Legal Checklist For Your Business At The Start Of A New Financial Year

The start of a new financial year is the perfect moment to press reset and set your business up for success. Whether you’ve just launched or you’ve been operating for years, July is your annual opportunity to tidy up registrations, refresh contracts, check compliance and make sure your systems are ready for the year ahead.

We know the legal side isn’t why you started your business. But a little time now can prevent costly headaches later and help you make confident decisions when new opportunities come up.

Below is a practical legal checklist you can work through each new financial year. We’ll cover structure and registrations, contracts, employment obligations, privacy, licences, consumer law and the typical changes that kick in from 1 July in Australia.

Why Does 1 July Matter For Australian Businesses?

In Australia, the new financial year begins on 1 July. It’s more than just tax time - it’s a clean line in the sand for planning and compliance.

• Tax and reporting cycles: Your accounting, payroll finalisation and many lodgements revolve around the financial year.
• Law and award updates: Many legislative reforms and Modern Award changes take effect on or around 1 July.
• Contract and policy renewals: It’s a logical point to renegotiate leases, refresh policies and review your business insurance.
• Strategic reset: Reviewing your structure and key documents ensures they still fit your risk profile and growth plans.

Making this review a habit each July gives you fewer surprises - and more headspace to focus on growth.

Your Start-Of-Year Legal Checklist

1) Review Your Business Structure And Core Registrations

Your business structure affects tax, liability and how you bring in partners or investors. Ask yourself:

• Is your current structure (sole trader, partnership, company or trust) still right for you this year?
• Have there been changes (new director, co-founder, investors, share issue) that need to be reflected in your records?

If you’re taking on more risk or planning to scale, it may be time to consider a company for limited liability and flexibility. If you’re weighing up the basics like ABN use and growth plans, it helps to understand the advantages and disadvantages of having an ABN in the context of your future goals.

Now is also the time to check that your ABN details are current and, if you operate a company, that your ACN records are accurate.

2) Check ASIC Records And Your Business Name

If you operate under a business name (that isn’t your personal name or your company’s legal name), make sure it’s registered and renewed on time. Watch out for suspicious emails and business name renewal scams that often target busy owners mid-year.

For companies, order a current ASIC company extract and confirm directors, shareholders, registered addresses and shareholdings are correct. Budget for your annual review fee and factor in any ASIC fee increase that applies this year.

3) Audit Your Contracts And Commercial Terms

Contracts are your first line of defence for managing risk and preserving cash flow. Each July, review:

• Customer agreements and website or app terms
• Supplier, distributor and partnership agreements
• Employment and contractor agreements
• Leases and property licences
• Confidentiality agreements (NDAs)
• Shareholders or partnership agreements (if applicable)

Check renewal dates, termination rights, pricing review mechanisms, limitation of liability, service levels and IP ownership. If anything feels outdated or one-sided, get a fresh set of eyes on it. A focused contract review can quickly identify gaps and give you negotiation options for renewals.

4) Update Employment Agreements And Workplace Compliance

If you have staff (full-time, part-time or casual), double-check your employment documents and processes are up to date for the new year. Key areas to review:

• Use current Employment Agreements that reflect role, hours, pay, confidentiality, IP and post-employment restraints where appropriate. If you’re hiring this year, put a current Employment Contract in place from day one.
• Consider changes to Modern Awards, minimum wage rates and Fair Work break rules that may apply to your team.
• Refresh workplace policies (leave, WHS, discrimination and harassment, social media and device use) and make sure staff can access them.
• Confirm your super settings are correct if superannuation rates or thresholds change and make sure payroll systems reflect the new year.
• If you engage contractors (local or overseas), make sure your arrangements are compliant to avoid sham contracting issues. Our overview on engaging overseas contractors explains common risk areas.

5) Refresh Privacy, Data And Marketing Compliance

If your business collects personal information, take a moment to check your privacy practices and public-facing policies.

In Australia, many small businesses with an annual turnover of $3 million or less are generally exempt from the Australian Privacy Principles (APPs). However, there are important exceptions - for example, if you provide health services, trade in personal information, are a credit reporting body, contract to the Commonwealth, or handle tax file number information. If an exception applies to you, you must comply with the Privacy Act and the APPs.

Regardless of size, clear data practices build trust. If you’re an APP entity, ensure your Privacy Policy accurately explains what you collect, why you collect it, where you store it, and how users can contact you or access their information. If you use cookies or analytics, make sure that’s covered too.

For marketing, ensure your email and SMS practices align with Australian spam and consent rules - our overview of email marketing laws outlines practical do’s and don’ts.

6) Renew Licences, Permits And Industry Registrations

Build a simple register of the licences and permits you hold (and their renewal dates). Depending on your industry, this could include council permits, liquor or food licences, local registrations, industry accreditations or import/export registrations. Operating with an expired licence can attract penalties or enforcement action, so it pays to diarise renewals and set reminders now.

7) Check Your Consumer Law Position And Website Terms

If you sell goods or services to consumers, you must comply with the Australian Consumer Law (ACL). Review your refund and warranty statements to ensure they reflect the mandatory consumer guarantees. If you reference durations, be careful not to understate rights - see the context around the ACL and warranties in this explanation of 2‑year warranty myths.

Online or platform-based businesses should ensure their website or platform terms clearly cover ordering, delivery, subscriptions, cancellations, fault reporting, and dispute resolution. Align your internal processes with what your terms promise.

8) Plan For Tax, GST And Super Settings

Each new year, verify your settings for payroll finalisation, BAS cycles, super payments and recordkeeping. If superannuation minimum rates or thresholds change from 1 July, update payroll before your first pay run. For reference, employers often confirm how they calculate ordinary time earnings to avoid super shortfalls.

If you pay yourself as a founder, choose a lawful and efficient method that aligns with your structure - salary, director fees, dividends or drawings. Here’s a plain-English overview of how to legally pay yourself as a business owner to help you speak with your accountant.

Important: tax and GST are accounting matters. Always seek personalised advice from your accountant or tax adviser for rates, thresholds and lodgements that apply to your specific business.

Essential Legal Documents To Refresh Or Put In Place

Whether you’re tightening up an established operation or launching something new this year, the right documents will reduce risk and set clear expectations.

• Customer Terms and Conditions: Set pricing, scope, delivery, IP, liability and refunds so you’re paid on time and protected if things go wrong.
• Website or App Terms of Use: Explain acceptable use, IP and liability for your online presence, plus how accounts or subscriptions can be suspended or cancelled.
• Privacy Policy (for APP entities): Tell users what personal information you collect and how you handle it, including cookies and analytics. If an APP exemption doesn’t apply to you, a compliant Privacy Policy should be published and easy to find.
• Employment Agreement: Lock in role, pay, hours, confidentiality, IP assignment and restraints for each employee. Start new hires on the current Employment Contract.
• Contractor Agreement: Clarify scope, deliverables, ownership of IP, confidentiality and payment terms with contractors to avoid sham contracting risks.
• NDA (Non‑Disclosure Agreement): Protect confidential information when sharing ideas, technology, pricing or client lists with third parties.
• Supplier or Distribution Agreements: Secure supply, set quality standards, lock in pricing review mechanisms and manage liability across your supply chain.
• Lease or Licence Agreement: Ensure premises arrangements reflect your use, fit‑out plans and renewal options and that outgoings or make-good obligations are clear.
• Shareholders Agreement or Partnership Agreement: Define decision‑making, profit sharing, dispute processes and exit mechanisms between owners. Having a tailored Shareholders Agreement can prevent messy disputes later.

You may not need every document above, but most businesses need several of them. If your documents are older than a couple of years or were copied from templates, it’s worth a refresh to match your current operations and risk profile.

What Typically Changes On 1 July?

Each new financial year brings legal and compliance updates. Watch for:

• Modern Award and minimum wage changes: Confirm new pay rates and allowances for your staff and update payroll and rostering settings accordingly.
• Superannuation settings: Check any super guarantee rate changes and update systems before your first pay cycle to avoid underpayments.
• Privacy and enforcement focus: Keep an eye on privacy reforms and guidance for small business exemptions, especially if you grow past the threshold or your activities change (e.g. offering health services or trading in personal information).
• Consumer law enforcement: The ACCC often clarifies areas of focus each year. Make sure your advertising, pricing and refund practices line up with the ACL.
• ASIC fees and filings: Factor in annual review requirements and any ASIC fee increase that applies this year to avoid late fees.

If you operate in a regulated sector (health, financial services, liquor and gaming, childcare, construction and trades), also check industry‑specific updates and licence conditions that may roll over on 1 July.

Key Takeaways

• Use 1 July as your annual legal health check - it’s the simplest way to stay compliant and reduce risk while you grow.
• Confirm your structure still fits, your ABN/ASIC records are current, and your business name is valid (and renewed on time).
• Review key contracts - customer terms, supplier agreements, NDAs, leases and owner agreements - and update anything outdated or one‑sided.
• Bring your employment settings into the new year: current contracts, correct award rates, break entitlements, super settings and accessible workplace policies.
• Check whether a Privacy Act exemption applies to your small business; if not, publish and maintain a compliant Privacy Policy and follow Australian spam rules for marketing.
• Renew licences and permits, and make sure your refund, warranty and advertising practices align with Australian Consumer Law.
• Coordinate with your accountant on tax, GST and payroll; adjust super settings early and document how you’ll pay yourself this year.

If you’d like a consultation on getting your business legally set for the new financial year, you can reach us at 1800 730 617 or team@sprintlaw.com.au for a free, no‑obligations chat.