Why Public Liability Insurance is Essential for Your Business
In the course of running a business, unexpected incidents can occur that lead to financial and legal risks. Whether you operate a small enterprise or a large corporation, public liability insurance is a fundamental safeguard against claims arising from injury or property damage caused by your business activities.
While it’s not legally required in Australia, why risk it? The majority of businesses choose to have it as a precautionary measure against unforeseen events.
What is public liability insurance?
Public liability insurance provides coverage for businesses against claims made by third parties — such as customers, clients, suppliers, or members of the public — who suffer an injury or property damage as a result of the business’s operations. For example:
- A customer slips and falls on a wet floor inside a retail store, resulting in medical expenses and potential legal action.
- A tradesperson accidentally damages a client’s property while carrying out repair work.
- A business participating in a public event is found responsible for an incident that causes harm to attendees.
In each of these scenarios, public liability insurance would help cover compensation costs and legal fees, preventing significant financial strain on the business.
Is public liability insurance legally required in Australia?
Public liability insurance is generally not compulsory by law in Australia. However, there are circumstances where it is required, such as:
- Trade licensing requirements: Electricians, plumbers, and builders often need public liability insurance to obtain and maintain their licences.
- Contractual obligations: Businesses working with government agencies, large corporations, or event venues may be required to hold a certain level of public liability insurance.
- Lease agreements: Many landlords and shopping centre managers mandate a minimum level of coverage for tenants.
Even when not required, having public liability insurance is a responsible business decision that can protect against unforeseen financial losses.
So, no one legally needs public liability insurance, but who should get it?
Public liability insurance is relevant to businesses across various industries, particularly those that interact with the public or operate in environments where accidents could occur. The following businesses and professionals should strongly consider obtaining coverage:
- Businesses with customers or public interactions. If you have customers, suppliers, or visitors to its premises, there is a higher risk of accidents occurring. Retail stores, restaurants, salons, medical clinics, and office spaces with regular foot traffic should have public liability insurance to cover potential claims.
- Businesses operating in public spaces. Companies that work in public areas — such as construction firms, event organisers, and market stall operators — face higher exposure to third-party claims. Public events, in particular, present a risk of injury or damage due to large crowds and various moving parts.
- Tradespeople, contractors & sub-contractors. Tradespeople frequently work on client premises, where there is a risk of property damage or injury. Many trade licences, such as those for electricians and plumbers, require proof of public liability insurance as part of the licensing process.
- Businesses leasing commercial property. Many commercial landlords require tenants to have public liability insurance as part of their lease agreement. Shopping centres, office buildings, and industrial properties often have mandatory minimum coverage levels that tenants must meet before occupying a space.
- Businesses manufacturing or selling products. Product liability insurance is typically used to cover claims related to faulty or dangerous products. It can also provide coverage if a defective product causes injury or damage while being used in a business setting. For example, a café serving food that results in food poisoning could face a claim from affected customers.
What public liability insurance covers.
A comprehensive public liability insurance policy typically covers the following:
- Legal liability for injury or death. If a third party is injured or dies as a result of your business activities, public liability insurance covers compensation costs and related legal expenses.
- Property damage. If your business causes accidental damage to third-party property, the policy will help cover repair or replacement costs.
- Legal costs. If your business is taken to court over a public liability claim, the policy will cover legal defence fees and settlements.
- Compensation payments. If a court or insurer determines that your business is liable, the insurance will cover the compensation you are ordered to pay.
What public liability insurance doesn’t cover.
While public liability insurance is a broad form of coverage, it does not protect businesses from every type of risk. It is important to be aware of its exclusions, which may include:
- Injuries to employees. Employee-related injuries are covered under workers’ compensation insurance, not public liability.
- Defective workmanship. If a job is completed poorly and results in damages, professional indemnity insurance may be required instead.
- Advertising liability. Claims related to false advertising, copyright infringement, or misleading statements typically require a separate form of coverage.
- Vehicle-related accidents. If your business vehicle causes an accident, you will need a commercial motor vehicle insurance policy.
- Intentional acts of harm. Any deliberate harm caused by your business or employees is not covered.
How much public liability insurance does a business need?
The amount of coverage required depends on several factors, including the industry, size of the business, level of risk, and contractual obligations. Standard coverage levels range from $5 million to $20 million, with businesses in high-risk sectors typically requiring higher limits. For example:
- A small café may opt for $5 million coverage to meet lease requirements and customer risks.
- A construction firm working on large projects may require $20 million coverage due to high-risk work environments.
- A business hosting large public events may need $10 million or more in coverage to protect against potential liabilities.
Assessing your business risks and consulting with an insurance advisor can help determine the appropriate coverage amount.
Looking for public liability insurance?
Public liability insurance is a key component of risk management for businesses, providing essential protection against financial and legal risks associated with accidents, injuries, and property damage.
For businesses of all sizes, understanding the level of coverage needed and ensuring compliance with industry standards is essential. Get in touch with us today and take the first step toward a safer, risk aware, protected business.
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It’s very common for retirement priorities to shift over time. But for some, the change arrives with a jolt. You may spend years—even decades—planning exactly what your post-work life will look like. While life can throw a curveball into your plans at any stage, the closer you get to retirement, the more unsettling the disruption can be. Whether it’s family breakdowns, the death of a loved one, an inheritance received, or unexpected expenses, you'll face a different personal and financial landscape. One that no longer matches the retirement you envisioned. Adjusting your working life. When a major life change hits, the most important rule is: don't rush anything. While you're reshaping your future and contemplating big moves, avoid making any rash decisions that are irreversible. The event may alter the required length of your working life or your willingness to continue working: Health issues could force you to retire earlier than planned A substantial inheritance might enable a more enjoyable, earlier exit from work. Conversely, a divorce late in life, particularly for someone with high spending habits, might necessitate staying chained to a desk longer. The separation may leave you with an unexpected mortgage or simply drain your finances through the legal process, creating difficulties. Make a basic plan. Take the time to sit down and rationally think through what your new retirement might involve. If retirement is still five to 10 years away, that's a good timeframe to start contemplating your next steps. The most critical step is to determine how much money you will need to spend. While most people worry about whether they "have enough money," the key question is almost always, "How much do I need to spend in retirement?". Consider this example: If you retire with $1 million and your annual spending requirement is $50,000, you're likely secure. However, if you have $1 million but need to spend $150,000 per year, you have a problem. You'll need to either dramatically increase your savings or significantly reduce your spending expectations. If you are struggling with these figures or want a professional opinion, see a financial adviser ( we can direct you to one ). Paying for a few hours of their time will help you consider things you hadn't thought about. A change of pace. Remember, retiring from your main career does not mean leaving the workforce for good. You have options: Moving part-time in your current job for a few years, using your extra days for hobbies. Taking on volunteer work. Leaving a stressful executive role for paid work you actually enjoy. Hopefully, your surprises on the path to retirement are positive ones. If they are not, don't panic. Stay calm and seek advice. We can help. Early advice and planning can make a real difference in managing your retirement well—understanding the tax implications is a huge part of that. Don’t wait — let us help you !
If you're living and working in Australia on a visa, you may be required to lodge a tax return with the Australian Taxation Office (ATO). Australia's tax system is complex—even more so if you're a visa holder. We specialise in helping visa holders understand and manage tax obligations with clarity, compliance, and confidence. With years of experience in this niche area, our dedicated team of tax professionals is here to make tax time stress-free. Do visa holders need to lodge a tax return? If you earn income in Australia, you're likely required to lodge a tax return. This applies even if you're on a temporary or bridging visa. Common visa types that often require a tax return include: Working Holiday Visa (subclass 417 or 462) Student Visa (subclass 500) Temporary Skill Shortage Visa (subclass 482) Graduate Visa (subclass 485) Partner Visa (subclass 820/801 or 309/100) If you earn more than the tax-free threshold (currently $18,200), you must lodge a return. Some visa holders, however, don’t qualify for this threshold—more on that below. Australian Tax Residency Test explained. When it comes to lodging your tax return, your tax residency status makes a huge difference. Even if you're on a temporary visa, you could still be a resident for tax purposes. This affects how much tax you pay, what deductions you're eligible for, and whether you can claim the tax-free threshold. 1. The Resides Test (Main Test) This is the primary test. You’re likely a resident if: You live in one place and have regular routines (like renting a place, going to work or uni) You’re part of the local community (bank account, phone, gym, etc.) You stay in Australia for a continuous period of 6 months or more You intend to stay long term—even if your visa is temporary 2. The Domicile Test You may be a resident if your domicile (legal home) is in Australia, unless you can prove your permanent place of abode is overseas. This usually applies to: Australian citizens or PRs working overseas temporarily People who still maintain strong ties to Australia Note: Most temporary visa holders don’t pass this test unless they’ve been in Australia long-term. 3. The 183-Day Test. If you’re physically in Australia for 183 days or more in a financial year (doesn’t need to be consecutive), you may be a resident—unless your usual place of abode is clearly overseas and you don’t intend to live here. You’re likely a resident if: You stay for 6 months or more You rent long-term accommodation You’re working or studying with the intention to remain for an extended time Common visa types & how tax applies. 1. Student Visa (Subclass 500) Likely considered a tax resident if you stay over 6 months Can claim the tax-free threshold ($18,200) Can deduct eligible expenses (like textbooks, computers for study if working in a related field) 2. Working Holiday Visa (Subclass 417 or 462) Taxed at a flat rate of 15% on income up to $45,000 Must lodge a return if you earn any income Generally, not eligible for the tax-free threshold Superannuation can be claimed back when leaving Australia (through DASP) 3. Temporary Skill Shortage (TSS) Visa (Subclass 482) Often considered a tax resident, especially if you're working full time and have relocated Must lodge a return and may be eligible for tax offsets Can claim work-related deductions and rental expenses (if conditions apply) 4. Partner Visa (Subclass 820/801 or 309/100) Usually treated as a resident for tax purposes Same obligations and entitlements as an Australian citizen Tax returns may support future PR or citizenship applications Key differences for visa holders. 1. Tax Residency Status Your tax residency is not the same as your immigration residency. You could be a temporary visa holder and still be considered an Australian resident for tax purposes. If you're a resident for tax purposes, you may be eligible for the tax-free threshold and lower tax rates. If you're a non-resident, you’ll pay tax on every dollar earned (no tax-free threshold) and possibly at higher rates. Factors like how long you’ve been in Australia, your living arrangements, and whether you plan to stay long-term affect your tax residency status. The ATO provides a residency test to help determine your status. 2. Working Holiday Makers If you hold a working holiday visa, you're taxed at a special flat rate (15% on income up to $45,000 as of 2024-25), regardless of your residency status. You're still required to lodge a return if you’ve worked. 3. Access to Tax Offsets and Benefits Only Australian tax residents can access certain tax offsets, such as the low-income tax offset. You may also qualify for superannuation contributions, but you'll need to apply for a Departing Australia Superannuation Payment (DASP) when leaving the country permanently. What are the common mistakes to avoid? We see four common mistakes: Assuming you don’t need to lodge because you're a student or on a short-term visa Not declaring all income (including freelance or cash jobs) Using the wrong tax residency status Forgetting to lodge a return when leaving Australia Let us take care of your tax return. Whether you're a student, skilled worker, working holiday maker, or about to leave Australia permanently, getting your tax return right is crucial. This is a niche area Ascent Accountants specialises in. We understand the unique situations that come with different visas—and we make sure you claim every dollar you’re entitled to. Contact us today to get started.
Bringing clarity to concealed sales prices. Scrolling through property listings and seeing phrases like 'offers from', 'expressions of interest', 'all offers considered', or simply 'contact agent' instead of a clear price can be frustrating for buyers. This lack of transparency makes it difficult to figure out what a seller is truly expecting for a property. In fact, the frustration at properties advertised with no price at all is consistent feedback clients give to agents. Buyers often report frustration after calling agents and not being given any guidelines on where the property sits on a price scale. The absence of price information can impact user engagement, with industry feedback suggesting it can significantly influence how users interact with property websites. Clear, visible pricing may enhance user trust and interest. Strategic steps for buyers. How to overcome the problem when agents don't give a price guide. Navigating a property purchase without a price guide is challenging, but buyers can take strategic steps to reduce uncertainty and strengthen their buying position. Research comparable sales: Understanding market trends and researching comparable sales in the area is crucial for setting realistic expectations. While median values are widely referenced, they don't always accurately reflect individual property values, so look at recent sales of similar properties for a clearer picture. Know your financials: Have a clear understanding of your risk profile and financial position. Know your borrowing capacity and secure a loan pre-approval. This streamlines the buying process and makes your offer more appealing to sellers in a competitive market. Use online tools: Experimenting with the minimum-to-maximum price range feature online can assist in providing a general price range. The limitations of desktop valuations. While desktop valuations can be handy, be careful not to overstate their accuracy due to certain variables. Desktop valuations are just averages based on an area's lot size, house size, nearby sales, number of bedrooms, and bathrooms. They may not accurately account for homes that are unique, have views, or don't fit the suburb's prescribed pattern. Furthermore, distinct features are ignored. A significant difference between properties may be that one has been totally upgraded and renovated, with sellers spending hundreds of thousands, versus a property in original condition. This difference is often not taken into account by automated valuations. We’re here to help. Buying a home is a financial and an emotional decision. If you’re buying, do your homework on comparable sales and understand the tax implications with Ascent Accountants . You can also consult with Ascent Property Co. and be matched with a home that suits your needs.
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