Doing Business in Australia

-Kala Madhavan Madam

(Perspective Management)
Group Members
Swapnil Baikerikar - 04
Avanti Darade 12
Sayali Phatak 44
Tushar Sadhye 47
Nikita Watve - 55
What does PESTLE Analysis mean?
Its Framework used to scan the organization's
external macro environment.
Letters PESTLE stands for-
I. Political
II. Economical
III. Socio Cultural
IV. Technological
V. Legal
VI. Ecological

Political Environment
Meaning- Political environment refers to the stability of
the political environment & the attitudes of political
parties/movements.
This manifest in government influence on tax policies, or
government involvement in trading agreements.
In case of Australia, it is a liberal-capitalistic democracy.
Here, the state keeps interfering substantially in the
economy through various roles; for instance parliament
might decide to set up importation taxes aimed to protect
the national economy or environmental protection laws
aimed to protect the natural heritage of the country.

How does Government intervene in International
Business? (Home country i.e. India)
Tariffs
Subsidies
Import quotas & VER(voluntary export restraints )
Currency controls
Local content requirements
Anti-dumping rules
Export financing
Free- trade zone
Administrative policies


Why businesses choose Australia (Sydney &
New South Wales)- Host Country
Sydney business & financial capital
Strength , Stability & open Government
Time zone advantage
Favorable tax system
Competitive business costs
World class infrastructure & communications

Economical Environment
Meaning :It refers to economic conditions, systems,
policies of respective country.
Economic factors that commonly affect businesses
include consumer confidence, employment, interest
rates and inflation.
In case of Australia, it is one of the largest capitalist
economies in the world. It is dominated by service
sector. Economic growth is dependent on mining and
agriculture sectors.
How does economic factors ( of home country
i.e. India) determines business conditions)
Economic condition
Economic system
Government Policies
Industrial policies
Import export policies
Demographic factors:-
I. Population
II. Income level
III. Age
IV. Demand etc.
Why to do business in Australia? (host country)
Ease of doing business index: 10th rank
Continuous economic growth
Low unemployment
Contained inflation
Very low public debt
Strong and stable financial system
Open market with minimal restrictions
SOCIO CULTURAL ENVIRONMENT
MEANING:
A set of beliefs, customs, practices and behavior that
exists within a population.
International companies often include an examination of
the socio-cultural environment prior to entering their
target market.
Social environment has a great influence on the
international business environment.
Culture is a sum total of mans knowledge, beliefs, art,
morals, laws, customs and any other capabilities and
habits acquired by man as a member of society.

Social environment
Collection of diverse people: Australia is a collectivity of
diverse peoples living in a relatively young society.
No official Religion: Anglicon 26.1%, Roman Catholic
26%, Other Christian 24.3%, Non-Christian 11%, Other
12.6%
Increase in level of Education: Today, Australians are
more highly educated than ever before.
British Australian Tradition: There has been a focus on
assimilating different cultural groups into the dominant
British Australian traditions.
Cultural Environment
Factors that have shaped the national culture include the early small
female population relative to that of men, which is said to have laid
the foundations for a widespread ideology of mateship.
The involvement of Australian and New Zealand troops in World
War I has been characterized as the symbolic birth of the nation.
Australia is a Multi-Cultural Society.
English is the primary language used in Australia.
Within the framework of Australias laws, all Australians have the
right to express their culture and beliefs and to participate freely in
Australias national life.

Technological Environment

Technological factors include technological aspects such
as R&D activity, automation, technology incentives and the rate of
technological change. They can determine barriers to entry, minimum efficient
production level and influence outsourcing decisions. Furthermore,
technological shifts can affect costs, quality, and lead to innovation.

Research funding :- Gross Expenditure on R&D was $30 billion in 2010-
2011.There are a number of government grants and funding programs available
to assist Australian businesses develop and commercialize their IP, such as;
Export Market Development Grant
Innovation Investment Fund (IIF)
R&D Tax Incentive, etc
New Discoveries and Inventions
Here are some of the highlights of Australias Greatest
Technological Achievements.

Refrigerator
Electric Drill
Black box Flight Recorder
Bionic Ear
Xerox Photocopying
Wifi
Lawn Movers
Anti Hacking Software Kernel, etc
Energy Sources & Internet

Energy in Australia includes energy and electricity production, consumption and
export in Australia. Australia is a net energy exporter, and was the fourth-highest
coal producer in the world in 2009. Fuels in Australia include fossil fuels such as
coal, oil, natural gas, oil shale and also renewable sources such as wind power and
solar power.
Permanent Internet access was first available in Australia to universities via AAR
Net in 1989. The first commercial dial-up ISPs (Internet Service Providers)
appeared in capital cities soon after and by the mid-1990s almost the entire country
had a wide choice of dial-up Internet access providers. In present times Internet
access is available through a range of technologies, chiefly hybrid fiber coaxial
cable, DSL (digital subscriber line), ISDN and satellite Internet.
Internet statistics
In March 2007, there were approximately 4.33 million broadband subscribers in
Australia and 2.09 million narrowband subscribers. Between December 2007 and
June 2008 there was an increase in the number of wireless internet subscribers from
433,000 to 809,000.
Transport
There are many differing forms of transport operating in Australia
for carriage of passengers and goods. There is a general reliance on
road transport and the country is networked with about 900,000 km
of roads. Private road haulage contractors compete to some extent
with railway freight systems within and between states, particularly
for agricultural products and minerals transport to ports. The rail
network consists of over 40,000 km of track in total. Public
transport is not as well developed in Australia as many other first
world nations, for example none of the capital cities boast fully
fledged metro rail systems and while the capital cities are connected
to each other by rail services, they are not high speed services.
Passengers and freight are also transported extensively by air
between the 450 or so airports and airstrips around the country,
particularly for business travel.
Legal Environment
Understanding Australian regulatory obligations is essential
for any business. These regulations are designed to ensure fair
competition, sufficient protection for the relevant parties, and
integrity in the market.
Australias business law is flexible and makes the procedure of
opening up a business simple and easy to achieve for one and
all.
STEPS BEFORE SETTING UP OF
BUSSINESS

Registering as a foreign company

Obtaining business premises in Australia

Source of Finance

Exchange control







Australian Business Taxes
CORPORATE TAX

Goods and Services Tax (GST)

Capital Gains Tax

Other business taxes
Import and Export Regulations
Australia is a member of the world trade organization and has
undertaken not to raise tariff above level agreed in trade
discussions.
Businesses considering importing should be aware of
government regulations, duty taxes, permits that apply to
imported goods. Imports that do not meet these requirements
can be seized by the Australian Customs and Border Protection
Service.
Exports are rarely subject to any form of tax in Australia.

Intellectual Property Rights
Patent protection
Trade mark protection
Copyright protection
Government Incentives and Grants:-
The Australian government offers a wide range of grant schemes
and incentives to promote and develop foreign investment in
Australia.
The Australian Trade Commission (Austrade) is a dedicated
government agency that seeks to promote and support productive
foreign investment into Australia. The incentives offered take a wide
variety of forms including taxable grants, tax relief or the provision
of infrastructure services at discounted rates.
Laws relating to competition and unfair trade practices
Ecological Environment
Ecological environment refers to all living and non-living thing around us
within which we live and work. People have a two way relationship with
the ecological environment. An individual lives and work is affected by the
ecological environment he or she lives in. At the same time ecological
environment gets affected by the people in it.
Managers must take into account the ecological factors in their decision-
making. By ecology one can understand the relationship of people and
other living things with their environment, such as soil, water, and air.
Land, water, and air pollution is of great concern to all people. Land may
be polluted by industrial waste such as packaging. Water pollution may be
caused, e.g., by hazardous waste and sewage. Air pollution can be caused
by a variety of sources, such as acid rain, vehicle exhaust fumes, and
carcinogens from manufacturing processes.
Water: It's hardly surprising that on the world's driest
inhabited continent, experts are concerned about how
Australia looks after its water.
Climate change: It may be a global issue, but when
scientists across the world are asked what the effects of
climatic change will look like, they quickly point to
Australia.
Energy: Australians are replacing fossil fuels by
renewable powers like solar, wind, marine, etc.

thank you