QUEENSLAND & BRISBANE - Investment destination profile

The Queensland economy offers investors a sound, safe long-term investment climate. Queensland is projected to experience the largest percentage increase in population between 30 June 2007 and 2056, more than doubling the 2007 population of 4.2 million to 8.7 million people by 2056. As a result Queensland is projected to replace Victoria as Australia's second most populous state in 2050.

Brisbane is one of the major business hubs in Australia. Most major Australian companies, as well as numerous international companies, have contact offices in Brisbane, while numerous electronics businesses have distribution hubs in and around the city.

MARKET SIZE

In 2008-2009 Queensland’s Gross State Product (GSP) totaled A$209 billion (or approximately19% share of national).

KEY PLAYERS

Major Companies Located in Queensland

DHL Global

Asia Pacific

Suncorp-Metway Limited

Flight Centre

Sunsuper

Orrcon

Credit Union Australia

Boeing Australia

WebCentral

PIPE Networks

Krome Studios

NetBox Blue

Mincom Limited

Virgin Blue

Invest Queensland: http://www.investqueensland.com.au

GROWTH FIGURES AND FDI FIGURES

Queensland’s growth rate during 2008-2009 was 0.3%. This is of course due in part to the worldwide economic crisis.

KEY INVESTMENT AREAS

Key investment areas include:

Advanced Manufacturing: The industry offers strong and diverse capabilities across a range of established sectors, including engineering, machinery and equipment, transport equipment and food processing, as well as newer sectors with high growth potential, such as aerospace and electronics. The Queensland Government is committed to fostering long-term, sustainable manufacturing growth across these sectors.

Aviation & Aerospace: Queensland is an aviation and aerospace hub of the Asia Pacific region. After almost a decade of unprecedented industry growth, Queensland is now regarded as the:

Center for Australia's aerospace industry
Center for Australia's rotary wing (helicopter) industry
Center for Australia's aviation training services
Emerging centre for Australia's general aviation industry
Developing hub for research and development of emerging aviation technologies.

Biotechnology & Life Sciences: Queensland has world-leading capabilities in biotechnology, including health, medical, environmental, industrial and agricultural applications.

The State's renowned research and development base is supported by leading-edge platform technologies that include:

Bio-informatics
Genomics
Proteomics
Nanotechnology

Defense: Queensland has strong, diverse capabilities across a range of high value sectors, including aviation and aerospace, electronics, marine, engineering, construction, and machinery and equipment manufacturing.

Food Processing: Queensland is renowned as a location of choice for companies in the food industry.

Queensland's vibrant food industry is characterized by two broad, distinct categories:

Food processing and manufacturing includes fruit and vegetables, value-added products such as dairy foods, ingredients, desserts and confectionaries and ready-to-eat meals
Meat and meat product manufacturing includes meat and seafood

Games Development: Over the past two years the Queensland Government has facilitated the development of a strong and vibrant environment in which the local electronic games industry is flourishing.

ICT: Queensland has a dynamic and diverse information and communications technology (ICT) industry that is growing strongly. The State is home to approximately 5,600 information and communications technology (ICT) businesses.

Marine:

Queensland has a global reputation as a producer of quality marine vessels.

The State is home to a variety of marine industry companies that specialize in designing, building and maintaining vessels ranging from small recreational boats, motor cruisers, commercial and defense vessels through to luxury super yachts.

Mining Services:

Queensland is a global leader in the development of mines and is the world's largest exporter of coal. The State is also Australia's largest producer of base metals. Queensland is geographically close to the largest developing markets in the world and has a proven capability to provide quality resources via cost effective and efficient infrastructure.

Tourism:

Queensland is Australia's premier tourism destination. The State offers globally competitive products and services from well-established operators, yet there is still room for a range of new investment opportunities in accommodation, attractions, and transport and tour operations.

Venture Capital:

Queensland's world-class research, award-winning commercialization programs and entrepreneurial business culture have attracted a growing number of venture capital funds. This has positioned the State as an emerging financial centre, particularly in private business angel funds, public research funds and early stage venture capital, and increasingly in private equity.

FDI / INVESTMENT POLICY

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.

SPECIAL INCENTIVES

Regional Queensland Investment Incentives Scheme (RQIIS) provides financial incentives on a case-by-case basis and for targeted investment projects.

INVESTMENT DEALS

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)

RESOURCES

Invest Queensland: http://www.investqueensland.com.au

WHY INVEST IN QUEENSLAND AUSTRALIA

Brisbane is an attractive center of investment for world-wide businesses due to its:

Workforce

Queensland has a highly skilled, motivated, employment-ready workforce. The State's enviable lifestyle and low cost of living have been major drawcards for skilled people to migrate here, and for companies to retain their staff.

Government

The Queensland Government partners with industry to provide ongoing, through-life support. The Government has invested heavily in industry strategies, support plans and services for long-term economic development.

The Queensland Government, through Invest Queensland, recognizes the importance of continued investment and reinvestment by local, national and international companies. To facilitate this, support includes:

Access to Government experts across the business spectrum
Assistance to establish, develop and grow in Queensland
Streamlined processes to reduce 'red tape' delays.

Political stability

In addition to the State's stable economic environment, Queensland offers businesses one of the world's most stable political environments. In 2009, Australia was ranked as the second most politically stable country in the world, ahead of many major competitors.

Low Business Costs

Queensland offers businesses cost advantages comparable on a global scale. Benefits include:

Lowest rate of payroll tax in Australia
Competitive labor costs
Economical commercial and industrial property costs
Competitive utility costs
Low office rental costs.

Lifestyle

Queensland boasts world-renowned beaches, national parks, rainforests, reefs and a sub-tropical climate.

Queensland is one of the world's most livable cities thanks to these natural wonders and other benefits such as:

Low cost of living
Affordable housing
Impressive public transport
Vibrant arts and culture
Diverse sport and recreation
World-class education system and advanced health services
More than 300 days of sunshine a year

Infrastructure

Queensland has lead all other states in infrastructure spending since the 2005-2006 state budget with the latest 2009-2010 state budget being no exception to this. Over the past five years Queensland has invested over A$41.8 billion in infrastructure with the most recent budget commitment of A$18.2 billion. The Queensland Government is continuously upgrading hard infrastructure (transport, energy and water) while also supporting soft infrastructure development (telecommunications, innovation, research and development), the key to growing a knowledge-based economy.

FACTS

According to Invest Queensland:

Almost190,000 people are employed in manufacturing in Queensland.

Queensland's manufacturing industry generates over A$18.3 billion for the economy and experienced a 3.7% annual growth in the five years to June 2009.

The Port of Brisbane is the third-largest, fastest-growing, and most efficient major port in Australia.

The aviation, aerospace and defense industry contributes an estimated A$6 billion to the Queensland economy.

Queensland hosts approximately 90 core biotechnology companies and employs about 1,900 biotechnologists; approximately 66 biotechnology-related research institutes employ over 5,700 researchers.

Queensland is home to 21% of ADF personnel and employs over 13,000 people, making it the second-largest Defense employer nationally.

Queensland's food industry employs more than 43,000 people in the processed foods sector and contributes more than A$13 billion annually to the Queensland economy (both domestic and international sales). It includes more than 1,400 processing companies.

Queensland's games development sector employs approximately 700 people and made more than A$55.4 million is revenue in 2007-2008.

TRENDS

Demographic Trends: Queensland is projected to experience the largest percentage increase in population between 30 June 2007 and 2056, more than doubling the 2007 population of 4.2 million to 8.7 million people by 2056. As a result Queensland is projected to replace Victoria as Australia's second most populous state in 2050.

Falling business confidence hampers Queensland economy: A new report says business confidence has fallen sharply in the June quarter, although Queensland has come out slightly better than the rest of Australia.

Current Investment Opportunities in Australia:

For current investment opportunities in Australia, please click here : http://investinaustralia.com/current-opportunities

REFERENCES

1) Unknown, “Why Queensland: Economy”, Invest Queensland, 2010, http://www.investqueensland.qld.gov.au/dsdweb/v4/apps/web/content.cfm?id=12269.

2) Unknown, “Brisbane business visitor numbers skyrocket". Brisbane Marketing Convention Bureau, 2008, http://www.etravelblackboard.com/index.asp?id=73027&nav=13.

3) Unknown, “Why Queensland: Economy”, Invest Queensland, 2010, http://www.investqueensland.qld.gov.au/dsdweb/v4/apps/web/content.cfm?id=12269.

4) Unknown, “Why Queensland: Economy”, Invest Queensland, 2010, http://www.investqueensland.qld.gov.au/dsdweb/v4/apps/web/content.cfm?id=12269.

5) Unknown, “Why Queensland: Economy”, Invest Queensland, 2010, http://www.investqueensland.qld.gov.au/dsdweb/v4/apps/web/content.cfm?id=12269.

6) Unknown, “Foreign Investment Policy in Australia”, Australian Government, 2010, http://www.firb.gov.au/content/_downloads/Australia's_Foreign_Investment_Policy_September_2009.pdf.

7) Unknown, “Regional Queensland Investment Incentives Scheme”, Invest Queensland, 2010, http://www.investqueensland.com.au/dsdweb/v3/documents/objdirctrled/nonsecure/pdf/33390.pdf.

8) Unknown, “Australia: Inward Investment Incentive Program”, Australian Government, 2010, http://www.lowtax.net/lowtax/html/offon/australia/ausinc.html.

9) Unknown, “Why Queensland: Economy”, Invest Queensland, 2010, http://www.investqueensland.qld.gov.au/dsdweb/v4/apps/web/content.cfm?id=12269.

10) ‘Unknown, “Why Queensland: Economy”, Invest Queensland, 2010, http://www.investqueensland.qld.gov.au/dsdweb/v4/apps/web/content.cfm?id=12269.

11) Unknown, “Business uncertainty hampers Queensland economy, ABC Brisbane, http://www.abc.net.au/news/video/2010/07/29/2968299.htm.

12) Unknown, “CIA World Factbook: Australia”, CIA, 2010, https://www.cia.gov/library/publications/the-world-factbook/geos/as.html.

13) Unknown, “Foreign Direct Investment Inflows”, Australian Government, 2010, http://www.business.nsw.gov.au/aboutnsw/Trade+and+Investment/B7_foreign_dir_inv_inflow.htm.

14) Unknown, “Goods exported from Australia: top 30 destination countries, 2009–10p”, Australian Government Office of Economic & Statistical Research”, 2010, http://www.oesr.qld.gov.au/products/tables/goods-exported-aus-top30-destination/index.php.

15) Unknown, “Top Commodity Exports of Australia”, Top Foreign Stocks, 2010, http://topforeignstocks.com/2009/07/17/top-commodity-exports-of-australia.

16) Unknown, “Why Visit Australia?”, Love to Know-Travel, 2010, http://travel.lovetoknow.com/wiki/Why_Visit_Australia.

17) Unknown, “Australia’s Culture”, Australian Government - Tourism, 2010, http://www.australia.com/about/culture.aspx.

18) Unknown, “About Australia: People, Culture & Lifestyle”, Australian Government, http://www.dfat.gov.au/facts/people_culture.html.

19) Unknown, “CIA World Factbook: Australia”, CIA, 2010, https://www.cia.gov/library/publications/the-world-factbook/geos/as.html.

20) Unknown, “Australian Facts & Figures”, Australia Travel, 2010, http://www.australiatravelsearch.com.au/trc/facts.html.

21) Unknown, “Australian Facts & Figures”, Australia Travel, 2010, http://www.australiatravelsearch.com.au/trc/facts.html.