This work will be undertaken by individuals who are establishing or operating a micro business providing for self employment.

ELEMENT

PERFORMANCE CRITERIA

1. Identify the regulatory, taxation and insurance requirements of the business

1.1. Identify regulatory, taxation and insurance requirements that might be relevant to the operation of the business

1.2. Gather information that assists in interpreting and explaining the regulatory, taxation and insurance requirements

1.3. Investigate the relationships between legislation, regulations, codes of practice, associated standards and written material to determine compliance requirements of the business

2. Develop procedures to ensure compliance and risk minimisation

2.1. Identify business advisers and other sources of assistance relevant to compliance requirements and type of business

2.2. Explain to advisers business type and operations, covering the full scope of the business

2.3. Clarify and confirm compliance requirements and risk minimisation needs with advisers

2.4. Establish sources of advice and specialist services for regulatory, taxation and insurance compliance

2.5. Review advice and procedures against the compliance requirements and their appropriateness for the business

3. Implement compliance procedures

3.1. Implement procedures within the guidelines provided

3.2. Take action to ensure that the business complies with the relevant taxation and business registration requirements, legislation, regulations, codes of practice and associated standards

3.3. Arrange appropriate insurance cover for the business

Required skills

communication skills to question and seek clarification from advisers on regulatory, taxation or insurance matters

literacy skills to interpret relevant regulatory, taxation and insurance information

research skills to investigate compliance requirements.

Required knowledge

business registration and licensing requirements

commonwealth, state/territory and local government legislative requirements relating to business operation, especially in regard to occupational health and safety (OHS) and environmental issues, equal employment opportunity, industrial relations and anti-discrimination

nature of legal responsibility

relevant industry codes of practice

relevant OHS responsibilities and procedures

sources of advice and specialist services

sources of information about regulatory, taxation and insurance requirements and issues

taxation requirements.

The Evidence Guide provides advice on assessment and must be read in conjunction with the performance criteria, required skills and knowledge, range statement and the Assessment Guidelines for the Training Package.

Overview of assessment

Critical aspects for assessment and evidence required to demonstrate competency in this unit

Evidence of the following is essential:

identification of regulatory, taxation and insurance compliance requirements and risk minimisation needs of the business

identification of sources of advice on compliance and risk minimisation procedures for the business

development and review of procedures for compliance and risk minimisation (with assistance from advisers)

knowledge of legislative requirements affecting business operation.

Context of and specific resources for assessment

Assessment must ensure:

access to relevant documentation

candidate's individual circumstances and work in the context of establishing or running a micro business, are the basis for assessment.

Method of assessment

A range of assessment methods should be used to assess practical skills and knowledge. The following examples are appropriate for this unit:

oral or audio-visual presentation of a case study of a micro business in similar field and location as candidate's proposal

portfolio of evidence including identification of relevant compliance and risk minimisation needs for the micro business, and development of risk minimisation and compliance procedures (with assistance from advisers)

review of implementation of procedures

review of insurance cover arranged for the business.

Guidance information for assessment

Holistic assessment with other units relevant to the industry sector, workplace and job role is recommended, for example:

BSBSMB302A Develop a micro business proposal.

The range statement relates to the unit of competency as a whole. It allows for different work environments and situations that may affect performance. Bold italicised wording, if used in the performance criteria, is detailed below. Essential operating conditions that may be present with training and assessment (depending on the work situation, needs of the candidate, accessibility of the item, and local industry and regional contexts) may also be included.

Regulatory, taxation and insurance requirements may include:

local, state/territory, commonwealth and international legislation, regulations and codes of practice affecting business operations such as:

Acts and regulations

industry and OHS codes of practice

business registrations and licences

planning and other permissions

environmental legislation

industrial law, agency law, property law, consumer legislation and standards, Torts Law and duty of care

equal employment opportunity (EEO) and anti-discrimination legislation

anti-competition regulations

Information gathered may include:

government agencies

industry associations

internet

written material

Taxation requirements may include:

Australian Business Number

Business Activity Statement and goods and services tax (GST) returns

GST registration

PAYG and withholding arrangements

tax file number

Insurance requirements may include:

comprehensive insurance for vehicles/property

professional indemnity insurance

public liability insurance

third party insurance on motor vehicles

workers compensation

other insurance cover as required by state/territory or commonwealth legislation, contractual obligations or as recommended for the industry/type of business

Sources of advice and specialist services may include:

accountants

business advisers

financial planners and insurance brokers

funding bodies

government agencies (for example, Indigenous Business Australia, Office of Aboriginal Economic Development)

industry/trade associations

insurance brokers

lawyers

Unit sector

Management and Leadership - Small and Micro Business

This unit contains employability skills.