Sean Urquhart from Nexia Australia took part in UK Trade & Investment's webinar on establishing a business in Australia.

1. DOING BUSINESS IN AUSTRALIA
Presented by Sean Urquhart – Tax Partner at Nexia Australia
T: 61 2 9251 4600 E: surquhart@nexiacourt.com.au

2. DISCLAIMER
The material contained in this publication is in the nature of general
comment only and neither purports, nor is intended, to be advice on
any particular matter.
Readers should not act or rely upon any matter or information
contained in or implied by this publication without taking appropriate
professional advice, which relates specifically to their particular
circumstances. The publishers and authors expressly disclaim all and
any person, whether a client of the Nexia Court & Co group or not, who
acts or fails to act as a consequence of reliance upon the whole or any
part of this publication. The information is current as of September
2012.

3. Summary
 Business Taxation
 Structures and requirements
 Individual Taxation
 Taxation and incentives

4. Summary
 Step 1 – Selecting a business structure
 Step 2 – Establish the structure
 Step 3 – Consider what other registrations or
applications may be required
 Step 4 – Consider employer obligations where
engaging staff
 Step 5 – Gain an understanding of your ongoing
reporting and payment obligations

5. Select the Structure
What structure is suitable in Australia:
 Company
 Branch
 Trust
 Partnership
 Joint Venture

6. Common Structure
UK Company
100% Ownership
Australian
Company

7. Common Structure
UK Company
Australian
Branch

8. Common Structure
UK New UK
Company Company
Australian
Branch

9. Select the Structure
Establish the structure (company / Branch):
- Residency
- Incorporation / registration branch
- Tax file number
- Australian Business number
- Goods and Services Tax

10. Taxation / Reporting Issues
 Audit Requirement
 Tax year end alignment
 Reporting requirements
 Corporate Tax Rate 30%
 Goods and Services Tax (VAT) – 10%
 Importation rules
 Repatriation of profits

11. Employer Responsibilities
 Payment of employee taxes
 Superannuation
 Workers Compensation
 Payroll Tax
 Salary Package

12. Individual Taxation
 Tax Residency
 Categories of tax residency
 Tax Resident
 Temporary Resident
 Non-resident
 Year end 30 June
 Tax Rates

13. Australian Tax Rates 2012 - 2013
(Australian Resident Individuals)
Taxable income Tax on this income
$0 - $18,200 Nil
$18,201 - $37,000 Nil + 19 % for each $1 over $18,200
$37,001 - $80,000 $3,572 plus 32.5% for each $1 over $37,000
$80,001 - $180,000 $17,547 plus 37% for each $1 over $80,000
$180,001 and over $54,550 plus 45% for each $1 over $180,000
* Add 1.5% Medicare Levy

14. Australian Tax Rates 2012 - 2013
(Australian Non Resident Individuals) – no CGT discount
Taxable income Tax on this income
$0 - $80,000 32.5c for each $1
$80,000 - $180,000 $26,000 + 37c for each $1 over $80,000
$180,001 + $63,000 + 45c for each $1 over $180,000

15. Staff / Tax on Individuals
 Tax Incentives for expatriate
employees:
X Living away from home allowance (n/a
post 1 October 2012)
 Expat benefits
 Private schooling
 Temporary Accommodation
 Relocation costs
 Holiday Travel

16. Tax Residents
Who is a tax resident?
 reside in Australia
 183 day test
 not a temporary resident
Generally will be Taxed on:
 World Wide Income

17. Taxation of Temporary Residents
Who is a temporary resident?
Generally will be Taxed on:
 Employment income in Australia
 Capital Gains from assets located in Australia
× Excludes sale of share in Australian Public companies
× Excludes worldwide assets
× Excludes worldwide income unless Australian sourced