In our current world of a globalised economy, businesses are constantly seeking new opportunities for growth and expansion. Choosing the right location for an international business has become a critical factor for success. So why is starting an international business in Australia such a good idea?
The land down-under is full of vast opportunities and remarkable potential. Known for its breathtaking scenery and diversified wildlife, Australia not just an attractive vacation spot but also a booming international commercial center. With its stable economy, strategic location and business-friendly environment, Australia has become a great place for businesses looking to grow their global footprint.
Australia also ranks as the 12th largest economy in the world and the 5th largest in the Asia-Pacific region. The nation’s GDP exceeds 1.9 trillion US dollars, making it clear that Australia’s economic prowess is a force to be reckoned with.
Let’s delve further into the business environment of Australia.
Overview of Australia’s economy
Australia is known for possessing a stable and resilient economy.
The track record of consistent economic growth and commitment to innovation gives global players a strong foundation for gaining a foothold.
Main industries
Similar to any country, Australia has its own key industries that continue to drive growth.
The mining sector plays a major role in Australia’s economy because of the abundance of resource of natural origin, such as gold, iron ore and coal. These resources have a strong global demand, which positions Australia as a leading exporter in the mining industry – this ultimately attracts substantial foreign investment.
Next in line is Australia’s finance sector.
Their sophisticated banking system and robust regulatory framework has established itself as a trustworthy regional financial hub.
And their reputation is phenomenal.
Some of these include the Commonwealth Bank of Australia, Australia and New Zealand Banking Group, along with the National Australia Bank – all which facilitate international trade and investment. Knowing that Australia has such well-developed financial services provides ample opportunities for international business in Australia.
The technology industry has also been gaining momentum as of recent years. And the same can be said for innovation, with the Australian Bureau of Statistics report over half of all businesses being innovation active. Combine that with the nation’s emergence of many tech start-ups and there’s a clear image of the country’s helpful ecosystem which supports the tech industry.
Business friendly regulations
Yes, the location matters and so do the opportunities for growth.
But none of this is possible without business friendly regulations which encourage and welcome international entities into the country – all without major difficulties. The Australian government places emphasis on transparent regulations and has implemented policies to attract foreign investment.
And it’s not just for mainstream industries. For example, the government introduced a Digital Games Tax Offset, which provides a large chunk of refundable tax rebate to encourage international businesses to develop digital games in Australia.
Having a transparent list of policies is essential for international businesses to ensure no unpleasant surprises are found too late.
The location & infrastructure
Australia serves as a gateway to the Asia-Pacific region, positioning it as a desirable destination for international business ventures. Because its located amidst the Indian and Pacific Oceans, Australia has close proximity to a number of the world’s most rapidly expanding markets including China, Japan, South Korea and Southeast Asian countries.
The cultural diversity of Australia and closeness to Asian markets helps the country serve as a bridge between the east and west, making trading feel seamless.
Australia is also known for it’s high standard of transportation infrastructure, which is a great bonus to support international business activities. The country boasts a network of modern airports, which connect its major cities with destinations around the world through Sydney Airport, Cairns Airport, Melbourne Airport, Adelaide and Brisbane Airport.
Such accessibility allows business personnel to travel quickly and simplifies the transfer of products in destinations including Hong Kong, Singapore, Kuala Lumpur, Tokyo, Middle East and North America. Combine that with Australia’s robust system of shipping ports that play a vital role in global trade and you have a great solution for the handling of substantial cargo volumes.
This infrastructure can help new businesses gain competitiveness, so long as they have a plan for appealing to the right demographic in Australia and overseas.
The quality of life
Many business leaders overlook the important that quality of life holds when selecting a country for expansion.
Understanding Australian values and their quality of life gives a good indication of what they look for in a product or service. Additionally, if you end up relocating or hiring staff in Australia it’s essential to know what you can expect there!
Australia has a high standard of living. From its quality healthcare system to its multicultural society, the country provides an environment conducive to both professional success and personal well-being.
And believe it or not, having a quality healthcare system is really important for business as well! Having a universal healthcare system such as Medicare, which provides affordable and accessible services ensure your workforce has no difficulties in taking care of their health.
Australia also has a very stable political system which is essential for international businesses. There are many countries where unstable political systems cause businesses to be in very unfavourable positions, often causing them close as a result of geopolitical situations.
But Australia operates under a democratic framework which not only maintains transparency, but also predictability for businesses operating within its borders. There’s also the added bonus of minimal corruption in Australia and consistent high rankings in global corruption indices.
As of 2022, Australia scored 75 out of 100 points in the Corruption perceptions Index. The global average score was 43, with zero being the worst and 100 being the best. So businesses can rest assured they are operating in an environment where bribery and corruption won’t interrupt their operations.
How to expand your international business into Australia
Flex spaces are definitely the safest and quickest method of global expansion. Australia is no stranger to the idea of flexible workspaces and there are many options available, but be sure to choose the right one.
Offices
A secure fully-serviced private office is a great avenue for expansion if your business is searching for a physical and credible presence. Serviced offices offer a professional environment and cater to various team sizes, so there’s no need be concerned over renting a large space and risking underutilised office space.
Serviced offices have flexible lease terms, which means lengthy lock-in contracts are out the window and businesses can comfortably secure their office space. They are accompanied by a range of amenities such as secure Wi-Fi, a dedicated receptionist to answer your calls, secretarial support, mail handling, storage space and more.
But most importantly, choose an address that will represent your business the best! A prestigious address such as International Towers Barangaroo in Sydney, will deliver a great impression and enhance your brand image.
Virtual office
Opt for a virtual office solution if your preference is to work remotely while maintaining a professional presence. A virtual office gives businesses a prestigious address which can be used for all legal obligations, websites, emails and other marketing purposes.
Having an Australian address is particularly important, especially because of the country’s culture of supporting local businesses. So if you don’t need a physical space, then certainly consider a virtual office.
Coworking space
Many businesses in Australia operate under hybrid work conditions and it’s important recognise that flexible work is common in this country. If you’re looking to hire top talent it’ll work in your favour to have hybrid capabilities, and a coworking space can do just that.
Coworking spaces have many amenities and the concept of choosing your desk on the day is well-received in Australia.
Should my business expand into Australia?
If you’re looking for a continent with phenomenal infrastructure and strong business supporting policies – then Australia is an ideal destination.
The government offers many support schemes to assist businesses and has several incentives in place for companies looking to expand into Australia. But if you’re still unsure on the prospect of Australia, then the safest method for expansion are flexible workspaces.
The low-costs and minimal risks associated with flexible spaces make it superior option to the traditional office space.
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