For companies considering entering the Australian market, Australia offers significant opportunities for a range of different sectors. Australia has been viewed as a key place for investment due to its strong economic environment, steady population growth, highly skilled workforce and stable regulatory environment. When entering a well-developed market such as Australia, it is best to find a partner who is aware of the local processes and regulations, and can provide assistance to ensure your enterprise can enter seamlessly, with little delay.
Definition of a PEO
The term PEO is an abbreviation of Professional Employment Organization, which is a service provider that is able to hire employees on their name and payroll, and then dispatch those employees out to other companies. Another term that is used for a PEO is an Employer of Record, which essentially provides the same service.
Why You May Need A PEO in Australia
When expanding your business to another country, setting up a new legal entity takes time and may be quite costly. A Professional Employment Organization (PEO) is an outsourced HR solution that allows your company to hire staff in a foreign country, like Australia, without the need of setting up a costly legal entity in that specific country.
Due to Australia’s strong regulatory framework, it offers a rigid process to setting up a business. As such a PEO in Australia may be a good option for companies looking for a simple and efficient way to enter the market.
How does it work?
Your staff will be hired through our PEO in Australia, and thus we will serve as the Employer of Record in Australia. As your Employer of Record in Australia, we ensure that your employee is hired in full compliance with local laws and regulations. INS Global will take on the administrative and legal liability of the employee, while the employee still remains under the full control of your enterprise.
The Benefits of Using a PEO in Australia
There are various benefits that a company gets when they choose to expand to Australia with a PEO. The most notable benefits are:
- Savings in cost – INS Global’s PEO solution helps keep the cost low when expanding and employing staff in Australia.
- HR knowledge – our experts have in depth knowledge of the HR regulations and processes in Australia, ensuring that your enterprise remains fully compliant.
- Administration – our highly qualified team takes care of the administration involved in hiring and maintaining staff
- Flexible market entry – using an Australia PEO provides your enterprise with immediate access to the market. Your enterprise will be able to hire staff and begin operations within a matter of days.
Challenges Businesses May Face in Australia
There are various challenges that occur whenever a business expands to a new country, and for new businesses in Australia, it is no different. Although Australia has a well-developed economy, stable regulatory environment and well educated workforce, there are still a multitude of challenges new businesses may face when setting up.
Some of the challenges experienced may include:
- Company Formation – There are several different types of entities available for businesses in Australia, businesses owners must select the correct type of entity as well as apply for all the licenses that may be required, otherwise the business may not be compliant.
- Tax Practices – Many businesses are not fully aware of the tax practices in Australia and with tax practices such as superannuation, they may find it difficult to remain compliant.
- Cultural Differences – As with any country, the business culture and environment may be different and, and as such an enterprise expanding into Australia needs to be mindful of the differences.
Why INS Global Should Be Your Partner in Australia
When expanding into a new region, it is highly important to ensure your enterprise remains fully compliant with local laws and practices. In order to make your transition as smooth as possible, partner with INS Global and ensure your business enters Australia, efficiently and in accordance with local regulation. Our experts in Australia always stay up to date with local regulations and processes, ensuring your business is able to operate legally, and while we handle administrative tasks, you are able to focus on expanding your business. Get in touch with our consultants and let us simplify your global expansion.