The global market for Business to Business (B2B) E-Commerce is growing rapidly and is expected to reach US$ 26.59 trillion by 2030, up from US$ 7.08 trillion in 2022. The Asia Pacific region is leading this growth, thanks to the rise of B2B sellers and the accelerated digital shift brought on by the Covid-19 pandemic.
Australia’s E-Commerce market is also experiencing rapid growth, with a predicted value of $32.3bn by 2024. Despite the global slowdown trend, Australia is still seeing opportunities as the 11th largest market for E-Commerce.
Businesses are investing in E-Commerce in Australia because it offers a valuable opportunity to generate more revenue streams. E-Commerce allows businesses to expand their global reach, tap into international markets, and increase revenue. One of the main advantages is that businesses can conduct transactions without maintaining a physical presence, which lowers logistics and customer support costs.
What are the requirements to sell online in Australia?
If you are running a business and intend to sell goods or services, having an Australian Business Number (ABN) is essential.
If your turnover is over $75,000, you will be required to register for Goods and Services Tax (GST).
If you are planning to obtain licenses for your product, it is crucial to consider obtaining approval from various government agencies, such as the Therapeutic Goods Administration (TGA), the Australian Pesticides and Veterinary Medicines Authority (APVMA), the Australian Industrial Chemicals Introduction Scheme (AICIS), as well as Food Standards Australia and New Zealand (FSANZ).
These government agencies regulate different industries and products to ensure their safety and effectiveness for human and animal use, and it is, therefore, important to comply with their requirements to ensure a successful licensing application.
Do I need to set up a company?
If your business has a permanent presence in Australia, such as a physical office, a website server hosted in Australia, or employees working in Australia, you will need to establish an Australian entity. Your Australian entity will be subject to various taxes, including corporate tax, goods and services tax, employment taxes, and insurance. It is mandatory to have a local director and public officer who is a resident of Australia. Moreover, you will also need to have a registered office in the country.
No company set up?
If you are selling goods and services online in Australia without having a permanent establishment, you need to have an Australian Business Number (ABN), a public officer, and an authorised contact who is a resident of Australia. The public officer will serve as the official point of contact and representative of your company in Australia. They will be responsible for ensuring that your company meets its taxation obligations and will be the primary contact with the Australian Taxation Office (ATO).
If your turnover is over $75,000, you must register for Goods and Services Tax (GST). However, if your turnover is under the threshold and you import goods, you may still be required to register for GST.
When importing goods into Australia, GST is applicable on importation. To clear the goods into Australia, your freight forwarder and customs broker will require a letter of authority signed by the public officer or authorised contact.
How Abdera helped a US company expand its E-Commerce business into Australia.
A US-based medical practice software company had an opportunity to expand its operations into Australia after a successful conference in the Asia Pacific. However, in order to operate in Australia, the company needed an ABN and registration for Goods and Services Tax (GST).
They required help with tax registration and operational compliance to meet the specialised medical software requirements of their clients. One of the crucial matters was the integration of their software into HICAPS which allowed the medical practice clients to process fast claims with Medicare and Private Australian Health Insurers.
Abdera played a crucial role in assisting the US client with their taxation obligations and operational compliance. Our team’s instrumental efforts ensured the successful execution of the integration of the medical practice software into HICAPS, which was critical for the client’s business expansion in Australia. Our team’s expertise and commitment to this matter proved to be invaluable in ensuring the success of the project.
If you’re exploring business opportunities in the E-Commerce sector, please contact us today to discover how we can support your business’s growth and success.