
Australia has one of the most robust and rapidly growing logistics industries in the world, driven by its vast geography, thriving e-commerce sector, and increasing international trade. The Australian logistics market is anticipated to grow at a CAGR of 4.5% from 2023 to 2028, reflecting strong demand for transportation, warehousing, and supply chain services.
The logistics sector contributes over AUD 130 billion to the Australian economy and employs nearly 1.2 million people across various sub-sectors, including road freight, maritime logistics, and air cargo.
With a well-developed infrastructure and government support for businesses, Australia is an attractive destination for foreign entrepreneurs looking to open a logistics business in Australia.
Is a Logistics Business Profitable in Australia?
Yes, the logistics industry in Australia is highly profitable, especially with the rise of e-commerce, global trade, and increased demand for efficient supply chain solutions.
Key profitability factors include:
- E-Commerce Growth: Online retail sales in Australia reached AUD 62.3 billion in 2023, increasing the need for last-mile delivery services.
- Booming Freight Transport: Road freight alone accounts for nearly 75% of the country’s total freight movement, making trucking and transport businesses highly lucrative.
- Government Infrastructure Investment: The Australian government is investing over AUD 110 billion in transport infrastructure projects, boosting the logistics industry.
- Opportunities in Niche Segments: Cold chain logistics, express parcel delivery, and warehousing solutions offer high profit margins.
Despite the competition, a well-structured logistics company in Australia can be highly successful if planned and managed efficiently.
How to Start a Logistics Business in Australia?
In order to successfully start a logistics business in Australia, you must follow the steps given below:
1. Choose Your Legal Structure
Decide the type of legal entity in Australia that is suitable for your logistics business. Our experts from OnDemand International can assist you in selecting the most suitable legal structure for your business.
2. Register for an Australian Business Number (ABN)
- All Australian businesses must have an ABN, which is used to identify their company to the government and other organizations.
- You can apply online through the Australian Business Register (ABR) website.
3. Register Your Business Name
- You must choose a name for your firm and register it with the Australian Securities & Investments Commission (ASIC).
- Go to the ASIC Business Name Registration page to complete this process.
4. Get a Goods and Services Tax (GST) Registration (If Applicable)
If your firm expects to have a turnover of $75,000 or more yearly, you’ll have to register for GST with the Australian Taxation Office (ATO).
Documents Needed to Start a Logistics Business in Australia
Foreign entrepreneurs must prepare the following documents:
- Business Registration Certificate
- Australian Business Number (ABN) and Tax File Number (TFN)
- Operating licenses and permits
- Commercial vehicle registration and insurance documents
- Lease agreement for office/warehouse space
Expected Costs to Register a Logistics Business in Australia
The initial cost to start a logistics business in Australia is based on the scale and nature of operations.
Estimated costs include:
- Business registration and legal fees: AUD 1,000 – AUD 5,000
- Vehicle purchases or leasing: AUD 50,000 – AUD 500,000
- Warehouse lease and setup: AUD 50,000 – AUD 200,000
- Employee wages: AUD 60,000 – AUD 100,000 per year per employee
- IT infrastructure and tracking software: AUD 10,000 – AUD 50,000
Taxation and Compliance for Logistics Companies in Australia
1. Corporate Tax
- If you register a Pty Ltd company in Australia, you are subject to:
- 25% corporate tax rate for small businesses (turnover under AUD 50 million)
- 30% corporate tax rate for large businesses
2. Goods and Services Tax (GST)
Businesses with an annual turnover exceeding AUD 75,000 must register for GST (10%).
3. Payroll Tax
Applies to businesses with annual wages exceeding AUD 1.2 million (varies by state).
Conclusion
Australia offers a thriving logistics market, government incentives, and a strategic location for global trade, making it an ideal destination for foreign entrepreneurs looking to set up a logistics business in Australia. With careful planning, strategic investment, and compliance with local regulations, your logistics company can achieve significant growth and profitability in this dynamic industry.
Are you ready to set up your logistics company in Australia? Contact our business registration experts from OnDemand International to assist you through the registration process!
FAQ’s
Yes, foreign entrepreneurs can start a logistics business in Australia by registering a company and obtaining the necessary licenses and visas.
Yes, but niche markets like cold chain logistics and last-mile delivery present strong opportunities for growth.