February/March 2009 / Features
Doing Business in Australia
The authors, attorneys in Australia, delineate advantages and some of the nuts and bolts of doing business in that country, which they characterize as prosperous, politically stable and with “relatively low cost structures.” International investors bring businesses to Australia, they write, to capitalize on its strong economy, highly skilled workforce and strategic geographical location. Australia trades largely with countries in the Asia-Pacific region, including China and Japan, and it has free trade agreements in place with, among other countries, the United States.
A business in Australia can be set up as a “sole trader,” a partnership, a joint venture, a trust or a company. Foreign companies may be set up either as an Australian branch or through an Australian subsidiary. A foreign company must have a registered office in Australia and appoint a local agent to represent it, and it may need approval from the Foreign Investment Review Board, as well as industry-specific regulators. If it becomes an employer in Australia, it also will be required to comply with retirement laws (known as superannuation laws) by making a quarterly contribution of some percentage of an employee’s salary or wages into a complying fund.
Noting Australia’s rich land, wind, solar and water resources, the authors say they expect renewable energy to become a significant component of Australia’s energy supply.