Publishing is a Business!

How to set up a small business in Australia

You’ve now decided to self publish so the first question you need to ask yourself is ... are
you a hobby or are you a business?

Whether you’re a publishing business or a hobby, it’s important to establish your status
early as it will affect your tax and deductions. When running a business, you pay tax on the
money you earn, can claim for deductions on your expenses and generally need an
Australian Business Number (ABN). These do not apply if your activity is a hobby. Read the
Australian Taxation Office (ATO)’s Are you operating a business? page available at ATO to help
you decide whether you’re running a business or a hobby.

IMPORTANT

Regardless of your answer (HOBBY V BUSINESS) you will need an Australian Business
Number currently to access Ingram Spark your printing and distribution partner to be.

By now you have spent months or even years creating your book, you've found yourself an
author services company (Pickawoowoo) to help during the publishing process –but there
are still more responsibilities and decisions to make with self publishing.

Please note: The specifics change from state to state in Australia, but the below will give you
a rough guide to go by.

Choose your business structure

Your course of action is largely determined by the business structure and type you go with –
Sole Trader, Partnership, Company or Trust.

Each has its own advantages and disadvantages to research, but the main decision is the
degree to which your business has a separate legal existence to you.

For sole traders, you are your publishing business. A majority of author/publishers choose
this option for its convenience and simplicity. For a partnership, authors or individuals who
start a publishing business together can legally share profits, risk and losses between them,
and usually this is set out in an agreement. A company is an entirely separate legal entity
run by a director (the author or other individual), and a trust gives control of a publishing
business to another party (the trustee), to run the business to benefit its members
(beneficiaries).

Get your numbers

This is a simple and straightforward process and is completed by the author/publisher

through theAustralian Business Register. Essentially to conduct publishing business in
Australia, you’ll need an Australian Business Number (ABN). Applying for an ABN is FREE.
Please note Australian Authors are required to have an ABN to access Ingram Spark.

At Australian Business Register, partnerships, companies and trusts can also register for
their Tax File Number (TFN) (sole traders don’t need a separate TFN – their personal one wil
suffice) and the Goods and Services Tax (GST) (only if you expect a GST turnover of $75,000
or more).

If you need further support on this we suggest you search for your local small business
development centre. Most states have one.

Claim your publishing business name

The next step is to give your Australian Business Number a name. When creating a
publishing business name essentially talking to your prospective readers is a good idea. We
also suggest you request the 'How to Create a Publishing Imprint' support document
through Pickawoowoo. Check no one else has the name you want using the ABN Lookup or
ASIC Online Services, and creatively explore.

Now, before you jump and lock the publishing business name in, you should check a website
url for that name. Lock in where possible both the .com and com.au version.

Is it available as a website domain and social media handles? Use this link on our
AuthorsWish website to find and locate names (web hosts).

Register for licences and taxes (if applicable)

As a newly formed publishing business, there’s a checklist of things you may want to
consider and register for. The list is quite extensive and can be overwhelming but it is better
to know your legal responsibilties upfront and then adjust if need be. i.e. An internet
publishing business has less regulations than a publishing business with commerical
premises etc. The list of items that may be shown include PAYG Withholding, Fuel Tax
credits, an Australian Business Account, Standard Business Reporting, as well as any licences
or permits you may require to trade (e.g. home based business for example). These can be
checked at the ABLIS website.

It is important that you understand your taxation obligations /record keeping requirements,
and any additional taxes you may need to pay (e.g. GST, Capital Gains Tax, Fringe Benefits
Tax, Super contributions for employees etc.).
Publishing business, location for trading

Have you decided to trade as

 a home-based business,
 an online business,
 or if you want to lease a business premises.

Whichever option you select you need to ensure it is properly insured and registered
accordingly. Once again check the ABLIS website if you are home based as local councils
have rules in place.

Employing others to assist you

We would hope that you can get all you need through Pickawoowoo as your preferred
author services provider. However if you envisage needing an assistant etc. and this is your
first time ever employing others then the best resource for you is the Fair Work
Ombudsman. Essentially it is your responsibility to know what a fair rate is and whether you
need to collect your employee’s details (such as TFN and super) for any payroll taxes or
super contributions.

Some author/ publishers think that they can just employ under a contract basis. We suggest
you visit the ATO site to find out.

More information

These are the basics however if you are looking for comprehensive information on how to
achieve each of these milestones, The Department of Industry, Innovation and Science has a
wealth of information and some great checklists.

• For more information, watch the Tax basics for small business videos at ATO or
phone the ATO Business tax enquiries line on 13 28 66.
• A series of free webinars on a variety of taxation topics. Register online at
ATO - Webinars.
The ATO offers free and confidential on-site visits to discuss your business tax
questions. Register for a business assistance visit at ATO - Personalised Business
Assistance.

LEGAL DISCLAIMER: The Pickawoowoo Publishing Group (PPG) are offering reliable
information in regard to the subject matter covered. It is provided with the understanding
that the company are not engaged in rendering, legal, accounting, or other professional
advice. If legal advice or other expert assistance is required, the services of a competent
professional should be sought. The company specifically disclaim any and all liability arising
directly or indirectly from the use or application of any information contained in our support
publications.