BUSINESS INFORMATION
Legal responsibilities
To avoid future problems with your business, it’s important to understand your legal obligations.
There are legal obligations for most small businesses. They will vary depending on the nature of the business.
To prevent potential issues in your business, it’s crucial to be aware of your legal duties.
Most small businesses are subject to legal obligations, which vary based on the nature of the business. Understanding these responsibilities is essential to avoid complications down the line. It’s advisable to consult legal and business professionals before launching your venture.
Business structure and registrations
The structure of your business will influence the tax registrations required and your personal liabilities.
You must ensure that all necessary business registrations are obtained, maintained, and renewed as needed. Tax obligations may involve registering for goods and services tax (GST), pay-as-you-go (PAYG) withholding, and reporting to the Australian Tax Office (ATO). For more details, refer to information on business structures and tax requirements.
Tip
Some organizations charge a fee to register your Australian Business Number (ABN). However, applying for an ABN through the Australian Business Register is free. The process can typically be completed online, with most applications processed instantly. In certain cases, identity verification may be required, which could delay the processing time.
Free online business licence finder
You may need certain licences to conduct your business. Use our business licence finder to determine which you need.
Selling goods and services
If your business involves selling goods or services, compliance with the Competition and Consumer Act 2010, including the Australian Consumer Law (ACL), is mandatory. The ACL provides specific consumer protections against unfair business practices.
Key requirements include:
- Ensuring standard form contracts do not contain unfair terms
- Honoring customer guarantees
- Guaranteeing the safety of products and services
- Adhering to regulations on sales practices (e.g., pricing, customer information, lay-by agreements, and unsolicited customer agreements)
While small retail shops are generally permitted to operate 24 hours a day, certain business types may have restrictions on trading hours. For further information, consult the Department of Energy, Mines, Industry Regulation, and Safety regarding retail trading hours.
Contracts
A contract is a legally enforceable agreement involving two or more parties, which could be between you and another business or you and a customer. It is important to understand your obligations relating to contracts.
Leasing premises
In Western Australia, retail shop leases are governed by the Commercial Tenancy (Retail Shops) Agreements Act 1985. Before negotiating a commercial lease it is advisable to consult legal and business experts to ensure you are fully informed. If you run your business from home, you must obtain approval from your local council and complete the necessary registration process.
Employing staff
Hiring employees comes with a range of responsibilities, including:
- Providing workers’ compensation insurance
- Ensuring a safe and healthy work environment
- Adhering to pay and employment standards
- Managing tax and superannuation contributions
- Maintaining accurate employee records
- Complying with leave entitlements
- Following equal opportunity regulations
- Implementing injury management protocols
Read more about employer obligations.
Work Health and Safety (WHS)
As a business owner, you are responsible for the health and safety of your employees, contractors, customers, and the public. WorkSafe WA offers tools and guidance to help small businesses meet their WHS obligations effectively.
Privacy and information protection
While most small businesses are exempt from the Privacy Act 1988, certain exceptions apply. A business with an annual turnover of $3 million or less must comply if it:
- Operates as a health service provider (e.g., medical practitioner, gym, childcare center)
- Engages in trading personal information (e.g., buying or selling mailing lists)
- Provides services under a Commonwealth contract
- Manages a residential tenancy database
- Functions as a credit reporting body
- Is associated with a business covered by the Privacy Act
More information is available from the Office of the Australian Information Commissioner.
Intellectual property
Safeguarding your intellectual property is crucial to maintaining exclusive legal rights over your creations. Equally, ensure you do not use another party’s IP without proper authorization to avoid legal complications.
More information
Seek advice from a qualified lawyer or contact the Law Society of WA
Tip
If you are an Aboriginal business operator, Law Way: Indigenous Business and the Law will help you understand the essential responsibilities, risks and obligations of operating a business.
Other helpful resources
- Financial Management
Make the most out of the Xero and learn how to use its advanced product features to get the most…
Streamline your bookkeeping procedures with Xero, a cloud based accounting software system.
This workshop will help you calculate your product pricing and explore strategies to maximise profitability.