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When scouting for a business location, Australia gives investors a competitive and quality choice in the Asia-Pacific region.
With average business costs around eight to nine per cent below those in the US, Australia is ranked the second most cost competitive country for business operations in the major industrialised world.[1]
Australia ranks one of the lowest cost business locations in the major industrialised world.[2].
Property prices are highly competitive, with the cost of prime office space in Sydney around 70% less than in London, 70% less than in Tokyo, 50% less than in Hong Kong and 65% less than in Mumbai India.[3]
A three-minute peak-hour telephone call from Australia to the US (US$0.64) costs less than from the UK (US$0.65), Japan (US$1.63), Singapore (US$0.70), Hong Kong (US$1.15) and China (US$2.93).[4]
Electricity costs per kilowatt hours for industrial clients (US$0.060) are cheaper in Australia than in the UK, Singapore, Germany, Hong Kong and Japan.[5]
A popular drawcard for investors is the fact that Australia is the eighth lowest taxing country in the 30 member OECD, with its tax revenue as a percentage of GDP being 31.2% compared to an OECD average of 35.9%.[6]
And while Australia's workforce is one of the most highly skilled and multilingual in the world, remuneration levels for management staff in Australia are lower than in the US, the UK, Germany, France, Canada and Hong Kong.[7]
Australia is third among major developed countries, behind only USA and New Zealand, in terms of providing low cost of living.[8]
Complementing these attractive cost benefits, Australia's metropolitan areas are fully serviced by sophisticated telecommunications, transport infrastructure and utilities.
Australia's transport and logistics systems provide a mature, efficient and cost effective means of delivering products around the world. Domestic road, rail and air services between Australia's major centres are frequent, reliable and cost effective. In fact, international business considers the quality of Australia's air transportation third best in the region.[9]
Significant investment in transport infrastructure, such as the construction of a trans-continental railway linking the north and south of the country, demonstrates a commitment to continual improvement and efficiency.
If you combine Australia's cost competitiveness and superior workforce with a low overall cost of living, the commercial advantages of doing business in Australia are clear.
“Software developers and IT services companies find Australia an ideal place to do value-added work as it is highly cost competitive compared to other developed markets in the Asia-Pacific.
Telecommunications infrastructure works well here and there is plenty of office space – we were amazed to find that it is cheaper to rent in the Melbourne central business district than in Mumbai. Australia is very savvy; it’s a smart place to do business.”
Virender Aggarwal, Director and Senior Vice President,
Satyam Computer Services, Asia-Pacific, Middle East, India and Africa.
View Ten Good Reasons to Invest in Australia summary.
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[1] KPMG, Competitive Alternatives, 2006
[2] Ibid
[3] CB Richard Ellis, Global Market Rents, May 2007
[4] IMD World Competitiveness Yearbook 2007
[5] Ibid
[6] OECD 2006
[7] IMD World Competitiveness Yearbook 2007
[8] Ibid
[9] Ibid
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