As TEMA specialises in helping technology companies internationalise and as we have successfully set up an Oz operation selling IT services ourselves we thought a few pointers might be useful:

Visas

The main problem with the visa is the length of time it takes to complete the forms/medical assessment. 457 Visas are usually given highest priority because they are employer sponsored so once the forms are submitted it should go quickly. It helps to make a contact at the Australian Embassy in the immigration department as this helps things get done quickly once forms are submitted.  

The forms are time consuming to complete and ask for a lot of evidence (e.g. proof of defacto relationship if applying for a partner too). You have to arrange an x-ray from a centre suggested by the Embassy and (if you are over 30) may have to have a full medical. They are really tightening up on visa applications since the financial crisis.

If you are sent from the UK on a 457 visa you can also benefit from LAFHA which costs nothing to the company but gets rent and food tax free for the employee. You lose this benefit if you buy a house or apply for permanent residency because you are no longer 'temporary'. 

The most time consuming part of the visa is probably the business case / plan that needs to be supplied (unless one already exists). The main thing they would be looking out for is whether someone could be employed locally and whether jobs will be created.

Working with UK HQ

Access to bank account/accounting system would be useful as the time difference means that there can often be accounting delays. 

Generally, if the person is going to be on their own (and sales based) then having someone to assist them is important because otherwise their effectiveness can be drastically reduced unless.

With regard to some of the pitfalls I would say that the hardest thing (especially if you have no-one with experience in Australia) is knowing all the different admin tasks that need to be done eg Tax Office forms when employing locals.

Contacts are very important Down Under. Everyone seems to know everyone else.  Obviously networking is important anywhere, but it seems to be more so here because the country is small (except in size!).

Steve Potts, Sales and Marketing Director, The TEMA Group (Australia)

3.  Financials

1. Access to the bank – we could view bank account but couldn’t do payments – 3 months delay. Problem with Bank operating from UK can’t write cheques to pay suppliers.
2. If employing a National pay them in Aussie dollars – Pay as You Go + Superannuation @9%.  Paid to superannuation fund of employees choice.  In place of NHI.
3. Quarterly business activity return = VAT return.  Done on fund movements rather than invoices – only pay over what has been paid.  Set off the Pay as You Go payments against liability on GST.  One return not separate returns.  BDO Kendals advised us.
4. Need an Accounting programme to account in Aussie Dollars – Sage Line 50 Financial Controller
5. Separate trading name; we set up as a subsidiary but needs to be registered and need a Resident Director - $1500 per annum
6. Regus offices very expensive
7. Insurance for Public liability
8. 30^th June Year Ends
9. Very amenable – think you have a sale when you haven’t.