AUSTRALIA has slipped from top spot on a league table of the most attractive places to expand a business, highlighting the urgent need for technological advancements and tax reform.
And the uncertainty over the nation's trade deal with China could be enough to deter companies hoping to set up shop here to cash in on Asia's middle-class bounty, analysts say. 
Australia now sits third on the Global Dynamism Index, a biennial list compiled by consulting group Grant Thornton rating the relative strengths of the world's 60 biggest economies. Categories assessed include operating and financing environments, labour markets, technology and economic growth potential.
Singapore heads the list, primarily for its robust financial regulatory system and 17 per cent company tax rate - Australia's is 30 per cent - while emerging tech-hub Israel comes in second.
Other developed nations have lost ground since 2013, most notably the US, down one spot to 12th. New Zealand, is down nine spots to 13th and mainland China fell 11 spots to 14th. Strife-torn Ukraine is last on the list.
But Grant Thornton head of corporate finance Paul Gooley said Australia remained a great place to do business, especially for companies seeking a foothold in the Asia Pacific.
"We're seeing interest from the US, Canada and Europe," Mr Gooley said. "On the flip side, we're also seeing increased interest from companies in China, looking to invest in Australian businesses, particularly agribusiness to supply to its growing middle class." The Turnbull Government would do well to push on with its reform agenda, he said.
"Despite the country's stable regulatory environment, legislation of the China-Australia Free Trade Agreement is pivotal in ensuring a gateway to doing business with China."Developing a simpler, more efficient tax system (will) ensure we remain competitive on the global stage."