Australia

Australia is the 4th largest economy in the Asian region and is the 12th largest economy in the world. Australia’s economy is consistently ranked among the strongest of advanced economies in the Organization for Economic Co-operation and Development. It is world’s 12th largest economy and a top performing nation on almost every measure of excellence, from health to wealth, from ease of doing business to educational attainment. With low unemployment, low inflation and a highly skilled workforce, and with strong links with the fastest-growing region in the world - the Indo-Pacific - Australia’s economy is set to prosper well into the future. Australia is a nation of infinite opportunities in a country of endless potential - a nation that is ‘open for business’. Australia’s two-way trade in goods and services was worth nearly $670 billion in 2015 - a vital component of Australia’s economic prosperity.

AUSTRALIAN TRADE & INVESTMENT COMMISSION

The Australian Trade and Investment Commission–Austrade–contributes to Australia’s economic prosperity by helping Australian businesses, education institutions, tourism operators, governments and citizens as they:

• Develop international markets and promote international education
• Win productive foreign direct investment
• Strengthen Australia’s tourism industry
• Seek consular and passport services

Austrade achieves this by generating market information and insight, promoting Australian capabilities, developing policy, making connections through an extensive global network of contacts, leveraging the badge of government offshore and providing quality advice and services.

Austrade aims to create value for businesses and institutions, in a way that represents a good investment for the taxpayer and meets or exceeds all appropriate standards of ethical behavior.

Austrade’s role is to advance Australia’s international trade and education, investment, and tourism interests by providing information, advice and services.

Specifically, Austrade:

Helps Australian companies to grow their business in international markets, including through administration of the Export Market Development Grants (EMDG) scheme and the Trade Start programs and promotes the Australian education and training sector in international markets.

• Provides coordinated government assistance to promote, attract and facilitate productive foreign direct investment (FDI) into Australia.
• Provides advice to the Australian Government on its trade, tourism, international education and training, and investment policy agenda.
• Develops policy, manages programs and provides research to strengthen Australia’s tourism industry and to grow Australia’s tourism market share.
• Delivers Australian consular, passport and other government services in designated overseas locations.
• Through Brand Australia, promotes awareness of contemporary Australian skills and capability to enrich Australia’s global reputation.

Austrade Programs and Services

Whether you are an Australian company ready to internationalize your business or an international company looking for opportunities within Australia, Austrade can assist.

For Australian exporters and education providers, Austrade have a comprehensive mix of information and customized services to help you to do business within overseas markets and understand foreign regulations and business practices. For international companies, Austrade provides the contacts and information you need to establish your business successfully within Australia or to make the right decision in sourcing Australian products or services.

Recent changes have been made to Austrade programs and services to create a more contemporary and sustainable Austrade and to deliver greater value for the business community and for the Government.

Austrade provides information and advice to assist Australian companies reduce the time, cost and risk of exporting. We also provide a range of tailored trade services to Australian companies looking to expand their business in growth and emerging markets.

General information 

General information about exporting and doing business in international markets is provided free of charge to Australian companies and can be accessed via Austrade’s website, seminars and events or Austrade staff.

Tailored trade services for internationally-ready companies

Austrade’s tailored trade services are primarily focused on providing support to Australian businesses in growth and emerging markets, where there is strong demand for Austrade services and where the most value can be added. These markets include Asia, Africa, Latin America, the Middle East and Russia. In other markets, Austrade can provide with alternative service providers. Tailored trade services are designed for companies that are ready to do business in overseas markets and that meet Austrade’s eligibility criteria. These services include:

• Information and advice on doing business in international markets
• Help with international market selection 
• Identification of relevant international contacts
• Assistance with market entry and expansion
• Identification and follow-up of specific international business opportunities

The Australian Government requires Austrade to recover costs where we work intensively in the direct interest and for the benefit of an individual Australian business. As a result, tailored trade services that require more than two (2) hours of Austrade time are charged on a feefor-service basis.

Financial Support for Exporters 

Austrade provides online information on export financing and other government financial assistance programs. It also administers the Export Market Development Grant (EMDG) Scheme the Australian Government’s financial assistance program for aspiring and current exporters.

Services for Australian Education Providers 

Austrade’s role includes the international marketing and promotion of Australian education and training. 

Austrade support to the education sector is guided by the Framework for the international marketing and promotion of Australian education and training, endorsed by the Minister for Trade on 13 January 2011. 

Austrade delivers branding, international marketing and promotion services on behalf of the Australian education sector. This includes positioning an Australian education internationally through a new international education brand, Future Unlimited. Austrade also supports Australian education and training providers through a range of tailored services to support their international education engagement strategies, including accurate and timely market intelligence and opportunities provided through Austrade’s Market Information Package.

Services for International Investors 

Austrade is responsible for the promotion, attraction and facilitation of productive foreign direct investment (FDI) into Australia.

We are the first national point-of-contact for all investment enquiries. Working in partnership with Australian state and territory governments, we provide investors with the information needed to establish or expand a business in Australia.

Available assistance to potential international investors includes: 

• Initial co-ordination of investment enquiries and assistance
• Information on the Australian business and regulatory environment
• Market intelligence and investment opportunities
• Identification of suitable investment locations and partners in Australia
• Advice on Australian government programs and approval processes
• Our services to international companies are free, comprehensive and confidential

Services for International Buyers 

Austrade also assists international buyers to source goods and services from Australia or to identify strategic Australian business partners.

Referrals Service 

Austrade provides a referrals service to Australian exporters, Australian education providers and international investors. Austrade’s referrals service provides lists of professional and business service providers to firms in order to assist them to navigate complex and unfamiliar international services markets.

WHY AUSTRALIA?

Australia’s highly skilled workforce, robust economy, trusted legal system and stable society make the country an attractive location for foreign investors. The stock of foreign investment in Australia was A$3 trillion at the end of 2015.

A large number of foreign companies are registered in Australia and many have developed close links with local firms. This has generated cooperation on research and development and resulted in Australian companies becoming integral parts of regional and global supply chains.

One of the world’s largest biotech companies, AMGEN from California, invests about A$35 million in local research and development in Australia annually and has been conducting clinical trials in Australia for over 20 years. The company markets eight products in Australia for the treatment of cancer, kidney disease, bone disease and other serious illnesses and employ nearly 150 people in five cities around the country.

Five (5) Reasons to invest in Australia

1. 25 Years of Uninterrupted Growth: Australia’s strong, diverse and growing economy adds up to more opportunities. 
2. World-Class Innovation: Australia’s quality research institutions and commitment to innovation make it a proven destination for bringing new ideas to life. 
3. World’s Fastest Growing Region: With strong trade links, strategic location and a highly educated, multilingual workforce, Australia is uniquely positioned as a location to do business in the Indo-Pacific. 
4. Easy to Run a Business: A well-regulated and transparent commercial environment makes it easy to establish and operate a business in Australia. 
5. Highly Skilled Workforce: Australia’s multilingual workforce is among the most educated in the world.

TRADE

Trade liberalization and economic reform have been at the heart of Australian Government policy for decades

Until the 1960s, Britain and the United States were Australia’s main trading partners. Today the emphasis of Australia’s trade has shifted to Asia, with four out of five of Australia’s top trading partners located there. China, Japan, the United States and the Republic of Korea are now Australia’s largest trading partners.

Australia has a very open market with minimal restrictions on imports of goods and services. This has increased productivity, stimulated growth and made the economy more flexible and dynamic.

Australia has developed a competitive edge in a range of goods and services, from high-technology products such as medical and scientific equipment through to high-quality wine and processed food. Major services exports include education and tourism, and professional and financial services. Services by Australian companies operating overseas provide a major contribution to Australia’s economy.

Australia continues to push ahead with trade liberalization—unilaterally, bilaterally and multilaterally. This will strengthen international economic collaboration; reduce the risks facing the global economy, and bolster growth. Australia plays an active role in the WTO, APEC, the G20 and other trade related forums. Australia has also negotiated bilateral and regional trade agreements with a wide range of countries to strengthen trade and investment flows.

Free Trade Agreements 

Australia has ten FTAs currently in force, with: New Zealand, Singapore, Thailand, US, Chile, the Association of South East Asian Nations (ASEAN) (with New Zealand), Malaysia, Korea, Japan and China. The countries with whom Australia has these FTAs account for 67 per cent of Australia’s total two-way trade. Australia and 11 other countries also successfully concluded negotiations for the Trans-Pacific Partnership (TPP) Agreement in late 2015 and signed the TPP in Auckland on 4 February 2016. 

Australia is engaged in six FTA negotiations—two bilateral FTA negotiations with India and Indonesia, and four plurilateral FTA negotiations with the Regional Comprehensive Economic Partnership Agreement, the Gulf Cooperation Council, the Pacific Trade and Economic Agreement (PACER Plus), and the Trade in Services Agreement.

MINING

With abundant resources, skilled professionals and cutting-edge technology, Australia is a leader in the global mining industry and is among the largest producers of bauxite, iron and zinc ore, nickel and gold. Australia is also a major supplier of energy, including coal, natural gas and uranium. 

In 2015, the mining sector accounted for approximately 9 per cent of the Australian economy (based on industry value added at basic prices) and minerals and fuels accounted for 42 per cent of Australia’s exports. The sector is expanding, driven by a huge demand for raw materials from the rapidly growing economies of Asia. 

The scale of Australia’s resources industry has helped the country become a world leader in the development and manufacture of mining equipment, technology and services. Australian firms are competitive across the supply chain, including in exploration, engineering, processing, environmental management, mine safety, training, and research and development.

AUSTRALIAN AGRICULTURE

Agriculture has always been and is likely to remain for some time, an important component of the Australian economy. While agriculture contributes just 2.3% of GDP, its diminishing importance is not the result of any reduction in output but rather to the growth in manufacturing and the service-based sectors of the economy.

Today, more than 307,000 people are employed in agriculture. Agriculture is the biggest employer in rural and regional communities, but if we consider all those employed in the input and output sectors, food manufacturing and processing, distribution and retail, agriculture provides employment for more than 1.6 million Australians.

Today, Australia’s 135,000 farmers produce enough food to feed 80 million people. Not only do they provide 93% of the domestic food supply, but it supports an export market valued at more than A$41 billion per annum – that’s over 13% of export revenue, according to the Australian Bureau of Agricultural and Resource Economics and Sciences (ABARES).

By value, ABARES figures show the major commodities are grains and oilseeds (29.8%), meat (24.0%), the industrial crops (sugar, cotton and wine) (13.5%), wool (7.0%), dairy (6.6%) and horticulture (4.5%). Dairy accounts for 6.6% of Australia’s exports. With population growth and rising personal income, the emerging middle class in Asia provides the major market for over 60% of Australian agricultural exports. Not surprisingly, China (22.0%) is Australia’s single most important market, but sales to Japan (9.4%), Indonesia (7.3%), Korea (5.8%), Malaysia (3.0%) and Singapore (2.8%) continue to grow.

AUSTRALIAN DAIRY

Australia’s third largest agricultural commodity, dairy farming is firmly established both at home and on the world stage, particularly since the introduction of refrigeration techniques in the 1880s. Here are some fast facts about Australian dairy sector

1. Driving on-farm innovation and using cutting-edge technology, Australia’s dairy sector is a leader in creating and responding to new and emerging consumer demands.
2. Australian dairy farmers are among the most efficient in the world accounting for 10 percent of the entire world’s dairy trade.
3. There are approximately more than 8,500 dairy farms in Australia, with a national dairy herd of 1.6 million cows.
4. Australian dairy farmers produce 9,102 million liters of whole milk per year with the farm gate value of milk production being $4 billion.
5. Dairy farming employs about 27,500 people throughout Australia.
6. The average herd size in Australia is 220 cows, with an average annual milk production of 5,445 liters per cow.
7. Australia exports around 45 percent of its annual milk production.
8. Dairy is the third largest agricultural industry in Australia, worth $2.4 billion in exports.
9. The Top 3 Australian export destinations for dairy products are: Japan ($459m, 19%), China ($229m, 10 %) and Singapore ($204m, 9 %).
10. Australia accounts for 10 % of the world trade in dairy products, behind New Zealand (35 %) and the European Union (32 %).

AUSTRALIAN MEAT & LIVESTOCK

Australia is among the world’s largest and most successful and efficient producers of commercial livestock and a leader in the export of red meat and livestock. The total value of Australia’s off-farm beef and sheep meat industry is A$17 billion. Australia is a world leader in the export of commercial livestock. The live trade is a significant contributor to the Australian rural economy and has provided an important market for Australian cattle, sheep and goat producers for more than 30 years. Australians consume an average of 40.9kg of red meat each year. This is made up of 30.9kg of beef, 9.5kg of lamb and 0.5kg of mutton.

AUSTRALIA’S SHEEP INDUSTRY

Australia is the world largest exporter of sheep meat and is the world’s second largest producer of lamb and mutton. The off-farm meat value (domestic expenditure plus export value) of the Australian sheep meat industry was approximately $4.83 billion in 2015-16 – up 2% on the 2014-15 periods.

1. Australia produced approximately 8% of the world’s lamb and mutton supply in 2013 Australia is the largest exporter of sheep meat in the world
2. Australia is the world’s third largest live sheep exporter (FAO 2013)
3. In 2015-16, Australia exported 56% of total Australian lamb production and 91% of total Australian mutton production
4. The value of total lamb exports in 2015- 16 was $1.78 billion and the value of mutton exports was $700 million
5. Australian live sheep exports were valued at $228 million in 2015-16
6. Around 200,000 people are employed in the red meat industry, including on farm production, processing and retail
7. The gross value of Australian lamb and mutton production in 2015-16 is estimated at $3.3 billion
8. Lamb and mutton production (including live exports) contributed 6% of the total farm value of $57.8 billion in 2015-16

AUSTRALIA’S BEEF INDUSTRY 

1. Australia has approximately 3% of the world cattle and buffalo inventory, with India, Brazil and China taking the top three places
2. Australia produces 4% of the world’s beef supply and was the world’s largest beef exporter during 2015
3. In 2015-16, Australia exported 74% of its total beef and veal production to 84 countries.
4. Value of total beef and veal exports in 2015-16 was $8.5 billion.
5. Australian live cattle exports were valued at $1.5 billion in 2015-16
6. The gross value of Australian cattle and calf production (including live
7. Cattle exports) in 2015-16 was estimated at $14.3 billion
8. Cattle are estimated to have contributed 25% of the total farm value of $57.8 billion in 2015-16

AUSTRALIA’S TOP 5 WEALTHIEST INDUSTRIES

FINANCIAL INDUSTRY

Comprised of insurance companies, investment banks, trading banks, REITs and asset managers, the financial sector is the largest industry sector by market capitalization. Combined with the size of the Australian financial sector, the assets pool managed and the skilled talent bank, Australia has become a major center of capital markets activity in the Asia Pacific region. Australia has the seventh largest liquid stock market in the world, four of the world’s nine banks rated AA or above by Standard and Poor’s, and the fourth largest pension fund pool globally.

HEALTHCARE INDUSTRY

Biotechnology, pharmaceuticals, medical practice and pathology operators, as well as junior life sciences and medical device companies make up Australia’s diverse healthcare industry. With almost 450 biotechnology companies, Australia is the leading location of biotechnology companies in the Asia Pacific region.

INDUSTRIALS & MATERIALS INDUSTRY

Despite the global economic downturn, the Industrials side of this sector has been busy building, constructing and engineering everything from infrastructure to transport and commercial buildings. However, due to a slowdown in national construction, major industry players have expanded into Asia, US, Europe and the Middle East.

METALS & MINING INDUSTRY 

With over 600 publicly traded companies on the ASX, Australia’s metals and mining sector is capitalizing on a plentiful array of natural resources that helped carry the nation through the global financial crisis. The sector is comprised of some of the largest global diversified resource companies but numerous junior miners and mid-tier producers round out the sector. In fact, over 400 new junior resource floats in the last five years were funded by Australian investors.

ENERGY & UTILITIES INDUSTRY

Like the metals and mining sector, Australia’s massive energy industry has been fortuned by outstanding energy assets and a bevy of natural resources. This sector is made up of businesses capitalizing on the exploration and development of coal, uranium, oil and gas and renewable energy assets. As a result, Australia has become the world’s chief coal exporter and a major supplier of LNG and Uranium to Asia. Water, electricity, and gas distribution, generation and infrastructure make up the utilities side of the industry.