Business Investment Guide - Australia | 1 Introduction BUSINESS & INVESTMENT GUIDE AUSTRALIA 2 | Business Investment Guide - Australia Introduction About us Asialink Business Department of Agriculture and Food, Asialink Business provides high-calibre opportunities for Western Australia Australian businesses to build the Asia capability of their The Department of Agriculture and Food, Western Australia, executives and team members. drives the economic development of Western Australia’s agriculture and food sector, with a focus on export-led Our business-focused cultural competency programs, growth. We work professionally and with integrity to help professional development opportunities and practical research deliver meaningful results to industry, government and the products allow businesses to develop essential knowledge of community. contemporary Asian markets, business environments, cultures and political landscapes. Our department’s role is to support the success of the state’s agrifood businesses to achieve our vision of ‘a progressive, Supported by extensive market research and customer innovative and profitable agriculture and food sector that intelligence, Asialink Business is uniquely positioned to provide benefits Western Australia’. We work with industries and tangible support to Australian businesses wishing to maximise businesses throughout the sector, helping them identify and their economic opportunities. To start a conversation about capitalise on opportunities for growth as well as to manage how we can help build Asia capability in your business, please and overcome obstacles. get in touch. Our highly skilled staff throughout Western Australia deliver Asialink Business a diverse range of services to agribusinesses right along the Level 4, Sidney Myer Asia Centre supply chain. University of Melbourne Victoria 3010 Australia Department of Agriculture and Food, Western Australia Tel: +61 3 8344 4800 Fax: +61 3 9347 1768 Email: [email protected] Web: asialinkbusiness.com.au Tel: +61 (0)8 9368 3333 Web: www.agric.wa.gov.au Front and seconds page image: Photocase. Photographer: Daniel Schoenen Daniel Photographer: and seconds page image: Photocase. Front Business Investment Guide - Australia | 3 Introduction 1. Introduction 7 1.1 Australia’s opportunities for investment and business 7 1.2 The Australian context 15 1.3 Beyond trade: Australia’s relationship with the region 30 2. Understanding Australia 33 2.1 Key facts: states and territories 35 2.2 Key industries 56 2.3 Developing Northern Australia 80 3. Entering the Australian market 83 3.1 Understanding the market 85 3.2 Choosing a business structure 88 3.3 Establishing your business 91 3.4 Marketing and e-commerce 93 3.5 Building industry relationships 96 4. Australian culture and business 99 4.1 Business etiquette 100 4.2 Meetings and negotiations 105 4.3 Evaluation and due diligence 108 5. Business regulations and practices in Australia 111 5.1 Principal business and investment regulations 112 5.2 Trade regulations and tariffs 117 5.3 Tax and accounting 123 5.4 Employment relations and law 126 5.5 Financial practices 129 6. Visiting Australia 133 6.1 Practical information 134 6.2 Visas 135 6.3 Travel 135 6.4 Visiting capital cities 138 6.5 Health and wellbeing 140 7. Learn more: resources and contacts 145 4 | Business Investment Guide - Australia Introduction Australia’s Economy CURRENCY INFLATION RATE 2016 australian dollar (aud) 1.5% VALUE OF TWO WAY GOODS POPULATION AND SERVICES TRADE (2016) 24 million $673 billion GDP (2016) MAIN LANGUAGE US$1.66 trillion english LARGEST CITY sydney, nsw SIZE CAPITAL 7,682,300 sq kms CITY (6TH LARGEST COUNTRY IN THE WORLD) Canberra, ACT PRINCIPAL TRADING PARTNERS china japan USA republic of korea singapore jan-dec GDP GROWTH RATE (2016) GNI PER CAPITA (PPP) WORKFORCE STOCK EXCHANGE FINANCIAL YEAR 2.5 PER CENT $45,320 12 million AUSTRALIAN STOCK 1 July to 30 June EXCHANGE (ASX) Business Investment Guide - Australia | 5 Introduction TOP GOODS AND SERVICES EXPORTS RESOURCES WORLD RANKING OF ECONOMY iron ore gold 13th largest coal aluminium natural crude 26 YEAR AVERAGE GDP GROWTH RATE gas petroleum 3.3 per cent AGRICULTURAL % of workforce THAT hold BEEF WHEAT tertiary qualification 40 per cent MEAT (NON-BEEF) WOOL time zone SERVICES • Australian Eastern Standard Time PROFESSIONAL TRANSPORT (AEST) GMT +10hrs • Australian Central Standard Time TECHNICAL & (ACST) GMT +9.5 hrs FINANCIAL INFORMATION • Australian Western Standard Time (AWST) GMT +8 hrs TRAVEL From October to April – Australian clocks move forward one hour for ‘daylight savings’ (excluding Queensland, Northern Territory and Western Australia). For more information, see: http://www.australia.gov.au/about- australia/facts-and-figures/time-zones-and-daylight-saving. PERSONAL EDUCATION BUSINESS Sources: Australian Bureau of Statistics, Department of Foreign Affairs and Trade, RELATED TRAVEL International Monetary Fund (IMF), Reserve Bank of Australia, World Bank. 6 | Business Investment Guide - Australia Introduction Business Investment Guide - Australia | 7 Introduction 1. Introduction 1.1 AUSTRALIA’S OPPORTUNITIES FOR INVESTMENT AND BUSINESS Australia is considered one of the world’s most attractive locations to do business. With a thriving economy, one of the most educated and multicultural workforces in the world, and an easy-to-navigate business environment, Australia offers many opportunities for overseas investors and companies. Australia’s small population – only 0.3 per cent of the global total – belies its significant economic standing as the world’s 13th largest economy, accounting for approximately 1.8 per cent of the world’s GDP at an estimated US$1.3 trillion (2016) – double what it was a decade ago. Australia has enjoyed uninterrupted growth for 25 years and is the only developed economy to do so. In fact, Australia continued to flourish even during the global economic downturn in 2009- 10 – an achievement that places it on par with the large growth economies of China and India. And it is primed for continued success. The Australian economy is on track to achieve one of the highest forecast growth rates of all advanced economies in the next five years, predicted to average 2.9 per cent between 2017-22. Its government debt is one of the world’s lowest and its economy has the top international investment rating of AAA for Standard & Poor’s, Moody’s and Fitch – further evidence of its sound financial situation. In addition, Australia has been found to have a 20 per cent higher productivity rate than its global competitors in its key growth sectors of gas, education, health and tourism, and an impressive 40 per cent more in agribusiness, oil and mining. This success is underpinned by a wealth of multicultural talent with the world’s highest secondary education enrollment rates and more than 40 per cent of the workforce holding a tertiary qualification. 8 | Business Investment Guide - Australia Introduction Adding to these strong socio-economic credentials is the fact businesses exporting their goods and services to the world. that Australia’s labour force is one of the most skilled, diverse The country plays an active role in the World Trade and employable in the world. It’s easy to see why Australia is Organisation (WTO), G20 and Asia-Pacific Economic ideal for foreign investment. Cooperation (APEC). Australia is also an easy market for foreign businesses to enter. Australia also offers investors world-class innovation and The World Bank ranks it 8th out of 190 countries for starting infrastructure, and a safe, low-risk environment with a a business, and 15th for ease of conducting business. It has a strong intellectual property (IP) legal framework to enforce stable and transparent operating environment and one of the protection. Furthermore, the weakening Australian dollar most sophisticated financial services industries in the Asia- against the US dollar makes Australian exports attractive to Pacific region, ranking seventh overall out of 140 countries by foreign buyers. the World Economic Forum for financial market development and fourth for trustworthiness/confidence in the financial Australia’s trade and investment connections in the Asian market. region are enhanced by its geographical position. It is in an ideal strategic location with access to both the Indian and Australia’s recent signing of historic trade agreements with Pacific oceans - not to mention, is a key part of most major three of its biggest trading partners – China, Japan and Korea international shipping routes. It takes less than 5 hours to – has brought further benefits for investors. This is in addition fly from Jakarta to Perth, just 9 hours from Hong Kong to the trade agreements and economic partnerships that to Brisbane, and under 10 hours from Tokyo to Sydney. already exist with Singapore, Thailand, Malaysia and ASEAN With regular daily flights between key trading destinations, (Association of Southeast Asian Nations). It is important to Australia is well positioned for business with regional partners. note that Australia’s commitment to enhancing trade links The fact Australia is in a similar time zone to its Asian extends globally. For example, Australia is currently in talks neighbour’s means conducting business is easier than with with Indonesia, India and Hong Kong, already has free trade other major trade partners such as the US. agreements in place with the USA, New Zealand and Chile, and played an active role in promoting the ratification of the Naturally,