Western Australia's Business Environment
Western Australia offers a business environment which encourages growth and prosperity. With low sovereign risk, pro-development government policies, and a highly skilled and innovative workforce, doing business in Western Australia is easy and rewarding.
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Banking and Finance
Australia has a mature and sophisticated banking and financial system with the Reserve Bank of Australia (www.rba.gov.au) being the main regulatory authority. All the major Australian banks, together with many international banks, have located in Western Australia to take advantage of the investment and business opportunities within the State, Australia+A10 and the Asia-Pacific.
Financial Services
Australia’s financial markets rank among the most mature and efficient in the world. Australia has deep and liquid trading markets in equities, foreign exchange, futures, swaps, options and a wide range of derivative products."
- Australian Foreign Exchange Market - is ranked eighth in the world by turnover, and the Australian dollar is the seventh most actively traded currency. Australia's exchange rate policy was ranked first in the world by the IMD World Competitiveness Year Book 2003 in its support of competitiveness of enterprises.
- Australian Securities Exchange (ASX) - The ASX (http://www.asx.com.au/) assists listed companies to raise capital and provides exchange-traded and over-the-counter financial services to institutions throughout the Asia-Pacific region and globally.
Specialised Financial and Investment Institutions
Other than banks, there are a range of financial and investment institutions available to foreign investors, these include:
- Permanent Building Societies - cooperative non-profit institutions whose primary function is to provide mortgage financing for owner-occupied housing. For a list of Permanent Building Societies in Western Australia please refer to www.yellowpages.com.au (keyword - "building societies").
- Corporate Lending Institutions - provide private equity and commercial finance for project start-ups and expansions, including infrastructure finance, equipment finance, commercial lending solutions and mezzanine finance. For a list of corporate lending institutions in Western Australia please refer to www.yellowpages.com.au (keyword - "finance").
- Credit Unions - mutual non-profit institutions serving primarily the borrowing and lending needs of members. For a list if Credit Unions in Western Australia please refer to www.yellowpages.com.au (keyword - "credit unions").
- Finance Companies - Providers of short to medium term financing for the household and small-business sectors. The principal forms of lending are instalment credit for retail sales, personal loans, housing finance, wholesale finance, factoring, lease financing, and commercial and property development loans. For a list of finance companies in Western Australia please refer to www.yellowpages.com.au (keyword - "financiers").
- Insurance Offices - provide a range of life and general insurance coverage to individuals and businesses. For a list of Insurance Offices in Western Australia please refer to www.yellowpages.com.au (keywords - "insurance agents" or "insurance brokers").
- Export Finance and Insurance Corporation (EFIC) - a statutory corporation owned by the Commonwealth Government of Australia. It provides insurance of exporters against non-payment by overseas buyers, guarantees to Australian banks of finance provided to Australian exporters, and loans to overseas buyers of Australian capital goods and services. For further information, please refer to www.efic.gov.au.
Business Structures
There are a number of different ways that a business can be legally established in Western Australia, these include:
Company
A subsidiary company can be established either through incorporation or by acquisition of a shelf company. A foreign company may establish a branch in Western Australia by registering as a foreign company. While a "company" offers investors limited liability, it is not uncommon for finance providers to request personal guarantees from major shareholders and directors. Reporting of performance data and financial position are required annually, as a minimum with additional requests for information being at the Australian Securities and Investment Commission's (ASIC) discretion. Detailed information on starting and running a company can be obtained from ASIC (www.asic.gov.au).
Partnerships
Any two or more individuals or companies who intend to carry on business together with a view to sharing profits may form a partnership, the name of which need only be registered where it does not reflect the name of the partners. A partnership is not a separate legal entity and as such all partners are jointly and equally liable. Profits are divided proportionately to each partner and tax is calculated accordingly. Additionally, the partnership is also required to lodge a group tax return. Partnership names can be registered with the Department of Commerce (https://bizline.commerce.wa.gov.au/bnonline/).
Sole Proprietorship
Where a sole proprietor intends to conduct the business under a name other than his or her own name, that name must be registered. Conducting business as a sole proprietor offers simplicity as only a single income tax return needs to be lodged with regulating bodies. All business revenue and expenses are to be included in the owners personal tax return and income tax will be calculated at the appropriate tax rate. The proprietor is personally liable for all business debts. Business names can be registered with the Department of Commerce (https://bizline.commerce.wa.gov.au/bnonline/).Trusts
There is no requirement to separately register the name of a trust. The name of the trust is usually provided for in the trust deed. The advantage to establishing a trust is the restriction of creditor access to assets, however, a personal guarantee is often sought from either the trustee or major benefactors.
Joint Ventures
A joint venture is usually constituted by a formal agreement which specifies the rights and obligations of all parties. A joint venture may be incorporated, by each party subscribing for shares in a joint venture company or unincorporated, where the parties agree by contract to a particular arrangement.
Further Information
For further information, please refer to: http://www.austrade.gov.au/Invest/Doing-business-in-Australia/default.aspx
Legal System
The legal system in Australia was developed from British law. Much of the law is codified, but English common law remains important in many areas. Each of the States and Territories has its own court system and a federal system exists to deal with matters over which the Federal Parliament has jurisdiction. The court system in Western Australia includes the Supreme Court, District Court, Courts of Petty Session, Local Courts, Children’s Courts, and Family Courts.
National Investment Policy
In recognition of the contribution that foreign investment has made and continues to make to the development of Australia, the Commonwealth Government's approach to foreign investment policy is to encourage foreign investment consistent with community interests. In the majority of industry sectors, smaller proposals are exempt from notification to the Foreign Investment Review Board (www.firb.gov.au) and larger proposals are generally approved unless judged contrary to the national interest.
Political System
Australia's system of government is based on the liberal democratic tradition, which includes religious tolerance and freedom of speech and association. Australia has a three-tier (Commonwealth/Federal, State, and Local) system of government.
- Commonwealth/Federal Level - The Australian Parliament (the legislature) and Government is responsible for all matters of National interest such as foreign affairs, immigration, defence, post and telecommunications, pensions and social security, census and statistics, coinage and banks. Parliament House is located in the city of Canberra within the Australian Capital Territory. Australian Government Departments, many Government Agencies and The Lodge (one of the official residences of the Prime Minister) are also located in Canberra. Mr Kevin Michael Rudd was sworn in as the 26th Prime Minister of Australia on 3 December 2007.
- State Level - The six (6) State and two (2) Territory governments are responsible for schools, police, gaming, hospitals and most community services.
- Local Level - Approximately 750 Local Governments Authorities are responsible for their respective district matters such as hospital and nursing services, kindergartens, local community services, local roads, sanitation and disposal of refuse.
Professional Services
Foreign companies investing in Western Australia can gain access to a wide range of experienced business support services.
Legal Firms
There are several prestigious, international legal firms in Western Australia which specialise in commercial law, trade practices, intellectual property, environmental law, and taxation. For a list of organisations in Western Australia please refer to www.yellowpages.com.au (keywords - "taxation law", "workers compensation", "employment and industrial services", "business law", "solicitors").
Accounting Firms
The world’s six (6) largest international accounting firms are found in Western Australia. The services offered include auditing, taxation, management consultancy and business services. For a list of organisations in Western Australia please refer to www.yellowpages.com.au (keyword - "accountants and auditors").
Business and Professional Organisations
There are numerous organisations that can assist with business development in Western Australia, including the Association of Mining and Exploration Companies, Western Australian Chamber of Commerce and Industry, Business Councils and Industry Associations. For a list of organisations in Western Australia please refer to www.yellowpages.com.au (keyword - "business and professional organisations").
Taxation
The Commonwealth Government, which is the major taxing authority, solely imposes income tax. The Commonwealth also receives revenue from indirect taxes: sales tax, customs and excise duties, fringe benefits tax, as well as taxes levied on natural resources projects such as the petroleum resources rent.
The State Government of Western Australia derives most of its revenue from payroll tax, stamp duties, financial institution duties, debits tax and land tax. Additionally, substantial revenue is raised through oil and mineral royalties and business franchise fees.
At the local level, annual charges known as "municipal rates" are levied on the owners of real estate. The revenues are used to finance essential services such as garbage disposal, street maintenance, recreational facilities, parks and sporting amenities.
For further information on taxation please refer to the Australian Taxation Office (www.ato.gov.au/businesses) and the Western Australian Department of Treasury and Finance's Office of State Revenue (www.dtf.wa.gov.au/cms/osr_index.asp).
Workforce
Industry has access to a highly skilled workforce of over one million people. Almost half of Western Australian workers have secondary or tertiary qualifications. For further information, please select from the following links:
- Executive Recruitment and Employment Agencies - A wide range of employment firms can be found in Western Australia to assist foreign companies of all sectors with their staffing needs. For a list of agencies please refer to www.yellowpages.com.au (keyword - "employment services").
- Chamber of Commerce and Industry of Western Australia (www.cciwa.com) - is the State’s main employer advocate body.
- Chamber of Minerals and Energy of Western Australia (www.cmewa.com.au) - represents the collective interests of companies involved in minerals and energy commodities, exploration, production and processing in Western Australia.
- Department of Education and Training (www.det.wa.edu.au) - responsible for planning the long-term development of the vocational education training system to meet current and future needs of industry, the community and regional areas.
- Western Australian Industrial Relations Commission (www.wairc.wa.gov.au) - established under the Industrial Relations Act 1979 to prevent and settle industrial disputes within Western Australia.
- Labour Relations in Western Australia (www.commerce.wa.gov.au/labourrelations) - information on industrial relations, working conditions, wages and salaries for employees in Western Australia is available from the Department of Commerce.
- WorkCover Western Australia (www.workcover.wa.gov.au) - the State Government body responsible for administering workers' compensation legislation in Western Australia.
