In relation to a similar post I have added. I renovate houses by myself. Every now and then a friend or family member will help where I need a lift or more hands. What do you think is the best way to go about putting someone on to work with me?
I think full time employment may not be the way to go for a number of reasons. I have a young cousin interested, I thought if he got an ABN and sub contracted his labour out to my business(J Enterprises trust) that might be the best way to go.
Your thoughts and ideas would be much appreciated.
All the best.
Jarrod.
http://www.jenterprisegroup.com.au
data-security-communications-entertainment systems<- home networking and home theatres- talk to J first!!
*Technology Consultants*
Brisbane.Gold coast.Sunshine coastThe ATO has strict rules regarding who is and isn’t an employee.
Employee or independent contractor?
Determining a worker’s status depends upon the terms and conditions under which the work is performed.
Does the worker have an ABN?If a worker has an Australian business number (ABN) this does not automatically mean the worker is a contractor. You still need to consider the nature of your agreement with the worker.
Factors to considerA key factor in deciding if a worker is an employee is the degree of control that can be exercised over the worker. If you have the right to direct how, when, where and who is to perform the work, the worker is likely to be an employee. These directions may be oral or in writing, or simply understood between the parties.
Other key factors are whether:
* the worker is being paid for the time worked by them personally, or
* whether the worker is being paid to achieve a result where they are able to subcontract or engage employees to perform the work.No one factor is necessarily conclusive. It depends on the facts in each case.
EmployeeAn employment relationship exists if some or all of the following factors are present:
* the payer controls the way in which the worker performs his/her duties
* the worker performs the duties of their position and cannot delegate or contract out their work
* the worker is recognised as a part of the payer’s organisation
* the worker is not responsible for providing the materials or equipment required to do the job
* the worker is paid for the time worked, rather than on the completion of a specific task
* the worker takes no commercial risks and cannot make a profit or loss from the work performed
* the worker receives paid leave (for example, sick, annual or recreation, or long service leave), or
* work hours are set by an agreement or award.None of these factors alone is indicative of an employment relationship. The totality of the relationship between the parties and a consideration of all the factors is required.
If a worker is an employee, you must withhold an amount from any salary, wages, commissions, bonuses or allowances you pay to the employee and send the amounts withheld to the Tax Office. An employer may also have obligations under fringe benefits tax and the superannuation guarantee laws.
Apprentices are considered employees for taxation purposes.
Independent contractorAn independent contractor agrees to achieve a specified result for an agreed price. In most cases an independent contractor:
* is paid for results achieved
* provides all or most of the necessary materials and equipment to complete the work
* is free to subcontract the work to other entities
* has freedom in the way the work is done subject to the specific terms of the contract
* bears the commercial risk and responsibility for any poor workmanship or injury sustained in the performance of work
* provides services to the general public and other businesses as well as the payer.
* is free to accept or refuse work, and
* is in a position to make a profit or loss.If a worker is an independent contractor, you are required to withhold an amount from payments to them only where the contractor:
* has entered into a voluntary agreement
* provides their work or services for a client of yours under a labour hire arrangement, or
* has not quoted their ABN to you.Superannuation guarantee laws may apply to payments for work or services by an independent contractor in some cases.
Most independent contractors provide for their tax obligations through the PAYG instalments system. Contractors should also consider whether they need to apply for an ABN and register for goods and services tax (GST). Contractors who come under the contractor tax rules must include their personal services income in their individual tax return and cannot claim some tax deductions. Those operating through a company, partnership or trust may also have PAYG withholding obligations.
Factors to consider
Employee
Contractor
Control over work
The employer has an implied right in industrial law to direct and control the work of an employee. The employee works in the business of the employer and the employer is free to manage their business as they see fit.
A payer has a right to specify how the contracted services are to be performed. However, such control must be specified in the terms of the contract, otherwise the contractor is free to exercise their discretion.
Independence
An employee works in the business of the payer. Their work is an integral part of the business.
Although the work of a contractor is done for the business, it is not integrated into it but is ancillary to it.
Payment
Payment is often based on the period of time worked, but an employee can also work on ‘piece rates’ or commission.
Payment is dependent on the performance of the contracted services.
Commercial risks
An employee generally bears no legal risks in respect of the work; since the employee works in the business of the employer, the employer is legally responsible for any work performed by the employee.
A contractor bears legal risk in respect of the work. They have the potential to make a profit or loss, and must remedy any defective work at their own expense.
Ability to delegate
An employee performs the work personally and generally cannot subcontract the work to someone else.
Unless otherwise specified in the contract, a contractor can subcontract or delegate the work.
Tools and equipment
The employer, except when specifically agreed otherwise, usually provides tools and equipment.
Generally, a contractor provides their own tools and equipment.
And that is before you look att workcover and superannuation….
Tools
Thanks heaps for that Tools.
I completely understand the differences between contractors, employees, apprentices etc. as I currently run my own business as well as do the renovations. But the renovations are a different set-up. With my business I am licensed to do the work and I am responsible for the work carried out by my employees.
But the main issue that I am wondering about with the renovations with is licensing and responsibility. I am not a licensed or registered builder, tiler, painter, plumber, roofer, renderer, landscaper etc. therefore I thought I possibly should not be employing someone to carry out those tasks under my supervision. Hence, I thought someone subcontracting to me instead may eleviate that problem??
Thoughts please. Thinking about getting in touch with Office of fair trading in Queensland and the BSA. Really just the legality of work that concerns me. I set very high standards and have much knowledge in what I do, all work we do is to the rules and standards- but whether we can do it legally is another question.
thanks.
Jarrod.
http://www.jenterprisegroup.com.au
data-security-communications-entertainment systems<- home networking and home theatres- talk to J first!!
*Technology Consultants*
Brisbane.Gold coast.Sunshine coastHi Jarrod
The office of fair trading would be the best place to start with your enquiries.
Once you get a few proeprties in the one area, it may be a good idea to employ someone (or subcontract) who can help out in various areas. Imagine employing an apprentice on $20,000 pa. How much value could they add in one year?
Terryw
Discover Home Loans
North Sydney
[email protected]Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
Yeah, exactly, paying someone $20,000 for the first year where they would acquire a stack of knowledge to work for me would be great. And the fact that they alone could possinly work on say three properties in one year with me and easily add more than $40,000 in value(themselves) to those total properties. I think I will be giving the office of fair trading a call next week and see what they have to say.
Jarrod.
http://www.jenterprisegroup.com.au
data-security-communications-entertainment systems<- home networking and home theatres- talk to J first!!
*Technology Consultants*
Brisbane.Gold coast.Sunshine coastMaybe I misunderstood you Jarrod.Are you saying that because you are not a registered builder,you want to pay someone else who isn’t registered either to do the work????????
Tools-
Yeah exactly! You are spot on. It will never be major building works, but that is the issue, yes.
Thanks.
Jarrod.
http://www.jenterprisegroup.com.au
data-security-communications-entertainment systems<- home networking and home theatres- talk to J first!!
*Technology Consultants*
Brisbane.Gold coast.Sunshine coastOffice of fair trading’s response_ I think I had best be making some other calls:
Dear Jarrod,
Thank you for contacting the Queensland Government.
With regard to your enquiry, under the Property Agents and Motor Dealers Act 2000 all property developers who complete more than 6 residential property sales in any 12 month period must be licensed.
You will need to contact Smart Licence on 1300 363 711 with regards to any licences you may require for carpentry, plumbing etc.
I hope that this is of assistance.**********
I gave them a fairly detailed explanation of the plans too, oh well, still many a call to make.Jarrod.
http://www.jenterprisegroup.com.au
data-security-communications-entertainment systems<- home networking and home theatres- talk to J first!!
*Technology Consultants*
Brisbane.Gold coast.Sunshine coastIt would be best to call them in person. That way you won’t get the standard (and conservative) response.
If that was the with the licencing, maybe you could get around this by setting up 2 trusts with different trustees. Or just do 5 or less properties per year. Or just get the licence??
Terryw
Discover Home Loans
North Sydney
[email protected]Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
Try your solicitor and tax accountant. Prospective workers should do likewise. There must be ways around all the red tape as how would all the grandads out on the farms ever do without the help from the grandkids on holidays?
If you want to get out of a hole, first stop digging.
Jarrod
You state “I renovate houses by myself” yet appear not to have been in touch with the QBSA.
Do we assume that the market value of your renovations on each property is less than $11,000?
Cheers Richard
Ph: (07) 3720 1888
[email protected]
http://www.yourstatefinance.comIP funding and US property finance
our specialityRichard Taylor | Australia's leading private lender
Richard,
I have been in touch with BSA. What is with the $11,000 figure? It is $1,100 work for others(public) or only $6,600.
Thanks all for your input. Yes- red tape. It is definitely not a matter of “just doing the course”. I spoke to one very helpful lady at BSA and she explained everything to me. I think I would have to spend the rest of my life completing courses if I truly wanted to renovate “by the book”. Check this out: These are all of the license types that exist for the BSA. They have certain requirements and criteria. It’s quite a list:
********************
Air Handling Duct Installation
Brick And Segmental Paving
Bricklaying
Bricklaying And Blocklaying
Bricklaying Restricted To Blocklaying
Bricklaying Restricted To Brick And Segmental Paving
Builder Low Rise
Builder Medium Rise
Builder Open
Builder Restricted To Kitchen Bathroom And Laundry Installation
Builder Restricted To Shopfitting
Builder Restricted To Structural Landscaping
Builder Restricted To Swimming Pool Construction
Building Design
Building Design Limited
Building Design Low Rise
Building Design Medium Rise
Building Design Open
Building Restricted To Building Removal
Building Restricted To Non Structural Renovations
Building Restricted To Repairs And Maintenance
Cabinetmaking
Carpentry
Carpentry Formwork
Carpentry Restricted To Framing
Carpentry Restricted To Internal Finishes
Carpentry Restricted To Joinery Products
Carpentry Restricted To Lattice And Other Timber Work
Carpentry Restricted To Outdoor Construction
Completed Building Inspection
Completed Building Inspection Restricted To Commercial Buildings
Completed Building Inspection Restricted To Residential Buildings
Completed Residential Building Inspection
Concreting
Concreting Restricted To Concrete Repairs
Concreting Restricted To Light Concreting
Concreting Restricted To Minor Concrete Work
Concreting Restricted To Piling And Foundations
Concreting Restricted To Special Finishes
Concreting Restricted To Underpinning And Foundation Repair
Drainage
Fire Detection Systems
Fire Equipment Doors And Shutters
Fire Equipment Penetration And Joint Sealing
Fire Equipment Wall And Ceiling Lining
Fire Fighting Appliances
Fire Hose Reels And Fire Hydrants
Fire Sprinkler Systems Commercial And Industrial
Fire Sprinkler Systems Domestic And Residential
Fire Sprinkler Systems Other Than Domestic And Residential
Fire Suppression Systems Special Hazards
Fixed Fire Pump Sets
Floor Finishing And Covering Hard Sector
Floor Finishing And Covering Restricted To Cork Flooring
Floor Finishing And Covering Restricted To Floor Sanding And Finishing
Floor Finishing And Covering Restricted To Install Floating Flooring
Floor Finishing And Covering Restricted To Install Strip Flooring
Floor Finishing And Covering Restricted To Parquetry Flooring
Floor Finishing And Covering Restricted To Seamless Flooring
Foundation Work Piling And Anchors
Gasfitting
General Building
General Building Restricted To One Storey
General Building Restricted To Three Storeys
Glass Glazing And Aluminium
Glazing
House Building
Hydraulic Services Design
Irrigation
Joinery
Kitchen Bathroom And Laundry Installations
Metal Fabricating
Metal Fabricating Restricted To Non Structural Metal Fabricating
Metal Fabricating Restricted To Sheds Garages And Carports
Metal Fascias And Gutters
Non-Structural Metal Fabrication And Installation
Painting
Painting And Decorating
Painting Restricted To New Domestic Buildings
Painting Restricted To Repainting Domestic Buildings
Painting Restricted To Roof Painting
Painting Restricted To Special Finishes
Passive Fire Equipment
Pest Controlling
Pest Controlling Restricted To Termite Barrier Installation
Plastering Drywall
Plastering Drywall Restricted To Cornice Fixing
Plastering Drywall Restricted To Partition Installation
Plastering Drywall Restricted To Plaster Setting
Plastering Drywall Restricted To Suspended Ceiling Fixing
Plastering Drywall Restricted To Wall Board Fixing
Plastering Solid
Plumbing And Drainage
Plumbing And Draining
Plumbing And Draining Restricted To Draining
Plumbing And Draining Restricted To Fascias Barges Gutters And Downpipes
Plumbing And Draining Restricted To Plumbing
Plumbing And Draining Restricted To Roofing And Wall Cladding
Plumbing And Draining Restricted To Skylight And Ventilator Installation
Plumbing And Draining Restricted To Tanks
Plumbing And Draining Restricted To Urban Irrigation
Plumbing And Draining Restricted To Wall Cladding
Refrigeration Airconditioning And Mechanical Services
Refrigeration Airconditioning And Mechanical Services Including Limited Design
Refrigeration Airconditioning And Mechanical Services Including Unlimited Design
Refrigeration Airconditioning And Mechanical Services Restricted To Ducting Manufacture And Installation
Refrigeration Airconditioning And Mechanical Services Restricted To Multipackaged Residential Airconditioning Equipment And Plant
Refrigeration Airconditioning And Mechanical Services Restricted To Residential Evaporative Cooling Equipment
Refrigeration Airconditioning And Mechanical Services Restricted To Self-Contained Window Package Residential Airconditioning Installation
Residential Design
Residential Design Limited
Roof And Wall Cladding
Roof Tiling
Roof Tiling Restricted To Roof Tile Maintenance
Sheds Carports And Garages
Shop Fitting
Shopfitting Trade
Site Classifier
Specialised Contracting Screw In Foundations
Specialised Contracting Solid Fuel Heater Installation
Steelfixing
Stonemasonry
Structural Landscaping
Structural Landscaping Restricted To Fences
Structural Landscaping Restricted To Retaining Walls
Structural Landscaping Trade
Structural Metal Fabrication And Erection
Swimming Pool And Spa Construction
Swimming Pool And Spa Construction Restricted To Concrete
Swimming Pool And Spa Construction Restricted To Fibreglass
Swimming Pool And Spa Construction Restricted To Finishes
Swimming Pool And Spa Construction Restricted To Maintenance And Repairs
Swimming Pool And Spa Construction Restricted To Prefabricated Or Packaged Products
Termite Management Chemical
Termite Management Physical
Wall And Floor Tiling
Waterproofing
Waterproofing Application
Waterproofing Restricted To Commercial Waterproofing
Waterproofing Restricted To Residential Waterproofing
************
Here’s the link to BSA and some more of that information:
http://www.bsa.qld.gov.au/Home/BuildersContractors/LicensingInformation/
Lots of information on the site.
It took me a couple goes over th ephone to get in contact with someone who wanted to take the time to speak with me, but the lady was very helpful.
As for OFT queensland- well as I mentioned in an earlier post, they didn’t really have much to say, basically told me to talk to BSA, which, was fair enough.
Thanks,
Jarrod.
http://www.jenterprisegroup.com.au
data-security-communications-entertainment systems<- home networking and home theatres- talk to J first!!
*Technology Consultants*
Brisbane.Gold coast.Sunshine coastBrenda-
Thanks, but have spoken with my accountant too. The only possibility is for someone to sub contract to me. But then they would technically have to be licensed too.
I think I know what business I am going to go into:
Manufacturing Red Tape.
All the best everyone, thanks for your input.
Jarrod.
http://www.jenterprisegroup.com.au
data-security-communications-entertainment systems<- home networking and home theatres- talk to J first!!
*Technology Consultants*
Brisbane.Gold coast.Sunshine coastTerry,
Thanks to you too. It really just centres around the licensing issue, can get around everything else now, but technically- the license is the one concern.
cheers
Jarrod.
http://www.jenterprisegroup.com.au
data-security-communications-entertainment systems<- home networking and home theatres- talk to J first!!
*Technology Consultants*
Brisbane.Gold coast.Sunshine coast
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