AYB205 – LAW OF BUSINESS ENTITIES
LECTURE 1: BASIC BUSINESS MATTERS
Sole Trader Partnership Joint Venture Incorporated Trust Company
Public Exempt Proprietary
Company Company Company
Regulatory Employment Issues
Workplace Health and Safety
‘Restraint of Trade’ clauses in employment contracts
BAS & PAYG Statements
Fringe Benefits Tax
Payroll Tax (state)
Employment Regulations and Contracts
Awards and Industrial Regulations, e.g. Fair Work Act 2009 (Cth)
Accrued Annual Leave, Sick Leave, Long Service Leave Entitlements
o Insurance for workplace accident claims,
May not cover negligent employer behaviour.
Sexual Harassment in the Workplace
o s118. A person must not sexually harass another person.
s119. Sexual harassment happens if a person—
subjects another person to an unsolicited act of physical intimacy; or
makes an unsolicited demand or request (whether directly or by implication) for sexual
favours from the other person; or
makes a remark with sexual connotations relating to the other person; or
engages in any other unwelcome conduct of a sexual nature in relation to the other
These factors must be dealt with by all business at some point in their lifecycle.
But with small businesses, cash flow is more severely impacted by a failure to plan and manage cash liabilities Start-Up Check List
Australian Business Number (ABN)
o Unique 11 digit identifying number used when dealing with other businesses (sales)
o Where not included on an invoice, other businesses may withhold 46.5% from any payment to you.
o Required in certain dealings with the ATO and other areas of government
Tax File Number (TFN)
o Unique number issued by the ATO to individuals and organisations.
o Sole traders use their individual TFN
Partnerships, companies and trusts need their own TFN. A TFN can be obtained at the same
time as an ABN
GST Registration (GST) - Tax on sale of most goods and services at 10%
o Businesses must register for GST if:
Their business has a GST turnover of $75,000 or more ($150,000 or more for non-profit
The firm provides taxi travel as part of the business, regardless of the GST turnover.
Financial Management Systems
o Required to keep records including
Purchases that can be expensed GST paid and received
or deducted against earnings Employee expenses
Sales and other income Equity and Drawings
o For taxation and other income tracking purposes:
Open bank account(s), usually a cheque account in either business owner’s name or Business
Have separate bank accounts for the business income and the business owner’s