Australia is still a popular destination for Israeli companies
Australia has been an increasingly popular destination for Israeli companies looking to expand their market or raise capital. Recently, the Australian economy has been suffering from jitters in a few key sectors. However, the astute players recognise that the fundamentals are still very solid and it still makes financial sense to focus on the “lucky country” as part of a company’s expansion plans.
With a relatively small population, Israeli companies need to be outward looking. Those that are looking to expand into Australia are closely monitoring the news in an attempt to get the timing right. They can’t help noticing that property prices have slumped, especially in the key markets of Sydney and Melbourne which traditionally led the boom in housing prices. They see that the S&P/ASX All Ordinaries took a beating in the second half of 2018. The upcoming federal election also adds to the uncertainty.
However, they also see that the Australian stock market has been bouncing back in the first couple of months of 2019. The ASX continues to be very supportive of foreign company listings, with a continued focus on Israel. In fact, the ASX sent a high-ranking delegation to the Our Crowd Global Investor Summit which took place in Jerusalem last week. Unlike other popular exchanges that have a main list and a subsidiary list, the ASX has only a single list. This can be significant for the smaller companies that may get ignored by the market.
Negotiations are continuing on a double taxation agreement (DTA) between Israel and Australia. We are hoping that this will be introduced in the not too distant future. A DTA is expected to lower withholding taxes, reduce uncertainty and increase flexibility in trade between Australia and Israel. When the DTA is introduced it can only help the flow of business between Israel and Australia.
The fundamental reasons why Australia is an attractive destination for Israeli companies are just as valid today as they always have been.
Australia offers a stable and predictable Western society with consistent economic growth over many years. The Australian Federal and State governments offer active support to Israeli companies looking to move to Australia, including the opportunity for generous grant funding. Australia is a convenient location for a regional base to access the enormous Asian markets.
Tisher Liner FC Law represents many Israeli clients that are currently operating in Australia or are planning to do so. Our clients include the full spectrum – those that are listed on the ASX, those that are looking to list, looking to raise capital, operating a local branch of their business or start-ups that are just starting-up.
If you have an Israeli business and would like to understand your options and opportunities in Australia, please be in touch. We have an office in Israel so we can provide you with face-to-face advice in your own time zone.
If you would like further information on Australia-Israel matters please don’t hesitate to contact the head of our Israel office, Allon Ledder on (03) 9998 0416 or +972 545 939 212.
