Understanding Australian business structures and taxation
If you’re starting business in Australia, one of the first decisions you’ll have to make is whether to structure your business as a foreign branch or Australian subsidiary. The decision will depend on different factors, such as how your business model is set up and the activities you want to pursue. Your business structure will influence how your profits are taxed, your income tax reporting requirements and international tax obligations.
It’s also essential to understand the tax and superannuation obligations that will apply before starting a business in Australia to avoid unforeseen tax charges impacting your budgets. As well as company tax (typically 30%), there are several other Federal and State taxes that affect companies in Australia. Key to your success is understanding how these taxes will affect your business structure and transactions. Enlisting experienced advisors to set your Australian business on the right path from the beginning will help you to achieve this.
Professional advice to help you start a business in Australia
For small-medium foreign-owned companies, finding the right support from an experienced accounting firm to set up your operations in Australia can be difficult.
Accru has specialised in helping international companies in Australia to start and grow successful businesses for many decades. Accru international business specialists have expertise across a range of tax, accounting and financial reporting areas and include bilingual German, French and Chinese speakers.
We can tailor our startup services to your needs. You may just need help to establish and maintain a compliant company in Australia, or you may require a full outsourcing solution for everything from business planning to establishing procedures and accounting systems, staff recruitment and strategic financial decision making. Our Accru Asia network can also assist if you intend to do business with other countries in the Asia-Pacific region.
Our services for starting a business in Australia
Taxation – including direct and indirect taxes and GST:
- Setting up a tax-effective business structure that will suit your industry, operations and minimise any double taxation
- Business incorporation and company registration – including Australian Company Number (ACN) Australian Business Number (ABN), Tax File Number (TFN) and Pay As you Go (PAYG) taxes
- Ongoing compliance with tax laws and lodgement of tax returns in Australia: income tax return, payroll tax return, fringe benefits return, international dealing schedule (for transfer pricing and thin capitalisation), Business Activity Statement (BAS) for GST, withholding tax on employee payroll, fringe benefits and income tax instalments.
Corporate compliance – Managing ongoing registrations covering taxation (ATO), corporate reporting (ASIC) and stock exchange (ASX)
Outsourced accounting – setting up procedures and accounting systems, custom software solutions and integration, KPI and budget monitoring, management reporting, payroll services and administration
CFO services – developing business plans and budget models, recruiting staff, raising working capital, business analysis, forecasting, valuations and financial decision-making.
Financial reporting – covering public and private companies, trusts and AFSL’s
If you’re thinking about starting a business in Australia, our Doing Business in Australia Guide is a great place to start. Also see Accru’s International Insights page to keep up-to-date with developments, or simply contact a specialist below.