Modification History
Not applicable.
Unit Descriptor
The unit involves identifying and complying with business legal and administrative requirements. It is suitable for setting up or existing micro and small businesses or a department in a larger organisation.
This unit is related to BSBSBM404A Undertake business planning.
The unit involves identifying and complying with business legal and administrative requirements. It is suitable for setting up or existing micro and small businesses or a department in a larger organisation.
This unit is related to BSBSBM404A Undertake business planning.
Application of the Unit
Not applicable.
Licensing/Regulatory Information
Not applicable.
Pre-Requisites
Not applicable.
Employability Skills Information
Not applicable.
Elements and Performance Criteria Pre-Content
Not applicable.
Elements and Performance Criteria
Elements and Performance Criteria |
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Element |
Performance Criteria |
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1 |
Identify and Implement business legal requirements |
1.1 |
Possible legal options for the business structure are identified |
1.2 |
Legislation, codes and regulatory requirements affecting the structure and operations of the business are determined and procedures are developed and implemented to ensure full compliance |
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2 |
Comply with legislation, codes and regulatory requirements |
2.1 |
Systems are established to ensure the legal rights and responsibilities of the business are identified, and the business is adequately protected, especially in regard to Occupational Health and Safety, business registration and environmental requirements |
2.2 |
Taxation principles and requirements relative to the business are identified, and procedures are followed to ensure compliance |
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2.3 |
Legal documents are identified, carefully maintained and relevant records are kept and updated to ensure their ongoing security and accessibility |
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2.4 |
Insurance requirements are identified and adequate cover is acquired |
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2.5 |
Compliance with legal and regulatory requirements monitored |
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2.6 |
Investigations conducted to identify areas of non-compliance with legal and regulatory requirements and corrective action taken where required |
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3 |
Negotiate and arrange contracts |
3.1 |
Legal advice on contractual rights and obligations is sought, if required, to clarify business liabilities |
3.2 |
Potential products/services are investigated and assessed to determine procurement rights and to ensure protection of business interests where applicable |
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3.3 |
Conditions applying to production/provision of relevant products and services are investigated to ensure compliance with legal and contractual requirements as required |
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3.4 |
Contractual procurement rights for goods and services including contracts with relevant people, negotiated and secured as required in accordance with the business plan |
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3.5 |
Options for leasing/ownership of business premises identified and contractual arrangements completed in accordance with the business plan |
Required Skills and Knowledge
Not applicable.
Evidence Guide
The Evidence Guide identifies the critical aspects, knowledge and skills to be demonstrated to confirm competence for this unit. This is an integral part of the assessment of competence and should be read in conjunction with the Range of Variables.
Critical Aspects of Evidence
The capacity to implement a systematic approach to identifying, managing and meeting legal business requirements and
Interpreting compliance data and formulating appropriate action
Underpinning Knowledge *
* At this level the learner must demonstrate understanding of a broad knowledge base incorporating some theoretical concepts.
National, State/Territory and Local Government legislative requirements affecting business operation, especially in regard to Occupational Health and Safety and environmental issues, EEO, industrial relations and anti-discrimination
Relevant OHS responsibilities and procedures
Business registration and licensing requirements
Legal rights and obligations of alternative ownership structures
Relevant taxation and related legislative requirements and legal rights and responsibilities related to the business
Bookkeeping and record keeping procedures to meet minimum financial and legal requirements
Award and enterprise agreements, where required
Industrial law relevant to recruitment and dismissal of employees
Creation and termination of relevant legal contracts
Duty of care imposed by Law of Torts
Relevant industry codes of practice
Relevant consumer legislation
Underpinning Skills
Literacy skills to interpret legal requirements, develop company policies and procedures and analyse compliance information
Communication, reporting and consultation skills necessary for the business operation
Time management skills to prioritise tasks and to meet datelines
Ability to relate to people from a range of social, cultural and ethnic backgrounds and physical and mental abilities
Resource Implications
The learner and trainer should have access to appropriate documentation and resources normally used in the workplace
Consistency of Performance
In order to achieve consistency of performance, evidence should be collected over a set period of time which is sufficient to include dealings with an appropriate range and variety of situations
Context /s of Assessment
Competency is demonstrated by performance of all stated criteria, including paying particular attention to the critical aspects and the knowledge and skills elaborated in the Evidence Guide, and within the scope as defined by the Range of Variables
Assessment must take account of the endorsed assessment guidelines in the Business Services Training Package
Assessment of performance requirements in this unit should be undertaken in an actual workplace or simulated environment
Assessment should reinforce the integration of the key competencies and the business services common competencies for the particular AQF level. Refer to the Key Competency Levels at the end of this unit
Key Competency Levels
Collecting , analysing and organising information (Level 3 ) - to determine business legal requirements
Communicating ideas and information (Level 2 ) - to establish business structure
Planning and organising activities (Level 3) - to comply with legal requirements for the business legal structure
Working with teams and others (Level 2 ) - to obtain compliance with legal requirements
Using mathematical ideas and techniques (Level 2 ) - to support the business operation
Solving problems (Level 3) - to reduce risk and establish business legal structure
Using technology (Level 1) - to optimise business performance
Please refer to the Assessment Guidelines for advice on how to use the Key Competencies
The Evidence Guide identifies the critical aspects, knowledge and skills to be demonstrated to confirm competence for this unit. This is an integral part of the assessment of competence and should be read in conjunction with the Range of Variables.
Critical Aspects of Evidence
The capacity to implement a systematic approach to identifying, managing and meeting legal business requirements and
Interpreting compliance data and formulating appropriate action
Underpinning Knowledge *
* At this level the learner must demonstrate understanding of a broad knowledge base incorporating some theoretical concepts.
National, State/Territory and Local Government legislative requirements affecting business operation, especially in regard to Occupational Health and Safety and environmental issues, EEO, industrial relations and anti-discrimination
Relevant OHS responsibilities and procedures
Business registration and licensing requirements
Legal rights and obligations of alternative ownership structures
Relevant taxation and related legislative requirements and legal rights and responsibilities related to the business
Bookkeeping and record keeping procedures to meet minimum financial and legal requirements
Award and enterprise agreements, where required
Industrial law relevant to recruitment and dismissal of employees
Creation and termination of relevant legal contracts
Duty of care imposed by Law of Torts
Relevant industry codes of practice
Relevant consumer legislation
Underpinning Skills
Literacy skills to interpret legal requirements, develop company policies and procedures and analyse compliance information
Communication, reporting and consultation skills necessary for the business operation
Time management skills to prioritise tasks and to meet datelines
Ability to relate to people from a range of social, cultural and ethnic backgrounds and physical and mental abilities
Resource Implications
The learner and trainer should have access to appropriate documentation and resources normally used in the workplace
Consistency of Performance
In order to achieve consistency of performance, evidence should be collected over a set period of time which is sufficient to include dealings with an appropriate range and variety of situations
Context /s of Assessment
Competency is demonstrated by performance of all stated criteria, including paying particular attention to the critical aspects and the knowledge and skills elaborated in the Evidence Guide, and within the scope as defined by the Range of Variables
Assessment must take account of the endorsed assessment guidelines in the Business Services Training Package
Assessment of performance requirements in this unit should be undertaken in an actual workplace or simulated environment
Assessment should reinforce the integration of the key competencies and the business services common competencies for the particular AQF level. Refer to the Key Competency Levels at the end of this unit
Key Competency Levels
Collecting , analysing and organising information (Level 3 ) - to determine business legal requirements
Communicating ideas and information (Level 2 ) - to establish business structure
Planning and organising activities (Level 3) - to comply with legal requirements for the business legal structure
Working with teams and others (Level 2 ) - to obtain compliance with legal requirements
Using mathematical ideas and techniques (Level 2 ) - to support the business operation
Solving problems (Level 3) - to reduce risk and establish business legal structure
Using technology (Level 1) - to optimise business performance
Please refer to the Assessment Guidelines for advice on how to use the Key Competencies
Range Statement
The Range Statement provides advice to interpret the scope and context of this unit of competence, allowing for differences between enterprises and workplaces. It relates to the unit as a whole and facilitates holistic assessment. The following variables may be present for this particular unit:
Legislation , codes and national standards relevant to the workplace which may include :
award and enterprise agreements and relevant industrial instruments
national, State/Territory and Local Government legislative requirements affecting business operation, especially in regard to Occupational Health and Safety and environmental issues, EEO, industrial relations and anti-discrimination
relevant industry codes of practice
Occupational Health and Safety and requirements must include :
establishing hazard management arrangements to identify workplace specific hazards
establishing hazard management arrangements to assess and control the risks associated with workplace hazards including development of written safe operating procedures
establishing OHS record keeping arrangements in accordance with regulatory requirements
developing and implementing procedures to evaluate and review effectiveness of risk control measures
the establishment and maintenance of a system for managing OHS
OHS Duty of Care responsibilities (knowledge of legislation)
And may include :
establishing arrangements to induct, train and provide information on workplace hazards and their control, to all workplace personnel
developing workplace arrangements to consult employees
Legal options for the business structure may include :
company, trust, partnership or sole trader structure or form of business recognised by law. It may be profit or non-profit based
And may be influenced by :
preferences of owners
requirements of financial backers
confidentiality
taxation
superannuation
ownership transfer
partnership considerations
Ownership transfer considerations may include :
ownership transfer may occur as a result of forced business closure, death, divorce, sale of business, buying out other partners, succession planning etc
Legislation , codes and regulatory requirements may include :
local, state, national and international legislation and regulations affecting business operations such as: business registration, planning and other permissions, license to practice, franchising, agencies, licensing eg (Real Estate Agents, Customs Brokers), fire, occupational health and safety and environmental legislation, industrial, taxation including GST, copyright, patent trademark and design regulations, codes of practice, standards and anti-competition/monopoly, anti-trust and consumer legislation, Law of Torts
Legal rights and responsibilities may include :
marketing the business in accordance with consumer legislation
operating the business with a duty of care (Law of Torts)
obligations imposed by choice of business structure
Taxation principles and requirements may include :
tax file number, Australian Business number, GST registration, PAYG and withholding arrangements
relevant taxation requirements/obligations for business
Legal documents may include :
partnership agreements, constitution documents, statutory books for companies (Register of Members, Register of Directors and Minute Books), Certificate of Incorporation, Franchise Agreements and financial documentation, appropriate software for financial records
Recordkeeping may include but is not restricted to :
personnel, financial, taxation, OHS and environmental
OHS recordkeeping may include :
workers compensation and rehabilitation;
hazardous substances register;
material safety data sheets;
manufacturers' and suppliers' information;
OHS audits and inspections;
first aid and medical; accident reports and investigations
plant maintenance and testing;
instruction&training
Insurance requirements may include :
third party bodily injury on motor vehicles
workers compensation
any other insurance cover declared mandatory by State or Federal legislation
Procurement rights to products and services may include :
royalties, copyright, patents, trademarks, registered design and applications, intellectual property, software licenses, franchises, agencies and any form of licensing
Contracts with relevant people may include :
owners, suppliers, employees, landlords, agents, distributors, customers or any person with whom the business has, or seeks to have, a performance-based relationship
The Range Statement provides advice to interpret the scope and context of this unit of competence, allowing for differences between enterprises and workplaces. It relates to the unit as a whole and facilitates holistic assessment. The following variables may be present for this particular unit:
Legislation , codes and national standards relevant to the workplace which may include :
award and enterprise agreements and relevant industrial instruments
national, State/Territory and Local Government legislative requirements affecting business operation, especially in regard to Occupational Health and Safety and environmental issues, EEO, industrial relations and anti-discrimination
relevant industry codes of practice
Occupational Health and Safety and requirements must include :
establishing hazard management arrangements to identify workplace specific hazards
establishing hazard management arrangements to assess and control the risks associated with workplace hazards including development of written safe operating procedures
establishing OHS record keeping arrangements in accordance with regulatory requirements
developing and implementing procedures to evaluate and review effectiveness of risk control measures
the establishment and maintenance of a system for managing OHS
OHS Duty of Care responsibilities (knowledge of legislation)
And may include :
establishing arrangements to induct, train and provide information on workplace hazards and their control, to all workplace personnel
developing workplace arrangements to consult employees
Legal options for the business structure may include :
company, trust, partnership or sole trader structure or form of business recognised by law. It may be profit or non-profit based
And may be influenced by :
preferences of owners
requirements of financial backers
confidentiality
taxation
superannuation
ownership transfer
partnership considerations
Ownership transfer considerations may include :
ownership transfer may occur as a result of forced business closure, death, divorce, sale of business, buying out other partners, succession planning etc
Legislation , codes and regulatory requirements may include :
local, state, national and international legislation and regulations affecting business operations such as: business registration, planning and other permissions, license to practice, franchising, agencies, licensing eg (Real Estate Agents, Customs Brokers), fire, occupational health and safety and environmental legislation, industrial, taxation including GST, copyright, patent trademark and design regulations, codes of practice, standards and anti-competition/monopoly, anti-trust and consumer legislation, Law of Torts
Legal rights and responsibilities may include :
marketing the business in accordance with consumer legislation
operating the business with a duty of care (Law of Torts)
obligations imposed by choice of business structure
Taxation principles and requirements may include :
tax file number, Australian Business number, GST registration, PAYG and withholding arrangements
relevant taxation requirements/obligations for business
Legal documents may include :
partnership agreements, constitution documents, statutory books for companies (Register of Members, Register of Directors and Minute Books), Certificate of Incorporation, Franchise Agreements and financial documentation, appropriate software for financial records
Recordkeeping may include but is not restricted to :
personnel, financial, taxation, OHS and environmental
OHS recordkeeping may include :
workers compensation and rehabilitation;
hazardous substances register;
material safety data sheets;
manufacturers' and suppliers' information;
OHS audits and inspections;
first aid and medical; accident reports and investigations
plant maintenance and testing;
instruction&training
Insurance requirements may include :
third party bodily injury on motor vehicles
workers compensation
any other insurance cover declared mandatory by State or Federal legislation
Procurement rights to products and services may include :
royalties, copyright, patents, trademarks, registered design and applications, intellectual property, software licenses, franchises, agencies and any form of licensing
Contracts with relevant people may include :
owners, suppliers, employees, landlords, agents, distributors, customers or any person with whom the business has, or seeks to have, a performance-based relationship
Unit Sector(s)
Not applicable.