Did you know, the average weekly earnings of a full-time working adult in Australia is $1,737?
Are you looking towards doing business abroad, and you’re considering Australia? With a population of about 25.68 million, Australia is the sixth-largest country in the world. The country offers a whole lot of possibilities for doing international business.
Read along as this article will divulge the benefits of doing international business in Australia.
A Well-Regulated Business Environment
Unregulated business environments create opportunities for scammers and fraudsters to thrive. Investors risk losing their hard-earned money due to some loopholes in the constitution. In 2001 the Australian government made amendments and editorial changes to the Corporations Act.
This was to streamline regulations to maintain business integrity while protecting investors. Major changes were implemented, and as a result, cases of fraud and corruption became few. This shows how the government at large is committed to making the Australian market safe for investors.
High Disposable Income Per Household
Australia ranks among the top countries with the highest average disposable income per household. What does this mean when it comes to their purchasing power and spending habits? The average household net adjusted disposable income per capita is $32,759 a year.
It means that the country, unlike others around the world, can spend more money. This condition creates an ideal business environment for companies to thrive. When consumers have more disposable income, the demand for goods and services increases.
If the existing companies aren’t able to meet the demand, it creates an opportunity for more companies to invest. The government can offer incentives to make the market attractive for companies to venture in. The incentives might include R&D tax benefits, reduced corporate tax, and cheap capital loans.
Australia is among the countries with the lowest budget deficit. A budget deficit is when the expenditures surpass revenue ending up impacting the financial health of the country. This has been the case for several years, proving that the country controls its spending to avoid increasing taxes.
To further prove how resilient the economy has been, the economy has consistently shown a 3.3% annual growth since 1990. This means that the economy hasn’t declined in the past two decades. This is the ideal place to venture into the financial industry due to how the economy tends to influence the financial markets.
Do you remember when China’s economy dipped, affecting other nations too? Australia’s economy didn’t register any dip during the whole time and stayed on the positive side.
Proximity to Asia
Australia should be your priority if you want to start an overseas business that can easily access Asian markets. One of the greatest geographical advantages the country has, it’s the proximity to countries such as China, Malaysia, and Singapore. Part of the benefit is that the country can access labor personnel from those countries.
Asian countries have proved to be the manufacturing gurus due to factors that work to their advantage. If your business sources goods from Asian countries, you have to set up your business in a strategic country. That way, you will have reduced transport and logistics costs which can reduce your profit margins.
Australia is within the same time zone as Asian countries, making it easier to conduct business with those countries. You can communicate with your suppliers during the same business hours as yours.
As we all know, Australia was historically built on mineral resources. To enhance innovation in the country, the government came up with grant programs.
The programs seek to increase the urge for companies to concentrate on research and development to come up with new products. As a result, Australia has started being a hub of innovation with a recent boom in STEM-related fields.
Availability of Skilled Workforce
Yet again, Australia is among the top ten countries with the best higher education. The country has a 99 percent literacy rate, further proof of the kind of education offered in the country. This means if you are a business owner, you don’t need to be concerned about whether you’ll get the right talent.
Most people are multilingual in the county, perfect for global companies that want to expand their markets. As an investor, you will gain access to a pool of talent equipped with the right skills and mindset to drive your business to success. Seven Australian universities rank among the world’s top 100 universities.
If you intend to invest in Australia, consult Level Up Legal to get strategic legal advice about your business.
The country’s global ties have made it an ideal place to conduct business locally and on an international level. In 2020, Australia joined the RCEP, the world’s largest free trade agreement. The partnership holds about thirty percent of the global Gross Domestic Product.
Right now, the country is in talks with the UK, India, and EU to have a trading agreement. The UK and EU account for 13% of Australian trade. This makes Australia one of the best destinations for foreign investment.
Gain Competitive Advantage by Doing International Business in Australia
There is no doubt, Australia is the land of milk and honey when it comes to doing international business. The above benefits are compelling enough as to why you should consider doing business in Australia.
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