Australia
Few other countries make it easier to start a business than the Land Down Under. And few other countries offer a more coveted lifestyle. Sydney, Melbourne, and Perth, are renowned for their liveability and affordable cost of living. Global talent flocks to Australia and many choose to stay and make it their home. How can your business leverage this favorable dynamic?
At a Glance
There’s no local bank account needed.
Yes, local representation is required.
The standard payroll frequency is Weekly, Fortnightly, Bi-monthly, Monthly.
The employer taxes are 10.5%. Superannuation is on gross salary.
Good to Know
Australia’s strong economy relies heavily on international trade and a supportive political and economic environment for global business. Cultural barriers to trade are minimal. It’s set to become the 12th largest economy in 2023 (IMF) and ranks as the second easiest country to start a business in (the World Bank). Strengths include export values, GDP growth, and inflation rate.
Good governance, open markets, and the rule of law characterize the economy. It has proven resilient against economic shocks, and trade with Asia is notably strong, particularly in minerals, energy, services, and agriculture. Australia recently negotiated new free trade agreements with the UK and is drafting an FTA agreement with the EU.
Australia is a hub for technology-based businesses with a thriving startup ecosystem. Among the more than 2,000 tech companies across various industries, Fintechs are attracting global investments. Demand for energy, minerals, food exports, and other goods and services is expected to be further buoyed as the relationship with China shows signs of improvement.
*Income taxes and sales taxes are federal; payroll taxes and worker compensation insurance are state-based.
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Competition Dynamics
Wages have not kept pace with inflation as demand for skilled labor and industry professionals are at a premium. Some business sectors see intense local competition with established brands wielding strong supplier relationships. In other sectors, foreign investment has reduced competition which may limit potential returns for entering businesses.
Complex Regulations
Regulations and legislation can be complex to navigate. Australia levies a federal Goods and Services Tax (GST) of 10%. However, certain goods and services can be GST-free (zero-rated) or input taxed. Despite the confusing rules, it's important to understand the GST implications. Consult a tax professional or the Australian Taxation Office (ATO) for specific advice.
Tax Laws
Paying taxes is a primary concern for many businesses in Australia. Companies have objected to the superannuation levy, which is increasing from 9% to 12%. Corporate income tax in Australia stands at a flat rate of 30%. Businesses may consult with a tax advisor to ensure compliance with tax regulations and to minimize their tax burden.
Next Steps
Expanding into a new country is incredibly rewarding — and riddled with complexities. Our team of local experts are here to support your Australian operation, every step of the way. With an unparalleled focus on the customer experience, we make the complex simple.
We back up our expert-led managed services and technical consulting with GateWay, a pioneering platform that unifies all your applications and data for cross-border success in a single place, including Payroll, HR, Accounting, Tax, and Statutory Compliance. It’s your one-stop-shop for global growth.
“While local vendors tend to primarily care about their sliver of the business, HSP Group is, as the single provider, fully invested in the success of the entire organization.”
Head of Finance and Operations at a fast-growing FinTech