Global exports starts in Australia
Based on the Index of Economic Freedom, Australia is one of the easiest places to conduct business or export products and services. Australia’s political stability and regulatory framework accounts for the ease of doing business in the country. Around the globe, it is regarded as one of the most transparent and well-regulated business environments.
Australia is known for its strong and efficient regulatory environments, providing a business-friendly environment. The country ranks high in terms of legal rights, ease of setting up a business, and the soundness of its banks. It ranks 10th in the world for ease of doing business, and fourth when compared with economies of similar or larger populations. Of the 189 countries, it is 4th in getting credit and 7th for starting a business.
One of the key factors that created such environment is the quality of governance in Australia. Its strong governance—ranked as among the best in the world—allows it to grow its economy and provide financial security. This makes it attractive to multinational companies that are looking for new territories to expand their business or consider Australia as a base in the Asian region.
Every business endeavor has financial risk, but this is greatly reduced in Australia because of its low financial risk factors. Its finance and banking regulatory system is also ranked highly.
Australia’s financial growth
Currently, Australia’s total assets amount to almost Aus$6.4 trillion, over four times Australia’s nominal GDP. The sector has grown 10 percent annually over the past 2 decades, making it one of the highest growth sectors.
It is also good to retire in Australia as it is known to be the world’s fourth largest superannuation system, which is also a major driver behind Australia’s significant funds management industry. Over the next two decades, its pool of assets is expected to increase by 180 percent.
Businesses also find themselves making more profit, as Australia possesses strong financial market turnover. And outside Japan, it is the largest liquid stock market in the region. In fact, it is the 24th largest in the world, and that means a total capital exceeding US$248 billion in September 2018.
When it comes to debt securities, Australia remains the 3rd largest in the Asian region. In the issuance of both international and domestic debts, Australia leads the region. It has more international debt securities outstanding than any other Asian nation.
Challenges in export promotion
Despite the many advantages in doing business in Australia, it has its own share of hidden challenges that every business that hopes to do well in the market should know. However, with the right support, these challenges can be overcome.
For instance, the business culture and regulations in Australia are similar to the UK’s, but they are not exactly alike. For this reason, businesses should adapt their business plans accordingly. One of these is time. The Australian east coast is nine hours ahead of the UK in summer and 11 hours in winter. The travel time also requires 24 hours.
Export finance and taxation
As for all companies, tax is always considered an issue. The country places 10 percent tax on most goods and services. Goods that are worth more than AUS$1,000 requires a custom import declaration, requiring the importer to pay duty and a custom import processing fee.
Finding your local staff
Although the unemployment rate in Australia is under 5%, some industry sectors like mining and oil and gas have difficulty finding skilled workers.
There are also differences in terminology, higher insurance liability arrangements, and health and safety culture. These issues also vary from locality to locality, and some inflexibility is also observed in these markets. The rules and regulations in Australia are a bit rigid. There are certain regulations that must be observed.