Cert IV - M. S. Martin January 2012

Apply Legal Requirements & Manage Small Business Finances

Lesson 1Introduction

Cert IV - M. S. Martin January 2012

Todays Lesson

• Course Overview• Relevant Licencing or Registration Legislation• Classifications for Builders, Supervisors and

Managers• Introduction to Law and the Australian Legal

System• Introduction to Small Business Finance and

financial plans

Cert IV - M. S. Martin January 2012

Cert IV - M. S. Martin January 2012

8:00am 10:30am

3:30pm 5:00pm

5:30pm 8:30pm

8:00am 4:00pm8:00am 4:00pm

8:00am 4:00pm8:00am 4:00pm

8:00am 4:00pm Plan Building for Construction Work8:00am 4:00pm Plan Building for Construction Work8:00am 4:00pm Plan Building for Construction Work8:00am 4:00pm

Semester Two

Semester One - Term 1 & 2 - 2012

Time

Break

Break

3:15pm

Mirko Naidofski

Nick PrestonWednesday Night

Teacher

Mark HawkinsApply Struct. Principles to residential low rise

(wholistic) Apply Legal Requirements to Building Projects and Manage Finances

1:30pm

TBATBA TBA

TBA

Student Timetable FLEX Certificate IV

Note: TBA = To be Advised

Build Thermally Effi cient and Sustainable Structures

John Freedman

Word Processing / Spread Sheets

TBA

Apply site Survey & set out proceedures Mirko NaidofskiField DayField Day

TBARoomTBA

At Home

At Home

TBAPlan Building for Construction Work

B211

A211

RoomB232B232

B232

Plan Building for Construction WorkPlusDrop in classes to

finish

On-Line (Parrallel Study)

Read and Interporate Plans (complete) Mike MartinSelect Procure and store materials to

low rise (start only)Mike Martin

Apply site Survey & set out proceedures

11:00am 1:00pm Mike Martin

Room

B232

B232

Friday Day

April holidays 1 (Friday - 13.4.12 & 20.4.12)Time Teacher

Apply site Survey & set out proceedures Mirko Naidofski

Mike Martin(wholistic) resolve business disputes and select and prepare a construction

contractBreak

Saturdays (TBA)

Time Teacher

Apply site Survey & set out proceedures Mirko NaidofskiTerm 2 - Semester 1

July holidays 2

Teacher

Cert IV - M. S. Martin January 2012

Assessment Documents and Text• Look at the “elements” (what you

will be learning)• You will be assessed by simulated

or project based assessments– Legal: 2 x in class / take home case

study written assessments based on relevant legal documents, OHS act, Home Building Act, etc

– Legal: 1 x final written exam (standard type written test)

– Finance: 2 x in class / take home assignments, of compiling relevant business documents, bookeeping, cash flow etc

– Finance: 1 x final written exam (standard type written test)

Cert IV - M. S. Martin January 2012

Lesson 1 - Legal

Cert IV - M. S. Martin January 2012

This subject and the law• This subject focuses on finding the legal requirements and understanding the

requirements.• This subject will help you learn how to find relevant law and how to

understand the law relevant to running a building business or working for a construction company dealing with . The areas covered include:

• Australian legal system• Builders registration and licensing• Business registration• Occupational health and safety• Financial transactions• Contracts• Insurances• Industrial relations and awards• Dispute resolutions

Cert IV - M. S. Martin January 2012

Legislative Documents

• Home Building Act 1989• This is the law that regulates residential

building work in NSW. Residential building work is building or trade work on single dwellings, villas, houses and home units.

• The other main document is ?:• Home Building Regulation 2004

Cert IV - M. S. Martin January 2012

For Licencing and Registration Legislative and Application

DocumentsThe following will help you for

reference

Cert IV - M. S. Martin January 2012

NSW Office of Fair Trading

http://www.fairtrading.nsw.gov.au/default.html

Cert IV - M. S. Martin January 2012

NSW BLIS - Business Licencing Information Service

http://blis.fairtrading.nsw.gov.au/?DCSext.ref=HomePageClick:Onlineservices

Cert IV - M. S. Martin January 2012

Building and Trade Licence Classes

BricklayingBuildingBuilding consultancyCarpentryDecoratingDemolishingDry plasteringErection of prefabricated metal-framed home additions and structures

ExcavatingFencingFlooringGeneral concretingGlazingInstallation of security doors, grilles and equipment

Joinery

Kitchen, bathroom and laundry renovationMechanical servicesMetal fabricationMinor maintenance/cleaningMinor tradework PaintingRoof plumbingRoof slatingRoof tilingStonemasonryStructural landscapingSwimming pool buildingSwimming pool repairs and servicingUnderpinning/pieringWall and floor tilingWaterproofingWet plastering

Cert IV - M. S. Martin January 2012

The Licencing Process

As described by OFT

Cert IV - M. S. Martin January 2012

Cert IV - M. S. Martin January 2012

Introduction to Law

In your notes / text, this will be from chapter 1

(these notes were compiled by Sydney Institute, Gymea Campus)

Cert IV - M. S. Martin January 2012

What is it ?

• Law defines the “Rights” and “responsibilities” we have as individuals and companies.

• If broken, we suffer consequences• Its not always simple to understand• To understand the law that applies to a given situation we

have to look in a number of locations at different documents and sources of advice.

• Different sources of law for the builder could include – one or a number of ‘Acts’ created by Commonwealth, State or

Territory Parliaments, as well as – Any Regulations (detailed rules) made under that Act.

Cert IV - M. S. Martin January 2012

Common Law

• You might also have to consider laws called ‘common law’ which aren’t written down in an Act but have evolved through time.

• Laws that may not be written in an Act include: – ‘murder’ for example, or – the right to ‘sue’ if a person has suffered a

financial ‘loss’ caused by someone they should have been able to rely on.

Cert IV - M. S. Martin January 2012

Language Literacy and Numeracy Assistance

NOTE:• This subject does require the ability to

research, access and interpret complex documents and it requires good written communications skills to demonstrate knowledge. If you feel you may have difficulty in these two areas particularly,

• please contact ABE (Adult Basic Education unit) on campus for advice

Cert IV - M. S. Martin January 2012

A General Note On The Use Of Websites

• Finding information on the internet does sometimes involve really searching to find relevant material and coming from different angles

• you might have to think of a few different words, or different topics, or try different organisation’s websites

• The internet searches you need to do for this subject are of two types: general searches using search engines like Google for example; and going to specific web links we provide.– See there is more detailed information explaining this in your

notes

Cert IV - M. S. Martin January 2012

Lesson 1 - Small Business Finance

Cert IV - M. S. Martin January 2012

What is it ?

Cert IV - M. S. Martin January 2012

It’s the Law

• The most important reason for keeping good records is that it’s a legal requirement. By law, you must keep business records:

• for five years after they are prepared, obtained or the transactions completed, whichever occurs latest

• They must be in English or in a form that the ATO can access and understand in order to work out the amount of tax you are liable to pay.

• You will have to keep records for longer if you use information from those records in a later tax return – for example, if you claim a loss carried forward from a business activity in an earlier year.

Cert IV - M. S. Martin January 2012

Keeping Business Records

• So what type of questions can they answer for you and your business ?

• These records are essential because they can answer such important questions as:

• Am I making or losing money from my business? • How much am I worth? • Should I put more money in my business or sell it

and go into another business? • How much is owed to me, and how much do I owe? • How can I change the way I operate to make more

profit?

Cert IV - M. S. Martin January 2012

Accounting or Bookkeeping for a Business

• A Business uses Accounting or Bookkeeping to measure its financial performance

• It does it by classifying (or naming) all the businesses transactions like sales, purchases, assets, and liabilities, etc.

• Which has to be kept in a certain accepted format, that adheres to the ATO requirements

• It also helps to: – evaluate past performance – Look at present circumstances and – Project future prospects.

Cert IV - M. S. Martin January 2012

In General, What is Accounting ?

• It could be deemed as ‘Accounting’, ‘Record Keeping’ or ‘Bookkeeping’

• Its function is to:– Firstly Record – Secondly Classify – Then Summarise– Lastly report & evaluate the financial activities of a

business

Cert IV - M. S. Martin January 2012

Simple Cash Flow (ATO example)

Cert IV - M. S. Martin January 2012

References

• Competency text for ‘Apply Legal Requirements & Manage Small Business Finances’

• Websites as listed below: http://www.fairtrading.nsw.gov.au/default.htmlhttp://www.ato.gov.au/businesses/http://blis.fairtrading.nsw.gov.au/?DCSext.ref=HomePageClick:Onlineserviceshttp://www.dummies.com/how-to/content/basic-bookkeeping-for-your-small-business.navId-410637.htmlhttp://www.toolkit.com/small_business_guide/sbg.aspx?nid=P06_4001