6 Advantages of Doing Business in Australia (with Stats and Data)

Australia might not be the first place that comes to your mind when thinking about global business hubs, but maybe it should be. 

With a resilient economy, a skilled workforce, and a welcoming, vibrant culture, Australia offers a unique combination of benefits that can set up a business for sustainable growth. 

If you're on the fence about expanding to or starting a business in this country, here are some compelling reasons to take the leap.

1. Business Registration Cost

When looking at business registration costs across key locations, Australia offers a range of options, with costs varying by structure. 

Here is the latest update regarding registration costs, according to ASIC: 👇

In comparison, sole proprietorships in the United States pay around USD 70 to USD 100 for a business license. 

At the same time, LLCs face costs that vary greatly by state, like California's USD 70 registration plus an annual USD 800 franchise tax. Corporations in the U.S. see fees from USD 100 to USD 300 for incorporation, with added annual costs based on the state.

In the United Kingdom, registering as a sole trader requires no upfront fees but HMRC self-assessment. Limited companies in London have a minimal registration cost of GBP 12 to GBP 100. 

However, annual accounting fees can exceed GBP 500, especially for ongoing support.

For Canadian entrepreneurs in Ontario, sole proprietorship registration costs CAD 60 to CAD 80, while incorporating a business costs CAD 200 to CAD 400, with annual fees adding another CAD 100 to CAD 300.

Starting a business in Australia is known for its simplicity, thanks to a supportive system and clear steps. Here's a breakdown of the process:

2. Cost Of Office Renting

In 2024, office rental costs in Australia show notable differences depending on location and workspace style, making it worth exploring options. Nationally, renting a private office averages around AUD 665 per desk monthly, while coworking desks are slightly lower at AUD 500. But the real story unfolds when we dive into specific states and cities:

💡 Did you know? Up to 55% of Australia’s workforce prefers a hybrid work model, and currently, 34% of employees are already working in a hybrid setup.

In major cities, Sydney leads with private offices at around AUD 938 per desk – unsurprisingly the highest nationwide – while coworking spaces are more economical at about AUD 600. Melbourne keeps pace, with private desks at AUD 735 and coworking options close at AUD 720. 

Moving to Brisbane, you'll find private desks at around AUD 621, and Perth comes in at AUD 750, with coworking desks slightly lower at AUD 675. 

Adelaide stands out as one of the more affordable options, averaging AUD 634 per desk.

Trends show a slight price increase overall, with demand surging for smaller office spaces or even virtual offices as companies embrace flexible work setups post-pandemic.

3. The Rise of Digital Advertising

In 2024, digital advertising has taken the lead as Australia's favourite way for businesses to connect with customers. 

Social media and search engines dominate this space, with each channel offering unique ways to target specific audiences and boost engagement.

Despite digital's dominance, traditional advertising holds steady for broader reach. Television ads still attract major brands, especially during peak viewing, while radio advertising remains popular among local businesses connecting with community audiences.

So, to reach your audience effectively, find the balance between digital innovation and traditional methods!

4. Strong Economy

Australia's economy has a lot going for it, especially if you're considering setting up or expanding a business here. A stable, resilient market and a business-friendly environment offer a reliable foundation for growth:

Key Sectors Worth Exploring

Australia's economy thrives on a mix of well-established and rapidly growing sectors, each making significant contributions to its overall resilience and GDP. Here's a closer look at the sectors driving Australia's economic engine:

1. Service Sector: Dominating about 65% of GDP, this sector includes essential services like finance, healthcare, education, and professional services. The financial services industry alone adds 7.4% to GDP, which is crucial in supporting domestic and international markets.

2. Mining and Resources: Accounting for 13.5% of GDP, Australia's rich natural resources make it a global leader in exports like iron ore, coal, and natural gas. With steady demand from international markets, especially China, mining continues to attract investment and drive economic growth.

3. Agriculture: Though it contributes 2% of GDP, Australia's agricultural sector is a major global player, exporting products such as beef, wheat, and dairy. Known for its resilience and sustainable practices, agriculture supports food security across the Asia-Pacific.

4. Manufacturing: Representing 11% of GDP, manufacturing is key in job creation and local economic stability, focusing on industries like food processing, machinery, and chemicals.

5. Construction: Contributing around 9.5% of GDP, the construction sector is buoyed by government spending on infrastructure and increasing demand for housing and commercial space, reflecting Australia's growing population.

6. Healthcare: With a contribution of 12.8% to GDP, healthcare is one of Australia's fastest-growing sectors, driven by an aging population. This sector is set to expand further, with an estimated annual growth rate of 4.5% from 2021 to 2028.

7. Technology, Media, and Telecommunications (TMT): As an emerging sector, TMT is experiencing rapid growth thanks to advances in AI, blockchain, and a robust startup ecosystem, attracting significant investments in cutting-edge technologies.

5. Strategic Geo Position

If you're considering expanding your business, Australia's position in the Asia-Pacific region provides a range of strategic advantages that are hard to match. Here's how setting up in Australia can support your growth and open doors across Asia's dynamic markets.

1. A Strategic Gateway to Asia's Major Economies

Australia's location isn't just convenient; it's a gateway to powerhouse economies like China, Japan, South Korea, Singapore, and Indonesia. 

Being positioned along critical trade routes allows businesses in Australia to connect directly to Asia's high-demand markets while still benefiting from Australia's stable environment.

Imagine setting up here and having access to both Western and Eastern markets, seamlessly navigating the Indo-Pacific trade routes. This geographical advantage alone can transform how you expand and connect with global customers.

2. Strengthened Economic Ties with Southeast Asia

Australia has prioritised building robust relationships with Southeast Asia, which is expected to become the world's fourth-largest economy by 2040. This means more than just access – it means investment in sectors where growth is booming.

For example, Australia's government has focused on expanding technology, infrastructure, and agribusiness ties. If your business aligns with these areas, Australia can connect you with lucrative markets that are actively seeking solutions in these sectors.

3. Diversification Brings Stability and Security

Australia is committed to building partnerships beyond China and strengthening ties with other key economies like India and Japan. This diversification isn't just about expanding reach. It's about reducing dependence on any single market and providing more economic stability.

For your business, this means a safer investment environment. When your operations are based in Australia, you're tapping into a region that's hedged against geopolitical uncertainties, making it a reliable, long-term option for expansion.

4. Resource-Rich Economy for Tech and Energy Sectors

Australia's natural resources are invaluable, especially for industries driving the future. If your business operates in technology, renewable energy, or manufacturing, Australia's rich reserves of minerals like lithium and rare earth elements could be a direct advantage. 

These resources are essential for batteries, tech devices, and sustainable energy solutions, with demand rising sharply in Asian markets focusing on green energy.

Setting up in Australia means aligning with a nation that's a critical supplier in the global green transition, providing you with both resources and a strategic position in the supply chain.

5. A Stable, Business-Friendly Environment

Beyond its geographic and economic advantages, Australia offers a transparent regulatory framework and a highly stable political environment. These conditions are vital if you're looking to expand with confidence and predictability, knowing that your business can grow without unexpected barriers.

6. Government Support and Incentives

The Australian government actively supports small and medium-sized enterprises (SMEs), recognising their critical role in driving the national economy. The government helps businesses grow, innovate, and compete globally through various programs and incentives:

Comprehensive Support Programs

Beyond general incentives, the government has launched targeted programs to foster innovation and growth in SMEs:

💡 Did you know? Acknowledging small business owners' unique challenges, the government has launched mental health initiatives, like NewAccess for Small Business Owners.

This program provides free support to help entrepreneurs manage stress and improve well-being.

Final Thoughts: Could Australia Be Your Business's New Home?

Australia combines economic strength, a welcoming culture, and access to some of the world's most exciting markets, making it a fantastic place for business. 

With government support, a diverse workforce, and a commitment to innovation, Australia provides a robust foundation for success. So, if you're weighing options for where to take your business next, don’t overlook these advantages of doing business in Australia!

📌 Also, don’t miss out on our 12 Benefits of Registering a Company in Australia post!

Why ANNA is the Perfect Partner for Starting and Running Your Business in Australia

Running a business is exciting, but it can come with its fair share of stress – from managing paperwork and ensuring tax compliance to keeping track of finances and deadlines. With ANNA, however, you don't have to handle it all alone.

⚡ Effortless Company Setup

ANNA takes the hassle out of company registration. With just a few steps, you'll have your Australian Company Number (ACN) and all the necessary ASIC documents sent right to your inbox. Need an ABN? ANNA can handle that, too, so you're ready to start operating immediately with everything in place.

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ANNA doesn't stop at setup; it helps you run your business smoothly every day. Here's how:

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