apply legal requirements & manage small business finances (also incorporates some contracts)

Cert IV - M. S. Martin March 2012

Apply Legal Requirements & Manage Small Business Finances

(Also incorporates some contracts)

Lesson 13 Some slides courtesy of M. Naidofski

Cert IV - M. S. Martin January 2012

Todays Lesson

1. Payroll Systems, GST and Superanuation Requirements

Reference:Chapter 5 – taxation and SuperPayroll & GST – additional notes

Cert IV - M. S. Martin January 2012

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

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

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

Basic Building Office

Cert IV - M. S. Martin January 2012

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

Payroll Systems

• Manual systems – For most small businesses (eg. with less than 10

employees)• Computerised payroll systems

Cert IV - M. S. Martin January 2012

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

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

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

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

Methods of Wage Payments

• cash • cheque • electronic funds transfer. (EFT)

Cert IV - M. S. Martin - May 2012

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 January 2012

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

Review Development Application Process

Your on-line assignment would be your reference

Cert IV - M. S. Martin January 2012

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

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

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

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

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.

Complying DevelopmentsSome 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.

Cert IV - M. S. Martin January 2012

Assessment Process

Step by step

Cert IV - M. S. Martin January 2012

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

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

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

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

Construction Certificate

• Used to be called Building Certificate

• Effect has been scaled back to DA Phase– Engineering / Hydraulic etc Drgs– 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

Cert IV - M. S. Martin January 2012

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

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/pag

e/7282/title/Aus---Tax.html

• http://www.industrialrelations.nsw.gov.au/Industries/Home_building_industry.html