Australia: Inward Investment Incentive Program

There is no specific inward investment program, but the Government is open to offer and may give a number of incentives depending on circumstances.

Companies establishing in Australia may be eligible for generous assistance in training, research & development, export market development, and in addition companies may be able to quickly depreciate plant and equipment.

The Australian Government offers a number of significant incentives to encourage companies to establish regional headquarters or support centres in Australia. These include:

• exclusive streamlined immigration procedures;
• wholesale sales tax exemption for selected used equipment (eg computers);
• tax deductibility of certain relocation expenses;
• assistance with obtaining information for site selection studies, facilitation of visit programs and introductions to key government agencies and professional service firms.

The Federal Government will consider the provision of investment incentives to strategic investment projects in limited and special circumstances where the project would generate significant net economic and employment benefits for Australia. Incentives could include grants, tax relief or the provision of infrastructure services. Incentives are considered by the Australian Government on a case by case basis using the following indicative criteria:

• the investment would not be likely to occur in Australia without the incentive;
• the investment provides significant net economic benefits through:
• substantial increase in employment;
• substantial business investment;
• significant boost to Australia's R&D capacity; or
• significant benefit to, or investment by other industries, either users or suppliers (cluster investment).

The investment should not involve substitution of existing production capacity which would provide an unfair advantage over competing projects, and it should complement Australia's areas of competitive advantage.

The incentives are open to foreign and domestic investors. The quantum of project specific assistance takes into consideration the availability of other assistance from the Commonwealth or State or Territory Governments. Any incentives given are consistent with Australia's international obligations.

Australia's State and Territory Governments also actively seek to encourage the location of productive investment projects and regional support operations within their respective borders and may offer a range of incentives which can be tailored to meet companies' specific requirements.