AUSTRALIA - Economy and Opportunity
Australia Showcase
Next global destination for your business
Australia is a stable and low-risk destination for investment, thanks to its resilient economy, dynamic industries and strong trade ties with the world.
Australia Economy
As of 2022, Australia was the 14th-largest national economy by nominal GDP (Gross Domestic Product), the 20th-largest by PPP- adjusted GDP, and was the 22nd-largest goods exporter and 24th-largest goods importer.
Foreign Direct Investments
Australia has the 15th-highest amount of direct foreign inward investment in the world. The United States and
United Kingdom are the biggest investors in Australia, followed by Belgium, Japan and Singapore.
Opportunity Mapping
Australia offers a wealth of investment opportunities in resources and energy, the circular economy, defence,
advanced manufacturing and space; digital technologies, agribusiness and food, health, and infrastructure.
India in Australia
In the year 2021, India’s total investment in Australia was $27.8 billion. The Australia-India Economic Cooperation and Trade Agreement (ECTA) entered into force on 29 December, 2022 is expected to deepen economic ties and provide further opportunities for Australian and Indian businesses. Infosys, Wipro, Tata Consultancy Services, Tech Mahindra,
Discover boundless opportunities and invest in Australia. A land of innovation, stability, and prosperity. With its robust economy, diverse Industries and skilled workforce.
Incorporated Limited Partnership
Incorporated Limited Partnership (ILP) is a partnership where partners can have limited liability for the debts of the business. Under an ILP, there must be at least one general partner with unlimited liability and all other limited partners.
Proprietary Limited companies
Proprietary Limited Company(Pty Ltd.) is a business that has a separate legal existence from its owners and must have at least one Director & one shareholder but no more than 50 non-employee shareholders.
Public Companies
These companies have separate legal existence similar to that of Pty Ltd but there exists some ownership by the public without the restrictions on shareholding as placed on Pty Ltd. These must have at least 3 directors, 2 of whom must be Australian residents
Foreign Entiities in Australia
Foreign Entities having ambitions of entering Australia have multiple option for Australia entry. Branch Office allows the foreign company to conduct business activities in Australia but does not create a separate legal entity. A subsidiary company is a separate legal entity incorporated in Australia but owned by a foreign company. A joint venture involves collaboration between a foreign entity and an Australian entity to carry out a
specific project or business activity.
Australia provides exemptions or reduced withholding tax rates on income earned by foreign entities by dividends, interest, royalties, and certain capital gains.
Corporate Tax
Australia has a competitive corporate tax rate compared to many other developed nations. The corporate
tax rate for most of the companies in Australia is 30% which is lower than the average global corporate tax rate.
Dividend Tax
In relation to taxation of dividends, corporation tax paid by the company is allocated to shareholders by way of
franking credits attached to the dividends they receive. You may be entitled to a franking tax offset
GST
The 10% GST rate in Australia is considered moderate compared to the rates in some other countries. GST applies to sales connected with Australia including goods, services, real property or other things.
Taxation of Non Resident entities
A non-resident company is taxed on its Australian source income at the same rate as a resident company. Taxable income and the tax rate may vary under limited circumstances, such as industry or business structure. In case an enterprise has a Permanent Establishment in both India and Australia, the business profits will be taxed
in both countries, but the DTAA provides relief from double taxation by allowing the taxpayer to claim a credit for the taxes paid in one country against liability in another.
The Australian government actively promotes foreign investment through a range of policies and incentives including tax incentives, streamlined visa and sector-specific support programs.
Branch Office
A branch office is an extension of a foreign company and operates under the same legal identity. It allows the
foreign company to conduct business activities in Australia but does not create a separate legal entity..
Subsidiary Company
A subsidiary company is a separate legal entity incorporated in Australia but owned by a foreign
company or another entity. It operates independently and assumes its own legal rights and obligations.
Joint Venture
A joint venture involves collaboration between a foreign entity and an Australian entity to carry out a specific project or business activity. It is a contractual arrangement where the parties pool their resources and share
risks and rewards.
Australia Business
Companies must appoint one public officer to ensure that the company complies with the ATO, public officer must be an Australian resident and must give written consent to act as the company’s public officer. Proprietary companies controlled by foreign companies must prepare audited financial reports, lodge them with the ASIC and send it to the members. However, small proprietary company controlled by a foreign company may be relieved from the audit requirements.
