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Business Opportunities: Startup Ecosystem in Australia


Australia ranks third in quality of life due to its high level of medical care and social programs, quality education, low unemployment and perfect conditions for travelers. Thus, many country visitors who arrive there are happy to use such convenient service as Hertz car hire at Sydney Airport, which allows to forget about any transport issues in Australia.

Speaking of the business sphere, it didn’t remain without the attention of the authorities: the country has a favorable climate for the development of entrepreneurship due to government initiatives. For example, last year the government provided $1.1 billion to stimulate innovations and support startups. Numerous grants are offered to developing projects - most often these are tax benefits and the provision of infrastructure services under special conditions. Technology startups that couldn’t reach profit during the reporting period are fully exempt from paying taxes. More successful startups that make a profit pay only 55% of mandatory taxes.


Business climate in Australia

There are really a lot of advantages for starting and promoting a business in Australia. Among the important advantages are the transparency of laws and the absence of untimely checks. This not only ensures the peace of mind of the entrepreneur and his team, but also simplifies the attraction of investments.

Australian startups don’t yet have many competitors, despite the rapid pace of economic development. The fact is that the Australian market is rather isolated due to geographical distance from other countries, and American companies are not very active in entering it. This gives Australian startups freedom of action: they can create local analogues of well-known world companies, without fear of fierce competition.

An important role in the development of the business climate in Australia is played by a low crime rate, and this is not only about crime in the country as a whole, but also about violations of corporate ethics.


Startup Visa in Australia

Startup visas in Australia were introduced as early as 1970. Now they are called Business Innovation (Provisional) Visa and are issued for a period of four years.

Such a visa gives its holder the opportunity to organize or develop an existing business in the country, to cross the Australian border an unlimited number of times during the term of the visa validity and bring family members there. Relatives have the right to live, study and work in Australia.

After the expiration of the temporary visa, the startuper may apply for a permanent visa of the same type - Business Innovation (Permanent) Visa, which means a permanent residence in Australia. This will require only the application from the state, which acted as the inviting party during the temporary visa.


Requirements for Startupers

The Australian government sets a number of mandatory requirements for the applicants for a start-up visa. The applicant must be no older than 55, have no criminal record or debts to Australia. Also, it’s necessary to pass a medical examination and the Points Test, gaining at least 65 points.

The points in the test are awarded in accordance with the following categories: age, knowledge of English, professional and academic achievements, managerial experience, ownership of personal or business assets and innovative patents. A more detailed scheme of scoring can be found on the official website of DIBP.

In addition, there are requirements for the applicant as an entrepreneur. He should own more than 51% of the business featuring AUD 400,000 of turnover per year, more than 30% - with more than AUD 400,000 of annual a turnover, as well as over 10% if the shares of this company are publicly listed on stock exchanges.


Startup Investors in Australia

  • Innovyz

Innovyz is one of the most famous incubators in Australia, which supports projects in the field of innovative technologies. The incubator was created to help local entrepreneurs, but now startups from all over the world can apply for participation in the program. The selection of startups occurs once a year, the quota is 10 projects.

The standard incubator program lasts nine months, and for this period the entire team must move to Adelaide, where Innovyz headquarters is located.

  • AngelCube

AngelCube is a business accelerator in Melbourne that also specializes in technology projects. AngelCube provides a three-month acceleration program, including AUD 40,000 of investments at the seed stage, an office in Inspire9 co-working space, expert advice and access to additional benefits and services totaling AUD 150,000.

  • VentureCrowd

The Australian platform VentureCrowd is a crowdfunding service that introduces investors to startups. In order for information about a project to be placed on this resource, a startup must undergo an initial check, and receive an approval from one of the partners of the VentureCrowd platform or a government grant. The direction of the business project can be any. The platform’s operation scheme falls into the category of indirect investment: all investors' money is collected in a common fund, from where they are invested in the selected project. Platform commission is 5%.

Summing it up, Australia is a fertile ground for the implementation of innovative projects. It greatly contributes to the successful development of startups, providing grants, benefits, as well as special economic conditions. Moreover, the list of its investors suggests that this is a good basis for starting a business.

Business Daily Media