Bloody Labour

We are looking at buying a small business with the breakdown being 25% freehold and 75% goodwill.
Stamp Duty was calculated on the freehold portion but during the past year or so these sleazy maggots have enacted a policy to include the goodwill into the price giving me a 100% liability for stamp duty, and of course we are the most expensive state in the country for duty.
Bastards.
Talking to the bank ealier in the week and they gave me a brief rundown on their stamp duty reduction election promise, you will get a reduction if you are a 1st home buyer and forego the $7000 1st homebuyers grant andit is under $500K.
The way the figures work if you give up your $7K you lose, good on you Bracks.

gettin a milkbar Iain?

No.
Looking at Australia Post.

good move

10 minutes have now lapsed and Sturdee hasn't detected the stench of this one yet, he must be unwell;)

You should make some noise about this. maybe letter to the Herald Sun or ring neil mitchell. These pricks get away with bloody murder and nobody knows about it.

has anybody else realised that long service leave entitlements have been changed and are now due if you have been at the same place for only 7 years? It used to be 10. Just another cost of employing people who wonder why the factories are closing and jobs being shifted off shore. :(

Buy the business from them for $1, then (due to their now being poor) give them the rest as a charitable donation. Then claim it on tax.

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Originally Posted by Iain

10 minutes have now lapsed and Sturdee hasn't detected the stench of this one yet, he must be unwell;)

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Not unwell but was working outside concreting. :eek: There must be a better way of not earning a living than concreting on a Saturday arvo.

Actually Bob Willson has the right idea of channelling the goodwill through a separate purchase of stock, fittings etc at an agreed higher than normal value to compensate.

Or if the business is run through a company purchase the shares in the company and avoid it altogether. If doing this take care to verify outstanding liabilites of the company or retain some moneys untill the situation is clear.

Good luck.


Peter.

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Originally Posted by Gumby

has anybody else realised that long service leave entitlements have been changed and are now due if you have been at the same place for only 7 years? It used to be 10.

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Actually I believe that the entitlement in a number of industries is pro rata payment on termination after 5 years not 7.


Peter.

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Originally Posted by Sturdee

Actually I believe that the entitlement in a number of industries is pro rata payment on termination after 5 years not 7.


Peter.

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More info Peter, my better half worker for a company in Dandenong for 5 1/2 years and they moved her position to Preston (very recently), she found another position (Preston was a hell of a big ask) and did not receive any pro rata long service leave entitlements.

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Originally Posted by Sturdee

Or if the business is run through a company purchase the shares in the company and avoid it altogether. If doing this take care to verify outstanding liabilites of the company or retain some moneys untill the situation is clear. .

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I think most people would advise strongly against buying the company. You never know what will come back later and bight you on the bum.

I haven't heard of 5 years pro rata for long service entitlements and certainly wasn't the case for my clerical or sales staff when I recently sold my business. I think 7 is too short as it is.

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Originally Posted by Iain

More info Peter, my better half worker for a company in Dandenong for 5 1/2 years and they moved her position to Preston (very recently), she found another position (Preston was a hell of a big ask) and did not receive any pro rata long service leave entitlements.

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Recently, in my part time job, I had to pay pro rata LSL to a doctor's surgery receptionist after 5 1/2 years of service on the advice of the AMA legal service. Maybe because we terminated her employment and it may not apply to all industries.


Peter.

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Originally Posted by Gumby

I think most people would advise strongly against buying the company. You never know what will come back later and bight you on the bum.

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I have been involved a number of times with people buying a business by buying the company. Sure it has problems, but due investigations would show if the company is squeky clean or a potential problem waiting to blow up in your face.

I would also obtain the necessary idemnities from the sellers and advise them that if they made any misrepresentation or falsifications of company records or documents that we would prosecute them in court.

One case where we advised them of these conditions they immediately withdrew their offer to sell, one fell through because not all proper records were kept but two others were very successful purchases saving more in stampduty and more particularly not having to transfer of government licences.

Hence my immediate caveat but it should not be immediately ruled out because of misunderstanding what a proper company investigation may reveal.


Peter.

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Originally Posted by Iain

No.
Looking at Australia Post.

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If serious.

The post office is dying in the UK, example just before we left it was announced that postage stamps could be purchased on the web and you print your own stamps.
Many other PO items have also been taken away from the Royal Mail over the last few years.