Self-employment
What do I need to do if I am considering becoming self-employed?
While starting your own business may provide a level of independence, you also have more responsibilities than you would as an employee. This page will outline some of the things that you should consider before starting your own consultancy / small business.
- Establish that there is a need for your goods and services.
- You will then need to decide on a business structure and establish your start-up costs.
- If you still want to go ahead… write a business plan.
- Make use of Business Victoria, a state government agency that can provide you with all the information you need know in order to get started in your new venture.
Some matters to consider
1. Registering your business name
If you are going to trade under a business name (eg, Alex’s Tutoring Service), you need to register it. If you are going to trade under your own name (eg, Alex Smith), you are not required to register a business name.
Forms to register a business name are available from the Consumer Affairs website.
2. Australian Business Number (ABN)
All trading businesses will require an ABN. You can apply for an ABN at the Australian Business Register.
3. Goods & Services Tax (GST)
If your business earns less than $50,000 per year, there is no need to register or charge GST on your sales / services.
If your total gross income exceeds $50,000 per year, you are required by law to register for GST. More information is available from the Australian Taxation Office.
4. Insurance
To protect your business, you may wish to consider taking out insurance, such as professional indemnity, public liability, product liability, loss of profits, property, fire, or life insurance. Contact an insurance broker or insurance company for advice on your particular needs.
You will need to take out WorkCover insurance if you employ people in your business and the total amount paid to employees exceeds $7500 per year. For more information, contact WorkCover.
5. Superannuation
If you employ people in your business, you are required to pay superannuation contributions, equal to 9% of the employee’s salary, into an eligible superannuation fund (if the employee earns $450 or more in a month). You will also need to consider contributing to a superannuation fund for yourself. For further information, see the Australian Taxation Office.
6. Seeking professional advice
Accountant: At some point you will need to consult an accountant in order to set up a recording system that will satisfy the Australian Tax Office. Accountants can also advise on setting up company or business structures.
Solicitor: If your business structure is a partnership, or you have any specific legal issues in connection with your business activities, then you may need the services of a solicitor. Solicitors are able to formalise business agreements, or any other legal issues that are relevant to your business, such as intellectual property, trade marks, or patents.
top of pageOrganisations for further information
- Australian Taxation Office
Ph: 13 28 66
www.ato.gov.au - Business Victoria
Ph: 13 22 15
www.business.vic.gov.au - WorkCover
Ph: +61 3 9641 1444
www.workcover.vic.gov.au