Establish the effective structure required to grow your business in Australia.
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:
To establish a business in Australia, global companies typically use either a branch operation of an overseas company or an Australian incorporated entity. The decision will depend upon the type of entity, the expected life of the entity, and the expected method of repatriating profits.
There is no authorised capital requirement in Australia, so a company can be incorporated for just $1. Funding is typically provided by way of local debt, subscribed capital or a loan from the parent entity. If funding is by way of loan from the parent company, transfer pricing and thin capitalisation rules need to be considered. Withholding tax may be deducted from any interest payments.
A new business must apply for both an Australian Business Number (ABN) and Tax File Number (TFN). If the business is run through an Australian incorporated entity, then it will be provided with an Australian Company Number (ACN). The business will also need to register for Goods & Services Tax (GST - our version of VAT), employee taxes called PAYG Withholding, and possibly Fringe Benefit Tax (FBT) if non-cash benefits are provided to employees. If wages are above a certain threshold, then you’ll need to register for Payroll Tax in each State.
The business may have reporting obligations to both the Australian Tax Office (ATO) and the Australian Securities & Investment Commission (ASIC).
Small, foreign-owned proprietary limited companies may be exempt from audits and lodging financial statements.
Minimum employee entitlements are legislated in a national minimum standard under the Fair Work Act, but employers may negotiate standards above these minimums with employees. Certain industries are governed by their own industry awards.
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 after 10 years of service with pro-rata payments required after five years of service in most instances. Unused leave entitlements accumulate.
Contributions are required to a superannuation fund at a specified percentage of the employee’s salary or wage. Superannuation funds are typically of an accumulation type rather than a defined benefit.
Occupational Healthy & Safety laws exist that specify minimum safety standards. Employers are required to hold a certificate of insurance for Workers Compensation for any injury or illness that occurs through the person’s employment.
Transfer pricing laws are in place to discourage any shifting of profit from Australia to overseas entities. Any related party transaction needs to be documented and margins must be 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 to avoid double taxation.
Australian companies require at least one local Director. We can review your business and accept a Directorship in limited circumstances or refer you to a suitable person. We also provide an outsourced corporate compliance service.