2025 Guide to Doing Business in Australia

2025 Australian Business Guide: Balancing Opportunities and Compliance, These Key Areas Worth Attention

As an innovation hub in the Asia Pacific region, Australia has always attracted global investors with a stable growth environment and diverse industry opportunities. From traditional advantageous industries such as healthcare, infrastructure, and resources, to the vibrant fintech sector, Australia provides a wide range of development opportunities for businesses. The 2025 edition of King&Wood Mallesons' Guide to Doing Business in Australia systematically outlines core considerations such as local laws, society, and taxation, providing clear references for companies interested in expanding into the Australian market.

The legal regulatory system in Australia is based on a federal system, with legislative, executive, and judicial bodies at the federal, state, and territory levels, forming the 'Washington D.C.' mechanism - a fusion of the American model and parliamentary characteristics. The Federal Constitution is the core legal framework, and its amendment requires a national referendum with an extremely low approval rate, ensuring the stability of the legal system. In terms of dispute resolution, companies need to pay attention to the differences in jurisdiction between different courts. For example, state higher courts focus on cases related to state legislation, while federal courts have jurisdiction over federal legal matters. Civil disputes usually need to be filed within 6 years after the breach or infringement occurs, and courts generally encourage alternative dispute resolution methods such as mediation and arbitration to reduce costs and improve efficiency. It is worth noting that groups of 7 or more people can file class action lawsuits on securities, labor laws, consumer rights, and other issues. Victoria also allows law firms to charge fees based on the percentage of the winning amount, which poses higher requirements for corporate compliance.

In the field of company operation and investment, foreign companies that conduct business in Australia must first register with the Australian Securities and Investments Commission (ASIC). The criteria for determining whether to 'conduct business' are relatively broad, including having a fixed office in Australia, establishing a share registry, or managing property through agents. Enterprises can choose from various business structures, such as private companies requiring at least one resident director and no more than 50 shareholders; Trust or managed investment plans are managed by trustees, and if retail investors are involved, they must register and hold an AFSL (Financial Services License). In 2026, Australia will undergo a significant adjustment in its merger control mechanism, transitioning from voluntary reporting to mandatory suspension of reporting. Transactions signed in 2025 need to be planned in advance - approvals obtained before July 1, 2025 must be delivered by the end of the year, otherwise they will need to be re reported in 2026. This change will cover more transactions that were previously not required to be reported, including non competitive acquisitions by large enterprises.