The Australian Government creates rules and regulations to govern businesses and protect consumers. There are also separate state and territory regulations that companies must follow as well. Regulatory requirements ensure that fair trading practices exist for all parties involved in business interactions, including companies, suppliers, and customers. Read on for 7 Regulatory Requirements for Australian Businesses.
If a business were to fail to abide by any of these regulatory requirements, the government could impose severe fines and penalties for non-compliance.
There are solutions available to help businesses stay compliant. For instance, Business Basics works with Australian companies to ensure they are compliant with their state, territory, and country’s rules and regulations.
This service is a valuable investment for any Australian business because the consequences for non-compliance would be even more costly.
Below are the top seven regulatory requirements that businesses must meet.
1) Tax Regulations
The Australian Taxation Office and various state government revenue offices oversee the taxation of Australian businesses.
Whenever a consumer makes a purchase, the company is supposed to collect a Goods and Services Tax (GST).
The typical GST imposed on goods and services is 10%. Businesses are expected to pay the collected GST taxes to the Australian Taxation Office on the appropriate due date.
Other taxes imposed on companies include capital gains taxes, company income taxes, and payroll taxes.
2) Consumer Regulations
The Australian Consumer Law regulates interactions between businesses and consumers. They oversee consumer rights guarantees, fair contract terms, product safety, and unsolicited consumer agreements.
When a consumer feels that a company has mistreated them, they can file a complaint with the Australian Competition and Consumer Commission for further review.
3) Australian Intellectual Property Regulations
Australian businesses have legal protections for their intellectual properties, such as formulas, designs, trademarks, patents and copyrights.
For instance, if another company were to use your patents without permission, you would have the legal right to stop them.
The Australian Government has also protected intellectual properties from unauthorised global distribution.
There are international agreements in place to keep Australian intellectual properties protected in other countries.
4) Australian Import and Export Regulations
Many Australian businesses participate in international trade, especially in the Asia-Pacific region.
There are currently six free trade agreements in place between Australia and other countries. The Australian Government has also committed to particular tariff quotas under the World Trade Organisation.
Whenever an Australian business imports goods overseas, they must follow the necessary regulations surrounding permits, quarantine, and duty taxes.
Failure to comply with these regulations could result in the Australian Department of Immigration and Border Protection seizing the imported goods.
5) Competition Regulations
The Australian Competition and Consumer Commission is a regulatory body that enforces rules to ensure fair trading amongst businesses in the same marketplace. State and territory competition regulations also exist too.
Under the Competition and Consumer Act of 2010, Australian businesses must agree to follow industry codes and to refrain from conducting any unfair market practices that give them a competitive advantage.
6) Product Liability Regulations
Product liability regulations prevent Australian businesses from promoting and selling harmful products.
The Australian Competition and Consumer Commission established these regulations to protect consumer health and life.
Product safety rules are strictly enforced by the Australian Government and the state and territories throughout the country.
If a product is defective or a health hazard to people, the company is required to recall the product immediately.
Companies face severe liability when they fail to comply with product safety regulations.
7) Environmental Regulations
Environmental regulations exist to prevent businesses from harming the environment. These regulations are set at the federal, state, local and territory levels of government.
National environmental assessments are conducted periodically to ensure businesses comply with these regulations.
The end goal is to reduce carbon emissions, reduce energy consumption, better waste management, and water consumption efficiency.
