WEEK 3 – LEGAL REQUIREMENTS & RISK MANAGEMENT.

This weeks assignments are in & markedYAY!  It was another intense week.  There was a lot of reading & trawling through government web sites.

The first thing I had to do was register for an ‘Australian Business Number’.  This is technically optional unless you want to register a ‘Business Name’.  However if you don’t have an ABN it means if you supply goods to someone who is registered to collect GST (goods & service tax), they are required to withhold 46.5% of the sale price & pass this onto the tax office.  You can claim it back apparently, but that sounds like a lot of paper work to me.  Some business just wont do business with you because it gets too messy.  I found this when I was working as a make-up artist on the Gold Coasts.  So the application for my ABN is in.  It takes almost a month to complete, so I can’t add it to anything yet.  When I finally get it I will be required to put it on all my paper work.

Then there was the ‘Business name’!!!!  This was not fun at all.  Hubby has visited ASCI’s (Australian Security’s Investment Commission) web site more than a few times over the years, but this is a ‘NEW & IMPROVED’ site now.  It took me 20 minutes of being shunted around the same three pages before I finally saw the tiny little ‘Registers for an account’ button.  There were plenty of buttons & links that asked me to ‘Apply for a Business Name’, but none of these took me to a page that asked me to either ‘Log In’ or ‘Register for an account’ – you know … like most civilian sites do!!! Then when I finally worked that out there was a long 6 page questionnaire to fill in.   By the time I got through that I was frazzled!  😥  

In the past if you wanted to register a business name you did it through your state government. Now it has been shifted over to ASIC .  There are a lot of people who believe this is a good move.  It makes it easier to do a search of business names, to make sure body has the some name or something similar Australia wide.  It has also lower fees, $30 instead of about $120 for South Australia.  That’s always a good   thing.  🙂

The third area we looked at was ‘Occupational Health & Safety’.  This is a subject that is mandatory for every course in Australia.  I have done this subject several times now over the years.  Of course things change as laws are changed.  Most of it is really just common sense really.  You have a responsibility to keep your employees & any person who comes to your place of work safe.   But if you employ people it get more involved.

Insurance …  This is something every business needs, one of those necessary evils.  It can seem like a waste of money … until you need it!  One of the most essential is public liability.   Even though I’m doing a home based business & wont have customers visiting me this is still something I have to have, especially in the first year because I will have the NEIC  trainers calling in several times a year & I need to make sure they are covered … just in case!  Apparently it is  good for a home based business to have public liability at any time as OH & S people are legally still able to call in & check over our ‘place of work’ to ensure it complies with work safety regulations & they also need to be covered just in case they trip over the cat!  Another good cover for a business like mine is ‘Product Liability’.  This covers for any accident or injury that occurs from anything I make.    

The whole insurance thing has been a bit of a head ache for me.  I’ve had one broker refuse to give me a quote because I’m on the NEIC program, making toys & looking to add children’s cloths.  Another one came back the other day with a great big long list of questions for me.  Then at the end of the email he tells me that the quote will most likely be in the thousands of dollars  😮 .  The first quote  from AAMI is looking better & better!

Next lesson will be looking at marketing.      

Until next time … I’m off to chase insurance ‘again!’ 

Love Mignon & Georgie  🙂

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