Australia-New Zealand Single Economic Market
New Zealand and Australia are moving ahead with plans to make it easier and potentially less costly for businesses to operate across the Tasman.
Following the annual Closer Economic Relations (CER) Trade Ministers’ Meeting in Auckland, the two governments announced further work towards a more ambitious Single Economic Market (SEM) between New Zealand and Australia.
What is changing under the Single Economic Market agenda?
The latest initiatives are aimed at deepening economic integration between the two countries and reducing some of the practical barriers businesses encounter when operating across both markets.
A new Trans-Tasman business-government collaboration programme will focus on areas including:
- regulatory consistency and common standards
- supply chains
- climate adaptation
- innovation and technology
- space and defence industry collaboration.
Australia and New Zealand are also increasing their use of Joint Trans-Tasman Standards by 30% following a new agreement between Standards New Zealand and Standards Australia.
The two countries will also continue coordinating their regional and international trade activity, including through the CPTPP, RCEP, PACER Plus and AANZFTA agreements.
What could this mean for New Zealand businesses operating in Australia?
Closer regulatory and standards alignment has the potential to reduce duplication and make it simpler for businesses to operate in both countries.
However, a more integrated trans-Tasman market does not mean businesses can treat Australia and New Zealand as a single jurisdiction for tax purposes.
New Zealand businesses expanding into Australia still need to consider the tax and business implications of operating internationally. Depending on how a business enters and operates in the Australian market, this can include issues such as business structure, Australian tax registration and compliance, GST, cross-border transactions and the tax treatment of income earned in Australia.
Getting the structure right before establishing operations or committing significant investment can help businesses understand their obligations in both jurisdictions and avoid unnecessary complications later.
Brisbane 2032 opportunities for New Zealand businesses
The CER meeting also highlighted a significant opportunity for New Zealand businesses associated with the Brisbane 2032 Olympic and Paralympic Games.
The New Zealand Government announced a trade mission to Brisbane designed to help New Zealand businesses pursue procurement opportunities arising from an estimated A$15 billion programme of investment and expenditure associated with Brisbane 2032.
For businesses considering tendering for Australian contracts, supplying Australian customers or establishing a presence to pursue these opportunities, early international tax and structuring advice can be an important part of the planning process.
Planning to do business across the Tasman?
The closer Australia and New Zealand become economically, the more opportunities may emerge for businesses on both sides of the Tasman. But businesses expanding internationally still need to understand the different tax, compliance and commercial requirements that apply in each country.
If your business is considering establishing or expanding operations in Australia, international tax advice can help you assess the tax implications and structure your activities appropriately from the outset.
Read the full New Zealand Government article »
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Source: New Zealand Government, Beehive.govt.nz, “CER Trade Ministers strengthen Single Economic Market agenda”, 4 September 2026