Starting a new business 043-03080000
Expand allThis document outlines the actions to be taken when a new or existing customer advises that they have become involved in a new or existing business.
Customer's role in new business
It is important to establish whether the person is self-employed or an employee in the business. If it is established that the customer is self-employed, a determination is required on their business structure. If a customer is a self-employed contractor, a sole trader, in a partnership or conducting a business through a private company or private trust, one the following Modules is needed from the customer:
- a Module F - Business details (MOD F) for each sole trader business and/or partnership business or
- a Module PT - Private Trust (MOD PT) for a private trust or
- a Module PC - Private Company (MOD PC) for a private company. If the business name has a reference to a Pty Ltd and P/L it is a private company. A MOD PC is required even if the customer indicates they only have 2 x $1 shares
For all business types, a reasonable estimate of the current financial (income and asset) position of the business is also needed.
Different rules apply to the assessment of income from a business where the business activity is conducted through a company or trust structure. Different rules applied to trusts and companies prior to 1 January 2002 when new legislation took effect.
The Resources page contains links to the Business details (MOD F), Private Trust (MOD PT) and Private Company (MOD PC) forms.
Contents
Commencement of a new business or purchase of a business enterprise
Obtaining an estimate of business income
Steps to assess an interim profit and loss statement
Steps to assess an interim balance sheet
Related links
Assessment of business structures for Centrelink payments
Assessment of income from trusts and companies
Assessment of assets for trusts and companies
Factors to determine self-employment