Australia

INVESTING IN AUSTRALIA

Why invest in Australia? The following information has been extracted from the Why Invest in Australia Report. Before you make a final decision on whether or not to invest, please seek assistance from a qualified professional that understands your personal circumstances. We at our headquarters, have professionals who can assist you with that, if you just place your questions with us, and we will forward any questions you may have.

Overview of Australia

Australia is the world's largest island with an area of 7,692,024 square kilometres, which is only slightly smaller than mainland USA or about 20 times the size of Japan. Australia has a very low population density, equivalent to only two people per square kilometre. The majority of the population, however, is concentrated in the urban centres of two widely separated coastal regions in the south-east and south-west of the continent.

Economic Conditions

Australia's economy was one of the strongest in the weak global economy of 2001 and 2002. With average annual real GDP growth of 3.3% since 1990, Australia's strong economic growth rates are higher than most OECD countries including the US and UK. There is a low degree of risk in the Australian economy.

Exchange rates have shown considerable growth since 2001. Australian dollar is currently recovering from a decade-long low in 2000 when it was worth less than US$0.50. As at October 2003 the value of Australia's dollar had risen to US$.70.

Australia's labour force is currently 9.96 million. 71% are employed full-time with the remaining 29% working part-time. Australia's current employment level of 94.3%, which is approaching the high levels experienced in the late 1980's.

Key Statistics (as at October 2003)

4.82% Interest Rate
$825 / week Median Household Income
34.3 Median Age
3.3% per annum GDP Growth
1.3% per annum Population growth
19,958,352 Population
The Australian Population

In Australia the demand for dwellings continually outpaces supply as residents pursue the 'Australian dream' of owning their own home. The population is concentrated around Sydney, Melbourne and Brisbane, which have the highest property prices and have shown the strongest growth.

69% of Australians currently own, or are in the process of purchasing, their own home. The rental market is still highly visible with 29% of dwellings being rented, which is related to the high levels of property investment in capital cities and regional centers. The majority of dwellings (76%) are houses and 13% are units.

The median weekly household income is $825. Increasing incomes coupled with low interest rates are encouraging more people to enter the property market. On average, Australians devote $900 per month to home loan repayments.

Australia's population is 19,958,352 with positive growth of 1.3%. Overseas migration accounts for over half of this growth. With citizens from over 200 countries, Australia is a multicultural society. 23% of the resident population were born overseas. The largest proportion come from the United Kingdom (5.46%) and neighbouring New Zealand (1.88%).

Like most Western countries, Australia has an aging population with 13% over the age of 65. This can be attributed to falling fertility rates and increased life expectancy. The median age is 34.3.

Sydney

With a population of over four million, Sydney is Australia's largest city. It enjoys a temperate climate with over 340 sunny days each year. Sydney is also Australia's most expensive city with land prices consistently outpacing inflation. House prices have increased over seven consecutive quarters to $465,000 in mid 2003. Sydney's median unit prices rose from $132,800 in 1990 to $364,600 in June 2003.

Melbourne

Melbourne is Australia's second largest city with a population of over three million. It is a truly multicultural city with over one quarter of its population born overseas. Melbourne's property market has shown strong growth with housing and unit prices approaching Sydney's. Figure 12 shows that Melbourne's median house price rose from $134,000 in 1990 to $359,000 in June 2003. Melbourne's median unit price rose from $111,200 in 1990 to $279,000 in June 2003.

Brisbane

Brisbane is often referred to as Australia's 'most livable' city. It enjoys a hot, humid climate which dictates the lifestyle of its 900,000 residents. Brisbane property prices are at record levels, which can primarily be attributed to high levels of interstate migration. Figure 13 shows that Brisbane's median house price rose from $110,000 in 1990 to $289,000 in June 2003. Brisbane's median unit price rose from $88,700 in 1990 to $207,000 in June 2003. Interestingly, during the 98/99 financial year, unit prices temporarily exceeded house prices due to the high value placed on riverfront locations.

Conclusion - Why Invest in Australia?

Australia's resilient economy has avoided the economic downturn experienced by many countries during 2001 and 2002. It boasts consistently strong growth, stable interest rates, rising exchange rates, relatively high levels of employment and a low rate of inflation. The property market greatly contributed to this impressive economic performance. Positive population growth, declining household sizes and rising incomes ensures that demand for dwellings constantly outpaces supply and prices continue to rise. Capital cities along the east coast have been the strongest performers.

Australia offers many diverse living options and is truly multicultural society. Based on historical trends in the property market and key economic indicators, the Australian property market is considered to be a sound investment opportunity.

Why Invest in Australia?

Many companies have set up offices and business assets in Australia because of the international business community’s high regard for business environment. The 1990s was a period of change, with microeconomic reforms opening the economy and building international competitiveness. The Australian Government’s actions, such as implementing national competition principles and making wide-ranging reforms to the taxation system, complement State government reforms to provide a support framework for an internationally competitive and sustainably managed forest and wood products industry. The Australian Government has three major policy strategies, which assist investment in Australia.

The foreign investment approvals process in Australia is regulated under the Foreign Acquisitions and Takeovers Act 1975 and supplemented by Australian Government policy. The Australian Treasurer and the Foreign Investment Review Board, an advisory body within the Australian Government Department of Treasury, administer the process.
Our Offices abroad offer services for investors with information and facilitation services to build relationships with key government agencies involved in approving a major project. This service can also help identify areas of government assistance.
The Australian Government will also consider providing investment incentives under the Strategic Investment Co-ordination (SIC) program. This program is for Australian projects that otherwise would be located offshore, and have significant net economic and employment benefits. The SIC program recognises the global mobility of foreign direct investment and the competition for available capital.

There are many other areas where government legislation and policy can benefit investment decisions, including:

Taxation. Australia has agreements with several countries to avoid double taxation of income. This limits Australia’s taxing rights on certain types of income derived by a resident of the other country, or vice versa.
Competition and consumer laws. The Trade Practices Act 1974 restricts or prohibits business practices that may lessen competition in trade and commerce, and applies to most businesses in Australia.
Environmental regulation. There are transparent controls on development, protection of species, pollution and dealings with hazardous substances. Arrangements ensure the marriage of Australian Government and State/Territory government environmental assessment processes to avoid duplication.
Infrastructure. Although chiefly a State government responsibility, the Australian Government may provide assistance where projects support common-user infrastructure.
International financial markets. Australia’s regulatory framework keeps pace with financial market developments, including an international currency, no foreign exchange controls and one of the most effective intellectual property rights regimes in the world.

Australia’s investment environment and provides practical information for foreign investors on legal, taxation and government policy on investing in Australia.

Why Invest Here?

Investing in Western Australia's tourism industry is an opportunity potential investors should not miss. An array of exciting options is available, thanks to a powerhouse economy that shows no signs of slowing.

Western Australian Economy

Fastest growing economy in Australia.
World-class industries in resources and agriculture.
Politically stable.
In same time zone as Singapore, China and Hong Kong.
Western Australian Tourism
Diverse natural attractions and untouched wonders.
Strong government focus on building tourism market demand.
Tourism development sites investor-ready, under the Landbank program.
Air linkages through Western Australia continue to grow.
Leading convention and exhibition travel destination in the Asia Pacific, with the new Perth Convention and Exhibition Centre.

Tourism in Perth

Positive outlook for the first class hotel market in Perth.
Growth in revenue per available room climbed by around 13 percent in 2005.
Occupancy rate of 77 percent and rising - the second highest level in 20 years.
Perth recently rated favourite overseas city by the UK market.

Tourism Background

Western Australia is one of the oldest landscapes on earth and home to some of the world's most outstanding natural features and wilderness areas. The diversity of the bio-geographic regions contained within the state's 2.5 million square kilometres is unparalleled.

With a coastline stretching 12,500km long and a daily average of nine hours of sunshine year round, outdoor activities and adventures are always popular with visitors.
Sunny Perth is Western Australia's capital city and home to most of the state's 2 million people. WA has a highly skilled and well-educated workforce of 850,000 people, a stable, progressive government, proximity to key markets in South East Asia and a wealth of natural resources that have enabled the state's economy to grow from $75 billion in 2000/01 to $123 billion in 2005/06. Growth in 2006/2007 is expected to be at 5.25 percent - well above the national average.

Geographically, Western Australia is ideally positioned to capitalise on growth in outbound travel, with nearly 4 billion people to its north in Asia. Expenditure by international arrivals to WA has jumped from $872 million per annum five years ago to nearly $1.2 billion per annum in 2005.

Investments in tourism in Western Australia are strongly supported by a sophisticated local market constantly seeking quality experiences. In the past five years, the number of Australians visiting WA has grown from 6.27 million per annum to 6.83 million per annum.

World-class marketing and protection of Western Australia's unique natural attributes together with imaginative promotion of other attractions have resulted in consistent growth in recent years. For those seeking to invest in a growing tourism industry, Western Australia is the real thing.

Why Invest Here?

Western Australian Economy

Fastest growing economy in Australia.
World-class industries in resources and agriculture.
Politically stable.
In same time zone as Singapore, China and Hong Kong.
Western Australian Tourism
Diverse natural attractions and untouched wonders.
Strong government focus on building tourism market demand.
Tourism development sites investor-ready, under the Landbank program.
Air linkages through Western Australia continue to grow.
Leading convention and exhibition travel destination in the Asia Pacific, with the new Perth Convention and Exhibition Centre.

Tourism in Perth

Positive outlook for the first class hotel market in Perth.
Growth in revenue per available room climbed by around 13 percent in 2005.
Occupancy rate of 77 percent and rising - the second highest level in 20 years.
Perth recently rated favourite overseas city by the UK market.

Tourism Background

Trade and investment

Australia’s two-way trade in goods and services was valued at $443.6 billion in 2006-07, or about 1 per cent of total world trade. Japan is Australia’s largest trading partner, followed by China, the United States, the United Kingdom and Singapore.

Australia’s exports of goods and services grew by 10 per cent to $215.8 billion in 2006-07 —about 21 per cent of the country’s GDP. Australia’s exports of goods and services have grown in value terms by an average of 7.5 per cent per annum over the last five years.
Australia’s businesses are competitive across a wide range of sectors. Australia has long been a major exporter of agricultural, minerals and energy commodities. More recently, Australia has diversified into new services and sophisticated manufacturing export markets.
Australia’s biggest export sector is minerals and fuels, followed by the services, manufactures and rural sectors.

Japan is Australia’s leading market for exports of goods and services ($35.5 billion in 2006-07), followed by China ($26.4 billion), the United States ($15.5 billion), the Republic of Korea ($14.9 billion) and New Zealand ($12.7 billion).

Shipping containers at port in Sydney. The total volume passing through the city's port between July and December 2006 was 13.9 million tonnes.

Australia’s major import items were passenger motor vehicles, crude petroleum, personal travel services (excluding education), freight transportation services, refined petroleum, and computers. The United States was Australia’s largest source of imports, followed by China and Japan.

Primary products

Australia’s traditional export strengths - primary products in agriculture, minerals and energy - continue to make a strong contribution to national prosperity. Exports of Australian primary products have grown by an average 9.2 per cent a year since 2001-02.

The value of mineral and energy exports rose by 10 per cent in 2006-07 to reach $74.2 billion in response to rapid growth in global demand, particularly from emerging economies such as China.

Did you know?

In 2007, Australia was the world’s largest exporter of coal and wool, and the 2nd largest exporter of iron ore, beef, and barley.

Services

In 2006-07, services exports reached $46.2 billion—21 per cent of total exports. Personal travel (excluding education) and passenger services exports totalled $15.7 billion—7.3 per cent of Australia’s total export earnings. Exports of professional and business services generated $5.9 billion.
Tourism is Australia’s largest services export industry. The number of international visitors to Australia reached a new high in 2006-07, at 5.6 million. By 2015, Australia expects to attract almost 8.4 million international visitors. In 2006-07, education services exports continued to perform strongly, totalling around $11.6 billion. Some 383,818 full-fee students were enrolled in Australia in 2006.

Did you know?

Australia was ranked the third most technology-savvy country in the world in the 2007 Globalisation Index (conducted for Foreign Policy by consulting firm A.T. Kearney).

Supplier of advanced manufactures

In 2006-07, elaborately transformed manufactures accounted for around 65 per cent of Australia’s total manufactured exports. Australia’s success in part reflects the ability of its exporters to integrate with global supply chains in a number of industries.

Since 1996-97, exports of ETMs, with high levels of value added, have grown at an average annual rate of 3.7 per cent. Export successes in the advanced manufacturing sector include motor vehicles to the Middle East, New Zealand, South Africa and Papua New Guinea. Australia is also developing a competitive edge in high-technology exports, such as medical and scientific equipment.
Australia’s top 25 merchandise and service exports in 2006-07 are shown below.

(a) Excluding education-related travel.
(b) Includes education-related travel and other education services. The ‘other education services’ component for 2006-07 is a DFAT estimate. ABS to release actual data in May 2008.
(c) Mostly wine.

Did you know?

Passenger motor vehicle exports have more than doubled since 1996-97, expanding into markets such as the Middle East, where cars built for Australia’s rugged conditions have an advantage. Over the past decade, exports of passenger motor vehicles have increased by an average of 11.7 per cent a year and in 2006-07 were worth $2.7 billion. Exports of medical instruments have grown almost fourfold since 1996-97, at an average annual rate of 12.1 per cent, to reach $916 million in 2006-07.

A wool classer spreading a fleece. The sheep trade continues to form a major part of Australia's export industry. Austrade - the Australian Trade Commission - is the Australian Government’s international trade facilitation agency. Austrade assists international buyers of goods and services to develop trade connections with Australia, and assists Australian businesses to increase their exports. Austrade also helps companies reduce the time, cost and risk involved in doing business internationally. Austrade is represented in Australia and in more than 140 overseas locations in over 60 countries.

The Export Finance and Insurance Corporation (EFIC) is a specialised financial services organisation supporting Australian businesses exporting and investing overseas by providing finance, finance guarantees, and insurance and bonding facilities. As an export credit agency, EFIC operates beyond the limits of the commercial market. It provides support when financial, political or industry risks exceed the capacity available in financial markets.

Foreign investment

Australia welcomes foreign investment. It recognises the important role foreign investment plays in boosting economic growth, developing competitive industries, creating jobs and increasing exports. The stock of foreign investment in Australia (portfolio, direct, financial derivatives and other investment) at 30 June 2007 totalled $1.6 trillion. Similarly, investment offshore is vital to the development of regional and international marketing strategies of Australian firms and enables access to global business networks. The stock of Australian investment abroad (portfolio, direct, financial derivatives and other investment) at 30 June 2007 totalled $921 billion.

APEC 2007

In 2007, the Australian Government hosted the Asia–Pacific Economic Cooperation (APEC) forum. APEC is the premier forum for facilitating economic growth and prosperity through the promotion of trade and investment liberalisation in the Asia–Pacific region.
From January to September 2007, more than 100 days of ministerial, officials-level and business-group meetings were held across the country. These culminated in Sydney with the APEC Economic Leaders Meeting, which brought together the leaders of 21 regional economies, including the United States, Japan and China.

Invest Australia has investment advisory specialists in 12 locations around the world, including New York, San Francisco, London, Paris, Frankfurt, Singapore, Tokyo, Shanghai, and Beijing to provide potential investors with a comprehensive, free and totally confidential service.

Our offices has helped a wide range of international businesses invest in Australia and today we are currently working with companies on projects with potential investment in Australia of more than A$50 billion.

Australia, a little fish in a big pond

The Australian share market counts for approximately 3% of the world's share market. This means that if you only invest within Australia, you are potentially missing out on 97% of the world's share market opportunities.
By considering the international market you can invest your money in major household brands such as Nokia, McDonalds, IBM, Johnson & Johnson and Sony.
Investing internationally also allows you to share in the growth of some of the world's developing economic powerhouses such as China and India.
The chart below shows the proportion of the international share market represented by Australia compared to the rest of the world.

Investor Visa

This visa is for people who have a successful business or investment career, and have a genuine and realistic commitment to be involved in investing or business in Australia. This visa is also the first step towards being granted a permanent Business Skills visa.

Who is this visa for?

This visa is for investors/business people from overseas who are willing to invest funds in a designated investment in Australia for four (4) years, and are less than 45 years of age.

How much will this visa cost?

You must pay a non-refundable visa charge when you lodge your visa application.
You go to fees page.

What does this visa let me do?

With this visa you can:

make a designated investment
travel in and out of Australia any number of times as long as the visa is valid
have your family accompany you to Australia. They will have access to work and study rights
establish a pathway to permanent residence.

INVESTOR VISA TO AUSTRALIA

The Investor Visa is for people who can demonstrate a successful business career and have a genuine and realistic commitment to be involved in investing or business in Australia.
As the holder of an Investor Visa, you are eligible to make an application for a Business Skills (Residence) Visa after establishing the requisite level of business or maintaining an eligible investment for a specified period.