b'ESV 17Doing business in AustraliaAcquiring assets inYour employerAustralia obligationsAcquisitions of real estate or businesses of strategicAwards, agreements and contracts Workers compensation insuranceimportance to Australia require approval from theEmployee awards provide enforceable minimumAll employers must have a valid workers compensation Foreign Investment Review Board (FIRB).employment standards such as minimum wages, types ofpolicy to insure themselves against compensation claims employment, flexible working arrangements, hours of work,for workplace injuries sustained by employees and certain rest breaks, leave, superannuation and procedures forcontractors. The premiums for this type of insurance vary Government approval Withholding taxes consultation, representation and dispute settlement. across industries.The FIRB examines proposals by foreign interests toWithholding tax must be deducted from interest, royaltiesEmployees may be involved in an enterprise bargaining undertake direct investment in Australia and makesand dividends (to the extent they are not fully franked) paidprocess to negotiate for an enterprise agreement, which recommendation to the Government in respect to thoseto non-residents. The liability for the withholding tax restsprovides for changes in the terms and conditions ofOccupational Health and Safety transactions. with the Australian entity (payer). Annual reports of itemsemployment that apply at a workplace. Written common(OH&S)All acquisitions of vacant land including residential realsubject to withholding tax are required to be lodged. law contracts of employment also set out wages and conditions for employees not covered by an award orWorkers compensation provides protection to workers estate, accommodation facilities, shares or units inPurchasers of real estate are required to withhold aand their employers in the event of a workplace-related Australian urban land corporations or trust estates andnon-final 12.5% withholding tax when dealing with non- agreement.injury. Broadly, under Occupation Health and Safety direct investments by foreign governments or theirresidents. This requirement applies to all commerciallegislation employers are obliged to provide a safe working agencies require approval, irrespective of the value or theproperty and for residential property valued at $750,000 orenvironment for employees. Failure to do so can result in nationality of the investor. more. Employee leave entitlementsfines and/or prosecution.Other acquisitions have thresholds at or above whichThe rates of withholding vary but are broadly as follows: Most workers are paid for public holidays, except for approval is required, depending on whether the investor iscontract workers and casual employees who are paid for hours worked. Other paid leave, for most workers except a US investor or non-US investor. ITEM TREATYNON-TREATY those mentioned above, should include annual or recreationForeign employeesCOUNTRY COUNTRY leave, sick leave and long service leave. It is important to check potential employees work rights Acquisition costs Interest 10% 10% to ensure that only people entitled to work in Australia are Transfers of property may be subject to stamp duty. TheDividends 0% or 0 - 15% 0% or 30% Superannuation legally employed.Royalty 5% - 15% 30% All immigration to Australia is controlled by the Federal rate and scope of stamp duty varies from jurisdiction butUnder Australian law employers are required to provide can add significantly to the acquisition price of assets,minimum superannuation at the current rate of 9.5% ofGovernment through the Department of Immigration particularly real estate. Double Tax Agreements (DTAs) ordinary time earnings (essentially gross salary).This isand Citizenship (DIAC). There are numerous work visas scheduled to increase to 10% from 1 July 2021. available, covering areas including employer sponsored Depending on the State or Territory in which the asset isAustralia has an extensive tax treaty network, coveringworkers, professional and other skilled migrants, travel for purchased, additional surcharges for non-residents mayEurope, the USA, Asia, and New Zealand. However, there are exclusions with respect to employeesa business related visit, travel to receive medical treatment apply. under 18 and work less than 30 hours per week, lowand travel for special activities such as professional, cultural Australia as ratified the Multilateral Instruments as part of Income derived from sources in Australia that is not subjectthe OECDs BEPS program impacting approximately half ofincome earners who earn below $450 per month,or social activities.to withholding tax is generally assessable and required toexisting DTAs. employees in Australia on certain visas or some inbound be declared in an annual income tax return. expats.Non-residents are generally not subject to tax onWhere payment of superannuation is required, payments capital gains made from the disposal of Australian assetsmust be made to a complying superannuation fund within except for direct and indirect holdings of real estate or28 days following the end of the relevant quarter.mining rights.'