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ECTA Update: Implications for Indian Service Providers in Australia
Cross-Border Law8 min read

ECTA Update: Implications for Indian Service Providers in Australia

CQ
Collins Quarters EditorialCross-Border Law Team
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Overview of ECTA 2026 Updates

The Australia-India Economic Cooperation and Trade Agreement (ECTA), which came into effect in December 2022, continues to evolve as both nations deepen their economic partnership. The 2026 amendments introduce significant changes that directly affect Indian service providers operating in or seeking to enter the Australian market.

As cross-border legal specialists with deep expertise in the India-Australia corridor, Collins Quarters International has been at the forefront of advising businesses on ECTA compliance since its inception. This briefing provides a comprehensive analysis of the latest developments.

The ECTA has reduced tariffs on 85% of Australian goods exported to India, while simultaneously opening pathways for Indian service professionals to operate in Australia under preferential terms.

Key Changes for Service Providers

The 2026 ECTA amendments introduce several pivotal changes for Indian service providers:

Expanded Professional Recognition

Mutual recognition of professional qualifications has been expanded to include additional sectors. Indian IT professionals, engineers, and chartered accountants now benefit from streamlined recognition processes, reducing the time to commence practice in Australia from an average of 12 months to approximately 4–6 months.

Enhanced Temporary Entry Provisions

The agreement now provides for extended temporary entry for Indian business visitors and intra-corporate transferees. Key improvements include:

  • Business visitor stays extended from 90 to 180 days per year
  • Intra-corporate transferee provisions expanded to include mid-level specialists
  • New provisions for contractual service suppliers in designated sectors
  • Simplified documentation requirements for repeat visitors

Investment Threshold Adjustments

FIRB screening thresholds for Indian investments in non-sensitive sectors have been raised to AUD $1.3 billion, placing Indian investors on a more favorable footing than those from countries without FTA coverage.

Visa & Immigration Implications

The ECTA amendments create new pathways and modify existing visa categories relevant to Indian nationals:

The Subclass 408 (Temporary Activity) visa has been expanded under ECTA to accommodate a broader range of professional activities. Additionally, new labor mobility provisions complement existing employer-sponsored visa pathways.

For businesses looking to establish operations in Australia, the combined effect of ECTA provisions and existing visa categories (such as the Subclass 482 and Subclass 494) creates a more accessible pathway for talent deployment.

Sector-Specific Impact Analysis

Different sectors experience the ECTA amendments differently. Here's our analysis of key sectors:

Information Technology

Indian IT companies stand to benefit significantly from enhanced professional mobility provisions. The mutual recognition framework for IT qualifications means that certified professionals can now seek direct employment or establish service operations with reduced regulatory friction.

Financial Services

While banking and insurance remain more heavily regulated, the ECTA amendments create new opportunities in fintech, wealth management advisory, and back-office operations.

Healthcare & Allied Health

Recognition of Indian medical qualifications has been incrementally improved, though key requirements around registration with AHPRA remain unchanged. Allied health professionals in physiotherapy, pharmacy, and diagnostics see more favorable treatment.

Recommended Action Steps

For Indian businesses and professionals looking to capitalize on the ECTA amendments, Collins Quarters International recommends the following steps:

  1. Audit Current Operations: Review existing Australian operations and identify areas where ECTA amendments create new efficiencies or market access opportunities.
  2. Visa Strategy Review: Engage immigration specialists to review employee visa strategies in light of new temporary entry provisions.
  3. Qualification Assessment: Commence mutual recognition applications early, as processing timeframes, while improved, can still extend to several months.
  4. FIRB Compliance Check: For investment-related activities, verify whether the raised thresholds affect your reporting or approval obligations.
  5. Engage Local Counsel: Work with Australian-based legal advisors experienced in India-Australia cross-border transactions to navigate the evolving regulatory landscape.

Collins Quarters International's India Practice Group provides end-to-end advisory services for Indian businesses expanding into Australia. Contact our team to discuss how these ECTA changes affect your business.

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