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Financing a Business in Australia

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Financing a Business in Australia

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Financing a Business in Australia

The Australian Government is particularly keen in attracting foreign investment. As a long-term direct foreign investor, you will be more than welcome in the open economy of the country. Remember that the keyword in the last years has been deregulation.

A case-by-case approach

Government grants, aids or funding are allotted on a case-by-case basis by the Foreign Investment Review Board which is administered by the Treasurer. Proposals must be submitted to the FIRB Board and often include: substantial foreign takeovers, the establishment of major new businesses, all investments in civil aviation and the media, business involved in direct investments by foreign governments or their agencies. Foreign investors are encouraged to increase the availability of urban residential accommodation but not to acquire the land for investment purposes.

More Incentives

Research and Development

Incentives regard Research and Development (which enable companies to claim deduction from 125% to 175% of R&D expenditure in projects involving innovation or technical risk)

Multinational corporations

A number of concessions are designed to encourage multinational corporations to establish their Asia Pacific regional headquarters in Australia. These concessions include tax deductions for certain costs of locating RHQs in Australia, and an exemption from withholding tax on certain dividends distributed through Australia

Others

Incentives are also designed to encourage business to remain in the State, or to encourage businesses to move to or set up in the State. These schemes range from pay-roll tax rebates and holidays, to low-cost land for new businesses, to financial and relocation assistance. Contact www.firb.gov.au to know what kind of incentives are available for you.

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