Top 10 Challenges of Doing Business in Australia

Disclaimer: The information in this article was correct at the time it was published. For the most current information, please contact our experts.

Australia is ranked among the top three countries of the Asia-Pacific region in terms of its overall competitiveness. Australia also ranks second among countries with more than 20 million people, just behind the United States. The Australian Chamber of Commerce and Industry conducted a survey of 1,700 Australian businesses and found that more than half of them are concerned about taxes, especially in relation to superannuation. 90% also felt that government spending was a significant concern.
Local experts are a great help in navigating the business environment. They can simplify operations and cut through bureaucratic red tape.

Start a business

The World Bank and International Finance Corporation rank Australia second in ease of starting business. It only takes two steps and takes two days to complete. The Australian Taxation Office (ATO) requires that firms complete and submit ASIC Form 201 “Application to Register as an Australian Company”. This will allow them to obtain a certificate of incorporation, an Australian company number, and register for an ABN.

How to deal with construction permits

When obtaining construction permits, firms must complete 11 procedures. This includes several inspections and approvals from local authorities. The process takes only 112 days, and costs 13.4% of a person’s income.

Getting Electricity

Before a service provider can be hired to do external work, businesses must apply for connection. The utility should be notified and a CT Metering form must be completed. An internal wiring inspection must also then take place. On average, this takes 75 days to complete.

Registering property

Although there are many steps involved in the registration of a property, each process takes less than two days. You must file documents with the Land and Property Information Department and Municipal Council.

Credit Getting

Australia’s strong financial services sector means that businesses can get credit with relative ease. After leaping six places from the previous year, the World Bank and IFC have ranked it fourth in the world.

Protecting Investors

Businesses looking to expand into Australia may be concerned about investor protection. However, the Australian Securities & Investments Commission is an independent Australian government body that acts in Australia’s capacity as Australia’s corporate regulator.

Taxes

The Australian Chamber of Commerce and Industry report highlighted that tax payments were a major concern. Companies also expressed concerns about the superannuation levies, which are increasing from 9% – 12%. The annual payments for firms are 11 and take 109 hours. It takes 18 hours to complete the superannuation guarantee, and corporate income tax stands at a flat 30 percent.

Trade across Borders

Australia is a very bureaucratic country for exporting and import. Six documents are required to export, seven to import. It takes nine days for an export, and eight for import.

Enforcement of Contracts and Resolution of Insolvency

The modern Australian judicial system makes it easy to enforce contracts and resolve insolvency. It takes 395 days to enforce a contract, and 1 year to resolve an insolvency.

Culture

Australia relies heavily on foreign markets for both its consumption and international trade. This means that it has both the political and economic environment to support globalised business. The country is small and has a high educated, well-off population that understands the importance international trade. This makes cultural barriers to trade non-issue.

TMF Group

These minefields can be navigated by our local experts. We can help you set up an Australian business or streamline your existing operations. Talk to us .

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