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As an Aussie, sad to see a homegrown company head overseas. Can understand why though. 30% corporate tax, lower EBITDA: Market Cap and I'm sure plenty of red ta
by glennos 13y ago
As an Aussie, sad to see a homegrown company head overseas. Can understand why though. 30% corporate tax, lower EBITDA: Market Cap and I'm sure plenty of red tape. Tis a shame.
- gadders 13y agoHopefully they will bring plenty of Aussie staff with them. Who then have children eligible to play for England in the Ashes. I think we have need of them.
- falsedan 13y agoThe best investment an Australian developer can make is a passport.
- mahyarm 13y agoSame with a Canadian. Resource industry based economies crowd out the other industries, they have a higher profit : risk ratio.
- cylinder 13y agoAussies resent business, they don't seem to realize that the money that pays their high wages has to come from somewhere.
- wluu 13y agoAs a fellow Ausssie, I'm also sad about this. By the sounds of it, they've given this move a lot of careful consideration. But, rather than just be sad about it... Might be a good opportunity to discuss what can be done to improve on the situation for future Australian companies? In what ways can navigating through the red tape be made simpler? I know there's a lot of small startups springing up across at least Melbourne and Sydney. So it's natural to assume Atlassian aren't the only ones faced with this dilemma of moving overseas to further their business.
- jacques_chester 13y agoIt's probably not about red tape. It's that companies listed on US exchanges have higher valuations than companies listed on the ASX. There's just not that much red tape in Australia. Starting and running a company costs a few hundred bucks per year. If you keep up your books, reporting takes a few minutes per quarter. Bam, you've successfully navigated all the red tape needed to run a software business.
- ig1 13y agoYou don't have to be in the US to be listed in the US, Atlassian are actually moving to the UK but listing in the US.
- nikcub 13y agoExactly. This is all about corporate tax rates, capital gains, transfer pricing, etc.
- jacques_chester 13y agoCould you elaborate? It'd be interesting to know more.
- rayiner 13y agoI don't know about Australia's system, but the U.K. has been a popular target for reincorporation of American companies, along with Ireland and Switzerland: http://online.wsj.com/news/articles/SB10000872396390444230504577615232602107536 http://online.wsj.com/news/articles/SB1000087239639044423050.... Bermuda, a popular domicile in the past, apparently made certain changes to its tax code that caused companies to move to European countries. For corporations, tax rates lead to domicile-shopping because finance analysts use Earnings per Share (EPS), which is computed after taxes, as a key measure of company performance. Relocating from somewhere in the U.S. to the U.K. might substantially increase the total taxes paid by employees and executives (almost every developed country has a higher individual tax burden than the U.S.), but it can goose that all-important EPS number.
- Jack77 13y agoI imagine a big part would the higher trading multiples and thus potentially higher valuation.
- monksy 13y agoYou know that its a bad situation when a company decides moving to the UK will be cheaper.
- deleted 13y ago[deleted]