there are varieties of dimensions that satisfy practical necessities. Furthermore, there are
several different jurisdictions, business entities along with platforms together with their
respective regional necessities. Therefore, the company Western Sydney Airport might face
the challenge of obtaining an appropriate approach for updating tax risk management. Also,

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the company might perhaps encounter the threat of addressing various dimensions so that it
satisfies certain practical necessities (Xiang & Worthington, 2017). Furthermore, the Western
Sydney Airport might have the requirement to implement diverse jurisdictions, business
entities, business platforms and their respective regional necessities.
-Management of the firm Western Sydney Airport has the need to address from a variety
of metrics that can help in meeting the practical necessities. Implementation of structured
phased tactics can take into consideration all requisite dimensions (for instance, data as well
as processes) (Duval, 2016). During the first phase, the aim is to evaluate and articulate the
present gaps and design solution initiatives for the purpose of addressing the same.
-Identifying initiatives can help in moving function of tax to the next level of
performance. The current section also focuses on current tax system and assesses the way a
proper tax system can raise the revenue required for finance government actions without
imposing unnecessary costs on the economy. Furthermore, tax reform is about the way
revenue is essentially raised and not about the amount. The overall tax burden is
comparatively low in comparison to other developed nations (Sweeting, 2017).
- Analysis of fare undertaken by particularly Bureau of Transport and Regional
Economics has not taken into account different taxes on fare of air which Commonwealth
inflicts nor it comprise of charges that airports impose on airlines that in turn can add to
passenger air fares. Again, federal taxes essentially refer to the passenger movement charge
(PMC) normally known as departure tax of particularly $38 on particularly passengers
departing on various international flights. In addition to this, the air passenger ticket normally
levy is also referred to as Ansett and this levied at the rate of $5 for every sector. Again, the
noise of the aircraft is levied at Sydney KSA as well as Adelaide airports (Vasigh et al.,
2014). As such, the board of Airline Representatives of Australia claims and that this

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particular levy can add up to $3.58 to the cost of airline ticket. In this case, the charge for
passenger movement replaced the departure tax that was necessarily introduced to recover the
custom costs, immigration along with quarantine processing at the borders of Australia
together with issue of visa of visitors during the short term period. In this case, the charge
(that is also known as tax) is primarily levied as per the stipulations mentioned under the
directives of the Passenger Movement Charge Act of the year 1978 along with the Passenger
Movement Charge Collection Act of the year 1978 (Vasigh et al., 2014). Nonetheless, the
charge that is necessarily the tax has essentially moved beyond the process of recovery of
cost and is now contributing to consolidated figure for revenue. Evidence provided to
particularly the Senate Legal and Constitutional Committee in the Australian Customs
Service Program reflected the fact that the total amount that was acquired surpassed the
customs costs, specific quarantine service along with immigration by approximately $80
million. As such, the Ansett along with the noise levies are essentially discussed under Air
Passenger Ticket Levy along with Airport Noise Amelioration Programs respectively
(Khandelwal & Khanapuri, 2015). The government of the nation has pronounced stance on
the levy and the government intends to lessen the tax only after exhaustion of different legal
avenues arising from Victorian Supreme Court decree in favor of Ansett administrators.
-As rightly indicated by George (2014), taxation treatment of diverse aircraft assets in
Australia cannot be considered to be consistent with specific aviation segments overseas.
Basically, this forum suggests that the government by means of Australian Taxation Office
operate with the industry to recognize and remove impediments to tax and to develop certain
reasonable approaches to the process of taxation as is necessarily the case with other
segments. Unlike other highly developed aviation nations, taxation system of Australia
delivers virtually little or no incentive for the purpose of updating the general aviation along
with fleet of business aircraft. In particular, this is mainly owing to ATO rulings on the

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effective economic life of aircraft in this nation and this refers to the fact that age of the
general aviation fleet in that particular nation has steadily developed over the last decades.
Advanced aircrafts lead to enhanced safety along with superior environment performance.
Furthermore, the long term financing of CASA (Civil Aviation Safety Authority) by means of
levy of aviation fuel inflicts a considerable and at the same time inequitable burden on the
domestic segment and delivers no incentive for augmented CASA efficacies (Jackson, 2016).
In addition to this, the Forum is also of the view that the government has the need to institute
a specific working group with the industry for the purpose of identifying and averting
impediments of taxation to the aviation segment. In addition to this, this segment also has the
intention to develop working group with industry for the purpose of identifying and removing
impediments of tax to the aviation industry and to manufacture various equitable approaches
to system of taxation, as is presently the case with other segments.
Feasibility of Investment in areas around Western Sydney Airport
Land owners are expected to cashed in from the decision of the government of NSW to
finance the Western Sydney airport. However experts say that the mega windfalls for the land
owners from in and around proposed airport are limited.
Values of vacant lands are observed to have increased by around 30% whilst non-vacant land
is also enhancing at the same rate as per reports presented by researchers. However, there are
critics who are of the view that rate of growth might perhaps not be sustainable (Baker et al.,
2016).
After the announcement of the proposed establishment of the airport, the price of land
jumped heavily. Nevertheless, it is expected to get back to normal level with passage of time.

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However, based on state government’s pronouncement several financiers were banking up
different spaces or land in spite of rezoning different uncertainties. Financial speculations to
purchase rural land despite uncertainties is based on the expectations and hope that land
would get rezoned for various industrial purposes. In this case, various investment decision
techniques can be used for assessing value of the land and feasibility of investment in the
project.
Evaluation and suggestion on project development in a bid to make an investment
decision
Suggestions after consideration of feasibility of investment:
The current report can scrutinize the economic influence of process of development of
Western Sydney Airport for evaluation feasibility of investment decisions. Analysis of
economic benefits on case project development of Western Sydney Airport reveals that
development of a second Sydney Airport can help in generating considerable economic
advantages for the specific region. This can provide significant economic boost to the local
economies of Western Sydney along with the states of particularly New South Wales more
generally. The influences primarily arise from alleviating pending potential constraints in the
Sydney basin and from the productivity and competitiveness gains that this airport would
create. Whilst the industries along with the sub-regions are likely to acquire benefit
significantly with strong linkages to air transport segment, invariably the economic influences
can be dispersed widely (Sweeting, 2017). Essentially, overall scale of economic influences
of the airport is most evident at the time when cumulative advantages are taken into
consideration.

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Fundamentally, in terms of net present value, the influence on the economy of Western
Sydney is approximated to hover around $9.2 billion to $25.6 billion during the period 2020
to 2050. However, the influence on the entire economy of Sydney is estimated to range
between $15.7 billion to $25.6 billion. As such, these influences can be considered to be large
provided that no other activity shall probably occur for the following seven years (Vasigh et
al., 2014). In addition to this, mean supplementary employment during the period 2020-2050
is expected to lie between 12645 and 19982 FTE for particularly Sydney region, taking into
consideration that majority of the supplementary employment shall be generated in the latter
period of the specific modelling period. Nevertheless, the realisation of the identified benefits
and evasion of costs particularly emanating from capacity restraints in the Sydney basin calls
for quick response from policy makers (www2.deloitte.com, 2018).
Financiers can adjust strategies to comprehend the details of the new project and identify
the most promising of those opportunities, handle the risk and curtail all the odds of gaining
the best returns. Essentially, the financiers can analyse projects founded on the flows of cash
that can undertake comparative analysis of the invested cash and the cash to be generated by
the project (Duval, 2016). Financiers can take into consideration incremental flows of cash,
consider flows of cash
Analysis of investment involves determination of appropriate opportunity cost of capital,
usage of flows of cash and the capital cost and to enumerate the pertinent investment criteria.
The viability of the project can be analysed using the schemes of the net present value (NPV),
pay-back period, discounted payback period, average accounting return (AAR), Internal rate
of return (IRR), profitability index (PI) (Sweeting, 2017).
Suggestions after Investor’s consideration of the taxation issues:

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Aviation has played an important role in the Australian economy. Aviation industry
combines the contingent together and links the entire island to chief trading partners.
Together with tourism, aviation supports more than 6% of GDP of Australia as well
as 7.4% of the workforce. In actual fact, this is precisely AUD 75 billion in business
that generates 800,000 employment opportunities. Essentially, there is a lot at stake
and there is need for appropriate policies to get things right. Taxation is something
that is at the top most priority (Galariotis et al., 2016).
The Director General of IATA (International Air Transport Association) has
pronounced the requirement for urgent policy attention to issues regarding taxation to
make certain persistent development of aviation connectivity. The government might
re-evaluate the economic damage caused by the Passenger Movement Charge
(abbreviated as PMC). The PMC was initially formulated to finance various border
agencies of Australia, counting customs and protection of border, quarantine along
with immigration (Sigmund et al., 2015). Previously, it was enhanced to around AUD
55 for every passenger that exceeded the financing cost of the agencies. Essentially, it
is approximated that around AUD 800 million can be collected during the year 2012
and the year 2013. PMC is in actual fact a tax that necessarily adds roughly travel
costs from the nation Australia. In case PMC were removed a boost in the traffic can
be expected to be observed. This would necessarily add roughly AUD 1.7 billion to
the exchequer of Australia and generate roughly 17000 jobs (Pwc.com, 2018). Thus,
the Australian economy can gain more from the removal of the PMC. As per reports
on economic advantages of abolition of PMC, there is critical significance of
thorough cost benefit evaluation for different policy decisions (Jeucken & Bouma,
2017). It can hereby be inferred that the government has the need to re-assess overall
influence of making Australian connectivity more expensive than it is required to be.

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Furthermore, the Western Sydney Airport might have the necessity to put into
practice specific jurisdictions, business entities, business platforms and their relevant
regional necessities. Additionally, for establishment of new airport there is need to
address variety of metrics that can help in meeting the practical requirements.
Execution of ordered phased tactics can take into account all necessary dimensions
(Gaziel Yablowitz & Raban, 2016). Therefore, it can be said that there is need for
analysis as well as articulation of the current gaps and design solution initiatives for
the purpose of addressing the tax issues.
Long term financing of CASA inflicts a substantial and inequitable burden on the
domestic section and delivers no enticement for improved CASA efficacies. In this
regard, the Forum opines that the government has the need to initiate a particular
working group with the trade for the purpose of detecting and averting impediments
of taxation to the aviation division (O’Callaghan & Vivoda, 2017). In actual fact, this
segment also has the intent to expand working group with industry for the purpose of
identifying and removing impediments of tax to the aviation industry and to
manufacture various equitable approaches to system of taxation, as is presently the
case with other segments.
Suggestion after consideration of the financial environment:
Management of Western Sydney Airport can analyze the risks associated to
market under the head of financial risk. The business is anticipated to suffer from
the shipping lines and might perhaps become extremely sensitive to this risk.
Therefore, requisite steps for enhancing the shipping lines can prove to be
effective.

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The management also has the need to handle different credit obligations by
ensuring adequate flow of cash to expend accounts bills (O’Callaghan & Vivoda,
2017).
Flow of cash is also considered to be critical for development of business and
financiers regard free flow of cash at the time of analyzing firms as an equity
investment.
Operational risk that takes in lawsuits, fraud risks, personnel problems and
business model risk that is inevitably the risk that associated to business of the
company (O’Callaghan & Vivoda, 2017). Management of the firm in that case can
consider marketing model as well as operational model of the company
Formulation of a framework for evaluation of finance and taxation environment in
Australia in a bid to handle risk engaging property development or investment project
The process of assessment of risk that can be followed for analysis of finance and
taxation environment in Australia can be presented as below:
Figure: Framework for assessment of risk

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(Source: Kauffman et al., 2015).
The process of assessment of risk include establishment of the context of establishment of
aviation industry, ascertainment of timing, milestone of the identified project, analyzing
composition of the entire team, analyzing the tools, reporting specific incidents and
information criteria. There is need for iterating and improving by means of formulation of
strategy, development of tactics and executing the actions. The selected framework for
identification of risk has the need of continuous communication and consultation. In addition
to this, during the process of evaluation of risk constant monitoring and assessment is also
very necessary. This framework can help potential financiers to understand factors of risk and
the way the same can be addressed. This involves understanding the components of
investment that takes in different risk levels, rate of return as well as liquidity (Scott &
Gössling, 2015). Essentially, it is impossible to have low rate of risk, higher rate of return
along with higher rate of liquidity within the investment. This framework for detection of
risk can also help in identification of risks. Investment in the Western Sydney Airport can
lead to major risks in actual fact that includes specifically credit risk, financial risks, risks
related to taxation regulations of aviation industry on the whole and certain macro-economic
risks.
Conclusion
In conclusion, it can be said that the study at hand can help in gaining comprehensive
understanding regarding the finance as well as taxation environment of Sydney, Australia.
Essentially, this current study critically studies the environment and implements the
environment that is conceptualized. In addition to this, the current study also provides
thorough analysis of the environment with special orientation to the financial as well as

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taxation environment. Critical understanding regarding the environment can also aid
financiers to uphold investment decisions. Furthermore, this study also monitors and detects
the risks (both financial as well as taxation issues) associated to the Western Sydney Airport
and presents recommendations for addressing the identified issues.

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