WA businesses are making their move towards the Australian Workplace Agreements contracts offered by the Federal system with the imminent end of the State’s workplace agreements.
WA businesses are making their move towards the Australian Workplace Agreements contracts offered by the Federal system with the imminent end of the State’s workplace agreements.
The incorporation requirement of AWAs is proving difficult for some small businesses that currently operate through partner-ship or sole trader structures, however.
Many business groups, such as the Motor Trades Association and the Chamber of Commerce and Industry, are helping members gain information on accessing remedies found under the Federal system.
Office of the Employment Advocate WA regional manager Rod Dewsbury said there had been an upsurge in AWA requests from WA.
“Over the past two years the number of AWAs approved in WA made up 12.1 per cent of the national total,” he said.
“In the December quarter, 21.3 per cent of the AWAs approved in Australia came from WA.
“We’re getting a lot of interest from people who have workplace agreements in place in their businesses and are looking at AWAs as a replacement.
“The AWAs are quite easy to get off the ground. However, the administration needs for them are slightly harder than those needed for [State] workplace agreements.
“Businesses do need to be incorporated to use them.”
There has been no indication that small businesses have tried to restructure to become an incorporated entity.
One of the easiest ways to do that is to acquire a shelf company and run the business through that. Shelf companies can usually be had for around $1,000.
Shelf Companies WA office manager Aaron Adam said there had not been any noticeable increase in the number of businesses buying shelf companies.
“There’s been the usual ramp up towards the end of the financial year, but nothing out of the ordinary,” he said.
It is a similar story from Select Shelf.
Barrington Partners partner Roger Sullivan said shifting a business into a newly acquired shelf company could trigger huge cap-ital gains tax penalties if the move was done incorrectly.
“If you’re transferring all of your assets over to the company you can also draw huge stamp duty penalties,” he said.
“There are a lot of costs and complexities tied up in moving to an incorporated structure.”
Deacons senior associate Leanne Nickels said business people were still coming to terms with the changed IR landscape.
“I’m finding that a lot of our clients are still shellshocked. Those that had already decided to go with AWAs went ahead and did it long ago,” she said.
“But I think we’ll start seeing some shifts to the Federal system within the next two to three months.
“The WA Government’s Employee-Employer Agreements will prove to be a viable option from some small businesses, but for some employers the Federal sys-tem will provide the stability that the State system is not providing at the moment.”
The incorporation requirement of AWAs is proving difficult for some small businesses that currently operate through partner-ship or sole trader structures, however.
Many business groups, such as the Motor Trades Association and the Chamber of Commerce and Industry, are helping members gain information on accessing remedies found under the Federal system.
Office of the Employment Advocate WA regional manager Rod Dewsbury said there had been an upsurge in AWA requests from WA.
“Over the past two years the number of AWAs approved in WA made up 12.1 per cent of the national total,” he said.
“In the December quarter, 21.3 per cent of the AWAs approved in Australia came from WA.
“We’re getting a lot of interest from people who have workplace agreements in place in their businesses and are looking at AWAs as a replacement.
“The AWAs are quite easy to get off the ground. However, the administration needs for them are slightly harder than those needed for [State] workplace agreements.
“Businesses do need to be incorporated to use them.”
There has been no indication that small businesses have tried to restructure to become an incorporated entity.
One of the easiest ways to do that is to acquire a shelf company and run the business through that. Shelf companies can usually be had for around $1,000.
Shelf Companies WA office manager Aaron Adam said there had not been any noticeable increase in the number of businesses buying shelf companies.
“There’s been the usual ramp up towards the end of the financial year, but nothing out of the ordinary,” he said.
It is a similar story from Select Shelf.
Barrington Partners partner Roger Sullivan said shifting a business into a newly acquired shelf company could trigger huge cap-ital gains tax penalties if the move was done incorrectly.
“If you’re transferring all of your assets over to the company you can also draw huge stamp duty penalties,” he said.
“There are a lot of costs and complexities tied up in moving to an incorporated structure.”
Deacons senior associate Leanne Nickels said business people were still coming to terms with the changed IR landscape.
“I’m finding that a lot of our clients are still shellshocked. Those that had already decided to go with AWAs went ahead and did it long ago,” she said.
“But I think we’ll start seeing some shifts to the Federal system within the next two to three months.
“The WA Government’s Employee-Employer Agreements will prove to be a viable option from some small businesses, but for some employers the Federal sys-tem will provide the stability that the State system is not providing at the moment.”
