In 2019, the Australian economy experienced a growth of 0.5 per cent in its last two quarters, an annual GDP of 1.7 per cent and government final consumption remains strong at 6.0 per cent. Our AAA credit rating and 28 years of unbroken growth work to further strengthen our economy.
Australia’s economic strength is based mainly on services, resources, advanced manufacturing and agriculture-based sectors. This is what Australia does best and it will be this advantage that will continue to provide future jobs and income generation.
Your business decision to expand internationally, may be based on your company’s’ growth plans but could also offer huge opportunities that your existing markets do not provide.
Let’s explore why you should be considering doing business in Australia.
Australia as a new revenue source
Saturated your home market or looking for a bigger base of buyers? Taking your company global could give your business access to a larger pool of customers to increase your business revenue.
Going international has the potential to increase your rate of revenue growth. It also has the added benefits of productivity and expense efficiencies across the whole business, such as better global communication systems and supply chain proficiencies. Your business may not only see an increase in revenue, but profit margins may improve as these proficiencies infiltrate the business.
The Australian Federal Government has an investment pipeline of approximately $250 billion in new capital projects, bringing with them a potential of 100,000 new jobs. This expenditure has the scope for shared gains for Australian companies and their workers.
Two examples of major projects currently set by the Federal Government are –
- $3.8 billion is being proposed over the next four years, to spend on major infrastructure, across all corners of the nation. This investment will not only see a huge number of jobs created in construction and beyond, but business will benefit from improved efficiencies of this infrastructure.
- The Australian food industry is world class not only in terms of quality but also the wide range of food we produce and manufacture. The government recognises its economic contribution commercially, to jobs and the huge potential of food exporting. It is working on improving the speed to market for food exporters by focusing on simplifying and digitising the export process. In addition, it proposes to give food exporters better access to the Trusted Trader programme and Known Consignor border facilitation programs.
With the Australian Federal Government set to capitalise on current economic growth they are ensuring Australia is ready and ripe to bear the shifts in technology that will be seen throughout the economy and the world. As new technologies change what is produced, how and where goods and services are produced, there are opportunities abound for savvy businesses.
Go in with a strong Australian business plan and continue to re-evaluate your company’s strategy.
Credico has more than 400 independent sales offices across 16 countries, including more than 100 in the U.S. Responding to opportunities for their services in Australia and wanting to find a new market, Credico were able to establish 13 franchise sales offices in their first three years.
Access to Talent
One of the key benefits of setting up and operating a business in Australia is access to a highly educated, multi-cultural workforce. Australia develops incredible talent which is valued on the global stage. An international business will always benefit from local expertise and support and is crucial for success.
40 per cent of the Australian workforce have a tertiary education. They also benefit from an internationally recognised education system, quality scientific research institutions and the availability of specialised training services for further development.
The diverse culture of the Australian workforce is also perfect for global companies expanding to Australia – almost 30% of workers are born overseas, with 2.1 million able to speak an Asian language, and 1.3 million speak an European language.
With an ageing population affecting the Australian economy, Australians are working longer. Workforce participation among people aged 65 and over is on a record high, with an increase from 12.3 percent to 14.6 percent over five years. Employing older staff brings many benefits to business – cognitive diversity, knowledge and expertise, patience, and a collaborative nature.
Access to a new pool of highly trained and capable employees with unique skills and mindsets will help build a strong Australian entity. It could also provide benefits in your home country, bringing in new ways of thinking and sharing of ideas. In most industries where product/service quality overrides quantity, every competitive edge adds up.
Co-founder and CEO Maryam Sadeghi of the Canadian medtech, MetaOptima, who set up business in Australia in 2019, found local talent was critical to her company’s success in Australia.
She said ‘The knowhow we have found in Australia is very unique. Our scientists in Australia are pioneers; they are changing the whole ecosystem and leading the wave of skin cancer innovation. Being part of that innovative family, having those leaders on board is awesome.’
Scytl provides world leading secure electronic voting, election management and election modernisation software, to governments & organisations around the globe.
Scytl recognised a need for an Australasian presence to secure a team of Australian talent with local legislation knowledge and government experience to quickly establish itself as a viable e-voting software company and to attract new customers.
Employing Australians, will, however, require a knowledge of the Australian payroll system. It is a statutory requirement that all businesses pay their employees correctly and on time. Our payroll guide should help you to navigate the Australian payroll landscape.
Diversifying company markets
Diversifying company markets is clever business strategy to reduce your risk when existing markets shift, whether from unforeseen conditions, slowdowns or movement downwards.
One way to diversify and stabilise, is to look at global markets as a source of new or different revenue. International markets may deliver your business new sectors within swift and transforming global supply chains.
With developing and innovative technology, communications are making it easier for global companies to enter new markets. The delivery and access to business services, like marketing, management and technical knowledge all make it efficient and cost effective to cross traditional boundaries.
As Australia gets stronger and wealthier, its growing middle class (across Asia Pacific as well), will demand more services – and these services will provide new opportunities for business.
At present, Australia is seeing a growth in non-tradable services, in the areas of health, disabled services, and human services as well as caring and supporting older Australians as the population ages.
Australia’s Health Services subdivision is forecast to continue growing strongly over the next five years due to its ageing population, the increasing prevalence of chronic diseases and the rising private health insurance membership levels.
General hospitals are expected to account for much of this subdivision’s expansion with the growth in private health insurance coverage likely to continue to boost other allied health services that derive revenue from these private health benefits.
Australia’s tradable services, specifically, higher education, medicine, finance and business services, are seeing an increase in productivity through technology.
The higher education sector has been the major beneficiary of Australia’s growing economy, as we see shifts in our economic structures and the new skills required by the workforce. This increased demand for education is identified by Deloitte as one of five sectors capable of driving the next phase of Australian economic growth.
Australian universities and research institutions are developing innovative technology, breakthrough solutions, solving real world challenges, and providing opportunities for productivity growth, better products, in some very challenging conditions.
Could your business products or services be used by or adopted by these burgeoning Australian industries for further growth and diversification?
Are there new business opportunities waiting for you in Australia?
With strong support from the Australian government at all levels – through grants, tax benefits, R&D, and pilot programs, Australia could be your next business destination.
Research thoroughly, seek advice from experts and those who have done it before and team up with great Australian businesses whose sole purpose is to help you successfully expand internationally.
Go on the journey with International Accounting Solutions. Our understanding of local regulations, laws, taxes and business practices and how these fit in with your global business could be the help you need today…and tomorrow. Call our accounting team on 1300 319 870 or contact us here.
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