FITA helps you find
service providers for:


flag Australia Australia: Operating a Business

In this page: Setting Up a Company | The Active Population in Figures | Working Conditions | Cost of Labor | Social Partners

 

Setting Up a Company

Sole trader
Number of partners: 1 person
Capital (max/min): No minimum capital.
Shareholders and liability: The liability of the sole trader is unlimited.
Private or Proprietary Company
Number of partners: One or more
Capital (max/min): No minimum capital.
Shareholders and liability: The partners' liability is limited to the amount of capital contributed.
Public Company
Number of partners: One or more
Capital (max/min): No minimum capital.
Shareholders and liability: The partners' liability is limited to the amount of capital contributed.
Partnership
Number of partners: Two or more
Capital (max/min): No minimum capital.
Shareholders and liability: Liability is joint and unlimited for all partners.
Limited Partnership
Number of partners: At least one general partner and one limited partner
Capital (max/min): No minimum capital.
Shareholders and liability: Unlimited for general partner, limited to capital for limited partner
The Competent Organization
Australian Security and Investment Commission (ASIC)
Search a Company or a Financial Report
ASIC, Australian Securities and Investments Commission
 
Setting Up a Company Australia OECD
Procedures (number) 2.0 5.0
Time (days) 2.0 12.0

Source: Doing Business.

 
Business Setup Procedures
Consult Doing Business Website, to know about procedures to start a Business in Australia.
Australian Business Register

Return to top

The Active Population in Figures

201120122013
Labor force 12,050,00012,270,00012,440,000

Source: CIA - The world factbook

 
200920102011
Total activity rate -65.20%65.50%
Men activity rate 72.20%72.50%72.30%
Women activity rate 58.40%58.70%58.80%

Source: UN - United Nations

 
Employed Persons, by Occupation (% of Total Labor Force) 2008
Real Estate, Renting and Business Activities 12.3%
Health and Social Work 10.5%
Manufacturing 10.3%
Construction 9.2%
Education 7.5%
Hotels and Restaurants 6.6%
Transport and Storage 6.5%
Agriculture, Hunting and Forestry 3.2%
Mining and Quarrying 1.2%
Electricity, Gas and Water Supply 0.9%

Source: International Labor Organization (ILO)

 

Return to top

Working Conditions

Legal Weekly Duration
38 hours
Retirement Age
There is no legal retirement age. Retirement is negotiated with the employer.
However, employees are authorized to request a pension as follows:
- Men: from 65
- Women: between 60 and 65 according to date of birth
Working Contracts
There are two main types of work contract:
- the most widespread is the Ongoing contract or permanent contract. It is an individual contract.
- the Fixed Term Employment contract of a similar type but fixed-term.

Note also the collective agreements (certified/Enterprise Agreements) a result of negotiations between employers and employee unions, and the Australian Workplace Agreements (AWA), the fruit of individual negotiations between employer and employees; these will be terminated by the new Labor government (no more AWAs since 28 March 2008).
Labor Laws
Consult Doing Business Website, to obtain a summary of the labor regulations that apply to local entreprises.

Return to top

Cost of Labor

Minimum Wage
AUD 2,553 per month (source: ILO, 2011).
Average Wage
Gross average monthly wage of men: AUD 5,373 (source: ILO, 2011);
Gross average monthly wage of women: AUD 3,473 (source: ILO, 2011).
Social contributions
Social Security Contributions Paid By Employers: The State deducts Payroll Tax, which varies between 3.65% and 6.85% of the company's global payroll (although small companies are generally exempted according to the State/Territory of Australia).
Social Security Contributions Paid By Employees: 0%

Return to top

Social Partners

Social Dialogue and Involvement of Social Partners
There are about 132 unions in Australia organized by trade association.
Because of the increase in the proportion of the workforce which is not unionized, the credibility of the unions has diminished over the last few years, but powerful relations continue to exist between unions and the Labor Party.
Legal provisions govern work contracts. They were reformed and then enforced from 27 March 2006. However, the new Labor government in power since December 2007 wants to query this legislation.
The new system provides a unique ensemble of simple rules which can be applied nationally. The Workplace Relations Actwhich includes the new rules of WorkChoices is available for downloading.
The first role of the Fair Work Ombudsman(OEA) is to supervise the enforcement of agreements in the work context. The OEA also provides:
- advice and information for employers and employees who wish to draw up a contract together
- assistance for employers and employees to understand the Australian Fair Pay and Conditions Standard
- it verifies the legitimacy of agreements between employers and employees before they come into force
- it explains the content of agreements to people with specific needs (for example: young people, people from a non-English speaking background).
Unions
Australian Council of Trade Unions (ACTU)
Unionization Rate
In Australia it is not compulsory to join a union. Unions are represented by the Australian Council of Trade Unions (ACTU); these represent more than 2 million Australian workers, i.e. 22% of the active population.
Labor Regulation Bodies
Department of Employment

Return to top

Any Comments About This Content? Report It to Us.

 

Learn more about Operating a Business in Australia on Globaltrade.net, the Directory for International Trade Service Providers.

© Export Entreprises SA, All Rights Reserved.
Last Updates: October 2014