A home-based business is when you conduct business at or from your home;
- At home: you carry out most of the business’ work at your home. A tailor will be a good example where he is at home and clients go to his home for fittings.
- From home: when you don’t have to rent business premises, like a freelancer, you work from home.
I’ve recently heard that nearly 1 in 10 Australians are making extra money from home through a home business, like the one you are about to create.
Home-Based Business – Licenses & Permits
Having a home-based business doesn’t mean you are not biding to laws and regulations as other businesses. It might be different from a regular business but you still have to comply with your state, territory and local government regulations.
Find the contact details for your local council or planning authority at:
Home-based Business – Taxation
Running a home-based business has an impact on whether you have to pay Capital Gains Tax (CGT) when you sell your home. It also affects what expenses you can claim.
Q: How do I know if I have to pay capital gains tax (CGT) when I sell my home?
A: You simply take the interest deductibility test at:
You also need to have a look at the following website for more information on the topic of taxation;
- For the Home-based business booklet, see ATO at: https://www.ato.gov.au/
- For the Home office expenses calculator, see ATO at:
- For a discussion on your business tax questions, register for a business assistance visit online at:
- Call ATO business tax enquiries line on 13 28 66.
- ATO free webinars on a variety of taxation topics are available at: https://www.ato.gov.au/General/webinars/
Home-Based Business – Insurance
Insurance is another essential part of running your business. Not only does it minimize your exposure to risk, but it also ensures you’re able to compensate others if things go wrong.
Be careful with this part because many insurance policies don’t cover tools of trade (i.e. office furniture or computer equipment used for your business.)
Home-Based Business – Information Technology (IT) Practices
Although good IT practices involve too many things, we are going to focus on one of the most important aspects of it which is the security of personal information.
When you deal with customers, their identity should be revealed by any means. If this is the case with your business, you probably should have a look at the Privacy Act 1988 (Cwlth).
A word of advice; you should make special arrangements for a separate storage location to your home as well as baking up your data regularly.
We are going to talk more about IT and security in a separate article:
Business Startup in Australia: Online Business
Finally, here are a couple of websites that offer businesses and franchises for sale in the home-based category:
Your feedback and participation is highly appreciated.
We wish you the best of luck with your venture.
To gain max benefit from Business Startup Australia review complete series:
Part One - Business Startup Australia – Introduction Part Two - Business Startup Australia: Getting Help and Support Part Three - Business Startup Australia: Business Structure Part Four - Business Startup Australia: Business Plan Part Five - Business Startup Australia: Obtaining Finance Part Six - Business Startup Australia: Registering Your Business Part Seven - Business Startup Australia: Registering Business Name Part Eight - Business Startup Australia: Understanding Australian Taxes Part Ten - Business Startup Australia: Online Business Part Eleven - Business Startup Australia: Employing People Part Twelve - Business Startup Australia: Workplace Health & Safety Part Thirteen - Business Startup Australia: Online Marketing Part Fourteen - Business Startup Australia: Securing Your Online Business Part Fifteen - Business Startup Australia: Importing Part Sixteen - Business Startup Australia: Exportation
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