A practical guide for international companies considering the Australian market.

Australia can be an attractive market for international companies - but it is rarely simple.
Firms that succeed tend to move deliberately, test assumptions early and avoid committing capital before they understand demand, regulation and execution risk.

This guide outlines how international organisations should approach expansion into Australia, what commonly goes wrong and how to assess readiness before committing capital or hiring locally.

Is Australia a good market for international companies?

Australia offers a stable legal system, strong institutions and high purchasing power. It is often well suited to international companies operating in:

However, Australia is not a low-cost or lightly regulated market. Labour, compliance, tax and operating costs are often higher than expected, and demand can be narrower and more fragmented than headline statistics suggest.

A structured assessment is essential before assuming Australia will translate easily from other markets.

Common mistakes when expanding into Australia

Many international firms struggle not because Australia is unattractive, but because early decisions are made too quickly or on incomplete information.

Common errors include:

• Who the real buyers are (often fewer than expected)

• How decisions are made (enterprise, government, procurement-led)

• The existing competitive landscape - local and international

• Price sensitivity, buying cycles and switching barriers

• Whether demand is national or state-specific

Market size alone is rarely decisive. Accessibility, route-to-market and execution risk matter more.

Choosing the right market entry structure

There is no single “best” way to enter Australia. Typical pathways include:

• Remote servicing or exporting (testing the waters)

• Distributor or commercial partner

• Joint venture or strategic alliance

• Australian subsidiary (Pty Ltd)

• Branch or representative presence

Each option carries different implications for:

• Tax exposure and compliance

• Speed to market

• Cost and operational risk

• Control and governance

Choosing the wrong structure too early can be difficult and expensive to unwind.

Regulatory, tax and compliance considerations

Australia has robust regulatory standards, particularly in:

• Financial and professional services

• Energy, infrastructure and regulated industries

• Employment and workplace relations

• Privacy, data and consumer protection

Key issues to identify early include:

• Corporate structure and registration

• GST and income tax exposure

• Industry-specific licensing or approvals

• Director obligations and liabilities

• Contracting models (local vs offshore)

These matters should be mapped before engaging customers or signing contracts.

Hiring, banking and operating locally

Local operations introduce practical realities that are often underestimated:

• Treating Australia as a small extension of the UK, EU or US

• Establishing a local entity before validating demand

• Underestimating regulatory, tax or licensing triggers

• Hiring senior staff before the operating model is clear

• Selecting partners without structured due diligence

• Assuming Australia is a single national market rather than state-based

These mistakes can lock organisations into cost and risk long before traction is proven.

Understanding demand, buyers and competition

Australia is a mature market with sophisticated buyers.

Before entry, firms should understand:

• Market readiness indicators

• Entry structure options

• Regulatory and tax triggers

• Key decision points before committing capital