Canberra is the capital of Australia, which is an English-speaking country. Australia is a technologically advanced country with industrialized economy. It is a multicultural country and has achieved significant results in such fields as health care, education, economic freedom, protection of civil rights, overall quality of life. Australia is a member of various international organizations, and some of its cities are ranked as ones of the world’s best places to live, in terms of the quality of life, cultural integration and human rights. Australia has a relatively low level of unemployment, economy is mainly based on services, i.e. tourism, education, finance which constitute almost 70% of the overall economic income. Although agriculture and natural resources together account only 8% of the GDP, they do contribute significantly to the country’s export. Australia exports its goods mainly to New Zealand, the US, South Korea, China and Japan.

The Australian Dollar (AUD) is the national currency of the country.

Geography

Australia covers an area of 7,617,930 sq km and is surrounded by the Pacific and by the Indian oceans. The Great Barrier Reef which extends for more than 2,000 km is the world’s longest and biggest coral reef. Mount Augustus raises at 2,228 metres above the sea level and it is the world’s highest monolith. Mount Kosciuszko is the highest point of the Australian mainland.

Australia is the flattest continent with the least fertile soils, the significant part of which is desert. Only the Southern part of the continent has a temperate climate, other zones are very dry the most part of the year and have a tropical climate. Australia is not a densely inhabited country. Rainforests, woodland, large grass fields and mangrove swamps are characteristic to Australian landscape, in addition to deserts.  Ocean currents significantly influence climate of different zones of the country.  Australia is a megadiverse country, having a big number of flora and fauna species.

Map, Flag and Coat of Arms

Types of Company

Sole Trader

This business structure is owned by one person, and it is usually chosen by professionals working on their own, even though this structure can employ other people. It is rather easy and fast to establish with limited costs. An owner has a full control and receives all generated profits of the business structure, but he is at the same time fully liable for all debts and obligations of this structure. There is no business perpetuity, and business ends upon its owner’s death.

Partnership

This business structure may be established by two or more parties, and there are no particular legal procedures to be completed. It is, however, usually advised to create a partnership agreement, in which partners’ roles and obligations are precisely outlined. This structure is often used for reducing a family’s tax liabilities, and financial obligations are split between a partnership’s owners.

Private Company Limited by Shares

Shareholders own a company, and have a limited liability; directors administer it. Its shares cannot be offered to general public. It takes up to one month to incorporate a company.  Ownership can be changed without the necessity to change a company’s structure and name.

Public Company Limited by Shares

A public company should have at least five shareholders and general public may freely subscribe to its shares. Such companies are often listed on stock exchanges.

Holding Company

If properly structured, an Australian Holding Company may achieve significant tax advantages.

Cooperative

This type of company is established by a group of people who work for a common goal. The income obtained as a result of their activity may be distributed among them or reinvested in a further company’s development.

Government entity

This is a particular structure established and controlled by the government, operating as a company.

Club and association

This structure is established to promote a certain activity which may be of interest to a certain group of people, such as sports clubs, professional and charity associations. They usually are not-for-profit organizations. The organization and its members are separate legal entities. This structure has similar reporting rules to follow as companies.

Trust

Australian trust law is largely based on the English system. Such structures as unit trusts, discretionary trusts, and hybrid trusts may be incorporated. These are state governments to control trust law and operation, thus trust laws may slightly vary in different states of the federation.

Taxation

Personal

A person is a resident in Australia if he is domiciled there, or if he spends at least 183 days in a year in the country; an Australian resident who goes abroad for up to 2 years, but intends to return, may be considered Australian resident during this time.

Non-residents are taxed on income derived from an activity conducted in Australia.  Medicare levy is paid only by residents.

Personal income tax is payable at a federal level and it has a progressive nature, starting from 0% and reaching a maximum rate of 45% for individuals who earn over a certain amount of money in a tax year.

Corporate

A company is resident in Australia if it is incorporated three and/or its central management is conducted from the jurisdiction, or if a foreign company conducts an activity on the territory of Australia and in case its voting control belongs to Australian resident members.