Bussiness in Germany


Australia Economy

Australia has one of the world's largest economies and an annual gross domestic product of $1.525 trillion US (2014). Australia had the 12th largest GDP by nominal GDP and the 15th largest GDP per capita based on purchasing power parity (PPP). It is also the 19th largest global importer and exporter.

The Australian service sector makes up 68 percent of its annual GDP. While mining and agriculture come in as a distant second, around 12 percent of GDP all together, these products form the backbone of much of Australia's economic growth and they are exported primarily to the East Asian market.

The Australian Securities Exchange in Sydney is the ninth largest, in terms of market capitalization, stock exchange in the world. The national currency of Australian is the Australian dollar. Australia is also a member of the APEC, G20, OECD and WTO. The country has free trade agreements with ASEAN, Canada, Chile, Korea, Malaysia, New Zealand, Japan, Singapore, Thailand, and the United States.

Business Structures

There are a number of structures that you can choose from when starting or expanding your business in Australia. The four main business structures commonly used by small businesses are:

Sole Trader:

An individual operating as the sole person legally responsible for all aspects of the business. Like other structures, as a sole trader you can employ people to help you run your business.

Company:

A company is a legal entity separate from its shareholders.

Partnership:

An association of people or entities running a business together, but not as a company.

Trust:

An entity that holds property or income for the benefit of others.

How to Chose a Business Structure?

When deciding on a structure for your business, choose the one that best suits your business needs, keeping in mind that there are advantages and disadvantages for each structure. It is important to note that you can change your business structure throughout the life of your business. As your business grows and expands, you may decide to change your business structure, or to restructure your business.

Following are some important factors to chose a business structure:

  • The licenses you require
  • How much tax you pay
  • Whether you're considered an employee, or the owner of the business
  • Your potential personal liability
  • How much control you have over the business
  • Ongoing costs and volume of paper work for your business.
  • Australian Tax System

    Depending on the company's circumstances and location, it must comply with different taxation requirements:

    1.

    If the annual company turnover is AUD$75,000 or more, the company must register for Goods and Services Tax (GST) by obtaining an 11-digit Australian Business Number (ABN). The annual company turnover represents its gross business income (not its profit). Companies with lower annual turnover may also choose to register for the Goods and Services Tax.

    2.

    The application to ABN can be submitted electronically at the Business Entry Point, www.abr.gov.au. If the electronic submission is successful, the applicant will be provided with an ABN at the end of the Internet session. Alternatively, a hard copy application may be submitted to the ATO. The ATO will then mail the ABN within 28 days of receiving the application.

    3.

    The company must deduct taxes from employee pay, provide payment summaries, contribute to employee superannuation and report and issue payments to the ATO. Companies may also register for Pay As You Go (PAYG) at www.abr.gov.au. Otherwise, they may register with the ATO by postal mail or phone or through a tax agent. State and territory taxes (e.g., stamp duty, payroll tax, and land tax) may also be imposed, with requirements differing according to company location.

    4.

    Companies with annual turnover of AUD$75,000 or more must register for an ABN. Failure to do so will result in GST being levied on all company sales since the required date of registration even if the sale price of any goods or services has not been grossed up to include the tax. Furthermore, the company may incur penalties and interest charges for any overdue payments.

    How to start a company?

    To register a Pty Ltd company, the applicant must complete and submit an ASIC Form 201 (""Application for Registration as an Australian Company"") and pay the prescribed fee of AUD 457. Any person to be appointed as a director or secretary of the company must have consented in writing to that appointment. Similarly, each shareholder of the company must have consented to become a shareholder. At least 1 director (and, if the company has appointed secretaries, at least 1 secretary) must ordinarily reside in Australia. The registered office of the company must be an address in Australia.

    Prior to lodging the application for registration, the applicant should confirm the availability of the proposed company name. If no name is specified, the company will simply be referred to by its Australian Company Number (""ACN""). Upon incorporation, ASIC will issue to the company a certificate of incorporation, which evidenced that the company has been incorporated on and from the date of issue.

    1.

    If the annual company turnover is AUD$75,000 or more, the company must register for Goods and Services Tax (GST) by obtaining an 11-digit Australian Business Number (ABN). The annual company turnover represents its gross business income (not its profit). Companies with lower annual turnover may also choose to register for the Goods and Services Tax.

    2.

    The application to ABN can be submitted electronically at the Business Entry Point, www.abr.gov.au. If the electronic submission is successful, the applicant will be provided with an ABN at the end of the Internet session. Alternatively, a hard copy application may be submitted to the ATO. The ATO will then mail the ABN within 28 days of receiving the application.

    3.

    The company must deduct taxes from employee pay, provide payment summaries, contribute to employee superannuation and report and issue payments to the ATO. Companies may also register for Pay As You Go (PAYG) at www.abr.gov.au. Otherwise, they may register with the ATO by postal mail or phone or through a tax agent. State and territory taxes (e.g., stamp duty, payroll tax, and land tax) may also be imposed, with requirements differing according to company location.

    4.

    Companies with annual turnover of AUD$75,000 or more must register for an ABN. Failure to do so will result in GST being levied on all company sales since the required date of registration even if the sale price of any goods or services has not been grossed up to include the tax. Furthermore, the company may incur penalties and interest charges for any overdue payments.

    Imports and Exports

    Australia was ranked 19th for both imports and exports in the world in 2010. As a member of numerous organisations such as APEC, the G20, WTO and OECD, Australia has multiple free trade agreements with numerous countries such as the US, Singapore, Chile and Thailand. The vast scale of trade with China has also seen massive investments by Chinese companies in Australia. The majority of these investments has been in the resources sector, where Chinese companies have not only invested in Australian mining companies, but have now also started to lease land from the Australian government to mine resources on their own.

    Australia imports mainly machinery and transport equipment (40 percent of total imports), of which road vehicles account for 12 percent, industrial machinery for 6 percent, electrical machinery for 5 percent and telecommunications and sound recording for 5 percent.The country also imports: petroleum (11 percent); manufactured goods (12 percent); chemicals and related products (10 percent); and food and live animals (5 percent). Main import partners are China (23 percent of total imports), the US (11 percent), Japan (7 percent), South Korea, Thailand and Germany (5 percent each) and Malaysia (4 percent). This page provides the latest reported value for - Australia Imports - plus previous releases, historical high and low, short-term forecast and long-term prediction, economic calendar, survey consensus and news.

    Rich in natural resources, Australia is a major exporter of commodities. Metalliferous ores and metal scrap account for 29 percent of total exports and mineral fuels, lubricants and related materials account for 25 percent, of which coal, coke and briquettes account for 15 percent and gas accounts for 7 percent. The country also exports: food and live animals (14 percent), mainly meat (5 percent) and cereals (4 percent); manufactured goods (6 percent), mainly non-ferrous metals (4 percent); and machinery and transport equipment (6 percent). Australia's largest export markets are China (32 percent of total exports), Japan (16 percent), South Korea (7 percent), the US (5 percent), India (4 percent), New Zealand, Singapore and Taiwan (3 percent each). This page provides the latest reported value for - Australia Exports - plus previous releases, historical high and low, short-term forecast and long-term prediction, economic calendar, survey consensus and news.

    Resources continue to underpin Australia’s exports to China. Australia exported 266.2 million tonnes of iron ore to China in 2009, an increase of 45.2 per cent over the same period. China is also Australia’s largest source of imports. Major imports from China include clothing, communications equipment, computers, prams, toys, games and sporting goods, furniture and televisions.

    Economic Forecast

    Australia's per-capita GDP is higher than that of the UK, Germany, or France, in terms of purchasing power parity (PPP). The country ranked second in the 2011 United Nations Human Development Index and sixth in The Economist's 2005 worldwide quality-of-life index. With a sovereign credit rating of "AAA," Australia's credit rating is actually higher than that of the United States.

    In 2011, Credit Suisse reported that Australia had the highest median wealth in the world, with an average $222,000 US. That number was nearly four times higher than the average for American adults and made Australia second only to Switzerland in average wealth.

    Australia's economy relies heavily on the export of commodities rather than manufacturing. Major Australian exports include wheat and wool, minerals such as iron ore and gold, and energy in the forms of liquefied natural gas and coal. Australia's largest export markets include Japan, China, South Korea, India, and the United States.

    However, the service sector of the economy constitutes 69 percent of Australia's GDP. Property and business services have been the largest growth industries in the service sector. Unfortunately, this growth appears to have been at the expense of the manufacturing sector, which has contributed proportionately less to the economy since the late 1990s.

    There has probably never been a better time to build a startup in Australia. We have a growing pipeline of entrepreneurs and accelerators, new startup funds announced almost every week, and enthusiastic support from all levels of government to build the ecosystem.

    Australia is at a critical juncture - political and business leaders agree that innovation is the key to our continued prosperity. To ensure we don’t get left behind, we must act decisively. The government’s national innovation agenda will provide an opportunity to set clear-eyed, ambitious goals for the short, medium, and long term. With a well-defined vision and a series of targeted policies for realising that vision, this agenda could provide a blueprint for Australia’s economic future.

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    Salient Links UK Limited launched the Diplomat Link in October 2011 with an objective to provide a platform to diplomatic community to share and exchange their experiences while working in different cultures and countries.

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