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VICBusiness ManagementQuick questions
Unit 2: Establishing a business
Quick questions on Legal requirements when establishing a business (VCE Business Management Unit 2)
15short Q&A pairs drawn directly from our worked dot-point answer. For full context and worked exam questions, read the parent dot-point page.
What is the practical sequence?Show answer
When an Australian entrepreneur establishes a business, the typical legal sequence is:
What is choose the business structure?Show answer
Four main structures in Australia.
What is register the business name?Show answer
If trading under a name other than the owner's legal name, register through ASIC. Cost is 102 for three years (FY24-25 rates). Registration grants the right to trade under the name but does not provide trademark protection.
What is register for taxation?Show answer
Goods and Services Tax (GST). Mandatory if turnover is or will exceed 150,000 for not-for-profits). Once registered, charge 10 percent GST on most sales, lodge Business Activity Statements (BAS) quarterly or monthly, and claim input tax credits on business-related GST paid. Voluntary GST registration is allowed for smaller businesses.
What is industry-specific licences and permits?Show answer
Most regulated industries require an additional licence beyond the general business registrations.
What is planning and zoning?Show answer
Local councils administer planning and zoning under the relevant state Planning and Environment Act. Common requirements:
What is intellectual property protection?Show answer
Four main forms of IP protection in Australia. IP Australia (the federal IP office) administers most.
What is worked Australian example?Show answer
A new Melbourne hospitality business. Imagine the founders of a cafe being set up in Carlton in 2025. The legal-establishment steps:
What is goods and Services Tax?Show answer
Mandatory if turnover is or will exceed 150,000 for not-for-profits). Once registered, charge 10 percent GST on most sales, lodge Business Activity Statements (BAS) quarterly or monthly, and claim input tax credits on business-related GST paid. Voluntary GST registration is allowed for smaller businesses.
What is pay-As-You-Go Withholding?Show answer
Mandatory if employing staff or paying directors. The business withholds tax from each pay run and remits it to the ATO.
What is superannuation Guarantee?Show answer
Mandatory employer super contributions on top of wages (11.5 percent in FY25, rising to 12 percent from FY26 per the legislated schedule). Paid to the employee's chosen super fund quarterly.
What is other?Show answer
Payroll tax (state-based, kicks in above a threshold - $900,000 in Victoria for FY24), Fringe Benefits Tax, Land Tax, stamp duties.
What is a new Melbourne hospitality business?Show answer
Imagine the founders of a cafe being set up in Carlton in 2025. The legal-establishment steps:
What is forgetting GST until turnover hits $75,000?Show answer
Better to register from the start if growth is expected; avoids a scramble later.
What is treating local council planning as optional?Show answer
It is not. Operating in breach of zoning or without permits can trigger closure orders.