Compare countries & regions

Australia vs Japan

Australia and Japan side by side — economy, tax, company setup, visas, housing and study, from official and open data.

Economy & society

Metric Australia Japan
Population (2024) 27.20M 123.98M
GDP (current US$) (2024) $1.76T $4.03T
GDP per capita (2024) $64,604 $32,487
GDP growth (annual) (2024) 1.4% 0.1%
Inflation (annual) (2024) 3.2% 2.7%
Unemployment (2025) 4.1% 2.5%
FDI net inflows (2024) $53.39B $16.16B

Business & tax

Metric Australia Japan
Corporate tax General national corporate income tax rate. Sub-national tax is excluded and shown separately where it applies — a cell reading "15.825% +7–21% municipal" means the national rate plus a local business tax. "on trading income" and "on distributed profit" mark countries whose headline rate does not reach all profit. 30% 23.2%
Top income tax Top marginal rate on employment income, NATIONAL layer only — that is what makes the column comparable. Where a sub-national layer applies it is added to the cell rather than folded into the number, so "20% +29–35% municipal" is Sweden's national rate plus its municipal one. Social-security contributions are excluded throughout. 45% 45.945% +10% local
Capital gains Default rate on long-term gains from listed securities, for an individual. Varies by asset, holding period and residency. Where one percentage cannot state the answer the cell says so instead: "effective" = a fixed share of the gain is taxed as ordinary income; "on deemed return" = the tax falls on a notional return, not on realised gains; "as income" = there is no separate capital-gains tax; "Varies" = no single general rate; "No general CGT" = individuals are not taxed on capital gains, though gains that are trading in nature and gains realised in a business still can be. 23.5% effective 20.315%
VAT / GST Standard statutory rate. Where one percentage cannot state it the cell says so: "effective" = the statutory rate applies to a reduced tax base; "temporary" = a time-limited rate charged instead of the statutory one, with its end date; "by supply" / "by state" = a band structure with no single standard rate; "No VAT or GST" = the tax does not exist there, which is not a 0% rate. Reduced, zero and exempt categories are not shown. 10% 10%
Digital nomad visa Whether a dedicated digital-nomad or remote-work visa exists. A country without one may still allow remote work on another status. No Yes
DNV income req. (mo) Minimum income the programme requires, converted to USD. Thresholds are set in local currency and move with it. $8,333

Figures are headline national values gathered for comparison, not tax or legal advice. Definitions differ between countries — read each row's basis before comparing, and verify against the official authority before acting.

Topic by topic

Company Registration

Australia

Companies in Australia register with the Australian Securities and Investments Commission (ASIC) and receive an Australian Company Number (ACN); most also obtain an Australian Business Number (ABN) and register for GST. A proprietary limited company (Pty Ltd) is standard.

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Japan

Foreigners commonly set up a Kabushiki Kaisha (KK) or the simpler Godo Kaisha (GK). Formation involves preparing articles (notarised for a KK), depositing capital and registering with the Legal Affairs Bureau, followed by tax and social-insurance filings.

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Business Banking

Australia

Australia's banking is led by four major banks and is highly digital. Newcomers can often open an account online before arrival and activate it with ID afterwards. A Tax File Number avoids higher withholding tax on interest.

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Japan

Japan's banking mixes megabanks, regional banks and Japan Post Bank, and cash is still widely used. Foreigners can open accounts, usually needing a residence card, a Japanese address and often a phone number; some banks require a few months of residence.

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Investment

Australia

Australia is open to foreign investment, promoted by Austrade, but proposals above monetary thresholds (and any in sensitive sectors or land) need Foreign Investment Review Board (FIRB) approval. There are no exchange controls, so profits repatriate freely; R&D and other incentives are available.

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Japan

Japan promotes inward investment through JETRO, with generally free capital movement. Investments in designated sensitive sectors need prior notification under the Foreign Exchange and Foreign Trade Act (FEFTA); incentives include subsidies, special zones and support for R&D and regional projects.

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Tax System

Australia

Australia taxes income federally through the Australian Taxation Office (ATO) at progressive rates and levies a Goods and Services Tax (GST) on most supplies. Residents are taxed on worldwide income; the tax year runs 1 July to 30 June.

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Japan

Japan levies national income tax (National Tax Agency) plus local inhabitant tax, and a consumption tax on most goods and services. Residents are taxed on worldwide income, with distinct rules for non-permanent residents.

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Work Visa

Australia

Australia uses a points-tested and employer-sponsored visa system. Common routes include the employer-sponsored Skills in Demand / Temporary Skill Shortage visa and points-tested skilled visas. The Department of Home Affairs administers visas, often via SkillSelect.

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Japan

Foreigners work in Japan on a status of residence matching the job — most commonly 'Engineer/Specialist in Humanities/International Services'. You usually need a Certificate of Eligibility (CoE) obtained by the employer before applying for the visa. The Immigration Services Agency oversees the system.

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Student Visa

Australia

The Student visa (subclass 500) lets you study full-time at a CRICOS-registered provider. You apply online through ImmiAccount with an electronic Confirmation of Enrolment (eCoE), Overseas Student Health Cover for the whole stay, evidence of funds and English, and you must satisfy the Genuine Student requirement. The visa allows limited paid work during study — confirm the current hour limits with Home Affairs.

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Japan

Studying in Japan requires the "Student" status of residence. The accepting school usually applies on your behalf for a Certificate of Eligibility (CoE) at a regional immigration bureau; with the CoE you apply for the visa at a Japanese embassy or consulate and receive a residence card on arrival. The CoE is valid for three months, within which you must enter Japan. Part-time work needs separate permission first.

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Tourist Visa

Australia

Everyone needs a visa or travel authority before arriving in Australia. The main options are the Visitor visa (subclass 600), the Electronic Travel Authority (ETA) for eligible passports, and eVisitor for eligible European passports. Stays are typically up to three months per entry, and visitor visas do not allow ongoing work.

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Japan

Japan grants short-term-stay status for tourism and business, typically up to 90 days. Nationals of many countries are visa-exempt for short visits; everyone else applies for a short-term-stay visa at a Japanese embassy or consulate. The Ministry of Foreign Affairs publishes which nationalities are exempt and on what conditions. Short-term visitors cannot work.

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Permanent Residency

Australia

Australian permanent residence comes through skilled (points-tested or employer-sponsored), family, or business/investment streams. PRs can live and work indefinitely; a separate Resident Return Visa is needed to re-enter after the initial travel period.

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Japan

Japanese permanent residence usually requires around ten years of continuous residence (less for spouses of Japanese nationals or high-skilled professionals under a points system), a stable income and good conduct. The Immigration Services Agency decides.

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Citizenship

Australia

Australian citizenship generally requires four years of lawful residence including at least one year as a permanent resident, good character, and passing a citizenship test. Australia allows dual citizenship.

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Japan

Japanese naturalization generally requires about five years of continuous residence, good conduct, stable finances and renouncing other nationalities (Japan does not permit dual nationality for adults). The Ministry of Justice decides applications.

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Employment & Labor

Australia

Australian employment is governed by the Fair Work Act and the National Employment Standards (NES) — a national minimum wage set by the Fair Work Commission, four weeks' paid annual leave, and unfair-dismissal protection. Most jobs are also covered by a 'modern award' or agreement; the Fair Work Ombudsman enforces the rules.

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Japan

Japanese employment is governed by the Labour Standards Act: prefectural minimum wages, capped overtime (via a '36 Agreement'), and paid annual leave from 10 days after six months. Dismissal is difficult and must be objectively reasonable; workplaces with 10+ staff need written work rules. The Labour Standards Inspection Office enforces the law.

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Import & Export

Australia

Australian traders import and export through the Australian Border Force using the Integrated Cargo System. You need an ABN, classify goods under the Customs Tariff to find duty (plus 10% GST), check biosecurity and permit rules, and lodge import declarations for consignments over AUD 1,000. Tariff advice and disputes go through the ABF and Home Affairs.

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Japan

Japanese imports and exports clear through Japan Customs via the NACCS electronic system. You classify goods by HS code to find customs duty, pay consumption tax (10%) on imports, and check whether METI licences apply under the Foreign Exchange and Foreign Trade Act. Advance rulings give classification certainty; disputes go through Customs.

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Trademark & IP

Australia

Australian trademarks are registered with IP Australia. You search the register, file an application classifying goods/services under Nice, and after acceptance it is advertised for a two-month opposition period before registration. An Australian trademark lasts 10 years and is renewable; IP Australia also grants patents and registered designs.

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Japan

Japanese trademarks are registered with the Japan Patent Office (JPO). You search the register, file an application classifying goods/services under Nice, and the JPO substantively examines both absolute and relative grounds. After you pay the registration fee the mark registers, with a two-month post-registration opposition window. A Japanese trademark lasts 10 years and is renewable.

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Jobs

Australia

Workforce Australia is the Australian Government's official employment service and job board, delivered by the Department of Employment and Workplace Relations, and it replaced jobactive in 2022 — so older references to jobactive are out of date. It is open to any job seeker. Skilled foreign workers usually need a work or skilled visa, and because many regions and occupations have skills shortages, the official skilled-occupation lists are the practical tool for targeting where you have the strongest case.

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Japan

Hello Work, run by the Ministry of Health, Labour and Welfare, is Japan's official public employment service — and unusually it includes offices with desks that specialise in supporting foreign workers, so it offers in-person help rather than only listings. The rule that shapes everything else is matching: a foreign worker needs a work-related status of residence that matches the job type. Categories such as Specified Skilled Worker cover defined labour-shortage sectors.

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Salaries

Australia

Australia is unusual in that minimum pay is set mainly through the award system rather than a single national floor: most employees' minimum pay comes from the award covering their industry or occupation, and the National Minimum Wage covers award-free employees only. Rates are reviewed annually by the Fair Work Commission and updated on 1 July. The Fair Work Ombudsman's Pay and Conditions Tool gives official rates for your specific award.

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Japan

Japan's minimum wage is set regionally, by prefecture — so the national figure you may see quoted is a weighted average rather than a rate anyone is actually entitled to. Check your own prefecture through the Ministry of Health, Labour and Welfare, and note that some industries have separate, higher industry-specific minimums on top. For wage data, the MHLW's Basic Survey on Wage Structure is the official source, and unusually it breaks figures down by age as well as occupation and region.

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Scholarships

Australia

Australia's best-known government scholarships are the Australia Awards (funded by DFAT, largely for students from developing countries) and Destination Australia (for study in regional Australia), alongside the Research Training Program for HDR students and many university scholarships. Explore options on Study Australia and each university's site, and apply by their deadlines.

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Japan

Japan's main government scholarship is MEXT (the Japanese Government Scholarship), available through either an embassy recommendation or a university recommendation, covering tuition, a monthly stipend and travel. JASSO also offers grants, and many universities have their own awards. Explore options on Study in Japan and apply by the relevant deadline.

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Study Abroad

Australia

To study in Australia you apply to a registered provider and, once you accept, receive an electronic Confirmation of Enrolment (eCoE). You use the eCoE to apply for the Student visa (subclass 500), showing Overseas Student Health Cover (OSHC), funds and that you are a Genuine Student. Explore options on Study Australia and apply by the deadline.

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Japan

To study in Japan you apply to the school, which then obtains a Certificate of Eligibility (CoE) from immigration on your behalf; with the CoE you apply for the 'Student' visa at a Japanese embassy. Undergraduate applicants often take the EJU exam. After arrival you register your residence. Explore options on Study in Japan and apply by the deadline.

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Housing

Australia

Renting in Australia uses a residential tenancy agreement with a bond (usually about four weeks' rent) lodged with a state bond authority. Buying by foreign nationals generally needs Foreign Investment Review Board (FIRB) approval and is usually limited to new dwellings, not established homes; buyers use a conveyancer, the state land titles office and pay stamp duty plus a foreign-purchaser surcharge.

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Japan

Japan places no restriction on foreigners buying property — you can own land and buildings freehold with no residency requirement. Renting, however, often requires a guarantor or guarantee company plus 'key money' (reikin), a deposit (shikikin) and an agent fee. Purchases are registered (tōki) via a judicial scrivener and carry acquisition and registration taxes.

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Healthcare

Australia

Australia's public scheme, Medicare, covers citizens, permanent residents and people from the eleven countries with a Reciprocal Health Care Agreement. Most other temporary residents need private cover, and international students must hold Overseas Student Health Cover. Medicare does not cover everything — most dental, ambulance and private-hospital care sit outside it — and higher earners without private hospital cover may pay the Medicare Levy Surcharge.

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Japan

Japan has universal coverage through public insurance that is mandatory for residents staying three months or more — either employees' health insurance through an employer, or National Health Insurance enrolled at your local municipal office. Patients generally pay 30% of costs, less for children and older people, with the scheme covering the rest. Premiums are income-based, so keep payments current.

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Insurance

Australia

Australia's main form of social insurance is compulsory superannuation: employers must pay a percentage of your wages into a retirement fund. There is no separate payroll social-security tax beyond the Medicare Levy. Compulsory Third Party motor insurance is required to register a vehicle — it attaches to registration, not merely to driving — while home and life cover are optional. APRA prudentially regulates insurers and super funds, ASIC oversees conduct, and the government's Moneysmart site gives independent consumer guidance.

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Japan

Beyond health cover, Japan's social insurance has two main parts: public pension — either the National Pension or the Employees' Pension, handled by the Japan Pension Service — and employment plus work-injury (rōsai) insurance for employees. Pension enrolment is mandatory for residents, not just for employees, which is the point most often missed. For drivers, compulsory automobile liability insurance (jibaiseki) is required, and private insurers are supervised by the Financial Services Agency.

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Frequently asked questions

Which has lower corporate tax, Australia or Japan?

Japan — Australia 30%%, Japan 23.2%%.

How do VAT rates compare in Australia and Japan?

Australia 10%%, Japan 10%%.

Is Australia or Japan wealthier per capita?

Australia — Australia $64,604, Japan $32,487 (World Bank, 2024/2024).

Do Australia and Japan offer a digital nomad visa?

Only Japan does.

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