BUSINESS STRUCTURE
BUSINESS TYPE
Starting out as a sole-trader, over the past 5 years Beau Andre Homes has developed and continues to grow. Now obtaining up to
10-15 builds a year and employing over 25 staff, we made the shift to a company structure as we find this is best suited to increase our business growth.
A company business structure is a separate legal entity, unlike a sole trader or a partnership structure. This means the company has the same rights as a natural person and can incur debt, sue and be sued.
A company has members (shareholders) who own the company and directors who run it. However, if you're an independent contractor you can set up a 'one person company' with a sole director and member.
Companies can also be listed as public companies, meaning the public can buy shares to invest in the company.
To download form, please click on the link below;
Consent To Act As A Member Form
For more information regarding to 'Business Types and Structures' please visit;
BUSINESS TAXATION
As a business owner there are tax responsibilities that are crucial to know. Some taxes apply and are compulsory depending on your business size and type. Others are optional, but can make life easier if you have them.
Recently Beau Andre Homes decided to change its structure from a sole trader to a company structure. Sole traders and companies have similar tax and reporting obligations, but there were some key differences we needed to be aware of. In the link below, it details the differences as well as some similarities of taxation obligations of these two structures.
https://www.business.gov.au/Change-and-growth/Restructuring/Tax-differences-between-a-sole-trader-and-a-company
As a Director, you need to make sure you understand the different types of tax that could apply to your business. Some taxes are administered federally by the Australian Taxation Office (ATO) and others are stated based taxes.
Below are links to examples of taxes you as a business may be obliged to pay;
To download tax return forms click the link below;
Company Tax Return Form
Tax File Number Declaration Form
For more information regarding 'Tax Obligations' please visit;
SUPERANNUATION
As the director of 'Beau Andre Homes' it is vital to know the requirements for paying super for employees. Superannuation is the money you pay for your workers to provide for their retirement. If an employee earns more than $450 or more before tax in a calendar month, you as a employer have to pay super on top of their wage. All employees are covered by the superannuation guarantee and applies to full-time, part-time and casual workers.
The minimum you must pay is called the super guarantee (SG):
the SG is currently 9.5% of an employee’s ordinary time earnings
you must pay the SG at least four times a year, by the quarterly due dates
you must pay and report super electronically in a standard format, ensuring you meet SuperStream requirements
your super payments must go to a complying super fund – most employees can choose their own fund
if you don’t pay the SG on time, you may have to pay the super guarantee charge.
Australian Taxation Office offer a range of online tools and calcualtors to help you understand your super obligations in more detail.
For more information please visit:
www.ato.gov.au/superquickcheck
Our preferred super provider is Cbus Super Australia, however, employees are encouraged to use their own super fund if they previously had one. For more information regarding CBUS please visit; www.cbussuper.com.au
The Superannuation Standard Choice Form is for employers to advise employees of the employer's nominated fund, and for employers to tell an employer of their choice of fund. To download form please click the link below;
Superannuation Standard Choice Form
For more information regarding 'Superannuation' please visit the links below;
BAS STATMENT INFORMATION
As Beau Andre Homes will be liable to pay taxes such as GST, we need to lodge a business activity statement with the ATO. When you register for an ABN and GST, the ATO will automatically send you a business activity statement when it is time to lodge.
BAS will help to report and pay our:
Other taxes
Company returns for self-preparers are generally due by 28 February. If you lodge through a registered tax agent, they’ll tell you when they will lodge your tax return. To download an example of a BAS Statement please click the link below;
For more information on ‘BAS Statement Information’ please visit;
INSURANCE DETAILS
Australian building industry is highly regulated by both federal and state governments. Compulsory insurance covers are a key part of those regulations and these have been designed to protect your business, your workers and your clients.
In the building game, the risks can be many. From workplace safety to carrying the costs of plant and machinery, keeping your business viable to delivering projects to deadline and budget. Not to mention the changing conditions of property and financial markets.
IMAR offers a range of different insurance policies, suited to the construction industry.
At Beau Andre Homes we are proud to be covered by IMAR Insurance. Our IMAR bundle offers a cover for a variety of insurances;
Public and products liability
Builders warranty insurance
Builders construction insurance
Our public and products liability insurance is to cover third party personal injury and property damage as a result of a builder’s negligence.
And Our Builders warranty insurance which is mandated in most states. It provides protection for home and building owners in the event you die, disappear or your business goes into receivership before you have finished their project
Finally, our Builders construction insurance is a comprehensive solution that combines your need for Public Liability, Construction, Tools and Stock and Injury and Illness insurance. Cover and premiums are tailored for your business.
For more information regarding our ‘Insurance Details’ please visit;
WORKCOVER DETAILS
WorkCover insurance is completely different to public liability insurance. WorkCover insurance covers employers for the cost of benefits if employees are injured or become ill because of their work, public liability insurance won’t.
Generally, you must register for WorkCover insurance if you or your company employs any workers in Victoria. If your company employs you personally, then you are a worker of your own company, and need to register.
You don't need to register if you or your company has no apprentices, and pays, or is liable to pay, less than $7,500 a financial year in remuneration.
WorkCover insurance may cover:
replacement of lost income
medical and rehabilitation treatment costs
legal costs
lump sum compensation in the event of a serious injury.
For more information on 'WorkCover Insurance' please visit;
https://www.worksafe.vic.gov.au/do-i-need-register-workcover-insurance
BUSINESS PLAN
Your business plan is the foundation of your business. If you want to start or expand your business, then you'll need a business plan. A good business plan guides you through each stage of starting and managing your business. You’ll use your business plan as a roadmap for how to structure, run, and grow your new business. It’s a way to think through the key elements of your business.
Business plans can help you get funding or bring on new business partners. Investors want to feel confident they’ll see a return on their investment. Your business plan is the tool you’ll use to convince people that working with you or investing in your company is a smart choice.
A clearly and well written business plan should:
set the vision and direction of your business
carry out a SWOT (Strengths, Weaknesses, Opportunities, Threats) analysis
map out a one-page action plan for your next steps.
A one-page plan is a simple tool where you can set goals for your business and note down actions you will need to take in your business to achieve these goals. It's also a practical way to record the outcomes of the planning process.
To view an example of a action plan please click the link below;
Remember a business plan is a living document. You should review it regularly to remind yourself of your goals and modify it when plans change.
For more information on ‘Business Plan’ please visit;