Start of Week: monday;
currency code: AUD;
languages official:English; Juridiction: Australia
Australia is one of the countries that perfectly demonstrates that immigration promotion and economic openness are vital to make the country grow and have an innovative business environment. The Commonwealth of Australia is the biggest island and the sixth biggest country in the world. Since the 20th Century, this island has been one of the most cutting-edge countries on the planet in its economy and technology.
This country knows that it needs capacitated personnel to boost its economy and improve its nationals’ quality of life. With this in mind, these are some of the advantages of Australia’s economy:
-Australia’s geographical position and its distance from other major economies of the world have allowed it to generate important commercial ties with countries throughout the region, broadening the spectrum of investment opportunities.
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Australia is one of the countries with the greatest openness and opportunities for foreign migrants. This long-standing policy has allowed this country to position itself as one of the great economies of the world, thanks to the migration of foreign talent that have considerably enhanced the different economic and business ecosystem of the country.
Being an entrepreneur, it is necessary to have all the necessary knowledge about the destination where our capital and investments will be made. The freedom to do business, the potential of these businesses, and also, but not least, the institutions where those resources will go, i.e. banking services.
The Australian banking system is internationally recognized as one of the most stable in the world. It has a large presence within the country’s financial system, acting within the operations of shares, stock exchange, insurance, and different investment funds. And if we are talking about a country with an accelerated and constant growth rate, its banking system could not be the exception.
Advantages of Banking in Australia
There are several benefits both for migrants and investors who are looking to Australia as a potential destination. This country promotes the employment of talented foreigners and is open to foreign investment, so its banking system also complies with this policy. Advantages of this system that are worth mentioning:
- A reliable and transparent environment.
- There is an ongoing deregulation and privatization process. This tells us that the State approves and respects the labor carried out by private institutions.
- Several banks will allow you to open a bank account as a non-resident.
- Most banks will also allow you to apply to open a bank account through their website, if you’re not in the country.
- Great stability and international recognition.
- Through Australian banks, you will be able to enjoy access to many financial services.
- Several Fintech Solutions are in Australia as an alternative to classic banking.
- Lower fees at doing domestic operations.
- Ample access to a large number of branches of the different banking institutions in Australia.
- Your money is protected and several programs and services will allow you to save and make your capital grow.
- Are non-Residents Allowed to Open a Bank Account in Australia?
As we already mentioned, Australia is happy to open its doors to qualified workers who are of benefit to the country’s economy, the development of different fields of work, and in general, the business environment.
In a previous article, we’ve talked to you about the visa programs you can apply to in Australia (click here). This openness extends to the chance of having your Australian bank account. If you are in the process of moving to Australia because you got a job opportunity, getting a place to put your income is vital. You will be able to open a bank account before you arrive in the country so that you can make deposits and do some paperwork that will allow you to have funds at the time of your arrival while allowing your employer to send you your first payment once you start working.
You need to know that these advantages are only set for those who are going to stay in the country once they arrived. If your plans are different, the process to open your bank account could be a little harder.
In any case, our team of experts will be by your side when the time for your trip to Australia comes. Every bank has its requirements to open a bank account, but in general, the documents that you need to go through the process are these:
- A confirmation of your arrival date to Australia
- The city where you’ll be living, alongside the address
- Australian visa
- Passport number
Type of Bank Accounts you Can Open in Australia
In the Australian banking system, you will be able to open 2 main types of bank accounts, depending on the use you are going to give to your account. These types are:
a) Transaction Account:
With this type, you will be able to make every daily operation you could need (paying goods, receive the deposit of your work income, etc). It’s the most common and it’s the way into the Australian banking system.
b) High-Interest Savings Account:
This type of account has several advantages for investors and regular workers. It can help you to generate passive incomes and a lot of profits. The regulations for this account set a couple of conditions that must be fulfilled before earning the high rate. Australian banks have great deals for those who make a monthly deposit into their account. That is a great option if you are moving to Australia. The more you have into this account, the more interest you earn.
The best news is that you can have as many accounts as you want, and use each one for specific expenses.
It’s worth mentioning that Australia also counts with the presence of several Fintech Solutions, who work as regular banks, but with a lot less stressful and demanding applying process. Services like Wise (TransferWise) offer their services of money transferring, at the same time that let you operate them and use them in several countries and continents.
How is the Process to Open a Bank Account in Australia from Overseas?
We have already said to you that you can open a bank account in this great country even before you get to it, as well as provide the documentation required for such a process. Now, we’d like to tell you about the process itself and are the steps to go through it:
1) Make your online application
Most of the Australian banks, especially the so-called “Big Four” allows you to apply to open a bank account using their websites. Within this first step, you will have to complete the application form and supply the institution with your passport details.
Be advised that if any document you supply is in a foreign language, you will have to get it translated by a professional translator recognized and accredited by the National Accreditation Authority for Translators and Interpreters (NAATI).
2) Receive an answer from the institution
The banking institution to which you apply will process and subsequently respond to your application. If the answer is affirmative, you will be notified and given your bank account details (number, passwords, etc.), and you will immediately be able to start depositing money into your account.
This is a huge advantage as it will allow you to start accumulating savings before you are in Australia so that once you enter the country, your life will be considerably simpler in financial terms.
3) Go to the bank once you have arrived in Australia
After you get the approval and complete your move to Australia, the first thing you’ll need to do is go to the bank and show them your passport, so you will be able to access your money. Once this confirmation is complete, you’ll receive a debit card linked to your account with which you will be able to make different types of operations, purchases, payments, etc.
Opening a bank account in Australia is generally a pretty easy process. Whether you are an investor, migrant, worker, student, or even a tourist, there is a solution for you to get an account in some of the most popular a recognized banking institutions in the country.
The sixth biggest country in the world and one of the freest economies on the planet has built an important economic and business infrastructure, determined to provide opportunities for foreign workers and investors with the necessary qualities to generate profits and development for the country. Its visa programs, easy access to the banking system, and a large number of operations and businesses that can be accessed through this make Australia an enormously attractive destination and certainly worth studying when deciding where to carry out your next investment.
In our previous articles, such as “About Australia”, and “How to Immigrate to Australia”, we indicated the great environment and the enormous opportunities that as an investor or as a worker you can find in the sixth largest country in the world. Although it’s great geographical distance from the West might scare some, let us tell you that this great country can be the path to your and your family’s success.
Australia has several visas for both investors and qualified personnel wishing to relocate to this country to work. We have previously applauded the commitment and constant pursuit of merit that Australia has set as a flag, so we assure you that you will move to an environment that promotes development and advancement.
The Permanent Residency or the PR Visa
This is one of the programs offered by the Australian government to those who wish to relocate their life to Australia. This visa will be renewable and will have a duration of 5 years from its issuance. Once you receive it, you will be able to move to Australia to live with your family.
With the Permanent Residency permit, according to the Australian government, you will be entitled to:
- Remain in Australia indefinitely
- Work and study in Australia
- Enter the Australian National Health scheme
- Apply for bank loans to buy property
- Sponsor eligible relatives for permanent residence
- Work in New Zealand
This program, along with the different types of visas it includes, is the first step in your immigration process to enter Australia. You should apply for it if your stay is indefinite, and even more so if you are going to the country to work or study. It is primarily aimed at skilled labor personnel who can bring benefits to the Australian economy, and we will ensure that you are aware of each type of visa and the requirements of each.
You will be able to choose the visa you wish to apply for according to your interests and the reason for your move to Australia. The three main reasons for application are:
- Family-stream permanent residence visas
- Work-stream permanent residence visas
- Business or investment-stream permanent residence visas
We recommend you to contact us to obtain from our team of experts, all the advice you may need when deciding which visa is the best for you, and which one will give you the best benefits. There are many sectors of the Australian economy looking for qualified personnel and you could be one of the beneficiaries.
Thinking about what we just said, we’d like to talk to you about the visas you can apply for if you are considering moving to Australia.
-Work-Stream Permanent Residence Visas
a. Temporary Skill Shortage Visa (Subclass 482)
This visa program was born in 2018 and is aimed at allowing Australian employers to “sponsor” a foreign national to work as their employees in Australia. The key to this and many of the other existing work visa programs in Australia is that the employer is not able to find an Australian employee with sufficient skill for the work to be performed. This type has two subtypes, which are: Short-Term and Mid-Term Visas; and the Labour Agreement Stream.
b. Skilled Independent Visa (Subclass 189):
This visa allows invited workers with skills required by the Australian government, to live and work permanently anywhere in Australia. This type of visa is probably the more desirable given its flexibility and good chances of approval
c. Skilled Nominated Visa (Subclass 190):
This visa lets nominated skilled workers live and work in Australia as permanent residents. An important issue about this type of visa is that you only can apply if you have been nominated by a State or territory government.
d. Skill Work Regional Visa (Subclass 491):
This is a provisional visa. It is for skilled workers who want to live and work in regional Australia. This visa has a duration of up to 5 years. Just like in other types of visas we have talked about, you’ll have to be under 45 years old and having an occupation on the Occupation Lists. You’ll have to be either sponsored by an eligible relative or by the State or territory government agency.
To apply to any of these visas, in general terms, you’ll need to:
- Be under 45 years old
- Get at least 65 points on the immigration test
- Have an occupation on the Short, Medium, or Long-term Skills Lists
- Receive an invitation to apply
- Have a good command of the English language, with documents to prove it.
-The Golden Visas
But if instead of going to work or study, you are an investor looking for your next project, Australia is also positioned as a more than favorable destination for you. Its excellent economy, international recognition, business quality, and commercial allies make the largest island in the world an important “one to watch”.
If you are interested in entering the Australian business world, these are the visas you can apply for, and what each one requires:
-Business Innovation Visa 188A:
This visa is thought for business owners who have an overall successful business career and are seeking to establish business operations in Australia.
To apply for this visa, according to Australian law, you’ll need to:
- Be under 50 years old
- Have combined net business and personal assets of at least AU$1.250.000
- Provide proof of your business success
- Score at least 65 points on the Business Innovation and Investment Points Test
The Investor Stream 188B:
This is a 4-year temporary visa. Once the applicant has maintained an investment in Australia for that long, they may apply for permanent residence. The requirements for this type of visa are these:
- To be nominated by a State or Territory government to invest at least AU$2.5 million if you were nominated after 1 July 2021.
- Score at least 65 points on the mentioned test
- To have at least 3 years of experience managing a qualifying business.
- To have a net business, investment, and personal assets of at least AU$2.5 million
-Significant Investor Visa 188C:
This provisional visa is for people who invest at least AUD5 million in Australian investments that meet certain requirements and maintain investment activity in Australia. To apply for this visa, you must:
- Be invited to apply
- Be nominated by the State or Territory to invest at least AU$5 million, and have the intention to hold that investment for the whole visa’s life
- Have the intention to live in the State or Territory whose government nominates you
Premium Investor Visa 188D:
This provisional visa is for people who are nominated by Austrade and who invest at least AUD15 million in Australian investments and/or philanthropic contributions. To apply, you must:
- Be nominated by Austrade
- Be invited to apply
- Invest at least AU$15 million in Australian investments and/or philanthropic contributions that meet certain requirements
- Have a genuine intention to hold the investment for the whole period of the visa (except any part of the investment that is a philanthropic contribution)
Family-Stream Permanent Visas
This stream was thought for the spouse/partner, children, or parents of an Australian Citizen or permanent resident. With this option, you will be able to migrate to Australia if a close member of your family meets the above requirement.
Although the Australian administration gives preference to spouses, dependent children, or parents, it also provides the chance to other family members dependents of the permanent resident to move to Australia. With no doubt, Australia has its doors open.
To apply for Australian citizenship, you must first have obtained a permanent resident visa and have met each of the requirements of your visa. You must also meet the following criteria to be eligible for citizenship:
- Have passed a Citizenship test (only for those under 60 years old)
- Be a permanent resident at the time of the application and at the time of the decision
- Satisfy the resident requirements
- Be likely to reside in Australia
- Be of good character
Once you have met these requirements, and your citizenship has been approved, you will enjoy these rights:
- Live in Australia
- To apply for an Australian passport (The world’s 8th most powerful according to Henley & Partners.
- Register as an Australian citizen by descent any of your children born overseas after you become a citizen
- Vote in the elections and much more!
Getting your Australian permanent residency is the first step to a new life and the first link on the road to Australian citizenship. Being part of this country is certainly conducive to a good and successful life, so contact us today to start your immigration process!
An Expat’s Life
Australia is one of the preferred countries for ambitious workers and entrepreneurs looking to turn their lives around and get to the next level. This country, known among other things for being the largest island in the world, is one of the most migrant-friendly.
Australia has long supported foreign nationals in times of crisis and needs, benefiting also from the talents and skills they may have to grow and develop the Australian economy and other sectors, on which many of its visa and residency programs for foreigners are based.
Australia combines a long list of opportunities for those who wish to move to its territory, with an enviable natural beauty that will undoubtedly make those who arrive in the country feel that they are in a different land. Modernity is also not lacking in Australia, which every day strives to keep moving forward and be at the forefront in all sectors.
In addition to its opportunities, it is necessary to talk about its people, and the enormous cultural mix that exists in Australia, thanks, among other things, to its policies of openness towards migrants, makes a large number of different cultures and lifestyles coexist in this country, which in no way antagonize each other, but on the contrary, coexist day by day to advance and grow.
You will find a very friendly place
Australia is one of the friendliest countries in the world, and that makes it easy for those who have come from far away to start a new life (with all the fears and apprehensions that may entail) to adjust in the best possible way. The ex-pat community in Australia enjoys a high quality of life and considerably lower stress levels than in many other countries around the world.
Australia’s high quality of life is supported by being ranked 6th in the Human Development Index for 2021, which among other things measures life expectancy, personal income level, and education. Undoubtedly, Australia has made and continues to raise its standards day by day.
And as we mentioned before, the great cultural diversity in Australia and its controlled migration programs make that day by day a great number of cultures and ways of life unite and coexist with each other, in an environment without great indexes of xenophobia or discrimination. This and much more is why Australia has achieved so much in recent years.
Likewise, this friendly attitude is not just confined to its people but carries over into the realm of business and investment. Australia is one of the freest economies in the world (3rd in the Heritage Foundation’s Index of Economic Freedom), where the State not only respects private property and allows the business sector to operate freely, but is constantly searching for mechanisms and methods to optimize the niche to generate more and more profits.
This great country does not stagnate and it doesn’t get too comfortable. It will always seek to evolve towards a better tomorrow.
Cost of Living
Although living in Australia can be a bit expensive, there are excellent opportunities for those who decide or are invited to live in Australia, either to invest in the creation of new businesses or to join the country’s workforce.
According to portals such as Numbeo and Wise, the cost of living for a person in Australia (without taking into account rental charges), is between A$ 1,300 and A$ 1,400 per month (US$ 963 – US$ 1,038). According to these platforms, the minimum wage in Australia (higher than in the United States and the United Kingdom) is A$ 19.84 per hour, which is already a significant monthly income.
In addition to this, Australia is constantly looking for qualified personnel who can provide benefits, development, and growth to its different economic sectors, an activity that in no way can be underpaid, so, under these terms, life in this country can be more than affordable.
As far as rental prices are concerned, in the main cities, a one-bedroom apartment in the center of town can cost up to A$ 1,789 per month, which is still somewhat affordable with the right work and lifestyle.
The Australian tax system, although it does not offer major exemptions to companies, is still attractive to foreign investors, as they see this as a small price to pay for the high level of economic freedom and the State’s respect for private enterprise.
Companies must pay a flat rate of 30% on their income, and although there are no exemptions, there are “rebates” on the rate for small businesses. As for what for Europe would be VAT, Australia has a rate of 10%, and it is applied not only for final products but also on the sale of raw materials.
As for personal taxation, as we have mentioned in previous articles such as Companies & Structures and the Privatus Maximus’ Freedom Rating for Australia, the country’s tax system, unlike those countries that have a flat rate for all profits, is progressive; meaning that tax rates increase as income increases.
In our previous articles, we pointed out that the Australian tax system stipulates that you will be subject to different tax rates depending on whether you are an Australian resident or a foreign resident as far as the Australian tax administration is concerned.
If you earn income up to A$18,200 in a tax year, you will not be subject to tax, so tax rates will start to apply for income above this.
However, you may still be eligible for certain tax deductions from work expenses you have incurred during a tax year. This is an important tool to reduce your tax burden, and our team can assist you in this regard. Among the expenses that you can mark as work expenses for tax deduction purposes, we can count:
- Travel Expenses
- Cost of Uniforms
- Personal laptop, phone, Tablet or desktop if you use them for work
Rhythm of life
Australia has remained a destination full of attractions and promises for those who choose not only to visit but plan to make a life here. The world’s largest island offers a lifestyle that attracts millions of enthusiasts every year. The combination of great weather, scenery, and opportunities is more than complete and for all tastes.
Australia is known for its hospitality and friendliness. If you start a new life in this country, rest assured that it will take little time for you to be accepted as a part of the community. This country believes in “respect to be respected”, which extends to all contexts.
During the week, the pace is quite high. Everyone devotes their time and effort to the accomplishment of their daily duties and tasks. Australia has a good work schedule that is often accompanied by a visit to bars and restaurants to relieve the burdens and daily stress among the same co-workers.
On weekends, there are plenty of options for recreation and relaxation. Since many of Australia’s major cities are located on the coastline, trips to the beach with family or friends are more than common and a great way to free the mind. If you are an ex-pat, once you have settled into your new home, you can begin to interact with your neighbors and community through sports, BBQs, talks, etc.
As for the climate, it varies depending on the region where you are located. Undoubtedly, and according to many travel portals, the best climates are found in the southern coastal area, so you could consider them over the more antagonistic climates of the center and north of the country.
Starting your life in a new country is always a critical step in anyone’s life, but if the destination country offers all the conditions and opportunities to make this transition as pleasant and easy as possible, that country is worth it.
During this series of articles, we have shown you the advantages, opportunities, conditions, and why you should consider Australia not only as an investment destination but as your permanent place of residence. This country is committed to advancement and development, so if you share this vision, you should contact us today to find out what places and options are best for you in Australia.
Obtaining a residency and later citizenship are options that are on the table, and our team will be there to support you in all stages of the different processes that you can initiate in Australia. We are waiting for you!
Being an entrepreneur, investor, or even a family man, the protection of assets, property, and even money, is one of the main concerns. In addition to this, when you own some capital, it is more than understandable that you want to have those resources generating profits, instead of being stored and exposed to taxes, lawsuits, bankruptcy, etc.
We have already talked about the excellent conditions and opportunities that Australia offers for investment. Thanks to its great economic openness, different types of companies and businesses you can start, and its broad tax policy, establishing your capital in the sixth largest country in the world is a great idea.
In this article, we will introduce you to 2 investment mechanisms that are quite common in Australia, but at the same time can make a difference in protecting your assets and help you save not only hundreds but perhaps thousands of dollars in taxes. We are talking about Trusts & Funds.
We will analyze each mechanism with its advantages, types, and opportunities to provide you with the best information and avoid any confusion. As always, our experts will be at your service if you wish to invest in any of these mechanisms available in Australia.
Trusts in Australia
According to the Australian Taxes Office (ATO), the trusts are recognized as a legal relationship between privates where an asset (cash, stocks, shares, etc) is held by a trustee for the benefit of the asset’s owner. This relationship is not a legal entity but still is subject to taxation for tax administration.
There are two main actors in the relationship established by the Trust: The trustee, and the beneficiary.
- Trustee: Is the legal person or company responsible for the assets within the trust and that has to make sure that the relationship is being managed according to the deed.
- Beneficiary: It’s the person, persons, or entities that benefit from the trust. In other words, they are those who receive the assets contained within the trust.
- Some benefits come with trusts, and we are going to tell you which are they:
- It protects your personal and business assets.
- They are considered a wealthy-creation vehicle.
- Trusts help you minimize your tax obligations.
- Trusts have low compliance costs
- Flexibility over capital and income distribution
- Protect money and other resources at the same time they are producing profits.
Trusts are very important instruments for the protection of assets, which can be used not only by investors and businessmen but also by families seeking to maintain a secure future. We have already talked about Australia’s openness to foreigners, so if you are starting a new life here, this information is of interest to you.
There are different types of trusts in this country, which are:
a) Discretionary Trusts:
This is the most common form of trust used in Australia. According to its description, the trustee has full discretion as to how the incomes are distributed to the beneficiaries. It’s mostly used by families.
The main reason to use this type of trust is for asset protection and tax planning. Despite the trustee can decide not to distribute the income to certain members of the family, but it comes with certain tax increases.
b) Fixed Trusts:
Unlike the discretionary trust, with this type, the trustee doesn’t have discretionary power over the income distribution. At the beginning of this trust, fixed rates are established for each beneficiary, so that each beneficiary has a specific percentage of the trust’s income.
To clarify the idea, in fixed trusts, the beneficiaries’ interests are set according to their “holding units”, just like shares are issued to shareholders of a company.
c) Hybrid Trusts:
As its name suggests, this type of trust has characteristics of both fixed and discretionary trusts. It combines the benefits from both types of trusts with fixed-income rates and the trustee’s discretion.
This type counts with unitholders and discretionary beneficiaries. The trustee has the power to distribute the incomes among beneficiaries, but also they are distributed according to the number of units that each one of the beneficiaries holds. This type has great income and capital gain tax advantages.
d) Testamentary Trusts:
As its name suggests, it only starts to act after the testator has passed away. In a few words, the testator’s assets don’t go directly to its beneficiaries, but to trust on behalf of themselves.
In general, the terms of this trust are set by the testator’s will, and it’s generally aimed to secure the beneficiaries’ well-being.
e) Special Disability Trusts:
This type is set to provide help and assistance to immediate relatives in order of taking care of a family member who has a disability. Before the trust can be set up, the beneficiary must be assessed as severely disabled, according to law.
The assets of this trust can be used to pay for several expenses, including medical and accommodation needs.
Funds in Australia
Once we have talked about the types of trusts and their benefits, it is time to cover the figure of the funds that you can access in Australia. There are several types of funds you can invest in this country.
After you invest in a managed fund, its manager will buy and sell assets like shares or bonds looking for profits for you. When you invest in funds in Australia, you own units of the fund, which value will vary according to the assets.
In Australia, there are several types of managed funds you can invest in and generate profits, which is why we’d like to tell you some of these advantages:
- Great amounts of money are not required
- There are several global investment opportunities
- You will have a regular income while your money works
- While investing your money with experts, your investment will have a better performance.
We will now tell you which are the main managed funds in which you can invest in Australia:
a) Cash Funds:
These are low-risk and short-time investments. The main destinations for these investments are money market deposits, short-term government bonds, and bank bills.
b) Fixed Interest or Bond Funds:
This type includes low and high-risk investments. The main actor in this type is the corporate bonds, which can generate several incomes and returns within different periods. Australia has a great fixed interest fund chart, due to a profitable and stable environment, which generates confidence among the investors.
c) Mortgage Funds:
Invests in property loans (mortgages). Some funds are high risk. The fund’s risk depends on the quality of the borrowers and the purpose of the loan. You receive income as long as the borrower pays interest. Your investment doesn’t increase in value. It can fall in value if borrowers can’t repay their loans. You should pay attention to that.
d) Property Funds:
As its name says, the investments in this type of funds go to residential property, commercial property, or property developments. Some property funds are high risk. You might not be able to withdraw your money from the fund at short notice, but the profits to gain are very attractive.
e) Share Funds:
With this type of fund, you will be able to invest in listed companies in Australia, overseas, or both. There are a lot of business and a deep chart of investment opportunities for this fund. It offers the potential for higher returns but also has higher risk.
In general, funds and trusts in Australia provide great support to entrepreneurs, investors, businessmen, and families in the preservation and growth of their capital and resources. Being successful in business is not just about generating large returns or income, but also about knowing how to protect and grow them further.
At Privatus Maximus, we want your assets to be protected, so our large team of experts is ready to work side by side with you to determine the best mechanism for you, your business, and your family. Don’t waste any time and contact us.
The Commonwealth of Australia is set as a federal parliamentary constitutional monarchy. Under this form of government, the Head of State is Queen Elizabeth II of England, while the national affairs of the world’s largest island are conducted by the Prime Minister, elected by the coalition with the largest number of seats in Parliament.
This country has an elaborate ministerial system, among which the following should be considered when doing business:
Attorney’s General Department
This is the office responsible for the administration and enforcement of justice in Australia, at the local, regional and national levels. Since 2019, this organism has also ruled industrial relations.
Department of Education, Skills, and Employment
This department was born in 2020, following the merger of the Department of Education and the Department of Employment, Skills, Small and Family Business. It is dedicated to “ensuring Australians can experience the wellbeing and economic benefits that quality education, skills, and employment provide.
In our article “About Australia” we talked about the visas you can access as an investor. The importance of this department lies in the fact that it is in charge of training and providing the qualified personnel you will need in your new business in Australia.
Department of Finance
This department assists the government across a wide range of policy areas to ensure its outcomes are met. Its assistance covers the public resources management, governance, and accountability frameworks. It has 4 areas of focus: Budget and Financial Reporting; Business Enabling Services; Commercial and Government Services; Governance and Resource Management.
Department of Foreign Affairs and Trade
In addition to ensuring the security of the country, and looking after each of its interests, it is also responsible for the generation of ties and links with international organizations, seeking to increase investment opportunities and the welfare of Australians abroad.
Department of Industry, Science, Energy and Resources
This department is responsible for driving economic growth and job creation in Australia. It superseded the Department of Industry, Innovation and Science on February 1st, 2020. Within its responsibilities, the department is in charge of energy and science policy, construction industry, innovation, policy and technologies.
Department of the Treasury
This department is responsible for the economic and fiscal policy, as well as market regulation and the Australian Budget. According to Australian law, this department is divided in four groups: Fiscal, Macroeconomic, Revenue and Markets.
The Treasury also works with state and territory governments on key policy areas, as well as managing federal financial relations.
Real Estate and Investments
Australia boasts one of the largest and freest economies in the world, thanks to a series of policies that highlight the promotion of competition, respect for private property, and very low levels of government corruption, which makes its different economic sectors worthy of monitoring by firms and investors from all over the world.
In addition to this, Australia has a real estate market full of opportunities to generate profits and benefits for whoever wants to, and more importantly, can enter this niche.
Investing in real estate will not generate immediate and explosive profits and wealth, but it will be a stable and steady source of income from rental property transactions, which, with the right property, can be more than desirable and profitable.
Some Highlights of Real Estate Investment in Australia
To know what awaits you as an investor in the real estate business in Australia, you should know some of its advantages:
- Low-interest rates and a lot of government incentives
- Huge growth potential
- The real Estate Sector is a very safe one in the long term
- This sector is a lot less volatile than other markets, like stocks, shares, etc.
- According to Australian law, there are several tax deductions available for long-term investments.
- You will have control over your investment. You’ll decide what happens with it and how to run it.
- High yield investment with rental returns often being sufficient to cover the mortgage costs if using debt financing, especially on commercial property
- Debt lending is available on numerous types of properties.
Investing in real estate in Australia can bring you these and many other benefits if you find the right investment, and for that, among other things, you can count on the support of our experienced team, who will advise you and give you the best options to preserve your wealth, and also, make it grow.
Why Buy a Property in Australia?
As in any market, there are better options than others, but even so, the Australian real estate market offers a wide and varied list of options ready to satisfy the desires of the most ardent investors.
According to different indexes and measurements, the value of properties in Australia is in the midst of a constant boom, which shows no signs of stopping soon, making the investment for later sale, renovation, or simply renting them, more than attractive. This growth would have been up to 20.6% so far this year.
The importance of this figure is magnified given the situation of the last year for the whole world, caused by the Covid-19 pandemic, which in most of the economies generated great contractions and paralyzations. That the real estate sector, as well as other areas of the Australian economy, has recovered and is producing profits and earnings, is a sign of this country’s continued commitment to success and growth, so your investment will be focused in an environment that is conducive to business and with great opportunities to generate profits.
You should keep in mind that the primary spirit of this type of investment is for your wealth to bring you more returns, rather than being stuck in a bank account. Unlike other options, such as mutual funds, real estate investment is much more durable and gives you the possibility of receiving a steady income for a long period of time. Undoubtedly, after a life of work and business, having this type of option is more than rewarding.
Some Expenses You Should Be Aware Of
When buying property in Australia, whether for your personal enjoyment or looking to generate profit and revenue, you need to consider a number of expenses and fees that go beyond just paying for the value of the property. Read on to keep in mind everything you may need. Also, always remember that our team will be ready to help you with whatever you need.
If you’re looking to avoid the high costs of lenders’ mortgage insurance, you probably will need to make a deposit of 20% on the value of the property.
There is a little bit more than just paying for the property. You’ll need to consider the stamp duties, which are different in each state and are calculated in accordance with the property’s value. The legal transfer of ownership is another cost that you need to consider, as well as the registration fees. Some advisors recommend investors consider building and pest inspections. This will make your investment a lot safer and profitable.
-Buyer’s Agent Fees
Lately, a lot of investors and entrepreneurs are paying for agents who help them to get the perfect property at the perfect price, and of course, that comes with a cost. So if you’re considering using one of these agents, you will need to consider them as another cost for your real estate investment.
There are a lot of people who personally dedicate their effort to the conservation and preservation of their property, but if you’re interested in hiring a professional who runs your investment and looks after it, there are specialized personnel who take care of these types of responsibilities. So, if you want to focus your energy on making more investments, businesses, or generating more profits, you can hire these managers.
-Repairs and Maintenance
You may think about these expenses after you buy your property, but smart investors also consider the repairs that the property needs in order to be perfect for its new owner. Taking into account the expenses you must make to keep your property in good condition and able to generate profits will save you a few headaches.
Property Taxes in Australia
In other articles, we have talked to you about how the tax system in Australia works, and how you can access several deductions and exemptions if you organize yourself and your business in the right way, and that is why we’re here.
Regarding properties, there are certain taxes that apply in Australia, according to the use given to the property, and which are not limited to living spaces, but extend to properties of different types of businesses.
In Australia, these taxes are:
This is an annual tax levied on all and every real estate property. An advantage is that in most cases, you may apply for an exemption if the property is your primary place of residence. This tax is paid to the State and the territory government, and its rate depends on the combined unimproved value of your taxable property, according to Australian regulations.
If you buy a property, either if it is for getting income from rent, or as a part of any other type of business, you will have to pay stamp duty to your respective territory or State government. According to Australian regulations, the stamp duty is a tax rate on certain documents and transactions, like property transfers. There are different rates and taxes according to the specific State or territory you’re located in.
As for other taxes, if you receive income and gains from the rental of your property, some of that income may be taxable. However, as good news for you, you may be eligible for certain deductions for expenses associated with the maintenance and care of the property, which would lower your tax burden.
Whether you should buy a property in your own name, a company or a trust all depends on your ultimate goals and objectives. Some structures are better than others to reduce taxes, including capital gains tax, land tax, etc. while others will be better for asset protection. Our team of experts will be able to guide you in what the best structure will be for your personal goals and objectives.
What can we do for you?
Australia is full of opportunities and the real estate business is not out of these promises. We have a number of them to offer.
Thanks to its varied regions, climates, and attractive locations, the different properties you can access on the world’s largest island can provide you with a significant number of income and other types of earnings.
If you are interested in acquiring a property in Australia, either for your personal use or as a way to make your wealth generate steady income and profits, it is time to contact us and discover a number of offers we have for you.