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There are a number of legal considerations when you are expanding your New Zealand business to Australia. In order to spread out to Australia, New Zealand businesses will need to sort out these matters first:
- Registration and taxation
- Operating as a branch or subsidiary
- Employing foreign workers
- Dispute resolution in multiple jurisdictions
- Extending intellectual property protections to Australia
In this article, we’ll cover the above points and provide some general guidelines on doing business in Australia from New Zealand in 2025. Expanding your business operations to Australia is a worthwhile endeavour, but it’s essential to get everything right from the start to maximise the benefits of your growth. Whether you’re planning to operate as a branch or incorporate a subsidiary, careful planning and professional advice will help you navigate the legal landscape.
Why Do Foreign Companies Carry On Business In Australia?
Entering the Australian business scene is a great way to expand your operations and access a broader market. Australia’s stable economy and diverse consumer base make it an attractive destination for expansion.
Many major businesses in Australia got their start from New Zealand – for example, Kathmandu and Pals both began as small Kiwi ventures before successfully establishing themselves in Australia. For additional insight, you might also explore our guide on starting a business in Australia to see how other companies have navigated this process.
How Do I Set Up A New Zealand Business In Australia In 2025?
To establish your business presence in Australia in 2025, you first need to decide how you want to operate. If you’re simply looking to trade into Australia without establishing a local entity, you’ll need to review the latest grants, customs procedures, and tax regulations before proceeding.
However, if you aim to create a dedicated Australian presence, consider whether setting up as a subsidiary or as a branch best suits your business goals. For guidance on choosing the right structure – including comparisons between operating as a sole trader and incorporating – take a look at our article on Operating as a Sole Trader versus a company.
Firstly, ensure your New Zealand business is properly registered and compliant with all its legal obligations before venturing into the Australian market.
Do I Need An ABN?
Yes, an Australian Business Number (ABN) is required for all businesses operating in Australia. Even if you are based overseas, if you intend to conduct business in Australia, you must secure an ABN. In most cases, you will also need a Tax File Number (TFN) as part of your application process.
When applying for an ABN, you may be asked to provide a statement outlining your activities in Australia along with proof of identity. Be sure to keep a record of your ABN confirmation details, as these will be required for ongoing tax obligations and when lodging further documents with the Australian Taxation Office (ATO).
Do I Need To Register For Tax?
Tax is a critical consideration when expanding into Australia. As a non-resident business operating in Australia, you will only be taxed on income generated from Australian activities. However, should your business structure create obligations in both New Zealand and Australia, you might face double taxation if not properly managed.
If your business turnover in Australia is expected to exceed $75,000 per annum in 2025, you will also need to register for Goods and Services Tax (GST). Because taxation rules can be complex and vary according to your business structure, it is advisable to consult with both legal and financial professionals to ensure full compliance with both Australian and New Zealand taxation requirements.
Setting Up A Branch Vs A New Company
When establishing a physical presence in Australia, you essentially have two options for your business structure:
- Branch
- Subsidiary
So, what’s the main difference between the two?
A branch is an extension of your New Zealand parent company operating directly in Australia, meaning the parent company retains full control and is typically liable for all activities. A subsidiary, conversely, is a separate legal entity controlled by your head company – generally established to mitigate risk and provide a degree of legal separation between the two entities.
Each option comes with its own implications for registration, taxation, and liability. For more detailed advice on choosing the right structure for your business, our quick guide to registering a company in Australia is a useful resource.
Setting Up A Subsidiary
To set up a subsidiary in Australia in 2025, you will need to take the following steps:
- Register a business name
- Apply for an ABN and TFN
- Register for all relevant taxes, including GST and PAYG
- Open a local bank account
- Secure a local Australian address
- Appoint at least one director who resides in Australia
How Does Liability Work With A Subsidiary Company?
If a subsidiary encounters debt or legal issues in Australia, the parent (or holding) company in New Zealand may ultimately be held liable. However, there are situations where the head company can reduce its liability by invoking specific defences, such as:
- Utilising safe harbour provisions and maintaining a robust plan to keep the subsidiary solvent
- Demonstrating that they received incorrect or incomplete information from the local team
- Having a reasonable belief and evidence that the subsidiary was performing well prior to the issue
- Documenting that directors took all reasonable steps to prevent insolvency
What If My Employees Are Foreign Workers?
Expanding into Australia often means that you might employ staff relocating from New Zealand or hire local Australian workers. Regardless of their origin, you need to adhere to all Australian employment laws.
Your employment contracts should clearly cover employee rights, benefits, work hours, and responsibilities in compliance with current Australian legislation, including the Fair Work Act 2009.
If New Zealand residents are coming over to work in Australia, it is crucial that they arrive on the correct visa and that you comply with all visa and work restrictions. Similarly, when engaging overseas contractors, ensure their Contractor Agreements specify the appropriate governing law and compliance with all relevant jurisdictional requirements.
Ensuring your employees receive all their entitled rights under Australian law can prevent costly disputes. For expert guidance, discuss your recruitment and employment strategies with our legal team.
If There Is A Dispute, Which Country’s Laws Apply?
When entering into international business relationships, it is essential that your contracts clearly outline the dispute resolution process. In 2025, your contract should specify the governing law and jurisdiction so that, in the event of a dispute, the relevant legal framework is clear – regardless of where the dispute is adjudicated.
Internationally enforceable contracts are designed to take into account the different laws across countries. This ensures that if a court judgment is made in one jurisdiction, it will be recognised and enforced across borders.
It is crucial to work with legal professionals experienced in cross-border disputes to draft or review your contracts, reducing the risk of uncertainty and unwanted legal consequences.
Intellectual Property
When expanding into Australia, maintaining consistent IP protections is essential. Your intellectual property rights developed in New Zealand may not automatically extend to Australia.
Depending on the nature of your IP, you might need to go through a separate registration process in Australia or use international systems to secure protection. For instance, you can register your trademark in Australia by using the Madrid System, ensuring your brand is protected across multiple jurisdictions.
Will My Trademarks Be Valid Internationally?
A trademark registered in New Zealand is only valid within New Zealand. To secure international protection – including in Australia – you need to lodge a separate application under systems such as the Madrid Protocol.
For a seamless process, our legal experts at Sprintlaw can assist you with registering your trademark internationally so that your intellectual property is robustly protected in 2025 and beyond.
Regularly reviewing and updating your IP strategy is essential as your business grows, ensuring that your brand remains well-protected as you navigate both New Zealand and Australian markets. You might also find our article on protecting your IP with a trade mark useful for additional insights.
As regulations continue to evolve in 2025, it is wise to schedule regular legal reviews and ensure that your contracts and compliance measures remain up-to-date. Staying proactive not only guards against risks but also positions your business for long-term success in both markets. For further guidance, check out our regulatory compliance resources tailored to cross-border business operations.
Key Takeaways
Expanding your New Zealand business to Australia in 2025 is an exciting opportunity! However, ensuring that you are fully compliant with all legal requirements at every stage is crucial for a smooth and successful setup. Here is a summary of the key legal considerations:
- Obtaining an ABN, TFN and registering for all relevant taxes (including GST if applicable)
- Deciding whether to operate as a subsidiary or a branch to suit your business strategy
- Ensuring legal compliance when employing foreign workers or engaging overseas contractors
- Including clear contract terms for governing law and dispute resolution across jurisdictions
- Protecting your trademarks internationally through systems like the Madrid Protocol
- Regularly reviewing your legal documents and strategies to keep pace with evolving regulations
If you would like a consultation regarding expanding your New Zealand business to Australia, please call us on 1800 730 617 or email team@sprintlaw.com.au for a free, no-obligation chat. Our expert team is here to help ensure your international expansion is as smooth and legally sound as possible.
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