Establishing your Business in Australia - webinar

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Establishing your Business in Australia –

What you need to know

IntroductionPresentations 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

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Why Australia?

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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

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UK comparison with AustraliaAustralia UK

Population 23 million 64 million

Global GDP ranking 12th 6th

GDP Growth (Yr to June 2013)

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

Sources: IMF, WEF, World Bank, Aust. Bureau of Statistics, UK Office of National Statistics

In partnership with:

Australia: it’s bigger than you think7

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

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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

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UKTI Australia

How we can help

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.html

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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

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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/organisations/uk-trade-investment-australia

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Trade Missions 2013South West Trade Mission28th to 29th October

Rail Mission27th to 29th November

West Midlands Trade Mission2nd to 6th December

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Establishing your business in Australia

Presented by Stefanie Lowe

Director Penguin Management Services Pty LtdE: [email protected]

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.

Summary

Company structures

Taxation requirements

Employment

Intellectual property & domain names

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.

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

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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)

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Taxation requirements

Company must obtain apply for:

•ABN – Australian business number•TFN – Tax file number•GST – Goods and services tax•PAYG – 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

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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

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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

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Presented by:

Lillian Ajuria Solicitor & Notary Public

Accredited Specialist in Immigration Law

Temporary Work (Skilled) Subclass 457 visa

General information

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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

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Types of Sponsorship

1. Offshore business – not operating in Australia

2. Business operating in Australia < 12 months

3. Business operating in Australia > 12 months

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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

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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.

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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.

1. Standard Business Sponsor (SBS)

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• 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

2. Nomination (position)

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• Skills of the applicant – degree/relevant experience requirements

• No age limit• English requirement – unless exempt (see below)• Health/Character• Members of the family unit• Health Insurance/Medicare

457 Visas are granted for up to 4 years

3. Visa Application

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• 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.

3. Visa Application- English requirement

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• 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.

Visa Conditions

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• 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

4. Sponsorship Obligations and Monitoring

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• 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.

Changes from 1 July 2013 continued

Labour Market Testing (LMT)

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• 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

Immigration lodgment fees

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Ajuria Lawyers Ajuria LawyersLevel 4, 39 Martin Place Level 40, 140 William St Sydney NSW 2000 Melbourne VIC 3000+61 (0) 2 9283 9009 +61 (0) 2 9283 9009

[email protected]

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Inbound Corporate Banking Solutions- UK Clients

Prepared for UK Trade and Investment (UKTI)

Overview – Corporate Referral PresentationInward Corporate Referral Program

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SummaryWhy 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

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Corporate Referral Management

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

Overview of CBA Offering

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Corporate Referral ManagementServices 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.

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Corporate Banking Application process

Client1. Corporate Banking requirements identified in Australia

Client2. Contact Abdul Khan who will discuss Corporate Banking solutions for your Australian Business

CBA3. Abdul Khan sends out Application pack via email

Client 4. Complete application forms and scan email to Abdul Khan for proof checking

Client5. Documents sent to Abdul Khan via post

CBA6. Account opened within 24/48 hours and a Relationship manager assigned

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Contact details

Abdul KhanCorporate 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 6715M:  +61 403 602 832 E:  [email protected]

Our vision is to excel at securing and enhancing the financial wellbeing of people, businesses and communities.