This document provides an overview of establishing a business in Australia for UK companies. It discusses why Australia is an attractive market, comparing economies and trade between Australia and the UK. It then covers key considerations for UK companies including common business structures in Australia, taxation requirements, employment laws, and intellectual property. The document also outlines services available from UKTI and trade missions to Australia. Setting up on a temporary basis using the 457 visa process is also summarized, including sponsor approval, position nomination, and visa application requirements.

2. Establishing your Business in Australia –
What you need to know
2

3. 3
Introduction
Presentations by:
UKTI Australia: Melena Dirou, Senior Trade Development Manager
Penguin Accounts: Stefanie Lowe, Director
Ajuria Lawyers: Lillian Ajuria, Director - Solicitor & Notary Public
Commonwealth Bank Australia: Abdul Khan, Corporate Referral
Manager - Retail Banking

4. 4
Why Australia?

5. 5
Why Australia?
- Over 1,000 UK companies and more Brits than in any other country
- Very similar business, legal and regulatory culture
- Best performing OECD country economically, with good growth prospects
- Closely linked to fast growing Asia-Pacific nations
- Strong innovation credentials and R&D Tax incentives
- Massive opportunities for UK companies in oil and gas, health, ports,
infrastructure, ICT, education, low carbon, financial and business services

6. In partnership with:
UK comparison with Australia
Australia
UK
Population
23 million
64 million
Global GDP ranking
12th
6th
GDP Growth
2.6%
1.5%
GDP per capita ($US)
$59,000
$38,000
Competitiveness index
21st
10th
Ease of doing business
10th
7th
Unemployment
5.8%
7.7%
Land mass – sq kms
7 692 000
243 000
(Yr to June 2013)
Sources: IMF, WEF, World Bank, Aust. Bureau of Statistics, UK Office of National Statistics
6

7. 7
Australia: it’s bigger than you think

8. 8
UK Exports to Australia
• UK exports to Australia grew by
78% from 2007-2012 to £10.8 billion
• Total UK goods exports growth
was flat in 2012, but to Australia it
increased 6%
•Australia is the UK’s 7th biggest
market for services exports and 18th
largest for goods
• The UK is the 2nd biggest foreign
direct investor in Australia

9. 9
Australia’s economy
- Strong and stable economy
- Australia holds a AAA sovereign credit rating
-The Australian dollar is currently at 0.9382 US Dollar
- Interest rates are currently at 2.5%
- Serviced based economy
- Sophisticated financial services sector

10. 10
UKTI Australia
How we can help

11. 11
Overseas Market Information Service
- OMIS is a flexible business tool
that allows you to use the services
of our Trade team to benefit your
business and help it to expand into
foreign markets
Find out more at:
http://www.ukti.gov.uk/export/howwehelp/overseasmarketintroductionservice.ht

12. 12
Passport to Export
Assesses a company’s readiness for
international business, and helps it build
international trade capacity
Find out more at:
www.ukti.gov.uk/export/howwehelp/passporttoexport.html

13. 13
UKTI Australia Network
- Consulates in Sydney, Melbourne,
Brisbane and Perth.
-Trade team is divided into sectors and
assist with enquiries on a national basis
- Contact details for Trade Managers:
https://www.gov.uk/government/world/or
ganisations/uk-trade-investmentaustralia

14. 14
Trade Missions 2013
South West Trade Mission
28th to 29th October
Rail Mission
27th to 29th November
West Midlands Trade Mission
2nd to 6th December

15. Establishing your business in
Australia
Presented by Stefanie Lowe
Director Penguin Management Services Pty Ltd
E: stefanie@penguinaccounts.com.au

16. Disclaimer
This presentation contains general information about establishing a company in Australia.
The information is not advice and should not be treated as such.
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 Penguin Management Services Pty Ltd 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
2013.

17. Summary

Company structures

Taxation requirements

Employment

Intellectual property & domain names

18. Company Structures
Choosing Companies incorporated in
Australia
•key decision has to be made as to whether the business will be run through
an offshore entity or an Australian entity will be utilised.
•What is most beneficial outcome from a taxation, employment/visa,
contractual and operational perspective.

19. Company Structures
Australian branch of foreign company
•Must register as foreign company with ASIC obtain Australian
Registered Body Number (ARBN)
•Appoint local agent
•Maintain a registered office in Australia
•Lodgment of certified copy of its certificate of incorporation and
constitution, list directors
•Higher compliance costs
•Must annually lodge a copy of parent company accounts with
other documents
19

20. Company structures
Proprietary limited company-Australian Subsidiary
•Most common structure, with limited liability and separate legal structure
•Maintain registered office in Australia
•At least one shareholder
•Minimum $1 share capital
•At least one director must have a resident director
•An Australian company number is assigned (ACN)
20

21. Taxation requirements
Company must obtain apply for:
•ABN –
•TFN –
•GST –
•PAYG –
Australian business number
Tax file number
Goods and services tax
Pay as you go tax (if have employees)
Current corporate tax is 30%
GST – Goods and services tax 10% - tax imposed on the
consumption of goods and services
Filing on quarterly BAS (business activities statements) and
annual tax returns
Financial year is from 1st July to 30th June
21

22. Employment
The Fair Work system is Australia’s national workplace relations system
•Maximum standard week 38hours
•4 weeks annual leave
•Personal and carers leave
•Long Service leave after 10 years of service
•Compulsory superannuation for employees currently 9.25%
•Workers compensation insurance
22

23. IP and domain names
Intellectual Property
•Australian legislation provides protection for IP, trademarks, copyrights, patents
and industrial design
•IP Australia grants patents, registers design and trade marks.
•IP Australia receive and process applications, it also maintains the registers
Domain Names
•The Australian domain names are administered bt .au Domain Administration Ltd
(auDA)
•The com.au domain space is for use of Australian commercial entities
•Foreign (non Australian) companies may only register a com.au domain name if
they have a registered to trade in Australia with ASIC or if they own or have
pending application of Australian trade mark
23

24. Temporary Work (Skilled)
Subclass 457 visa
General information
Presented by:
Lillian Ajuria
Solicitor & Notary Public
Accredited Specialist in Immigration Law
24

25. 25

26. 26

27. 27

28. Main components to temporary business sponsorship:
1. The employer applies for approval to be a Standard Business Sponsor –
sponsorship approval period of 3 years (1 year if a start up business);
2. Nomination: The employer (sponsor) applies for approval to nominate a
skilled position;
3. Visa Application: The overseas worker (nominee) applies for a Subclass
457 visa; and
4. Post sponsorship- monitoring/notifications
28

29. Types of Sponsorship
1.
Offshore business – not operating in Australia
2.
Business operating in Australia < 12 months
3.
Business operating in Australia > 12 months
29

30. Training requirement
1.
Offshore business (not operating in Australia) – No training
requirement
2.
Business operating in Australia (< 12 months)- Auditable training plan
3.
Business operating in Australia (> 12 months)- Previous year evidence
30

31. 1. Standard Business Sponsor (SBS)
•Must meet Training Benchmarks (unless offshore business or operating in Australia
for less than 12 months):
•
Recent expenditure, by the business, to the equivalent of at least 1% of the
payroll of the business, in the provision of training to employees of the
business; or
•
Recent expenditure, by the business, to the equivalent of at least 2% of the
payroll of the business, in payments allocated to an industry training fund,
and a commitment by the business.
Adherence to Training Benchmarks is monitored.
31

32. 1. Standard Business Sponsor (SBS)
Definition of “Payroll”
Payroll refers to the amount of money an employer pays in
wages to their employees, in the 12 months prior to
application lodgement. Payroll expenditure includes any
wages, remuneration, salary, commission, bonuses,
allowances, superannuation contributions (mandatory or
otherwise) or eligible termination payments that are defined
as wages in the Act relating to payroll tax in the relevant
State/Territory.
32

33. 2. Nomination (position)
•
Meet all relevant Australian laws and award conditions (Fair Work Act);
•
Minimum Temporary Skilled Migration Income Threshold (TSMIT) now
AU$53,900.
•
The Market Rate for any nominated position/occupation must be above
this minimum amount.
•
How do we prove the Market Rate?
 Australian employed in the same role at the same level in same location or
external evidence such as salary surveys, awards etc
33

34. 3. Visa Application
•
•
•
•
•
•
Skills of the applicant – degree/relevant
requirements
No age limit
English requirement – unless exempt (see below)
Health/Character
Members of the family unit
Health Insurance/Medicare
experience
457 Visas are granted for up to 4 years
34

35. 3. Visa Application- English requirement
• All 457 visa applicants will now be required to satisfy English
language requirement of 5.0 in each section of an IELTS test
• Limited number of exemptions:
• If the visa applicant holds a passport from Canada, New
Zealand, the Republic of Ireland, the United Kingdom or
the United States;
• Has a base rate of pay above the prescribed English
threshold (increased from $92,000 to $96,400); or
• Has received tuition in English at a secondary or tertiary
level for five consecutive years or more.
35

36. Visa Conditions
•
Condition 8107 (main applicant only)–conditional upon
employment with Sponsor* in nominated occupation.
•
Condition 8501 (all applicants) – must maintain adequate
arrangements for health cover during stay in Australia.
Medicare is considered adequate for the purposes of Condition
8501
cover during your stay in Australia.
36

37. 4. Sponsorship Obligations and
Monitoring
• Must adhere to sponsorship obligations for the life of the
agreement ( 1 to 3 years)
• Consequences are serious!
• Administrative (cancel/bar sponsorship)
• Infringements (fines) ($6,000 for an individual or $33,000
for Body Corporate) for each failure
• Monitoring can happen at any time during the life of a
sponsorship
37

38. Changes from 1 July 2013 continued
Labour Market Testing (LMT)
• Labour Market testing rumored to be implemented in
November 2013 (not yet confirmed)
• Business must show evidence of the attempts made to
recruit suitably qualified and experienced Australian citizens
and permanent residents ‘to the position and any similar
position’. Evidence could include:
• information about participation in relevant job and career
expositions; or
• details of any other fees and expenses paid (or payable) for any
recruitment attempts (including fees for career expos); or
• details of the results of such recruitment attempts, including
details of any positions filled as a result.
38

39. Immigration lodgment fees
• Application fees to the Department of Immigration
increased significantly from 1 July 2013.
• Fees now charged for each additional family member
included in the application.
• Fees increased again on 1 September 2013.
• SBS
$420
• Nomination
$330
• Visa Application
(Main Applicant)
$1,035
(Spouse)
$1,035
(Children under 18)
$260
39

40. Ajuria Lawyers
Level 4, 39 Martin Place
Sydney NSW 2000
+61 (0) 2 9283 9009
Ajuria Lawyers
Level 40, 140 William St
Melbourne VIC 3000
+61 (0) 2 9283 9009
lillian@ajurialawyers.com.au
40

41. Inbound Corporate Banking
Solutions- UK Clients
Prepared for UK Trade and Investment (UKTI)

42. Overview – Corporate Referral Presentation
Inward Corporate Referral Program

43. Summary
Why Choose CBA?
•
CBA is the largest Australian bank by market capitalisation including the largest retail
footprint in Australia:
•
•
•
Over 14 million customers (Over half the Australian population);
Over 1,100 branches;
Over 4,100 ATM’s nationally
•
CBA prides itself in striving for technology excellence and over the past 4 years there
has been major investment in our “Core Banking Modernisation” programme (In
excess of $1B). The overarching benefit from this program is the opportunity to
leverage our “real time banking” capabilities for your clients allowing “CBA to CBA”
transactions to occur 7 days a week, 365 days a year.
•
Our vision is to excel at securing and enhancing the financial wellbeing of people,
businesses and communities. This focus has been reflected in a number of recent
award wins including Australian Private Banking Awards 2013, The Asian Banker
Transaction Banking Awards 2012, CANSTAR Best Value Australia – Small Business
Banking
43

44. Corporate Referral Management
Overview of CBA Offering
 Central point of contact for Corporate Referrals into Australia
 Providing full implementation services and establishing most facilities within a few days upon
receiving completed application
 Comprehensive Business Banking product and service offering
 Online banking capability- securely, online from anywhere in the world- CommBiz!
 All enquires have a fast turn around response within 24-48 hours
 An assigned Relationship Manager to manage the Client portfolio ongoing
 All Clients relationship managed with a support team available 24 hours 7 days a week
44

45. Corporate Referral Management
Services offered under the CBA facility
All products and services offered under this agreement are branded CBA.
The relevant value add solutions available to your clients include:
Cash management accounts;
Corporate cards;
Commercial lending;
Merchant Services;
BPAY;
Equipment and Car Finance; and
Trade Finance.
45

46. Corporate Banking Application process
Client
Client
CBA
1. Corporate
Banking
requirements
identified in
Australia
2. Contact Abdul Khan who
will discuss Corporate
Banking solutions for your
Australian Business
3. Abdul Khan sends out
Application pack via email
CBA
Client
6. Account opened
within 24/48 hours
and a Relationship
manager assigned
5. Documents sent to
Abdul Khan via post
Client
4. Complete application
forms and scan email to
Abdul Khan for proof
checking
46

47. Contact details
Abdul Khan
Corporate Referral Manager
International Network Management –
Global Trade and Transaction Service (GTTS)
Tower 1 Level 6, 201 Sussex Street
Sydney NSW Australia 2000
P: +612 9118 6715
M: +61 403 602 832
E: abdul.khan@cba.com.au
Our vision is to excel at securing and enhancing the financial wellbeing of people, businesses and communities.
47