Doing business in Australia

Australia has six states and two self-governing mainland territories, and law-making is split between the federal (Commonwealth) Parliament and the state and territory parliaments. Federal law governs companies, income tax, GST, competition, most employment, privacy in the private sector, immigration, customs, foreign investment and intellectual property. States and territories govern property and land, stamp duty, land tax, payroll tax, workers' compensation, long service leave and many occupational licences. Key federal authorities are the Australian Securities and Investments Commission (ASIC), the Australian Taxation Office (ATO), the Treasury and the Foreign Investment Review Board (FIRB), the Australian Competition and Consumer Commission (ACCC), the Fair Work Commission, the Office of the Australian Information Commissioner (OAIC), AUSTRAC, the Australian Border Force and IP Australia; each state and territory has its own revenue office.

Key facts

Corporate income tax

30% federal standard rate; 25% for base rate entities

GST

10% federal standard rate

Main entity form

Proprietary company (Pty Ltd), at most 50 non-employee members

Foreign investment

Generally open; Treasurer approval above thresholds (AUD 347 million for most business investments) and for national security or foreign government investments

Currency and exchange controls

Australian dollar, freely floating; no exchange controls

Data protection

Federal Privacy Act 1988 and Australian Privacy Principles; OAIC

New York Convention

Party

Key labour fact

Superannuation guarantee of 12% of ordinary time earnings

Foreign businesses usually incorporate a proprietary company or register their existing company as a foreign company with ASIC under the federal Corporations Act 2001. Company registration is national, so one registration covers every state and territory. Acquisitions above monetary thresholds, or in sensitive sectors, need federal foreign investment approval before completion.

Key facts

• A Pty Ltd company is the most common type for smaller businesses; it cannot offer shares to the public, and at least one director must ordinarily live in Australia, which foreign groups often meet by appointing a local manager or nominee.

• An overseas company that trades directly in Australia must register as a foreign company with ASIC, obtain an ARBN and appoint a local agent who is answerable for its filings.

• Directors must apply for a director ID before they are appointed.

• Check the federal foreign investment rules before signing: notifiable deals need the Treasurer's approval before completion, the usual business threshold is AUD 347 million, and national security businesses and foreign government investors face approval regardless of value.

• Get an ABN at the start: it is needed before GST registration and is also used for payroll and dealings with customers and government.

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Key facts

• Federal company tax is 30%, or 25% for base rate entities, and the standard income year runs 1 July to 30 June.

• GST is 10% and registration is compulsory from AUD 75,000 GST turnover, including for offshore sellers of digital products, services and low-value goods to Australian consumers unless all sales go through a marketplace.

• Interest paid abroad bears 10% federal withholding tax, and unfranked dividends and royalties 30%, unless a treaty rate is lower, so check profit extraction plans against the relevant treaty.

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Key facts

• The 12 National Employment Standards are the floor for employees, and an industry award or enterprise agreement will often set higher pay and conditions, so identify which instrument covers each role.

• From 1 July 2026 the national minimum wage is AUD 26.44 an hour (AUD 1,004.90 a week) and award wages rose 4.75%; the Fair Work Commission reviews rates every year, so check pay each July.

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Foreign purchases of land and residential property are controlled through federal foreign investment rules and state and territory surcharges. A federal research and development tax incentive is the main general incentive.

Key facts

• Foreign buyers of homes face a federal ban on established dwellings, now running to 30 June 2029, and state and territory stamp duty and land tax surcharges.

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• Record foreign interests in land and water on the federal register, separately from any FIRB approval.

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• The federal R&D tax incentive is the main general incentive, with a refundable offset for smaller companies.

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• Suppliers to the federal government work under the Commonwealth Procurement Rules; each state has its own rules.

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The Australian dollar floats freely and there are no exchange controls, so capital and profits can move in and out subject to tax and reporting. Banks are supervised by APRA and the Reserve Bank of Australia is the central bank. Account opening involves customer identification under the federal anti-money laundering regime run by AUSTRAC.

Key facts

• Expect full customer and beneficial owner verification when opening a business account; prepare corporate documents and identification for directors and owners.

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• Cash transactions of AUD 10,000 or more and suspicious matters are reported to AUSTRAC by the reporting entity as a matter of routine.

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Customs is federal and administered by the Australian Border Force under the Customs Act 1901, with GST collected at the border. Australia has a wide network of free trade agreements and strict biosecurity controls.

Key facts

• Use free trade agreement preferences where goods meet the rules of origin; Australia's network covers most major trading partners.

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• Biosecurity rules are strict and can stop or delay food, agricultural and timber products; check import conditions before shipping.

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Key facts

• Businesses above AUD 3 million turnover, and some smaller ones, must comply with the Australian Privacy Principles and report serious data breaches to the OAIC and affected individuals.

• There is no general data localisation rule, but an Australian business generally stays accountable for personal information it sends to overseas service providers.

• Since 10 June 2025 individuals can sue for serious invasions of privacy, which raises the stakes of mishandling personal data.

• Report any ransomware payment to the Australian Signals Directorate within 72 hours if turnover exceeds AUD 3 million, and check whether any assets are critical infrastructure.

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Intellectual property is federal law. IP Australia grants patents, trade marks, designs and plant breeder's rights, while copyright arises automatically. Australia belongs to the main international filing systems.

Key facts

• File trade marks with IP Australia early, or designate Australia through the Madrid Protocol; registration lasts 10 years and is renewable.

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• Patent protection is through the standard patent, which lasts up to 20 years (25 for pharmaceuticals); innovation patents could not be filed after 25 August 2021.

• Copyright needs no registration, so ownership should be secured in employment and contractor agreements.

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Foreign acquirers may also need FIRB approval, and takeovers of listed and larger companies follow federal takeover rules. Insolvency is federal and offers administration, liquidation and a small business restructuring process.

Key facts

• Since 1 January 2026, deals meeting the ACCC notification thresholds must be notified and approved before completion; build this into the timetable.

• Foreign buyers often need foreign investment approval as well as ACCC approval; the two frameworks are independent, so plan for both in parallel.

• Directors of distressed companies face insolvent trading liability, so restructuring options such as voluntary administration should be considered early.

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• Competition law applies to day-to-day commercial conduct as well as deals, and cartel conduct can be criminal.

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Federal law criminalises foreign bribery, and 2024 legislation made companies liable for failing to prevent it unless they have adequate procedures. Whistleblower and directors' duty rules sit in the Corporations Act, and the AML regime is being extended to lawyers, accountants and real estate agents.

Key facts

• Review anti-bribery procedures for agents and intermediaries, as a company is liable for failing to prevent foreign bribery unless its procedures were adequate.

• Groups with AUD 100 million or more in revenue must publish modern slavery statements each year.

• Large proprietary companies need a whistleblower policy, and directors and officers have personal health and safety due diligence duties under state and territory law.

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• Lawyers, conveyancers, accountants, trust and company service providers, real estate businesses and precious metals dealers have AML/CTF obligations from 1 July 2026 and must enrol with AUSTRAC.

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Commercial disputes go to the Federal Court of Australia or to state and territory Supreme Courts, several of which run specialist commercial lists. International arbitration is governed by federal law based on the UNCITRAL Model Law, while domestic arbitration is governed by uniform state and territory Acts. Australia is a party to the New York Convention.

Key facts

• Choose the court carefully: the Federal Court handles federal law claims, while state and territory Supreme Courts hear general commercial disputes.

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• International arbitration seated in Australia follows the UNCITRAL Model Law under federal law; domestic arbitration follows state and territory Commercial Arbitration Acts.

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• Foreign arbitral awards are enforceable under the New York Convention, and ACICA is the main local institution.

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• Judgments from listed countries and New Zealand can be registered; others require new proceedings, so consider enforcement when choosing a forum.

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