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The ASX is the world's 10th largest stock exchange by market capitalization. It is
often seen by early-stage technology companies as a significant funding tool as the
listing requirements are more easily satisfied than those of other international stock
exchanges.
Regulation of Companies and Foreign Investment
Companies in Australia are subject to the
Corporations Act 2001
(Cth) (Corporations
Act) which is administered by the Australian Securities and Investments Commission
(ASIC). ASIC also regulates the incorporation, operations, management and control
of companies and imposes obligations on directors and other corporate officers.
Directors of companies in Australia are subject to directors' duties to which heavy
penalties can apply. These are contained in the Corporations Act and also governed
by common law.
Australia's regulation of foreign investment is largely dealt with by the
Foreign
Acquisitions and Takeovers Act 1975
(Cth) (FATA), which is administered by the
Foreign Investment Review Board (FIRB).
FIRB has the power to block acquisitions by foreign investors in Australian companies,
businesses and real estate where they are determined to be contrary to Australia's
national interest, or may impose conditions on an approval. However, the jurisdiction
of FIRB is limited by monetary thresholds. For example, FATA generally only applies to
acquisitions having a value in excess of A$252 million as a minimum, although this is
subject to exemptions for sensitive sectors and foreign government investors. FIRB
examines foreign investment proposals and advises the Treasurer whether or not they
comply with Australia’s foreign investment policy. Approval from FIRB must be sought
on the acquisition of substantial interests in an Australian business and in certain real
estate transactions.
Tax
Australia's corporate tax rate is 30%, or 28.5% for small businesses. It has recently
been announced that over the next 10 years the corporate tax rate will be reduced to
25% incrementally. Australia also has a goods and services tax (GST), which is a 10%
consumption tax on supplies of most goods and services and various state taxes,
including payroll tax and stamp duty.
Employment
Employer obligations in Australia are governed by the
Fair Work Act 2009
(Cth)
which introduced a minimum employment standards and general protections against
discriminatory, unfair or unlawful conduct.
The Australian Government considers that Australian business must have access
to overseas skills, ideas, contacts and technology, and may need to recruit overseas
personnel. As such, there are a number of visas available to employees and business
people.
In September 2015, the Australian Government announced its intention to begin
negotiations on a double taxation agreement with Israel. Such an agreement will
serve to further strengthen the economic ties between the countries and will
reduce the withholding tax rates on royalties paid back to Israel.