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Thinking of starting a business in 2025? Or perhaps you’ve already got one up and running? Either way, when it comes to doing business, there’s a lot more to it than just selling and profiting. In today’s competitive and fast‐evolving market, getting your legal foundations right is more important than ever.
Every business needs to comply with all the relevant laws and regulations before it can truly achieve its goals. Understanding the regulatory compliance requirements for your industry – whether you’re operating as a sole trader or a company – is absolutely crucial in 2025.
The legal and business worlds are closely intertwined. To run a successful business and avoid costly penalties, it’s essential that you understand your legal obligations and stay up to date with any regulatory changes. As laws evolve each year, consulting resources like our legal tips and updates can keep you informed and protected.
What Laws Apply To My Business?
Businesses must comply with a broad range of laws, and the requirements can vary depending on your business type, industry and the regions in which you operate. In 2025, staying informed about the latest updates – from data privacy to employment legislation – is key to maintaining compliance.
This includes regulations regarding taxes, registration, employee relationships and much more. There’s a lot of ground to cover, so let’s dive in and explore the essentials.
Registration Requirements
Every business journey begins with proper registration. Register your business with the Australian Securities and Investments Commission (ASIC) to ensure you’re establishing your venture on solid legal ground. Your registration requirements will vary depending on your chosen business structure and the specific tax obligations you need to meet.
For instance, if you’re a sole trader or operating a partnership, you will need an ABN – and if you’re taking the sole trader route, you might also want to check out our guide on operating as a sole trader for additional insights. However, if you’re forming a company, you’ll require an ACN in addition to your ABN.
Let’s break this down into the key components.
Australian Business Number (ABN)
Every business needs an Australian Business Number (ABN). The application process is straightforward and can be completed entirely online. A nominal fee applies, and once approved, you will receive your ABN via email. This unique identifier is essential across many formal processes and helps establish your business identity from day one.
Tax File Number (TFN)
A Tax File Number (TFN) is required for business operations. If you’re a sole trader, you may use your personal TFN. For other business structures, a separate TFN for the business is necessary when handling tax matters and investments.
Goods and Services Tax (GST)
If your annual turnover exceeds $75,000, you must register for GST to ensure you remain legally compliant. Even if you’re close to this threshold, proactive registration can help avoid any disruptions in your business operations.
Register Your Business Name
While applying for your ABN, you can simultaneously register your business name. Keep in mind that a search on the Business Names Register will confirm the availability of your chosen name. However, registering a business name does not grant you exclusive ownership of that name.
To secure exclusive rights to your business name, consider getting it trademarked. This extra layer of protection is invaluable in today’s competitive market.
Privacy Obligations For Businesses
If your business operates online or collects personal information, you must adhere to strict privacy obligations. Both Australia and overseas jurisdictions have their own privacy laws, so it’s critical to ensure your policies are tailored to each region where you operate.
Privacy Act 1988
Australian privacy laws are governed by the Privacy Act 1988 and the accompanying Australian Privacy Principles (APPs). These require any business collecting personal data to maintain a clear and comprehensive Privacy Policy. A robust policy outlines what information is collected, why it’s collected, and how it is managed.
For further clarity on your obligations, you might explore our article on when you need a Privacy Policy, or speak to one of our data privacy experts for a tailored consultation.
General Data Protection Regulation (GDPR)
The General Data Protection Regulation (GDPR) remains a critical framework for privacy in the European Union. While its requirements differ slightly from Australian standards – for instance, providing EU residents with a right to be forgotten – it nonetheless underscores the global importance of protecting consumers’ personal information.
If you plan to expand overseas, ensure your Privacy Policy is updated to reflect the local regulations of each market you enter.
Privacy is a complex area, so do not hesitate to seek reliable privacy advice to secure your business and consumer trust.
Fair Trading Laws
Fair trading laws are designed to protect consumers by ensuring that businesses engage in honest and transparent practices. In 2025, adherence to these laws remains a must to avoid reputational damage and legal penalties.
These regulations prevent businesses from engaging in unfair practices such as using unfair contract terms, misleading advertising or failing to deliver on consumer guarantees.
Australian Consumer Law
The Australian Consumer Law (ACL) sets out specific standards to protect consumers. The ACL covers issues such as unfair contract terms, misleading or deceptive behaviour, and the failure to provide a warranty, ensuring that consumer rights are upheld at every stage of a transaction.
Violating these standards is a breach of the ACL and can result in significant penalties.
Competition and Consumer Act
The Competition and Consumer Act 2010 continues to regulate how businesses interact with each other and with consumers. In 2025, compliance with this Act includes ensuring accurate pricing and transparent advertising practices.
Labelling Requirements
Strict labelling requirements form a central part of fair trading laws. Regardless of the products you sell, all labels must be clear, transparent and truthful to avoid any appearance of misleading or deceptive conduct – a key requirement under the ACL.
Warranties And Refunds
Under the ACL, consumers are entitled to warranties and refunds if a product fails to meet certain standards. As a business owner, having a well-defined system for handling refunds and warranty claims is essential to maintain customer trust and comply with consumer law.
Preparing for such eventualities not only protects your customers but also safeguards your business’s reputation.
Employment Laws
As your business grows, you may choose to employ staff to help with daily operations. In 2025, ensuring that your employment practices meet legislative standards is critical to avoid disputes and legal issues down the track.
National Employment Standards
The National Employment Standards (NES) prescribe the minimum entitlements for employees. These standards cover areas including maximum working hours, public holidays, various forms of leave and termination procedures. It’s your responsibility as an employer to ensure these conditions are met.
For practical advice on interpreting these standards, take a look at our insights on converting from casual to full time employment and parental leave best practices.
Work Health and Safety
A safe work environment is essential for the productivity and well-being of your employees. Whether your staff work onsite or from home, you must take all reasonable steps to ensure their physical and mental health is safeguarded. For a comprehensive overview of your obligations, visit Safe Work Australia.
Employee Or Contractor?
When expanding your team, it’s common to use contractors for specialised projects or short-term engagements. However, it’s important from the outset to distinguish contractors from full‐time employees to ensure correct entitlements are applied to each group. Our article on distinguishing contractors from employees offers valuable guidance on this issue.
Do I Need Workers’ Compensation Insurance?
If an employee is injured at work, workers’ compensation insurance protects both the employee and your business from significant financial setbacks. In NSW and many other states, having workers’ compensation insurance is compulsory. To learn more about the specific requirements in your region, click here.
Unfair Dismissal
If an employee believes their termination was unjust, they may lodge an unfair dismissal claim with the Fair Work Commission. The commission will investigate the matter before deciding on the outcome.
Small Business Fair Dismissal Code
For small businesses with less than 15 employees, the Small Business Fair Dismissal Code provides a degree of protection. Notably, employees who have worked with the business for less than 12 months are generally not eligible to bring forward an unfair dismissal claim, helping small enterprises manage termination processes more effectively.
Ensuring your dismissal procedures adhere to the code can protect your business from costly legal disputes.
Franchising Laws
If your business demonstrates strong potential, you might consider expanding through franchising. Franchising offers exciting growth opportunities for both franchisors and franchisees, but it also requires strict adherence to legal standards.
Make sure you comply with the Franchising Code of Conduct and have all the necessary franchising documents in place before embarking on this journey.
Franchising Code of Conduct
The Franchising Code of Conduct sets out the regulatory framework for franchising, detailing disclosure requirements, mutual obligations, record keeping and contractual terms. Familiarising yourself with these obligations is critical to avoid disputes and ensure smooth business operations within your franchise network.
Intellectual Property Laws
Securing your intellectual property is a smart strategy to mitigate future disputes and safeguard your business’s intangible assets, such as logos, slogans and proprietary technology.
Common protective measures include trade marks, copyright, trade secrets and patents. Each plays a vital role in ensuring your business maintains exclusive rights over its creative and innovative contributions.
Trade Marks Act 1995
The Trade Marks Act 1995 governs trade marks in Australia. Under the Act, a wide range of elements-including sounds, colours, scents, names, logos and phrases-are eligible for trademark protection, provided they are distinctive and not overly descriptive. Once registered, your trademark gives you exclusive legal rights to use or license it, further strengthening your market position.
Copyright Act 1968
Copyright protection is granted automatically to any original work under the Copyright Act 1968 and does not require a formal registration process. However, using well-drafted contracts and licences can help prevent unauthorised use or infringement of your copyrighted material.
Consult with our legal experts if you need assistance in protecting your intellectual property assets in today’s dynamic market.
What Policies Do I Need?
Having the right policies in place is not only essential for legal compliance but also for building trust with your customers and partners. Good policies set out clear expectations and help manage the relationship between your business and its stakeholders.
Below are some key policies every business should consider adopting.
Terms And Conditions
While not a strict legal requirement, detailed terms and conditions help outline the norms of engagement between you and your customers-whether they visit your physical premises or your website. These conditions can also protect you from potential liabilities by defining acceptable behaviour and dispute resolution processes.
Privacy Policy
A robust Privacy Policy is legally required if your business collects personal information. This policy must clearly explain what data is collected, how it will be used and the measures taken to protect that data, ensuring transparency and compliance with the Privacy Act 1988.
Returns Policy
A clear and accessible returns policy is vital to set customer expectations and comply with consumer law. It should outline the process for returning items, any associated conditions, and refer to consumer guarantees without contravening the ACL. The easier this policy is to locate and understand, the better it is for maintaining customer trust.
Next Steps
Following legal regulations is a huge part of running a business. In 2025, it’s more important than ever to ensure that every aspect of your business – from registration to compliance, employment, intellectual property and beyond – is covered.
For further reading on broad-ranging topics such as legal requirements for starting a business or details on changing your business structure, explore our comprehensive resources. We also offer tailored consultations through our small business lawyer services to help guide you through every legal challenge.
Additionally, as trends evolve and new technological challenges emerge-such as issues around cybersecurity and online consumer protection-it’s wise to stay updated with our regular publications on digital marketing legal tips and data privacy advice.
To summarise what we’ve discussed:
- Registering your business in 2025 involves obtaining an ABN, and if required, an ACN, TFN and registering for taxes like GST and a business name.
- Understanding both domestic and international privacy obligations is essential to protect consumer data.
- Compliance with fair trading laws – including labelling requirements, warranties, and refunds – must be maintained.
- If you hire employees, ensure you adhere to employment laws, workplace health and safety guidelines, the NES, and secure appropriate workers’ compensation insurance.
- Small businesses benefit from the Small Business Fair Dismissal Code, safeguarding them from certain unfair dismissal claims.
- Franchisors and franchisees must comply with the Franchising Code of Conduct and have all necessary documentation in place.
- Securing your intellectual property through trademarks, copyrights and other measures protects your brand in a competitive market.
- Implementing robust policies, such as clear terms and conditions, privacy and returns policies, is fundamental to protecting your business and ensuring customer transparency.
If you would like a consultation on the legal regulations impacting your business in 2025, please reach us at 1800 730 617 or team@sprintlaw.com.au for a free, no-obligations chat.
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