Northern Beaches College Business Services Apprentice to Business Owner Program (A to B Program) Structure & Legal s;

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1 Structure & Legal s; The four main types of business structures commonly used by small businesses are: Sole trader: an individual trading on their own Partnership: an association of people or entities running a business together, but not as a company Trust: an entity that holds property or income for the benefit of others Company: a legal entity separate from its shareholders. 1

2 Choosing your business structure is an important decision that can determine the licenses you will need to operate, so you need to investigate each option carefully. Obtaining legal or other professional advice can help you understand your own particular circumstances ages/decideonabusinessstructure.aspx 2

3 Registrations & licences Register your business name Northern Beaches College Business Services A business name is simply a name or title under which a person, or other legal entity, trades. It not only identifies you to your customers, but also allows you to differentiate yourself from your competitors and enables your customers to make an emotional connection to your business and brand. For many businesses, the name is often the most valuable asset. 3

4 Registering a business name does not in itself give you any exclusive rights over the use of that name only a trade mark can give you that kind of protection. Ensure you have exclusive use of your name now and in the future throughout Australia by applying for a trade mark 4

5 New National Business Names Registration System A new National Business Names Registration System has now commenced, replacing the current state and territory registers. 5

6 New National Business Names Registration System Northern Beaches College Business Services All business name registrations are now managed by ASIC. All business names registered under state and territory registers have now been transferred to ASIC's national business names register. The date for renewing your business name will remain the same. 6

7 For information on these changes, visit the New National Business Names Registration System page or the ASIC website. egisteryourbusinessname.aspx 7

8 Registrations & licences Register your company Northern Beaches College Business Services If you decide that a company structure best suits your business, then you need to register as a company. One of the benefits to registering as a company is being able to register a company name. With a company name you have the advantage of holding exclusive rights to that name in Australia, without having to register in each state. 8

9 You can only choose a company name not already registered to a company or business. Special approval is also required to use certain words. If your company carries on business in a name different to your registered company name, then you must register the business name egisteryourcompany.aspx 9

10 Registrations & licences Register your domain name Northern Beaches College Business Services Your domain name is your website address on the internet and gives you an online identity or brand. It's a valuable part of your business identity and is an important marketing tool that can help customers find and identify with your business. 10

11 If you wish to buy a.com.au or.net.au domain name, you must be a commercial entity and have either an Australian Company Number (ACN) or Australian Business Number (ABN). For more information go to the.au Domain Administration Ltd (.auda) website egisteryourdomainname.aspx 11

12 Registrations & licences Register your trade mark Northern Beaches College Business Services Having a registered trade mark can be your most valuable marketing tool. It gives you the exclusive right in Australia to establish a brand identity and legally stop imitators. Unlike a business name, a registered trade mark can provide legal protection for your brand and enable you to stop others from trading with it. 12

13 Registrations & licences Register your trade mark Northern Beaches College Business Services Once registered, the trade mark is protected in all Australian states and territories for an initial period of 10 years. For international protection, you need to register your trade mark in each country you want protection in. 13

14 Registrations & licences Register your trade mark Be aware that registration of a business name, company name or domain name does not in itself give you any exclusive rights to its use only a trade mark can give you that kind of protection. Ensure you have exclusive use of your name now and in the future throughout Australia by registering your business name as a trade mark. Northern Beaches College Business Services 14

15 Registrations & licences Register your trade mark Northern Beaches College Business Services If you are unsure of what or how to register, seek the advice of your accountant, lawyer or trade mark attorney. 15

16 Registrations & licences Register for an Australian Business Number (ABN) The ABN is a unique 11 digit identifying number that businesses use when dealing with other businesses. For example, you generally need to put your ABN on your invoices, or other documents relating to sales. If you don t, other businesses may withhold 46.5% from any payment to you for tax purposes. 16

17 Registrations & licences Register for an Australian Business Number (ABN) You also need an ABN in certain dealings with the Australian Taxation Office (ATO) and other areas of government. 17

18 Registrations & licences Register for an Australian Business Number (ABN) Registering for an ABN is not compulsory, but you will need one to register for the GST. Your ABN allows you to: Northern Beaches College Business Services facilitate a single Business Activity Statement confirm your business identity to others when ordering and invoicing 18

19 Registrations & licences Register for an Australian Business Number (ABN) avoid PAYG tax on payments you receive claim GST credits claim energy grants credits purchase an Australian domain name. rforanaustralianbusinessnumber(abn).aspx 19

20 Registrations & licences Register for Fringe Benefits Tax (FBT) Northern Beaches College Business Services To secure the best workers for your business, you often have to entice them with non-income related benefits. This might include a car, car parking, a low interest loan or payment of private expenses. It s entirely legal and a common form of reimbursement used by companies towards their employees. 20

21 Registrations & licences Register for Fringe Benefits Tax (FBT) FBT is a tax payable by employers for benefits paid to an employee or the employee s associate (typically family members) in place of salary or wages. This is separate to income tax and is calculated on the taxable value of the fringe benefits provided. If you provide fringe benefits to your employees, the Australian Taxation Office (ATO) recommends that you register for FBT gisterforfringebenefitstax(fbt).aspx 21

22 Registrations & licences Register for Goods & Services Tax (GST) Northern Beaches College Business Services GST applies to most businesses across Australia and it s highly likely that your business will be affected by the tax. 22

23 Registrations & licences Register for Goods & Services Tax (GST) Northern Beaches College Business Services Registering for GST is necessary if: your business has a GST turnover of $75,000 or more ($150,000 or more for non profit organisations) you provide taxi travel as part of your business, regardless of your GST turnover. 23

24 Registrations & licences Register for Goods & Services Tax (GST) Northern Beaches College Business Services To register, you ll need to complete an application form. If you want to apply for an Australian Business Number (ABN) at the same time you can use the same form. 24

25 Registrations & licences Register for Goods & Services Tax (GST) You need an ABN to register for GST, as the ABN is part of the GST system. Your ABN will also be your GST registration number odsandservicestax(gst).aspx 25

26 Registrations & licences Register for Pay As You Go (PAYG) withholding PAYG withholding is a legal requirement that means you must withhold amounts for income tax purposes. 26

27 Registrations & licences Register for Pay As You Go (PAYG) withholding As an employer of staff, you re required to withhold tax from payments you make to them. Occasionally, you may also have to withhold tax from payments you make to other workers, such as contractors. 27

28 Registrations & licences Register for Pay As You Go (PAYG) withholding In addition to staff, PAYG also covers payments you make to other businesses. If you purchase from a business that does not quote an Australian Business Number (ABN) on an invoice or other document, you must withhold an amount for tax purposes. 28

29 Registrations & licences Register for Pay As You Go (PAYG) withholding You need to register your business by the day on which you re first required to withhold an amount from a payment. Once registered, you must send all withheld amounts to the Australian Taxation Office (ATO). rforpayasyougo(payg)withholding.aspx 29

30 Registrations & licences Register for a Tax File Number (TFN) Northern Beaches College Business Services A TFN is a unique number issued by the Australian Taxation Office (ATO) to individuals and organisations to help manage tax and other government services. The type of TFN that you need however, can depend on your business structure. 30

31 Registrations & licences Register for a Tax File Number (TFN) Northern Beaches College Business Services If you operate a partnership, company or trust, your business will need its own TFN. A TFN can be obtained at the same time as an Australian Business Number (ABN), using the same application form. 31

32 Registrations & licences Register for a Tax File Number (TFN) Sole traders use their individual TFN in dealings with the ATO. 32

33 Registrations & licences Register for a Tax File Number (TFN) Registering for a TFN is an important step when starting your business as having one allows you to: quote to investment bodies responsible for paying interest, dividends and unit trust distributions quote to government bodies, for example the ATO, when applying for an ABN or lodging income tax returns quote to employers (this applies to individuals only). ber(tfn).aspx 33

34 Registrations & licences Register for Payroll Tax Northern Beaches College Business Services Payroll tax is a state tax on the wages paid by employers. It s calculated on the amount of wages you pay per month. 34

35 Registrations & licences Register for Payroll Tax Northern Beaches College Business Services However, not all businesses will have a tax obligation. You are only liable for payroll tax if your total Australian wages exceed the exemption threshold that applies in your state or territory exemption thresholds vary between states rforpayrolltax.aspx 35

36 Occupational health & safety OH&S/WHS Acts, Regulations and Codes of Practice New work health and safety (WHS) laws New work health and safety (WHS) laws commenced on 1 January 2012 in many states and territories to harmonise occupational health and safety (OH&S) laws across Australia. 36

37 Occupational health & safety OH&S/WHS Acts, Regulations and Codes of Practice New work health and safety (WHS) laws WHS legislation includes a model WHS Act, regulations, Codes of Practice and a national compliance and enforcement policy. The model WHS Act is not significantly different from current occupational health & safety (OH&S) laws, but will make it easier for businesses and workers to comply with their requirements across different states and territories. 37

38 Occupational health & safety OH&S/WHS Acts, Regulations and Codes of Practice New work health and safety (WHS) laws Each state and territory is responsible for regulating and enforcing WHS laws. Safe Work Australia is the national body in charge of developing work health and safety and workers compensation policy. 38

39 Occupational health & safety OH&S/WHS Acts, Regulations and Codes of Practice New work health and safety (WHS) laws The following states and territories now use harmonised WHS legislation instead of previous OH&S laws: Australian Capital Territory The Commonwealth of Australia New South Wales Northern Territory Queensland South Australia odesofpractice.aspx 39

40 What is the Superannuation guarantee levy (SGL) eligibility decision tool? This decision tool is designed to help you as a resident employer understand whether you need to make super contributions for individuals you employ (including any contractors who are treated as employees). 40

41 What is the Superannuation guarantee levy (SGL) eligibility decision tool? Once you have answered a series of questions, you will be given a report that contains: a decision about whether an individual is eligible for super for this particular arrangement a summary of the information you have provided a summary of your super obligations relating to the individual. 41

42 Workers Compensation- your obligation as an employer Workers compensation changes,information for employers ; In June 2012 the government introduced changes to the Workers Compensation Scheme in NSW. The reforms are focused on assisting injured workers to return to work, and on returning the scheme to financial sustainability without increasing employer premiums. 42

43 Workers Compensation- your obligation as an employer Focus on return to work Getting injured workers back to work early is an important part of their recovery. As well as reducing the impact of an injury on your worker and their family, early, safe and durable return to work: gets your skilled and experienced workers back in the workplace benefiting your business can lower your particular premium costs, if you are a medium or large business 43

44 Workers Compensation- your obligation as an employer Focus on return to work reduces the likelihood of large, scheme-wide increases to premiums to address the financial deficit. the reforms provide incentive for injured workers to return to work. They also reinforce your obligations as an employer to help them do that including providing suitable employment for them if they have some capacity to work. 44

45 Key reforms Benefits Benefits for new claims are now based more closely on an injured worker s real earnings prior to injury incorporating things like overtime and shift allowance, which removes the distinction between award and non-award workers. By filling out and submitting the new Pre-injury average weekly earnings form (catalogue no. WC03303) with your injured worker s claim, you will help ensure they receive the correct entitlement to weekly payments. 45

46 Key reforms Benefits Weekly payments are now linked to return to work, with more benefits during the first 13 weeks (when 80 per cent of injured workers return to work) and thereafter if the worker works for at least 15 hours a week. If your injured worker made their claim prior to 1 October 2012, their existing weekly payment rate continues until they are transitioned to the new benefits in 2013 following a work capacity assessment. 46

47 Work capacity assessments Your insurer now assesses your injured worker s work capacity. This looks at their capacity to return to any type of suitable employment. A new WorkCover NSW certificate of capacity (catalogue no. WC01300) is replacing the old WorkCover medical certificate, to help doctors provide more advice on your injured worker s capacity to work. 47

48 Work capacity assessments If your injured worker is assessed as having some capacity to work, you must (as far as is reasonably practicable) find suitable employment for them. Under the reforms, you are subject to improvement notices or fines if you do not follow through with this requirement. 48

49 Work capacity assessments If you need help with identifying suitable work, please contact WorkCover. We are taking steps to work with employers to improve return to work outcomes and identify suitable duties for injured workers. 49

50 Claims and lump sum benefits From 19 June 2012 there are new arrangements for journey claims, lump sum payments, and nervous shock, heart attack/stroke and disease injury claims. Seriously injured workers. Seriously injured workers are exempt from time limits that apply to weekly payments, and medical and related expenses. 50

51 Claims and lump sum benefits Implementation The reforms have been implemented in stages from June All claims made on or after 1 October 2012 are subject to the new legislation and benefits. If you have an injured worker who was claiming prior to 1 October 2012 then they will be transitioned to the new legislation in 2013 (or if they are seriously injured they would have received improved benefits from 17 September 2012). 51

52 Claims and lump sum benefits More information Northern Beaches College Business Services The information in this fact sheet is general only. If your injured worker would like to discuss the specific impact on their claim, they should contact their case manager. For more general information about the reforms, visit workcover.nsw.gov.au or call

53 Examples of Insurance Companies offering Workers Compensation Insurance; GIO CGU Allianz 53

54 Small business owners need income protection insurance. Northern Beaches College Business Services Income insurance protects your most valuable asset, the ability to earn an income. How would you meet your living expenses if you could not work due to sickness or injury? 54

55 Examples of Insurance companies offering income protection; CGU AAMI CBA ANZ Life Broker 55

56 Your Accounts dep t, Northern Beaches College Business Services Will you do your own accounts?- this involves recording purchases on plant and equipment, raw materials, sales, Fringe Benefit, Payroll, etc Attention to detail is important. 56

57 Your Accounts dep t Northern Beaches College Business Services Or do you seek the advice of an accountant?, Most small businesses choose an accountant - either hiring a "numbers person" on staff or hiring accounting services on a contract basis - when a business' financial challenges have become too great to handle without expert help. 57

58 Your Accounts dep t.. Northern Beaches College Business Services Maybe you want to improve the financial function of your business. Or perhaps your accounting software isn't providing the type of data you need to grow your business. 58

59 Your Accounts dep t Northern Beaches College Business Services Having trouble switching from cash to accrual accounting? Are your financial statements inaccurate or incomplete? These are all good reasons to look for a Certified Public Accountant (CPA). Check out this site; 59