Australia enjoys a unique strategic trading position of being geographically part of Asia while also aligned with the West. Australia is blessed with diverse natural resources that attract high levels of foreign investment which includes extensive reserves of coal, iron ore, copper, gold, natural gas, uranium, and renewable energy sources.
Do you have a business that would benefit from the growing Australian market? Read below to find out more about how to get started and what you need to take into account regarding legislation, tax and employment.
Setting you up for success
One of the first considerations when looking at establishing a business in Australia is whether you need to register with the relevant authorities. The key registrations are: tax registrations with the Australian Taxation Office (ATO) including Tax File Number and legal registrations with Australian Securities and Investment Commission (ASIC). All businesses must have an Australian Business Number (ABN).
Structure of Business Entity
Businesses can be conducted in Australia as a sole trader, in partnership, through a trust, through a joint venture or as a corporation. Most foreign companies conduct their Australian business through a wholly or partly owned subsidiary or through an Australian branch.
To work out if your income is taxable in Australia, initially confirm whether your country has a tax treaty with Australia. If you are from a treaty country and carry on business through a permanent establishment in Australia, the income from those operations carried on in Australia is subject to Australian income tax. Any assets you own as part of the permanent establishment may be subject to Australian capital gains tax when you sell or dispose of them. You would also need to give consideration to GST and transfer pricing rules.
If you employ workers in Australia, or you employ a contractor wholly or principally for labour, you may have employer obligations for: Superannuation, Pay As You Go withholding (PAYG), Fringe Benefits tax (FBT), Payroll Tax and Workers compensation.
To learn more about how we can help a Business get started in Australia, read the brochure below or attend one of our Doing Business in Australia webinars.
Click here to download Brochure.