Information Transfer & Technology

Australia's information technology industry - is one of the most dynamic sectors of the Australian economy.

Australia's IT & T industry:
• employs more than 250,000 people;
• is a major exporter, earning more than A$35 billion;
• earns $50billion annualy in total value of sales;
• includes transnational and domestic companies;
• is a significant innovator, spending over half a billion dollars annually on R & D; and
• invested more than $3billion in fixed assets during the past year:
• has highly skilled and trained people with more than 8,000 graduates annually.
• is the largest market after Japan for IT & T goods and services in the Asia Pacific region.

The industry has competitive strengths in applications software development, systems integration, consulting, IT networks, and outsourcing, which includes business engineering and services training. Areas in which Australia particularly excels in application software development include: engineering, scientific, medical, legal, finance, banking, retail, insurance and government solutions. Many of these are sought by world markets. The software and services sector is growing at an annual rate of 14 per cent. Providing sophisticated and customised services to meet a diverse range of needs.

Hardware
The hardware market is highly internationalised and all major computer companies are represented in Australia. For example, IBM has established substantial manufacturing facilities in Australia to produce computer hardware products for local and export markets.

Companies such as IBM, Compaq, Ipex, Dell and Apple are sharing in the rapid growth of Australia's personal computer market.

An Ideal Investment Location
Government micro-economic reforms have given local industry the environment needed to compete in world markets.

Australia offers:
• a truly international market;
• a liberalised trade environment for IT & T;
• competition in the telecommunications industry;
• global standards;
• deregulation of financial markets;
• industrial relations harmony; and
• competitive company tax levels.

Australia offers transnational companies incentives to encourage establishment of IT & T activities, including:
• an open foreign investment policy;
• a company tax rate of 30% reducing to 30% in 2000-2001 and full dividend imputation;
• generous depreciation allowances on plant and equipment;
• a range of development and investment allowances;
• 150 per cent R & D tax concessions and R & D grants;
• feasibility study grants; and
• exemption from Dividend Withholding Tax for certain transactions between subsidiaries.

Incentives offered to attract Regional Headquarters, such as:
• streamlined immigration processes; and
• deductibility of certain setup costs.

Australia offers world class skills in commercial services such as legal, accounting, management consulting and advertising. Unit costs for these services are up to 25% below those of Hong Kong. Australia's time zone offers real advantages in that it is in the same time zone as Asia and gives companies easy access to the close of the US market and the opening of the European market.

Information sourced from:
Australian Information Industry Association
www.aiia.com.au