Why international businesses should expand to Australia
In an increasingly competitive global market, selecting the right country for business expansion is crucial. Australia presents a compelling case for international businesses looking to grow in a stable, prosperous and opportunity-rich environment. From a resilient economy to a skilled workforce and a business-friendly regulatory landscape, Australia offers multiple advantages that can benefit international businesses. Below are key reasons to expand into Australia and how each factor can enhance your international business success.
By Ro Elvinia
A strong and resilient economy
Australia is one of the world’s most robust economies, consistently outperforming many advanced nations. Based on the 2024 Benchmark Report by Australian Trade and Investment Commission, from 2019 to 2024, Australia’s economy was projected to grow by 11.1%, surpassing the average growth rate of 7.8% for advanced economies. This stability makes Australia a preferred destination for global investors and businesses looking for a reliable base in the Asia-Pacific region.
A growing economy ensures a dynamic consumer market, a strong demand for goods and services and a favourable environment for long-term business planning. Hence, international businesses that establish operations or open a business in Australia can leverage economic growth for increased revenue and expansion opportunities.
Favourable tax environment
With tax revenue accounting for only 29% of Gross Domestic Product (GDP) – 5 percentage points below the Organisation for Economic Co-operation and Development (OECD) average – Australia maintains one of the lowest overall tax rates amongst high-income nations. Businesses can also benefit from various tax deductions, credits and incentives, such as the Research and Development (R&D) Tax Incentive, which supports innovation-driven enterprises.
Lower corporate tax rates and financial incentives reduce operational costs, allowing your international businesses to allocate resources to expansion, innovation and workforce development.
Transparent governance and strong legal protections
The country is widely recognised as one of the least corrupt nations and for its stable governance, strong institutions and adherence to the rule of law. Australia’s legal system ensures business transparency, protection of intellectual property and robust enforcement of contracts, which fosters confidence amongst international investors.
With a stable and predictable regulatory environment, it minimises risks and provides a secure foundation for your business operations. You can then operate with confidence, knowing your investments and intellectual assets are well protected.
Business-friendly policies and open markets
Australia is one of the world’s most business-friendly destinations, ranking 6th for ease of doing business. The country has low tariff barriers, a strong macroeconomic environment and a streamlined regulatory framework that encourages entrepreneurship and foreign investment.
Therefore, setting up your international operations in Australia can be relatively efficient and simple with the right professional support, allowing your international businesses to enter the market quickly and take advantage of trade opportunities without unnecessary bureaucratic hurdles.
A highly skilled and educated workforce
Our strength in skills and innovation is built on multiple foundations, including a world-class education system, a commitment to continuous learning and an open approach to skilled migration. Nearly 48% of the Australian workforce holds a tertiary qualification, a significant increase from 39% a decade ago. Key industries such as finance, technology, professional services and education have an even higher percentage of tertiary-educated workers, with around 70% or more of their employees holding advanced qualifications.
Moreover, Australia’s universities and vocational institutions work closely with industries to produce graduates with in-demand skills, ensuring that businesses have access to professionals trained in cutting-edge technologies and business practices. Lastly, the country’s openness to global talent allows international businesses to tap into a diverse and mobile workforce, bringing fresh perspectives and expertise to support expansion and innovation.
Having access to a well-educated and skilled workforce enhances productivity, fosters innovation and ensures your business can attract top talent to drive your growth strategies.
A strong and dynamic financial system
The financial sector of Australia is both innovative and stable, managing assets worth approximately US$8 trillion. The Australian dollar is one of the most traded currencies globally, and the country’s repayment culture boasts a 99.3% on-time loan repayment rate, significantly higher than the global average which is 94.8%.
A robust financial system provides international companies with strong access to capital, credit facilities and investment opportunities, ensuring your business’s financial security and growth potential.
Global trade links and market access
Its strategic position in the Asia-Pacific region, combined with its extensive network of trade agreements, makes Australia a highly attractive hub for global business. The country has 18 Free Trade Agreements (FTAs) covering major economies, including the United States, China, Japan, India, South Korea and most ASEAN nations. These agreements provide businesses with preferential access to markets that collectively account for over 80% of Australia’s two-way trade, reducing tariffs, streamlining regulations and enhancing investment opportunities.
Australia is also a member of the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) and the Regional Comprehensive Economic Partnership (RCEP), two of the world’s largest trade agreements, further expanding access to high-growth economies. These agreements create a business-friendly environment by lowering trade barriers, facilitating supply chain integration and offering Australian-based companies a competitive edge in global markets.
International businesses that start a company in Australia can therefore enjoy seamless access to high-growth international markets, reduced trade barriers and enhanced export opportunities – particularly in Asia – boosting profitability and expansion potential.
Proximity to Asia’s fast-growing economies
The country’s geographical proximity to Asia positions it as an ideal gateway to the region's fast-growing markets. As Asia’s share of global GDP is projected to rise from 21% in 1981 to 45% by 2026, its economic power is becoming increasingly influential. This growth is particularly beneficial for Australia, which has strong trade ties with Asia, with most of its key export partners located in Northeast and Southeast Asia.
Furthermore, Australia’s network of 18 FTAs provides businesses with preferential access to these expanding markets. As Asia's middle class is projected to reach 3 billion by 2030, demand for Australian exports – including agriculture, resources, energy, tourism, healthcare services and education – is set to surge. This growth presents significant opportunities for international businesses to broaden their reach and influence, driving global expansion.
A high quality of life and attractive business environment
We remain a top destination for global talent, ranked 4th for attractiveness by the Organisation for Economic Co-operation and Development (OECD). Australia’s clean, safe cities, world-class education and excellent healthcare make it an ideal place for both individuals and businesses. Mercer’s 2022 Cost of Living Index shows Australia offers competitive living costs compared to major Asian cities, while its strong economy drives wealth distribution – nearly 6 million households earn over US$75,000 annually.
For international businesses seeking to expand into the Australian market, the high quality of life, stable healthcare system and growing economy create an attractive environment for both you and your employees. Australia’s ranking as the happiest country in the Asia-Pacific region, according to the 2023 World Happiness Index, further reflects the country's well-rounded appeal, making it an ideal destination for both talent and business.
How ABN Australia can help your business expand
Expanding your business internationally can be complex, but ABN Australia simplifies the process by offering expert corporate services tailored to international companies entering the Australian market. From business establishment services and tax compliance to workforce solutions and ongoing operational support, our team ensures a seamless transition for global businesses.
Whether you need assistance with company formation, resident director services or navigating Australia’s regulatory landscape, ABN Australia is your trusted partner for business success.
Are you ready to expand or register your foreign company in Australia? Contact ABN Australia today and take the first step towards a prosperous future in one of the world’s most dynamic economies.
Published: 13th Feb 2025 | Last updated: 13th Feb 2025