At a glance
- While export grants are paused, businesses must take other paths to get export-ready.
- Deep understanding of market factors – including pricing, tax, and compliance —is essential for success.
- A readiness checklist can confirm financial and operational capacity before global expansion.
Export Market Development Grants have long been a key support for businesses looking to expand offshore. Now this Australian Government program is on hold until 2026, while the government again reviews the level of grants.
But with those grants currently off the table, there is plenty more to focus on to make businesses export-ready, says Rasika Dayananda FIPA, CEO of Sydney-based Australian Accountants.
In fact, now is a good time for advisors to run through expansion-ready checklists, which can involve a significant level of focus and resources.
“The most important thing they must do is develop a deep understanding of the market they want to enter,” says Dayananda, who has worked in various parts of Africa as well as Sri Lanka, Fiji and Australia. “Clients need to know exactly where their product fits in the market, whether there is demand and where it might come from, and how that country’s compliance landscape looks.”
“Then, there’s cultural dynamics, both in the market and the workplace, pricing, taxes and more. All of these factors must be explored early.”
At the same time, Dayananda says, there is a great deal an accountant can do to ensure their clients are prepared not just externally but internally. Without being in the right shape – with the right corporate structure, human resources, cashflow and more – a business is likely to suffer far greater hardship during an overseas expansion.
Key advisory touchpoints for businesses going global
It’s important for clients to understand that international growth is a complex undertaking, Dayananda says. Accountants are very well placed to help guide clients through the many challenges.
“Issues such as tax structures, foreign company regimes, competitor pricing and foreign exchange all need expert attention from the start,” he says. “There are huge risks if expansion is not properly planned.”
Key considerations, Dayananda says, include:
- Pricing strategy: Ask whether the client has conducted a thorough competitor pricing analysis and understood in an objective way whether their brand can carry a premium? Get pricing wrong and there is often no second chance, he says.
- Tax and compliance: Offshore ventures will often trigger Controlled Foreign Company rules, or potential residency status for tax purposes. If you don’t get the initial structure right, Dayananda says, cost and tax blowouts can result.
- Transfer pricing and foreign exchange risk: Here, there are two challenges. One challenge is to meet the level of documentation required to comply with rules in various territories. The other is the financial risk involved in a volatile foreign exchange environment that can quickly erode margins. Hedging may be essential.
- Intellectual property protection: Whether the global growth project will be managed from Australia, will be organised as a joint venture, or involves the opening of a local office or company, trademarks, patents and other protective contracts are essential.
Hot sectors for international growth right now, Dayananda says, include food and agriculture, education, tourism, clean technology, manufacturing and mining, particularly critical minerals.
“Issues such as tax structures, foreign company regimes, competitor pricing and foreign exchange all need expert attention from the start.”
Rasika Dayananda FIPA, CEO, Australian Accountants
When is a client ready to fly?
Overseas expansion is not a good fit for every business. So how does an accountant know if their client has what it takes for success in another country?
Dayananda recommends a simple checklist, to identify whether the main boxes have been ticked.
- The product or service has been confirmed to be in demand in the new territory.
- Market research has been conducted, showing the product and pricing fits the market.
- The business has the operational capacity to deliver in the new territory without causing the team at home to take their eye off the ball, therefore damaging local performance.
- The business has the financial capability to carry the cost of establishing the new market.
- Compliance issues in the new territory – including tax, human resources, marketing, product compliance and so on – are clearly understood
- Intellectual property, tax and employment laws have been reviewed for the purpose of risk management.
- Early monitoring processes are in place to measure performance in the new territory and ensure targets are met.
“If losses build up unchecked, that new market can cost the business a lot more than it should over time,” Dayananda says.
“There is a great deal to consider with global expansion; it is not an easy process. But if the company’s accountants and advisors have helped build strong foundations, the opportunities are very real.”
