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With
an ideal location at the edge of the Indian Ocean, Western
Australia is leading the way in business with Asia. The two-hour
time difference between east and west coasts of Australia means
that it's easier to spend a business day with Asian partners
than with our fellow citizens on the other side of the country.
And the distance across the continent often makes it faster
and cheaper to conduct business with our Asian neighbours.
Western
Australia's thriving mining and farming communities contribute
more than their share to the Australian economy. With just
ten percent of the total population, Western Australia is responsible
for a quarter of Australia's exports.
The
Department of Commerce and Trade provides fascinating
information about business and investment in Western Australia.
Profound structural changes have
taken place in Western Australia's economy in the past few
years. The changes are producing a widely diversified and internationalised
economy closely linked to the economies of Australia's Indian
Ocean and Asian neighbours. The state's resources industries
have grown in sophistication and have led to the development,
for example, of infrastructure and service industries to support
them. These new industries have taken on world-class dimensions;
and have led to a growing demand for an ever more highly skilled
and educated workforce, which is being met by an education
sector now marketing itself aggressively internationally.
The strong resources sector has itself built
on the proximity of the state to Asia. Western Australia's
ideal location as a quality source of goods and services has
become widely recognised. All these factors are contributing
to Western Australia's status as a quality destination for
investment.ò The state has long provided a favoured location
for investment to support its growth. Similarly, Western Australiahas
attracted skilled people over the years to strengthen its workforce
and build its population. It is increasingly characterised
as a world-class supplier of manufactured goods and traded
services to its neighbours and beyond. These exports range
from ferries to smart cards, and from pharmaceuticals to construction
and land administration skills. Much of the impetus for these
industries has come from overseas interest.
The Government operates 10 offices in key international
economic centres around the world. The Chamber of Commerce
and Industry of Western Australia provides a wide range of
services to its members. Its Policy and Research Unit formulates
and co-ordinates major policy initiatives and plays a vital
role as a government watchdog. Its principal arm, the Economic
Research Centre, is a premier economic information unit.
Financial System:
All banking in Australia is controlled by the Reserve Bank
of Australia, which advises the Federal Government on the maintenance
of a stable economy; regulates financial practice and management
of private banks, and monitors financial intelligence and accountability.
There are four major Australian trading banks, and several
State Government owned trading banks. A number of regional
banks have been privatised, and there are also specialist banks
involved in resource and industry development, and a number
of foreign banks trading in Australia. The scope of operations
of each bank varies.
Other financial institutions include merchant
banks, finance companies, building societies, credit unions,
factoring companies, life and general insurance companies,
trustee companies, money market dealers and pension funds.
All banks trading in Australiaother than those
owned by the State Governments must be authorised or licensed
under the Banking Act 1959. Foreign banks may operate through
a local branch for wholesale banking activities, however, retail
banking activities must be conducted through a company incorporated
in Australiato enable the Reserve Bank of Australiato maintain
prudential supervision and depositor protection.
The Federal Government has deregulated the banking
industry and has removed the former restriction on issuing
new licences to foreign banks, which allows foreign banks to
acquire second tier domestic banks. An Australian company or
a foreign company controlled by a foreign investor has the
same access to capital markets as any other entity.
The Australian Stock Exchange Limited (ASX)
operates nationally with branches in each state. Foreign companies
may be listed subject to certain rules. Sydney Futures Exchange
Limited (SFE) is the predominant operating futures exchange
in Australia, although the ASX maintains a limited capacity
market.
All restrictions on foreign currency transactions
were abolished in 1988. The Financial Transactions Reports
Act 1988 requires financial institutions and other cash dealers
to formally report substantial cash transactions (greater than
A$10,000/US$7,800) to a Federal Government body; financial
institutions and other cash dealers must formally report international
funds transfer instructions to a Federal Government body; and
there are compulsory verification procedures for people opening
or operating accounts with financial institutions. The reporting
obligations on foreign currency transfers to and from Australiaare
imposed on transactions in excess of A$5,000 (US$3,900).
Government Support:
Western
Australian Government agencies services and support for Western
Australian-based businesses include advice and information,
investment incentives and assistance in meeting research and
development costs. The Small
Business Development Corporation provides a comprehensive
range of specialised services for the State's small and medium
sized enterprises including a network of Business Enterprise
Centres (link) throughout the State.
The Department of Industry and Technology has special responsibilities
for assisting the development of export oriented manufacturing
and services industries, promoting innovation and increasing
participation in the online economy. It offers specialised
programs for regionally-based businesses and Aboriginal Enterprises.
Industry specific agencies such as Agriculture, Western Australia,
Fisheries Western Australia The Western Australian Tourism
Commission and Arts WA also provide a range of support programs
tailored to the needs of enterprises within their specific
sector.
The
Commonwealth Government's Business Entry Point also
identifies national business support programs.
Investment Policies:
The
Western Australian Government is confident that the State offers
an unrivalled environment in which business can grow and prosper.
The Government provides a wide range of information, advice
and support for businesses to learn more about investing in
or relocating to Western Australia.
Information
and referral is available from the Department of Industry and
Technology, the Department of Resources Development and a network
of 10 offices around the world.
The
Western Australian Industry Incentive Scheme aims to foster
economic development in Western Australia, by facilitating
major capital investment in new products or services of strategic
importance to the State, which would not otherwise occur due
to identified impediments.
An incentive
may be offered to a strategically important project which would
not occur due to an identified impediment and for which the
wider economic benefits of the investment outweigh the costs
to government. The preferred form of assistance is that from
which other firms may benefit such as assistance for the construction
or development of public infrastructure.
National
Policy:
In recognition
of the contribution that foreign investment has made and continues
to make to the development of Australia, the Australian Government's
approach to foreign investment policy is to encourage foreign
investment consistent with community interests. In the majority
of industry sectors, smaller proposals are exempt from notification
to the Foreign Investment Review Board and larger proposals
are approved unless judged contrary to the national interest.
Additionally
the Australian Government will consider the provision of investment
incentives to strategic investment projects in limited
and special circumstances where the project would generate
significant net economic and employment benefits for Australia.
Incentives
could include grants, tax relief or the provision of infrastructure
services. Incentives are considered on a case by case basis,
taking into account a published set of eligibility criteria.
The criteria include a requirement that the investment would
not be likely to occur in Australia without the incentive,
is viable without subsidy, and provides significant net economic
benefits for Australia.
Legal System:
Western
Australia is the largest of six states in the Commonwealth
of Australia - a federation which comprises the states of New
South Wales, Victoria, Queensland, South Australia, and Tasmania,
two internal territories (Northern Territory and Australian
Capital Territory) and a number of minor external territories.
Through
a written Constitution, power is shared between the central
government (Federal Government) and the state and territory
governments. The headquarters of the Federal Parliament and
many Federal Government offices are in the Australian Capital
Territory. The Federal Government has power to legislate in
certain areas relevant to foreign investment including corporations,
taxation, international and interstate trade, commerce, communications,
banking, insurance, insolvency, intellectual property, immigration
and industrial disputes.
Australian
states and territories have legislative power to make all laws
other than those reserved for the Federal Government. Federal
law prevails over other laws if there is any inconsistency.
Foreign investment proposals must comply with Federal law,
as well as the laws of the state where the investment is located
and, in some cases, with the laws of local governments which
derive their authority from the relevant State Government.
There
are two sources of law: Statute Law, enacted by the federal
and state governments; and Common Law, the decisions of the
various federal and state courts. Each state has its own court
system, consisting of a Supreme Court and a range of minor
courts. The Federal Government has its own court system consisting
of the Federal Court and the High Court of Australia. The High
Court of Australia hears appeals from the Federal Court and
with special leave, the state Supreme Courts.
The
state courts in Western Australiaare the Supreme Court of Western
Australia, the District Court of Western Australia and the
Local Court of Western Australia. There are also numerous tribunals
administering technical areas of law - for example, mining
and workers compensation - from which a right of appeal exists
to the courts. The Ministry of Justice provides a range of
justice, legal and other services to government, the judiciary
and the community of Western Australia.
The
Fair Trading Act Anyone conducting business in Western
Australiais bound by the Fair Trading Act 1987 (WA). The
Act is designed to encourage fair and honest business practices,
and protects both consumers and traders.
Taxation:
Taxation levels in Australiaare the lowest in
the OECD when measured as a percentage of the gross domestic
product (GDP). Over the years, reforms have also had a significant
effect on the amount of tax actually paid. It currently stands
at around 24 per cent of Australia's GDP. Federal, state, and
local governments impose their own taxes. The Federal Government
is the major taxing authority.
Taxes are imposed by the Federal Government
on both income and capital profits under the Income Tax Assessment
Act 1936 (Tax Act). The introduction of a Goods and Services
Tax (GST) applicable to most transactions has been accompanied
by reductions in company and personal taxation rates.
In Western Australiathere are three principal
State taxes which affect companies. They are payroll tax, levied
on employers at varying rates and broadly calculated on gross
wages paid by employers above certain threshold levels; land
tax, levied annually; and stamp duty imposed on business documents
or transactions involved in property. Other charges are levied
on dealings with financial institutions.
Local governments raise revenue through "rates" assessed
on the value of property. More specific details of these taxing
regimes are available through the "Useful links" column.
Business Organisations:
There
are many avenues for support for your business venture or expansion
in Western Australia. Government
support can be found elsewhere in the Business Environment
section of the Business and Investment Gateway. Because the
state has a high trade profile, there is a big number of self-support
business groups which are also supported and encouraged by
government.
These
include business-sector organisations and bilateral business
councils representing businesses which deal with a particular
nation or international region. The Gateway links to these
organisations from here.
Australia
Mauritius Joint Business Council
Principal
activities include trade missions and the provision of commercial
information and advice on doing business with Mauritius.
Australia~Israel
Chamber of Commerce WA
A
national non-profit organisation with the aim of promoting
bilateral trade, investment, and cultural relations between
Australia and Israel.
Australian
British Chamber of Commerce
A
forum or meeting place for like-minded people interested in
furthering their own business ambitions.
Hellenic
Australian Chamber of Commerce and Industry Western Australia
(Inc.)
The
Hellenic Australian Chamber of Commerce and Industry Western
Australia (Inc.) or HACCI (WA) was originated in 1980 and has
taken steps at the international, national and local levels
under the presidents Dr Ken Michael and Mr Constantine Berbatis.
Irish
Australian Business Association Inc.
An
organisation dedicated to advancing the business interests
of its individual members.
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