Doing Business or Investing in Australia: A Tax Guide
Our Tax team have prepared an essential guide on doing business or investing in Australia.
In this guide, we cover some of the key tax issues that you need to be aware of, including:
- Key tax law concepts: we explore several key tax law concepts you should consider prior to doing business or investing in Australia. This includes tax residency, source, revenue v capital, dividend imputation system, tax losses, capital gains tax and tax grouping.
- Common investment structures: we outline the details of suitable investment structures to consider. Each investment structure has its own tax advantages and disadvantages and choosing the correct investment or business structure is critical to achieving your business objectives.
- International tax considerations: we look at the key international tax considerations that you need to be aware of when doing business or investing in Australia.
- Indirect taxes: we outline the indirect taxes that are passed on to another entity or individual when operating in Australia.
Foreign investment in Australia – an overview
Australia has a complex tax landscape with taxes applicable at both a Federal level (such as income tax and Goods and Services Tax (GST)) and at the State and Territory level (such as stamp duty and land tax).
The Australian Taxation Office (ATO) is the key revenue authority responsible for the administration of Federal tax laws, and each State and Territory has a separate revenue authority to administer the tax laws applicable in the respective jurisdiction.
Australia is a key destination for foreign investment, with foreign direct investment exceeding $1.1 trillion in 2022. Key industries with strong investment activity include mining, real estate, Australian manufacturing and financial services and insurance.[1]
Approval from the Foreign Investment Review Board (FIRB) may be required when investing in Australia. Where FIRB approval is required for a particular investment or transaction, Treasury will consult with the ATO and will generally impose tax conditions on the FIRB application which must be complied with as part of the approval. This process ensures that the Australian taxation authorities maintain high visibility over the different types of structures and jurisdictions used when investing in Australia and can allocate their resources accordingly.
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Contact our tax team
Arnold Bloch Leibler is renowned within the Australian business, legal and accounting communities as being the ‘go-to’ taxation law practice for corporate leaders,
major companies and wealthy private clients. If you have any questions about the information contained in this publication, contact one of our team members below.
