For the first time, UK accountants now have easier access to visas to work in Australia and vice versa thanks to the Free Trade Agreement. This agreement will not only aid SMEs in their global pursuits but also enhance accountants’ own international expertise, according to Vicki Stylianou, Group Executive Advocacy & Professional Standards for the IPA Group (IPA).
Since its implementation in May 2023, the UK-Australia Free Trade Agreement (FTA) has created exciting new partnership possibilities, promoting the exchange of technology, skills, and information. This development will serve to strengthen the already strong connection that exists between the two nations with its long-standing history and political ties. As a result, both businesses and people can seize advantage, driving economic growth and improving relations while encouraging collaboration between the two countries.
Agreement fuels global growth and innovation
The relaxation of international borders has opened up new avenues for small businesses, allowing them to tap into fresh markets, skilled labour, and funding sources. This has created greater opportunities for growth and innovation which has seen many services across specific industries now operating and hiring talent from multiple countries. One sector primed to benefit is accountancy.
The most obvious advantage of the FTA is the introduction of mobility arrangements, enabling businesses including accountancy practices to hire younger talent from abroad for up to three years, specifically for individuals aged 35 and under. Extending the work permit duration to three years also significantly boosts career development by transforming short-term roles into meaningful career experiences. This adjustment allows young accounting professionals to refine their skills internationally and encourages them to view these positions as crucial steps in their career journeys, rather than mere temporary jobs. As companies struggle to locate qualified candidates, the FTA provides access to a broader range of expertise, helping to tackle critical skill gaps by expanding the available talent pool.
While valuable, international career opportunities are not however the most lucrative advantage that’s on offer explains Stylianou. It’s the opportunity for export and internationally relevant expertise that will drive the biggest gains.
The differences present pros and cons
Although the long-term outcomes resulting from the FTA are positive, there are still considerable challenges to address. Varying regulatory frameworks and tax systems in different countries have the potential to create confusion and hurdles for businesses. Moreover, adjusting to diverse business cultures may demand additional effort and adaptability. Investing in employee training will be essential, enabling staff to grasp and adjust to different communication styles, while the integration of systems and processes can facilitate smoother transitions.
UK accounting firms are progressively showcasing their skills in fields like international tax planning, fintech, and global finance. Similarly, Australian accountants, with their extensive knowledge of the Asia-Pacific markets, are assisting British firms looking to grow into areas outside of Australia.
The FTA has simplified the process for accountants to operate internationally by making visa procedures more efficient and lowering entry obstacles. Accountants certified in one nation can have their qualifications acknowledged in another, facilitating smoother movement for professionals. Moreover, the FTA has opened up additional outsourcing possibilities, enabling companies to recruit talent from around the world.
The process of setting up satellite offices and conducting business in Australia has become more streamlined, even though there are still some restrictions. Proximity is essential in trading relationships, and even the best free trade agreements can’t solve the issue of 40-day shipping times. Additionally, Brexit has altered the situation, making the UK a less significant option for Australian businesses looking to establish a presence in Europe.
FTA ups trading volume
Australia is the 21st largest trading partner of the UK, with bilateral trade amounting to £20 billion (A$37.91 billion) in the year leading up to the end of Q4 2023, according to the UK’s Department of Business and Trade. In 2023, the UK ranked as Australia’s 11th largest trading partner, experiencing a 16.4% increase in trade value compared to the previous year. Between June 2023 and April 2024, the total goods traded between Australia and the UK amounted to £6.7 billion, which is about A$12.7 billion. This trade is expected to grow even more as both economies take advantage of the opportunities available.
The FTA has removed tariffs on nearly 99% of the goods that Australia sends to the UK, impacting sectors such as agriculture, automotive, and manufacturing. This adjustment is set to greatly assist winemakers, farmers, fisheries, and small businesses by lowering their costs. With these reduced expenses, these producers can boost their competitiveness in both markets, allowing them to sell their products more effectively and connect with a larger customer base.
While the arrangement is not without its hurdles, what it does succeed in is providing an enhanced framework to support a global profession. This subsequently offers a golden opportunity for accountants to use their mutually recognised qualifications to fuel their own international ambitions as well as the SMEs they support.
Note: The IPA Group is one of the world’s largest SME/SMP focused professional accountancy groups, providing a stronger, more powerful voice for its members and the sector globally. It encompasses the Institute of Public Accountants (IPA) in Australia, The Institute of Financial Accountants in the UK, and the Association of Accounting Technicians in Australia. The group works extensively across international borders, supporting training and education across the World. They strive to improve the benchmark in international accountancy practice, supporting global business initiatives.
Author Profile
- Vicki Stylianou, Group Executive Advocacy & Professional Standards for the IPA Group (IPA).
