Market sectors
In mid 2006 there were 25,600 ICT businesses, 94 percent ICT specialist businesses mostly in the computer consultancy services industry.
Most of the leading international ICT companies have operations in Australia. Underneath the multinational corporations and large local companies is a plethora of small privately owned companies competing for the ICT dollar.
Small businesses employing fewer than 20 people make up 95 percent (24,400) of all ICT businesses in Australia.
The 188 ICT specialist businesses employing 100 staff or more account for less than 1 percent of all ICT specialist businesses in Australia, yet contribute 55 percent of employment and 72 percent of total income.
There are 650 software product and 152 hardware product companies with more than five employees and annual revenue of more than A$1 million operating in Australia.
Regulations
Under CER, goods manufactured in New Zealand, or goods with over 50 percent value added in New Zealand, are not liable to tariffs and duties. They are, however, still liable for local taxes.
In Australia the goods and services tax (GST) is set at a 10 percent and is charged on all goods and services ‘in operation’ in Australia.
Opportunities
- The core principle underpinning Australian Government procurement is value for money. The Government is helping small to medium sized enterprises to get access to its ICT procurement market. Guidelines require government purchasing officers to ensure that SMEs have an appropriate opportunity to compete for business.
- Australian health market ICT spending was estimated to be $2.1 billion in 2007. It is growing at an annual average rate of 15 percent.
- The Australian financial sector is one of the largest users of ICT in Australia. Financial institutions tend to adopt the most advanced technological solutions and use them to improve the quality of service for their customers. Product and process innovation are among the main issues credit institutions have been dealing with in recent years.
Challenges
New Zealand ICT software and services do not have a strong reputation in Australia.
Differences in business culture, segment definitions, market size and market expectations all help make the New Zealand ICT channel different to that of Australia’s.
