-. As a side point, one of the best things about working for my own business is that just about everything you can think of can be put through the business, which means it's paid for pre-tax. It ends up saving us a lot of money! (think phone, mobile, foxtel, some groceries, lunch 'meetings', office supplies, internet access, car, petrol, some electricity and gas since I work from home, office furniture, the list is endless) My biggest expense is my phone and accountant. Another point is that you work for your company if that's how you're set up, so that's where the money goes, and you can choose how much salary to pay yourself. This means you can still be eligible for family tax benefits, etc.
Ok the Bookkeeper and accounting training is coming out in me now. Please be very careful what expenses you claim for your business, please see your accountant for what you can and can't claim, as some could incure fringe benefits or even worse mean that you could incure capital gains tax on your home if you sell it, so protect your self.

Agree totally about the company set-up, being separate from the business as such is quite handy and makes it very easy to set your wage for the year and declate it to the family assist office, but once again see your accountant for the best business set-up for you.