2. Introduction
Presented by:
• UKTI Australia & New Zealand: Scott Strain, Director for Trade
• Allen & Overy: Michael Parshall, Partner
• RBS: Paul McGovern, Head of Cash Management
• Australian British Chamber of Commerce: David McCredie, CEO
2In partnership with:
3. UKTI Australia webinar schedule
18 September: Australia the best business opportunities and
how to access them
25 September: Establishing a business in Australia: what you
need to know
2 October: How to export to Australia trouble free
16 October: Australian economic update: what comes after the
boom?
23 October: Fashion online: selling to Australia
31 October: Super telescope, super opportunities: British
Business and the Square Kilometre Array (SKA)
5. 5
Why Australia?
• You’ll feel at home immediately:
• Over 1,000 UK companies and more Brits than in any other country
• Very similar business, legal and regulatory culture
• Best performing OECD country economically, with good growth prospects
• Strong Australian dollar making UK goods and services more affordable
• Closely linked to fast growing Asia-Pacific nations
• Significant opportunities for UK companies in oil and gas, health, ports,
transport infrastructure, ICT, education, low carbon, financial and business
services
In partnership with:In partnership with:
6. 6
A comparison with Australia
Australia UK
Population 23 million 62 million
Global GDP ranking 12th
(IMF 2012) 7th
GDP growth est. 2013 2.5%
(OECD May 13)
0.89%
GDP per capita ($US 2012) $67,700
($US 2012 IMF)
$28,032
Ease of doing business
(World Bank 2011)
10th
(WB 2012)
7th
Unemployment (April 2013) 5.5%
(May 13 ABS)
7.8%
Land mass – sq kms 7 692 000 242 000
In partnership with:
7. UK Exports to Australia
• UK exports to Australia grew by
80% from 2007-2012 to £10.3 billion
• Total UK goods exports growth was
flat in 2012, but to Australia still
increased 6%
•7th
biggest market for services
exports and 18th
largest for goods
• UK is 2nd
biggest foreign direct
investor in Australia
7In partnership with:
12. Rail Projects in Australia
Projects with committed funding
Australian Rail and Track Corporation: Upgrades to the Northern Sydney
Freight Line between North Strathfield and Newcastle, Commenced in
2012, Expected Completion: 2016; Cost: $1110m
Australian Transport and Energy Corridor: Construction of an inland railway
from Surat coal basin to the Port of Gladstone, Construction to commence in
the coming months, Expected completion: 2014; Cost: $1000m
Queensland DTMR: Cross River Rail – 18km north-south rail line in the
Brisbane CBD, Plans announced
Expected Completion: N/A; Cost: $4500m
The North West Rail Link A 23 kilometre extension –including 16.9 kilometres
in tunnel- to the existing City Rail network from Epping to Rouse Hill .
Estimated capital cost of the project is $7.5 to $8.5 billion.
Perth Rail Public Transport Package $500 million over 10 years to deliver a
public transport project in Perth", either the $1.8 billion MAX light rail
system or the $1.9 billion rail line to Perth Airport.;
In partnership with:
13. The Nation Building Programme
Potential Projects
NSW State Light Rail -project cost is an estimated $1.6 billion.
NSW State Rail Authority: Western Express City Rail Service –
new underground platforms at several central stations,
Start date 2015, Expected Completion: N/A Cost: $5430m
Melbourne Metro - $3 billion contingent on matched funding from the
Victorian Government, flagged for delivery as an availability Public
Private Partnership (PPP), with the Commonwealth Government also
noting an additional provision to support future availability payments;
$75.0 million for the Port Botany rail line upgrade to improve
access and connectivity between the port and the future Moorebank
Intermodal Terminal and future planning for the Metropolitan Freight
Network. Access and connectivity between the port and the future
Moorebank Intermodal Terminal and future planning for the
Metropolitan Freight Network.
Leah Gartner
Senior Trade Development
Manager
Railways, Advanced
Engineering and Marine
Leah.Gartner@fco.gov.uk
In partnership with:
14. Major Road Projects
Major Road Projects
West Connex, NSW
East West Link, Victoria
Bruce Highway, Queensland
Opportunities
Construction
Design,
Project Management
Engineering,
Project Finance & PPP
Drainage,
CCTV,
Road safety management and
providers of building equipment,
materials, and supplies.
14
Antonia Yendell
Senior Trade Development
Manager
UKTI Melbourne
antonia.yendell@fco.gov.uk
In partnership with:
18. Australian opportunities: mining
─ As the mining boom moves from
phase 2 to 3 in 2013, the nature
of opportunities is shifting
─ The focus on cost-control is
critical for identifying opportunities
─ Hi-tech machinery, eg.
Automated, remote-control
equipment.
─ UK export potential is not limited
to mining-specific goods
18In partnership with:
19. Projects: QLD & WA
Carmichael Coal Project ($6.8bn)
Adani Mining. Feasibility Stage.
Alpha ($10bn) and Kevin’s Corner
($4.2bn) Coal Projects
GVK/Hancock Coal. First coal 2016.
Work package on ICN Gateway
Galilee Coal Project ($8.8bn).
First coal 2016
Waratah Coal. First shipment 2015
South Galilee Coal Project
($4.2bn). At Feasibility stage
.
Roy Hill Iron Ore Mine &
Infrastructure ($9.5bn)
Hancock Prospecting. Production
expected 2015.
Oakajee Midwest Development
($4bn)
WA State Govt/private. On hold
pending review.
West Pilbara Iron Ore Project
($6bn)
Australian Premium Iron JV. First
shipment 2015
19In partnership with:
21. Financial & Professional services
Emerged from the global financial
crisis relatively intact
Finance and insurance is the largest
sector in the Australian economy,
worth more than £83 billion in 2011
Australia has world’s fourth largest
asset pool due to ‘superannuation’.
Assets reached approx £900 billion
June 2011
Contact melena.dirou@fco.gov.uk for
more information
21In partnership with:
22. Australian opportunities: ICT
ICT contributes 4.6 % of Australia’s GDP
(AU $82 billion) IBSA Dec 2010
Building v fast broadband network to
cover 95% of population (in 8-10 yrs)
At A$35.7 billion it’s the most
expensive infrastructure project in
Australia’s history
Opportunities in e-Health, e-Learning,
digital entertainment, e-commerce for
mobile
Internet usage in Australia is 90%
penetration (5th
best in the world)
Contact Jim.Thompson@fco.gov.uk for
more information
22In partnership with:
23. Australian opportunities: e-commerce
Australians spent around £7 billion
online in 2011
Online sales grew 90% from 2010 to
2011
Opportunities in sporting and outdoor
goods, cosmetics and beauty
products, books, media and fashion
Goods under $1,000 bought
overseas do not attract 10% GST
Contact joanna.olivera@fco.gov.uk
for more information
23In partnership with:
24. Australian opportunities: hospitals
24
Major projects
New South Wales Hospital building programme will see $10 billion spent over
the next 5 years on new and redeveloped hospital facilities.
Projects and programs already underway:
• Major hospital upgrades at Blacktown (due 2016), Campbelltown (2016), St
George (2014), Hornsby (2016), Bega (2016), Dubbo (2014), Wagga Wagga
(2017), Tamworth (2016), Lismore, Port Macquarie (2015) and Kempsey (2016).
• Planning is underway for new hospitals in Byron Bay, Maitland and Sydney’s
Northern Beaches to meet the future health demands of these regions.
More info: http://www.hinfra.health.nsw.gov.au/projects/capital-projects?
5701_p=1
Contact: Joe Dodd at Joe.Dodd@fco.gov.uk
In partnership with:
26. How UKTI can help?
Passport to Export
Gateway to Global Growth
Export Market Research Scheme
Overseas Market Information Service
Trade show Access Programme
Trade Missions
Scott.Strain@fco.gov.uk
26In partnership with:
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Establishing bank accounts and banking facilities in Australia
Regulatory framework
• Australia is an open market but our regulatory framework is quite stringent. Both international and local banks need to know who they are dealing with
• Australia has a well developed “Know Your Customer” (KYC) regulatory framework
• Your bank will need to identify the company along with it’s designated authorised representatives and account signatories
• There are a number of ways your bank can identify your business in Australia in order to open bank accounts
Establishment
Local and foreign companies who have a
registered Australian business
Foreign companies carrying out business
directly in Australia
Non resident companies
Registration
Australian Securities and Investment
Commission (ASIC) will provide an Australian
Company Number (ACN). The Australian
Taxation Office (ATO) will issue an Australian
Business Number (ABN).
ASIC will issue an Australian Registered Body
Number (ARBN).
Businesses or foreign entities not registered in
Australia can still establish bank accounts in
Australia. These bank accounts will be
established as non resident bank accounts.
Comments
Registered Australian businesses that comply
with all company tax rules. Businesses with
ABN’s can have direct access to all payment and
collection systems in Australia. ABN used when
dealing with tax office, government departments
and agencies. ACN used by banks for our KYC
and ABN used for the banks reporting to the
ATO.
Companies issued with ARBN’s work similarly to
ACN’s. Clients with ARBN’s will have the same
account, payment and collection capabilities,
however they will come under different tax
legislation. One difference is clients issued with
ARBN’s will incur Withholding Tax (WHT).
There are payment and collection restrictions on
non resident accounts. WHT is applicable on all
non resident accounts.
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Different types of bank account structures
• Your company’s legal structure will define the type of bank account structures available. It is imperative you understand this as it will ultimately impact the
set up of your bank accounts and banking facilities in Australia.
• Your Australian cash management banking provider will be able to provide you possible account types and structures to meet your needs. This may
include AUD or foreign currency accounts domiciled in Australia or offshore.
• As an open market Australia has well developed domestic and international cash management solutions
• Your bank account structure may also involve pooling or sweeping local and foreign currency funds in country or internationally to provide you a complete
liquidity management solution.
• Work with your bank in Australia and the UK to establish the best solutions to meet your needs
Developed liquidity and structured solutions will deliver optimum cash flow and working capital
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Payment channels in Australia
Payment channels
• Australia has an advanced range of payment channels to facilitate all corporate clients' payables and receivables requirements. In fact Australia has over
40 different payables and receivables options available to corporates
• These range from over the counter paper based transactions through to fully integrated web based electronic banking systems and eCommerce payment
options
• Payment and receivable options all fall within the five main Australian Payment Clearing Systems that are almost identical to those in the UK. The only
difference is the terminology used.
• Please find below the key Australian and UK equivalent Payment Clearing Systems
Payment channels in Australia Payment channels in UK
Australian Payment Clearing System 1 – Australian Paper Clearing System (APCS).
Encompasses all paper based deposits and cheque payments. Most paper based
transactions are facilitated as over the counter transactions for processing.
1 The UK paper based clearing system is effectively the same as Australia
Australian Payment Clearing System 2 – Bulk Electronic Clearing System (BECS).
This is also referred to as direct entry or the more global term of ACH. This payment
channel is used for most electronic payments and payroll files.
2
The UK BECS equivalent system is BACS (Batch Automated Clearing System) or the
more global terminology of ACH
Australian Payment Clearing System 3 – Consumer Electronic Clearing System
(CECS). This relates to all cards issuing and cards acquiring transactions processed
through merchant terminals, ATM or Point of Sale (POS) terminals.
3
Again the UK cards issuing and cards acquiring system is identical to that used in
Australia
Australian Payment Clearing System 4 – High Value Clearing System (HVCS). This
relates to Australian RTGS (Real Time Gross Settlement System) payments. Used for
very quick intra-day transfer and settlement of funds.
4
The UK equivalent RTGS payment channel is Clearing House Automated Payment
System (CHAPS)
Australian Payment Clearing System 5 – Cash 5 The UK cash system5
4
3
2
1
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What global corporate treasurers are telling us
PWC 2012 corporate treasurer survey
• As advised in the PWC 2012 Corporate Treasurer Survey, two of the key items treasurers are thinking about are cash management optimisation and
working capital optimisation
• The Survey also reports that when treasurers are conducting business in new markets, they are challenged by how to better manage cash and liquidity in
each country and across the globe and how to improve visibility and control in each country
Global network banks can help you solve these challenges
• Global cash management banks can provide you consolidated in country and global banking systems that will deliver immediate visibility and control of all
your accounts globally. The visibility and control of these accounts can be managed from anywhere in the globe and you can determine which accounts
and services your in country and global teams have access to
• Your in country and global cash management account structure is key to cash optimisation. By working with banks that have the in country capability and
global solutions you will optimise cash in country and around the globe
• Global banks with in country capability have the tools treasurers need to optimise working capital. This is achieved through a global electronic banking
channel that has the ability to manage all in country and global payments and receipts thus ensuring working capital can be maximised for UK corporates
• Australia is in a challenging time zone to maximise global working capital, however global banks now have the solutions to this problem. This is achieved
through a global account structure that facilitates the sweeping and or pooling of funds across countries and currencies as required in a timely manner,
meaning funds can be available for use at the country or global level
To best manage cash and liquidity in country and globally, utilise a global cash management banking provider who has all
the tools to deliver this outcome. These tools include in country and global payables channels, ensuring money can be
moved or notionally pooled and be available for use at both the in country and global level.
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Funding and repatriating funds efficiently
• The tyranny of distance between the UK and Australia provides unique challenges in managing your global cash flow effectively and the timing of funding
or repatriating from your Australian business
• Unless you get the timing right payments from the UK to Australia are rarely processed on the same day
• Your global cash management provider can deliver you the optimum solutions to best manage this process to ensure the timely receipt of funds
• Please find below table outlining the standard funding and repatriation process and timeliness
Repatriating funds from Australia to the UK
Australia is in a favourable time zone to repatriate funds back to the UK
Australia is in an unfavourable time zone for timely receipt of funds, hence
funds will not be received until Day 2
Transfer of funds on Day 1 will be received in the UK on Day 1
Your international cash management banking provider should be able to
help you with timely receipt of funds or use of funds on Day 1
Funding from the UK to Australia
Australian domiciled bank accounts in
AUD or FCY
Utilise your banks in country
and global capabilities to
maximise use of working
capital
Establish cross border,
cross currency sweeps
and/or cross border notional
pooling solutions
This will allow you to utilise
funds in country and
globally without delays in
funding your Australian
account
Discuss your requirement
with your international
cash management
banking provider to
ensure you receive the
optimum in country and
global liquidity solutions
• Please find below potential solutions that will assist you managing your in country and global liquidity
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Tips to successfully set up your banking facilities in Australia
Make contact early
Leverage your local banks’ international network to get advice on how to establish an
optimal UK-AUS banking nexus that meets your needs in both jurisdictions
Provide as much
information as
possible
Know how your business will be registered and will operate, know what key controls are
needed and whether pooling or sweeping will be of value to you
Think forward
Consider the growth plans for your business and ensure you have a banking partner that
can meet your needs today and into the future
Convenient
Consider other banking requirements. Debt funding, FX and guarantee issuance are regular
requests made along with the opening of bank accounts
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Australia is open for business
Paul McGovern
Director – Head of Cash Management Australia
The Royal Bank of Scotland plc
Level 23, 88 Phillip Street
Sydney NSW 2000
Phone: +61 2 8259 5468
Mobile: +61 466 778 530
Email: paul.mcgovern@rbs.com
We look forward to seeing your business in Australia and please contact me should you wish to discuss
your existing or prospective banking requirements in Australia.
45. AUSTRALIAN BRITISH
CHAMBER OF COMMERCE
3 Great Reasons to Join the Chamber
1.Events and Networking
2.Information and Connections
3.Publications and Branding
46. SPEAKERS
The Rt Hon William Hague
UK First Secretary of State
Kerrie Mather
CEO, Sydney Airport Corporation
Stuart Gulliver
Group Chief Executive
HSBC Holdings
Naomi Simson
Founder, RedBalloon
50. CONTACT US
National and NSW Office
Suite 2, Level 15
3 Spring Street
Sydney NSW 2000
Enquiries: Louisa Watson
Phone: 02 9247 6271
Email: abcc@britishchamber.com
VIC Office
Level 16, 525 Collins Street
Melbourne VIC 3000
Enquiries: Helen Walford
Phone: 03 9650 6000
Email: abccvic@britishchamber.com
WA, SA and QLD enquiries, please contact our National Office:
Contact: Louisa Watson
Phone: 02 9247 6271
Email: abcc@britishchamber.com
51. Questions?
Ask our panel:
• Scott Strain, UK Trade & Investment
• Michael Parshall, Allen & Overy
• Paul McGovern, RBS
• David McCredie, Australian British Chamber of Commerce
51In partnership with:
Notes de l'éditeur
UKTI Australia “ To grow UK exports to Australia to around £15bn by 2015, and £19bn by 2020.” What are Australian’s buying? Australian love our Cars £630m (up 150% over past five years) Machinery £338m + Electrical Machinery £177m Pharmaceuticals £31m (up 35% over five years) Metals £330m (Silver in particular) Manufactured goods £338m Clothing £50m up Food & Beverage £105m up 81% Telecomms £98m up 107% Services
- I love this slide. Many people underestimate the size of Australia. This slide sets it in context. Please remember that when planning your visit here. It takes 5 hours to fly from Perth to Sydney – the same from London to Moscow!
Transport Infrastructure Resources Services
There are several opportunities for UK rail companies across several sub sectors, as you can see here on the screen. Market characteristics Attractive and growing market Increased demand placing strain on rail networks across Australia Urban passenger networks each face distinctive challenges Enhancement of passenger and freight networks is sought by each state government with long term plans in place for Sydney, Melbourne and Brisbane in particular. Opportunities Advisory Technical Standard Harmonisation Telecommunications Signalling Financing and PPP’s Asset Management
The 2013 Budget saw the Government bring forward the second round of its Nation Building funding programme, with a headline figure of $24 billion over five years. The second phase of the Nation Building Programme is timed to follow concurrently from the first phase of the programme which finishes at the end of the 2013-14 Budget year. The first phase of the programme totalled $36 billion over six years. Of the $24 billion of funding commitments included in the second phase of the Nation Building Programme, around $13.5 billion is allocated in the forward estimates to 2016-17, with remaining funding falling outside the current Budget horizon. Headline projects in the rail industry to be funded under Nation Building Programmes include the Melbourne Metro and the Brisbane Cross River Rail project. The Budget contained a number of significant transport project commitments under the second phase of the Nation Building Programme. Additional details of funding for major projects include: $500 million for the Perth Light Rail Project, and $75 million for the Port Botany rail line upgrade.
Victoria: East West Link - $8.8 billion One of the largest infrastructure projects ever constructed in Melbourne. The East West Link will be an 18km cross-city road connection extending across Melbourne from the Eastern Freeway to the Western Ring Road. It includes the following: Eastern - Eastern Freeway to CityLink, with a southerly connection to the Port area Western - Port area to West Footscray and beyond to the Western Ring Road Procured by PPP with construction from 2014 to 2018 . New South Wales: WestConnex - $10 billion (Construction value $5b) WestConnex will include a 33km link between Sydney’s west with the airport and the Port Botany precinct . It will accommodate growing transport needs of greater Sydney and strengthen access for industry to commercial centres, improving growth opportunities for local businesses. It is also designed to stimulate urban renewal along the Parramatta Road corridor. Construction on the first stage will start in early 2015 . Procurement will be by PPP with construction from 2014 to 2019. Other NSW projects - $2 billion: M4 Extension and M5 Duplication ($1.8 billion) and smaller scale road projects. Procured by PPP and traditional means with construction assumed to be from 2015 to 2019. Queensland: Bruce Highway (plus other projects) - $6.1 billion The Cairns Bruce Highway Upgrade master plan is a planning study that investigated long term, multi-modal transport planning options to address the impacts of urban growth, congestion and traffic accidents. The Cairns Bruce Highway is being delivered by the Queensland Government and forms part of the Australian Government’s $8.6 billion investment in land transport infrastructure in Queensland. It will be procured by traditional procurement with construction from 2014 to 2019. General notes: AV is largely based on professional judgement and has not been tested with UK companies based in Australia, thus it does not reflect any company’s desire or capability to compete Project scope has been generalised and assume roads, bridges and tunnels on all projects which may differ to actual designs and reflects the current ambiguity on project designs This summary of the analysis should be regarded as providing an order of magnitude assessment of Accessible Value for decision making purposes only Any further relevant information is summarised in the table below. Project Description Team findings Accessible value East West Link, Melbourne 18km road, Stage 1 is 11km. Significant proportion (8km) is tunnelled Potential for design, construct, maintain, and Finance Stage 1 (11km) expressions of interest received from 4 consortia, no UK involvement and therefore its believed that at least 50% of consultancy has been completed and the remaining majority is already let Consultancy services £0 Construction say £0/£83m/£209m West Connex, Sydney 33km AUS$10b cost which includes $5b for land acquisition Construction starts 2014/15 Some feasibility work has been carried out and more to be done Potential for phased/split project in sections No decision on procurement but ‘novel PPP approach’ mooted – mix of PPP with cash contribution of AUS$1.8b by government Consultancy services £99m Construction £0/£79m/£192m Bruce Highway, Cairns No knowledge on where they are but assumed less mature than West Connex Consultancy services £48m Construction £0/£71m/£143m Further relevant findings: Greatest opportunities lie in project consultancy services as opposed to contracting The coalition party is likely to win this weekend’s election and has prioritised roads over rail West Connex has cross party support Strong prospects of East West Link proceeding under coalition Government There will be some opportunities but these are unlikely to be significant within the next 18 months
The major technology change in regards to exploration and extraction of Oil and Gas is the move to deep water and growth in associated subsea technologies. Most of the current and proposed mega-projects off WA and the Northern Territory require these technologies, which the UK has significant expertise in. There are opportunities for companies in areas such as education and training, health & safety and environmental services as well as a much larger range of pipeline opportunities for the larger contracts running across industries as diverse as construction, transport and cleaning and catering services. 6 Operators These are your end user clients Think of who you currently are an approved supplier for Just highlight a few Shell –equity in Gorgon and Wheatstone shareholder in Woodside and NW Shelf JV, operator of Prelude FLNG , partner in Greater Sunrise FLNG BP –equity in Gorgon and wheatstone and NW shelf JV. Just finished large 3D seismic program in Great Australian Bight 2014 15 to start exploration wells drilling Total –Partner in Ichtys with Inpex Woodside - Operator of 30year old NW Shelf JV. Operator Browse FLNG ex James Price Point. Operator of Greater Sunrise Santos – Dominates the Cooper Basin fields in SA, Qld boarders region Exxon Mobil – Dominates the Bass Strait oil fields off Victoria Chevron –Operator Gorgon Wheatstone and Janzse currently being built Inpex –Operator of Ichtys
As the mining sector moves from phase 2 to 3 of the mining boom in 2013, the nature of opportunities is shifting If it can be done cheaper and quicker then there is opportunity. If equipment is lighter, stronger, more hard-wearing there is potential. If a UK company can reduce costs of exploration, operation, maintenance, then the mining company will be receptive. UK opportunities Exploration / Analysis Engineering Services Communications Remote Control Technology Decommissioning Construction Equipment Recruitment Services Occupational Health and Safety Exploration / Analysis The UK has expertise in hi-technology, sophisticated equipment used in areas such as seismic exploration , sample analysis and specialised measuring equipment . Any product or service that contributes to a reduction in time and costs for mining companies is in demand. Geology, geophysics, geochemistry, water management and environmental process. Engineering Services There are engineering companies with UK headquarters operating in Australia. Their expertise covers the whole spectrum including operations , project management , design , civil works , construction , operation and maintenance . Communications The UK is a leader in satellite telecommunications , wireless technologies and Next Generation networks . The remote location of the vast majority of Australian mines provides opportunities for companies. Remote Control Technology The UK is renowned for its innovation and capability in the Electronics and IT sectors . There is a move towards using remote control technology in Australian mining, as spearheaded by Rio Tinto through their Perth Operations Centre; this is now the primary control centre for the company’s vast network of mines, rail systems, infrastructure facilities and port operations in the North West. Decommissioning The UK has a declining coal industry, with coal shutdowns a common occurrence as the country switches to alternative energy for power production. UK companies are experienced in the area of decommissioning which will be needed in Australia as mines age. As coal mines age, new technological processes must be introduced to maintain operations levels and standards of safety . Construction Equipment Innovative products (such as the JCB backhoe loader – that turns on its own axis) and other earthmoving equipment that is easy to manoeuvre but strong with quality engineering. Recruitment Services This is an extremely competitive industry in Australia, including in the mining sector. There are several international and local companies servicing the industry. There could be opportunities for companies that have something unique to offer but they would need to be prepared to spend time knocking on doors. Occupational Health and Safety
Key Opportunities Opportunities exist for offshore and onshore financial businesses, funds management, M&A advisory, Forex, Project Finance. UK companies continue to do well in the recruitment sector, particularly in ICT. PPP expertise welcome. Particularly in the transport sector. Need for fund management mandates as Australian super funds look to invest offshore.
Key Opportunities Opportunities exist in the development of e-Health, e-Learning, digital entertainment and e-commerce for mobile. Other points The ICT Industry contributes 4.6 percent of Australia’s GDP with revenue exceeding AU $82 billion (IBSA figure, Dec 2010) At a cost of AU $35.7 billion, the NBN is the biggest infrastructure project in Australia’s history Building very fast broadband network to cover over 95% of population (over the next 8-10 years) Internet usage in Australia is 90% penetration (5 th best in the world) By 2013, Australia’s total spend in ICT is projected to be US$66 billion, with a compound annual growth rate of eight per cent over the period 2003-17 (Source: Austrade Benchmark Report 2011) Australia has a sophisticated network of ICT R&D facilities, run primarily through the private sector and supported by the government and universities. The country is also home to over eighty high-quality public sector research facilities, with National ICT Australia, and the Commonwealth Scientific and Industrial Research Organisation (CSIRO) ICT Centre and Co-operative Research Centres. With a skilled and experienced ICT workforce of over 300,000 professionals, Australia is ranked highly for the availability of IT skills, qualified engineers, and research and development personnel. Australia is also ideally positioned for the future with the growth of cloud computing: in February 2012, the Business Software Alliance (BSA) ranked Australia second in the world in preparedness for cloud computing. Australia provides a number of strategic ICT investment opportunities, including in the A$27 billion software industry and applications development – from e-health and e-learning to digital content and entertainment. The digital economy affects telecommunications, banks, media, retail and digital content providers. Australian Government focus includes digital engagement in regional Australia. Australians are early adopters of latest innovations in ICT.
This is a £7bn dollar market and online retail sales are growing at 90% per annum. Online orders under $1000 do not attract tax - Clothing, books and media are comparatively expensive here so cost conscious Australians are shopping overseas. - The northern & southern hemisphere seasons can work to your advantage (e.g. clearing your stock, end of summer season sales occur as Australia enters its Spring) - If you sell online then you would be wise to cater to Australian consumers. Excellent E-Commerce report available from Joanna Olivera. Key Opportunities High value goods which can be cost-effectively exported in small quantities eg Sporting and outdoor goods, fashion, media (gaming, hi-tech equipment) Other points Australians spent around £7 billion online in 2011 and online sales have grown an astonishing 90% per annum by value and 126% by volume from 2010 to 2011. Australia has 10.9 million internet users (of a population of 22.5m), with annual growth of 14.8% (2011 figures). Of Australian internet users, 62% purchased a good or service online in 2011. Selling British goods to Australia is an attractive proposition because of the strength of the dollar, the fact that Australian Goods and Services Tax (GST) isn’t charged on imported goods valued at or below A$1,000, and that UK products can be sold through the net without a VAT levy. In the past 24 months there has been a decline in the proportion of adult online shoppers mainly purchasing from Australian websites. The growth rate for international website sales grew by 40% in 2011, while domestic sales grew by only 25%. This indicates that Australians are becoming increasingly willing to purchase goods from international websites
NSW Hospital Building Programme $10 billion will be spent over the next 5 years on new and redeveloped hospital facilities. Projects and programs already underway: • Major hospital upgrades at Blacktown (due 2016), Campbelltown (2016), St George (2014), Hornsby (2016), Bega (2016), Dubbo (2014), Wagga Wagga (2017), Tamworth (2016), Lismore, Port Macquarie (2015) and Kempsey (2016). • Planning is underway for new hospitals in Byron Bay, Maitland and Sydney’s Northern Beaches to meet the future health demands of these regions. See attached for more details. First step is to contact Prue Tarmizi at Health Infrastructure NSW to get more details on each project, details of contractors and purchasing routes for the equipment required for each facility. A few other facilities on line in Victoria which could also add extra value to the programme. NDIS In the 2013-14 Budget the Federal Government announced that it will invest $14.3 billion over seven years to roll out DisabilityCare Australia, the national disability insurance scheme, across the whole country. Once the scheme is fully rolled out, it will provide support for around 460,000 people who have a significant and permanent disability that affects their communication, mobility, self-care or self-management. The funds will be spent on products and services to assist these people. No major one off $1 billion + contracts, but the opportunity for significant business.