Transcript Why Melbourne for Investment? Presentation

Invest in Melbourne
Invest Victoria Services
• Invest Victoria is part of the Victorian Government’s Department
of Economic Development, Jobs, Transport and Resources.
• Invest Victoria provides a single entry point to a range of
investment facilitation services.
• Invest Victoria is located in 20 offices around the world.
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Victoria is at the heart of 68% of Australia’s economic activity.
Australia boasts:
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12th largest economy
A population of 24 million people1
GDP of A$1.62 trillion2
GDP per capita of US$51,211
South eastern triangle
comprises:
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68 per cent of Australia’s population
63 per cent of all economic activity
Victoria comprises:
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Sources:
1. ABS, Cat No. 3101.0, Sept 2016
2. ABS, Cat No. 5220.0, Sept 2016
Map
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Three per cent of Australia’s land mass
22 per cent of Australia’s GDP
25 per cent of Australia’s population
Forecast to grow to 10 million in 2051
Australian capital cities demographics.
Table: Significant urban areas – population growth
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Significant
urban area
State
2006
2014
Growth
rate p.a.
Sydney
NSW
4,256,161
4,840,628
1.6%
Melbourne
VIC
3,760,760
4,440,328
2.1%
Brisbane
QLD
1,908,265
2,274,560
2.2%
Perth
WA
1,576,912
2,021,203
3.2%
Adelaide
SA
1,189,243
1,304,631
1.2%
Canberra
ACT
335,170
385,996
1.8%
Hobart
TAS
204,753
219,243
0.9%
Darwin
NT
113,461
140,386
2.7%
These globally successful Australian
companies are headquartered in
Melbourne.
One of the world’s largest
mining companies.
Australia’s leading technology and
telecommunications company
operating in 22 countries with a
focus on Asia Pacific.
A global leader in investor and
share registry services
operating in over 20 countries
worldwide.
The world’s largest supplier of
flexible packaging with global
manufacturing operations.
One of the top 25 listed banks
in the world and the largest
Australian bank in Asia.
A global biopharmaceutical
company and leader in influenza
vaccines with one of the world’s
largest plasma collection
networks.
Australia’s leading business
bank, with operations in Asia,
the US, UK and New Zealand.
Australia’s largest provider of
private health insurance and
health solutions.
The world’s largest supplier of
commercial explosives and a
global leader in mining and
tunnelling ground support
services.
The world’s third largest painted
and coated steel manufacturer
operating across Asia and the US.
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Victoria is home to over 1,000 international
companies.
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Over 170 Japanese companies headquartered in Victoria.
Uniqlo chooses Melbourne.
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Why Companies invest in Melbourne
STRONG ECONOMY
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25 Years of continuous economic
growth.1
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2.1% average annual growth over the
last 10 years.1
WORLD-CLASS INFRASTRUCTURE
Extensive road and rail networks linked
to air and sea ports.
•
Melbourne Airport 24/7, international,
curfew free
GROWING POPULATION
ACCESS ASIA PACIFIC
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6 million people in Victoria.2
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Similar time zone as Asia Pacific
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Projected to be the largest city as early as
2030.3
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Melbourne time zone bridges America
and European business hours.
WORLD’S MOST LIVEABLE CITY
GREAT TALENT
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Premier location for commercially oriented
graduates.
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More graduates from Science, IT,
Engineering, Agricultural & Environmental
Studies, Management & Commerce, Food
& Hospitality Studies than any other
Australian city.4
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Highest ranked university – University of
Melbourne.5
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Largest University – Monash University.
Sources:
1.
2.
3.
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ABS, cat. no 5220.00, chain volume measures (released Nov 2015)
ABS, cat. no 3101.0, released Sep 2016
ABS, cat. no. 3222.0, Population Projections, Australia, 2012 (base) to 2101, Series A,
Released Nov 2013
•
Six years in a row.6
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Cultural and sporting events.
COMPETITIVE BUSINESS COSTS
4.
5.
6.
7.
8.
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Lower costs than NSW and QLD6
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Australia’s second lowest payroll tax.7
Department of Education, 2015 Award Course Completions
Times Higher Education, World University Rankings, 2015-16 (33rd)
Economist Intelligence Unit, 2011-16
http://www.payrolltax.gov.au , as at 22.06.2016
Energy Advice, December 2015 Update
Victoria’s strong economy
• 3% of Australia’s land mass, 24% of economic activity
• An economy larger than Singapore or New Zealand
• Victoria has a diverse and stable economy across
services, manufacturing and resources.
Victoria as a state economy is larger than
Singapore, Malaysia, Philippines and New
Zealand
GROSS DOMESTIC PRODUCT
ASIA PACIFIC COUNTRIES 2015
$1,600
(US$ BILLION)
$1,339.54
GDP/GSP (US$ billion)
$1,200
$861.93
$800
$395.28
$400
$309.93
$309.91
$296.22
$292.74
$291.97
$173.75
$0
Australia
Indonesia
Thailand
Hong Kong
Victoria
Asia Pacific country
Note:
- National GDP for calendar year 20151
- Victorian GSP for financial year 2014-20152
- Average annual exchange rate for financial year 2014-153
Sources:
1. World Bank, GDP ranking table 2015 - Last updated - Jul 2016
2. ABS cat. no. 5220.0, at June 2015, released Nov 2015
3. ATO, https://www.ato.gov.au/Rates/Foreign-exchange-rates/, as at 19 Jul 2016
Malaysia
Singapore Philippines
New
Zealand
Victoria has a diverse economy across
services, manufacturing and resources.
VICTORIA’S GROSS VALUE ADDED (GVA)
BY INDUSTRY IN CURRENT PRICES (% SHARE) FY2015
Electricity, gas, water and
Accommodation and food
waste services
services
2.3%
2.9%
Mining
Administrative and support
2.4%
services
3.1%
Rental, hiring and real
estate services
3.2%
Other services
2.2%
Arts and recreation services
1.2%
Financial and insurance
services
12.4%
Professional, scientific and
technical services
9.2%
Agriculture, forestry and
fishing
3.4%
Information media and
telecommunications
4.1%
Manufacturing
9.0%
Public administration and
safety
4.8%
Health care and social
assistance
8.3%
Transport, postal and
warehousing
5.5%
Wholesale trade
5.6%
Construction
7.5%
Retail trade
6.0%
Source: ABS cat. no. 5220.0 as at June 2015 (released November 2015)
Education and training
6.9%
Victoria’s service industries have grown
strongly over the last five years.
ANNUAL AVERAGE GROWTH
2010-2015
Professional, scientific and technical services
Rental, hiring and real estate services
Health care and social assistance
Financial and insurance services
Information media and telecommunications
Arts and recreation services
Education and training
Retail trade
Agriculture, forestry and fishing
Ownership of dwellings
Wholesale trade
Construction
Public administration and safety
Electricity, gas, water and waste services
Other services
Accommodation and food services
Transport, postal and warehousing
Manufacturing
Administrative and support services
Mining
5.0
4.4
3.9
High growth service
industries
Industry
2.9
2.9
2.7
2.3
2.3
2.2
1.8
1.8
1.5
1.4
0.9
1.9 – average
0.9
0.6
--- growth greater than VIC average
--- total all industries' average
0.2
-0.6
-1.0
-1.9
-4
Source: ABS, cat. no. 5220.0, Australian National Accounts: State Accounts,
2015
-2
0
Annual average growth (%)
2
4
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Economic Activity is Strong
• Retail Sales: 3.5% increase over year to December 2016
• Value of total building approvals: +4.5 % over the year to December 2016
• Victorian household consumption: +2.4 % over the year to September 2016
• Victorian goods exports volumes: +3.8 % over the year to September 2016
• Melbourne's CPI rose by 1.5 % higher over the year to December 2016.
Victoria’s strong and stable economic
outlook.
ECONOMIC FORECASTS
2015-16
2016-17
forecast
2017-18
projection
2018-19
projection
Real gross state product (%)
2.5
2.75
2.75
2.75
Employment growth rate (%)
1.50
1.50
1.50
1.50
Unemployment rate (%)
6.25
6.25
6.00
5.75
Consumer price index (%)
2.75
2.75
2.50
2.50
Wage price index (%)
3.25
3.50
3.50
3.50
Population growth (% pa)
1.80
1.80
1.80
1.80
Source: Victorian Department of Treasury and Finance, Budget Paper 2, Strategy and Outlook 2016-17
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Four year forecasts:
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Growing economy: 2.75%
Low and stable prices
Declining unemployment
Rising operating $ surplus
Melbourne – leading retail in the Asia Pacific
• Melbourne is home to an exciting mix of international
designer brands, flagship stores, local fashion
retailers, world class department stores and a fashion
reputation for style and elegance while at the same
time being fashion forward.
• Melbourne has emerged as a leading regional
shopping destination in the Asia Pacific region, with
9.2 million tourist shoppers in the last year. Retail
sales are now surging with annual sales dwarfing
Hong Kong, Los Angeles, Paris and Singapore.
• Retail trade in Melbourne is showing strong growth
due to increased population and high disposable
income. Melbourne is home to 30% more fashion
retailers than any other city in Australia. Over the last
decade, the number of retail establishments has
increased by 38 percent.
Low risk, transparent, international
• Competitive business environment
• Australia is ranked equal first for global risk
• Australia is rated as the most stable country in the
Asia Pacific
• Robust, clear and transparent legal system.
• Australia ranked top 5 for IP protection
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Melbourne is projected to be Australia’s largest city as
early as 2030 with a population of 6.1 million.
• Over the last decade Melbourne’s population has grown significantly more than any other city in Australia,
adding almost 900,000 residents between 2004 -15.1
• Melbourne enjoyed the largest growth (2.1%) of all capital cities including Sydney (1.7%), ahead of the national
average growth (1.4%) over the 2014-2015 period.1
• Melbourne’s population is projected to grow faster than the national average over coming decades. 2
Sources:
1. ABS, cat. no. 3218.0 at June 2015 (released March 2016)
2. ABS, cat. no. 3222.0, Population Projections, Australia, 2012 (base) to 2101, Series A, Released Nov 2013
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Victoria’s strong population growth is
driven by overseas migration.
VICTORIA’S PROJECTED 40 YEAR POPULATION INCREASE
5.5 MILLION
1.8 MILLION
NATURAL INCREASE
10.1 MILLION
PEOPLE IN VICTORIA.2
PEOPLE IN VICTORIA.1
2.6 MILLION
NET OVERSEAS MIGRATION
130,000
NET INTERSTATE MIGRATION
Year 2011
Year 2051
Source:
1. ABS, cat no 3101.0 (released Sep 2016)
2. DEWLP, Victoria in Future 2016
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Melbournians are young, well educated
and multi-cultural.
DEMOGRAPHIC PROFILE
• Melbourne is home to 1.7 million households, estimated to grow to over
2.4 million households by 2036.1
AGE OF MELBOURNE RESIDENTS
• Melbourne has a relatively young population for a major city within a
developed country. The latest census in 2011 revealed Melbourne's
population had a median age of 36, with 37 percent of the population
aged between 25-49 years.2
SOCIAL PROFILE
• Melbourne is a well-educated and multicultural society, living in single
family households in houses.
• 35 percent of the current labour force is degree qualified or higher and 72
per cent has a post-school qualification (which includes bachelor degree
or higher, diploma and certificate).
• Melbourne has a culturally diverse population, where 58 percent of the
population have either both or one parent born overseas. Approximately
one-third of all households speak two or more languages, with the top
languages (outside of English) being Greek, Italian, Mandarin,
Vietnamese and Cantonese.
• Melbourne is comprised of family households (72%), single person
households (23%) and group households (5%). The average number of
people per household is 2.6, the average number of children per family is
1.8, and the average number of persons per bedroom is 1.1.
Sources:
1. ABS, cat. no. 3101.0 at Mar 2016 (released Sep 2016)
2. ABS Census 2011
LEVEL OF EDUCATION
Melbourne is an affluent society with a
sizeable workforce.
TOP EMPLOYERS BY INDUSTRY
LABOUR FORCE PROFILE
• 61 percent of the population is of working age, that is between 20 years
and 64 years, and forty percent of those employed hold a managerial or
professional position. Other significant roles include clerical and
administrative workers (15.3% of the workforce) and technicians and trades
workers (13.4% of the workforce). Fifteen percent of the labour force work
in their own or the family business.2
• Melbourne's workforce is structurally balanced, with male and female
employees comprising 54 percent and 46 per cent of workers respectively.3
Approximately two-thirds of workers are employed full-time and around
one-third work part-time.3
• Approximately one-third of all workers are employed in either the
healthcare and social assistance, manufacturing or retail sectors.2
WEEKLY FAMILY INCOME
INCOME PROFILE
• Melbourne is an affluent society where a two income family with children
has a median weekly income of A$2,346. Thirty-two percent of one-person
households has a weekly income of between A$300 – A$599 while 30
percent earn over A$1,000 per week.
• Melbourne has relatively high levels of home ownership. Approximately
70% of households own their dwelling (with or without a mortgage) while 27
percent of households rent.
Sources:
1. ABS cat. no. 3101.0, at Mar 2016 (released Sep 2016)
2. ABS Census 2011
3. ABS cat. no. 6202.0 at Aug 2016 (released Sep 2016)
Victoria has lower business costs than NSW and QLD.
State comparisons of business costs
Cost
Vic v
NSW
VIC v
QLD
VIC
NSW
QLD
SA
WA
TAS
NT
ACT
Business Tax %)1
-4.3%
-2.2%
17.7
18.5
18.1
19.4
11.7
18.7
14.7
19.5
Payroll tax (%)2
-11.0%
2.1%
4.85
5.45
4.75
7.95
5.5
6.1
5.5
6.85
Prime industrial lease costs (average A$/m2/per annum)3
-37.3% -28.2%
79
126
110
100
109
n/a
n/a
n/a
Prime office lease costs (average A$/m2/per annum)4
-29.8% -15.7%
440
627
522
386
613
n/a
n/a
n/a
Electricity - Small user 160 MWh (A$)5
-11.4% -15.1% 196.19 221.48 230.95
n/a
n/a
n/a
n/a
n/a
Electricity - Medium user - 1,000 MWh (A$)5
-28.6% -29.6% 132.17 185.21 187.68
n/a
n/a
n/a
n/a
n/a
Electricity - Large user - 10,000 MWh (A$)5
-29.8% -23.0%
126.9
n/a
n/a
n/a
n/a
n/a
Electricity - Very large user - 100,000 MWh (A$)5
-26.5% -30.8%
73.7 100.33 106.49
n/a
n/a
n/a
n/a
n/a
Gas - Small user - 1,000 GJ (A$)5
-22.4% -59.3%
13.4
17.26
32.93
n/a
n/a
n/a
n/a
n/a
Gas - Medium user - 10,000 GJ (A$)5
-41.2% -70.2%
7.78
13.24
26.07
n/a
n/a
n/a
n/a
n/a
Gas - Large user - 500,000 GJ (A$)5
-30.8% -44.9%
6.49
9.38
11.77
n/a
n/a
n/a
n/a
n/a
Container transport costs (To port from key industrial
area) (A$)
-46.1% -19.1%
275
510
340
n/a
n/a
n/a
Sources:
1. Institute of Public Affairs, State Business Tax Calculator
2. http://www.payrolltax.gov.au , as at 17.08.2015
3. Knight Frank Research, November 2015
4. Colliers Research, Jan 2015
5. Energy Advice, April 2015
6. TM Insight, April 2015
97.74 139.15
257
502
Melbourne offers the lowest office rent of the
major east-coast cities.
• Incentives are common in Australia and are typically offered in the form of a rent free period or
contribution towards office fit-out.
Net Office Rents in Australian Capital Cities
(A Grade & B Grade)
$700
$600
A$/m2/annum
$500
$400
40%
$627
32%
35%
31%
$511
$613
35%
$522
$440
28%
$430
$413
30%
25%
25%
$386
$341
$325
20%
$300
15%
$200
10%
$100
5%
$0
0%
Melbourne
Sydney
Premium
Brisbane
Secondary
Source: Colliers Research Jan 2015
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Perth
% Average Incentive
Adelaide
Well-connected Port of Melbourne is the
largest and busiest container port in
Australia.
During 2014-15, total trade through the Port of
Melbourne increased by 1.8% over the previous
financial year to 87.0 million revenue tones.1
•
The Port of Melbourne is Australia’s largest container,
automotive and general cargo port. It handled around
36% of Australia’s container trade in 2014-15.1
•
•
•
Port of Melbourne moved 350,000 motor vehicle units
in 2014-15, making it the premier hub for motor vehicle
trade in Australia.1
Port of Melbourne handles more general cargo than
Sydney, Adelaide, Brisbane and Fremantle ports
combined. Furthermore, Victoria’s second city Geelong
is Australia’s next largest general cargo port behind
Melbourne.3
Port of Melbourne trade is sourced across a trade
catchment area covering Victoria, eastern South
Australia, Tasmania and southern New South Wales.
As a result, the Port is a significant economic asset for
both Victoria and the rest of south eastern Australia.1
Sources:
1. Port of Melbourne Corporation Annual Report 2014-15, as at 20 Jul 2016
2. Port of Melbourne Corporation Annual Report 2013-14, as at 20 Jul 2016
3. Ports Australia – Trade Statistics 2013/14, as at 20 Jul 2016
4. tm insight – Supply chain cost comparisons between states, August 2015
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ANNUAL CONTAINER TRADE
2013-2014 (TEU)2,3
Melbourne
2,533,000
Sydney
Port (City)
•
2,206,369
Brisbane
1,097,365
Perth
703,327
Adelaide
382,681
-
1,500,000
TEU
3,000,000
Melbourne has lower land side transport
costs to port.
Melbourne has low costs for transport to/from
ports to the key industrial locations.
Melbourne has the most break-bulk berths in
Australia.
BREAK-BULK BERTHS
CONTAINER TRANSPORT COSTS
(FROM PORT TO KEY INDUSTRIAL
AREAS FOR A 40’ CONTAINER)
9
$600
$510
Number of berths
$502
$500
A$
$400
$340
$275
$300
8
8
$257
$200
7
6
6
5
5
4
4
4
3
2
$100
1
0
$Brisbane
Sydney Melbourne Adelaide
Port city
Brisbane
Perth
Sydney Melbourne Adelaide
Port city
The above rates are applicable to a larger scale container importer.
Sources:
1. tm insight – Supply chain cost comparisons between states, August 2015
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Perth
Interstate road transport costs are
competitive from Melbourne.
SINGLE PALLET TRANSPORT COST FROM
MELBOURNE – AS AT APRIL 2015
Melbourne
Sydney
Brisbane
Adelaide
Perth
Tasmania
B-DOUBLE FULL TRUCK LOAD COSTS (34 PALLETS)
-
$2,200
$4,400
$2,300
$5,800
$4,300
Sydney
$1,650
-
$2,810
$2,869
$4,900
$6,336
Brisbane
$3,200
$1,564
-
$3,164
$5,400
$6,954
Adelaide
$1,900
$2,791
$3,010
-
$3,600
$5,600
Perth
$3,425
$3,822
$4,200
$3,000
-
$7,700
$200
$160
$110
$142
$100
$Brisbane Sydney Adelaide Hobart
Capital city
Perth
METROPOLITAN LOCAL TRANSPORT
CARTON COSTS FROM MELBOURNE
(COST PER PALLET) – AS AT APRIL 2015
AS AT APRIL 2015
$40
$32
$26
$28
Brisbane
Sydney Melbourne Adelaide
Capital city
$23
$23
A$
A$
$245
$115
Melbourne higher rates to Sydney reflect larger quantity of freight distributed our of
Melbourne.
$30
$335
$300
A$
Melbourne
$400
$20
$10
$-
$12.00
$10.00
$8.00
$6.00
$4.00
$2.00
$-
$9.35
$8.95
$8.80
$9.45
Perth
Sources:
1. tm insight – Supply chain cost comparisons between states, August 2015
Note: Rates are applicable for a medium scale shipper.
Capital city
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Darwin
$10.30
$8.40
TAX CONSIDERATIONS WHEN DOING BUSINESS IN
MELBOURNE
•
Victoria’s payroll tax rate is the second lowest in the country.
•
Australia has the sixth lowest tax burden of the OECD
countries.
•
Australia’s personal income tax rates are levied on a sliding
scale.
•
A federal R&D tax incentive provides companies with a tax
offset for expenditure on eligible R&D activities.
Area of responsibility and tax varies
according to jurisdiction.
AREA OF RESPONSIBILITY
TAX RESPONSIBILITY
•
•
•
•
Security
Defence
Immigration
Environment
• Personal income tax
• Goods and service tax
(GST)
• Capital gains tax
• Departure tax
•
•
•
•
•
Roads
Prisons
Housing
Public transport
Police and ambulance
services
• Payroll tax
• Land tax
• Land transfer duties
•
•
•
•
•
Town planning
Rubbish collection
Water and sewage
Dog registration
Local roads
• Property tax
- Residential
- Industrial
- Commercial
•
•
•
•
Excise tax
Customs duty tax
Fringe benefit tax
Inheritance tax
Victorian Government Assistance.
Invest Victoria assists businesses with market entry into Australia and provides a range
of confidential facilitation services such as:
•
•
•
•
•
Market Potential – providing market information (specialist research when required) to enable
business case development inclusive of market structure & dynamics, cost-of-doing-business inputs
(human recourses, logistics, utilities & general operating costs).
Business introductions and market access – providing introductions & facilitation to industry
specialists, industry associations, academic institutions, service providers, suppliers and potential
clients, both within Australia and internationally (Vic Government has 18 overseas offices and
collaborates with Federal Agencies based on client needs).
Site location services and authority approvals – providing locational analysis to identify
greenfield or existing site options based on the specific business requirements, assistance with the
development/authority approvals in Victoria and coordination of the full range of State,
Commonwealth and local government approvals.
Your guide to working with Government – providing access to various levels of State and Federal
government inclusion of understanding policy objectives, industry & sector support programs and the
facilitation of major investments projects in Victoria requiring whole-of-market co-ordination.
Continuing client support – undertaking broad project management to provide a solution-based
approach to your initial and ongoing business needs i.e. during the investment assessment,
inception, implementation and post investment stages.
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Summary.
Why businesses choose Melbourne / Victoria as their primary location:
 Melbourne’s business cost base is lower than other capital cities •
Lower cost of real estate (commercial, industrial and other leasehold or freehold)
•
Lower cost of remuneration across multi-sectors
•
Lower cost of distribution and supply chain, with the largest capacity of service provision (road, shipping,
port, air, warehousing, third party service providers)
•
Lower costs of utilities (electricity, gas water)
 Melbourne has the highest quality and largest amount of education facilities and
graduates
 Melbourne has access to a large diverse workforce
 Melbourne is predicted to be Australia’s largest city as early as 2030+
 Melbourne is the world’s most liveable city (sixth year in a row)
 Proactive Government with extensive investment facilitation/assistance services
(local and off-shore)
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