The Australian position in relation to international arbitration has always been complicated by virtue of its federal system of laws which allows parties to choose to resolve their dispute “under arbitral laws other than in accordance with the internationally accepted Model Law on International Commercial Arbitration adopted by the United Nations Commission on International Trade Law (UNCITRAL).” This creates confusion and not insignificant legal difficulties concerning the interaction of different laws. Additionally, the finality sought by parties to an international arbitration is not always certain by virtue of the appeal/review powers contained in the State and Territory Commercial Arbitration Acts.  As well, there has been in recent years a general concern about the trends surrounding the nature of international arbitration with the widespread view that arbitration has become too litigious with proceedings increasingly resembling those of a court. Such complications and trends had led many to believe that Australia was unlikely to establish itself as a major player in the field of international arbitrations. In light of a new Bill currently before Parliament, all of this could now change.

In an effort to counter such trends, overcome the difficulties with Australia's federal system and in a bid to promote Australia as a centre for international arbitration and dispute resolution, the International Arbitration Amendment Bill 2009 was introduced into Parliament on 25 November 2009, following the Commonwealth Government's year long review of international commercial arbitration in Australia.

via Legal update: Australia’s position as an International arbitration centre to be enhanced – Deacons.