Complete guide to doing business in Australia in 2026, for growing startups and entrepreneurs

Australia's getting serious attention from UK businesses right now. The economy grew 0.6% in the June quarter, the strongest performance in over two years.¹ That's real momentum after some slower patches.

What makes this particularly interesting for UK companies is the infrastructure already in place. The Australia-UK Free Trade Agreement removed tariffs on over 99% of goods², making cross-border trade cheaper and simpler. English is the main business language, the legal system is familiar, and the banking infrastructure connects easily with UK operations.

This guide shares what you need to know before expanding to Australia and even how Wise Business can help you manage multi-currency payments.

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Australia expansion overview

Before we go into details, here’s a quick glance at what you need to know about doing business in Australia.

Considerations	Description
Key opportunities	Strong economic growth – thriving tech, fintech and healthtech industries, skilled workforce, Australia-UK Free Trade Agreement eliminates 99% of tariffs²
Main challenges	High cost of living in major cities, talent shortages in specialised tech roles, geographic isolation from major markets, Foreign Investment Review Board (FIRB) approval requirements, regulatory complexity across states
Top industries	Technology and software, healthcare and aged care, financial services and fintech, renewable energy, professional services, mining and resources
Best cities for business	Sydney, Melbourne and Brisbane

Why expand business operations to Australia?

Australia offers some compelling reasons for UK businesses looking to grow overseas. The market is stable, the barriers are lower than in many other regions, and there's a genuine appetite for quality products and services.

Here's what makes expansion here worth considering.

Stable economy and familiar legal system

Australia is one of nine countries with a AAA credit rating from all three major agencies.³ This isn't just a nice-to-have. It means the government's finances are solid, the currency floats freely to absorb economic shocks, and you won't face sudden policy reversals.

What really helps UK businesses is the legal familiarity. Australia follows common law principles, just like the UK. Contracts are enforceable, disputes get resolved through systems you'll recognise, and you're not navigating completely foreign regulatory frameworks. That reduces risk and speeds up operations.

Strong workforce with relevant skills

The talent pool in Australia is solid. Six universities rank in the global top 100⁴, producing highly skilled graduates across multiple disciplines. English as the business language removes translation barriers. Professional qualifications in accounting, engineering and medicine often transfer smoothly between the two countries.

Your base for Asia-Pacific operations

Geography is your advantage as Australia sits in the right timezone to work with Southeast Asia, China, Japan and India without the middle-of-the-night calls. Brisbane has direct connections to over 30 international destinations, with strong links throughout Asia-Pacific.⁵

This is why many UK businesses use Australia as their regional headquarters. The Australia-UK Free Trade Agreement sweetens the deal by removing tariffs on 99% of goods². You also get access to Australia's trade agreements with China, Japan, South Korea and ASEAN countries, opening doors to preferential terms in those markets.

Growing tech sector worth your attention

Australia's tech sector is projected at 147 billion AUD in revenue with software reaching at 13.4% annually⁶. AI, cloud computing and cybersecurity are driving most of that growth.

Fintech and healthtech are particularly strong. Canva and Atlassian both scaled globally from Australian bases, which shows it's possible. Government support helps too, with R&D tax incentives providing refundable offsets of 18.5% above the corporate tax rate,⁷ and venture capital that reached 4 billion AUD across 414 deals in 2024.⁸

Established UK-Australia trade links make entry easier

You're not starting from scratch. In 2022, the UK was Australia's second-largest source of foreign investment at USD184 billion,⁹ and two-way trade hit 36 billion AUD in 2024.¹⁴

The Australian Free Trade Agreement (FTA) also streamlines staff movement through intra-corporate transfer visas and recognises professional qualifications in key sectors. This allows you to move people between operations without excessive red tape.

💡 Read our international expansion checklist

Challenges of doing business in Australia

Australia isn't without its complications. The opportunities are real, but so are the challenges. Here's what UK businesses typically run into.

Operating costs run high in major cities

Sydney CBD office space costs around 1,000 AUD per desk per month.¹⁰ Melbourne's cheaper at 700 AUD,¹¹ but you're still looking at serious money once you factor in a proper team. These costs hit harder than most UK cities outside London.

Housing matters if you're moving people over. Sydney rents run 750 AUD weekly for units¹². You'll need to offer salaries that cover this, which pushes your wage bill up fast. Add fit-out, legal work and relocation costs, and you're spending before you've made your first sale..

Logistics costs more than you'd expect

Australia is far from everywhere. Container shipping costs from China to Australia spiked dramatically during the pandemic, with freight rates more than doubling at their peak in 2021.¹³ While prices have come down since then, they remain elevated compared to pre-pandemic levels, and geopolitical disruptions continue to cause volatility.

Getting goods around Australia isn't cheap either. About 75% of freight moves by road,¹⁴ which means you're paying for fuel and driver time across massive distances. If your business model depends on importing materials or shipping products internationally, model these costs carefully. They'll eat into your margins faster than you think.

Skilled talent is competitive

Tech skills are in short supply. Roles in cybersecurity, data science and artificial intelligence take months to fill. Everyone wants the same candidates, and those talents have options.

Salaries reflect this. Australian tech workers earn global rates, and with remote work normalised, they're getting offers from companies worldwide. You're not just competing with local firms.

Bringing people from the UK isn't straightforward either. The government shut down the Business Innovation and Investment Program in 2024, replacing it with an invite-only visa.¹⁵ Plan for longer hiring timelines if you need to relocate specialists.

Regulatory requirements vary by state

Federal law covers the major regulations, but each state adds its own requirements. What works in New South Wales might need changing for Queensland or Victoria.

Licences, permits, compliance all vary by state. If you're planning to operate in multiple locations, you'll spend time understanding different employment laws, safety requirements and industry regulations.

The Foreign Investment Review Board reviews acquisitions and investments over certain thresholds. Depending on what you're buying and how much you're spending, you might need approval before you proceed. Factor that time into your deal timeline.

💡 Learn more about navigating risks of international expansion

How to set up a business in Australia?

UK businesses entering Australia usually pick one of two paths.

The first option is registering as a foreign company with ASIC (Australian Securities and Investments Commission). Your Australian operations stay part of your UK entity rather than becoming a separate company. You'll need to appoint an Australian local agent who handles legal paperwork and notices on your behalf. After ASIC processes your application, you’ll get an Australian Registered Body Number (ARBN).

Either way, you'll need:

• An Australian Business Number (ABN) for tax purposes and invoicing¹⁸
• GST registration once turnover hits 75,000 AUD a year¹⁹
• A Director Identification Number (DIN). This can take up to 56 days for non-residents, so start early²⁰

💡 See our full guide on starting a business in Australia🇦🇺target=blank}

What cities and areas in Australia are best for businesses?

Location matters when you're entering Australia. These three cities offer different advantages depending on your business needs.

Sydney: Financial hub and tech capital

Sydney's where Australia's money flows. The city hosts 81 ASX-listed digital companies worth 52 billion AUD and employs over 119,000 people in tech.²¹ You'll find the Australian Securities Exchange here, along with headquarters for major banks and most venture capital firms actively investing in startups.

Tech Central, a six-square-kilometre district in the CBD, packs in the country's highest concentration of tech businesses.²² Atlassian, Canva and Block all operate here. The Sydney Startup Hub provides workspace and connections, while VC firms like Blackbird, Airtree and Square Peg regularly fund early-stage companies.

Melbourne: Lower costs with strong university ties

Melbourne offers similar ecosystem benefits to Sydney but at lower prices. Office space averages 700 AUD per desk monthly,¹¹ which adds up when you're hiring quickly.

Victoria, where Melbourne is the capital city, supports over 3,500 startups valued collectively at 132 billion AUD.²³ LaunchVic provides government backing through funding and programs. Melbourne particularly excels in healthtech, edtech and creative tech. It's also home to Australia's largest biotech hub.²⁴

Universities in Melbourne pipeline talent straight into the startup scene. The Melbourne Accelerator Program has launched over 100 companies.²⁵ Coworking spaces like Inspire9 encourage the kind of collaboration that leads to partnerships and deals.²⁶

Work-life balance tilts better than Sydney. Melbourne ranks consistently as one of the world's most liveable cities¹⁰, which matters when you're trying to recruit good people and keep them.

Brisbane: Asia access with startup momentum

Brisbane's has an annual +8.2% and is home to 276 startups in Australia.²⁷ The growth trajectory is steep, particularly in fintech, biotech, cleantech and agtech.

Geography gives Brisbane an edge. It sits closer to Asian markets with direct flights to different cities across the region.²⁸ If Asia-Pacific expansion is part of your plan, that timezone positioning cuts down on awkward late-night calls.

Success stories show what's achievable from Brisbane. GO1 became a unicorn worth over 3 billion USD.²⁹ The Queensland government also backs startups through active grant programs and support initiatives.

Business etiquette and culture in Australia

Adjusting to a new business culture is one of the trickier parts of expanding overseas, both in professional settings and everyday interactions.

You'll find Australia's business landscape quite similar to the UK. English is the language, the legal system works the same way, and many professional norms will feel familiar.

The main difference is that Australian business culture runs more informal than what you might be used to. Hierarchies are flatter. Junior staff speak up in meetings without hesitation. You'll probably be on first-name terms from your first meeting, and people use humour (often self-deprecating) pretty freely in professional settings.

Turn up on time. Australians prefer straightforward talk without corporate buzzwords, and they'd rather you get to the point quickly. Business lunches and dinners happen regularly, serving double duty for discussing work and building personal connections.

Like in the UK, relationships matter when you're building networks and making connections in Australia. Australians value what they call "mateship" in business, which basically means treating people as equals and working collaboratively.

Still worth doing some homework though. Your specific industry or the particular city you're entering might have its own quirks worth understanding.

Tips for doing business in Australia

Getting your Australian expansion right comes down to preparation and understanding what's actually required. Here are the practical steps that matter:

• Research your market thoroughly: Don't assume the Australian market behaves like the UK just because the language is the same. Customer preferences, pricing expectations and competitive dynamics can differ significantly by city and sector.
• Get your legal structure sorted early: Whether you register as a foreign company or set up an Australian subsidiary affects everything from tax to compliance. Talk to a local lawyer or company formation specialist who knows the specific requirements.
• Understand your tax obligations: Register for GST once your turnover hits 75,000 AUD.¹⁹ Get a Tax File Number sorted. Tax rules vary by state for payroll and other obligations, so factor that in.
• Build relationships before you need them: Australians value personal connections in business. Invest time in networking, industry events and getting to know potential partners before you're asking for something.
• Open a business bank account: This is non-negotiable. Traditional Australian banks require you to have a primary business address and hold an ABN.³⁰ The process can be complex for foreigners, often requiring in-person verification. Alternatively, use Wise Business to manage AUD transactions alongside other currencies. This works well if you're dealing with multiple markets and want to avoid the fees traditional banks charge for currency conversion.

💡 You may also like our guides to doing business in Asia, the US, LATAM and Europe✈️

Grow your business in Australia with Wise Business

Managing money across borders gets messy especially when you’re expanding your business abroad. Wise Business cuts through the complexity.

Open a Wise Business account and hold money in 40+ currencies in one place. Pay Australian suppliers in AUD, receive UK payments in GBP, and switch between currencies at the mid-market exchange rate with transparent fees.

Key features include:

• Business debit cards that work in 160+ countries, with up to cashback on eligible spending
• Send money to over 140+ countries
• Get account details in 8+ currencies to receive payments as if you were a local business (only with Wise Business Advanced)
• Invoice generation, accounting integrations and batch payments

Opening a Wise Business account is straightforward, with digital verification. The account opening fee is £50 (Advanced plan) or for free (Essentials plan).

Wise works across Asia-Pacific too, including Singapore, Hong Kong, Japan, Malaysia, New Zealand and the Philippines.

Register with Wise Business🚀

*Disclaimer: The UK Wise Business pricing structure is changing with effect from 26/11/2025 date. Receiving money, direct debits and getting paid features are not available with the Essential Plan which you can open for free. Pay a one-time set up fee of £50 to unlock Advanced features including account details to receive payments in 22+ currencies or 8+ currencies for non-swift payments. You’ll also get access to our invoice generating tool, payment links, QuickPay QR codes and the ability to set up direct debits all within one account. Please check our website for the latest pricing information.

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Sources

1. Australian economy grew 0.6 per cent in June quarter – Australian Bureau of Statistics
2. The Australia-UK Free Trade Agreement entered into force on 31 May 2023 – Australian Trade and Investment Commission
3. Fitch reaffirms Australia’s AAA credit rating – Australian Labor Party
4. University of Melbourne rated best in Australia in global rankings report – Guardian
5. Direct destinations from BNE – Brisbane Airport
6. Gartner forecasts IT Spending in Australia to Grow 8.7% in 2025 – Gartner
7. About the R&D program – Australian Taxation Office
8. Aussie VCs reveal their 2025 investment targets – Dynamic Business
9. https://www.dfat.gov.au/trade/agreements/in-force/aukfta/benefits – Australian Department of Foreign Affairs and Trade
10. Sydney's Office Space Guide – Rubberdesk
11. Melbourne's CBD Flexible Office Price Guide – Rubberdesk
12. ‘Terrible effect’: Sydney unit rents hit a record high $750 a week – Domain Insight
13. Sea freight costs – ABC News Australia
14. Road Freight Trucking Industry Guide – Road Freight
15. BIIP closure and refunds – Australian Department of Home Affairs
16. https://www.asic.gov.au/for-business-and-companies/foreign-companies/register-a-foreign-company-in-australia/
17. Branch vs Subsidiary: What’s the Difference for Australian Businesses? – Sprint Law
18. Australian business number (ABN) for non-residents – Australian Taxation Office
19. Register for goods and services tax (GST) – Australian Government
20. How to follow up with DIN application for foreign directors? – Australian Tax Office
21. Inside Australia's Thriving Tech Hub: Startups and Success Stories – Nucamp
22. Tech Central Innovation Hub – NSW Government
23. Launchvic Ecosystem Research – Launchvic
24. Pharmaceutical – Invest Victoria
25. Australia's Leading University Startup Accelerator – Melbourne Accelerator Program
26. Coworking heroes – Inspire9
27. The startup ecosystem of Brisbane – Startup Blink
28. Brisbane and surrounding areas – Migration Queensland
29. Go1 2025 Company Profile – Tracxn
30. Set up your business bank account – Business Gov AU

Sources last checked: 08-Dec-2025