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businessconsultancyservices.com.auThe five lines

Where a business consultant stops being only a consultant

General information about how Australian law treats business advice. It is not tax, financial or legal advice. Check an adviser on the official register, where a line names one.

Advice on your business needs no licence. Advice on your tax, your investments, a loan or a contract can. And a consultant whose word the board simply follows is a director in law.

Any adviser

The consumer test, under the Australian Consumer Law and regulation 77A: services are consumer services if, and only if, the amount paid or payable does not exceed $100,000, the amount prescribed, or the services are of a kind ordinarily acquired for personal, domestic or household use or consumptionThe three service guarantees: due care and skill; fitness for the purpose you made known; supply within a reasonable time when no time is agreed

Any adviser

Licensed, registered, or a director

  1. 1 TaxGeneral advice about running the business: registration is required for a tax agent service provided for a feeApplies tax law to your own circumstances, and you rely on it, for a feeThe Tax Practitioners Board’s factors to consider include whether you have applied your knowledge of a taxation law to a client’s individual circumstancesTax agent or BAS agent, registered with the Tax Practitioners BoardCheck the TPB Register, or look for the Registered tax practitioner symbolThe ATO’s safe harbour from penalties: you are not entitled to it if you engage an unregistered preparerAlso on the far side, on these two rows: a code of conduct on the tax row, insurance on the legal row, in Victoria’s words
  2. 2 Financial productsGeneral business advice that gives no financial product adviceRecommends which financial product to buy: shares, super and insurance among themYou provide financial services if you: give clients financial product advice, such as recommending to clients or the general public which financial product to buyAFS licensee, or an authorised representative of oneThe ASIC professional registers, and Moneysmart’s financial advisers register
  3. 3 CreditGeneric advice relating to credit: ASIC says a financial planner giving it needs no credit licenceSuggests or assists with a specific contract from a specific credit providerThe line is drawn mainly for credit to people for personal purposes: the test is whether the loan is predominantly for personal, domestic or household purposes, and loans to companies are not caught this way; some loans to people for residential property investment are caughtCredit licensee, or a credit representative of oneThe ASIC professional registers, which include credit licensees and credit representatives
  4. 4 Legal workBusiness advice that does not advise on, or draft, the terms of a contractVictoria the Victorian Legal Services Board and Commissioner lists, among common examples of activities that could be considered to be unqualified legal practice if done by an individual without a current practising certificate, writing and/or giving verbal advice on ‘transactional’ documents that may not involve going to court (for example, drafting, or advising on the terms of, a contract)New South Wales the Law Society of NSW states that practice by unqualified entities is prohibited in New South Wales by section 10 of the Uniform LawQueensland the Queensland Act provides that a person must not engage in legal practice in this jurisdiction unless the person is an Australian legal practitionerWestern Australia the Uniform Law as WA applies it provides that an entity must not engage in legal practice unless it is a qualified entity, and an entity is not entitled to recover any amount, and must repay any amount received, for anything done in contravention of thatAdvises on, or drafts, the terms of a contractAustralian legal practitioner, holding a current practising certificateAlso on the far side, on these two rows: a code of conduct on the tax row, insurance on the legal row, in Victoria’s words
  5. 5 The companyAdvice given in the proper performance of a professional roleThe directors are accustomed to act in accordance with the adviser’s instructions or wishesCorporations Act s 9AC opens with ‘unless the contrary intention appears’, and it excludes advice given by the person in the proper performance of functions attaching to the person’s professional capacity or their business relationship with the directors or the corporationA director in law, with no appointment neededThere is no register for this line

Before you hire

Business Queensland says it is important to have a contract in place with each of your advisers, and that it should include the scope of the arrangement (duration, costs, intended meeting times and services to be provided), key performance indicators related to the goals, a process for review, a process for complaints and grievances, and a termination clause.

On fees, the same page says advisers may provide the initial consultation or advice brief for free and then go on to work for a fixed fee or hourly rate, and that others work on commission. It advises against choosing an adviser on cost alone: a higher fee may indicate plenty of experience, and a lower fee may not be a bargain if the adviser has less experience.

Where a small business can find advice for little or nothing

Low-cost advice

The services on official pages are a mixed set. The Small Business Development Corporation in Western Australia provides free business advice to help small business owners in Western Australia start well, survive and thrive. The Small Business Mentoring Service is a low-cost program to help medium, small and micro business operators define and achieve their goals. The Small Business Debt Helpline is a free service for small business and family enterprise owners experiencing financial hardship, run by Financial Counselling Australia.

Government-supported advisers, side by side

Where the rules come from