Deferred timetable for stamp duty abolition
In the most recent budget, the NSW Government announced that it was deferring the abolition of stamp duty on (1) the transfer of business assets other than land and (2) the transfer of unquoted marketable securities to 1 July 2013.
While this announcement may disappoint anyone looking to acquire a business, it is not the first time the NSW Government has changed the timetable for abolishing stamp duty. In 2006, it was ‘brought forward’ to 1 July 2011. In 2008 it was ‘pushed back’ to 1 July 2012. Now, it has been ‘pushed back’ again to 1 July 2013.
If you have been making your plans or preparing your budget around the abolition of this stamp duty on 1 July 2012, you may need to revisit those plans and revise your budget. Stamp duty is here to stay – for now (and who knows how long in the future).
Providing independent legal advice to intended franchisees
Starting any new business can be a daunting experience without the right help, regardless of whether you’re inexperienced or a seasoned entrepreneurs. If you’re looking at buying into a franchise, you’ll need to pay special attention to the franchise agreement and disclosure documents to understand your rights and obligations under that franchise. After all, that’s what’s going to be controlling your franchising life.
To help you along this journey and aside from all other requirements determined by law, you must obtain independent legal advice before you enter into the franchise agreement. We assist many clients who have taken up franchises in various industries, especially the fast food business – but we’ve also consulted just as many clients who have had issues with their franchises and franchisors, or who have wanted to exit the franchise because it’s not as easy as they had initially thought.
They key is about choosing your franchise carefully. Understand what the franchise is offering to you and how they’re going to support you. What’s the value of the franchise? That’s what you’re paying them for, isn’t it? In most cases, your accountant will also be a good source of advice in relation to your future plans of being a franchisee and the business goals that you’re setting for yourself.