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There are advantages and also potential challenges for Northern Ireland companies doing business in Australia.

Advantages of exporting to Australia

Australia can offers numerous benefits to companies looking to do business in the region including:

• Free Trade Agreement (FTA) with the UK
• the strong Australian dollar makes British products very affordable
• proximity to Asia Pacific economies
• familiar products and service providers
• common language and similar culture
• similar business and legal practices
• similar technical standards
• an extended period of strong economic growth
• strong business and consumer base
• strong technology sector
• similar language, culture and business practices
• high personal wealth
• strong intellectual property (IP) protection

Disadvantages of exporting to Australia

You should also be aware of some challenges you could face when exporting to Australia. It is a large market to do business in which can lead to some unique challenges including:

• Australia is approximately 24 hours away from the UK by plane
• Australia covers three time zones and is as big as the USA
• distances between capital cities are vast, eg Perth is nearly 3,300 kilometres from Sydney
• Australia is between eight and 11 hours ahead of UK time
• weather extremes in winter and summer can have an impact on businesses
• doing business in Australia can be expensive due to the current exchange rate between the two countries

Opportunities exist for UK companies across a wide range of sectors, including financial services and fintech, technology, cyber security and infrastructure.

There are a number of sectors that could potentially offer some opportunities to Northern Ireland companies.

Financial services and Fintech

Australia has a 9.5 trillion Australian dollars financial sector which equates to almost five times Australia’s GDP (Australian government). Australia is ranked in the top 10 nations for fintechs according to Global Fintech Index City Rankings 2020, with strong fintech adoption. This presents opportunities for UK fintech companies as Australian financial institutions look to evolve their businesses.

Technology

Australia is a great strategic location for UK tech companies looking to expand, because of its significant research infrastructure, its highly-skilled workforce and the strong reputation of British technology.

Infrastructure and smart cities

By 2029, Australia’s State and Federal governments are expected to have invested over 100 billion Australian dollars in transport infrastructure, through its rolling infrastructure plan. Projects include a new inland railway, a new Western Sydney Airport and metros for Sydney and Melbourne.

E-commerce

Australia’s e-commerce market is large and expected to continue to grow over the coming years. There are considerable opportunities for UK businesses to sell online to Australian consumers.

Cyber security

Australia is emerging as an advanced cybernation with the sector worth 2 billion Australian dollars and projected to triple to 6 billion dollars by 2026 (Australian Cyber Security Growth Network, 2021). As a result of increased government prioritisation and a rising threat environment, Australia is providing funding and 91Ï㽶»ÆÉ«ÊÓƵ to promote market growth and improve national cyber resilience.

There are a lot of things to consider before you start exporting to Australia. It's essential to find out about local rules and regulations on tax and duty in your intended market.

VAT

You can zero-rate the sale of goods exported to Australia. You must get evidence that the goods were exported and keep it as part of your records. There’s also a 10% tax on the sale of most goods and services.

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Corporate tax

The corporate tax rate in Australia is 30% for income after July 2015, or 28.5% if you are a small to medium size business.

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Import regulations

The regulates all goods imported into Australia. You’ll need to provide import declarations and documents and pay all relevant duties and taxes.

You should check you’ve paid on any alcohol, fuel, tobacco or other excise equivalent products you send to Australia.

Quarantine regulations

Australia’s biosecurity measures aim to prevent disease and pests entering the country through a strict inspection or treatment regime. There’s little you can do if your shipment encounters quarantine issues at Australian customs.

Check whether your goods are subject to in Australia and its external territories.

Product standards

Though Australia has adopted international standards where possible, there are Australian standards with no international equivalent which may require your product to be modified, or impact how your product enters the market.

Check Australia’s to make sure you’re meeting legal requirements for products.

Packaging and labelling

Packaging must meet Australian consumer health and environmental legislation. There are specific labelling requirements for:

• chemical products
• cosmetics
• electronic goods
• foodstuffs
• most therapeutic products

All labelling must use the metric system.

You can from Food Standards Australia New Zealand (FSANZ).

Trade barriers

Trade barriers, such as tariffs or taxes, can raise costs, cause delays, or even stop you from exporting. You should check for any issues that may impact your business when exporting.

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that are affecting your business so you can get help fixing them.

Intellectual property

Intellectual property (IP) rights are territorial and rights granted in the UK do not provide protection elsewhere. You should consider getting IP protection abroad if you want to trade overseas or sell to overseas customers via the internet.

The Intellectual Property Office provides practical information to help you . Further 91Ï㽶»ÆÉ«ÊÓƵ for British businesses can be found through a network of , based in key UK export markets.

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Payment terms

Payment conditions should be set out in your contract and must be factored into prices. For business-to-business transactions, these can range from immediate payments on receipt of goods (often with a negotiated small discount) to a negotiated 60-day payment. You need to use secure terms of payment in Australia through a letter of credit, cash, or partial payment in advance.

Logistical challenges

Australia’s sheer size and distance from the UK means you may face challenges around:

• travelling (24 hours from the UK by plane)
• the time and money needed to ship or send goods
• the time difference (7 to 11 hours ahead of the UK)
• vast distances between states and cities within the country

Business culture

It’s important to note that Australians are informal in their business interactions. First-name terms tend to be the norm in most business situations. Directness and plain speaking are valued.

The UK has signed a Free Trade Agreement (FTA) with Australia which will make exporting to Australia cheaper, faster and more secure for UK businesses.

How to utilise the FTA

The UK-Australia FTA contains many new improvements and opportunities for UK businesses seeking to export to Australia.

From more flexible rules of origin and customs clearance, to specialised 91Ï㽶»ÆÉ«ÊÓƵ for small traders.

• Find including guidance on proving rules of origin, accessing simpler customs, and benefiting from zero tariffs.
•   with market opportunities and the steps you need to take to utilise the agreement.

Benefits of the UK-Australia FTA include:

• more flexible rules of origin when exporting goods that are better suited to modern supply chains
• equal treatment and improved business environment for UK businesses operating in Australia
• easier travel rules for UK businesspeople wishing to deliver services in Australia

Some of the provisions in the new FTA will apply automatically, whilst others may require you to take action first before you can benefit. The action(s) you will need to take also depends on the type of goods or services you are selling.

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Developing exports to Australia could be a part of growing your business. But breaking into the market can be challenging. The right 91Ï㽶»ÆÉ«ÊÓƵ and advice can significantly improve your prospects.

Invest NI offers a range of advice, plus additional 91Ï㽶»ÆÉ«ÊÓƵ services for businesses trading with Australia.

• – get 91Ï㽶»ÆÉ«ÊÓƵ with market research and market visits.
• - join trade missions and exhibitions to access new opportunities, strengthen relationships, and accelerate your business’s global growth.
• – access export and capability solutions to get the knowledge and skills to structure and build on your export activity.
• - assesses your business's readiness for exporting and get a tailored report sent to you, detailing your journey, next steps, practical tips, templates, and 91Ï㽶»ÆÉ«ÊÓƵ available.
• Invest NI offers advice and 91Ï㽶»ÆÉ«ÊÓƵ to help businesses maximise dual market access.
• Invest NI can advise on how to use to 91Ï㽶»ÆÉ«ÊÓƵ your exports
• Invest NI can advise on and may be able to provide financial 91Ï㽶»ÆÉ«ÊÓƵ directly to businesses.

As well as Invest NI, there are other sources of 91Ï㽶»ÆÉ«ÊÓƵ to assist with trading with Australia.

• The Northern Ireland Chamber of Commerce (NICC) provides members with a to learn, up-skill and connect as they grow locally and internationally.
• Department for Business and Trade (DBT) in-market 91Ï㽶»ÆÉ«ÊÓƵ - eligible UK businesses can on exporting to specific countries from the DBT global network of international market hubs.
• A freight forwarder can organise delivery and customs clearance, minimising the logistical problems you deal with directly.
• Your bank can advise you on the most appropriate form of financing and how to protect yourself against foreign exchange risks and non-payment.