Legal issues & obligations

You need an Australian Business Number (ABN) to run a business. If you don’t, your customers can withold 48.5% of their bill and give this to the Australian Tax Office.

After you get your ABN you need to decide whether or not you want to register for GST. If you do, you can claim back any GST your business pays but you have to pay GST on what you sell. If you think you will sell more than $50,000 in the financial year, you have no choice but to register for GST.

How do I get an ABN?
To get an ABN, visit the Australian Business Register web site.

Legal issues and other niceties when starting a business

• Intellectual property (IP) is an invention, trademark, original design or just a damn good idea. Your IP is what sets you apart so protecting it is crucial. Visit IP Australia’s website for more information.
• Never underestimate the importance of insurance for small business. There are some that are compulsory so get the proper advice.
• Business structures have profound implications for succession taxation, owners liability and disposal. Options are Sole trader, Partnership or Proprietory Limited Company.
• Your legal obligations to your employees include PAYG withholding, anti-discrimination laws, workers comp, workplace health and safety and superannuation terminations.