Thursday, 27 February 2020 Sydney

NSW & SYDNEY - Investment destination profile::

NSW has the largest economy in Australia, valued at $360 billion in 2007-08 or about 32% of Australia's GDP. This is one third larger than that of the next State, and Sydney alone accounts for almost one quarter of Australia's GDP.




The economy of NSW is highly diversified, with strengths in a broad range of industries. It is one of the world’s leading service economies with strengths in finance and business services, and communications and information technology. At the same time, the State boasts significant strengths in manufacturing and processing, as well as in agricultural and minerals production. New industries as diverse as biotechnology, aquaculture and digital media are also flourishing.




NSW has the largest economy in Australia, valued at $360 billion in 2007-08 or about 32% of Australia's GDP. This is one third larger than that of the next State, and Sydney alone accounts for almost one quarter of Australia's GDP.




Sydney is Australia’s business and finance capital. According to figures compiled by IbisWorld, New South Wales is home to 48% of the top 500 enterprises in Australia by revenue. This figure includes many foreign-owned companies, which use New South Wales as a base for expanding Asia Pacific operations. Multinational corporations with a major presence in New South Wales span all industries and include IBM, Coca-Cola Amatil, ING, Nestle, Allianz, Vodafone, Nokia, SingTel, Pfizer, Sony and Norske Skog.


The NSW Government maintains facts, figures and provides counsel on re/locating businesses and investing in the State:




Business investment in NSW reached $45.6 billion in the 2007-08 financial year - the highest of all States - representing a rise of 17.1% in real terms compared with the previous year.




NSW is home to:


    * 81% of Asia Pacific finance and insurance regional offices


    * 80% of domestic and foreign bank headquarters


    * 73% of property and business services regional offices


    * 60% of manufacturing regional headquarters


    * 76% of all information and communications technologies (ICT) regional headquarters


    * 46% of information and communications technology (ICT) businesses


    * 80% of multinational pharmaceutical companies in Australia and 70% of pharmaceutical companies with regional headquarters


    * 28% of the national market capitalization of ASX listed biotechnology companies; these 36 companies have a market value of $9.5 billion.





Australia’s Foreign Direct Investment policy is as follows:


  • An investor’s operations are independent from the relevant foreign government.


  • An investor is subject to and adheres to the law and observes common standards of business behavior.


  • An investment may not hinder competition or lead to undue concentration or control in the industries or sectors concerned.


  • An investment must be taxed on the same basis as other commercial entities.


  • The Government considers the extent to which investments might affect Australia’s ability to protect its strategic and security interests.


  • The Government considers the extent of Australian participation in ownership, control and management of an enterprise that would remain after a foreign investment, including the interests of employees, creditors and other stakeholders.




Companies establishing in Australia may be eligible for generous assistance in training, research & development, export market development, and in addition companies may be able to quickly depreciate plant and equipment.


Additionally, the following incentives are available to encourage companies to establish regional headquarters or support centers in Australia:


  • Exclusive streamlined immigration procedures.


  • Wholesale sales tax exemption for selected used equipment.


  • Tax deductibility of certain relocation expenses.


  • Assistance with obtaining information for site selection studies, facilitation of visit programs, introductions to govt. agencies, professional service firms.





The Federal Government could consider the provision of investment incentives to strategic investment projects in limited and special circumstances where the project would generate significant net economic and employment benefits for Australia. Incentives could include grants, tax relief or the provision of infrastructure services. Incentives are considered by the Australian Government on a case-by-case basis, using the following criteria:


  • The investment would not be likely to occur in Australia without the incentive


  • The investment provides significant net economic benefits through:
    • Substantial increase in employment
    • Substantial business investment
    • Significant boost to Australia's R&D capacity
    • Significant benefit to, or investment by other industries, either users or suppliers (cluster investment)










NSW remains an attractive centre of investment for world-wide businesses due to its:


Strength, stability and open government


Australia is a politically and economically stable democratic nation that provides easy access to Asia Pacific markets. New South Wales (NSW) has one of the lowest risk business environments in the Asia Pacific. Flexible, accountable financial practices, open regulation and transparent government policy make NSW an advantageous base for international companies in the Asia Pacific.


NSW has a deregulated financial system with no controls on foreign exchange and a deregulated telecommunications market.


The legal system in Australia is a mixture of common law and statute and both domestic and foreign companies have the same standing before the law.


Australia has among the world's best competition laws and an independent judiciary. Australia's intellectual property protection is ranked number two in the Asia Pacific and number ten globally.


Time zone advantage


Sydney's time zone, ten hours ahead of GMT, spans the closing of the North American business day and the opening of business in Europe. Sydney's market trades ahead of Tokyo, Hong Kong and Singapore.


Favorable tax system


The company income tax rate is 30% in Australia.  There are no restrictions on capital flow, profit remittances, capital repatriation, transfers or royalties and trade-related payments.


Competitive business costs


NSW continues to prove its competitive advantage as an Asia Pacific business base by offering the threefold benefit of lower salaries for highly skilled labor, economical operating costs and comprehensive, low-cost infrastructure.


Sydney offers global city status at an affordable price and is a less expensive city than Seoul, Tokyo, Hong Kong, London, Paris and Singapore.


Outgoings for salaries and office space in Sydney are well below those of other major international business capitals.


NSW has a highly educated population and almost 25% of NSW residents were born overseas, with more than 200 languages spoken in the State.


Australia's immigration system may allow entry of specialist staff into Australia on a temporary or permanent basis where vacancies cannot be filled from the Australian labor market or through training programs.


World-class infrastructure and communications


NSW offers reliable communications, transport, utilities, business support services and superior commercial property, at more competitive costs than other major Asian business centers.


In regional NSW, the NSW Government has increased business appeal by cutting power bills for regional businesses, reforming rail freight, reducing port charges and streamlining the land-use planning approvals process.


Sydney has a world-class telecommunications infrastructure. Four high-capacity international fibre-optic cable networks, with 1.2 terabit capacity, link Australia with the US, Europe and Asia. Sydney is also a major Internet exchange point and telecommunications hub. Competitive pricing and a choice of carriers make international call costs among the lowest in the region.


Asymmetric Digital Subscriber Line (ADSL) technology provides data speeds between 256 kbps to more than 2 Mbps, giving companies and homes access to Internet speeds 30 to 50 times faster than standard dial-up service.


The NSW Government is committed to providing an extensive, low cost wireless broadband network, initially to seven cities surrounding and including Sydney.


Educated workforce


NSW is home to a multilingual and well-educated workforce. In 2006, more than two million employees in NSW or 64% of the total held post-school qualifications.


More languages are spoken in NSW than in any other State, with almost 1.2 million residents speaking a language other than English at home in their homes as at the Census in 2001, and 91 per cent of them located in Sydney.


These language skills provide a cultural advantage for export-oriented Australian companies.




According to the NSW Government Department of Industry & Investment:


  • The NSW economy is larger than each of the national economies of Hong Kong SAR, Thailand, Malaysia, Singapore, the Philippines and New Zealand.


  • NSW has a diversified and knowledge-intensive economy that accounts for:
    • 44% of the Australia's finance and insurance industry
    • 38% of the property and business services industry
    • 36% of the cultural and recreational services industry
    • 35% of the communications industry
    • 32% of the manufacturing industry


  • NSW has the largest manufacturing industry in Australia, contributing $35.1 billion in 2007-08 to the State's economy. 


  • The NSW Government has triple-A credit ratings from both Moody's and Standard & Poor's, proof of the State's strong economic credentials. 


  • NSW is home to more than 65% of all Asia Pacific regional headquarters located in Australia as more than 600 companies recognize the State as the centre of Australian business. 




Growing Number of Contact Centers: About 1,680 contact centers operate 111,000 seats in NSW, 44% of the total for contact centers in Australia. NSW has a highly skilled and multilingual workforce, suitable for the location of international customer service centers.


Growing Financial Services Industry: Employment in the financial services industry in Sydney is now nearly half the size of London's and 40% the size of New York City's.



Current Investment Opportunities in Australia:


For current investment opportunities in Australia, please click here  :







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2)    Unknown, “NSW Economy”, Australian Government, 2010,

3)    Uknown, “Top 500 Companies in Australia”, Australian Government,

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5)    Unknown, “NSW Economy”, Australian Government, 2010,

6)    Unknown, “Summary of Australia's foreign investment policy”, Australian Government, April 2008,

7)    Editors, “Australia: Inward Investment Incentive Program”,, 2010,

8)    Editors, “Australia: Inward Investment Incentive Program”,, 2010,

9)    Unknown, “NSW Economy”, Australian Government, 2010,

10)  Unknown, “Industry & Investment NSW”, 2010,

11)  Unknown, “CIA World Factbook: Australia”, CIA, 2010,

12) Unknown, “Foreign Direct Investment Inflows”, Australian Government, 2010,

13)  Unknown, “Goods exported from Australia: top 30 destination countries, 2009–10p”, Australian Government Office of Economic & Statistical Research”, 2010,

14)  Unknown, “Top Commodity Exports of Australia”, Top Foreign Stocks, 2010,

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16)  Unknown, “Australia’s Culture”, Australian Government - Tourism, 2010,

17)  Unknown, “About Australia: People, Culture & Lifestyle”, Australian Government,

18) Unknown, “CIA World Factbook: Australia”, CIA, 2010,

19) Unknown, “Australian Facts & Figures”, Australia Travel, 2010,