ukti - introduction to the australian gas market
Post on 20-Oct-2014
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A webinar which introduces the Australian gas market to British companies, passing on hints and tips about achieving business success in Australia.TRANSCRIPT
29 January 2014
Introduction to Australian Gas Market
Linda Miles, Trade Development Manager, UKTI Perth
Colleen Handy, Tax Manager, UHY Haines Norton
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Australia – A Comparison in Geography
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Why should you do business in Australia?
Strong and stable economy
AAA credit rating
Good current and future growth prospects
Anglo-Australian bonds
Common language and customs
High regard in Australia for UK products as “High Quality – Low Cost”
Similar business, legal and regulatory framework
Strong Australian Dollar making UK goods and services more affordable
Strong IP protection
Strong presence of British businesses in Australia already
5
Why should you do business in Australia?
Gateway to Asia
Easy access to a region with the greatest potential growth in the world
Educated, multilingual, and skilled workforce
Quality of life
Five Australasian cities listed in the world’s Top Ten most liveable cities (The Economist)
Strong, stable economy
22 years without a recession
GDP per capita in world’s top ten
Average growth rate of 2.5%
Similar to UK
More British people in Australia than any other foreign country
Similar business culture, tax, legal regulations
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OPERATOR
UK
BHP Billiton*
BP*
Shell*
Europe
GDF Suez* (France)
Maersk Oil* (Denmark)
Total* (France)
Australia
Arrow Energy
Origin
Santos
Woodside
America
Apache#
Chevron*
ConocoPhillips*
ExxonMobil*
Hess*
Asia
Inpex* (Japan)
PetroChina* (China)
Sinopec* (China)
*Companies with a UK office
#Company with presence in UK North Sea
Established market in Australia
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Northern Territory Projects
Bonaparte LNG
Caldita Barossa
Cash Maple
Evans Shoal
Heron
Ichthys
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Queensland Projects
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Queensland Projects
CSG to LNG
Unconventional
Gas
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Western Australia Projects
Browse
Crown
Crux
Equus
Gorgon
Laverda
Macedon
Olympus
Pluto
Poseidon
Prelude
Scarborough
Wheatstone
Zola
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Victoria
Bass Strait
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Project Opportunities
State Company Project Status
NT ConocoPhillips Caldita Barossa Feasibility
NT Eni Heron Feasibility
NT GDF Suez Bonaparte LNG Pre-feed
NT Inpex Ichthys Construction
NT PTTEP Cash Maple Feasibility
NT Shell Evans Shoal Feasibility
NT Woodside Sunrise Feasibility
NT ConocoPhillips Darwin LNG Operation
State Company Project Status
VIC ExxonMobil Bass Strait Operation
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State Company Project Status
WA Apache Olympus Feasibility
WA Apache Zola Feasibility
WA BHP Billiton Macedon Operation
WA Chevron Gorgon Construction
WA Chevron Wheatstone Construction
WA ConocoPhillips Poseidon Feasibility
WA ExxonMobil Scarborough Feasibility
WA Hess Equus Feed
WA Santos Crown Feasibility
WA Shell Crux Feasibility
WA Shell Prelude Construction
WA Woodside Browse Feasibility
WA Woodside Laverda Feasibility
WA Woodside Pluto Operation
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Process of Tender Approval
Operator
Tier 2
Tier 3
Tier 4
Tier 5 Up to $50mn
$50mn to $300mn
$300mn to $1bn
More than $1bn
Even if you are supplying into a Tier 5 provider, it is
probable that you will require “Approved Supplier Status”
from Tiers 4, 3, and 2, as well as the Operator. This is unless
you are only supplying component parts.
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*While an existing relationship or past experience with a company may assist in proving your
track record etc, do not expect it to enable side-stepping or skipping parts of the above process.
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Detailed engineering and procurement
Colleen Handy
January 2014
Establishing your business in
Australia – practical issues
In partnership with:
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Setting up business – Practical issues
• Expanding your business to Australia is a big step!
• Planning your expansion is key !
• Speak to others who have made the move, local representatives,
accountants, lawyers, Business Development Networks etc
• Don’t assume the laws and regulations will be the same as the UK
• Implementing a tax efficient structure is key to ensuring the commercial
success of your expansion to Australia
In partnership with:
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Registering as a foreign Company
• A foreign company or similar entity is able to carry on a business on its own
account (branch or subsidiary) provided it has registered in Australia.
Appointing and authorising at least one local agent or director to act on its
behalf
Maintaining a registered office in Australia
Lodging specific company documents and financial statements with ASIC
Identifying the business as a foreign company in written contracts and
correspondence
In partnership with:
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Setting up business – Branch vs Subsidiary
• Tax payable by a PE/branch or a subsidiary is the same
• Currently rate of tax is 30% on net profits
• Business assets owned by a non-resident and part of a PE/Branch operations in
Australia remain within scope of Capital Gains Tax (CGT)
• In contrast, the disposal of shares in a subsidiary company by a non-resident will
be outside the scope of CGT, unless that subsidiary’s value is more than 50%
attributable to real property
• Advantages of subsidiary company: limited liability, lower level of disclosure
compared to a branch, generally quicker to set up
In partnership with:
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Setting up business – Subsidiary
• It can take 1-2 days to register a subsidiary in Australia
• Registering involves lodging an application with ASIC (equivalent of the UK’s
Companies House)
• Once registered the company is provided with an ACN (Australian Company
Number) which must be shown on letterheads and other business documents
• The company is also required to register with the Australian Taxation Office
(ATO) for its ABN (Australian Business Number), GST (similar to VAT), PAYG
(similar to PAYE)
In partnership with:
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Setting up business – Branch
• It can take a long time to register a branch in Australia
• Registering involves lodging an application with ASIC (equivalent of the UK’s
Companies House) and original or certified copies of various documents are
required
• The branch is also required to register with the Australian Taxation Office (ATO)
for its ABN (Australian Business Number), GST (similar to VAT), PAYG (similar
to PAYE)
In partnership with:
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Setting up business – ATO requirements
• Subsidiaries and branches prepare accounts and file tax returns reporting
income and deductions to 30 June each year
• With ATO approval a different accounting period ending on another date
may be adopted
• Deductions are similar to those permitted in the UK and include R&D
incentives
• Transfer pricing policies may be needed – even for SMEs
In partnership with:
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Setting up business – Employer requirements
• As an employer you must:
Meet minimum wage regulations, EBAs, Union requirements, visa requirements
Pay superannuation on Ordinary Times Earnings
Pay a State Payroll Tax (the rate differs depending on the State the employees
are based in)
Have adequate workers compensation insurance (compulsory)
Research the working hours, holiday pay, long leave and other employment law
requirements
Comply with Health and Safety Requirements
In partnership with:
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Setting up business – Tax rates
• Rates of tax in Australia for residents to 30 June 2014:
In partnership with:
Threshold Tax rate %
$0- $18,200 0
$18,201 - $37,000 19
$37,001 - $80,000 32.5
$80,001 - $180,000 37
$180,001 + 45
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Setting up business – Superannuation
• Superannuation is a specially designed long term investment for retirement
savings
• Employers are obliged to pay a minimum superannuation amount for each
employee into a recognised superannuation fund
• Currently this is 9.25%, set to rise to 12% by 30 June 2020, of ordinary
times earnings
In partnership with:
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What can UKTI Australia do for you?
Introduction services:
Orchestration of meetings with prospective business partners, distributors, suppliers, and
Australian Government bodies
Local knowledge:
Tailored, experienced, and impartial advice about how to maximise your chances of
success in Australia
Market reports:
Provision of up-to-date information about the industry and market, relevant to your
business case
Market testing:
Opportunities to reduce the cost, risk, and time of establishing your business in Australia,
by working in one of our business centres
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What can UKTI Australia do for you?
Online enlightenment:
Provision of industry-specific web-seminars (“webinars”), accessible from your own
homes and businesses in the UK
Product launch:
Access to one of our boardrooms, for use in marketing your business (available in most
Australian state capitals)
Promotion:
PR services through local media, UKTI e-newsletters, e-marketing, and social media
campaigns
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What’s next?
Feel free to ask questions after this
presentation
Follow the conversation on LinkedIn
Follow the UKTI twitter account:
@uktiaustralia
Keep yourself updated on the latest
Australian business opportunities
Attend UKTI’s industry-specific webinars
Visit our website: gov.uk/world/australia
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Questions?
Linda Miles
Trade Development Manager
Email: [email protected]
Chris Egan
Trade Development Officer
Email: [email protected]
Colleen Handy
Tax Manager, UHY Haines Norton
Email: [email protected]
Information and images courtesy of: Arkay Career Services, Western Australian Department of State Development, Queensland
Government, Invest Queensland, The Economist Intelligence Unit’s Liveability Ranking and Overview, 2013 Francis Norman, Xodus
Group, PESA News, PESA News Resources Online, The Sydney Morning Herald, UK Trade & Investment, Vividus
