Doing Business 2019 Australia Economy Profile Australia Page 1 Doing Business 2019 Australia Economy Profile of Australia Doing Business 2019 Indicators (in order of appearance in the document) Starting a business Procedures, time, cost and paid-in minimum capital to start a limited liability company Dealing with construction permits Procedures, time and cost to complete all formalities to build a warehouse and the quality control and safety mechanisms in the construction permitting system Getting electricity Procedures, time and cost to get connected to the electrical grid, and the reliability of the electricity supply and the transparency of tariffs Registering property Procedures, time and cost to transfer a property and the quality of the land administration system Getting credit Movable collateral laws and credit information systems Protecting minority investors Minority shareholders’ rights in related-party transactions and in corporate governance Paying taxes Payments, time, total tax and contribution rate for a firm to comply with all tax regulations as well as post-filing processes Trading across borders Time and cost to export the product of comparative advantage and import auto parts Enforcing contracts Time and cost to resolve a commercial dispute and the quality of judicial processes Resolving insolvency Time, cost, outcome and recovery rate for a commercial insolvency and the strength of the legal framework for insolvency Labor market regulation Flexibility in employment regulation and aspects of job quality Page 2 Doing Business 2019 Australia About Doing Business The Doing Business project provides objective measures of business regulations and their enforcement across 190 economies and selected cities at the subnational and regional level. The Doing Business project, launched in 2002, looks at domestic small and medium-size companies and measures the regulations applying to them through their life cycle. Doing Business captures several important dimensions of the regulatory environment as it applies to local firms. It provides quantitative indicators on regulation for starting a business, dealing with construction permits, getting electricity, registering property, getting credit, protecting minority investors, paying taxes, trading across borders, enforcing contracts and resolving insolvency. Doing Business also measures features of labor market regulation. Although Doing Business does not present rankings of economies on the labor market regulation indicators or include the topic in the aggregate ease of doing business score or ranking on the ease of doing business, it does present the data for these indicators. By gathering and analyzing comprehensive quantitative data to compare business regulation environments across economies and over time, Doing Business encourages economies to compete towards more efficient regulation; offers measurable benchmarks for reform; and serves as a resource for academics, journalists, private sector researchers and others interested in the business climate of each economy. In addition, Doing Business offers detailed subnational reports, which exhaustively cover business regulation and reform in different cities and regions within a nation. These reports provide data on the ease of doing business, rank each location, and recommend reforms to improve performance in each of the indicator areas. Selected cities can compare their business regulations with other cities in the economy or region and with the 190 economies that Doing Business has ranked. The first Doing Business report, published in 2003, covered 5 indicator sets and 133 economies. This year’s report covers 11 indicator sets and 190 economies. Most indicator sets refer to a case scenario in the largest business city of each economy, except for 11 economies that have a population of more than 100 million as of 2013 (Bangladesh, Brazil, China, India, Indonesia, Japan, Mexico, Nigeria, Pakistan, the Russian Federation and the United States) where Doing Business also collected data for the second largest business city. The data for these 11 economies are a population-weighted average for the 2 largest business cities. The project has benefited from feedback from governments, academics, practitioners and reviewers. The initial goal remains: to provide an objective basis for understanding and improving the regulatory environment for business around the world. More about Doing Business (PDF, 5MB) Page 3 Doing Business 2019 Australia Ease of Doing Business in Region OECD high income DB 2019 Rank 190 1 Australia Income Category High income 18 DB 2019 Ease of doing business score Population 24,598,933 0 100 City Covered Sydney 80.13 DB 2019 Ease of Doing Business Score 0 100 86.59: New Zealand (Rank: 1) 82.75: United States (Rank: 8) 80.13: Australia (Rank: 18) 79.26: Canada (Rank: 22) 77.80: Regional Average (OECD high income) 75.65: Japan (Rank: 39) Note: The ease of doing business score captures the gap of each economy from the best regulatory performance observed on each of the indicators across all economies in the Doing Business sample since 2005. An economy’s ease of doing business score is reflected on a scale from 0 to 100, where 0 represents the lowest and 100 represents the best performance. The ease of doing business ranking ranges from 1 to 190. Rankings on Doing Business topics - Australia 7 8 5 1 9 20 26 28 52 50 55 64 82 Rank 103 109 136 163 190 Starting Dealing Getting Registering Getting Protecting Paying Trading Enforcing Resolving a with Electricity Property Credit Minority Taxes across Contracts Insolvency Business Construction Investors Borders Permits Ease of Doing Business Score on Doing Business topics - Australia 100 96.47 90.00 84.59 85.64 82.31 79.00 78.87 80 74.09 70.30 60.00 Score 60 40 20 0 Starting Dealing Getting Registering Getting Protecting Paying Trading Enforcing Resolving a with Electricity Property Credit Minority Taxes across Contracts Insolvency Business Construction Investors Borders Permits Page 4 Doing Business 2019 Australia Starting a Business This topic measures the number of procedures, time, cost and paid-in minimum capital requirement for a small- to medium-sized limited liability company to start up and formally operate in each economy’s largest business city. To make the data comparable across 190 economies, Doing Business uses a standardized business that is 100% domestically owned, has start-up capital equivalent to 10 times the income per capita, engages in general industrial or commercial activities and employs between 10 and 50 people one month after the commencement of operations, all of whom are domestic nationals. Starting a Business considers two types of local limited liability companies that are identical in all aspects, except that one company is owned by 5 married women and the other by 5 married men. The ranking of economies on the ease of starting a business is determined by sorting their scores for starting a business. These scores are the simple average of the scores for each of the component indicators. The most recent round of data collection for the project was completed in May 2018. See the methodology for more information. What the indicators measure Case study assumptions Procedures to legally start and formally operate To make the data comparable across economies, several assumptions about the a company (number) business and the procedures are used. It is assumed that any required information is readily available and that the entrepreneur will pay no bribes. • Preregistration (for example, name verification or reservation, notarization) The business: • Registration in the economy’s largest business - Is a limited liability company (or its legal equivalent). If there is more than one type city of limited liability company in the economy, the most common among domestic firms • Postregistration (for example, social security is chosen. Information on the most common form is obtained from incorporation registration, company seal) lawyers or the statistical office. - Operates in the economy’s largest business city. For 11 economies the data are • Obtaining approval from spouse to start a also collected for the second largest business city. business or to leave the home to register the - The entire office space is approximately 929 square meters (10,000 square feet). company - Is 100% domestically owned and has five owners, none of whom is a legal entity; • Obtaining any gender specific document for has a start-up capital of 10 times income per capita and has a turnover of at least company registration and operation or national 100 times income per capita. identification card - Performs general industrial or commercial activities, such as the production or sale of goods or services to the public. The business does not perform foreign trade Time required to complete each procedure activities and does not handle products subject to a special tax regime, for example, (calendar days) liquor or tobacco. It does not use heavily polluting production processes. • Does not include time spent gathering - Leases the commercial plant or offices and is not a proprietor of real estate and the information amount of the annual lease for the office space is equivalent to the income per capita. • Each procedure starts on a separate day (2 - Does not qualify for investment incentives or any special benefits. procedures cannot start on the same day) - Has at least 10 and up to 50 employees one month after the commencement of • Procedures fully completed online are recorded operations, all of whom are domestic nationals. as ½ day - Has a company deed that is 10 pages long. • Procedure is considered completed once final The owners: document is received - Have reached the legal age of majority. If there is no legal age of majority, they are • No prior contact with officials assumed to be 30 years old. Cost required to complete each procedure (% of - Are sane, competent, in good health and have no criminal record. income per capita) - Are married and the marriage is monogamous and registered with the authorities. - Where the answer differs according to the legal system applicable to the woman or • Official costs only, no bribes man in question (as may be the case in economies where there is legal plurality), the • No professional fees unless services required by answer used will be the one that applies to the majority of the population. law or commonly used in practice Paid-in minimum capital (% of income per capita) • Funds deposited in a bank or with third party before registration or up to 3 months after incorporation Page 5 Doing Business 2019 Australia Starting a Business - Australia Standardized Company Legal form Proprietary Company (Pty Ltd) Paid-in minimum capital requirement AUD 0 City Covered Sydney Indicator Australia OECD high Best Regulatory income Performance Procedure – Men (number) 3 4.9 1 (New Zealand) Time – Men (days) 2.5 9.3 0.5 (New Zealand) Cost – Men (% of income per capita) 0.7 3.1 0.0 (Slovenia) Procedure – Women (number) 3 4.9 1 (New Zealand) Time – Women (days) 2.5 9.3 0.5 (New Zealand) Cost – Women (% of income per capita) 0.7 3.1 0.0 (Slovenia) Paid-in min. capital (% of income per capita) 0.0 8.6 0.0 (117 Economies) Figure – Starting a Business in Australia and comparator economies – Ranking and Score DB 2019 Starting a Business Score 0 100 99.98: New Zealand (Rank: 1) 98.23: Canada (Rank: 3) 96.47: Australia (Rank: 7) 91.23: United States (Rank: 53) 91.19: Regional Average (OECD high income) 86.10: Japan (Rank: 93) Note: The ranking of economies on the ease of starting a business is determined by sorting their scores for starting a business. These scores are the simple average of the scores for each of the component indicators. Page 6 Doing Business 2019 Australia Figure – Starting a Business in Australia – Procedure, Time and Cost Time (days) Cost (% of income per capita) 2.5 0.8 0.7 Cost (% of income per capita) 2 0.6 Time (days) 0.5 1.5 0.4 1 0.3 0.2 0.5 0.1 0 0 1 2 3 Procedures (number) * This symbol is shown beside procedure numbers that take place simultaneously with the previous procedure. Note: Online procedures account for 0.5 days in the total time calculation. For economies that have a different procedure list for men and women, the graph shows the time for women. For more information on methodology, see the Doing Business website (http://doingbusiness.org/en/methodology). For details on the procedures reflected here, see the summary below. Page 7 Doing Business 2019 Australia Details – Starting a Business in Australia – Procedure, Time and Cost No. Procedures Time to Complete Associated Costs 1 Complete and lodge ASIC Form 201 “Application for Registration as an 1 day AUD 479 Australian Company"; Obtain a certificate of incorporation and an Australian company number (ACN) Agency : Australian Securities and Investments Commission (ASIC) To register a Pty Ltd company, the applicant must complete and submit an ASIC Form 201 (""Application for Registration as an Australian Company"") and pay the prescribed fee. Any person to be appointed as a director or secretary of the company must have consented in writing to that appointment. Similarly, each shareholder of the company must have consented to become a shareholder. At least 1 director (and, if the company has appointed secretaries, at least 1 secretary) must ordinarily reside in Australia. The registered office of the company must be an address in Australia. The company may adopt its own constitution or rely upon the Replaceable Rules in the Corporations Act 2001. Prior to lodging the application for registration, the applicant should confirm the availability of the proposed company name. If no name is specified, the company will simply be referred to by its Australian Company Number (""ACN""). Upon incorporation, ASIC will issue to the company a certificate of incorporation, which evidenced that the company has been incorporated on and from the date of issue. 2 Register for ABN with the Australian Taxation Office (ATO) Less than one day no charge Agency : Australian Taxation Office (online procedure) This procedure is required under the Income Tax Assessment Act 1936 and the New Tax System (Goods and Services Tax) Act of 1999. Depending on the company's circumstances and location, it must comply with different taxation requirements: - If the annual company turnover is AUD$75,000 or more, the company must register for Goods and Services Tax (GST) by obtaining an 11-digit Australian Business Number (ABN). The annual company turnover represents its gross business income (not its profit). Companies with lower annual turnover may also choose to register for the Goods and Services Tax. - The application to ABN can be submitted electronically at the Business Entry Point, www.abr.gov.au. If the electronic submission is successful, the applicant will be provided with an ABN at the end of the Internet session. Alternatively, a hard copy application may be submitted to the ATO. The ATO will then mail the ABN within 28 days of receiving the application. A public officer must be appointed upon registration, to deal with the company's tax affairs. -The company must deduct taxes from employee pay, provide payment summaries, contribute to employee superannuation and report and issue payments to the ATO. Companies may also register for Pay As You Go (PAYG) at www.abr.gov.au. Otherwise, they may register with the ATO by postal mail or phone or through a tax agent. State and territory taxes (e.g., stamp duty, payroll tax, and land tax) may also be imposed, with requirements differing according to company location. - Companies with annual turnover of AUD$75,000 or more must register for an ABN. Failure to do so will result in GST being levied on all company sales since the required date of registration even if the sale price of any goods or services has not been grossed up to include the tax. Furthermore, the company may incur penalties and interest charges for any overdue payments. - Further information in connection with ABN, GST and PAYG registration may be found on the ATO website (www.ato.gov.au). 3 Sign up for Worker Compensation Insurance at an insurance agency 1 day no charge Agency : Workers Compensation Insurance The Workers Compensation Act of 1987 and the Workplace Injury Management and Workers Compensation Act of 1998 state that the worker compensation insurance is a compulsory requirement for employers in Australia. The premium rate is based on description of the company’s main business. Takes place simultaneously with previous procedure. Page 8 Doing Business 2019 Australia Dealing with Construction Permits This topic tracks the procedures, time and cost to build a warehouse—including obtaining necessary the licenses and permits, submitting all required notifications, requesting and receiving all necessary inspections and obtaining utility connections. In addition, the Dealing with Construction Permits indicator measures the building quality control index, evaluating the quality of building regulations, the strength of quality control and safety mechanisms, liability and insurance regimes, and professional certification requirements. The most recent round of data collection was completed in May 2018. See the methodology for more information What the indicators measure Case study assumptions Procedures to legally build a warehouse To make the data comparable across economies, several assumptions about the (number) construction company, the warehouse project and the utility connections are used. • Submitting all relevant documents and obtaining The construction company (BuildCo): all necessary clearances, licenses, permits and certificates - Is a limited liability company (or its legal equivalent) and operates in the economy’s largest business city. For 11 economies the data are also collected for the second • Submitting all required notifications and receiving largest business city. all necessary inspections - Is 100% domestically and privately owned; has five owners, none of whom is a • Obtaining utility connections for water and legal entity. Has a licensed architect and a licensed engineer, both registered with sewerage the local association of architects or engineers. BuildCo is not assumed to have any other employees who are technical or licensed experts, such as geological or • Registering and selling the warehouse after its topographical experts. completion - Owns the land on which the warehouse will be built and will sell the warehouse Time required to complete each procedure upon its completion. (calendar days) The warehouse: • Does not include time spent gathering - Will be used for general storage activities, such as storage of books or stationery. information - Will have two stories, both above ground, with a total constructed area of • Each procedure starts on a separate day— approximately 1,300.6 square meters (14,000 square feet). Each floor will be 3 though procedures that can be fully completed meters (9 feet, 10 inches) high and will be located on a land plot of approximately online are an exception to this rule 929 square meters (10,000 square feet) that is 100% owned by BuildCo, and the • Procedure is considered completed once final warehouse is valued at 50 times income per capita. document is received - Will have complete architectural and technical plans prepared by a licensed architect. If preparation of the plans requires such steps as obtaining further • No prior contact with officials documentation or getting prior approvals from external agencies, these are counted as procedures. Cost required to complete each procedure (% of - Will take 30 weeks to construct (excluding all delays due to administrative and income per capita) regulatory requirements). • Official costs only, no bribes The water and sewerage connections: Building quality control index (0-15) - Will be 150 meters (492 feet) from the existing water source and sewer tap. If there • Quality of building regulations (0-2) is no water delivery infrastructure in the economy, a borehole will be dug. If there is no sewerage infrastructure, a septic tank in the smallest size available will be • Quality control before construction (0-1) installed or built. • Quality control during construction (0-3) - Will have an average water use of 662 liters (175 gallons) a day and an average • Quality control after construction (0-3) wastewater flow of 568 liters (150 gallons) a day. Will have a peak water use of 1,325 liters (350 gallons) a day and a peak wastewater flow of 1,136 liters (300 • Liability and insurance regimes (0-2) gallons) a day. • Professional certifications (0-4) - Will have a constant level of water demand and wastewater flow throughout the year; will be 1 inch in diameter for the water connection and 4 inches in diameter for the sewerage connection. Page 9 Doing Business 2019 Australia Dealing with Construction Permits - Australia Standardized Warehouse Estimated value of warehouse AUD 3,470,682.70 City Covered Sydney Indicator Australia OECD high Best Regulatory income Performance Procedures (number) 11 12.7 None in 2017/18 Time (days) 121 153.1 None in 2017/18 Cost (% of warehouse value) 0.7 1.5 None in 2017/18 Building quality control index (0-15) 14.0 11.5 15.0 (3 Economies) Figure – Dealing with Construction Permits in Australia and comparator economies – Ranking and Score DB 2019 Dealing with Construction Permits Score 0 100 86.40: New Zealand (Rank: 6) 84.59: Australia (Rank: 9) 77.88: United States (Rank: 26) 75.41: Regional Average (OECD high income) 74.95: Japan (Rank: 44) 72.98: Canada (Rank: 63) Note: The ranking of economies on the ease of dealing with construction permits is determined by sorting their scores for dealing with construction permits. These scores are the simple average of the scores for each of the component indicators. Figure – Dealing with Construction Permits in Australia – Procedure, Time and Cost Time (days) Cost (% of warehouse value) 120 0.4 0.35 Cost (% of warehouse value) 100 0.3 80 Time (days) 0.25 60 0.2 0.15 40 0.1 20 0.05 0 0 1 *2 3 4 5 6 7 8 9 10 11 Procedures (number) * This symbol is shown beside procedure numbers that take place simultaneously with the previous procedure. Note: Online procedures account for 0.5 days in the total time calculation. For economies that have a different procedure list for men and women, the graph shows the time for women. For more information on methodology, see the Doing Business website (http://doingbusiness.org/en/methodology). For details on the procedures reflected here, see the summary below. Page 10 Doing Business 2019 Australia Figure – Dealing with Construction Permits in Australia and comparator economies – Measure of Quality 15.0 15 14.0 14.0 11.0 11.2 11.5 Index score 10 5 0 Australia Canada Japan New Zealand United States OECD high income Details – Dealing with Construction Permits in Australia – Procedure, Time and Cost No. Procedures Time to Complete Associated Costs 1 Obtain a Site Survey/Analysis Plan 21 days AUD 4,000 Agency : Private surveyor One of the mandatory requirement to obtain a building permit is to submit a Site Survey/Analysis Plan . 2 Verify if a development application is required 1 day no charge Agency : Local Council It is the responsibility of the applicant to contact a planner at the nearest Council Location before preparing a Development Application (DA), to check: * whether the proposed development is permissible; * whether a DA is required; and * how the City's planning instruments - plans, codes and policies - affect the proposed development. BuildCo should ensure that the relevant planning controls have been identified and satisfied. There are a range of planning instruments that apply to various types of development and locations within Sydney. Most environmental and planning law in Australia varies from one Australian state to another. In Sydney, in the state of New South Wales, development will generally be assessed under one of the regimes in the Environmental Planning and Assessment Act 1979 (Planning Act). The warehouse to be constructed by BuildCo is most likely to fall under Part 4 of the Planning Act and will most likely require development consent from the relevant local council. The Planning Act provides that, for certain types of development, the concurrence of an authority other than the consent authority must be obtained. The conditions for approval of development assessed under Part 4 may also require the developer to obtain further certificates or approvals. These will add cost and time. The council's local environment plan (LEP) usually identifies whether development consent is required. The LEP categorizes development as requiring consent, not requiring consent, or prohibited. In most cases, the zoning of the site determines the types of development permitted on the land. Note that the construction of a warehouse is a type of development that almost always requires consent. If the development requires development consent, the local council will usually be the consent authority. However, in some cases, another authority (such as a State minister) may be the consent authority. Page 11 Doing Business 2019 Australia 3 File development application with consent authority 49 days AUD 6,708 Agency : Local Council It is a legal requirement to submit digital copies of plans and the following supporting documentation - A4 plan for notification purposes (3 copies) - Survey plan (7 copies + 3 A4 copies) - Site plan (7 copies + 3 A4 copies) - Floor plan (existing and proposed), elevation plan, section plan, shadow diagrams, subdivision plan, landscaping plan (7 copies + 3 A4 copies each) - Model - Computer model - Efficient use of resources commitment table (7 copies) - green star rating - Basix certiciate (2 copies) - Design excellence map - Exceptions to development standards (if applicable - 7 copies each) - Statement of environmental effects (7 copies including 1 unbound copy) - Erosion and sediment control plan (7 copies) - Stormwater managemenet plan (7 copies) - Waste management plan (7 copies including 1 unbound copy), If the assessment is satisfactory, the consent authority will grant BuildCo development consent, which may be subject to conditions. The Development Application will be advertised for approximately 21 days to give the surrounding neighbors the opportunity to contest the planned development in that area. Once the advertising period is over, it will typically take 6 weeks for the development certificate to be issued. 4 Apply for a construction certificate 21 days AUD 11,716 Agency : Sydney City Council After a Development Consent has been issued by the Local Council and before any building work is carried out, the owner must apply for and obtain a Construction Certificate. This certificate states that building work may commence on an approved development, and complies with the terms of the Development Consent and the Building Code of Australia. Construction Certificates are either issued by Council, or independent accredited certifiers (PCA - Principle Certifying Authorities). A Construction Certificate cannot be issued without obtaining prior development consent for that development. Items required include: - Development consent compliance statement (5 copies) - Plans (5 copies) - Colored plans (5 copies) - Survey plans (5 copies) - Site plan (5 copies) - Floor plan (5 copies) - Elevation plan (5 copies) - Section plan (5 copies) - Specifications (2 copies) - Fire safety measures schedule (5 copies) - Home Building Act requirements The PCA will also provide a list of mandatory inspections that need to be carried. 5 Apply for approval of building/development plans by Sydney Water Quick 1 day AUD 66 Check Agent Agency : Sydney Water Before any construction work can be done, BuildCo must request connection and building plan approvals, service plans and diagrams online using Sydney Water Tap In website or by visiting the Sydney Water Quick Check Agent to verify that the proposed building work will not affect a Sydney Water asset (water supply pipe and/or drainage pipe). The documents that must be provided are: • A full set of building plans • A site plan to a recognized scale (e.g. 1:500) that shows the full site and the relationship of the proposed building works to the full site (the location on the lot where the building works will take place must be clearly identified) or submit dimensions using the online tool of the Sydney Water Tap In website 6 Notify Hill Shire City Council of Commencement of work and appoint Hill 1 day no charge Shire City Council as PCA Agency : Hill Shire City Council The builder will submit a “Notice of Commencement of Building or Subdivision Work” form and Appointment of Council as Principal Certifying Authority under Sections 81A(2)(b)(i),(c), or (4)(b)(i),(c), 86(1)and (2) and 109E of the Environmental Planning and Assessment Act 1979. This form is submitted only when the City of Sydney is retained as the Principal Certifying Authority (PCA). Page 12 Doing Business 2019 Australia 7 Receive the commencement of building work inspection 1 day AUD 270 Agency : Hill Shire City Council Once a PCA is appointed, it is his responsibility to provide to the applicant a list of the mandatory critical stage inspections (in accordance to Clause 162A of the Environmental Planning and Assessment Regulation 2000) and any other inspections (determined by the PCA) that will be required during construction of the building. The builder needs to be aware of these inspections as they need to be carried out at the appropriate time. It is the responsibility of the builder to contact the PCA at least 48 hours before an inspection is required. Inspections during construction ensure that the construction is consistent with what has been approved in the development consent and construction certificate, and that the building will meet acceptable standards of health, safety and amenity. Mandatory critical stage inspections are set according to the building class. For the case study of Doing Business, the warehouse is a class 7 building. In the case of a class 5, 6, 7, 8 or 9 building, the building work on the development site must be inspected: • At the commencement of building work • Prior to covering any storm water drainage connections • After the building work has been completed and prior to any occupation certificate can be issued in relation to the building The cost of inspection when Sydney City Council is the PCA is AUD 309.00 per inspection including 10% GST. However, Doing Business does not include GST in its calculation. 8 Receive inspection prior to covering any stormwater drainage connections 1 day AUD 270 Agency : Hill Shire City Council A second mandatory inspection prior to covering any storm water drainage connections is conducted by the PCA to ensure compliance with the Construction Certificate. 9 Request and receive connection to water and sewage services 10 days AUD 1,347 Agency : Sydney Water To receive a connection to water and sewage services, BuildCo must first select a water-servicing coordinator. The coordinator requests a Section 73 Compliance Certificate (for water and sewerage infrastructure) from Sydney Water on BuildCo’s behalf. Sydney Water issues a notice of requirements to the coordinator within 10 days of application receipt (or longer if the development is complex). The notice specifies charges to be paid and the project to be built. If construction is required, certification will depend on the time required for the project to be built and taken over by Sydney Water. BuildCo pays the fees, builds the project, and receives the certificate. Fee schedule for water and sewage connection: • Water (including works): Up to AUD 1215.00 • Sewage (assuming that infrastructure exists): AUD 132.00 10 Request the occupation certificate 1 day no charge Agency : Hill Shire City Council The authority that has approved the development may monitor the finished development to ensure compliance with laws and local planning policies. If the development does not comply with the development consent, the applicant can be fined (with a penalty notice), ordered to make changes to the development, or taken to the Land and Environment Court of New South Wales. The court may issue orders to remedy or restrain breaches of the development consent (e.g. orders to carry out works, cease certain uses of the premises, or remove the development). In addition, breaches of planning laws may be criminal offences. New South Wales planning legislation allows any person to bring an action to remedy or restrain a breach of development consent. Thus, in theory, any person may commence proceedings to enforce compliance with the law (a) if a relevant approval (such as a development consent or construction certificate) has not been obtained where required; or (b) if there has been non-compliance with the conditions of a relevant approval. Page 13 Doing Business 2019 Australia 11 Receive final inspection by PCA and obtain the final occupation certificate 15 days AUD 535 (OC) Agency : Hill Shire City Council An occupation certificate is issued by the appointed Principal Certifying Authority (PCA) under the Environmental Planning and Assessment Act 1979 allowing a building to be used and occupied. This certificate verifies that the PCA is satisfied that the building is suitable to be occupied and used according to the requirements of the Building Code of Australia (BCA). That Code sets required standards for the design and construction of various classes of building to protect health, safety and amenity. There are two types of occupation certificates: • A final occupation certificate allows commencement of either the occupation or use of a new building (including alterations or extensions), or the new use of an existing building resulting from a change of its use • An interim occupation certificate allows the commencement of either the occupation or use of partially completed building, or of a new use of part of an existing building resulting from a change of use for the building An occupation certificate is required for any new building work or change of use of a building that has a development consent or a complying development certificate under the EP&A Act. Takes place simultaneously with previous procedure. Page 14 Doing Business 2019 Australia Details – Dealing with Construction Permits in Australia – Measure of Quality Answer Score Building quality control index (0-15) 14.0 Quality of building regulations index (0-2) 2.0 How accessible are building laws and regulations in your economy? (0-1) Available online; 1.0 Free of charge. Which requirements for obtaining a building permit are clearly specified in the building List of required 1.0 regulations or on any accessible website, brochure or pamphlet? (0-1) documents; Fees to be paid; Required preapprovals. Quality control before construction index (0-1) 1.0 Which third-party entities are required by law to verify that the building plans are in Licensed 1.0 compliance with existing building regulations? (0-1) architect; Licensed engineer; Private firm. Quality control during construction index (0-3) 3.0 What types of inspections (if any) are required by law to be carried out during construction? Inspections by 2.0 (0-2) external engineer or firm; Inspections at various phases; Risk-based inspections. Do legally mandated inspections occur in practice during construction? (0-1) Mandatory 1.0 inspections are always done in practice. Quality control after construction index (0-3) 3.0 Is there a final inspection required by law to verify that the building was built in accordance Yes, external 2.0 with the approved plans and regulations? (0-2) engineer submits report for final inspection. Do legally mandated final inspections occur in practice? (0-1) Final inspection 1.0 always occurs in practice. Liability and insurance regimes index (0-2) 1.0 Which parties (if any) are held liable by law for structural flaws or problems in the building Architect or 1.0 once it is in use (Latent Defect Liability or Decennial Liability)? (0-1) engineer; Construction company. Which parties (if any) are required by law to obtain an insurance policy to cover possible No party is 0.0 structural flaws or problems in the building once it is in use (Latent Defect Liability Insurance required by law or Decennial Insurance)? (0-1) to obtain insurance . Professional certifications index (0-4) 4.0 What are the qualification requirements for the professional responsible for verifying that the Minimum number 2.0 architectural plans or drawings are in compliance with existing building regulations? (0-2) of years of experience; University degree in architecture or engineering; Being a registered architect or engineer; Passing a certification exam. Page 15 Doing Business 2019 Australia What are the qualification requirements for the professional who supervises the construction Minimum number 2.0 on the ground? (0-2) of years of experience; University degree in engineering, construction or construction management; Being a registered architect or engineer. Page 16 Doing Business 2019 Australia Getting Electricity This topic measures the procedures, time and cost required for a business to obtain a permanent electricity connection for a newly constructed warehouse. Additionally, the reliability of supply and transparency of tariffs index measures reliability of supply, transparency of tariffs and the price of electricity. The most recent round of data collection for the project was completed in May 2018. See the methodology for more information. What the indicators measure Case study assumptions Procedures to obtain an electricity connection To make the data comparable across economies, several assumptions about the (number) warehouse, the electricity connection and the monthly consumption are used. • Submitting all relevant documents and obtaining The warehouse: all necessary clearances and permits - Is owned by a local entrepreneur and is used for storage of goods. • Completing all required notifications and - Is located in the economy’s largest business city. For 11 economies the data are receiving all necessary inspections also collected for the second largest business city. • Obtaining external installation works and possibly - Is located in an area where similar warehouses are typically located and is in an purchasing material for these works area with no physical constraints. For example, the property is not near a railway. - Is a new construction and is being connected to electricity for the first time. • Concluding any necessary supply contract and - Has two stories with a total surface area of approximately 1,300.6 square meters obtaining final supply (14,000 square feet). The plot of land on which it is built is 929 square meters Time required to complete each procedure (10,000 square feet). (calendar days) The electricity connection: • Is at least 1 calendar day - Is a permanent one with a three-phase, four-wire Y connection with a subscribed • Each procedure starts on a separate day capacity of 140-kilo-volt-ampere (kVA) with a power factor of 1, when 1 kVA = 1 kilowatt (kW). • Does not include time spent gathering information - Has a length of 150 meters. The connection is to either the low- or medium-voltage distribution network and is either overhead or underground, whichever is more • Reflects the time spent in practice, with little common in the area where the warehouse is located and requires works that involve follow-up and no prior contact with officials the crossing of a 10-meter road (such as by excavation or overhead lines) but are all carried out on public land. There is no crossing of other owners’ private property Cost required to complete each procedure (% of because the warehouse has access to a road. income per capita) - Does not require work to install the internal wiring of the warehouse. This has • Official costs only, no bribes already been completed up to and including the customer’s service panel or switchboard and the meter base. • Value added tax excluded The reliability of supply and transparency of The monthly consumption: tariffs index (0-8) - It is assumed that the warehouse operates 30 days a month from 9:00 a.m. to 5:00 • Duration and frequency of power outages (0–3) p.m. (8 hours a day), with equipment utilized at 80% of capacity on average and that there are no electricity cuts (assumed for simplicity reasons) and the monthly energy • Tools to monitor power outages (0–1) consumption is 26,880 kilowatt-hours (kWh); hourly consumption is 112 kWh. • Tools to restore power supply (0–1) - If multiple electricity suppliers exist, the warehouse is served by the cheapest supplier. • Regulatory monitoring of utilities’ performance (0–1) - Tariffs effective in January of the current year are used for calculation of the price of electricity for the warehouse. Although January has 31 days, for calculation • Financial deterrents limiting outages (0–1) purposes only 30 days are used. • Transparency and accessibility of tariffs (0–1) Price of electricity (cents per kilowatt-hour)* • Price based on monthly bill for commercial warehouse in case study *Note: Doing Business measures the price of electricity, but it is not included in the ease of doing business score nor the ranking on the ease of getting electricity. Page 17 Doing Business 2019 Australia Getting Electricity - Australia Standardized Connection Price of electricity (US cents per kWh) 23.1 Name of utility Ausgrid City Covered Sydney Indicator Australia OECD high Best Regulatory income Performance Procedures (number) 5 4.5 3 (25 Economies) Time (days) 75 77.2 18 (3 Economies) Cost (% of income per capita) 12.5 64.2 0.0 (3 Economies) Reliability of supply and transparency of tariff index (0-8) 7 7.5 8.0 (27 Economies) Figure – Getting Electricity in Australia and comparator economies – Ranking and Score DB 2019 Getting Electricity Score 0 100 89.88: Japan (Rank: 22) 85.47: Regional Average (OECD high income) 83.98: New Zealand (Rank: 45) 82.31: Australia (Rank: 52) 82.15: United States (Rank: 54) 63.78: Canada (Rank: 121) Note: The ranking of economies on the ease of getting electricity is determined by sorting their scores for getting electricity. These scores are the simple average of the scores for all the component indicators except the price of electricity. Page 18 Doing Business 2019 Australia Figure – Getting Electricity in Australia – Procedure, Time and Cost Time (days) Cost (% of income per capita) 8 70 7 Cost (% of income per capita) 60 6 50 Time (days) 5 40 4 30 3 20 2 10 1 0 0 1 2 3 4 5 Procedures (number) * This symbol is shown beside procedure numbers that take place simultaneously with the previous procedure. Note: Online procedures account for 0.5 days in the total time calculation. For economies that have a different procedure list for men and women, the graph shows the time for women. For more information on methodology, see the Doing Business website (http://doingbusiness.org/en/methodology). For details on the procedures reflected here, see the summary below. Figure – Getting Electricity in Australia and comparator economies – Measure of Quality 8 8 7.5 7 7 7.2 7 6 6 Index score 5 4 3 2 1 0 Australia Canada Japan New Zealand United States OECD high income Page 19 Doing Business 2019 Australia Details – Getting Electricity in Australia – Procedure, Time and Cost No. Procedures Time to Complete Associated Costs 1 Submit application to Ausgrid, receive job number and estimate and make 52 calendar days AUD 275 payment Agency : Ausgrid The connection application can be obtained and submitted via website, email or fax. The majority of interaction by contractors and service providers is undertaken via email or the website. Premises Connection Requirements are detailed in the "ES1" document. This document also includes an application for CT metering for use where required. There is a range of information required on the connection application form relating to details of the connection customer, the intended load to be connected, the intended point of connection and details of the electrical contractor / customer's representative. Ausgrid will assess the electrical load to be connected. In this instance, a load above 100Amps per phase connected directly to the street network, Ausgrid will issue a "Basic Connection Offer - over 100Amps" (a connection contract) within 10 business days which details the conditions under which Ausgrid will permit the connection and the range of Ausgrid fees that are likely to apply associated with making the connection. The connection applicant has 45 business days to accept the connection offer. Once the connection offer is accepted (includes acceptance of Ausgrid gees), Ausgrid will provided a "Job Number" which enables the Accredited Service Provider (ASP) to obtain an energy meter from Ausgrid. An NMI number (National Market Identifier) will also be provided for use by the applicant when entering into a contract with an energy retailer for the supply of electricity. It is not normally advisable to commence work until the connection offer has been issued / accepted and job number / NMI issued. 2 Hire accredited service provider to carry out external works 11 calendar days AUD 5,152.9 Agency : Accredited Service Provider The customer engages a private Accredited Service Provider (ASP). The ASP does all the connection works from the network to the point of attachment to the premises (consumer's terminals), including installing the energy meter. Once completed, the ASP submits a Notification of Service Work (NOSW) detailing the connection works undertaken. 3 Submit CT Metering form to utility 1 calendar day AUD 0 Agency : Ausgrid Service requiring metering of supplies above 100amps needs to submit the CT Metering Application form prior to energizing any new services. The form is used to capture data that is unique to the CT installation site such as • the retailer • customer’s details • electrical contractor • metering provider • ALL existing metering to be removed As the information must be confirmed prior to the energisation of the site and may take up to ten days to process, to avoid delay, it is suggested that the details in CT Metering Application form be submitted as soon as possible. Prior submission of a completed CT Metering form is necessary to enable energisation of the installation. 4 Submit CCEW to Ausgrid so they can undertake an audit inspection of 7 calendar days AUD 0 electrical installation. Agency : Ausgrid The Electrical Contractor undertaking the electrical installation work associated with the premises submits a Certificate of Compliance Electrical Work (CCEW) to the electricity utility once the work is completed. The utility will undertake an audit inspection of electrical installation. 5 Obtain meter installation by meter provider and receive electricity flow 4 calendar days AUD 3,221 Agency : Meter provider The customer requests Ausgrid (or an Accredited Service Provider) to install the meter. Meter may be installed at the same time than the internal/external installation inspection (but not necessarily). At the completion of the installation inspection the service is energized and electricity starts flowing. Takes place simultaneously with previous procedure. Page 20 Doing Business 2019 Australia Details – Getting Electricity in Australia – Measure of Quality Answer Reliability of supply and transparency of tariff index (0-8) 7 Total duration and frequency of outages per customer a year (0-3) 2 System average interruption duration index (SAIDI) 1.2 System average interruption frequency index (SAIFI) 0.6 What is the minimum outage time (in minutes) that the utility considers for the calculation of SAIDI/SAIFI 1.0 Mechanisms for monitoring outages (0-1) 1 Does the distribution utility use automated tools to monitor outages? Yes Mechanisms for restoring service (0-1) 1 Does the distribution utility use automated tools to restore service? Yes Regulatory monitoring (0-1) 1 Does a regulator—that is, an entity separate from the utility—monitor the utility’s performance on reliability of Yes supply? Financial deterrents aimed at limiting outages (0-1) 1 Does the utility either pay compensation to customers or face fines by the regulator (or both) if outages Yes exceed a certain cap? Communication of tariffs and tariff changes (0-1) 1 Are effective tariffs available online? Yes Link to the website, if available online https://www.originen ergy.com.au/content/ dam/origin/business/ Documents/energy- price-fact- sheets/nsw/1July201 7/NSW_Electricity_S mall%20Business_A usGrid_Standard%2 0Published%20Rate. PDF Are customers notified of a change in tariff ahead of the billing cycle? Yes Note: If the duration and frequency of outages is 100 or less, the economy is eligible to score on the Reliability of supply and transparency of tariff index. If the duration and frequency of outages is not available, or is over 100, the economy is not eligible to score on the index. If the minimum outage time considered for SAIDI/SAIFI is over 5 minutes, the economy is not eligible to score on the index. Page 21 Doing Business 2019 Australia Registering Property This topic examines the steps, time and cost involved in registering property, assuming a standardized case of an entrepreneur who wants to purchase land and a building that is already registered and free of title dispute. In addition, the topic also measures the quality of the land administration system in each economy. The quality of land administration index has five dimensions: reliability of infrastructure, transparency of information, geographic coverage, land dispute resolution, and equal access to property rights. The most recent round of data collection for the project was completed in May 2018. See the methodology for more information. What the indicators measure Case study assumptions Procedures to legally transfer title on To make the data comparable across economies, several assumptions about the immovable property (number) parties to the transaction, the property and the procedures are used. • Preregistration procedures (for example, The parties (buyer and seller): checking for liens, notarizing sales agreement, paying property transfer taxes) - Are limited liability companies (or the legal equivalent). - Are located in the periurban area of the economy’s largest business city. For 11 • Registration procedures in the economy's largest economies the data are also collected for the second largest business city. business city. - Are 100% domestically and privately owned. • Postregistration procedures (for example, filling - Have 50 employees each, all of whom are nationals. title with municipality) - Perform general commercial activities. Time required to complete each procedure The property (fully owned by the seller): (calendar days) - Has a value of 50 times income per capita, which equals the sale price. • Does not include time spent gathering - Is fully owned by the seller. information - Has no mortgages attached and has been under the same ownership for the past 10 years. • Each procedure starts on a separate day - - Is registered in the land registry or cadastre, or both, and is free of title disputes. though procedures that can be fully completed online are an exception to this rule - Is located in a periurban commercial zone, and no rezoning is required. - Consists of land and a building. The land area is 557.4 square meters (6,000 • Procedure is considered completed once final square feet). A two-story warehouse of 929 square meters (10,000 square feet) is document is received located on the land. The warehouse is 10 years old, is in good condition, has no • No prior contact with officials heating system and complies with all safety standards, building codes and legal requirements. The property, consisting of land and building, will be transferred in its Cost required to complete each procedure (% of entirety. property value) - Will not be subject to renovations or additional construction following the purchase. - Has no trees, natural water sources, natural reserves or historical monuments of • Official costs only (such as administrative fees, any kind. duties and taxes). - Will not be used for special purposes, and no special permits, such as for • Value Added Tax, Capital Gains Tax and illicit residential use, industrial plants, waste storage or certain types of agricultural payments are excluded activities, are required. - Has no occupants, and no other party holds a legal interest in it. Quality of land administration index (0-30) • Reliability of infrastructure index (0-8) • Transparency of information index (0–6) • Geographic coverage index (0–8) • Land dispute resolution index (0–8) • Equal access to property rights index (-2–0) Page 22 Doing Business 2019 Australia Registering Property - Australia Indicator Australia OECD high Best Regulatory income Performance Procedures (number) 5 4.7 1 (4 Economies) Time (days) 4.5 20.1 1 (New Zealand) Cost (% of property value) 5.3 4.2 0.0 (Saudi Arabia) Quality of the land administration index (0-30) 20.0 23.0 None in 2017/18 Figure – Registering Property in Australia and comparator economies – Ranking and Score DB 2019 Registering Property Score 0 100 94.89: New Zealand (Rank: 1) 79.31: Canada (Rank: 34) 77.17: Regional Average (OECD high income) 76.87: United States (Rank: 38) 74.21: Japan (Rank: 48) 74.09: Australia (Rank: 50) Note: The ranking of economies on the ease of registering property is determined by sorting their scores for registering property. These scores are the simple average of the scores for each of the component indicators. Figure – Registering Property in Australia – Procedure, Time and Cost Time (days) Cost (% of property value) 4.5 6 4 5 Cost (% of property value) 3.5 3 4 Time (days) 2.5 3 2 1.5 2 1 1 0.5 0 0 1 *2 *3 4 5 Procedures (number) * This symbol is shown beside procedure numbers that take place simultaneously with the previous procedure. Note: Online procedures account for 0.5 days in the total time calculation. For economies that have a different procedure list for men and women, the graph shows the time for women. For more information on methodology, see the Doing Business website (http://doingbusiness.org/en/methodology). For details on the procedures reflected here, see the summary below. Page 23 Doing Business 2019 Australia Figure – Registering Property in Australia and comparator economies – Measure of Quality 30 26.5 24.8 25 23.0 21.5 Index score 20.0 20 17.6 15 10 5 0 Australia Canada Japan New Zealand United States OECD high income Details – Registering Property in Australia – Procedure, Time and Cost No. Procedures Time to Complete Associated Costs 1 File for a zoning certificate from the Municipal Council 2 days AUD 53 Agency : Municipal Council (City of Sydney) The seller is responsible for obtaining a Zoning Certificate from the Municipal Council. This document must be attached to the Contract for Sale (prescribed documents). A Building Certificate can also be obtained from the Municipal Council, but it is not mandatory. Certain municipal councils now process applications through the internet and deliver Zoning Certificates electronically. In the case of Sidney, it is possible to request a certificate online at https://online.cityofsydney.nsw.gov.au/Certificates, and it is possible to receive it by email. 2 File for a drainage diagram from the local water authority 1 day AUD 27.41 Agency : Local water authority (Sydney Water) The seller is responsible for obtaining a Drainage Diagram from the water authority. This document must be attached to the contract for sale (prescribed documents). This document can be obtained online at http://www.sydneywater.com.au/tapin/index.htm 3 File for a title search certificate, land tax certificate, deposited plans, Less than one day, AUD 40.7; (AUD easements and covenants recorded on the title from the Land and Property online 40.7: AUD 12.70 for Information Department online title search, Agency : NSW Land Registry Services (Concessionary for Office of the Registrar land tax certificate, General) online plans, The seller is responsible for obtaining a title search, plans (known as Deposited Plans), easements and covenants recorded on title from the NSW Land Registry easements and Services, according to by law, the Conveyancing Act 1919 and the Conveyancing covenants; AUD 28 (Sale of Land) Regulation 2005. These documents must be attached to the sale Broker agent fee.) contract (prescribed documents); failure to do so may entitle the purchaser to rescind the contract. If the seller is doing the process online, then the seller must hire an approved information broker and pay a broker fee. The NSW Land Registry Services has a network of approved information brokers that can be used to file a title search certificate, land tax certificate, deposited plans, easements and covenants recorded on the title. Using an information broker is the only way a person can complete this process online Page 24 Doing Business 2019 Australia 4 Stamp contract with ad valorem stamp duty (i.e. according to value) at the 1 day AUD 183,457.79; Office of State Revenue (Stamp duty, Agency : Revenue NSW according to the If there are no outstanding interests in the property, then the solicitor for the following schedule of buyer (if one is used) prepares a Transfer form (obtained from the Land and tariffs : Property Information Division ("LPI"), also available online) for execution by the seller. The transfer may also be completed by the buyer. Below AUD 14,000, The Transfer form (and others) are available in a PDF format on the LPI website the fee is 1.25% of at: property value of http://www.lpma.nsw.gov.au/land_property_information property The forms are interactive with popup notes to assist with their completion. The Between AUD 14,001 contract is sent to the Office of State Revenue and stamp duty is paid (by and AUD 30,000, the purchaser). If stamping of the Contract does not occur within 3 months of fee is AUD 175 + exchange penalty duty is payable on the amount of stamp duty payable at the 1.5% of excess over rate of 15.75% per annum. AUD 14,000 Where the dutiable value of residential land exceeds AUD 3 million, the duty Between AUD 30,001 payable is: AUD 150,490 plus AUD 7 for every AUD 100, or part, that exceeds and AUD 80,000, the AUD 3 million. fee is AUD 415 + 1.75% of excess over Transfers also incur Fixed Stamp Duty costs totaling $20: $10 each for the AUD 30,000 stamping of the Real Property Transfer (counterpart contract and Transfer of Between AUD 80,001 Land form). and AUD 300,000, the fee is AUD 1,290 + 3.5% of excess over AUD 80,000 Between AUD 300,001 and 1,000,000, the fee is AUD 8,990 + 4.5% of excess over AUD 300,000 Between AUD 1,000,001 - 3,000,000, the fee is AUD 40,490 + 5.5% of excess over AUD 1,000,000 Over 3,000,000, the fee is AUD 150,490.00 + 7% of excess over AUD 3,000,000 Transfers also incur Fixed Stamp Duty costs totaling AUD 20) 5 Notice of Sale, Transfer of Land form and Certificate of Title are lodged with 1 day AUD 253.1; (AUD Land and Property Information by the buyer 253.10 for lodging a Agency : NSW Land Registry Services (Concessionary for Office of the Registrar transfer of ownership General) and obtaining a new The Transfer of Land form and Certificate of Title (owner’s copy) are then sent to certificate of title) the Land and Property Information Division for registration ("LPI"). This form is used by LPI to notify the local council, water supply authority and relevant rating authorities of changes in ownership of the properties. Legislation requires this form to be lodged in all cases where the registered proprietor name on title changes, including a change of name. Customers are able to complete and lodge notices of sale (NOS) online using LPI’s electronic notice of sale form (eNOS) available online (https://shop.lpi.nsw.gov.au/wps/portal/enos/menu.pl) or hard copy versions can be obtained from our Sydney office or law stationers. Once a dealing is registered the local council, water supply authority and relevant rating authorities are automatically informed of the change and their records are updated. Takes place simultaneously with previous procedure. Page 25 Doing Business 2019 Australia Details – Registering Property in Australia – Measure of Quality Answer Score Reliability of infrastructure index (0-8) 7.0 What is the institution in charge of immovable property registration? NSW Land Registry Services In what format are the majority of title or deed records kept in the largest business city—in a Computer/Scann 1.0 paper format or in a computerized format (scanned or fully digital)? ed Is there an electronic database for checking for encumbrances (liens, mortgages, restrictions Yes 1.0 and the like)? Institution in charge of the plans showing legal boundaries in the largest business city: Spatial Services (New South Wales) In what format are the majority of maps of land plots kept in the largest business city—in a Computer/Fully 2.0 paper format or in a computerized format (scanned or fully digital)? digital Is there an electronic database for recording boundaries, checking plans and providing Yes 1.0 cadastral information (geographic information system)? Is the information recorded by the immovable property registration agency and the cadastral Different 1.0 or mapping agency kept in a single database, in different but linked databases or in separate databases but databases? linked Do the immovable property registration agency and cadastral or mapping agency use the Yes 1.0 same identification number for properties? Transparency of information index (0–6) 3.5 Who is able to obtain information on land ownership at the agency in charge of immovable Anyone who 1.0 property registration in the largest business city? pays the official fee Is the list of documents that are required to complete any type of property transaction made Yes, online 0.5 publicly available–and if so, how? Link for online access: http://www.nswlrs .com.au/forms/la nd_title_dealing_f orms http://rg- guidelines.nswlrs .com.au/land_de alings/dealing_re quirements/transf ers/transfer Is the applicable fee schedule for any property transaction at the agency in charge of Yes, online 0.5 immovable property registration in the largest business city made publicly available–and if so, how? Link for online access: http://www.nswlrs .com.au/land_title s/current_nsw_la nd_registry_fees Does the agency in charge of immovable property registration commit to delivering a legally No 0.0 binding document that proves property ownership within a specific time frame–and if so, how does it communicate the service standard? Link for online access: Is there a specific and separate mechanism for filing complaints about a problem that No 0.0 occurred at the agency in charge of immovable property registration? Page 26 Doing Business 2019 Australia Contact information: T: 1300 318 998 +61 2 9372 7774 - international E: ORG- Admin@finance. nsw.gov.au Office of the Registrar General http://www.registr argeneral.nsw.go v.au/ Are there publicly available official statistics tracking the number of transactions at the Yes 0.5 immovable property registration agency? Number of property transfers in the largest business city in 2017: 228595.0 Who is able to consult maps of land plots in the largest business city? Anyone who 0.5 pays the official fee Is the applicable fee schedule for accessing maps of land plots made publicly available— Yes, online 0.5 and if so, how? Link for online access: http://www.nswlrs .com.au/land_title s/current_nsw_la nd_registry_fees Does the cadastral or mapping agency commit to delivering an updated map within a No 0.0 specific time frame—and if so, how does it communicate the service standard? Link for online access: Is there a specific and separate mechanism for filing complaints about a problem that No 0.0 occurred at the cadastral or mapping agency? Contact information: Geographic coverage index (0–8) 4.0 Are all privately held land plots in the economy formally registered at the immovable property No 0.0 registry? Are all privately held land plots in the largest business city formally registered at the Yes 2.0 immovable property registry? Are all privately held land plots in the economy mapped? No 0.0 Are all privately held land plots in the largest business city mapped? Yes 2.0 Land dispute resolution index (0–8) 5.5 Does the law require that all property sale transactions be registered at the immovable Yes 1.5 property registry to make them opposable to third parties? Is the system of immovable property registration subject to a state or private guarantee? Yes 0.5 Is there a specific compensation mechanism to cover for losses incurred by parties who Yes 0.5 engaged in good faith in a property transaction based on erroneous information certified by the immovable property registry? Does the legal system require a control of legality of the documents necessary for a property Yes 0.5 transaction (e.g., checking the compliance of contracts with requirements of the law)? If yes, who is responsible for checking the legality of the documents? Registrar; Lawyer; Does the legal system require verification of the identity of the parties to a property Yes 0.5 transaction? If yes, who is responsible for verifying the identity of the parties? Registrar; Lawyer; Is there a national database to verify the accuracy of identity documents? No 0.0 For a standard land dispute between two local businesses over tenure rights of a property Supreme Court worth 50 times gross national income (GNI) per capita and located in the largest business of New South city, what court would be in charge of the case in the first instance? Wales Page 27 Doing Business 2019 Australia How long does it take on average to obtain a decision from the first-instance court for such a Between 1 and 2 2.0 case (without appeal)? years Are there any statistics on the number of land disputes in the first instance? No 0.0 Number of land disputes in the largest business city in 2017: N/A Equal access to property rights index (-2–0) 0.0 Do unmarried men and unmarried women have equal ownership rights to property? Yes Do married men and married women have equal ownership rights to property? Yes 0.0 Page 28 Doing Business 2019 Australia Getting Credit This topic explores two sets of issues—the strength of credit reporting systems and the effectiveness of collateral and bankruptcy laws in facilitating lending. The most recent round of data collection for the project was completed in May 2018. See the methodology for more information. What the indicators measure Case study assumptions Strength of legal rights index (0–12) Doing Business assesses the sharing of credit information and the legal rights of borrowers and lenders with respect to secured transactions through 2 sets of • Rights of borrowers and lenders through indicators. The depth of credit information index measures rules and practices collateral laws (0-10) affecting the coverage, scope and accessibility of credit information available • Protection of secured creditors’ rights through through a credit registry or a credit bureau. The strength of legal rights index bankruptcy laws (0-2) measures the degree to which collateral and bankruptcy laws protect the rights of borrowers and lenders and thus facilitate lending. For each economy it is first Depth of credit information index (0–8) determined whether a unitary secured transactions system exists. Then two case • Scope and accessibility of credit information scenarios, case A and case B, are used to determine how a nonpossessory security distributed by credit bureaus and credit registries interest is created, publicized and enforced according to the law. Special emphasis (0-8) is given to how the collateral registry operates (if registration of security interests is possible). The case scenarios involve a secured borrower, company ABC, and a Credit bureau coverage (% of adults) secured lender, BizBank. • Number of individuals and firms listed in largest In some economies the legal framework for secured transactions will allow only case credit bureau as a percentage of adult population A or case B (not both) to apply. Both cases examine the same set of legal provisions relating to the use of movable collateral. Credit registry coverage (% of adults) • Number of individuals and firms listed in credit Several assumptions about the secured borrower (ABC) and lender (BizBank) registry as a percentage of adult population are used: - ABC is a domestic limited liability company (or its legal equivalent). - ABC has up to 50 employees. - ABC has its headquarters and only base of operations in the economy’s largest business city. For 11 economies the data are also collected for the second largest business city. - Both ABC and BizBank are 100% domestically owned. The case scenarios also involve assumptions. In case A, as collateral for the loan, ABC grants BizBank a nonpossessory security interest in one category of movable assets, for example, its machinery or its inventory. ABC wants to keep both possession and ownership of the collateral. In economies where the law does not allow nonpossessory security interests in movable property, ABC and BizBank use a fiduciary transfer-of-title arrangement (or a similar substitute for nonpossessory security interests). In case B, ABC grants BizBank a business charge, enterprise charge, floating charge or any charge that gives BizBank a security interest over ABC’s combined movable assets (or as much of ABC’s movable assets as possible). ABC keeps ownership and possession of the assets. Page 29 Doing Business 2019 Australia Getting Credit - Australia Indicator Australia OECD high Best Regulatory income Performance Strength of legal rights index (0-12) 11 6.1 12 (5 Economies) Depth of credit information index (0-8) 7 6.7 8 (42 Economies) Credit registry coverage (% of adults) 0 21.8 100.0 (4 Economies) Credit bureau coverage (% of adults) 100 65.3 100.0 (25 Economies) Figure – Getting Credit in Australia and comparator economies – Ranking and Score DB 2019 Getting Credit Score 0 100 95.00: United States (Rank: 3) 90.00: Australia (Rank: 8) 85.00: Canada (Rank: 12) 64.12: Regional Average (OECD high income) 55.00: Japan (Rank: 85) 100.00: New Zealand (Rank: 1) Note: The ranking of economies on the ease of getting credit is determined by sorting their scores for getting credit. These scores are the sum of the scores for the strength of legal rights index and the depth of credit information index. Figure – Legal Rights in Australia and comparator economies 11 9 12 11 8 7 6.1 6 Index Score 5 5 4 3 2 1 0 Australia Canada Japan New Zealand United States OECD high income Page 30 Doing Business 2019 Australia Details – Legal Rights in Australia Strength of legal rights index (0-12) 11 Does an integrated or unified legal framework for secured transactions that extends to the creation, publicity and Yes enforcement of functional equivalents to security interests in movable assets exist in the economy? Does the law allow businesses to grant a non possessory security right in a single category of movable assets, without Yes requiring a specific description of collateral? Does the law allow businesses to grant a non possessory security right in substantially all of its assets, without requiring a Yes specific description of collateral? May a security right extend to future or after-acquired assets, and does it extend automatically to the products, proceeds and Yes replacements of the original assets? Is a general description of debts and obligations permitted in collateral agreements; can all types of debts and obligations be Yes secured between parties; and can the collateral agreement include a maximum amount for which the assets are encumbered? Is a collateral registry in operation for both incorporated and non-incorporated entities, that is unified geographically and by Yes asset type, with an electronic database indexed by debtor's name? Does a notice-based collateral registry exist in which all functional equivalents can be registered? Yes Does a modern collateral registry exist in which registrations, amendments, cancellations and searches can be performed Yes online by any interested third party? Are secured creditors paid first (i.e. before tax claims and employee claims) when a debtor defaults outside an insolvency Yes procedure? Are secured creditors paid first (i.e. before tax claims and employee claims) when a business is liquidated? Yes Are secured creditors subject to an automatic stay on enforcement when a debtor enters a court-supervised reorganization No procedure? Does the law protect secured creditors’ rights by providing clear grounds for relief from the stay and sets a time limit for it? Does the law allow parties to agree on out of court enforcement at the time a security interest is created? Does the law allow Yes the secured creditor to sell the collateral through public auction or private tender, as well as, for the secured creditor to keep the asset in satisfaction of the debt? Figure – Credit Information in Australia and comparator economies 8 8 8 8 7 7 6.7 6 6 Index Score 5 4 3 2 1 0 Australia Canada Japan New Zealand United States OECD high income Page 31 Doing Business 2019 Australia Details – Credit Information in Australia Depth of credit information index (0-8) Credit Credit Score bureau registry Are data on both firms and individuals distributed? Yes No 1 Are both positive and negative credit data distributed? No No 0 Are data from retailers or utility companies - in addition to data from banks and Yes No 1 financial institutions - distributed? Are at least 2 years of historical data distributed? (Credit bureaus and registries Yes No 1 that distribute more than 10 years of negative data or erase data on defaults as soon as they are repaid obtain a score of 0 for this component.) Are data on loan amounts below 1% of income per capita distributed? Yes No 1 By law, do borrowers have the right to access their data in the credit bureau or Yes No 1 credit registry? Can banks and financial institutions access borrowers’ credit information online Yes No 1 (for example, through an online platform, a system-to-system connection or both)? Are bureau or registry credit scores offered as a value-added service to help Yes No 1 banks and financial institutions assess the creditworthiness of borrowers? Total Score ("yes" to either public bureau or private registry) 7 Note: An economy receives a score of 1 if there is a "yes" to either bureau or registry. If the credit bureau or registry is not operational or covers less than 5% of the adult population, the total score on the depth of credit information index is 0. Coverage Credit bureau Credit registry Number of individuals 18,600,000 0 Number of firms 5,502,000 0 Total 24,102,000 0 Percentage of adult population 100 0 Page 32 Doing Business 2019 Australia Protecting Minority Investors This topic measures the strength of minority shareholder protections against misuse of corporate assets by directors for their personal gain as well as shareholder rights, governance safeguards and corporate transparency requirements that reduce the risk of abuse. The most recent round of data collection for the project was completed in May 2018. See the methodology for more information. What the indicators measure Case study assumptions • Extent of disclosure index (0–10): Review and To make the data comparable across economies, a case study uses several approval requirements for related-party assumptions about the business and the transaction. transactions; Disclosure requirements for related- party transactions The business (Buyer): • Extent of director liability index (0–10): Ability - Is a publicly traded corporation listed on the economy’s most important stock of minority shareholders to sue and hold exchange. If there are fewer than ten listed companies or if there is no stock interested directors liable for prejudicial related- exchange in the economy, it is assumed that Buyer is a large private company with party transactions; Available legal remedies multiple shareholders. (damages, disgorgement of profits, fines, - Has a board of directors and a chief executive officer (CEO) who may legally act on imprisonment, rescission of the transaction) behalf of Buyer where permitted, even if this is not specifically required by law. • Ease of shareholder suits index (0–10): - Has a supervisory board in economies with a two-tier board system on which Mr. Access to internal corporate documents; James appointed 60% of the shareholder-elected members. Evidence obtainable during trial and allocation of - Has not adopted bylaws or articles of association that go beyond the minimum legal expenses requirements. Does not follow codes, principles, recommendations or guidelines that are not mandatory. • Extent of conflict of interest regulation index - Is a manufacturing company with its own distribution network. (0–10): Simple average of the extent of disclosure, extent of director liability and ease of The transaction involves the following details: shareholder indices - Mr. James owns 60% of Buyer, sits on Buyer’s board of directors and elected two • Extent of shareholder rights index (0-10): directors to Buyer’s five-member board. Shareholders’ rights and role in major corporate - Mr. James also owns 90% of Seller, a company that operates a chain of retail decisions hardware stores. Seller recently closed a large number of its stores. - Mr. James proposes that Buyer purchase Seller’s unused fleet of trucks to expand • Extent of ownership and control index (0-10): Buyer’s distribution of its food products, a proposal to which Buyer agrees. The price Governance safeguards protecting shareholders is equal to 10% of Buyer’s assets and is higher than the market value. from undue board control and entrenchment - The proposed transaction is part of the company’s principal activity and is not • Extent of corporate transparency index (0-10): outside the authority of the company. Corporate transparency on ownership stakes, - Buyer enters into the transaction. All required approvals are obtained, and all compensation, audits and financial prospects required disclosures made—that is, the transaction was not entered into fraudulently. • Extent of shareholder governance index (0– - The transaction causes damages to Buyer. Shareholders sue Mr. James and the 10): Simple average of the extent of shareholders executives and directors that approved the transaction. rights, extent of ownership and control and extent of corporate transparency indices • Strength of minority investor protection index (0–10): Simple average of the extent of conflict of interest regulation and extent of shareholder governance indices Page 33 Doing Business 2019 Australia Protecting Minority Investors - Australia Indicator Australia OECD high Best Regulatory income Performance Extent of disclosure index (0-10) 8.0 6.5 10 (13 Economies) Extent of director liability index (0-10) 2.0 5.3 10 (Cambodia) Ease of shareholder suits index (0-10) 8.0 7.3 10 (Djibouti) Extent of shareholder rights index (0-10) 5.0 6.4 10 (Kazakhstan) Extent of ownership and control index (0-10) 4.0 5.4 None in 2017/18 Extent of corporate transparency index (0-10) 9.0 7.6 10 (6 Economies) Figure – Protecting Minority Investors in Australia and comparator economies – Ranking and Score DB 2019 Protecting Minority Investors Score 0 100 81.67: New Zealand (Rank: 2) 78.33: Canada (Rank: 11) 64.67: United States (Rank: 50) 64.21: Regional Average (OECD high income) 60.00: Australia (Rank: 64) 60.00: Japan (Rank: 64) Note: The ranking of economies on the strength of minority investor protections is determined by sorting their scores for protecting minority investors. These scores are the simple average of the scores for the extent of conflict of interest regulation index and the extent of shareholder governance index. Figure – Protecting Minority Investors in Australia and comparator economies – Measure of Quality Australia 9 2 8 4 5 8 Canada 8 9 8 7 6 9 Japan 6 6 7 3 6 8 New Zealand 7 9 10 7 7 9 United States 5.4 8.6 7.4 4.4 4 9 OECD high income 7.4 5.5 6.5 5.2 6.3 7.4 0 10 20 30 40 50 60 Sub-Indicator Score Extent of corporate transparency index (0-10) Extent of director liability index (0-10) Extent of disclosure index (0-10) Extent of ownership and control index (0-10) Extent of shareholder rights index (0-10) Ease of shareholder suits index (0-10) Page 34 Doing Business 2019 Australia Details – Protecting Minority Investors in Australia – Measure of Quality Answer Score Extent of conflict of interest regulation index (0-10) 6 Extent of disclosure index (0-10) 8.0 Whose decision is sufficient to approve the Buyer-Seller transaction? (0-3) Shareholders 3.0 excluding interested parties Must an external body review the terms of the transaction before it takes place? (0-1) Yes 1.0 Must Mr. James disclose his conflict of interest to the board of directors? (0-2) Full disclosure of 2.0 all material facts Must Buyer disclose the transaction in periodic filings (e.g. annual reports)? (0-2) Disclosure on the 1.0 transaction only Must Buyer immediately disclose the transaction to the public? (0-2) Disclosure on the 1.0 transaction only Extent of director liability index (0-10) 2.0 Can shareholders representing 10% of Buyer's share capital sue for the damage the Yes 1.0 transaction caused to Buyer? (0-1) Can shareholders hold Mr. James liable for the damage the transaction caused to Buyer? (0- Not liable 0.0 2) Can shareholders hold the other directors liable for the damage the transaction caused to Liable if negligent 1.0 Buyer (0-2) Must Mr. James pay damages for the harm caused to Buyer upon a successful claim by No 0.0 shareholders? (0-1) Must Mr. James repay profits made from the transaction upon a successful claim by No 0.0 shareholders? (0-1) Is Mr. James disqualified upon a successful claim by shareholders? (0-1) No 0.0 Can a court void the transaction upon a successful claim by shareholders? (0-2) Only in case of 0.0 fraud or bad faith Ease of shareholder suits index (0-10) 8.0 Before suing, can shareholders representing 10% of Buyer's share capital inspect the No 0.0 transaction documents? (0-1) Can the plaintiff obtain any documents from the defendant and witnesses at trial? (0-3) Any relevant 3.0 document Can the plaintiff request categories of documents from the defendant without identifying Yes 1.0 specific ones? (0-1) Can the plaintiff directly question the defendant and witnesses at trial? (0-2) Yes 2.0 Is the level of proof required for civil suits lower than that of criminal cases? (0-1) Yes 1.0 Can shareholder plaintiffs recover their legal expenses from the company? (0-2) Yes if successful 1.0 Extent of shareholder governance index (0-10) 6.0 Extent of shareholder rights index (0-10) 5.0 Does the sale of 51% of Buyer's assets require shareholder approval? Yes 1.0 Can shareholders representing 10% of Buyer's share capital call for a meeting of Yes 1.0 shareholders? Must Buyer obtain its shareholders’ approval every time it issues new shares? No 0.0 Do shareholders automatically receive preemption rights every time Buyer issues new No 0.0 shares? Must shareholders approve the election and dismissal of the external auditor? Yes 1.0 Page 35 Doing Business 2019 Australia Are changes to the rights of a class of shares only possible if the holders of the affected Yes 1.0 shares approve? Assuming that Buyer is a limited company, does the sale of 51% of its assets require No 0.0 member approval? Assuming that Buyer is a limited company, can members representing 10% call for a Yes 1.0 meeting of members? Assuming that Buyer is a limited company, must all or almost all members consent to add a No 0.0 new member? Assuming that Buyer is a limited company, must a member first offer to sell their interest to No 0.0 the existing members before they can sell to non-members? Extent of ownership and control index (0-10) 4.0 Is it forbidden to appoint the same individual as CEO and chairperson of the board of No 0.0 directors? Must the board of directors include independent and nonexecutive board members? No 0.0 Can shareholders remove members of the board of directors without cause before the end Yes 1.0 of their term? Must the board of directors include a separate audit committee exclusively comprising board No 0.0 members? Must a potential acquirer make a tender offer to all shareholders upon acquiring 50% of Yes 1.0 Buyer? Must Buyer pay declared dividends within a maximum period set by law? No 0.0 Is a subsidiary prohibited from acquiring shares issued by its parent company? Yes 1.0 Assuming that Buyer is a limited company, must Buyer have a mechanism to resolve Yes 1.0 disagreements among members? Assuming that Buyer is a limited company, must a potential acquirer make a tender offer to No 0.0 all shareholders upon acquiring 50% of Buyer? Assuming that Buyer is a limited company, must Buyer distribute profits within a maximum No 0.0 period set by law? Extent of corporate transparency index (0-10) 9.0 Must Buyer disclose direct and indirect beneficial ownership stakes representing 5%? Yes 1.0 Must Buyer disclose information about board members’ primary employment and Yes 1.0 directorships in other companies? Must Buyer disclose the compensation of individual managers? Yes 1.0 Must a detailed notice of general meeting be sent 21 days before the meeting? Yes 1.0 Can shareholders representing 5% of Buyer’s share capital put items on the general meeting Yes 1.0 agenda? Must Buyer's annual financial statements be audited by an external auditor? Yes 1.0 Must Buyer disclose its audit reports to the public? Yes 1.0 Assuming that Buyer is a limited company, must members meet at least once a year? No 0.0 Assuming that Buyer is a limited company, can members representing 5% put items on the Yes 1.0 meeting agenda? Assuming that Buyer is a limited company, must Buyer's annual financial statements be Yes 1.0 audited by an external auditor? Page 36 Doing Business 2019 Australia Paying Taxes This topic records the taxes and mandatory contributions that a medium-size company must pay or withhold in a given year, as well as the administrative burden of paying taxes and contributions and complying with postfiling procedures (VAT refund and tax audit). The most recent round of data collection for the project was completed in May 2018 covering for the Paying Taxes indicator calendar year 2017 (January 1, 2017 – December 31, 2017). See the methodology for more information. What the indicators measure Case study assumptions Tax payments for a manufacturing company in Using a case scenario, Doing Business records taxes and mandatory contributions a 2017 (number per year adjusted for electronic medium size company must pay in a year, and measures the administrative burden and joint filing and payment) of paying taxes, contributions and dealing with postfiling processes. Information is also compiled on frequency of filing and payments, time taken to comply with tax • Total number of taxes and contributions paid or laws, time taken to comply with the requirements of postfiling processes and time withheld, including consumption taxes (value waiting. added tax, sales tax or goods and service tax) • Method and frequency of filing and payment To make data comparable across economies, several assumptions are used: - TaxpayerCo is a medium-size business that started operations on January 1, 2016. Time required to comply with 3 major taxes It produces ceramic flowerpots and sells them at retail. All taxes and contributions (hours per year) recorded are paid in the second year of operation (calendar year 2017). Taxes and mandatory contributions are measured at all levels of government. • Collecting information, computing tax payable • Preparing separate tax accounting books, if The VAT refund process: required - In June 2017, TaxpayerCo. makes a large capital purchase: the value of the • Completing tax return, filing with agencies machine is 65 times income per capita of the economy. Sales are equally spread per month (1,050 times income per capita divided by 12) and cost of goods sold are • Arranging payment or withholding equally expensed per month (875 times income per capita divided by 12). The machinery seller is registered for VAT and excess input VAT incurred in June will be Total tax and contribution rate (% of commercial fully recovered after four consecutive months if the VAT rate is the same for inputs, profits) sales and the machine and the tax reporting period is every month. Input VAT will • Profit or corporate income tax exceed Output VAT in June 2017. • Social contributions, labor taxes paid by The corporate income tax audit process: employer - An error in calculation of income tax liability (for example, use of incorrect tax • Property and property transfer taxes depreciation rates, or incorrectly treating an expense as tax deductible) leads to an incorrect income tax return and a corporate income tax underpayment. TaxpayerCo. • Dividend, capital gains, financial transactions discovered the error and voluntarily notified the tax authority. The value of the taxes underpaid income tax liability is 5% of the corporate income tax liability • Waste collection, vehicle, road and other taxes due. TaxpayerCo. submits corrected information after the deadline for submitting the annual tax return, but within the tax assessment period. Postfiling Index • Time to comply with a VAT refund (hours) • Time to obtain a VAT refund (weeks) • Time to comply with a corporate income tax correction (hours) • Time to complete a corporate income tax correction (weeks) Page 37 Doing Business 2019 Australia Paying Taxes - Australia Indicator Australia OECD high Best Regulatory income Performance Payments (number per year) 11 11.2 3 (Hong Kong SAR, China) Time (hours per year) 105 159.4 49 (Singapore) Total tax and contribution rate (% of profit) 47.4 39.8 26.1% (32 Economies) Postfiling index (0-100) 95.34 84.41 None in 2017/18 Figure – Paying Taxes in Australia and comparator economies – Ranking and Score DB 2019 Paying Taxes Score 0 100 91.08: New Zealand (Rank: 10) 88.05: Canada (Rank: 19) 85.64: Australia (Rank: 26) 84.14: United States (Rank: 37) 83.32: Regional Average (OECD high income) 71.14: Japan (Rank: 97) Note: The ranking of economies on the ease of paying taxes is determined by sorting their scores for paying taxes. These scores are the simple average of the scores for each of the component indicators, with a threshold and a nonlinear transformation applied to one of the component indicators, the total tax and contribution rate. The threshold is defined as the total tax and contribution rate at the 15th percentile of the overall distribution for all years included in the analysis up to and including Doing Business 2015, which is 26.1%. All economies with a total tax and contribution rate below this threshold receive the same score as the economy at the threshold. Figure – Paying Taxes in Australia and comparator economies – Measure of Quality 100 95.34 96.90 94.04 84.41 80 73.23 71.69 Index score 60 40 20 0 Australia Canada Japan New Zealand United States OECD high income Page 38 Doing Business 2019 Australia Details – Paying Taxes in Australia Tax or Payments Notes on Time Statutory Tax base Total tax Notes on mandatory (number) Payments (hours) tax rate and TTCR contribution contribution rate (% of profit) Corporate 1.0 Online 37.0 30% taxable profits 26.05 income tax Superannuati 1.0 Online 18.0 9.5% gross salaries 10.72 on guarantee Payroll tax 1.0 Online 5.45% total payroll 5.17 Worker's 1.0 3.489% gross salaries 4.17 compensation Fringe 1.0 online and 47% Grossedup 1.02 benefits tax jointly taxable value of fringe benefits Municipal tax 1.0 Online fixed fee 0.10 (A$3,725) Tax on 1.0 9% insurance 0.10 insurance premium contracts Land tax 1.0 Online 100 plus 1.6 unimproved 0.08 cents for each land value $A exceeding $629,000 Vehicle tax 1.0 fixed fee 0.05 ($A995 for each vehicle) Fuel tax 1.0 liters of fuel 0.00 small amount Value added 1.0 Online 50.0 10% value added 0.00 not included tax (GST) Totals 11 105 47.4 Page 39 Doing Business 2019 Australia Details – Paying Taxes in Australia – Tax by Type Taxes by type Answer Profit tax (% of profit) 26 Labor tax and contributions (% of profit) 21.1 Other taxes (% of profit) 0.3 Page 40 Doing Business 2019 Australia Details – Paying Taxes in Australia – Measure of Quality Answer Score Postfiling index (0-100) 95.34 VAT refunds Does VAT exist? Yes Does a VAT refund process exist per the case study? Yes Restrictions on VAT refund process None Percentage of cases exposed to a VAT audit (%) 50% - 74% Is there a mandatory carry forward period? No Time to comply with VAT refund (hours) 4.5 91 Time to obtain a VAT refund (weeks) 8.0 90.83 Corporate income tax audits Does corporate income tax exist? Yes Percentage of cases exposed to a corporate income tax audit (%) 0% - 24% Time to comply with a corporate income tax correction (hours) 1.8 99.54 Time to complete a corporate income tax correction (weeks) No tax audit per 100 case study scenario Notes: Names of taxes have been standardized. For instance income tax, profit tax, tax on company's income are all named corporate income tax in this table. The hours for VAT include all the VAT and sales taxes applicable. The hours for Social Security include all the hours for labor taxes and mandatory contributions in general. The postfiling index is the average of the scores on time to comply with VAT refund, time to obtain a VAT refund, time to comply with a corporate income tax correction and time to complete a corporate income tax correction. N/A = Not applicable. Page 41 Doing Business 2019 Australia Trading across Borders Doing Business records the time and cost associated with the logistical process of exporting and importing goods. Doing Business measures the time and cost (excluding tariffs) associated with three sets of procedures—documentary compliance, border compliance and domestic transport—within the overall process of exporting or importing a shipment of goods. The most recent round of data collection for the project was completed in May 2018. See the methodology for more information. What the indicators measure Case study assumptions Documentary compliance To make the data comparable across economies, a few assumptions are made about the traded goods and the transactions: • Obtaining, preparing and submitting documents during transport, clearance, inspections and port Time: Time is measured in hours, and 1 day is 24 hours (for example, 22 days are or border handling in origin economy recorded as 22×24=528 hours). If customs clearance takes 7.5 hours, the data are • Obtaining, preparing and submitting documents recorded as is. Alternatively, suppose documents are submitted to a customs agency required by destination economy and any transit at 8:00a.m., are processed overnight and can be picked up at 8:00a.m. the next day. economies The time for customs clearance would be recorded as 24 hours because the actual procedure took 24 hours. • Covers all documents required by law and in practice, including electronic submissions of Cost: Insurance cost and informal payments for which no receipt is issued are information excluded from the costs recorded. Costs are reported in U.S. dollars. Contributors Border compliance are asked to convert local currency into U.S. dollars based on the exchange rate prevailing on the day they answer the questionnaire. Contributors are private sector • Customs clearance and inspections experts in international trade logistics and are informed about exchange rates. • Inspections by other agencies (if applied to more than 20% of shipments) Assumptions of the case study: - For all 190 economies covered by Doing Business, it is assumed a shipment is in a • Handling and inspections that take place at the warehouse in the largest business city of the exporting economy and travels to a economy’s port or border warehouse in the largest business city of the importing economy. - It is assumed each economy imports 15 metric tons of containerized auto parts (HS Domestic transport 8708) from its natural import partner—the economy from which it imports the largest • Loading or unloading of the shipment at the value (price times quantity) of auto parts. It is assumed each economy exports the warehouse or port/border product of its comparative advantage (defined by the largest export value) to its natural export partner—the economy that is the largest purchaser of this product. • Transport between warehouse and port/border Shipment value is assumed to be $50,000. • Traffic delays and road police checks while - The mode of transport is the one most widely used for the chosen export or import shipment is en route product and the trading partner, as is the seaport or land border crossing. - All electronic information submissions requested by any government agency in connection with the shipment are considered to be documents obtained, prepared and submitted during the export or import process. - A port or border is a place (seaport or land border crossing) where merchandise can enter or leave an economy. - Relevant government agencies include customs, port authorities, road police, border guards, standardization agencies, ministries or departments of agriculture or industry, national security agencies and any other government authorities. Page 42 Doing Business 2019 Australia Trading across Borders - Australia Indicator Australia OECD high Best Regulatory income Performance Time to export: Border compliance (hours) 36 12.5 1 (19 Economies) Cost to export: Border compliance (USD) 766 139.1 0 (19 Economies) Time to export: Documentary compliance (hours) 7 2.4 1 (26 Economies) Cost to export: Documentary compliance (USD) 264 35.2 0 (20 Economies) Time to import: Border compliance (hours) 39 8.5 0 (25 Economies) Cost to import: Border compliance (USD) 539 100.2 0 (28 Economies) Time to import: Documentary compliance (hours) 4 3.4 1 (30 Economies) Cost to import: Documentary compliance (USD) 100 24.9 0 (30 Economies) Figure – Trading across Borders in Australia and comparator economies – Ranking and Score DB 2019 Trading Across Borders Score 0 100 94.21: Regional Average (OECD high income) 92.01: United States (Rank: 36) 88.36: Canada (Rank: 50) 86.51: Japan (Rank: 56) 84.63: New Zealand (Rank: 60) 70.30: Australia (Rank: 103) Note: The ranking of economies on the ease of trading across borders is determined by sorting their scores for trading across borders. These scores are the simple average of the scores for the time and cost for documentary compliance and border compliance to export and import. Figure – Trading across Borders in Australia – Time and Cost Time (hours) Cost (USD) 45 766 800 39 40 36 700 35 Time (hours) 539 600 Cost (USD) 30 500 25 400 20 264 300 15 10 7 200 4 100 5 100 0 0 Export Export Import Import - - - - Border Documentary Border Documentary Compliance Compliance Compliance Compliance Page 43 Doing Business 2019 Australia Details – Trading across Borders in Australia Characteristics Export Import Product HS 02 : Meat and edible meat offal HS 8708: Parts and accessories of motor vehicles Trade partner Japan United States Border Sydney port Sydney port Distance (km) 15 15 Domestic transport time (hours) 4 4 Domestic transport cost (USD) 525 525 Details – Trading across Borders in Australia – Components of Border Compliance Time to Complete (hours) Associated Costs (USD) Export: Clearance and inspections required 1.0 65.0 by customs authorities Export: Clearance and inspections required 4.5 184.0 by agencies other than customs Export: Port or border handling 30.0 517.0 Import: Clearance and inspections required 1.0 100.0 by customs authorities Import: Clearance and inspections required 2.0 0.0 by agencies other than customs Import: Port or border handling 36.0 439.0 Page 44 Doing Business 2019 Australia Details – Trading across Borders in Australia – Trade Documents Export Import Bill of lading Bill of lading Export declaration Packing list Invoice Import declaration Health permit Certificate of origin Packing list Treatment Certificate Certificate of origin SOLAS certificate SOLAS certificate Page 45 Doing Business 2019 Australia Enforcing Contracts The enforcing contracts indicator measures the time and cost for resolving a commercial dispute through a local first-instance court, and the quality of judicial processes index, evaluating whether each economy has adopted a series of good practices that promote quality and efficiency in the court system. The most recent round of data collection was completed in May 2018. See the methodology for more information. What the indicators measure Case study assumptions Time required to enforce a contract through the The dispute in the case study involves the breach of a sales contract between 2 courts (calendar days) domestic businesses. The case study assumes that the court hears an expert on the quality of the goods in dispute. This distinguishes the case from simple debt • Time to file and serve the case enforcement. • Time for trial and to obtain the judgment To make the data comparable across economies, Doing Business uses several • Time to enforce the judgment assumptions about the case: Cost required to enforce a contract through the - The dispute concerns a lawful transaction between two businesses (Seller and courts (% of claim) Buyer), both located in the economy’s largest business city. For 11 economies the data are also collected for the second largest business city. • Attorney fees - The buyer orders custom-made goods, then fails to pay alleging that the goods are not of adequate quality. • Court fees - The value of the dispute is 200% of the income per capita or the equivalent in local • Enforcement fees currency of USD 5,000, whichever is greater. - The seller sues the buyer before the court with jurisdiction over commercial cases Quality of judicial processes index (0-18) worth 200% of income per capita or $5,000. • Court structure and proceedings (-1-5) - The seller requests the pretrial attachment of the defendant’s movable assets to secure the claim. • Case management (0-6) - The dispute on the quality of the goods requires an expert opinion. • Court automation (0-4) - The judge decides in favor of the seller; there is no appeal. - The seller enforces the judgment through a public sale of the buyer’s movable • Alternative dispute resolution (0-3) assets. Page 46 Doing Business 2019 Australia Enforcing Contracts - Australia Standardized Case Claim value AUD 134,777 Court name District Court of New South Wales City Covered Sydney Indicator Australia OECD high Best Regulatory income Performance Time (days) 402 582.4 None in 2017/18 Cost (% of claim value) 23.2 21.2 None in 2017/18 Quality of judicial processes index (0-18) 15.5 11.5 None in 2017/18 Figure – Enforcing Contracts in Australia and comparator economies – Ranking and Score DB 2019 Enforcing Contracts Score 0 100 79.00: Australia (Rank: 5) 72.61: United States (Rank: 16) 71.48: New Zealand (Rank: 21) 67.65: Regional Average (OECD high income) 65.26: Japan (Rank: 52) 57.13: Canada (Rank: 96) Note: The ranking of economies on the ease of enforcing contracts is determined by sorting their scores for enforcing contracts. These scores are the simple average of the scores for each of the component indicators. Figure – Enforcing Contracts in Australia – Time and Cost Time (days) Cost (% of claim value) 1000 910 35 30.5 Cost (% of claim value) 27.2 30 800 23.2 23.4 25 Time (days) 22.3 582.4 21.2 600 20 402 420 400 360 15 216 10 200 5 0 0 Australia Canada Japan New OECD United Zealand high States income Page 47 Doing Business 2019 Australia Figure – Enforcing Contracts in Australia and comparator economies – Measure of Quality Australia 2.5 5.5 3 4.5 Canada 2 2 3 4 Japan 2.5 1 1 3 New Zealand 2 3 1.5 3 United States 2.5 4.7 2.2 4.4 OECD high income 2.5 3.1 2.3 3.6 0 2 4 6 8 10 12 14 16 18 Sub-Indicator Score Alternative dispute resolution (0-3) Case management (0-6) Court automation (0-4) Court structure and proceedings (-1-5) Details – Enforcing Contracts in Australia Indicator Time (days) 402 Filing and service 14 Trial and judgment 328 Enforcement of judgment 60 Cost (% of claim value) 23.2 Attorney fees 18.5 Court fees 4.5 Enforcement fees 0.2 Quality of judicial processes index (0-18) 15.5 Court structure and proceedings (-1-5) 4.5 Case management (0-6) 5.5 Court automation (0-4) 3.0 Alternative dispute resolution (0-3) 2.5 Page 48 Doing Business 2019 Australia Details – Enforcing Contracts in Australia – Measure of Quality Answer Score Quality of judicial processes index (0-18) 15.5 Court structure and proceedings (-1-5) 4.5 1. Is there a court or division of a court dedicated solely to hearing commercial cases? Yes 1.5 2. Small claims court 1.5 2.a. Is there a small claims court or a fast-track procedure for small claims? Yes 2.b. If yes, is self-representation allowed? Yes 3. Is pretrial attachment available? Yes 1.0 4. Are new cases assigned randomly to judges? Yes, but manual 0.5 5. Does a woman's testimony carry the same evidentiary weight in court as a man's? Yes 0.0 Case management (0-6) 5.5 1. Time standards 1.0 1.a. Are there laws setting overall time standards for key court events in a civil Yes case? 1.b. If yes, are the time standards set for at least three court events? Yes 1.c. Are these time standards respected in more than 50% of cases? Yes 2. Adjournments 0.5 2.a. Does the law regulate the maximum number of adjournments that can be No granted? 2.b. Are adjournments limited to unforeseen and exceptional circumstances? Yes 2.c. If rules on adjournments exist, are they respected in more than 50% of cases? Yes 3. Can two of the following four reports be generated about the competent court: (i) time to Yes 1.0 disposition report; (ii) clearance rate report; (iii) age of pending cases report; and (iv) single case progress report? 4. Is a pretrial conference among the case management techniques used before the Yes 1.0 competent court? 5. Are there any electronic case management tools in place within the competent court for Yes 1.0 use by judges? 6. Are there any electronic case management tools in place within the competent court for Yes 1.0 use by lawyers? Court automation (0-4) 3.0 1. Can the initial complaint be filed electronically through a dedicated platform within the yes 1.0 competent court? 2. Is it possible to carry out service of process electronically for claims filed before the No 0.0 competent court? 3. Can court fees be paid electronically within the competent court? Yes 1.0 4. Publication of judgments 1.0 4.a Are judgments rendered in commercial cases at all levels made available to the Yes general public through publication in official gazettes, in newspapers or on the internet or court website? 4.b. Are judgments rendered in commercial cases at the appellate and supreme Yes court level made available to the general public through publication in official gazettes, in newspapers or on the internet or court website? Alternative dispute resolution (0-3) 2.5 1. Arbitration 1.5 Page 49 Doing Business 2019 Australia 1.a. Is domestic commercial arbitration governed by a consolidated law or Yes consolidated chapter or section of the applicable code of civil procedure encompassing substantially all its aspects? 1.b. Are there any commercial disputes—aside from those that deal with public No order or public policy—that cannot be submitted to arbitration? 1.c. Are valid arbitration clauses or agreements usually enforced by the courts? Yes 2. Mediation/Conciliation 1.0 2.a. Is voluntary mediation or conciliation available? Yes 2.b. Are mediation, conciliation or both governed by a consolidated law or Yes consolidated chapter or section of the applicable code of civil procedure encompassing substantially all their aspects? 2.c. Are there financial incentives for parties to attempt mediation or conciliation No (i.e., if mediation or conciliation is successful, a refund of court filing fees, income tax credits or the like)? Page 50 Doing Business 2019 Australia Resolving Insolvency Doing Business studies the time, cost and outcome of insolvency proceedings involving domestic legal entities. These variables are used to calculate the recovery rate, which is recorded as cents on the dollar recovered by secured creditors through reorganization, liquidation or debt enforcement (foreclosure or receivership) proceedings. To determine the present value of the amount recovered by creditors, Doing Business uses the lending rates from the International Monetary Fund, supplemented with data from central banks and the Economist Intelligence Unit. The most recent round of data collection was completed in May 2018. See the methodology for more information. What the indicators measure Case study assumptions Time required to recover debt (years) To make the data on the time, cost and outcome comparable across economies, several assumptions about the business and the case are used: • Measured in calendar years • Appeals and requests for extension are included - A hotel located in the largest city (or cities) has 201 employees and 50 suppliers. The hotel experiences financial difficulties. Cost required to recover debt (% of debtor’s - The value of the hotel is 100% of the income per capita or the equivalent in local estate) currency of USD 200,000, whichever is greater. - The hotel has a loan from a domestic bank, secured by a mortgage over the hotel’s • Measured as percentage of estate value real estate. The hotel cannot pay back the loan, but makes enough money to • Court fees operate otherwise. • Fees of insolvency administrators In addition, Doing Business evaluates the quality of legal framework applicable to • Lawyers’ fees judicial liquidation and reorganization proceedings and the extent to which best insolvency practices have been implemented in each economy covered. • Assessors’ and auctioneers’ fees • Other related fees Outcome • Whether business continues operating as a going concern or business assets are sold piecemeal Recovery rate for creditors • Measures the cents on the dollar recovered by secured creditors • Outcome for the business (survival or not) determines the maximum value that can be recovered • Official costs of the insolvency proceedings are deducted • Depreciation of furniture is taken into account • Present value of debt recovered Strength of insolvency framework index (0- 16) • Sum of the scores of four component indices: • Commencement of proceedings index (0-3) • Management of debtor’s assets index (0-6) • Reorganization proceedings index (0-3) • Creditor participation index (0-4) Page 51 Doing Business 2019 Australia Resolving Insolvency - Australia Indicator Australia OECD high Best Regulatory income Performance Recovery rate (cents on the dollar) 82.7 70.5 None in 2017/18 Time (years) 1.0 1.7 0.4 (Ireland) Cost (% of estate) 8.0 9.3 1.0 (Norway) Outcome (0 as piecemeal sale and 1 as going concern) 1 .. .. Strength of insolvency framework index (0-16) 11.0 11.9 None in 2017/18 Figure – Resolving Insolvency in Australia and comparator economies – Ranking and Score DB 2019 Resolving Insolvency Score 0 100 93.45: Japan (Rank: 1) 90.91: United States (Rank: 3) 81.46: Canada (Rank: 13) 78.87: Australia (Rank: 20) 75.21: Regional Average (OECD high income) 71.81: New Zealand (Rank: 31) Note: The ranking of economies on the ease of resolving insolvency is determined by sorting their scores for resolving insolvency. These scores are the simple average of the scores for the recovery rate and the strength of insolvency framework index. Figure – Resolving Insolvency in Australia – Time and Cost Time (years) Cost (% of estate) 1.8 1.7 12 1.6 10.0 9.3 10 Cost (% of estate) 1.4 1.3 8.0 Time (years) 1.2 7.0 8 1.0 1.0 1 0.8 6 0.8 0.6 4.2 0.6 3.5 4 0.4 2 0.2 0 0 Australia Canada Japan New OECD United Zealand high States income Page 52 Doing Business 2019 Australia Figure – Resolving Insolvency in Australia and comparator economies – Measure of Quality Australia 5 2.5 3 0.5 Canada 4.5 2.5 3 1 Japan 6 3 2 3 New Zealand 3 3 2 0.5 United States 6 3 3 3 OECD high income 5.3 2.8 2.2 1.9 0 2 4 6 8 10 12 14 16 Sub-Indicator Score Management of debtor's assets index (0-6) Commencement of proceedings index (0-3) Creditor participation index (0-4) Reorganization proceedings index (0-3) Note: Even if the economy’s legal framework includes provisions related to insolvency proceedings (liquidation or reorganization), the economy receives 0 points for the strength of insolvency framework index, if time, cost and outcome indicators are recorded as “no practice.” Figure – Resolving Insolvency in Australia and comparator economies – Recovery Rate Recovery rate(cents on the dollar) 100 92.4 87.5 84.1 82.7 81.8 80 70.5 60 40 20 0 Australia Canada Japan New Zealand United States OECD high income Page 53 Doing Business 2019 Australia Details – Resolving Insolvency in Australia Indicator Answer Score Proceeding receivership BizBank is likely to move aggressively to enforce its security right and sell the assets. BizBank will likely be authorized under the loan agreement to ask the court to appoint a receiver, who will then take control of the pledged assets. As Mirage will have no other assets left, this will results in the appointment of a liquidator to the company, and the receiver and the liquidator will proceed concurrently. Outcome going concern The receiver will take the maximum efforts to sell the hotel as a going concern, because that is the best way to maximize the proceeds of the sale. If the hotel is sold, this will allow the business to continue trading under different ownership. Time (in years) 1.0 It takes 12 months to complete the receivership procedure in Australia. As a first step, BizBank will ask the court to appoint a receiver, who will take control of the business/assets. The receiver will evaluate the company's financials to determine whether continuous operations are possible or whether Mirage's business should be terminated. Most likely, it will be possible to keep Mirage operating, so the receiver will make arrangement to continue and possibly improve the performance of the business. In the meantime, the receiver will look for a buyer willing to purchase the hotel as a going concern. After the sale of the business, the receiver will remit the payment to the secured creditor. Cost (% of 8.0 The cost of the procedure will amount to approximately 8% of the value of the hotel. Major estate) expenses will include attorneys' fees (around 2.5%), remuneration of the receiver (around 4.5%), and other fees (around 1%), including court fees, real estate agents' fees and marketing costs. Recovery rate 82.7 (cents on the dollar) Page 54 Doing Business 2019 Australia Details – Resolving Insolvency in Australia – Measure of Quality Answer Score Strength of insolvency framework index (0-16) 11.0 Commencement of proceedings index (0-3) 2.5 What procedures are available to a DEBTOR when commencing insolvency proceedings? (a) Debtor may 1.0 file for both liquidation and reorganization Does the insolvency framework allow a CREDITOR to file for insolvency of the debtor? (b) Yes, but a 0.5 creditor may file for liquidation only What basis for commencement of the insolvency proceedings is allowed under the (a) Debtor is 1.0 insolvency framework? generally unable to pay its debts as they mature Management of debtor's assets index (0-6) 5.0 Does the insolvency framework allow the continuation of contracts supplying essential goods No 0.0 and services to the debtor? Does the insolvency framework allow the rejection by the debtor of overly burdensome Yes 1.0 contracts? Does the insolvency framework allow avoidance of preferential transactions? Yes 1.0 Does the insolvency framework allow avoidance of undervalued transactions? Yes 1.0 Does the insolvency framework provide for the possibility of the debtor obtaining credit after Yes 1.0 commencement of insolvency proceedings? Does the insolvency framework assign priority to post-commencement credit? (b) Yes over 1.0 ordinary unsecured creditors but not over secured creditors Reorganization proceedings index (0-3) 0.5 Which creditors vote on the proposed reorganization plan? (a) All creditors 0.5 Does the insolvency framework require that dissenting creditors in reorganization receive at No 0.0 least as much as what they would obtain in a liquidation? Are the creditors divided into classes for the purposes of voting on the reorganization plan, No 0.0 does each class vote separately and are creditors in the same class treated equally? Creditor participation index (0-4) 3.0 Does the insolvency framework require approval by the creditors for selection or Yes 1.0 appointment of the insolvency representative? Does the insolvency framework require approval by the creditors for sale of substantial No 0.0 assets of the debtor? Does the insolvency framework provide that a creditor has the right to request information Yes 1.0 from the insolvency representative? Does the insolvency framework provide that a creditor has the right to object to decisions Yes 1.0 accepting or rejecting creditors' claims? Note: Even if the economy’s legal framework includes provisions related to insolvency proceedings (liquidation or reorganization), the economy receives 0 points for the strength of insolvency framework index, if time, cost and outcome indicators are recorded as “no practice.” Page 55 Doing Business 2019 Australia Labor Market Regulation Doing Business presents detailed data for the labor market regulation indicators on the Doing Business website (http://www.doingbusiness.org). The report does not present rankings of economies on these indicators or include the topic in the aggregate ease of doing business score or ranking on the ease of doing business. The most recent round of data collection was completed in May 2018. See the methodology for more information. What the indicators measure Case study assumptions Hiring To make the data comparable across economies, several assumptions about the (i) whether fixed-term contracts are prohibited for worker and the business are used. permanent tasks; (ii) maximum cumulative duration of fixed-term contracts; (iii) length of the The worker: probationary period; (iv) minimum wage. - Is a cashier in a supermarket or grocery store, age 19, with one year of work experience. Working hours - Is a full-time employee. (i) maximum number of working days allowed per - Is not a member of the labor union, unless membership is mandatory. week; (ii) premiums for work: at night, on a weekly rest day and overtime; (iii) whether there are The business: restrictions on work at night, work on a weekly rest - Is a limited liability company (or the equivalent in the economy). day and for overtime work; (iv) whether - Operates a supermarket or grocery store in the economy’s largest business city. nonpregnant and nonnursing women can work For 11 economies the data are also collected for the second largest business city. same night hours as men; (v) length of paid annual - Has 60 employees. leave. - Is subject to collective bargaining agreements if such agreements cover more than 50% of the food retail sector and they apply even to firms that are not party to them. Redundancy rules - Abides by every law and regulation but does not grant workers more benefits than (i) whether redundancy can be basis for terminating those mandated by law, regulation or (if applicable) collective bargaining workers; (ii) whether employer needs to notify agreements. and/or get approval from third party to terminate 1 redundant worker and a group of 9 redundant workers; (iii) whether law requires employer to reassign or retrain a worker before making worker redundant; (iv) whether priority rules apply for redundancies and reemployment. Redundancy cost (i) notice period for redundancy dismissal; (ii) severance payments due when terminating a redundant worker. Job quality (i) whether law mandates equal remuneration for work of equal value and nondiscrimination based on gender in hiring; (ii) whether law mandates paid or unpaid maternity leave; (iii) length of paid maternity leave; (iv) whether employees on maternity leave receive 100% of wages; (v) availability of five fully paid days of sick leave a year; (vi) eligibility requirements for unemployment protection. Page 56 Doing Business 2019 Australia Labor Market Regulation - Australia Details – Labor Market Regulation in Australia Answer Hiring Fixed-term contracts prohibited for permanent tasks? No Maximum length of a single fixed-term contract (months) No limit Maximum length of fixed-term contracts, including renewals (months) No limit Minimum wage applicable to the worker assumed in the case study (US$/month) 1957.6 Ratio of minimum wage to value added per worker 0.3 Maximum length of probationary period (months) 6.0 Working hours Standard workday 7.6 Maximum number of working days per week 6.0 Premium for night work (% of hourly pay) 25.0 Premium for work on weekly rest day (% of hourly pay) 100.0 Premium for overtime work (% of hourly pay) 50.0 Restrictions on night work? No Whether nonpregnant and nonnursing women can work the same night hours as men Yes Restrictions on weekly holiday? No Restrictions on overtime work? No Paid annual leave for a worker with 1 year of tenure (working days) 20.0 Paid annual leave for a worker with 5 years of tenure (working days) 20.0 Paid annual leave for a worker with 10 years of tenure (working days) 20.0 Paid annual leave (average for workers with 1, 5 and 10 years of tenure, in working days) 20.0 Redundancy rules Dismissal due to redundancy allowed by law? Yes Third-party notification if one worker is dismissed? No Third-party approval if one worker is dismissed? No Third-party notification if nine workers are dismissed? No Third-party approval if nine workers are dismissed? No Retraining or reassignment obligation before redundancy? Yes Priority rules for redundancies? No Priority rules for reemployment? No Redundancy cost Notice period for redundancy dismissal for a worker with 1 year of tenure 2.0 Notice period for redundancy dismissal for a worker with 5 years of tenure 4.0 Notice period for redundancy dismissal for a worker with 10 years of tenure 4.0 Notice period for redundancy dismissal (average for workers with 1, 5 and 10 years of tenure) 3.3 Severance pay for redundancy dismissal for a worker with 1 year of tenure 4.0 Page 57 Doing Business 2019 Australia Severance pay for redundancy dismissal for a worker with 5 years of tenure 10.0 Severance pay for redundancy dismissal for a worker with 10 years of tenure 12.0 Severance pay for redundancy dismissal (average for workers with 1, 5 and 10 years of tenure) 8.7 Job quality Equal remuneration for work of equal value? Yes Gender nondiscrimination in hiring? Yes Paid or unpaid maternity leave mandated by law? Yes Minimum length of maternity leave (calendar days)? 126.0 Receive 100% of wages on maternity leave? Yes Five fully paid days of sick leave a year? Yes Unemployment protection after one year of employment? Yes Minimum contribution period for unemployment protection (months)? 0.0 Page 58 Doing Business 2019 Australia Business Reforms in Australia In the past year, Doing Business observed a peaking of reform activity worldwide. From June 2, 2017, to May 1, 2018, 128 economies implemented a record 314 regulatory reforms improving the business climate. Reforms inspired by Doing Business have been implemented by economies in all regions. The following are reforms implemented since Doing Business 2008. = Doing Business reform making it easier to do business. = Change making it more difficult to do business. DB2014 Getting Credit: Australia improved its credit information system through the Privacy Amendment (Enhancing Privacy Protection) Act 2012, which permits credit bureaus to collect account payment history with improved privacy protection. DB2013 Getting Credit: Australia strengthened its secured transactions system by adopting a new national legal regime governing the enforceability of security interests in personal property and implementing a unified collateral registry. DB2012 Resolving Insolvency: Australia clarified the priority of claims of unsecured creditors over all shareholders’ claims and introduced further regulation of the profession of insolvency practitioners. DB2011 Labor Market Regulation: Australia introduced the severance payment obligation and reemployment consideration applicable in cases of redundancy dismissals. Annual leave was increased and averaging of hours is now allowed in shorter periods of time. In addition, notice period applicable in case of redundancy dismissals was decreased. DB2010 Dealing with Construction Permits: Australia reduced the time needed for dealing with construction permits by streamlining procedures. Paying Taxes: Australia made paying taxes easier for companies by abolishing the stamp duty on contracts. DB2008 Starting a Business: Australia made starting a business less costly by cutting the registration fee for new businesses by half. Page 59 Doing Business 2019 Australia Page 60