Ask the Expert: John Galvin

Tips for expanding into Australia:

Payroll can be up and running in Australia in only a few weeks. You need to register as an employer there, which is mandatory in order to setup your payroll. As an employer you will need to need to ensure that income tax and social security withholdings are correctly calculated and paid. You will also need to pay employer pension contributions (known as “super”) and possibly payroll taxes.

You may or may not need to create a legal entity in Australia based on the type of activity you are conducting there. Setting up the legal structure you require, based on the minimum you need to achieve compliance in Australia is very important. Once your legal structure is known, you may require financial statements and Corporate income tax returns.

Given its island location and distance from the US, much of Australia’s goods are imported. These goods attract customs duties and sales tax on arrival into the country. You need to be registered as an importer and also for sales tax in Australia, which allows you to offset tax on imports against sales tax you collect from your clients. You can potentially defer the payment of initial sales tax though available waivers.

Here are some other factors to consider:

– You may need to undergo a financial audit in Australia, and if you qualify, audit exemptions can save you thousands of USD.

– Your Australian business may need to file regular Business Activity filings known as BAS.

– Other common local requirements include an Australian bank account and local director.

– If you are planning to send US or other non-nationals to expand your Australian business, you may need work visas and expat taxation.

Our one-stop global consulting solution is ideal to help you understand and manage all your compliance needs in Australia. We give you peace of mind so you can focus on commercial tasks to expand your business.