WA's Business Environment
Western Australia (WA) offers an unrivalled environment in which businesses can grow and prosper. With low sovereign risk, pro-development government policies, a highly skilled and innovative workforce and world-class infrastructure, doing business in WA is easy and rewarding.
Page Index
Business and Industry Policies
Project Approval Processes for Industrial or Resource Based Projects
Banking and Finance
Australia has a mature and sophisticated banking and financial system with the Reserve Bank of Australia (http://www.rba.gov.au/) being the main regulatory authority. All major Australian banks are found in Western Australia (WA).
After de-regulation in 1983, many major international banks have since located in WA to take advantage of the high growth and investment opportunities in Australia and Asia-Pacific.
Foreign banks are allowed to operate as branches rather than as locally incorporated subsidiaries and there is a wide range of sources of finance that a foreign investor can gain access to.
Australian banks and other financial institutions provide foreign investors with the same access to credit as they do to domestic investors, and there is no discriminatory treatment.
Financial Services
Australia’s financial markets rank among the most mature and efficient in the world. Australia has deep and liquid trading markets in equities, foreign exchange, futures, swaps, options and a wide range of derivative products.
Foreign Exchange Market - ranked 8th in the world by turnover and the Australian dollar is the 7th most actively traded currency. Australia's exchange rate policy has been ranked first in the world by the IMD World Competitiveness Year Book 2003 in its support of competitiveness of enterprises.
Australian Securities Exchange (ASX) - in 2006 SFE Corporation Limited merged with the Australian Stock Exchange Limited to form ASX. ASX help listed companies raise capital and provides exchange-traded and over-the-counter financial services to institutions throughout the Asia-Pacific region and globally. The ASX website is http://www.asx.com.au/.
Specialised Financial and Investment Institutions
Other than banks, there are a range of financial and investment institutions that a foreign investor can gain access to. These include the following:
NB. Contact details of financial and investment institutions can be obtained from Yellow Pages Online.
Permanent Building Societies - cooperative non-profit institutions whose primary function is to provide mortgage financing for owner-occupied housing. For a list of Permanent Building Societies in Western Australia please refer to Yellow Pages Online (keyword - "building societies").
Corporate Lending Institutions - provide private equity and commercial finance for project start-ups and expansions, including infrastructure finance, equipment finance, commercial lending solutions and mezzanine finance. For a list of organisations in Western Australia please refer to Yellow Pages Online (keyword - "finance").
Credit Unions - mutual non-profit institutions serving primarily the borrowing and lending needs of members. For a list if credit unions in Western Australia please refer to Yellow Pages Online (keyword - "credit unions").
Finance Companies - Providers of short to medium term financing for the household and small-business sectors. The principal forms of lending are instalment credit for retail sales, personal loans, housing finance, wholesale finance, factoring, lease financing, and commercial and property development loans. For a list of organisations in Western Australia please refer to Yellow Pages Online (keyword - "financiers").
Insurance Offices - providers of a range of life and general insurance coverage to individuals and businesses. For a list of organisations in Western Australia please refer to Yellow Pages Online (keywords - "insurance agents", "insurance brokers").
Export Finance and Insurance Corporation (EFIC) - a statutory corporation owned by the Commonwealth Government of Australia. It provides insurance of exporters against non-payment by overseas buyers, guarantees to Australian banks of finance provided to Australian exporters, and loans to overseas buyers of Australian capital goods and services. EFIC's website address is http://www.efic.gov.au/.
Business and Industry Policies
Information on WA's Industry Policy (Enabling Future Prosperity) and Countertrade Policy can be obtained from the Business and Industry section of this site - refer to Business and Industry Policies.
Business Structures
An overview on the principal forms of business organisations in Western Australia (WA) are provided below:
Company
A subsidiary company can be established either through incorporation (takes two or three weeks) or by acquisition of a shelf company (readily transferable within a few days). A foreign company may establish a branch in WA by registering as a foreign company. The company is a popular vehicle of enterprise as it offers investors limited liability. However, it is not uncommon for finance providers to request personal guarantees from major shareholders and directors. Reporting of performance data and financial position are required annually, as a minimum with additional requests for information being at the Australian Securities and Investment Commission's (ASIC) discretion. Detailed information on starting and running a company can be obtained from ASIC (http://www.asic.gov.au/).
Partnerships
Any two or more individuals or companies who intend to carry on business together with a view to sharing profits may form a partnership, the name of which need only be registered where it does not reflect the name of the partners. A partnership is not a separate legal entity and as such all partners are jointly and severally liable. Profits are divided proportionately to each partner and tax is calculated on their respective tax rates. Additionally, the partnership is also required to lodge a group tax return. Partnership names are registered with the Department of Consumer and Employment Protection (https://bizline.docep.wa.gov.au/bnonline/).
Sole Proprietorship
Where a sole proprietor intends to conduct the business under a name other than his or her own name, that name must be registered. Conducting business as a sole proprietor offers simplicity as only an income tax return need to be lodged with regulating bodies. All business revenue and expenses are to be included in the owners personal tax return and income tax will be calculated at the appropriate tax rate. The proprietor is personally liable for all business debts. Business names are registered with the Department of Consumer and Employment Protection (https://bizline.docep.wa.gov.au/bnonline/).
Trusts
There is no requirement to separately register the name of a trust. The name of the trust is usually provided for in the trust deed. Popularity derives from the restriction of creditor access to assets. As with companies, however, a personal guarantee is often sought from either the trustee or major benefactors.
In Western Australia, a potential foreign investor has a choice to operate through whichever entity is preferred. The most common choices are a company, which may be wholly or partially owned, and a branch. A branch may conduct full business transactions.
The decision on which business entity to establish in Western Australia depends on several considerations. These include limitations on foreign participation, availability of local funding, capital requirements, repatriation of capital and profits, and tax planning to minimise tax.
Joint Ventures
A joint venture is usually constituted by a formal agreement which specifies the rights and obligations of parties. A joint venture may be incorporated, by each party subscribing for shares in a joint venture company or unincorporated, where the parties agree by contract to a particular arrangement.
Further Information
For more information on business organisations and company formations, see A Guide to Doing Business in Australia. This publication is available on Middletons Lawyers' website (http://www.middletons.com.au/publications/dbia.asp)
Legal System
The legal system in Australia has developed from British law. Much of the law is codified, but English common law remains important in many areas.
Each of the States and Territories has its own court system and a federal system exists to deal mainly with matters over which the Federal Parliament has jurisdiction. The court system in Western Australia includes the Supreme Court, District Court, Courts of Petty Session, Local Courts, Children’s Courts, and Family Courts.
National Investment 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.
Political System
Australia's system of government is based on the liberal democratic tradition, which includes religious tolerance and freedom of speech and association.
Australia has a three-tier (Federal, State, and local) system of government.
At the federal level is the Australian Parliament (the legislature) and Government, responsible for all matters of national interest such as foreign affairs, immigration, defence, post and telecommunications, pensions and social security, census and statistics, coinage and banks.
Six State and two Territory governments are responsible for schools, police, gaming, hospitals and most community services.
About 750 local governments are responsible for their respective district matters such as hospital and nursing services, kindergartens, local community services, local roads, and sanitation and disposal of refuse.
Parliament House is located in the city of Canberra within the Australian Capital Territory. Australian Government departments, many government agencies and The Lodge, one of the official residences of the Prime Minister, are also in Canberra.
Kevin Michael Rudd was sworn in as the 26th Prime Minister of Australia on 3 December 2007.
Australia has a stable government incorporating the Westminster tradition of separation of powers between the Federal and State Governments and US tradition of checks and balances, in a bicameral (upper and lower house) legislature.
Both the Federal and State Governments actively promote Australia as a prime investment location for manufacturing, operations and regional headquarter activities.
The Government of Western Australia, headed by Premier Hon. Alan Carpenter of the Labor Party, has been in office since February 10, 2001.
Professional Services
Foreign companies investing in Western Australia (WA) can gain access to a wide range of experienced business support services. The following provides an overview of some of the firms currently operating in WA. Contact details can be obtained from Yellow Pages Online.
Legal Firms
There are several prestigious, international legal firms in WA that specialise in commercial law, trade practices, intellectual property, environmental law, and taxation. For a list of organisations in WA please refer to Yellow Pages Online (keywords - "taxation law", "workers compensation", "employment and industrial services", "business law", "solicitors").
Accounting Firms
The world’s six largest international accounting firms are found in WA. The services they offer include auditing, taxation, management consultancy and business services. For a list of organisations in WA please refer to Yellow Pages Online (keyword - "accountants and auditors").
Business and Professional Organisations
There are numerous organisations that can assist you with developing your business in WA, including the Association of Mining and Exploration Companies, Western Australian Chamber of Commerce and Industry, Business Councils and Industry Associations. For a list of organisations in WA please refer to Yellow Pages Online (keyword - "business and professional organisations").
Project Approval Processes for Industrial or Resource Based Projects
The Western Australian Department of Industry and Resources helps developers with the process of obtaining government approvals for industrial or resource-based projects.
The Mineral and Petroleum section of this website provides detailed information on the Project Approvals Process.
Sustainability
All of the Department of Industry and Resources' (DoIR) services support the outcome for which the department strives - responsible development of the State's industry and resources for the benefit of Western Australians.
A key role of the Department is to ensure that industry meets Government standards for responsible and sustainable development.
DoIR often becomes involved in environmental and social projects/studies, to assist industry to achieve responsible development of Western Australia's resources.
The Mineral and Petroleum section provides further information on Environmental Services.
Taxation
The Commonwealth Government, which is the major taxing authority, solely imposes income tax. The Commonwealth also receives revenue from indirect taxes: sales tax, customs and excise duties, fringe benefits tax, as well as taxes levied on natural resources projects such as the petroleum resources rent.
The Government of Western Australia derives most of its revenue from payroll tax, stamp duties, financial institution duties, debits tax and land tax. Additionally, substantial revenue in this State is raised through oil and mineral royalties and business franchise fees.
At the local level, annual charges know as "rates" are levied on the owners of real estate. The revenues are used to finance essential services such as garbage disposal, street maintenance, recreational facilities, parks and sporting amenities.
For further information on taxation refer to the Australian Taxation Office (http://www.ato.gov.au/businesses/) and the Western Australian Department of Treasury and Finance's Office of State Revenue (http://www.dtf.wa.gov.au/).
Workforce
Industry has access to a workforce of over one million people that is highly skilled by world standards.
Almost half of Western Australian workers have secondary or tertiary qualifications.
There are many regional secondary schools, agricultural colleges and campuses of major Technical and Further Education colleges (TAFE) and universities that ensure skilled workers are available close to the source of most produce.
For further information, please select from the following links:
Executive Recruitment and Employment Agencies - A wide range of employment firms can be found in WA that assists foreign companies of all sectors in their staffing needs. For a list of organisations please refer to Yellow Pages Online (keyword - "employment services").
Chamber of Commerce and Industry of WA (http://www.cciwa.com/) - State’s main employer advocate body.
Chamber of Minerals and Energy of WA (http://www.cmewa.com.au/) - represents the collective interests of companies involved in minerals and energy commodities, exploration, production and processing in WA.
Department of Education and Training (http://www.det.wa.edu.au/) - responsible for planning the long-term development of the vocational education training system to meet current and future needs of industry, the community and regional areas.
WA Industrial Relations Commission (http://www.wairc.wa.gov.au/) - established under the Industrial Relations Act 1979 to prevent and settle industrial disputes within WA.
Labour Relations in WA (http://www.docep.wa.gov.au/labourrelations/) - information on industrial relations, working conditions, wages and salaries for employees in WA provided by the Department of Consumer and Employment Protection.
WorkCover WA (http://www.workcover.wa.gov.au/) - the state government body responsible for administering workers' compensation legislation in WA.
