Apply Legal Requirements & Manage Small Business Finances (Also incorporates some contracts)

1. Apply Legal Requirements & Manage Small Business Finances(Also incorporates some contracts) Lesson 13 Some slides courtesy of M. Naidofski Cert IV - M. S. Martin March 2012

2. Todays Lesson 1. Payroll Systems, GST and Superanuation Requirements Reference: Chapter 5 – taxation and Super Payroll & GST – additional notes Cert IV - M. S. Martin January 2012

3. Employment • As previously discussed, under chapter 5, a Business can operate as a • Sole Trader • Partnership • Company • If you employ “employees” under any of these systems, you have legal responsibilities for taxation and other requirements. Cert IV - M. S. Martin January 2012

4. Statutory Controls • The main authorities which affect the record keeping requirements of all employers are the: • Australian Taxation Office (ATO) • Department of Industrial Relations (DIR) • http://www.industrialrelations.nsw.gov.au/Home.html • Department of Employment, Education and Training (DEET) (change your text) now, department of Employment, Education and Workplace Relations (DEEWR) • http://www.deewr.gov.au/Pages/default.aspx Cert IV - M. S. Martin January 2012

5. Statutory Controls • In New South Wales the following authorities are relevant: • WorkerCover New South Wales • Australian Construction Industry Redundancy Trust (ACIRT) http://www.acirt.com.au/ • Building and Construction Industry Long Service Payments Corporation. (LSPC) • http://www.longservice.nsw.gov.au/ • Australian Taxation Office (ATO) Cert IV - M. S. Martin January 2012

6. Basic Building Office Cert IV - M. S. Martin January 2012

7. Awards & Other Forms • Forms for employee payments, bank authority etc. • BAS, PAYG, PAYG instalments • ATO Forms • Long Service Leave, recognition of service • Superannuation - The current contribution is 9% of your salary and your employer will automatically pay this on your behalf to a Superannuation Fund, but only after you have earned a minimum of $450 in a calendar month. • http://www.ato.gov.au/individuals/pathway.aspx?pc=001/002/064&alias=super • Workers Compensation • Sick Leave Cert IV - M. S. Martin January 2012

8. Payroll Systems • Manual systems • For most small businesses (eg. with less than 10 employees) • Computerised payroll systems Cert IV - M. S. Martin January 2012

9. Payroll Items • Gross pay • Earnings • Employees may be paid using several methods of remuneration, including : • Hourly wage • Hourly wage with overtime entitlement • Yearly salary • Piece-rate • Commission • Bonuses Cert IV - M. S. Martin January 2012

10. Payroll Items • Entitlements • The gross wage can also include the following entitlements: • Sick leave • Annual leave • Study leave • Maternity leave Cert IV - M. S. Martin January 2012

11. Payroll Items • Allowances • Other amounts may be included in the pay-packet which are designed to compensate the employee for personal work related expenditures. These may include: • car allowances • travel allowances • meal allowances • tool allowances • site allowances • height allowances Cert IV - M. S. Martin January 2012

12. Processing the Payroll • Records required • Employee history card • Time sheets • The wages journal • Pay-slips • Employee earnings record • PAYG Payment Summary (Group certificates) Cert IV - M. S. Martin January 2012

13. Methods of Wage Payments • cash • cheque • electronic funds transfer. (EFT) Cert IV - M. S. Martin January 2012

14. GST • Goods and services tax (GST) is a broad-based consumption tax charged at the rate of 10% on the sale of most goods and services and other things in Australia • GST is charged at each step in the supply chain, with registered businesses including GST in the price of goods and services they sell. • You must register for GST if you are in business and your GST turnover is at or above the registration turnover threshold of $75,000 per year. • One trap with building and other businesses, is you can’t double dip, that is charge the GST twice. • Be careful when you invoice • Accounting for GST – BAS statements, previously covered Cert IV - M. S. Martin - May 2012

15. Exercise • You are a Building company, you employ: • I x secretary (part time, one day week) – wages • 1 x Labourer (full time, 40 hour week) – wages • 1 x Carpenter (full time, 40 hours week) – wages • 2 x Carpenters (70% year on average) – sub contractors • Up to 6 x other subcontractors (periodically) – job to job basis • What are the legal obligations for your business ? Make a dot-point list for each person Cert IV - M. S. Martin January 2012

16. Review Development Application Process Your on-line assignment would be your reference Cert IV - M. S. Martin January 2012

17. Intergraded Development • Your assignment didn’t fall into this category, but you should be aware: • Some types of development also require an approval, licence or permit from another State agency or departments, as well as development approval from council such as: • excavation or removal of material within 40m of a river, lake or lagoon • cut, remove, damage or destroy marine vegetation Cert IV - M. S. Martin January 2012

18. Intergraded Development – cont. • damage, move, alter or undertake any development on an item listed on the Heritage Act (State Significant Development) • destroy, deface or damage an Aboriginal Relic or Aboriginal Place • licences to pollute • erecting a structure or working within a Crown roads, tollway or freeway. Cert IV - M. S. Martin January 2012

19. When is a DA required • A DA is required unless the proposed structure is a COMPLYING or EXEMPT development • Note: Some councils now have a combined document for all applications, just some areas will remain blank, depending on the application. Cert IV - M. S. Martin January 2012

20. Complying & Exempt Developments • Typically, this is where your assignment fitted in. • Certain buildings or developments that have a low impact and do not require a development application or a construction certificate are categorised as Exempt Development or Complying Development. • Randwick Council has prepared a Local Environmental Plan (LEP) and a Development Control Plan (DCP) which set out the relevant controls for these types of development • Other Councils do the same, typically, are now often available on-line, but sometimes require a fee Cert IV - M. S. Martin January 2012

21. Exempt Development • This is a typical extract of this type of developments description. • It is of a minor nature and may be carried out without Council consent. Exempt development includes certain: • television aerials, air conditioning units and barbeques • retaining walls and fences • awnings, pergolas, cabanas, greenhouses, gazebos, garden sheds and cubby houses • driveways, pathways, patios and other paved or sealed areas at ground level • non-structural/non-load-bearing internal alterations and building renovations * repairs and maintenance work • re-cladding of walls/roofs and skylights * disabled access facilities • home activities * special events * water tanks. Cert IV - M. S. Martin January 2012

22. Complying Developments Some of the types of development listed as complying development include: • alterations and/or additions to dwelling houses • internal alterations to commercial buildings • carports and garages • shade structures, conservatories, awnings and pergolas • new dwelling houses (single storey only) • fences and retaining walls • fire safety upgrading works * hoardings • shop or office fit outs, shopfronts and awnings * home activities • portable classrooms * certain types of subdivision • swimming pools and spas * changes of certain commercial uses.

23. Assessment Process Step by step Cert IV - M. S. Martin January 2012

24. Pre Assessment Team • 1. Pre-Assessment Team   The Pre-Assessment Team will undertake • a preliminary assessment of the application to • ensure that the information provided    complies with Council's policies and they will also check the quality of the plans. If there are any noticeable problems the    applicant will be notified, usually in writing, within 7 days. This may delay the processing of the application if there is insufficient    information provided to commence the assessment. •    The team determines the officer who will assess the application and any referrals required to specialist council officers such as    landscape architect, development engineer. Cert IV - M. S. Martin January 2012

25. Notifications & Submissions • 2. Notification and Submissions   The application may require • notification, in accordance with (eg) City of Ryde Development Control Plan 2006 •    During the notification period members of the community are entitled to make submissions about the proposed development.     Also copies of the application including plans are available for viewing at the Customer Service Centre. Cert IV - M. S. Martin January 2012

26. Assessing Officer • 3. Assessing Officer    When the notification period has finished • the assessing officer will commence assessing the application. •    The application may be determined under delegated authority or dependant on the nature of the application, the submissions    received and/or variations to Council's codes the application may be forwarded to the Council for determination Cert IV - M. S. Martin January 2012

27. Determination • 4. Determination   The applicant and all those who made submissions will be informed of the determination. Applicants who are not satisfied with    the determination may seek a review of the determination and/or appeal to the Land and Environment Court •    If consent is granted applicants would then need to apply for and receive a construction certificate before work can commence. Cert IV - M. S. Martin January 2012

28. Construction Certificate • Used to be called Building Certificate • Effect has been scaled back to DA Phase • Engineering / Hydraulic etcDrgs • Notify Prescribed Certifying Authority (PCA) • Update drawings to take account of DA conditions • Pay fees such as Long Service Levy, • Notify Builder • Proof of Home Owners Warranty Cert IV - M. S. Martin January 2012

29. Cert IV - M. S. Martin January 2012

30. Principle Certifying Authority (PCA) • Is appointed by the applicant • Ensures that building is built as per the Development Approval and Construction Certificate • Receives Certificates such as waterproofing, fire rating, • Issues Occupation Certificate • Does not have to be council Cert IV - M. S. Martin January 2012

31. References • Competency reference text for ‘Apply Legal Requirements & Manage Small Business Finances’ • Web sites as listed below: • http://www.google.com.au/imghp?hl=en&tab=wi • http://www.fairtrading.nsw.gov.au/default.html • http://www.austlii.com/ • http://www.michaelpage.com.au/ContentArticle/page/7282/title/Aus---Tax.html • http://www.industrialrelations.nsw.gov.au/Industries/Home_building_industry.html Cert IV - M. S. Martin January 2012