Common entry points
Sydney is one of the major commercial hubs of the Asia Pacific region. A number of multinational companies and some of Australia’s largest companies have their corporate headquarters in Sydney.
Melbourne is also a significant business centre. In a recent index of the world's most influential commercial centres, Sydney ranked fifth in the Asia Pacific region and Melbourne seventh.
Getting your product into market
New Zealand goods are given preferential treatment and generally can enter Australia duty free. There are also no currency restrictions or visa requirements.
Australian regulations that are the same, or similar to, New Zealand’s include:
- anti-dumping
- marking and bar codes
- packaging and labelling
- food standards
- product liability.
Exceptions include:
- many Australian approval authorities (such as in agricultural chemicals, drugs and medical products) do not automatically recognise New Zealand certifications
- apparel packaging and labelling
- safety regulations where each state and territory have their own health and safety rules.
Taxation
New Zealand and Australian companies are on a more or less equal tax footing for income earned in their respective countries and the repatriation of funds.
A 10 percent goods and services tax (GST) applies to most goods and services sold or consumed in Australia. It is payable on taxable imports, regardless of whether or not the importer is registered for GST.
Exporters must determine whether they are an importer of goods into Australia. It’s a complex area of tax law. Anyone uncertain of their position should get advice from their financial or legal advisors.
Logistics
Australia’s major eastern cities can usually be reached from New Zealand’s main centres by air, more quickly in some cases than deliveries within Australia. Many New Zealand companies run a ‘just in time’ air freight service to Australian customers.
A wide range of shipping services are available from New Zealand to Australia’s major ports.
Setting up an office
The most common options of New Zealand businesses setting up an Australian office are:
- establishing or acquiring an Australian subsidiary
- establishing a branch office.
Opportunities
- The perception of New Zealand products and services in Australia is generally very positive, especially in the wine, biotech, information and communications technology, fashion, screen production and marine sectors.
- Australian consumers are increasingly influenced by value, brand awareness and innovation. Many New Zealand exporters have moved away from trying to compete on price to providing innovative and different products.
Challenges
- To improve their export growth and better integrate into the market, New Zealand companies need to consider setting up in Australia, entering into joint ventures or buying into distribution chains.
