"Commercial arbitration is a multi-billion dollar industry and is becoming the preferred option for solving business disputes because it is quicker, cheaper and less formal than going through the courts," he said.

"The anticipated increase of international arbitrations in Australia will also provide considerable financial benefits to the Australian economy. We congratulate the Attorney General for taking the lead in this long overdue reform agenda."

Changes to the Act, as well as the adoption of a new model law for domestic arbitration, means Australia now has a harmonised system for domestic and international arbitration.

"It will encourage a very significant investment flow for Australia," said Jones.

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"As a venue, from a legal perspective, Australia is as desirable, if not more desirable, than anywhere else in our region."