Economy Profile of Australia

Ease of Doing Business in Australia

Rankings on Doing Business topics – Australia

Topic Scores

Starting a Business

This topic measures the number of procedures, time, cost and paid-in minimum capital requirement for a small- to medium-sized limited liability company to start up and formally operate in each economy’s largest business city.

To make the data comparable across 190 economies, Doing Business uses a standardized business that is 100% domestically owned, has start-up capital equivalent to 10 times the income per capita, engages in general industrial or commercial activities and employs between 10 and 50 people one month after the commencement of operations, all of whom are domestic nationals. Starting a Business considers two types of local limited liability companies that are identical in all aspects, except that one company is owned by 5 married women and the other by 5 married men. The ranking of economies on the ease of starting a business is determined by sorting their scores for starting a business. These scores are the simple average of the scores for each of the component indicators.

The most recent round of data collection for the project was completed in May 2019. See the methodology for more information.

What the indicators measure

Procedures to legally start and formally operate a company (number)

Preregistration (for example, name verification or reservation, notarization)
Registration in the economy’s largest business city
Postregistration (for example, social security registration, company seal)
Obtaining approval from spouse to start a business or to leave the home to register the company
Obtaining any gender specific document for company registration and operation or national identification card

Time required to complete each procedure (calendar days)

Does not include time spent gathering information
Each procedure starts on a separate day (2 procedures cannot start on the same day)
Procedures fully completed online are recorded as ½ day
Procedure is considered completed once final document is received
No prior contact with officials

Cost required to complete each procedure (% of income per capita)

Official costs only, no bribes
No professional fees unless services required by law or commonly used in practice

Paid-in minimum capital (% of income per capita)

Funds deposited in a bank or with third party before registration or up to 3 months after incorporation

To make the data comparable across economies, several assumptions about the business and the procedures are used. It is assumed that any required information is readily available and that the entrepreneur will pay no bribes.

The business:

-Is a limited liability company (or its legal equivalent). If there is more than one type of limited liability company in the economy, the limited liability form most common among domestic firms is chosen. Information on the most common form is obtained from incorporation lawyers or the statistical office.

-Operates in the economy’s largest business city. For 11 economies the data are also collected for the second largest business city.

-Performs general industrial or commercial activities such as the production or sale to the public of goods or services. The business does not perform foreign trade activities and does not handle products subject to a special tax regime, for example, liquor or tobacco. It is not using heavily polluting production processes.

-Does not qualify for investment incentives or any special benefits.

-Is 100% domestically owned.

-Has five business owners, none of whom is a legal entity. One business owner holds 30% of the company shares, two owners have 20% of shares each, and two owners have 15% of shares each.

-Is managed by one local director.

-Has between 10 and 50 employees one month after the commencement of operations, all of them domestic nationals.

-Has start-up capital of 10 times income per capita.

-Has an estimated turnover of at least 100 times income per capita.

-Leases the commercial plant or offices and is not a proprietor of real estate.

-Has an annual lease for the office space equivalent to one income per capita.

-Is in an office space of approximately 929 square meters (10,000 square feet).

-Has a company deed that is 10 pages long.

The owners:

-Have reached the legal age of majority and are capable of making decisions as an adult. If there is no legal age of majority, they are assumed to be 30 years old.

-Are in good health and have no criminal record.

-Are married, the marriage is monogamous and registered with the authorities.

-Where the answer differs according to the legal system applicable to the woman or man in question (as may be the case in economies where there is legal plurality), the answer used will be the one that applies to the majority of the population.

Starting a Business – Australia

Figure – Starting a Business in Australia – Score

Figure – Starting a Business in Australia and comparator economies – Ranking and Score

Note: The ranking of economies on the ease of starting a business is determined by sorting their scores for starting a business. These scores are the simple average of the scores for each of the component indicators.

Figure – Starting a Business in Australia – Procedure, Time and Cost

* This symbol is shown beside procedure numbers that take place simultaneously with the previous procedure.

Note: Online procedures account for 0.5 days in the total time calculation. For economies that have a different procedure list for men and women, the graph shows the time for women. For more information on methodology, see the Doing Business website (https://doingbusiness.org/en/methodology). For details on the procedures reflected here, see the summary below.

Details – Starting a Business in Australia – Procedure, Time and Cost

Complete and lodge ASIC Form 201 “Application for Registration as an Australian Company"; Obtain a certificate of incorporation and an Australian company number (ACN) Agency : Australian Business Registration Service (BRS)

(""Application for Registration as an Australian Company"") and pay the prescribed fee.

Less than one day

(online procedure)

AUD 488

Any person to be appointed as a director or secretary of the company must have consented in writing to that appointment. Similarly, each shareholder of the company must have consented to become a shareholder.

At least 1 director (and, if the company has appointed secretaries, at least 1 secretary) must ordinarily reside in Australia. The registered office of the company must be an address in Australia.

The company may adopt its own constitution or rely upon the Replaceable Rules in the Corporations Act 2001.

Prior to lodging the application for registration, the applicant should confirm the availability of the proposed company name. If no name is specified, the company will simply be referred to by its Australian Company Number ("ACN").

Upon incorporation, ASIC will issue to the company a certificate of incorporation, which evidenced that the company has been incorporated on and from the date of issue.

Since June 2018, the Business Registration Service (BRS) has been available to the public which allows to register for Australian Company Number (ACN) and other services online. Beta-version of the platform was tested from April 2017, before the formal launch in June 2018. The majority of entrepreneurs are now using this platform for obtaining Australian Company Number (ACN).

2 Register for ABN with the Australian Taxation Office (ATO)

Agency : Australian Taxation Office

This procedure is required under the Income Tax Assessment Act 1936 and the New Tax System (Goods and Services Tax) Act of 1999.

Depending on the company's circumstances and location, it must comply with different taxation requirements:

If the annual company turnover is AUD$75,000 or more, the company must register for Goods and Services Tax (GST) by obtaining an 11-digit Australian Business Number (ABN). The annual company turnover represents its gross business income (not its profit). Companies with lower annual turnover may also choose to register for the Goods and Services Tax.
The application to ABN can be submitted electronically at the Business Entry Point, www.abr.gov.au. If the electronic submission is successful, the applicant will be provided with an ABN at the end of the Internet session. Alternatively, a hard copy application may be submitted to the ATO. The ATO will then mail the ABN within 28 days of receiving the application. A public officer must be appointed upon registration, to deal with the company's tax affairs.

-The company must deduct taxes from employee pay, provide payment summaries, contribute to employee superannuation and report and issue payments to the ATO. Companies may also register for Pay As You Go (PAYG) at www.abr.gov.au. Otherwise, they may register with the ATO by postal mail or phone or through a tax agent. State and territory taxes (e.g., stamp duty, payroll tax, and land tax) may also be imposed, with requirements differing according to company location.
Companies with annual turnover of AUD$75,000 or more must register for an ABN. Failure to do so will result in GST being levied on all company sales since the required date of registration even if the sale price of any goods or services has not been grossed up to include the tax. Furthermore, the company may incur penalties and interest charges for any overdue payments.
Further information in connection with ABN, GST and PAYG registration may be found on the ATO website (www.ato.gov.au).

Less than one day (online procedure)

no charge

3 Sign up for Worker Compensation Insurance at an insurance agency

Agency : State Insurance Regulatory Authority (SIRA)

The Workers Compensation Act of 1987 and the Workplace Injury Management and Workers Compensation Act of 1998 state that the worker compensation insurance is a compulsory requirement for employers in Australia. The premium rate is based on description of the company’s main business.

1 day

no charge

Insurance & Care NSW (icare) was created on September 1, 2015 to provide administration of workers compensation insurance services in NSW. Depending on the size of the business and type of main activity, there may be differences of how a policy is calculated. On February 28, 2017 icare launched an online platform service for workers insurance, where employers can get a quote and purchase a policy online. To get a quote online the following information is needed:

-General details about your business (eg. legal name, ABN, postal and operating addresses, and contact details).

-A start date for the policy

-The type of business

-Details of past workers compensation insurance

-The number of workers you employ

-An estimate of wages paid to workers.

More information is available at: https://www.icare.nsw.gov.au/employers/take-out-a-policy/workers-insurance-policies/

Takes place simultaneously with previous procedure.

Dealing with Construction Permits

This topic tracks the procedures, time and cost to build a warehouse—including obtaining necessary the licenses and permits, submitting all required notifications, requesting and receiving all necessary inspections and obtaining utility connections. In addition, the Dealing with Construction Permits indicator measures the building quality control index, evaluating the quality of building regulations, the strength of quality control and safety mechanisms, liability and insurance regimes, and professional certification requirements. The most recent round of data collection was completed in May 2019. See the methodology for more information

What the indicators measure

Procedures to legally build a warehouse (number)

Submitting all relevant documents and obtaining all necessary clearances, licenses, permits and certificates
Submitting all required notifications and receiving all necessary inspections
Obtaining utility connections for water and sewerage
Registering and selling the warehouse after its completion

Time required to complete each procedure (calendar days)

Does not include time spent gathering information
Each procedure starts on a separate day—though procedures that can be fully completed online are an exception to this rule
Procedure is considered completed once final document is received
No prior contact with officials

Cost required to complete each procedure (% of income per capita)

Official costs only, no bribes

Building quality control index (0-15)

Quality of building regulations (0-2)
Quality control before construction (0-1)
Quality control during construction (0-3)
Quality control after construction (0-3)
Liability and insurance regimes (0-2)
Professional certifications (0-4)

To make the data comparable across economies, several assumptions about the construction company, the warehouse project and the utility connections are used.

The construction company (BuildCo):

Is a limited liability company (or its legal equivalent) and operates in the economy’s largest business city. For 11 economies the data are also collected for the second largest business city.
Is 100% domestically and privately owned; has five owners, none of whom is a legal entity. Has a licensed architect and a licensed engineer, both registered with the local association of architects or engineers. BuildCo is not assumed to have any other employees who are technical or licensed experts, such as geological or topographical experts.
Owns the land on which the warehouse will be built and will sell the warehouse upon its completion.

The warehouse:

Will be used for general storage activities, such as storage of books or stationery.
Will have two stories, both above ground, with a total constructed area of approximately 1,300.6 square meters (14,000 square feet). Each floor will be 3 meters (9 feet, 10 inches) high and will be located on a land plot of approximately 929 square meters (10,000 square feet) that is 100% owned by BuildCo, and the warehouse is valued at 50 times income per capita.
Will have complete architectural and technical plans prepared by a licensed architect. If preparation of the plans requires such steps as obtaining further documentation or getting prior approvals from external agencies, these are counted as procedures.
Will take 30 weeks to construct (excluding all delays due to administrative and regulatory requirements).

The water and sewerage connections:

Will be 150 meters (492 feet) from the existing water source and sewer tap. If there is no water delivery infrastructure in the economy, a borehole will be dug. If there is no sewerage infrastructure, a septic tank in the smallest size available will be installed or built.
Will have an average water use of 662 liters (175 gallons) a day and an average wastewater flow of 568 liters (150 gallons) a day. Will have a peak water use of 1,325 liters (350 gallons) a day and a peak wastewater flow of 1,136 liters (300 gallons) a day.
Will have a constant level of water demand and wastewater flow throughout the year; will be 1 inch in diameter for the water connection and 4 inches in diameter for the sewerage connection.

Dealing with Construction Permits – Australia

Figure – Dealing with Construction Permits in Australia – Score

Figure – Dealing with Construction Permits in Australia and comparator economies – Ranking and Score

Note: The ranking of economies on the ease of dealing with construction permits is determined by sorting their scores for dealing with construction permits. These scores are the simple average of the scores for each of the component indicators.

Figure – Dealing with Construction Permits in Australia – Procedure, Time and Cost

* This symbol is shown beside procedure numbers that take place simultaneously with the previous procedure.

Figure – Dealing with Construction Permits in Australia and comparator economies – Measure of Quality

Details – Dealing with Construction Permits in Australia – Procedure, Time and Cost

1 Obtain a Site Survey/Analysis Plan

Agency : Private surveyor

One of the mandatory requirement to obtain a building permit is to submit a Site Survey/Analysis Plan .

2 Verify if a development application is required

Agency : Local Council

It is the responsibility of the applicant to contact a planner at the nearest Council Location before preparing a Development Application (DA), to check:

whether the proposed development is permissible;
whether a DA is required; and
how the City's planning instruments – plans, codes and policies – affect the proposed development.

BuildCo should ensure that the relevant planning controls have been identified and satisfied.

There are a range of planning instruments that apply to various types of development and locations within Sydney.

Most environmental and planning law in Australia varies from one Australian state to another. In Sydney, in the state of New South Wales, development will generally be assessed under one of the regimes in the Environmental Planning and Assessment Act 1979 (Planning Act).

The warehouse to be constructed by BuildCo is most likely to fall under Part 4 of the Planning Act and will most likely require development consent from the relevant local council. The Planning Act provides that, for certain types of development, the concurrence of an authority other than the consent authority must be obtained. The conditions for approval of development assessed under Part 4 may also require the developer to obtain further certificates or approvals. These will add cost and time.

The council's local environment plan (LEP) usually identifies whether development consent is required. The LEP categorizes development as requiring consent, not requiring consent, or prohibited. In most cases, the zoning of the site determines the types of development permitted on the land. Note that the construction of a warehouse is a type of development that almost always requires consent. If the development requires development consent, the local council will usually be the consent authority. However, in some cases, another authority (such as a State minister) may be the consent authority.

21 days AUD 4,000

3 File development application with consent authority Agency : Local Council	49 days	AUD 6,866
It is a legal requirement to submit digital copies of plans and the following supporting
documentation
– A4 plan for notification purposes (3 copies)
– Survey plan (7 copies + 3 A4 copies)
– Site plan (7 copies + 3 A4 copies)
– Floor plan (existing and proposed), elevation plan, section plan, shadow diagrams, subdivision
plan, landscaping plan (7 copies + 3 A4 copies each)
– Model
– Computer model
– Efficient use of resources commitment table (7 copies)
– green star rating
– Basix certiciate (2 copies)
– Design excellence map
– Exceptions to development standards (if applicable – 7 copies each)
– Statement of environmental effects (7 copies including 1 unbound copy)
– Erosion and sediment control plan (7 copies)
– Stormwater managemenet plan (7 copies)
– Waste management plan (7 copies including 1 unbound copy),
If the assessment is satisfactory, the consent authority will grant BuildCo development consent,
which may be subject to conditions. The Development Application will be advertised for
approximately 21 days to give the surrounding neighbors the opportunity to contest the planned
development in that area. Once the advertising period is over, it will typically take 6 weeks for the
development certificate to be issued.
4 Apply for a construction certificate : Sydney City Council	21 days	AUD 7,622
After a Development Consent has been issued by the Local Council and before any building work
is carried out, the owner must apply for and obtain a Construction Certificate. This certificate
states that building work may commence on an approved development, and complies with the
terms of the Development Consent and the Building Code of Australia. Construction Certificates
are either issued by Council, or independent accredited certifiers (PCA – Principle Certifying
Authorities). A Construction Certificate cannot be issued without obtaining prior development
consent for that development.
Items required include:
– Development consent compliance statement (5 copies)
– Plans (5 copies)
– Colored plans (5 copies)
– Survey plans (5 copies)
– Site plan (5 copies)
– Floor plan (5 copies)
– Elevation plan (5 copies)
– Section plan (5 copies)
– Specifications (2 copies)
– Fire safety measures schedule (5 copies)
– Home Building Act requirements
The PCA will also provide a list of mandatory inspections that need to be carried.
5 Apply for approval of building/development plans by Sydney Water Quick Check Agent Agency : Sydney Water	0.5 days	AUD 66
Before any construction work can be done, BuildCo must request connection and building plan
approvals, service plans and diagrams online using Sydney Water Tap In website or by visiting the
Sydney Water Quick Check Agent to verify that the proposed building work will not affect a Sydney
Water asset (water supply pipe and/or drainage pipe).
The documents that must be provided are:
A full set of building plans
A site plan to a recognized scale (e.g. 1:500) that shows the full site and the relationship of the
proposed building works to the full site (the location on the lot where the building works will take
place must be clearly identified) or submit dimensions using the online tool of the Sydney Water
Tap In website: https://www.sydneywater.com.au/tapin/index.htm

6 Notify Hill Shire City Council of Commencement of work and appoint Hill Shire City Council as PCA

: Hill Shire City Council

Under s 4.5 of the amended Environmental Planning and Assessment Act 1979, the council of the area in

which the development is to be carried out will be the consent authority. Build Co needs to notify the Hill

Shire City Council of the Council's appointment as the principal certifier (technically, their surveyors 'Hills

Certifiers' would be appointed), and of Build Co's intention to commence the erection of the building, no

1 day

no charge

This form is submitted only when the City of Sydney is retained as the Principal Certifying

Authority (PCA).

Receive the commencement of building work inspection

Receive final inspection by PCA and obtain the final occupation certificate (OC)

Agency : Hill Shire City Council

An occupation certificate is issued by the appointed Principal Certifying Authority (PCA) under the Environmental Planning and Assessment Act 1979 allowing a building to be used and occupied.

15 days

AUD 500

This certificate verifies that the PCA is satisfied that the building is suitable to be occupied and used according to the requirements of the Building Code of Australia (BCA). That Code sets required standards for the design and construction of various classes of building to protect health, safety and amenity.

There are two types of occupation certificates:

A final occupation certificate allows commencement of either the occupation or use of a new building (including alterations or extensions), or the new use of an existing building resulting from a change of its use
An interim occupation certificate allows the commencement of either the occupation or use of partially completed building, or of a new use of part of an existing building resulting from a change of use for the building

An occupation certificate is required for any new building work or change of use of a building that has a development consent or a complying development certificate under the EP&A Act.

Takes place simultaneously with previous procedure.

Details – Dealing with Construction Permits in Australia – Measure of Quality

	Answer	Score
Building quality control index (0-15)		14.0
Quality of building regulations index (0-2)		2.0
How accessible are building laws and regulations in your economy? (0-1)	Available online; Free of charge.	1.0
Which requirements for obtaining a building permit are clearly specified in the building regulations or on any accessible website, brochure or pamphlet? (0-1)	List of required documents; Fees to be paid; Required preapprovals.	1.0
Quality control before construction index (0-1)		1.0
Which third-party entities are required by law to verify that the building plans are in compliance with existing building regulations? (0-1)	Licensed architect; Licensed engineer; Private firm.	1.0
Quality control during construction index (0-3)		3.0
What types of inspections (if any) are required by law to be carried out during construction? (0-2)	Inspections by external engineer or firm; Inspections at various phases; Risk- based inspections.	2.0
Do legally mandated inspections occur in practice during construction? (0-1)	Mandatory inspections are always done in practice.	1.0
Quality control after construction index (0-3)		3.0
Is there a final inspection required by law to verify that the building was built in accordance with the approved plans and regulations? (0-2)	Yes, external engineer submits report for final inspection.	2.0
Do legally mandated final inspections occur in practice? (0-1)	Final inspection always occurs in practice.	1.0
Liability and insurance regimes index (0-2)		1.0
Which parties (if any) are held liable by law for structural flaws or problems in the building once it is in use (Latent Defect Liability or Decennial Liability)? (0-1)	Architect or engineer; Construction company.	1.0
Which parties (if any) are required by law to obtain an insurance policy to cover possible structural flaws or problems in the building once it is in use (Latent Defect Liability Insurance or Decennial Insurance)? (0-1)	No party is required by law to obtain insurance .	0.0
Professional certifications index (0-4)		4.0
What are the qualification requirements for the professional responsible for verifying that the architectural plans or drawings are in compliance with existing building regulations? (0-2)	Minimum number of years of experience; University degree in architecture or engineering; Being a registered architect or engineer; Passing a certification exam.	2.0
What are the qualification requirements for the professional who supervises the construction on the ground? (0- 2)	Minimum number of years of experience; University degree in engineering, construction or construction management; Being a registered architect or engineer.	2.0

Getting Electricity

This topic measures the procedures, time and cost required for a business to obtain a permanent electricity connection for a newly constructed warehouse. Additionally, the reliability of supply and transparency of tariffs index measures reliability of supply, transparency of tariffs and the price of electricity. The most recent round of data collection for the project was completed in May 2019. See the methodology for more information.

What the indicators measure

Procedures to obtain an electricity connection (number)

Submitting all relevant documents and obtaining all necessary clearances and permits
Completing all required notifications and receiving all necessary inspections
Obtaining external installation works and possibly purchasing material for these works
Concluding any necessary supply contract and obtaining final supply

Time required to complete each procedure (calendar days)

Is at least 1 calendar day
Each procedure starts on a separate day
Does not include time spent gathering information
Reflects the time spent in practice, with little follow-up and no prior contact with officials

Cost required to complete each procedure (% of income per capita)

Official costs only, no bribes
Value added tax excluded

The reliability of supply and transparency of tariffs index (0-8)

Duration and frequency of power outages (0–3)
Tools to monitor power outages (0–1)
Tools to restore power supply (0–1)
Regulatory monitoring of utilities’ performance (0–1)
Financial deterrents limiting outages (0–1)
Transparency and accessibility of tariffs (0–1)

To make the data comparable across economies, several assumptions about the warehouse, the electricity connection and the monthly consumption are used.

The warehouse:

Is owned by a local entrepreneur and is used for storage of goods.
Is located in the economy’s largest business city. For 11 economies the data are also collected for the second largest business city.
Is located in an area where similar warehouses are typically located and is in an area with no physical constraints. For example, the property is not near a railway.
Is a new construction and is being connected to electricity for the first time.
Has two stories with a total surface area of approximately 1,300.6 square meters (14,000 square feet). The plot of land on which it is built is 929 square meters (10,000 square feet).

The electricity connection:

Is a permanent one with a three-phase, four-wire Y connection with a subscribed capacity of 140- kilo-volt-ampere (kVA) with a power factor of 1, when 1 kVA = 1 kilowatt (kW).
Has a length of 150 meters. The connection is to either the low- or medium-voltage distribution network and is either overhead or underground, whichever is more common in the area where the warehouse is located and requires works that involve the crossing of a 10-meter road (such as by excavation or overhead lines) but are all carried out on public land. There is no crossing of other owners’ private property because the warehouse has access to a road.
Does not require work to install the internal wiring of the warehouse. This has already been completed up to and including the customer’s service panel or switchboard and the meter base.

The monthly consumption:

It is assumed that the warehouse operates 30 days a month from 9:00 a.m. to 5:00 p.m. (8 hours a day), with equipment utilized at 80% of capacity on average and that there are no electricity cuts (assumed for simplicity reasons) and the monthly energy consumption is 26,880 kilowatt-hours (kWh); hourly consumption is 112 kWh.
If multiple electricity suppliers exist, the warehouse is served by the cheapest supplier.
Tariffs effective in January of the current year are used for calculation of the price of electricity for the warehouse. Although January has 31 days, for calculation purposes only 30 days are used.

Price of electricity (cents per kilowatt-hour)*

Price based on monthly bill for commercial warehouse in case study

*Note: Doing Business measures the price of electricity, but it is not included in the ease of doing business score nor in the ranking on the ease of getting electricity.

Getting Electricity – Australia

Figure – Getting Electricity in Australia – Score

Figure – Getting Electricity in Australia and comparator economies – Ranking and Score

Note: The ranking of economies on the ease of getting electricity is determined by sorting their scores for getting electricity. These scores are the simple average of the scores for all the component indicators except the price of electricity.

Figure – Getting Electricity in Australia – Procedure, Time and Cost

* This symbol is shown beside procedure numbers that take place simultaneously with the previous procedure.

reflected here, see the summary below.

Figure – Getting Electricity in Australia and comparator economies – Measure of Quality

Details – Getting Electricity in Australia – Procedure, Time and Cost

1 Submit application to Ausgrid, receive job number and estimate and make payment

Agency : Ausgrid

The connection application can be obtained and submitted via website, email or fax. The majority of interaction by contractors and service providers is undertaken via email or the website.

Premises Connection Requirements are detailed in the "ES1" document. This document also

includes an application for CT metering for use where required.

52 calendar days

AUD 275

There is a range of information required on the connection application form relating to details of the connection customer, the intended load to be connected, the intended point of connection and details of the electrical contractor / customer's representative.

Ausgrid will assess the electrical load to be connected. In this instance, a load above 100Amps per phase connected directly to the street network, Ausgrid will issue a "Basic Connection Offer – over 100Amps" (a connection contract) within 10 business days which details the conditions under which Ausgrid will permit the connection and the range of Ausgrid fees that are likely to apply associated with making the connection. The connection applicant has 45 business days to accept the connection offer.

Once the connection offer is accepted (includes acceptance of Ausgrid gees), Ausgrid will provided a "Job Number" which enables the Accredited Service Provider (ASP) to obtain an energy meter from Ausgrid. An NMI number (National Market Identifier) will also be provided for use by the applicant when entering into a contract with an energy retailer for the supply of electricity. It is not normally advisable to commence work until the connection offer has been issued / accepted and job number / NMI issued.

Hire accredited service provider to carry out external works

Agency : Accredited Service Provider

The customer engages a private Accredited Service Provider (ASP). The ASP does all the connection works from the network to the point of attachment to the premises (consumer's terminals), including installing the energy meter. Once completed, the ASP submits a Notification of Service Work (NOSW) detailing the connection works undertaken.

11 calendar days AUD 5,152.9

Submit CT Metering form to utility

Agency : Ausgrid

Service requiring metering of supplies above 100amps needs to submit the CT Metering Application form prior to energizing any new services.

The form is used to capture data that is unique to the CT installation site such as

the retailer
customer’s details
electrical contractor
metering provider
ALL existing metering to be removed

As the information must be confirmed prior to the energisation of the site and may take up to ten days to process, to avoid delay, it is suggested that the details in CT Metering Application form be submitted as soon as possible.

Prior submission of a completed CT Metering form is necessary to enable energisation of the installation.

1 calendar day AUD 0

Submit CCEW to Ausgrid so they can undertake an audit inspection of electrical installation.

Agency : Ausgrid

The Electrical Contractor undertaking the electrical installation work associated with the premises submits a Certificate of Compliance Electrical Work (CCEW) to the electricity utility once the work is completed. The utility will undertake an audit inspection of electrical installation.

7 calendar days AUD 0

Obtain meter installation by meter provider and receive electricity flow

Agency : Meter provider

The customer requests Ausgrid (or an Accredited Service Provider) to install the meter. Meter may be installed at the same time than the internal/external installation inspection (but not necessarily). At the completion of the installation inspection the service is energized and electricity starts flowing.

Takes place simultaneously with previous procedure.

4 calendar days AUD 3,221

Details – Getting Electricity in Australia – Measure of Quality

Note:

If the duration and frequency of outages is 100 or less, the economy is eligible to score on the Reliability of supply and transparency of tariff index. If the duration and frequency of outages is not available, or is over 100, the economy is not eligible to score on the index.

If the minimum outage time considered for SAIDI/SAIFI is over 5 minutes, the economy is not eligible to score on the index.

Registering Property

This topic examines the steps, time and cost involved in registering property, assuming a standardized case of an entrepreneur who wants to purchase land and a building that is already registered and free of title dispute. In addition, the topic also measures the quality of the land administration system in each economy. The quality of land administration index has five dimensions: reliability of infrastructure, transparency of information, geographic coverage, land dispute resolution, and equal access to property rights. The most recent round of data collection for the project was completed in May 2019. See the methodology for more information.

What the indicators measure

Procedures to legally transfer title on immovable property (number)

Preregistration procedures (for example, checking for liens, notarizing sales agreement, paying property transfer taxes)
Registration procedures in the economy's largest business city.
Postregistration procedures (for example, filling title with municipality)

Time required to complete each procedure (calendar days)

Does not include time spent gathering information
Each procedure starts on a separate day – though procedures that can be fully completed online are an exception to this rule
Procedure is considered completed once final document is received
No prior contact with officials

Cost required to complete each procedure (% of property value)

Official costs only (such as administrative fees, duties and taxes).
Value Added Tax, Capital Gains Tax and illicit payments are excluded

Quality of land administration index (0-30)

Reliability of infrastructure index (0-8)
Transparency of information index (0–6)
Geographic coverage index (0–8)
Land dispute resolution index (0–8)
Equal access to property rights index (-2–0)

To make the data comparable across economies, several assumptions about the parties to the transaction, the property and the procedures are used.

The parties (buyer and seller):

Are limited liability companies (or the legal equivalent).
Are located in the periurban (that is, on the outskirts of the city but still within its official limits) area of the economy’s largest business city. For 11 economies the data are also collected for the second largest business city.
Are 100% domestically and privately owned.
Perform general commercial activities.

The property (fully owned by the seller):

Has a value of 50 times income per capita, which equals the sale price.
Is fully owned by the seller.
Has no mortgages attached and has been under the same ownership for the past 10 years.
Is registered in the land registry or cadastre, or both, and is free of title disputes.
Is located in a periurban commercial zone (that is, on the outskirts of the city but still within its official limits), and no rezoning is required.
Consists of land and a building. The land area is 557.4 square meters (6,000 square feet). A two- story warehouse of 929 square meters (10,000 square feet) is located on the land. The warehouse is 10 years old, is in good condition, has no heating system and complies with all safety standards, building codes and legal requirements. The property, consisting of land and building, will be transferred in its entirety.
Will not be subject to renovations or additional construction following the purchase.
Has no trees, natural water sources, natural reserves or historical monuments of any kind.
Will not be used for special purposes, and no special permits, such as for residential use, industrial plants, waste storage or certain types of agricultural activities, are required.
Has no occupants, and no other party holds a legal interest in it.

Registering Property – Australia

Indicator	Australia	OECD high income	Best Regulatory Performance
Procedures (number)	4	4.7	1 (5 Economies)
Time (days)	4.5	23.6	1 (2 Economies)
Cost (% of property value)	5.4	4.2	0.0 (Saudi Arabia)
Quality of the land administration index (0-30)	19.5	23.2	None in 2018/19

Figure – Registering Property in Australia – Score

Figure – Registering Property in Australia and comparator economies – Ranking and Score

Note: The ranking of economies on the ease of registering property is determined by sorting their scores for registering property. These scores are the simple average of the scores for each of the component indicators.

Figure – Registering Property in Australia – Procedure, Time and Cost

* This symbol is shown beside procedure numbers that take place simultaneously with the previous procedure.

Figure – Registering Property in Australia and comparator economies – Measure of Quality

Details – Registering Property in Australia – Procedure, Time and Cost

2 Obtain a title search certificate through the information broker

Agency : Information broker

According to the Conveyancing Act 1919 and the Conveyancing (Sale of Land) Regulation 2017, the seller is responsible for obtaining a title search certificate, a copy of any easement or covenant registered on title, a deposited plan and a land rates clearance certificate from the NSW Land Registry Services. The seller also obtains a sewage service diagram from the local water authority.

If the seller or the seller's solicitor is doing the process online, they must use an approved information broker.

Less than one day, online

AUD 130.19; (Through information brokers

A title search for the property located in Sydney: AUD 24.50

A copy of any easement or covenant on the title: AUD 25.30

A deposited plan of the property: AUD 25.70 Land rate clearance certificate: AUD 27.55 Sewer service diagram: AUD 35.14

Water rate clearance certificate (Section 66

Obtain an assessment for the stamp duty

Agency : Revenue NSW

To obtain an assessment of the stamp duty, Electronic Duties Returns (EDR) is used to electronically assess and endorse a range of duties transactions. Client service providers of the Revenue NSW provide the solicitor with access to the online EDR. A client service provider’s website is used for this assessment.

Less than one day,

online

AUD 4; (Client Service Provider's service fee to access the online EDR: AUD 4 (the fee differs by

CSPs))

After the solicitor fills the information in the online EDR, a Duties Notice of Assessment will be issued with the stamping reference number with the total tax payable and the due date for payment, and instantly sent to the solicitor by email. The reference number is used to make the payment, generally at the time of an electronic lodgment. The buyer’s solicitor retains the original

buyer’s declaration and supporting documents on behalf of the Revenue NSW.

certificate): AUD 31.40)

Lodge the property transfer electronically

Agency : NSW Land Registry Services (Concessionary for Office of the Registrar General)

After July 1, 2018, the transfer must be lodged electronically via an Electronic Lodgment Network (ELN), under the Conveyancing Rules. Property Exchange Australia (PEXA) is the only ELN operating in NSW as of May 2019.

2 days

AUD 191,383.14; (AUD

129.10 for registering property transfer at NSW Land Registry Services

To conduct the electronic lodgment, each seller and buyer must use the service of a certified

solicitor or conveyancer.

AUD121.50 for the

electronic lodgement by PEXA

The solicitor prepares and reviews a contract for sales for the seller. The seller provides evidence to establish their right to deal in the land and the buyer provides the solicitor with details to enable them to complete the Electronic Notice of Sale (ENOS).

The parties physically sign Client Authorisation Forms (CAF) and undertake Verification of Identity (VOI) to provide the solicitor with the authority for the electronic lodgment.

The seller’s and buyer’s solicitors fill the necessary information online within a digital ‘workspace’ in the PEXA system. The buyer’s solicitor completes an electronic transfer form and Electronic notice of sale ENOS.

The stamping reference number obtained from the Revenue NSW will be required for the PEXA workspace to make the payment of the stamp duty.

Once the dealing is submitted, the registration will be completed almost immediately. A paper certificate of the new title will be issued to the new owner by postal delivery within two to three working days.

Stamp duty, according to the following schedule of tariffs :

Below AUD 14,000, the fee is 1.25% of property value of property Between AUD 14,001 and AUD 30,000, the fee is

AUD 175 + 1.5% of excess

over AUD 14,000 Between AUD 30,001 and AUD 80,000, the fee is AUD 415 + 1.75% of

excess over AUD 30,000 Between AUD 80,001 and AUD 300,000, the fee is AUD 1,290 + 3.5% of

excess over AUD 80,000 Between AUD 300,001 and 1,000,000, the fee is AUD 8,990 + 4.5% of

excess over AUD 300,000 Between AUD 1,000,001 – 3,000,000, the fee is AUD 40,490 + 5.5% of excess

over AUD 1,000,000

Over 3,000,000, the fee is AUD 150,490.00 + 7% of

excess over AUD

3,000,000

Transfers also incur fixed

stamp duty costs AUD 20.)

Takes place simultaneously with previous procedure.

Details – Registering Property in Australia – Measure of Quality

	Answer	Score
Quality of the land administration index (0-30)		19.5
Reliability of infrastructure index (0-8)		7.0
Type of land registration system in the economy:	Torrens System
What is the institution in charge of immovable property registration?	NSW Land Registry Services
In what format are past and newly issued land records kept at the immovable property registry of the largest business city of the economy —in a paper format or in a computerized format (scanned or fully digital)?	Computer/Scanned	1.0
Is there a comprehensive and functional electronic database for checking for encumbrances (liens, mortgages, restrictions and the like)?	Yes	1.0
Institution in charge of the plans showing legal boundaries in the largest business city:	Spatial Services (New South Wales)
In what format are past and newly issued cadastral plans kept at the mapping agency of the largest business city of the economy—in a paper format or in a computerized format (scanned or fully digital)?	Computer/Fully digital	2.0
Is there an electronic database for recording boundaries, checking plans and providing cadastral information (geographic information system)?	Yes	1.0
Is the information recorded by the immovable property registration agency and the cadastral or mapping agency kept in a single database, in different but linked databases or in separate databases?	Different databases but linked	1.0
Do the immovable property registration agency and cadastral or mapping agency use the same identification number for properties?	Yes	1.0
Transparency of information index (0–6)		3.0
Who is able to obtain information on land ownership at the agency in charge of immovable property registration in the largest business city?	Anyone who pays the official fee	1.0
Is the list of documents that are required to complete any type of property transaction made publicly available– and if so, how?	Yes, online	0.5
Link for online access:	https://www.nswlrs.co m.au/forms/land_title _dealing_forms https://rg- guidelines.nswlrs.co m.au/land_dealings/d ealing_requirements/t ransfers/transfer
Is the applicable fee schedule for any type of property transaction at the agency in charge of immovable property registration in the largest business city made publicly available–and if so, how?	Yes, online	0.5
Link for online access:	https://www.nswlrs.co m.au/Fees
Does the agency in charge of immovable property registration agency formally commit to deliver a legally binding document that proves property ownership within a specific timeframe –and if so, how does it communicate the service standard?	No	0.0
Link for online access:
Is there a speciﬁc and independent mechanism for filing complaints about a problem that occurred at the agency in charge of immovable property registration?	No	0.0
Contact information:
Are there publicly available official statistics tracking the number of transactions at the immovable property registration agency?	No	0.0
Number of property transfers in the largest business city in 2018:
Who is able to consult maps of land plots in the largest business city?	Anyone who pays the official fee	0.5
Is the applicable fee schedule for accessing maps of land plots made publicly available—and if so, how?	Yes, online	0.5

Link for online access:	https://six.nsw.gov.au/ etopo https://www.nswlrs.co m.au/Fees
Does the cadastral/mapping agency formally specifies the timeframe to deliver an updated cadastral plan—and if so, how does it communicate the service standard?	No	0.0
Link for online access:
Is there a speciﬁc and independent mechanism for filing complaints about a problem that occurred at the cadastral or mapping agency?	No	0.0
Contact information:
Geographic coverage index (0–8)		4.0
Are all privately held land plots in the largest business city formally registered at the immovable property registry?	Yes	2.0
Are all privately held land plots in the economy formally registered at the immovable property registry?	No	0.0
Are all privately held land plots in the largest business city mapped?	Yes	2.0
Are all privately held land plots in the economy mapped?	No	0.0
Land dispute resolution index (0–8)		5.5
Does the law require that all property sale transactions be registered at the immovable property registry to make them opposable to third parties?	Yes	1.5
Legal basis:	Real Property Act 1900 – section 41
Is the system of immovable property registration subject to a state or private guarantee?	Yes	0.5
Type of guarantee:	State guarantee
Legal basis:	Real Property Act 1900 – section 42
Is there a is a speciﬁc, out-of-court compensation mechanism to cover for losses incurred by parties who engaged in good faith in a property transaction based on erroneous information certified by the immovable property registry?	Yes	0.5
Legal basis:	Real Property Act 1900 section 129
Does the legal system require a control of legality of the documents necessary for a property transaction (e.g., checking the compliance of contracts with requirements of the law)?	Yes	0.5
If yes, who is responsible for checking the legality of the documents?	Registrar; Lawyer;
Does the legal system require verification of the identity of the parties to a property transaction?	Yes	0.5
If yes, who is responsible for verifying the identity of the parties?	Registrar; Lawyer;
Is there a national database to verify the accuracy of government issued identity documents?	No	0.0
What is the Court of first instance in charge of a case involving a standard land dispute between two local businesses over tenure rights for a property worth 50 times gross national income (GNI) per capita and located in the largest business city?	Supreme Court of New South Wales
How long does it take on average to obtain a decision from the first-instance court for such a case (without appeal)?	Between 1 and 2 years	2.0
Are there publicly available statistics on the number of land disputes at the economy level in the ﬁrst instance court?	No	0.0
Number of land disputes in the economy in 2018:
Equal access to property rights index (-2–0)		0.0
Do unmarried men and unmarried women have equal ownership rights to property?	Yes
Do married men and married women have equal ownership rights to property?	Yes	0.0

Getting Credit

This topic explores two sets of issues—the strength of credit reporting systems and the effectiveness of collateral and bankruptcy laws in facilitating lending. The most recent round of data collection for the project was completed in May 2019. See the methodology for more information.

What the indicators measure

Strength of legal rights index (0–12)

Rights of borrowers and lenders through collateral laws (0-10)
Protection of secured creditors’ rights through bankruptcy laws (0-2)

Depth of credit information index (0–8)

Scope and accessibility of credit information distributed by credit bureaus and credit registries (0-8)

Credit bureau coverage (% of adults)

Number of individuals and firms listed in largest credit bureau as a percentage of adult population

Credit registry coverage (% of adults)

Number of individuals and firms listed in credit registry as a percentage of adult population

Doing Business assesses the sharing of credit information and the legal rights of borrowers and lenders with respect to secured transactions through 2 sets of indicators. The depth of credit information index measures rules and practices affecting the coverage, scope and accessibility of credit information available through a credit registry or a credit bureau. The strength of legal rights index measures the degree to which collateral and bankruptcy laws protect the rights of borrowers and lenders and thus facilitate lending. For each economy it is first determined whether a unitary secured transactions system exists. Then two case scenarios, case A and case B, are used to determine how a nonpossessory security interest is created, publicized and enforced according to the law. Special emphasis is given to how the collateral registry operates (if registration of security interests is possible). The case scenarios involve a secured borrower, company ABC, and a secured lender, BizBank.

In some economies the legal framework for secured transactions will allow only case A or case B (not both) to apply. Both cases examine the same set of legal provisions relating to the use of movable collateral.

Several assumptions about the secured borrower (ABC) and lender (BizBank) are used:

ABC is a domestic limited liability company (or its legal equivalent).
ABC has up to 50 employees.
ABC has its headquarters and only base of operations in the economy’s largest business city. For 11 economies the data are also collected for the second largest business city.
Both ABC and BizBank are 100% domestically owned.

The case scenarios also involve assumptions. In case A, as collateral for the loan, ABC grants BizBank a nonpossessory security interest in one category of movable assets, for example, its machinery or its inventory. ABC wants to keep both possession and ownership of the collateral. In economies where the law does not allow nonpossessory security interests in movable property, ABC and BizBank use a fiduciary transfer-of-title arrangement (or a similar substitute for nonpossessory security interests).

In case B, ABC grants BizBank a business charge, enterprise charge, floating charge or any charge that gives BizBank a security interest over ABC’s combined movable assets (or as much of ABC’s movable assets as possible). ABC keeps ownership and possession of the assets.

Getting Credit – Australia

Indicator	Australia	OECD high income	Best Regulatory Performance
Strength of legal rights index (0-12)	11	6.1	12 (5 Economies)
Depth of credit information index (0-8)	8	6.8	8 (53 Economies)
Credit registry coverage (% of adults)	0.0	24.4	100.0 (2 Economies)
Credit bureau coverage (% of adults)	100.0	66.7	100.0 (14 Economies)

Figure – Getting Credit in Australia – Score

Figure – Getting Credit in Australia and comparator economies – Ranking and Score

Note: The ranking of economies on the ease of getting credit is determined by sorting their scores for getting credit. These scores are the sum of the scores for the strength of legal rights index and the depth of credit information index.

Figure – Legal Rights in Australia and comparator economies

Details – Legal Rights in Australia

Figure – Credit Information in Australia and comparator economies

Details – Credit Information in Australia

Note: An economy receives a score of 1 if there is a "yes" to either bureau or registry. If the credit bureau or registry is not operational or covers less than 5% of the adult population, the total score on the depth of credit information index is 0.

Coverage	Credit bureau	Credit registry
Number of individuals	22,000,000	0
Number of firms	5,750,000	0
Total	27,750,000	0
Percentage of adult population	100.0	0.0

Protecting Minority Investors

This topic measures the strength of minority shareholder protections against misuse of corporate assets by directors for their personal gain as well as shareholder rights, governance safeguards and corporate transparency requirements that reduce the risk of abuse. The most recent round of data collection for the project was completed in May 2019. See the methodology for more information.

What the indicators measure

Extent of disclosure index (0–10): Disclosure, review, and approval requirements for related-party transactions
Extent of director liability index (0–10): Ability of minority shareholders to sue and hold interested directors liable for prejudicial related-party transactions; Available legal

remedies (damages, disgorgement of profits, disqualification from managerial position(s) for one year or more, rescission of the transaction)
Ease of shareholder suits index (0–10): Access to internal corporate documents; Evidence obtainable during trial and allocation of legal expenses
Extent of conflict of interest regulation index (0-30): Sum of the extent of disclosure, extent of director liability and ease of shareholder suits indices
Extent of shareholder rights index (0-6): Shareholders’ rights and role in major corporate decisions
Extent of ownership and control index (0-7): Governance safeguards protecting shareholders from undue board control and entrenchment
Extent of corporate transparency index (0-7): Corporate transparency on ownership stakes, compensation, audits and financial prospects
Extent of shareholder governance index (0–20): Sum of the extent of shareholders rights, extent of ownership and control and extent of corporate transparency indices
Strength of minority investor protection index (0–50): Sum of the extent of conflict of interest regulation and extent of shareholder governance indices

To make the data comparable across economies, a case study uses several assumptions about the business and the transaction.

The business (Buyer):

Is a publicly traded corporation listed on the economy’s most important stock exchange.
Has a board of directors and a chief executive officer (CEO) who may legally act on behalf of Buyer where permitted, even if this is not speciﬁcally required by law.
Has a supervisory board in economies with a two-tier board system on which Mr. James appointed 60% of the shareholder-elected members.
Has not adopted bylaws or articles of association that go beyond the minimum requirements. Does not follow codes, principles, recommendations or guidelines that are not mandatory.
Is a manufacturing company with its own distribution network.

The transaction involves the following details:

Mr. James owns 60% of Buyer, sits on Buyer’s board of directors and elected two directors to Buyer’s ﬁve-member board.
Mr. James also owns 90% of Seller, a company that operates a chain of retail hardware stores. Seller recently closed a large number of its stores.
Mr. James proposes that Buyer purchase Seller’s unused ﬂeet of trucks to expand Buyer’s distribution of its food products, a proposal to which Buyer agrees. The price is equal to 10% of Buyer’s assets and is higher than the market value.
The proposed transaction is part of the company’s principal activity and is not outside the authority of the company.
Buyer enters into the transaction. All required approvals are obtained, and all required disclosures made—that is, the transaction was not entered into fraudulently.
The transaction causes damages to Buyer. Shareholders sue Mr. James and the executives and directors that approved the transaction.

Protecting Minority Investors – Australia

Indicator	Australia	OECD high income	Best Regulatory Performance
Extent of disclosure index (0-10)	8.0	6.5	10 (13 Economies)
Extent of director liability index (0-10)	2.0	5.3	10 (3 Economies)
Ease of shareholder suits index (0-10)	8.0	7.3	10 (Djibouti)
Extent of shareholder rights index (0-6)	4.0	4.7	6 (19 Economies)
Extent of ownership and control index (0-7)	3.0	4.5	7 (9 Economies)
Extent of corporate transparency index (0-7)	7.0	5.7	7 (13 Economies)

Figure – Protecting Minority in Australia – Score

Figure – Protecting Minority Investors in Australia and comparator economies – Ranking and Score

DB 2020 Protecting Minority Investors Score

Note: The ranking of economies on the strength of minority investor protections is determined by sorting their scores for protecting minority investors. These scores are the simple average of the scores for the extent of conﬂict of interest regulation index and the extent of shareholder governance index.

Figure – Protecting Minority Investors in Australia and comparator economies – Measure of Quality

Paying Taxes

This topic records the taxes and mandatory contributions that a medium-size company must pay or withhold in a given year, as well as the administrative burden of paying taxes and contributions and complying with postfiling procedures (VAT refund and tax audit). The most recent round of data collection for the project was completed in May 2019 covering for the Paying Taxes indicator calendar year 2018 (January 1, 2018 – December 31, 2018). See the methodology for more information.

What the indicators measure

Tax payments for a manufacturing company in 2018 (number per year adjusted for electronic and joint filing and payment)

Total number of taxes and contributions paid or withheld, including consumption taxes (value added tax, sales tax or goods and service tax)
Method and frequency of filing and payment

Time required to comply with 3 major taxes (hours per year)

Collecting information, computing tax payable
Preparing separate tax accounting books, if required
Completing tax return, filing with agencies
Arranging payment or withholding

Total tax and contribution rate (% of commercial profits)

Profit or corporate income tax
Social contributions, labor taxes paid by employer
Property and property transfer taxes
Dividend, capital gains, financial transactions taxes
Waste collection, vehicle, road and other taxes

Postfiling Index

Time to comply with VAT refund (hours)
Time to obtain VAT refund (weeks)
Time to comply with a corporate income tax correction (hours)
Time to complete a corporate income tax correction (weeks)

Using a case scenario, Doing Business records taxes and mandatory contributions a medium size company must pay in a year, and measures the administrative burden of paying taxes, contributions and dealing with postfiling processes. Information is also compiled on frequency of filing and payments, time taken to comply with tax laws, time taken to comply with the requirements of postfiling processes and time waiting.

To make data comparable across economies, several assumptions are used:

TaxpayerCo is a medium-size business that started operations on January 1, 2017. It produces ceramic flowerpots and sells them at retail. All taxes and contributions recorded are paid in the second year of operation (calendar year 2018). Taxes and mandatory contributions are measured at all levels of government.

The VAT refund process:

In June 2018, TaxpayerCo. makes a large capital purchase: the value of the machine is 65 times income per capita of the economy. Sales are equally spread per month (1,050 times income per capita divided by 12) and cost of goods sold are equally expensed per month (875 times income per capita divided by 12). The machinery seller is registered for VAT and excess input VAT incurred in June will be fully recovered after four consecutive months if the VAT rate is the same for inputs, sales and the machine and the tax reporting period is every month. Input VAT will exceed Output VAT in June 2018.

The corporate income tax audit process:
An error in calculation of income tax liability (for example, use of incorrect tax depreciation rates, or incorrectly treating an expense as tax deductible) leads to an incorrect income tax return and a corporate income tax underpayment. TaxpayerCo. discovered the error and voluntarily notified the tax authority. The value of the underpaid income tax liability is 5% of the corporate income tax liability due. TaxpayerCo. submits corrected information after the deadline for submitting the annual tax return, but within the tax assessment period.

Paying Taxes – Australia

Indicator	Australia	OECD high income	Best Regulatory Performance
Payments (number per year)	11	10.3	3 (2 Economies)
Time (hours per year)	105	158.8	49 (3 Economies)
Total tax and contribution rate (% of profit)	47.4	39.9	26.1 (33 Economies)
Postfiling index (0-100)	95.3	86.7	None in 2018/19

Figure – Paying Taxes in Australia – Score

Figure – Paying Taxes in Australia and comparator economies – Ranking and Score

DB 2020 Paying Taxes Score

Note: The ranking of economies on the ease of paying taxes is determined by sorting their scores for paying taxes. These scores are the simple average of the scores for each of the component indicators, with a threshold and a nonlinear transformation applied to one of the component indicators, the total tax and contribution rate. The threshold is defined as the total tax and contribution rate at the 15th percentile of the overall distribution for all years included in the analysis up to and including Doing Business 2015, which is 26.1%. All economies with a total tax and contribution rate below this threshold receive the same score as the economy at the threshold.

Figure – Paying Taxes in Australia and comparator economies – Measure of Quality

Details – Paying Taxes in Australia – Tax by Type

Taxes by type	Answer
Profit tax (% of profit)	26.1
Labor tax and contributions (% of profit)	21.0
Other taxes (% of profit)	0.3

Details – Paying Taxes in Australia – Measure of Quality

	Answer	Score
Postfiling index (0-100)		95.3
VAT refunds
Does VAT exist?	Yes
Does a VAT refund process exist per the case study?	Yes
Restrictions on VAT refund process	none
Percentage of cases exposed to a VAT audit (%)	50% – 74%
Is there a mandatory carry forward period?	No
Time to comply with VAT refund (hours)	5.0	91.0
Time to obtain VAT refund (weeks)	8.0	90.8
Corporate income tax audits
Does corporate income tax exist?	Yes
Percentage of cases exposed to a corporate income tax audit (%)	0% – 24%
Time to comply with a corporate income tax correction (hours)	1.8	99.5
Time to complete a corporate income tax correction (weeks)	No tax audit per case study scenario	100

Notes: Names of taxes have been standardized. For instance income tax, profit tax, tax on company's income are all named corporate income tax in this table. The hours for VAT include all the VAT and sales taxes applicable.

The hours for Social Security include all the hours for labor taxes and mandatory contributions in general.

The postfiling index is the average of the scores on time to comply with VAT refund, time to obtain a VAT refund, time to comply with a corporate income tax correction and time to complete a corporate income tax correction.

N/A = Not applicable.

Trading across Borders

Doing Business records the time and cost associated with the logistical process of exporting and importing goods. Doing Business measures the time and cost (excluding tariffs) associated with three sets of procedures—documentary compliance, border compliance and domestic transport—within the overall process of exporting or importing a shipment of goods. The most recent round of data collection for the project was completed in May 2019. See the methodology for more information.

What the indicators measure

Documentary compliance

Obtaining, preparing and submitting documents during transport, clearance, inspections and port or border handling in origin economy
Obtaining, preparing and submitting documents required by destination economy and any transit economies
Covers all documents required by law and in practice, including electronic submissions of information

Border compliance

Customs clearance and inspections
Inspections by other agencies (if applied to more than 20% of shipments)
Handling and inspections that take place at the economy’s port or border

Domestic transport

Loading or unloading of the shipment at the warehouse or port/border
Transport between warehouse and port/border
Traffic delays and road police checks while shipment is en route

To make the data comparable across economies, a few assumptions are made about the traded goods and the transactions:

Time: Time is measured in hours, and 1 day is 24 hours (for example, 22 days are recorded as 22×24=528 hours). If customs clearance takes 7.5 hours, the data are recorded as is. Alternatively, suppose documents are submitted to a customs agency at 8:00a.m., are processed overnight and can be picked up at 8:00a.m. the next day. The time for customs clearance would be recorded as 24 hours because the actual procedure took 24 hours.

Cost: Insurance cost and informal payments for which no receipt is issued are excluded from the costs recorded. Costs are reported in U.S. dollars. Contributors are asked to convert local currency into U.S. dollars based on the exchange rate prevailing on the day they answer the questionnaire. Contributors are private sector experts in international trade logistics and are informed about exchange rates.

Assumptions of the case study:

For all 190 economies covered by Doing Business, it is assumed a shipment is in a warehouse in the largest business city of the exporting economy and travels to a warehouse in the largest business city of the importing economy.
It is assumed each economy imports 15 metric tons of containerized auto parts (HS 8708) from its natural import partner—the economy from which it imports the largest value (price times quantity) of auto parts. It is assumed each economy exports the product of its comparative advantage (defined by the largest export value) to its natural export partner—the economy that is the largest purchaser of this product. Shipment value is assumed to be $50,000.
The mode of transport is the one most widely used for the chosen export or import product and the trading partner, as is the seaport or land border crossing.
All electronic information submissions requested by any government agency in connection with the shipment are considered to be documents obtained, prepared and submitted during the export or import process.
A port or border is a place (seaport or land border crossing) where merchandise can enter or leave an economy.
Relevant government agencies include customs, port authorities, road police, border guards, standardization agencies, ministries or departments of agriculture or industry, national security agencies and any other government authorities.

Trading across Borders – Australia

Indicator	Australia	OECD high income	Best Regulatory Performance
Time to export: Border compliance (hours)	36	12.7	1 (19 Economies)
Cost to export: Border compliance (USD)	766	136.8	0 (19 Economies)
Time to export: Documentary compliance (hours)	7	2.3	1 (26 Economies)
Cost to export: Documentary compliance (USD)	264	33.4	0 (20 Economies)
Time to import: Border compliance (hours)	39	8.5	1 (25 Economies)
Cost to import: Border compliance (USD)	539	98.1	0 (28 Economies)
Time to import: Documentary compliance (hours)	4	3.4	1 (30 Economies)
Cost to import: Documentary compliance (USD)	100	23.5	0 (30 Economies)

Figure – Trading across Borders in Australia – Score

Figure – Trading across Borders in Australia and comparator economies – Ranking and Score

DB 2020 Trading Across Borders Score

Note: The ranking of economies on the ease of trading across borders is determined by sorting their scores for trading across borders. These scores are the simple average of the scores for the time and cost for documentary compliance and border compliance to export and import.

Figure – Trading across Borders in Australia – Time and Cost

Details – Trading across Borders in Australia

Details – Trading across Borders in Australia – Components of Border Compliance

Details – Trading across Borders in Australia – Trade Documents

Enforcing Contracts

The enforcing contracts indicator measures the time and cost for resolving a commercial dispute through a local first-instance court, and the quality of judicial processes index, evaluating whether each economy has adopted a series of good practices that promote quality and efficiency in the court system. The most recent round of data collection was completed in May 2019. See the methodology for more information.

What the indicators measure

Time required to enforce a contract through the courts (calendar days)

Time to file and serve the case
Time for trial and to obtain the judgment
Time to enforce the judgment

Cost required to enforce a contract through the courts (% of claim value)

Average attorney fees
Court costs
Enforcement costs

Quality of judicial processes index (0-18)

Court structure and proceedings (-1-5)
Case management (0-6)
Court automation (0-4)
Alternative dispute resolution (0-3)

The dispute in the case study involves the breach of a sales contract between two domestic businesses. The case study assumes that the court hears an expert on the quality of the goods in dispute. This distinguishes the case from simple debt enforcement.

To make the data on the time and comparable across economies, several assumptions about the case are used:

The dispute concerns a lawful transaction between two businesses (Seller and Buyer), both located in the economy’s largest business city. For 11 economies the data are also collected for the second largest business city.
The Buyer orders custom-made furniture, then fails to pay alleging that the goods are not of adequate quality.
The value of the dispute is 200% of the income per capita or the equivalent in local currency of USD 5,000, whichever is greater.
The Seller sues the Buyer before the court with jurisdiction over commercial cases worth 200% of income per capita or $5,000 whichever is greater.
The Seller requests the pretrial attachment of the defendant’s movable assets to secure the claim.
The claim is disputed on the merits because of Buyer’s allegation that the quality of the goods was not adequate.
The judge decides in favor of the seller; there is no appeal.
The Seller enforces the judgment through a public sale of the Buyer’s movable assets.

Enforcing Contracts – Australia

Figure – Enforcing Contracts in Australia – Score

Figure – Enforcing Contracts in Australia and comparator economies – Ranking and Score

DB 2020 Enforcing Contracts Score

Note: The ranking of economies on the ease of enforcing contracts is determined by sorting their scores for enforcing contracts. These scores are the simple average of the scores for each of the component indicators.

Figure – Enforcing Contracts in Australia – Time and Cost

Figure – Enforcing Contracts in Australia and comparator economies – Measure of Quality

Details – Enforcing Contracts in Australia

Details – Enforcing Contracts in Australia – Measure of Quality

	Answer	Score
Quality of judicial processes index (0-18)		15.5
Court structure and proceedings (-1-5)		4.5
1. Is there a court or division of a court dedicated solely to hearing commercial cases?	Yes	1.5
2. Small claims court		1.5
2.a. Is there a small claims court or a fast-track procedure for small claims?	Yes
2.b. If yes, is self-representation allowed?	Yes
3. Is pretrial attachment available?	Yes	1.0
4. Are new cases assigned randomly to judges?	Yes, but manual	0.5
5. Does a woman's testimony carry the same evidentiary weight in court as a man's?	Yes	0.0
Case management (0-6)		5.5
1. Time standards		1.0
1.a. Are there laws setting overall time standards for key court events in a civil case?	Yes
1.b. If yes, are the time standards set for at least three court events?	Yes
1.c. Are these time standards respected in more than 50% of cases?	Yes
2. Adjournments		0.5
2.a. Does the law regulate the maximum number of adjournments that can be granted?	No
2.b. Are adjournments limited to unforeseen and exceptional circumstances?	Yes
2.c. If rules on adjournments exist, are they respected in more than 50% of cases?	Yes
3. Can two of the following four reports be generated about the competent court: (i) time to disposition report; (ii) clearance rate report; (iii) age of pending cases report; and (iv) single case progress report?	Yes	1.0
4. Is a pretrial conference among the case management techniques used before the competent court?	Yes	1.0
5. Are there any electronic case management tools in place within the competent court for use by judges?	Yes	1.0
6. Are there any electronic case management tools in place within the competent court for use by lawyers?	Yes	1.0
Court automation (0-4)		3.0
1. Can the initial complaint be filed electronically through a dedicated platform within the competent court?	Yes	1.0
2. Is it possible to carry out service of process electronically for claims filed before the competent court?	No	0.0
3. Can court fees be paid electronically within the competent court?	Yes	1.0
4. Publication of judgments		1.0
4.a Are judgments rendered in commercial cases at all levels made available to the general public through publication in official gazettes, in newspapers or on the internet or court website?	Yes
4.b. Are judgments rendered in commercial cases at the appellate and supreme court level made available to the general public through publication in official gazettes, in newspapers or on the internet or court website?	Yes
Alternative dispute resolution (0-3)		2.5
1. Arbitration		1.5
1.a. Is domestic commercial arbitration governed by a consolidated law or consolidated chapter or section of the applicable code of civil procedure encompassing substantially all its aspects?	Yes
1.b. Are there any commercial disputes—aside from those that deal with public order or public policy— that cannot be submitted to arbitration?	No
1.c. Are valid arbitration clauses or agreements usually enforced by the courts?	Yes

Resolving Insolvency

Doing Business studies the time, cost and outcome of insolvency proceedings involving domestic legal entities. These variables are used to calculate the recovery rate, which is recorded as cents on the dollar recovered by secured creditors through reorganization, liquidation or debt enforcement (foreclosure or receivership) proceedings. To determine the present value of the amount recovered by creditors, Doing Business uses the lending rates from the International Monetary Fund, supplemented with data from central banks and the Economist Intelligence Unit. The most recent round of data collection was completed in May 2019. See the methodology for more information.

What the indicators measure

Time required to recover debt (years)

Measured in calendar years
Appeals and requests for extension are included

Cost required to recover debt (% of debtor’s estate)

Measured as percentage of estate value
Court fees
Fees of insolvency administrators
Lawyers’ fees
Assessors’ and auctioneers’ fees

Other related fees

To make the data on the time, cost and outcome comparable across economies, several assumptions about the business and the case are used:

In addition, Doing Business evaluates the quality of legal framework applicable to judicial liquidation and reorganization proceedings and the extent to which best insolvency practices have been implemented in each economy covered.

Outcome

Whether business continues operating as a going concern or business assets are sold piecemeal

Recovery rate for creditors

A hotel located in the largest city (or cities) has 201 employees and 50 suppliers. The hotel experiences financial difficulties.
The value of the hotel is 100% of the income per capita or the equivalent in local currency of USD 200,000, whichever is greater.
The hotel has a loan from a domestic bank, secured by a mortgage over the hotel’s real estate. The hotel cannot pay back the loan, but makes enough money to operate otherwise.

Measures the cents on the dollar recovered by secured creditors
Outcome for the business (survival or not) determines the maximum value that can be recovered
Official costs of the insolvency proceedings are deducted
Depreciation of furniture is taken into account
Present value of debt recovered

Strength of insolvency framework index (0- 16)

Sum of the scores of four component indices:
Commencement of proceedings index (0-3)
Management of debtor’s assets index (0-6)
Reorganization proceedings index (0-3)
Creditor participation index (0-4)

Resolving Insolvency – Australia

Figure – Resolving Insolvency in Australia – Score

Figure – Resolving Insolvency in Australia and comparator economies – Ranking and Score

DB 2020 Resolving Insolvency Score

Note: The ranking of economies on the ease of resolving insolvency is determined by sorting their scores for resolving insolvency. These scores are the simple average of the scores for the recovery rate and the strength of insolvency framework index.

Figure – Resolving Insolvency in Australia – Time and Cost

Figure – Resolving Insolvency in Australia and comparator economies – Measure of Quality

Note: Even if the economy’s legal framework includes provisions related to insolvency proceedings (liquidation or reorganization), the economy receives 0 points for the strength of insolvency framework index, if time, cost and outcome indicators are recorded as “no practice.”

Figure – Resolving Insolvency in Australia and comparator economies – Recovery Rate

Details – Resolving Insolvency in Australia

Details – Resolving Insolvency in Australia – Measure of Quality

	Answer	Score
Strength of insolvency framework index (0-16)		11.0
Commencement of proceedings index (0-3)		2.5
What procedures are available to a DEBTOR when commencing insolvency proceedings?	(a) Debtor may file for both liquidation and reorganization	1.0
Does the insolvency framework allow a CREDITOR to file for insolvency of the debtor?	(b) Yes, but a creditor may file for liquidation only	0.5
What basis for commencement of the insolvency proceedings is allowed under the insolvency framework? (a) Debtor is generally unable to pay its debts as they mature (b) The value of debtor's liabilities exceeds the value of its assets	(a) Debtor is generally unable to pay its debts as they mature	1.0
Management of debtor's assets index (0-6)		5.0
Does the insolvency framework allow the continuation of contracts supplying essential goods and services to the debtor?	No	0.0
Does the insolvency framework allow the rejection by the debtor of overly burdensome contracts?	Yes	1.0
Does the insolvency framework allow avoidance of preferential transactions?	Yes	1.0
Does the insolvency framework allow avoidance of undervalued transactions?	Yes	1.0
Does the insolvency framework provide for the possibility of the debtor obtaining credit after commencement of insolvency proceedings?	Yes	1.0
Does the insolvency framework assign priority to post-commencement credit?	(b) Yes over ordinary unsecured creditors but not over secured creditors	1.0
Reorganization proceedings index (0-3)		0.5
Which creditors vote on the proposed reorganization plan?	(a) All creditors	0.5
Does the insolvency framework require that dissenting creditors in reorganization receive at least as much as what they would obtain in a liquidation?	No	0.0
Are the creditors divided into classes for the purposes of voting on the reorganization plan, does each class vote separately and are creditors in the same class treated equally?	No	0.0
Creditor participation index (0-4)		3.0
Does the insolvency framework require approval by the creditors for selection or appointment of the insolvency representative?	Yes	1.0
Does the insolvency framework require approval by the creditors for sale of substantial assets of the debtor?	No	0.0
Does the insolvency framework provide that a creditor has the right to request information from the insolvency representative?	Yes	1.0
Does the insolvency framework provide that a creditor has the right to object to decisions accepting or rejecting creditors' claims?	Yes	1.0

Employing Workers

Doing Business presents detailed data for the employing workers indicators on the Doing Business website (https://www.doingbusiness.org). The study does not present rankings of economies on these indicators or include the topic in the aggregate ease of doing business score or ranking on the ease of doing business.

The most recent round of data collection was completed in May 2019. See the methodology for more information.

What the indicators measure

Hiring

(i) whether fixed-term contracts are prohibited for permanent tasks; (ii) maximum cumulative duration of fixed-term contracts;

(iii) length of the maximum probationary period; (iv) minimum wage;(v) ratio of minimum wage to the average value added per worker.

Working hours

(i) maximum number of working days allowed per week; (ii) premiums for work: at night, on a weekly rest day and overtime;

(iii) whether there are restrictions on work at night, work on a weekly rest day and for overtime work; (iv) length of paid annual leave.

Redundancy rules

(i) whether redundancy can be basis for terminating workers; (ii) whether employer needs to notify and/or get approval from third party to terminate 1 redundant worker and a group of 9 redundant workers; (iii) whether the law requires employer to reassign or retrain a worker before making worker redundant; (iv) whether priority rules apply for redundancies and reemployment.

To make the data comparable across economies, several assumptions about the worker and the business are used.

The worker:

Is a cashier in a supermarket or grocery store, age 19, with one year of work experience.
Is a full-time employee.
Is not a member of the labor union, unless membership is mandatory.

The business:

Is a limited liability company (or the equivalent in the economy).
Operates a supermarket or grocery store in the economy’s largest business city. For 11 economies the data are also collected for the second largest business city.
Has 60 employees.
Is subject to collective bargaining agreements if such agreements cover more than 50% of the food retail sector and they apply even to firms that are not party to them.
Abides by every law and regulation but does not grant workers more benefits than those mandated by law, regulation or (if applicable) collective bargaining agreements.

Redundancy cost

(i) notice period for redundancy dismissal; (ii) severance payments, and (iii) penalties due when terminating a redundant worker. Data on the availability of unemployment protection for a worker with one year of employment is also collected.

Employing Workers – Australia

Details – Employing Workers in Australia

Answer

Hiring

Fixed-term contracts prohibited for permanent tasks? No

Maximum length of a single fixed-term contract (months) No limit

Maximum length of fixed-term contracts, including renewals (months) No limit

Minimum wage applicable to the worker assumed in the case study (US$/month) 2034.0

Maximum length of probationary period (months) 6.0

Ratio of minimum wage to value added per worker 0.3

Working hours

Standard workday 7.6

Maximum number of working days per week 6.0

Premium for night work (% of hourly pay) 25.0

Premium for work on weekly rest day (% of hourly pay) 100.0

Premium for overtime work (% of hourly pay) 50.0

Restrictions on night work? No

Restrictions on weekly holiday? No

Restrictions on overtime work? No

Paid annual leave for a worker with 1 year of tenure (working days) 20.0

Paid annual leave for a worker with 5 years of tenure (working days) 20.0

Paid annual leave for a worker with 10 years of tenure (working days) 20.0

Paid annual leave (average for workers with 1, 5 and 10 years of tenure, in working days) 20.0

Redundancy rules

Dismissal due to redundancy allowed by law? Yes

Third-party notification if one worker is dismissed? No

Third-party approval if one worker is dismissed? No

Third-party notification if nine workers are dismissed? No

Third-party approval if nine workers are dismissed? No

Retraining or reassignment obligation before redundancy? Yes

Priority rules for redundancies? No

Priority rules for reemployment? No

Redundancy cost

Notice period for redundancy dismissal for a worker with 1 year of tenure (weeks of salary) 2.0

Notice period for redundancy dismissal for a worker with 5 years of tenure (weeks of salary) 4.0

Notice period for redundancy dismissal for a worker with 10 years of tenure (weeks of salary) 4.0

Severance pay for redundancy dismissal for a worker with 1 year of tenure (weeks of salary) 4.0

Notice period for redundancy dismissal (average for workers with 1, 5 and 10 years of tenure, in weeks of salary) 3.3

Severance pay for redundancy dismissal for a worker with 5 years of tenure (weeks of salary) 10.0

Severance pay for redundancy dismissal for a worker with 10 years of tenure (weeks of salary) 12.0

Unemployment protection after one year of employment? Yes

Severance pay for redundancy dismissal (average for workers with 1, 5 and 10 years of tenure, in weeks of salary) 8.7

PEO Australia

Australia is an attractive destination for PEO (Professional Employer Organization) services due to its thriving economy, diverse business landscape, and strong commitment to employee welfare. As a PEO country, Australia offers numerous benefits to international businesses seeking to expand their operations without establishing a legal entity. Through PEO, companies can access a skilled and talented workforce while minimizing the complexities of employment regulations, payroll processing, and HR administration. Additionally, Australia’s stable political environment, well-developed infrastructure, and competitive business environment make it an ideal choice for companies looking to tap into the Asia-Pacific region. With its PEO services, Australia presents a seamless and efficient solution for global businesses seeking to navigate the complexities of international expansion while ensuring compliance and strategic growth.

PEO services, or Professional Employer Organization services, have gained prominence in Australia’s business landscape as a strategic solution for companies seeking to establish a presence in this dynamic market. With a robust economy and a skilled workforce, Australia presents significant opportunities for international expansion. PEO services in Australia offer a range of comprehensive HR solutions, including payroll administration, employee benefits management, compliance with labor laws, and assistance with recruitment and onboarding processes. By partnering with a reputable PEO, foreign companies can navigate the complexities of the Australian employment landscape with ease, ensuring adherence to local regulations and cultural practices. This enables businesses to focus on their core operations and strategic objectives while the PEO takes care of HR-related tasks. With the support of PEO services in Australia, companies can efficiently navigate the challenges of expanding into this promising market and capitalize on its vast potential for growth and success.

Business Reforms in Australia

From May 2, 2018 to May 1, 2019, 115 economies implemented 294 business regulatory reforms across the 10 areas measured by Doing Business. Reforms inspired by

Doing Business have been implemented by economies in all regions. The following are reforms implemented since Doing Business 2008. =Doing Business reform making it easier to do business. = Change making it more difficult to do business.

DB2020

Getting Credit: Australia improved access to credit information by beginning to distribute both positive and negative data.

DB2014

Getting Credit: Australia improved its credit information system through the Privacy Amendment (Enhancing Privacy Protection) Act 2012, which permits credit bureaus to collect account payment history with improved privacy protection.

DB2013

Getting Credit: Australia strengthened its secured transactions system by adopting a new national legal regime governing the enforceability of security interests in personal property and implementing a unified collateral registry.

DB2012

Resolving Insolvency: Australia clarified the priority of claims of unsecured creditors over all shareholders’ claims and introduced further regulation of the profession of insolvency practitioners.

DB2011

Employing Workers:

Australia introduced the severance payment obligation and reemployment consideration applicable in cases of redundancy dismissals. Annual leave was increased and averaging of hours is now allowed in shorter periods of time. In addition, notice period applicable in case of redundancy dismissals was decreased.

DB2010

Dealing with Construction Permits: Australia reduced the time needed for dealing with construction permits by streamlining procedures.

Paying Taxes: Australia made paying taxes easier for companies by abolishing the stamp duty on contracts.

DB2008

Starting a Business: Australia made starting a business less costly by cutting the registration fee for new businesses by half.

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