When it comes to investing in international business expansion these days there is often hesitation – you tread lightly and scour Bloomberg Market Data Feed for any indication of positive trends.
As you search for the right overseas market to scale up your business or put down roots for your new start-up, Australia should be a serious contender.
Political and Economic Climate
Australia is both a federation and a Commonwealth nation – some say a perfect blend of the American and Westminster systems of government. This blended system of government and the country’s strong democratic traditions mean that Australia is politically stable and effectively governed. The result is a resilient economy and a secure business environment.
Australia was one of the only OECD countries that did not experience a recession during the financial crisis of 2008-9, and while COVID-19 did hit its GDP growth rate quite hard in the first half of 2020, it bounced back in the second half, coinciding with stimulus packages and government initiatives across housing and business investments. Australia’s Reserve Bank says that GDP is expected to return to pre-pandemic levels by the middle of 2021.
Australia has a centralised taxation system for most taxes that a business will incur, including income, capital gains, fringe benefit tax and so on. So, unless you are going to be dealing with levy taxes (like land taxes and the like) your only concern will be with one taxation authority: the Australian Tax Office.
Moreover, all corporations are governed by federal legislation which means that companies can operate all over Australia without the requirement of registering in various states.
Australia’s regulatory systems – including institutional frameworks, and regulations supporting finance and banking – are transparent and stable. This makes them relatively easy to navigate, even if you are entering the market from abroad.