As an international business owner, you might look at Australia as the land of opportunities a-plenty, and in many ways, you’re right. The country boasts a growing economy and robust tourism, agricultural, mining and service industries, that export to countries all around the world.

Entering into a new market can be challenging and time-consuming. With international expansions naturally come positives and negatives. That’s why we’ve put together a list of challenges you’ll face when expanding into the Australian business market.

Culture in Australia business

Australian working culture is very different from other major countries in the world. Locals are world-renowned for their modesty and work ethic. Decisions can also take a lot longer than you’re used to as the decision-making process funnels from the bottom of the food chain to the top. Office culture is laid back but busy and focused, and you’ll find that after-work social events are usually casual and less business-like.

Leave your suit and tie at the door and expect a corporate culture that’s less formal than you’re used to.

Location

If you’re based in the US, South and Central America, the UK or anywhere else in Europe, you need to be aware that Australia is a considerable distance from home. It’s not practical jumping on a quick flight home to visit family for a long weekend.

The geographic distance will also make international conference calls a bit of a challenge. Sydney is 16 hours ahead of New York, 14 hours ahead of Rio de Janeiro and 11 hours ahead of London.

When considering the Australia business market for your next expansion opportunity, you’ll very quickly find that the locals are friendly and inviting, so making friends will be easy.

How a company is formed

When expanding into Australia, you’ll also be required to choose from several business entity types. There are inherent differences between each kind that dictate regulations about employee entitlements. You’ll need to do your due diligence in making sure the structure you choose is the right one for your business. If you don’t, you could be up for a handful of legal problems down the track.

If like many businesses, the prospect of compliance is too daunting to tackle, another solution would be to employ the help of a PEO agency like Australia PEO. We take on the task of employment and payroll for you and your business, so you don’t even have to set up a physical entity in Australia at all. Getting it right the first time around minimises your risk of error and saves you time and money.

Tax

No matter which country you’re setting up in, the tax system will naturally be different than the system you’re used to. You must research the laws and get some legal advice from a reputable company on the ground here in Australia.

Another aspect of employment in Australia is superannuation. It’s the equivalent of the 401K in the United States and is designed to help secure a worker’s financial security for retirement. On top of Super, you’ll be required to pay corporate income tax (30%) and a handful of other taxes like Goods and Services (GST).

If tax compliance is all too much to handle, Australia PEO can do all the tax work for you, so that you can concentrate on growing your professional network and business here in Australia.

Australian business challenges summarised.

Expanding into Australia can present itself with a multitude of challenges, but by employing the help of a Professional Employment Organisation like Australia PEO, you’ll have access to expert advice from professionals who know Australia employment and business regulations best.

Are you looking for more information about Australia business? Call us today to find out how you can achieve success in the Australian business world compliantly and with minimal risk.