BDO LLP | INTERNATIONAL TECH HUB
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led many companies to expand out of the US to be listed on the Australian stock exchange, particularly tech companies. It gives them a profile on a listed exchange, but also gives them access to Australian, Asian and Western investors. That, along with deep capital pockets, has led tech to become one of the leading sectors in Australia.
want greater control over their supply chain, and to make costs comparable with China, technology is necessary. THE TALENT POOL As with any other location, finding the right talent can be difficult. Australia’s relatively small population means that the pool is less expansive. However, that scarcity of talent is meted by the skilled workers that come in from the Asian market, from the UK and the U.S. Australia provides a great English-speaking location for these people to come and work, and the remuneration is strong, which attracts talent. GOVERNMENT SUPPORT Australia doesn’t have any particular surprises in terms of accounting standards or reporting, making it easy for businesses in the U.S. and other locations to transition into this market. There is also the appeal of the economic benefit of tax incentives for start- up tech businesses in Australia. Preferred treatment is given by the tax office if a technology is started in Australia, which encourages innovation. THE AVAILABLE CAPITAL There is no shortage of capital in the market. Innovative start- ups seeking angel investors or government grants will find the market very supportive. Businesses that are moving into their next stage can find global players in venture capital willing to invest. Established businesses find ample private equity investment, or list on the stock exchange. There’s plenty of opportunity for raising capital in Australia. There’s also the compulsory superannuation system, which sees every single employee paying 11% of their salary to superannuation that is then invested. That generates approximately $3 trillion of capital that has to find a home, and given the appeal of backing the next tech unicorn, tech businesses are often the recipients of that financial support.
AUSTRALIA HAS BECOME A TESTING GROUND FOR COMPANIES LOOKING FOR SAFE LANDING POINTS
THE TECH BUSINESS ECOSYSTEM Like in other global cities, all the significant tech players are already established in the Australian market. Where Australia differs to other nations is that there tends to be greater specificity in the tech businesses that congregate in each city, largely depending on the type of sectors that are prominent in that region. Brisbane, for example, is very strong in the agriculture and mining sectors; Perth attracts mining tech in particular. Melbourne is home to retail technology. As Sydney houses the majority of financial institutions fintech companies can often find their natural home there. Australian cities operate almost as entirely different markets, because of the enormous distances (1,000km+) between each locale. The tech businesses that do well in each location depend on what works generally in the area. However, Sydney due to its financial focus, is usually the first landing point for businesses expanding into Australia. There are successful software, proptech, retail technology, manufacturing technology firms and more, though the main type of tech is still financial in nature. However, there is a growing focus on manufacturing technology across Australia as a whole. Given world events, companies
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