From tax obligations to registering as a business entity, this guide takes you through some of the first steps required if you are planning to move or expand your business from either New Zealand to Australia, or from Australia to New Zealand.
Moving from New Zealand to Australia
Registering a new business entity
When you decide to set up a company in Australia, or if you choose to trade under a different business name than your existing New Zealand business, you must register your company with the Australian Securities and Investments Commission (ASIC).
You can choose to register a business as a sole trader, partnership, company, or trust. When registering a company, you will need to have a company name and address, the company rules or constitution, the share structure and shareholders, and officeholders.
Once you register a business, you will be issued an 11-digit Australian Business Number, allowing you to register for a business name. A business name is the name that your business will operate under. You can check for available names on the business names register, and review the rules for acceptable business names here.
Once registered, you will also be able to apply for an Australian domain name.
Registering for a local domain name
If you choose to do business in Australia, with or without a physical presence, consider creating an Australian domain name (.com.au) to establish credibility and enhance your brand presence.
Many domain name suppliers can help set up a domain name for you, though keep in mind that domain names themselves are not free and often require annual registration with a domain registrar, and ongoing fees with a web hosting provider, who provide the technology and services to store and manage your website online.
It is also important to remember that registering a company or business name does not automatically entitle you to a matching domain name, so it is worth checking what is available before registering your business.
Registering for a domain name can increase your business’s credibility.
Business licences and permits
Business licences and permits are required for certain types of businesses before you start trading. They will either give you permission to perform an activity or help protect your business and employees.
The need for a licence or permit will vary depending on the type of business you are operating, and in which Australian state your business is located. If you suspect your business will need a licence or permit, the best place to start is the Australian Business Licence and Information Service. This service lists permits or licences required by the state or territory, as well as other local council requirements.
Register for Tax and GST
Australia has several tax requirements for businesses. As a non-resident business operating in Australia, you will only be taxed on income generated from Australian activities; however, if you have tax obligations in both New Zealand and Australia, you may face double taxation if not properly managed. Seek the advice of a qualified accountant who understands both Australian and New Zealand taxation to assist you in managing your obligations.
If your turnover in Australia exceeds AUD 75,000 per annum, you are also expected to register and pay the Goods and Services Tax (GST). GST is a broad-based tax of 10% on most goods, services, and other items that are sold or consumed in Australia. Most businesses will include GST in the price they charge for their goods and services.
Moving from Australia to New Zealand
Registering a new business entity
Unlike Australia, New Zealand has two company registers: one for local companies and one for overseas companies; however, through both, you will obtain a New Zealand Business Number (NZBN). The method of registration will depend on whether you intend to transfer your company’s incorporation to New Zealand, open a subsidiary, or open a brand.
- Overseas companies: If you intend to open a New Zealand branch without giving up your Australian incorporation, then you would use the Overseas Register. For this type of registration, a significant amount of information from ASIC can be easily absorbed, rather than having to provide records again.
- New Zealand companies: If you intend to transfer your incorporation to New Zealand or open a subsidiary company, you can register for a local company. In this instance, you will need to have at least one director resident in either New Zealand or Australia (if Australian, they must also be a director in Australia). Residential addresses are always checked, so it is important to take this seriously.
Registering for a local domain name
Professional companies with proper branding will generally want a local domain name. In New Zealand, local domain names typically end in .co.nz or .nz, and occasionally in .kiwi. As with Australia, there is a large range of domain name suppliers who can assist you in obtaining a New Zealand domain name. Tailoring your site to show specific options for New Zealanders can make customers feel more comfortable purchasing goods and services from your website.
Register for tax and GST
To register for tax in New Zealand, you need to obtain a tax number from the Inland Revenue Department (IRD). The financial year ends on 31 March, and corporate tax returns that are not linked to an agent must be filed by July 7.
GST in New Zealand is a broad-based tax of 15% that applies to most goods, services, and other items sold or consumed in New Zealand. If you are a non-resident with a business turnover of over NZD 60,000 a year, you are required to register for GST. Seek the advice of a qualified accountant who understands both Australian and New Zealand taxation to assist you in managing your obligations.
Other business considerations for both Australia and New Zealand
The above points are what you need to kick-start expanding your business in either Australia or New Zealand, but there are plenty of other considerations when getting started:
- Securing business insurance in New Zealand and Australia can help protect you, your employees, and your business.
- Establishing connections with local suppliers can help reduce expenditure.
- Understanding the local consumer market helps you tailor your business to suit their specific needs.
- Building rapport with the local community to enhance brand positioning.
