Doing business in Australia

Assisting you to establish the structure required to grow.

Camphin Boston is dedicated to partnering with key entrepreneurs, companies and institutions to build powerful and sustainable businesses in Australia. We work hand-in-hand with a number of specialist Australian institutions to provide the following services:

  • Attending to all accounting, taxation and statutory obligations when conducting business in Australia

  • Advice and assistance with Australian visa options and immigration requirements

  • Advice on the appropriate business structures, whether it be establishing an Australian company, registering as a foreign company or acquiring an Australian company

  • Advice and assistance with conducting a business in Australia including information on employment conditions, taxes, statutory reporting, intellectual property laws and business practices regulation

  • Assistance with Government grants, R&D tax incentives and finding and developing employees

Mark Edwards

Partner

Justin Woods

Partner

Let's talk about Doing Business in Australia

  • Global companies will typically use either a branch operation of an overseas company or an Australian incorporated entity to conduct operations in Australia. The entity chosen will depend upon the expected life of the entity, type of operation conducted and expected method of repatriating profits.

  • Funding is typically provided by way of local debt, subscribed capital or loan from the parent entity. There is no authorised capital requirement in Australia so a company can be incorporated with $1 capital. If funding by way of a loan from the parent company then transfer pricing and thin capitalisation rules need to be considered and withholding tax may be deducted from any interest payments.

  • Transfer pricing laws are in place to discourage shifting of profit from Australia to overseas entities. Therefore any related party transaction needs to be documented and margins within acceptable limits.

    Withholding tax may also be payable if royalties, interest or unfranked dividends are paid to a foreign entity. Double taxation agreements exist between Australia and many other nations top avoid double taxation.

  • New businesses need to apply for an Australian Business Number (ABN) and Tax File Number (TFN).

    If the business is run through an Australian incorporated entity then the company will be provided with an Australian Company Number (ACN).

    The business will also need to register for Goods & Services Tax (our version of VAT) and employee taxes called PAYG Withholding and possibly fringe benefits tax if non-cash benefits are provided to employees.

    If wages are above certain thresholds then registration for Payroll Tax in each state will be required.

    The business may have reporting obligations to both the Australian Tax Office and the Australian Securities & Investment Commission.

    Exemptions may be available for lodgement of financial statements and audit for small foreign-owned pty ltd companies.

  • Minimum employee entitlements are legislated in a national minimum standard under the Fair Work Act.

    Employers may negotiate standards above these minimums with employees and certain types of industries may be governed by an industry award.

    The minimum standard for employee leave entitlements is 20 days p.a. holiday leave, 10 days p.a. personal/sick leave and 8.67 weeks long service leave after 10 year of service with pro-rata payments required after 5 years of service in most instances.

    Unused leave entitlements accumulate. Contributions are required to a superannuation fund at a specified % of the employee’s salary or wage.

    Superannuation funds are typically of an accumulation type rather than a defined benefits type.

    Occupational Health & Safety laws exist that specify minimum safety standards and employers will be required to hold a certificate of insurance for workers compensation for any injury or illness that occurs through the person’s employment.