BSBSMB401AS – Establish Legal and Risk Requirements of Small Business
ASSESSMENT 1
Question 1
* Sole Trader – One advantage of operating as a Sole Trader are the minimal establishment costs and one disadvantage would be having unlimited liability. * Partnership – One advantage of operating as a Partnership is the ability to split taxation and one disadvantage is that salaries are not tax deductible. * Company – One advantage of operating as a Company is that it allows for perpetual succession and one disadvantage are the statutory obligations. * Trust – One advantage of operating as a Trust is that it offers many of the advantages of a company structure and one disadvantage is that trusts are complex in their structure and require professional advice.
Question 2
In Queensland, you are required to register a business name if you trade under a name that isn’t your natural or corporate name.
Question 3
In Queensland the Workers Compensation Act is administered by the State via WorkCover Queensland.
Question 4
Only when the contracted work performed is paid for as a mix of labour and some materials, or the workers are on lump sum labour only and use other than hand tools, is the employer exempt from paying the levy.
Question 5
Government regulations require you, as an employer, to contribute the equivalent of 9% currently of each employee’s ordinary times earnings to an approved superannuation fund on each employee’s behalf. This applies even when you are subcontracting if the person is contracted solely for their labour. These contributions are tax deductible, so long as they are paid into the fund on time.
Question 6
An employer is required to pay superannuation if an employee earns $450 (before tax) or more per calendar month.
Question 7
Based on the Anti-Discrimination Act 1991, a person cannot be discriminated against for certain factors. Five examples of such factors include - 1. Age 2. Pregnancy 3. Race 4. Trade Union Activity 5. Gender Identity
Question 8
Fair Work Australia is the federal government department responsible for administering the majority of industrial awards.
Question 9
Five areas that Fair Trading in Queensland regulates include - 1. Warranties 2. Advertising 3. Refunds 4. Pricing 5. Business name registration.
Question 10
A quote for goods and services must indicate the price in full including all associated costs to complete the specific task such as GST, levies, charges, commissions, postage and handling, etc.
Question 11
As an owner of a small business, there are a number of ways I would ensure that I was complying with the latest legislation requirements. Some of these would include - 1. Using diary and calendar reminders to prompt me to check websites for legislation changes or updates. 2. Subscribing to any possible notifications regarding legislative updates and changes. EG – Via Email Distribution Lists or Mailing Lists.
Question 12
See procedures on the following pages.
Performing Live Work Procedure PURPOSE - The purpose of this procedure is to ensure that live work is performed safely, efficiently and in accordance with the requirements of the Electrical Safety Regulation 2002. SCOPE - This procedure applies to all employees and/or sub contractors of ABC Electrical who are performing any live work. DEFINITION – The Electrical Safety Regulation 2002 defines ‘Live Work’ as electrical work performed in circumstances in which the part of the electrical equipment the subject of the electrical work is energised.
PROCEDURE
1. Establish whether live work is justified. Live work is only permitted if it is not practicable to perform the electrical work other than by live work because of 1 or more of the following reasons – a. It is necessary in the interests of safety, whether or not electrical safety, for the work to be performed while the electrical equipment the subject of electrical work is energised. b. A supply of electricity is necessary for the proper performance of the electrical work. c. There is no reasonable alternative to performing the electrical work by live work.
2. If the source of supply cannot be disconnected and live work is deemed necessary to perform the task, you must contact your Electrical Supervisor and complete the relevant risk assessments. The risk assessment that takes into consideration the following as a minimum-
a. That authorisation to perform the live work commences only after the employer consults with the person in control of the electrical equipment the subject of the electrical work. b. The person who performs the live work must have the appropriate training and qualifications to perform the live work. c. The correct testing equipment has been supplied to the person performing the electrical work. The test equipment is properly maintained and in correct working order. d. The correct personal protective equipment and clothing should be provided and used in its intended form when performing the live work. e. The isolation point of the electricity supply for the electrical equipment subject to live work, has been clearly identified and is able to be reached quickly without the need to climb over or shift obstructions. f. The work area where the electrical work is performed must be clear of obstructions for easy access to and from the area. g. Access to the area should be prohibited to all those not directly involved in the work by means of controlled access and must display a warning sign. h. A competent and qualified safety observer is observing the performance of the live work. i. All other hazards associated with your particular task and work area. 3. The live work must only commence if the risk assessment successfully controls all hazards and has been approved by the Electrical Supervisor.
Certificate of Testing & Safety Procedure PURPOSE- The purpose of this procedure is to ensure that all testing and safety inspection certificates are completed, issued and filed in accordance with the requirements of the Electrical Safety Regulation 2002. SCOPE- This procedure applies to all employees and/or sub contractors of ABC Electrical who are performing electrical work which is required to be tested in accordance with the Electrical Safety Regulation 2002.
PROCEDURE- If a person performs part or all of the electrical work, and is responsible for bringing the electrical equipment to a state of readiness for connection to a source of electricity for use for its intended purpose they must ensure the electrical equipment is tested and safe.
All of the electrical work that is performed must be tested by a licensed electrician (not an apprentice).
A certificate of testing must be issued to the person whom the work was preformed for as soon as practicable after testing. The testing certificate must clearly state-
a. The name and address of the customer. b. The electrical equipment tested. c. The date the electrical equipment was tested. d. The licence number of the electrical contractor.
A certificate of testing and safety must certify that the electrical equipment is electrically safe. The certificate of testing should be given to the customer immediately after the testing is preformed if they are available. A copy must then be issued to administration for filling in the records and must be kept for a minimum of 5 years. If the customer was not available this certificate will be immediately sent out by the administrative personnel.
Incident Notification & Reporting Procedure
PURPOSE- The purpose of this procedure is to ensure the effective and timely reporting of any serious electrical incidents or dangerous electrical events in accordance with the requirements of the Electrical Safety Regulation 2002 SCOPE- This procedure applies to all employees and/or sub contractors of ABC Electrical if a serious electrical incident or dangerous electrical event occurs.
PROCEDURE-
1. If any serious electrical incident or dangerous electrical event occurs, ABC Electrical management must be immediately notified and if possible will attend the event to ensure all necessary steps are taken. 2. As soon as practicable after the incident/event, any employees that were involved in the incident/event must complete an ABC Electrical incident report form which are located in the Administration Office and all company vehicles. 3. If required, any employees that were involved must cooperate with management to provide any further information required to complete a thorough investigation into the incident or event. 4. Management must give written notice of the incident or event to the Chief Executive in the approved form and ensure that this is received for the Chief Executive within 24 hours of management becoming aware of the incident or event. 5. If the incident or event is a serious electrical incident in which a person has been killed, management must also advise the chief executive of the incident immediately upon becoming aware of the incident by phone, fax or another suitable form of immediate and effective communication. 