Good to Great: How to Scale With an Outsourced CFO

Australia is known for unique natural wonders like coral reefs and waterfalls, beautiful beaches, kangaroos, and… business opportunities? It’s true! Australia’s healthy economy, efficient markets, strong public and private institutions, and quality education make it an attractive place for businesses to thrive. In fact, the World Economic Forum’s Global Competitiveness Report recognises Australia as a prime location for doing business. 

Businesses are moving to Australia for all of these reasons, and while setting up a business in another country is challenging, the opportunities available are often well worth the effort. Let’s take a look at the overall economic climate to see why so many businesses are taking a second look at Australia.

Australia's Healthy Economic Climate

In September 2016, Australia celebrated 25 years without a recession, and there are many reasons for this stability. Australia is rich in resources such as coal, iron ore, lead, zinc, gold, and lithium. In addition to mining, Australia has been developing offshore petroleum, and agricultural resources like crops, forests, and livestock help the country to maintain its healthy economy. 

International trade has been another strong contributor to Australia’s healthy economy. In 2015, Australia’s two-way trade was worth nearly $670 billion. Top trading partners include China, the United States, Japan, Korea, Singapore, and New Zealand. For several decades now, there has been an emphasis on increasing trade, and the emphasis has paid off. Trade liberalisation and economic reform have made Australia a powerful trade partner for some of the biggest economies in the world.

 

Australia's Thriving Industries

When considering whether or not to start a business in Australia, it’s important to know which industries are already thriving and growing. You may find yourself taking advantage of a lack of businesses that do what you do, or you can join an industry that has already made great inroads in the national and international markets.

 

Agriculture in Australia

Australian agriculture has been growing for years and currently feeds 60 million people around the world each year. In fact, more than 51,000 Australian agriculture businesses export their goods and services to locations around the world. Some of the largest crops include wheat, vegetables, fruit, and nuts. Australia also exports cattle, dairy, lamb meat, and wool, among other agricultural products. It’s a $155-billion-a-year industry, accounting for 12% of the GDP.

 

The Australian Mining Sector

Mining has been a driving force in Australia’s economy for many years, and its large influence continues today. Australian bauxite, alumina, and aluminium are exported around the world and used for building and construction, transport, packaging, and electrical infrastructure. Surprisingly, Australian coal provides around 30% of the world coal trade and is Australia’s largest energy export earner. Australia is the world’s second-largest gold producer (after China). It’s estimated that Australia has about 11% of the world’s Economic Demonstrated Resources of gold. The iron ore industry in Australia exports 85 to 90% of its production, sending the raw materials for steel production all around the world. Australia’s mining industry also exports diamonds, lead, zinc, nickel, uranium, and mineral sands.

 

 

Tourism in Australia

An important industry in Australia, tourism employees nearly 600,000 people. Popular tourist destinations include Sydney, Brisbane, Melbourne, Queensland, the Gold Coast, the Great Barrier Reef, and the Australian outback.

Backpacking is a major source of tourism; many of these backpacking tourists come from Western European countries. Domestic tourism is a huge market in Australia, particularly with caravan and camping holidays, mountain retreats, national parks, and surfing beaches. Most of Australia’s tourists come from New Zealand, China, the United Kingdom, the United States, Singapore, and Japan.

 

Australia's Banking Industry

The four “Big Banks” in Australia (Commonwealth Bank of Australia, National Australia Bank, Westpac Banking Corporation, and Australia and New Zealand Banking Group) are among the “World’s Safest Banks,” and the strength of the financial services industry has brought many businesses to the country. Important sectors of this industry include insurance, hedge funds, private banking, venture capital, payment systems, funds management, superannuation, and asset-based finance and leasing. 

The strength of the financial services industry and Australia has allowed other industries to grow up in a stable economic environment. For example, biotechnology has taken hold in Australia, thanks to the venture capital, a flexible regulatory regime, and world-class research facilities and scientists.

 

Media and Telecommunications in Australia

Australia consistently ranks high in press freedom, and the media industry continues to grow. In addition to the two national daily papers and the ten state and territory dailies, there are 37 regional daily newspapers and 470 other newspapers. There are 274 commercial radio stations as well as 341 publicly funded stations. 

Delivering competitive telecommunications to rural areas has been challenging. The large distances and small rural populations have made access difficult, sparking innovation in transpacific bandwidth and other developments.

 

3 Industries Expecting Growth in Australia

When making decisions about whether or not to set up business in a given location, it’s important to know which industries are expecting growth. The following Australian industries are currently growing or expecting future growth.

 

1. Healthcare & Pharmaceuticals

Doctors and nurses are currently in high demand in Australia, especially in regional parts of the country. There are plenty of opportunities for healthcare professionals with medical qualifications to work in Australia. Pharmaceutical manufacturing is a big industry in Australia. With exports of more than $4 billion, the industry comprises biomedical research, originator and generic medicine, and biotechnology firms.

The healthcare industry is one of Australia’s highest-performing sectors, growing at double the pace of the entire country’s GDP, and yet, many experts believe that this sector will continue to grow for the foreseeable future. Australia is an important medical tourism destination and a major exporter of health merchandise, such as over-the-counter pharmaceuticals and medical equipment.

 

2. Internet Publishing and Broadcasting

As telecommunications have improved in recent years, more and more Australians have migrated from television, newspaper, and radio to the Internet. There is great potential for the internet publishing and broadcasting industry in Australia as consumers look to Internet for streaming video, news, research, advertising, and more.

 

 

3. Universities and Other Higher Education

International student enrolments have been rising in recent years as student visas have been easier to obtain and educational innovation has improved. Revenue in education is expected to continue to rise, and jobs associated with higher education are expected to increase in the years ahead. 

How would your business fit in with the existing economic climate of Australia? Here’s how one entrepreneur successfully set up her business in Australia and literally took advantage of business by the beach.

 

Australian Small Business Success Story

Catriona Rose Lennie is a young fashion designer who was born and raised in the United Kingdom. Well-travelled and creative, Lennie cultivated a bohemian fashion sense and started a business called Catriona Rose. Her fabrics have appeared in such notable publications as Cosmopolitan, Look, and Harpers Bazaar. 

Lennie saw opportunity in the Glebe and Bondi beach markets in Sydney and decided to set up her business in Australia. Her clothing was far better suited to the sunny beaches of Australia than to her native England, and although she had to start from scratch with setting up her business, she found great success in Australia.

 

How to Set Up Business in Australia

Entrepreneurs know that success in business depends on many factors, but matching up your own resources with existing opportunity is one of the most important. If, like Catriona Rose, you can see opportunity in Australia for your products or services, making the move may be the best option for your business. What’s involved with setting up a business in Australia?

Register Your Company

Your company must be registered with the government in order to successfully remit taxes and comply with local regulations.

Comply with Local Tax Authorities

When you correctly set up your business to comply with local tax authorities from the very beginning, your business will run much more smoothly.

Establish a Branch, Local, or Registered Office

When you set up your business in Australia, you’ll need to establish a registered office. Using an existing firm like Altus for your registered office can save you time and money.

Manage Accounting and Reporting

If accounting and reporting regulations are different in Australia than they are in your home country, you’ll need to set up systems to deal with the differences. This can be done easily by a business consulting firm like Altus Financial.

Report Taxes

You have enough to worry about without reporting your own taxes. Focus on what you do best and delegate this task to someone else.

As you can see, business opportunity abounds in Australia. The stable economy, the global trade environment, the excellent education system, and efficient markets make for a great place to establish your business and take advantage of all that Australia has to offer.

If you’re in the beginning stages of planning a business move to Australia, or even if you’re just considering your options, feel free to contact us. We’re happy to answer your questions.