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Building and Construction BSBSMB401 Establish legal and risk management requirements of small business Learner Materials and Assessment Tasks Table of Contents About BSBSMB401 Establish legal

Building and Construction
BSBSMB401 Establish legal and risk management requirements of small business
Learner Materials and Assessment Tasks Table of Contents About BSBSMB401 Establish legal and risk management requirements of small business. 3 Legal and Risk Management Business Requirements. 7 Structures, names, licences and permits. 7 Business names and numbers. 19 Legislation. 36 Manufacturer\'s product liability. 45 Australian Consumer Law and Sales. 45 Consumer Credit Code. 56 Law of Tort 57 Law of Contracts. 59 Employment 60 Anti-discrimination and equal opportunity. 65 Superannuation. 66 Occupational health and safety (OHS) 73 Occupational Health and Safety in Victoria. 77 Workers compensation. 80 Risk protection. 80 Record keeping. 89 Taxation. 90 ASSESSMENT. 92 Assessment Outcome record. 113 About BSBSMB401 Establish legal and risk management requirements of small business Application This unit describes the skills and knowledge required to assess and prioritise risks and identify and comply with all regulations affecting the business. It applies to individuals operating a small business or setting up a department within a larger organisation, who are skilled at communicating and interpreting legislation and regulations. No licensing, legislative or certification requirements apply to this unit at the time of publication. Unit Sector Management and Leadership Small and Micro Business Elements and Performance Criteria
ELEMENT PERFORMANCE CRITERIA
Elements describe the essential outcomes. Performance criteria describe the performance needed to demonstrate achievement of the element.
1. Identify and implement business legal requirements 1.1 Identify and research possible options for the business legal structure using appropriate sources 1.2 Determine legislation and regulatory requirements affecting operations of the business under its chosen structure 1.3 Develop and implement procedures to ensure full compliance with relevant legislation and regulatory requirements
2. Comply with legislation, codes and regulatory requirements 2.1 Establish systems to ensure legal rights and responsibilities of the business are identified and the business is adequately protected, specifically in relation to occupational health and safety (OHS), business registration and environmental requirements 2.2 Identify taxation principles and requirements relevant to the business, and follow procedures to ensure compliance 2.3 Identify and carefully maintain legal documents and maintain and update relevant records to ensure their ongoing security and accessibility 2.4 Monitor provision of products and services of the business to protect legal rights and to comply with legal responsibilities 2.5 Conduct investigations to identify areas of non-compliance with legal and regulatory requirements, and take corrective action where necessary
3. Negotiate and arrange contracts 3.1 Seek legal advice on contractual rights and obligations, if required, to clarify business liabilities 3.2 Investigate and assess potential products/services to determine procurement rights and ensure protection of business interests where applicable 3.3 Negotiate and secure contractual procurement rights for goods and services including contracts with relevant people, as required, in accordance with the business plan 3.4 Identify insurance requirements and acquire adequate cover 3.5 Identify options for leasing/ownership of business premises and complete contractual arrangements in accordance with the business plan
Foundation Skills This section describes language, literacy, numeracy and employment skills incorporated in the performance criteria that are required for competent performance.
Skill Performance Criteria Description
Reading 1.1-1.3, 2.1-2.4, 3.2-3.5
  • Identifies, analyses and evaluates a range of complex text to determine legislative, regulatory and related business requirements
Writing 1.3, 2.1, 2.3, 2.5, 3.1, 3.3, 3.5
  • Prepares written reports and workplace documentation that communicate complex information clearly and effectively
Oral Communication 2.5, 3.1, 3.3
  • Uses specific and relevant language to clearly articulate legal issues, and uses questioning and listening techniques to clarify solutions
  • Participates in verbal negotiations using language suitable to audience
Numeracy 2.2, 2.5, 3.3, 3.4
  • Reviews, analyses, compares and contrasts numerical data which may be embedded in documents
  • Calculates business insurance costs and compares costing options
Navigate the world of work 1.2, 1.3, 2.1
  • Monitors adherence to organisational policies and legislative responsibilities and considers own role in terms of its contribution to broader goals of work environment
Interact with others 3.1, 3.3
  • Plays a lead role in situations requiring effective collaboration, demonstrating high-level influencing skills, focusing and shaping awareness, and engaging and motivating others
Get the work done 1.1-1.3, 2.1
  • Plans, organises and implements tasks required to determine legal and risk management requirements
  • Implements actions as per plan, making adjustments if necessary and addressing unexpected issues
  • Understands importance of secure information in relation to own work and takes personal responsibility for identifying and managing risk factors
  • Makes a range of critical and non-critical decisions in complex situations, taking a range of factors into account
Unit Mapping Information
Code and title current version Code and title previous version Comments Equivalence status
BSBSMB401 Establish legal and risk management requirements of small business BSBSMB401A Establish legal and risk management requirements of small business Updated to meet Standards for Training Packages Equivalent unit
Links Companion volumes available from the IBSA website: http://www.ibsa.org.au/companion_volumes - http://www.ibsa.org.au/companion_volumes Assessment requirements Performance Evidence Evidence of the ability to:
  • demonstrate a systematic approach to identifying, managing and meeting legal and business requirements, specifically in regard to OHS, business registration and environmental requirements
  • ensure compliance, by:
  • following taxation principles
  • updating and maintaining legal documents
  • investigating areas of non-compliance
  • monitoring provision of products and services
  • taking corrective action where necessary
  • negotiate and arrange contracts, including:
  • seeking legal advice
  • investigating procurement rights
  • following the business plan
  • identifying insurance requirements
  • identifying options of leasing/ownership of business premises.
Note: If a specific volume or frequency is not stated, then evidence must be provided at least once. Knowledge Evidence To complete the unit requirements safely and effectively, the individual must:
  • outline business registration and licensing requirements
  • identify commonwealth, state/territory and local government legislative requirements relating to business operation
  • explain creation and termination of relevant legal contracts
  • summarise relevant cultural differences and legal implications
  • describe legal rights and obligations of alternative ownership structures
  • outline necessary record keeping to meet minimum legal and taxation requirements
  • summarise relevant consumer legislation and industry codes of practice
  • explain relevant insurance requirements and products.
Legal and Risk Management Business Requirements [1] Structures, names, licences and permits[2] When operating a small business you will need to decide on your business structure. This will have legal implications for your business. The kind of business you operate will also determine the licences you need to have. When deciding what type of ownership best suits you and your business, you should research these areas thoroughly. There are legal issues pertaining to each ownership structure that you need to be aware of. It is advisable to discuss this decision with your lawyer. Each structure has its own advantages, disadvantages and risks, and the set up costs of each can vary considerably. States vary in the way they approach business structures. The impact Business structures impact on who can make important decisions, tax advantages and disadvantages, how profits and losses are shared, legal obligations and costs. Use our step-by-step guide to help you decide. You can change your structure as your business changes so pick what\'s best for you now. The differences at a glance
SoleTrader Partnership Company
Simple business structure Yes No No
Can be owned & run by one person? Yes No Yes
High initial set-up fees? No ($33) Yes ($359.90) Yes (Limited share capital - $444)
Can hire staff? Yes Yes Yes
Tax benefits? Only when profits are low. Enjoys tax-free threshold Yes, especially if partners are in the same family Yes, but does not enjoy tax-free threshold
Relatively easy to attract capital? No No Yes, because of limited liability
Relatively easy to operate globally? No No Yes
Pay your own super? Yes Yes Yes
Collective or personal responsibility for debts/losses Personal Collective Personal if personal guarantee undertaken
Relatively easy to close down? Yes No No
Sole trader A sole trader business structure is the simplest and cheapest structure for a business owned by one person. The owner may manage the business on their own or they may employ staff to perform this duty or to work in their business. The sole trader takes all the profits for the business but must also bear any losses. There is no legal separation between private and business assets. This means that a sole trader whose business can no longer afford to pay its debts can be forced to pay these debts from their private assets (eg they may have to sell their home). The business name will need to be registered if a trading name is used that is not the owners own name.
Sole trader explained A sole trader is a simple business structure and gives the owner all the decision making power. They can also hire people if they want to. If you are unsure about what\'s right for your business, our step by step guide can give you a simple & quick assessment of which structure is more suitable for your business. You can change your business structure to suit your circumstances, when the business grows or changes direction. Key factors to consider

Business name

You don\'t have to register your business name if you use your own personal name. Registering your business name does not give your ownership or legal protection of that name. Trade marking will legally protect your name and stops others from trading with it.

Tax registrations

Tax File Number (TFN) A sole trader can trade on their individual TFN. Australian Business Number (ABN) An ABN is needed if you want to avoid having amounts withheld from payments to you (your business clients must withhold46.5% of any payments they make to you if you don\'t quote an ABN). An ABN is compulsory if your business collects GST. When you apply for an ABN with the Australian Business Register (ABR), you will be asked to indicate if you want to register under the sole trader business structure. Sole traders who are working as an employee or in connection with earning payment as a company director, office holder or under a labour hire arrangement, are not entitled to an ABN. Goods and Services Tax (GST) You need to register for GST if your expected or current turnover is $75,000 or over.

Superannuation

As a sole trader, you are responsible for your own super arrangements. You may also be able to claim a deduction for any personal super contributions you make. Before you can claim a deduction, you have to notify the fund of your intention to claim the amount as a deduction and wait until the fund confirms that you can claim the amount as a deduction. Once you receive this confirmation, you can claim the super as a personal deduction on your tax return.

Employing people

If you employ people, you will have responsibilities, including employee payroll tax and PAYG (including reporting and paying tax on fringe benefits) and superannuation payments for any eligible employees.

Insurance

A sole trader owns all the business assets and is responsible for the liabilities of the business. Liability is unlimited and includes all personal assets, including any assets the owner shares with another person (such as a jointly-owned home or money in a joint bank account). Register as a sole trader Once you have looked at the pros and cons, to register as a sole trader you will have to:
  1. decide whether you want to register a business name - this is only needed if you are using a name other than your personal name
  2. check your proposed business name doesn\'t infringe on existing trademarks
  3. register your business name
  4. apply for the relevant licences and registrations for your business type e.g. tax file number or ABN
  5. find the right insurance for your business.
Partnership Partnerships can be formed with up to 20 members. In a partnership, partners share profits (and any losses) in an agreed percentage, which usually corresponds to their original investment. Each partner may participate in the management of the business and all partners are liable for all decisions. Partners are liable jointly and severally (ie separately) for total partnership debt. Due to this, it is important to know the prospective partners backgrounds and personalities before entering into a formal partnership agreement. Partnerships can be formed verbally, but it is preferable to have a written partnership agreement drawn up by a lawyer, addressing management and financial issues and dissolution of the business. Most partnerships in Australia tend to be family partnerships. Legislation that applies to partnerships varies throughout Australia.
Partnership explained A partnership is formed when two or more people (up to 20)go into business together. Partnerships can either be general or limited.

General partnership

A general partnership is one where all partners are equally responsible for the management of the business, and each has unlimited liability for the debts and obligations it may incur. A family partnership is where two or more members are related to one another.

Limited partnership

A limited partnership is one where the liability of one or more partners for the debts and obligations of the business is limited. A limited partnership consists of one or more general partners (whose liability is unlimited) and one or more limited partners (whose liability is limited in proportion to their investment). There is no maximum number of limited partners. An incorporated limited partnership is a special type of limited partnership, primarily used by businesses engaged in high-risk venture capital projects. You should seek expert legal advice if considering forming this type of partnership. Limited and incorporated limited partnerships must be registered with Consumer Affairs Victoria (CAV). Partnerships are governed by the Partnership Act 1958. If you are unsure about what\'s right for your business, our step by step guide can give you a simple & quick assessment of which structure is more suitable for your business. You can change your business structure to suit your circumstances,when the business grows or changes direction. Key factors to consider

Business name

If you areoperating under your own personal names there is no need to registerbut you mustregister abusiness name if you have one. For more details and examples read more in Register a business name.

Tax registrations

Tax File Number (TFN) A partnership has its own Tax File Number (TFN), and usually an Australian Business Number (ABN) and lodges its own, separate tax return. However, once the ATO assesses this, the partnerships profits are divided among the partners as set out in the partnership agreement. Each partner then adds their share of the profit (or loss) to their personal income tax for assessment by the ATO. Goods and Services Tax (GST) If operating as a business enterprise, the partnership registers to collect GST when annual turnover passes $75,000 (payable monthly, quarterly or annually). The ATO\'s \'personal services income\' rules may apply if you are a consultant or contractor in a partnership.

Superannuation

As a member of a partnership, you are responsible for your own super arrangements because you are not an employee of the partnership. You may also be able to claim separately a deduction for personal super contributions you make.

Employing people

If you employ people, you will have responsibilities, including employee payroll tax and PAYG (including reporting and paying tax on fringe benefits) and superannuation payments for any eligible employees. ATO\'s Partnership Tax Return information will help when filing your returns. Register as a partnership Once you have looked at the pros and cons, to register as a partnership you will have to:
  1. determine the number of partners (if any) - both general and limited (if any). Agree amongst the partners on key issues such as limits of liability in proportion to their capital investment and the level of authority each partner holds in making binding agreements on behalf of the partnership
  2. draw up a Partnership Agreement highlighting key aspects such as the roles, authority and liabilities of each partner, and distribution of profits and assets, Your solicitor will be able to draw up an Agreement that will meet your specific needs.
  3. if you and your partners are not trading under your personal names, check that your proposed business name doesn\'t infringe on existing trademarks .
  4. register your business name
  5. if setting up a limited partnership register your partnership with Consumer Affairs Victoria
  6. apply for the relevant licences and registrations
  7. find the right insurance for your business.
Limited partnerships Limited partners are similar to silent partners. They can offer additional capital but have only limited liability. Management and control remain in the hands of the partners with unlimited liability for the debts and obligations of the business. This complex partnership should be discussed with a lawyer. Corporations or companies A corporation or company is a separate legal entity and has limited liability. Personal assets of the owners are separate from those of the company. A company can be sued, own property, borrow money and have its own bank account and is held responsible for any debts owed. The owners of the company or corporation are the shareholders. Management is entrusted to directors, who in small business are often the shareholders. Financiers such as banks may ask the directors (owners) to provide security or guarantees for the company. There is a cost involved in forming a company, which can make it an expensive option unless you are intending to operate your business for several years.

Differences between business name, company name and trading name

A business name is simply a name or title under which a person or entity conducts a business. You must register for a business name unless you are trading under your own name. A business name is the same as a trading name. Registering a business name does not give you exclusive rights to use it. A company is an independent legal entity that is able to do business in its own right. A company name gives you exclusive rights to that name in Australia. Company explained A company has members (shareholders) who own the company and directors who run it. However, if you\'re an independent contractor you can set up a \'one person company\' with a sole director and member. Companies can also be listed as public companies, meaning the public can buy shares to invest in the company. It is more expensive to register so make sure it\'s really the best structure for your needs. If you are unsure if this is the right business structure for your business, use our guide. Key factors to consider

Legal obligations with ASIC

There are strict standards(under the Corporations Act 2001), which include reporting tomembers and ASIC. Legal liability of a company Companies have limited liability, but directors can be personally liable under the Corporations Act 2001 if found to be fraudulent, negligent or reckless. Due to limited liability, a company structure may be advantageous to a high-risk business. However, major creditors often insist directorspersonally guarantee the company\'s liabilities. Personal liability of directors and employees can also arise if they commit an offence under the Corporations Act 2001, or are found to have negligently performed their duties. A company can sue and be sued in its own right. Proprietary and limited companies A proprietary company must have no more than 50 non-employee shareholders and be either limited by shares or an unlimited company that has a share capital A company limited by shares, limits the liability of shareholders to the value of their shares. This structure is suitable for most trading businesses. A company limited by guarantee is most often used by non-trading organisations, for example, sporting clubs. \'Proprietary\' or \'Pty\' must be included in a company name to indicate legal status as a company. \'Limited\' or \'Ltd\' also needs to be included in a company name if it\'s a limited liability company. ASIC has more information on your legal obligations as a company, including rules governing the selling of shares, the keeping of company and financial records and registers and preparing.

Tax File Number (TFN)

A company has its own tax return and business Tax File Number (TFN).

ABN & ACN - what\'s the difference?

A company\'s ACN is a unique, nine-digit number issued by ASIC that offers identification while transacting business. It is a legal requirement for the ACN to be displayed on a range of documents, including invoices, official company notices, cheques and business letterheads. If your company already has an ABN, you can use the ABN in place of the ACN, provided that your ABN includes your nine-digit ACN, and it is used in the same way as you would use your ACN (i.e. appearing on documents, invoices, receipts etc). ASIC\'s website gives further information on where the ACN should be displayed.

Goods and Services Tax (GST)

When annual turnover passes $75,000, a company must register with the Tax Office to collect GST as well as company tax. A one person company can pay a salary to its owner. The Tax Office\'s \'personal services income\' rules may apply if you are a consultant or contractor with your own company. The details of such an arrangement should be discussed with the Tax Office. A company is subject to taxation in its own right, paid quarterly to the ATO. Members receive a credit towards the tax on dividends equal to the relevant amount of tax paid by the company. A company pays income tax on its profits, this general rate is 30%. For details on company tax returns visit the ATO website.

Superannuation

If the company has any eligible workers, it must pay a minimum of 9% of their ordinary time earnings as super guarantee contributions on their behalf. This includes you, if you are a director of the company, and any other company directors.

Pay As You Go (PAYG) witholding, Fringe Benefits Tax (FBT)

If a company employs people, the company will have employer obligations, such as employee payroll tax and PAYG (including reporting and paying tax on fringe benefits) and paying superannuation payments for any eligible employees. Register as a company After considering the pros and cons, to register as a company, you will need to:
  1. do a background check on your director and secretary to make sure they\'re legally able to perform their duties. More information on the suitability of company office holders can be found in the Australian Securities & Investments Commission (ASIC) Starting a Company section
  2. ensure all members of the company understand their roles, responsibilities and legal obligations towards ASIC
  3. decide if you want to give your company a name
  4. check that your proposed business name doesn\'t infringe on existing trademarks
  5. register your business name.
  6. apply for the relevant licences and registrations
  7. find the right insurance for your business.
Trusts Trust funds are established within a business structure mainly to minimise taxation. One person (the trustee) is appointed to act on behalf of the trust. The trustee manages the property, capital and income on behalf of the beneficiaries. A trust fund is not a separate legal entity. The trust deed formalising the administration of the trust should be drawn up by a lawyer. Seek professional advice from both your accountant and lawyer before entering into this structure.
Trust explained A trading trust is usually an entity thatholds property (capital)for certain beneficiaries. This type of business structure is formedwhen a gift or settlement is made to a trustee (a person or a company) on behalf ofa yet-to-be-formed trust. A solicitor then draws up a Trust Deed setting out the trust\'s powers and formalising its administration. While there may be ease of succession in a trust business structure, trading trusts are a complex and expensive business structure and are subject to higher compliance costs. Key factors to consider

Tax registrations

Tax File Number (TFN) A trust must have its own TFN to use when lodging its annual tax return - the trustee needs to apply for it on the ABN application form. Australian Business Number (ABN) If the trust is carrying on an enterprise in Australia, the trustee must register for an ABN for the trust. Goods and Services Tax (GST) If the trust is carrying on an enterprise, and it\'s turnover is over $75,000 or more, it must register for GST. For non-profit organisations, the registration threshold is $150,000.

Employing people

If a trust employs people, the trustee will have responsibilities, including employee payroll tax and PAYG (including reporting and paying tax on fringe benefits) and superannuation payments for any eligible employees.

Distribution of income, taxation

Rather than shareholders,atrust has beneficiaries who are entitled to distributions of capital and/or income. These distributions are controlled by the trustee andform part of a beneficiary\'s personal income,subject to income tax and provisional tax. The ATO has more information on how a trust can file its tax returns.

Winding up a trust

A trust can be wound up and the assets distributed, but only where there is consent of the beneficiaries. Where beneficiaries are specified as a class (which is usual), or arechildren, it can be difficult to obtain consent. If you are considering using this structure, you will need to carefully consider the relevance of any tax savings and the potential difficulties involved in winding up. Register as a trust After considering the pros and cons, if you decide that starting a trust is right for you, you will need to:
  1. decide if you want to register your business name - this is only needed if you are using a name other than your personal name
  2. check that your proposed business name doesn\'t infringe on existing trademarks
  3. register a business name
  4. get your solicitor to draw up a Trust Deed
  5. apply for the relevant licences and registrations
Incorporations for professionals Professionals such as doctors, pharmacists, lawyers and accountants are prohibited by law and by their professional bodies from forming a company, due to their professional liability. This prevents them from hiding behind the corporate body. Some professionals may wish to incorporate part of their business, such as administration. This type of structure is quite complex, though it may result in tax benefits. A lawyer would manage the incorporation of a company.
Incorporated association explained An incorporated association is a registered legal entity usually established for recreational, cultural or charitable purposes. It must have at least five members and all profits are put back into the association\'s activities. This structure offers many benefits to suitable organisations. Incorporation makes an association a legal entity and gives it a legal structure independent of its individual members, making it easier for the organisation to enter into contracts. Incorporation allows your association to:
  • continue regardless of changes to membership
  • accept gifts, bequests and grants
  • buy and sell property
  • enter into enforceable contracts
  • sue or be sued, and
  • invest and borrow money.
An incorporated association can be established for any legal purpose. Registration is inexpensive and it\'s relatively easy to establish and operate - the profits are also not subject to tax. Consumer Affairs Victoria, which regulates all incorporated associations. However, profits cannot be distributed to members - they must be applied to the objectives of the association. There is an annual financial reporting requirement to both the members and to Consumer Affairs Victoria which attracts a fee. Key factors to consider Consider the following if you decide to register as an incorporated association:

Membership

Incorporated associations require an approved constitution with rules covering such matters as qualifications for membership, quorums for meetings and provisions for elections. Incorporation provides benefits for members and officers, including:
  • protection against personal responsibility for any debts or liabilities incurred by the association, and
  • limiting of personal liability to outstanding fees.
If all your members are Aboriginal you may like to consider an Incorporated Aboriginal Corporation.

Non-profit

Incorporated associations are non-profit organisations. Any profits made should be put back into the association and not provided as personal gain for its members.

Liability

Incorporated associations can own and fully control property. If the organisation is sued, the liability of club members for debts or damage is limited. Members or office-bearers of unincorporated associations on the other hand may be sued or held personally liable for the debts of the organisation.

Bequests, gifts and funding

An incorporated association can invest a bequest, or gift, given through a will. It can also borrow money and operate a bank account in its own name. It is sometimes easier for an incorporated association to obtain government funding due to the association\'s stable structure.

Online transactions

Consumer Affairs Victoria allows you to conduct many of the transactions related to incorporated associations online e.g. purchase an incorporated association extract using your credit card.

Legislation

Incorporated associations are subject to the Associations Incorporation Act 1981. Register as an incorporated association Hold a meeting amongst members to vote on whether your organisation wants to incorporate. A majority of votes must be obtained to authorise a person, who is at least 18 years old and lives in Australia to incorporate the association and approve proposed rules that comply with the Associations Incorporation Reform Act 2012 or approve the adoption of model rules. Ensure that the proposed entity\'s name is not similar to CAV\'s Victorian names register, or identical to any listed in the ASIC Organisations and business names register
Co-operative A co-operative is a body with legal status. It is formed and controlled by its members for the common interests of its members eg for buying in bulk to reduce costs. Co-operative societies are incorporated under special legislation known as the Co-operatives Act. You should seek legal advice when entering into this form of structure. Non-profit businesses Non-profit businesses are businesses that do not operate for the profit or gain of their individual members. This includes friendly society dispensaries and organisations incorporated as associations (eg the Scout Association or the Salvation Army). These structures may trade, employ staff and carry out other types of business activities.
Case study Yanni Kouros and his wife Mary have five children and they own a small family business. They have had a very good year financially and have purchased a few investment properties. They also have some spare cash. Yanni is looking to minimise his tax outlay. Yanni and Mary make an appointment with their lawyer. After discussions with their lawyer and accountant they have decided the best way to minimise their taxation is to form a trust fund. Yanni acts as the trustee and their children are the beneficiaries. Case study Bob, Joel, Lucy, Xavier, Indie and Hans all own and run shoe stores. They decide to get together to form a co-operative society. They use the co-operative to purchase a variety of footwear and accessories in bulk and at cheaper prices than buying items in small units. The co-operative is then able to sell the stock to their own members (the retailers). The profits generated from the co-operative are then divided between the members.
Business names and numbers All small businesses must register if they are trading under a specific business name. This applies to all firms, including sole traders, partnerships or companies/corporations. Registration of a business name is relatively cheap and generally applies for a three year period with renewals possible after that. When to register a business name You are required to register a business name when you are using a trading name that is not the same as your actual name, eg John\'s Shoe Store. To legally own your trading name you must register and stylise your name through the Trade Mark Office. Business names Each state has its own Act regarding business names. You can register at the Office of Fair Trading in your state. If you plan to expand your business interstate, you will need to register the name in that state. A business name does not mean your business is a registered company. If structuring as a company you must register the company. A business name cannot be sued, however the proprietor behind the name can be sued. Registering your business name is designed only to provide public information on the ownership of the registered business. Registering your business name does not allow any legal entitlement on your business name. You must register and stylise your business name as a trademark for it to become a legal entitlement. Trading under your own name You do not have to register your name with the Office of Fair Trading. For example if you wish to trade under your own name \'Angela Jones\' or \'A. Jones\' you would not have to register. If you wanted to trade under \'Angela\'s Jewellery Boutique\' you are required to register. A Corporation can trade under its registered Company name (Angela Jones Pty Ltd) or can trade under another name (Angela\'s Jewellery Boutique) only if it is registered. Should you require further information seek advice through the Office of Fair Trading.
Research your name

Choose an effective business name

Your business name is a major element of your identity and image. Your business name should:
  • be memorable
  • be easy to pronounce and spell
  • be original and not similar to existing business names, company names or trademarks
  • be appropriate, professional and not offensive
  • be short
  • be descriptive and functional (e.g.Marketing Results) or new and quirky (e.g. Google).

Personal names

You can choose to use your personal name for your business. If you are using your personal name (e.g. Jane Smith) as a business name, there\'s no need to register it. However, if your want to call your business \'Jane Smith & Co\', this would need to be registered, as \'& Co\' is not part of your personal name. Register

Check if the name you want to register is available

Search both the business names register, and company and other registers on the ASIC Connect website to confirm your name\'s availability. Check business names register https://connectonline.asic.gov.au/RegistrySearch/faces/landing/bn/SearchBnRegisters.jspx?_adf.ctrl-state=ttbg65xzy_49 Check company and other registers https://connectonline.asic.gov.au/RegistrySearch/faces/landing/SearchRegisters.jspx?_adf.ctrl-state=ttbg65xzy_58 If you are planning on having a website you should also check MyWebname http://www.mywebname.com.au/ tosee ifyourbusiness namecan be registered as awebsite (domain) name. As registering a business name does not automatically give you rights to the trademark, you should also search the Australian Trade Marks Online Search System (ATMOSS) http://pericles.ipaustralia.gov.au/atmoss/falcon.application_start to confirm that your business name is not already registered as a trade mark.

Apply to register your business name

Before registering your business name, you need to have an Australian Business Number (ABN). If you don\'t have one, you need to apply for it through the Australian Business Register. Apply for an ABN https://abr.gov.au/For-Business,-Super-funds---Charities/Applying-for-an-ABN/Apply-for-an-ABN/ Set up your account with ASIC to register your business name on the ASIC Connect homepage. Follow through on the steps to register your business name. Register your business name https://www.asic.gov.au/asic/ASIC.NSF/byHeadline/Registering%20a%20business%20name Protect your name Make sure you protect your business name or idea, including trademarking - registering your business name does not give you full rights over the name. http://www.business.vic.gov.au/setting-up-a-business/how-to-start-a-business/protect-your-business-name-or-idea Renewing an expired business name? You will need to apply to renew your business name with ASIC. Renew your business name http://www.asic.gov.au/for-business/renewing-and-maintaining-your-business-name/renew-your-business-name/ Cancelling a business name? You will need to apply to cancel your business name with ASIC. https://www.asic.gov.au/asic/ASIC.NSF/byHeadline/Cancel%20a%20business%20name
Australian Business Numbers (ABNs)[3] All businesses should register for an Australian Business Number and some must register for the Goods and Services Tax. There are no legal issues surrounding the registering of an ABN. However it is not possible to register for GST without having ABN registration. There are also certain taxation implications if you have not registered for an ABN. Check with the Australian Taxation Office in your state. You can register your ABN online through the \'Business entry point\' or obtain a registration form from the Australian Taxation Office.
An Australian Business Number (ABN)is a unique 11 digit number that identifies your business to the government and community. An ABN doesn\'t replace your tax file number, but it is used for various tax and other business purposes. Do I need an ABN? Not everyone needs an ABN. To get one you need to be carrying on an enterprise. If you apply for an ABN and you\'re not entitled, your application may be refused. You\'ll be sent a letter explaining why. With an ABN you can:
  • confirm your business identity to others when ordering and invoicing
  • avoid Pay as You Go (PAYG) tax on payments you receive
  • claim Goods and Services Tax (GST) credits
  • claim energy grants credits
  • obtain an Australian domain name.
For more informationabout yourentitlement to an ABN visit the Australian Business Register (ABR)website. https://abr.gov.au/For-Business%2c-Super-funds---Charities/Applying-for-an-ABN/ABN-entitlement/ How do I apply for an ABN? Applyingfor an ABN is free. Toapply for an ABN online,visit the Australian Business Register website. https://abr.gov.au/ Register an ABN https://abr.gov.au/for-business%2c-super-funds---charities/applying-for-an-abn/apply-for-an-abn/ Do I need to register an ABN and a business name separately? You can register for a business name at the same time as your ABN application. If you choose not to register for both at the same time you will need to go to the Australian Securities and Investment Commission (ASIC) to register your business name. You can do this after you get your ABN. Business names are administered by the Australian Securities and Investment Commission (ASIC). As your registered business namemay sometimes bereferred to asan Australian business name or trading name, it\'s important to understand the difference betweenyour Australian Business Number (ABN)andyour registered business name. I want to register a company. Do I apply for an Australian Company Number (ACN) or an ABN first? You will need to register your ACN first, then your ABN. For information on applying for an ACN and to download an application form, visit How to register a company on the Australian Securities and Investments Commission (ASIC)website. http://www.asic.gov.au/asic/asic.nsf/byheadline/starting%20a%20company%20or%20business How long does it take to get an ABN? If you provide all the required information when applying online, you\'ll receive an online notification of your ABN immediately after completing your application. If your identity cannot be confirmed, or more information is needed, the ABR will review your application within 20 business days. They may contact you if they need more information.
Licences and permits There are certain licences and permits for different types of business operations and you must be aware of your requirements before starting your business. Business licence information (see the \'References\' section) assists you with a complete guide covering all aspects relating to your business\' licences, permits, registrations, Codes of Practice and other relevant legislative references. It is your responsibility to know what is required of your business and to comply accordingly. Some of these requirements are shown below. Professional registration Various tradespeople (eg plumbers, electricians) as well as professionals (eg engineers, pharmacists, doctors and other health practitioners) require registration in order to operate. Plumbing licensing and registrations[4] Plumbing work is defined by eight main classes and six specialised classes. A person must be registered or licensed with the VBA to legally carry out any work within these classes.
Main Classes Drainage Work Drainage work is the construction, installation, replacement, repair, alteration, maintenance, testing or commissioning of any part of a below-ground sanitary drainage system or a below-ground stormwater drainage system. Any incidental or associated design work is also included. Drainage work does not include:
  • subsoil drains for the sole purpose of subsoil water collection; or
  • stormwater pits, channels that are grated or below-ground storage or retention tanks.
Fire Protection Work Fire protection work includes the construction, installation, replacement, repair, alteration, maintenance, testing or commissioning of any part of a water service used for firefighting, including the following equipment:
  • a fire hydrant or hose reel
  • a residential or domestic fire sprinkler system
  • a commercial or industrial fire sprinkler system
  • a fire system pump set, other than the commissioning of a fire system pump set.
Fire protection work includes any incidental or associated design work. Gasfitting Work Gasfitting work is the construction, installation, replacement, repair, alteration, maintenance, testing or commissioning of any pipe, appliance, flue, fitting, apparatus, control or other item that is involved with the supply or use of gas, including:
  • any gas appliance in, or on, a caravan or a vessel
  • any roof sheeting and flashing that is necessary for the purpose of any work described above.
Gasfitting work also includes any incidental or associated design work. It does not include:
  • any specialised gasfitting work
  • any cleaning, painting or preparation work in relation to that does not involve their connection, disconnection or alteration
  • any cleaning, painting or preparation work, other than that related to the connection, disconnection or alteration of gas pipes or gas pipe joints
  • the connection or disconnection of a gas storage container for the purpose of filling or refilling the container
  • any work in relation to an item that is involved with the supply or use of gas by the engine of a vehicle or vessel.
Irrigation (non-agricultural) Work Irrigation (non-agricultural) work is the construction, installation, replacement, repair, alteration, maintenance, testing or commissioning of any part of an irrigation system on a property, including any incidental or associated design work. It does not include irrigation systems used for the purposes of agriculture. Mechanical Services Work Mechanical services work is the construction, installation, replacement, repair, alteration, maintenance, testing or commissioning of a mechanical heating, cooling or ventilation system in a building and includes:
  • any valve, regulator, register, pipe, duct, flue, tank, heating or cooling pipe or surface, boiler, burner, solid fuel heater, coil or other item that is used in the system;
  • any single head split system;
  • any water pipe, valve, pump, automated dosing device or automated bleeding device, or any other mechanical component, that affects a cooling tower\'s cooling water flow rate or wastewater disposal;
  • any fixed component used in a reticulation system for the supply or removal of medical gases from the gas source to a wall outlet;
  • any roof sheeting and flashing that is necessary for the purpose of any work described above.
Mechanical services work includes any incidental or associated design work. It does not include:
  • gasfitting work
  • any work on a cooling tower drift eliminator;
  • any treatment of cooling water;
  • the connection or disconnection of a system referred to above from a water supply, other than at an isolating valve adjacent to a mechanical component of that system.
Roofing (stormwater) work is the construction, installation, replacement, repair, alteration, maintenance, testing or commissioning of any roof covering or roof flashing, or any part of a roof drainage system, involved in the collection or disposal of stormwater. This includes the connection of any stormwater piping to:
  • a below-ground stormwater drain
  • an on-site retention or storage tank.
Roofing (stormwater) Work Roofing (stormwater) work includes any incidental or associated design work. It does not include:
  • any cleaning, painting or preparation work, other than that related to the connection, disconnection or alteration of the item, device or equipment
  • the construction, installation, replacement, repair, alteration, maintenance, testing or commissioning of any roof covering consisting of non-metallic tiles, slate or flat membrane sheeting.
Sanitary Work Sanitary work is the construction, installation, replacement, repair, alteration, maintenance, testing or commissioning of any part of an above-ground sanitary plumbing system to connect sanitary fixtures and appliances, such as toilets, to a disposal system or below-ground sanitary drainage system, such as a septic tank. This includes:
  • any fixture in, or on, a caravan or vessel that is connected to a disposal system or below-ground sanitary drainage system
  • any roof sheeting and flashing that is necessary for the purpose of that work.
Sanitary work includes any incidental or associated design work. It does not include:
  • water supply work;
  • drainage work.
Water Supply Work Water supply work is the construction, installation, replacement, repair, alteration, maintenance, testing or commissioning of the following:
  • any part of a hot or cold water service that is connected to a drinking water supply
  • any part of a non-drinking hot or cold water service or rainwater service
  • any hot water service in or on a caravan or vessel.
Water supply work includes any incidental or associated design work. It does not include work associated with the supply of piped non-drinking water for agricultural purposes, unless the water is supplied by a network utility operator or other water provider. Specialised Classes Type A Appliance Servicing Type A appliance servicing work is the internal cleaning, maintenance and adjusting of a type A appliance. It includes the adjustment, repair or replacement of components. Type A and B appliance definitions Type A appliances The Gas Safety Act defines a Type A appliance as: (a) An appliance (including a second-hand appliance) for which an acceptance scheme has been authorised by ESV in accordance with section 68 or (b) An appliance that has been accepted under section 69 Domestic and light commercial type appliances, such as cookers, space heaters, central heaters, water heaters, catering equipment and leisure appliances, are Type A appliances. Type B appliances The Gas Safety Act defines a Type B appliance as an appliance (including a second-hand appliance) with gas consumption in excess of 10MJ/h, including any components and fittings downstream of and including the appliance manual shut-off valve, but does not include a Type A appliance.

Acceptance procedure for Type B appliances and complex gas installations

ESV has a procedure to be followed by all persons wishing to install, modify or commission new or second hand Type B appliances or carry out complex gas installation work. Full details of ESV\'s application and acceptance process along with requisite forms are located in the Gas installations pages (http://www.esv.vic.gov.au/Gas-Professionals/Gas-installations). The steps include:
  • Ensure that all relevant information has been supplied a month prior to gas being required
  • Ensure the information has been accepted before commissioning of gas is required
  • Ensure an ESV Start Work / Compliance Notice has been submitted at least 48 hours prior to gas being required for commissioning
  • At least seven days before hand-over of the appliance to the customer, ensure that an appointment has been made with an ESV inspector to witness any required tests
  • When accepted by the ESV, an appliance will be allocated an acceptance label. This must be attached to the appliance before handing over to the consumer
  • Any installation of a Type B appliance is a complex gas installation. ESV Start Work / Compliance Notices must be provided for both the consumer piping installation and the appliance
  • Special conditions apply for steel welding work, fusion jointing of polyethylene pipe, hot tapping and installation work over 200kPa gas pressure.
More information Contact ESV on (03) 9203 9700 or 1800 652 563 during normal business hours, or email ESV at info@esv.vic.gov.au. Type B Gasfitting Work Type B gasfitting work is the construction, installation, servicing and maintenance of a type B appliance, between the gas isolating valve adjacent to the appliance and any flue connection. This includes:
  • repair and replacement of gas components
  • the commissioning of gas components
  • the commissioning of the gas burner system.
For the purpose of this class of work, a type B appliance means any of the following single appliances that consume gas at a rate of more than 10 MJ/h and less than 5,000 MJ/h:
  • a water heater
  • a space heater
  • a vat or tank heater
  • a dryer or oven not associated with volatile solvents or hazardous atmospheres;
  • a batch kiln with flame supervision and safeguards
  • catering equipment.
It also includes the construction, installation, servicing and maintenance of a steam boiler or thermal fluid heater that consumes gas at a rate less than 10,000 MJ/h. Type B gasfitting advanced work Type B gasfitting advanced work is the construction, installation, servicing and maintenance of a type B appliance, including the gas supply components of the appliance, and includes:
  • the repair, replacement, alteration or modification of the burner and associated safety system
  • the commissioning of a new, existing or modified gas burner system
  • any incidental or associated design work.
For the purpose of this class of work, a type B appliance includes and any of the following appliances that consume gas at a rate of more than 10 MJ/h:
  • a furnace
  • an appliance that is part of, or integrated with, a process for industrial manufacturing
  • a dryer or oven associated with volatile solvents or hazardous atmospheres
  • a kiln.
Refrigerated air-conditioning Work Refrigerated air-conditioning work is the construction, installation, replacement, repair, alteration, maintenance, testing or commissioning of refrigerated air-conditioning equipment. It includes:
  • flexible ductwork, associated with the heating and cooling of a building;
  • any necessary roof sheeting and flashing.
Refrigerated air-conditioning work includes any incidental or associated design. It does not include:
  • the connection or disconnection of refrigerated air-conditioning equipment from a water supply, other than the disconnection of that equipment atan isolating valve adjacent to a mechanical component of that equipment
  • the treatment of cooling water
  • the construction, installation, replacement, repair, alteration, maintenance, testing or commissioning of a single head split system.
Backflow Prevention Work Backflow prevention work is the repair, alteration, maintenance, testing or commissioning of a backflow prevention device, which is capable of being tested and is listed in theAustralian Standard, Plumbing and drainage Water services - http://infostore.saiglobal.com/store/PreviewDoc.aspx?saleItemID=465157&ei=XZVpU5jLKNCElAWe-ICwDQ&usg=AFQjCNGm8XYSY109-CV2my0K60QgjTPp7Q.
Most individuals apply to be registered or licensed with the VBA after they have completed a plumbing apprenticeship. This requires attainment of the Certificate III in Plumbing, plus a minimum of four years plumbing experience. Under the Plumbing Regulations 2008, the VBA may approve competency units required to be completed as part of a training qualification in order to be eligible for registration or licensing in one or more classes of plumbing work or specialised plumbing work. The current list of approved units can be found on page 2316 of the Victorian Government Gazette No.G41 published on Thursday 9 October 2014. An individual may also apply for accreditation in one or more classes of plumbing on the basis of experience and qualifications (other than a plumbing apprenticeship). You will need a minimum of four years\' experience - reduced to two years in the case of drainage, irrigation (non-agricultural) and duct fixing. Plumbing practitioners also need to satisfy the Qualifications and Experience Review Committee (QERC) they are competent to carry out work in that class of plumbing. This requires an interview and assessment.
Building and planning permits Carrying out building work can be an exciting and satisfying process. However, the building process has some pitfalls for those who are uninformed. There are many things to consider before starting your building, such as whether your job requires a building permit or a planning permit (or both). The Building Act 1993 (the Act) and Building Regulations 2006 (the Regulations) legislate that all building work is subject to the issuing of a building permit, unless an exemption exists for the proposed work under the Regulations. This includes some minor alterations, demolitions and repair or maintenance work. A building permit will specify that either an occupancy permit is required or a certificate of final inspection is required on completion of the building work. If you are unsure please consult your municipal or private building surveyor whether your proposed building work requires a building permit. In the information that follows, you will learn what permits and other paperwork may be necessary for your building work and the order in which you may require them. Importantly, you will discover that these documents, which are prescribed by Victorian building legislation, are designed to protect you. Building permits relate specifically to the carrying out of buildingconstruction. However, there are times when a planning permit may also be required. Planning permits are legal documents giving permission for a land use or development, and may be required by your local council. If a planning permit is required, it must be obtained before a building permit can be issued, however, both applications can be made at the same time. A planning permit does not remove the need to obtain a building permit. The best way to find out whether you need a planning permit is to contact your local council\'s Town Planning Office. The Regulations specify the required commencement and completion dates for building works that are associated with a building permit. If works have not commenced or is not completed within the required time period, or an extension to the building permit has not been sought or approved, than the building permit will lapse.
Type of work Required commencement date Required completion date
Building work relating to houses and outbuildings within 12 months of the date of issue of the building permit within 24 months of the date of issue of the building permit
Building work relating to swimming pools and associated barriers or fences within 12 months of the date of issue of the building permit within six months of commencement of the work.
Building work relating to the re-erection of houses and out buildings within six months of the date of the issue of the building permit completed within 12 months of the date of issue of the building permit
All other building work within 12 months of the date of issue of the building permit within 36 months of the date of issue of the building permit
Note: A building permit period may be extended, if it is warranted, by application to the building surveyor before the permit lapses. Before applying for a building permit, you need to choose a building surveyor. You may chooseeither a municipal building surveyor or a private building surveyor. Your architect or builder can apply on your behalf for the permit but you must first authorise the architect or builder in writing to make the application. Do not sign a blank form authorising others to obtain all permits for you and always check that a permit has been issued before any work commences. Applying for a permit requires you to:
  • apply for the building permit through your choice of amunicipal or private building surveyor
  • pay the appropriate fee, building permit levyand submit at least three copies of drawings, specifications and allotment plansalong with the completed application form and otherprescribed information.

What is the process?

Once your building permit application has been lodgedwith a building surveyor, they will check for compliance with the Act andRegulations and can then decide toissue a building permit with or without conditions. In some instances they may refuse to issue a permit. If a permit is refused, you can either alter the application to comply with the Regulations or appeal the refusal of the permitto the Building Appeals Board. The buildingpermit issued may bea permit for the whole of the proposed building work or for a stage of the proposed building work. The building surveyor cannot issue the building permit until any required consent of a reporting authority is received. The consent could be in relation to such matters as building over an easement or thesiting of a carport. Abuilding permit cannot be issued until a relevant planning permit (if required) is obtained. The building surveyor who issues the permit must follow the project through to the end, carrying out building inspections and issuing an occupancy permit or a certificate of final inspection on completion of your building work. The building surveyor must specify on the building permitthe mandatory inspections thatwill be required throughout the course of the building work. There are no restrictions preventing the building surveyor from varying the required inspections or carrying out additional inspections, if they deem this to benecessary. If you intend to carry out buildingwork close to an adjoiningneighbour\'s property the building surveyor can, in some cases, require you to perform work to protect your neighbour\'s property. This may include obtaining theappropriate insurance cover for the building work prior tocommencing the protectionwork. This is generally determined during the building permit application process. A building permit ensures: