Dooley Blog

We often see people with great ideas wanting to go into business for themselves but are overwhelmed by the enormity of the step into self-employment. Whilst we are here to guide you through the legal aspects of your business, below is a list of practical tips which may see you survive your first year with a smile until your business is up and running, paying you a salary and the figures are appearing on the correct side of the balance sheet.

• Save diligently in the time prior to going out on your own

• Pay utilities or other regular outgoings in advance so that they are one less expense you have to worry about during the start up period of limited income, if any

• Keep your day job as long as you can through the set up period to enable you to still earn a salary as you may not earn a wage during the first 12 months

• Take on a part-time job which allows you some time flexibility to focus on your new business but also brings in some income

• Check with your home loan lender and know what re-draw facility you may have available

• Search out the best deals on the expenses for your new business

• File your GST returns by the due date. Expenses in the early months will most likely outweigh the income so you may be due a refund

• Keep good lines of communication with your clients open and ensure they are paying on time for the goods or service you are providing. As a small business it is difficult to deal with overdue accounts or long payment periods. Follow up deliveries or service with a call to ensure they have the invoice and understand your terms for payment.

It’s all in the planning and if you fail to plan, you plan to fail. If you have a desire to start your own business, take the time to get professional legal and commercial advice prior to setting out on the road to independence. Our Commercial Lawyers can assist you on your new path to financial freedom and help your business avoid meeting with unwanted legal issues.

From the 1 July 2013 the Government will be increasing the current guaranteed superannuation from 9% to 12%. Australian workers will benefit from the scheme as a result of recommendations made in the Henry [Tax] Review which will see the guaranteed Superannuation contribution rise annually from 1 July 2013 through to 2019-2020.

In the face of an aging Australian population, the push for the increase to superannuation has been to heighten national savings in effect increasing future retirement incomes. Approximately 8.4 million employees are anticipated to benefit from the scheme after an initial cost of $2.4 billion in order to implement the scheme.

The move by the Government to amend super payments in Australia has been green lighted as an alternative reducing tax breaks as this measure will directly stimulate private savings. Approximations made by the Government see the reforms to create superannuation savings in excess of $85 billion over the next decade.

What does this mean for businesses?

Understandably this will impact employers. To limit the impact of the changes the Government has seen to stagger the rises in compulsory superannuation contributions over several years.

Treasure Wayne Swan has been quoted as saying that these changes are the largest since the introduction of compulsory superannuation in 1992. Arguably negotiations between employer and employees will be effected as a result the Government has seen to postpone the introduction of the reform for three years until 2013 in order to allow both parties time to accommodate to the projected changes. It arguably stands to see whether these changes will benefit the future of Australia and limit individuals bargaining power.

Only time will tell whether the costs associated with the amendments to the superannuation scheme will have the intended outcome for future Australians and retirees. Yet, it is arguably a preliminary solution to improve Australian savings in the future and certainly further recommendations made by the Henry Review including the removal of tax on super contributions would be further steps towards building Australian private savings.

If you wish to read more on the projected changes to superannuation follow this link.

Or, to disuss your business with us, please make an enquiry.