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Part 2 - Small business resources

2.1 Accountants and financial advisers

Accountants

It is important to have an independent view of your business situation. Securing the assistance of a qualified and reliable accountant or other financial adviser can be of great benefit to you and your business. Most accounting firms or small business advice firms provide services in:

  • All aspects of taxation (for example, GST, BAS, PAYG, capital gains).
  • Setting up a business.
  • Business planning and cost analysis.
  • Business structures and company formation.
  • Record systems, bookkeeping.
  • Estate planning.
  • Finance advice.
  • Planning for future expansion.
  • Problems with debtors and creditors.
  • Superannuation and investment services.

How to choose an accountant

Qualified accountants usually have the words ‘chartered’ or ‘certified’ attached to their title. They also usually belong to one of the professional associations for accountancy.

Many businesses find accountants through personal recommendation. It can be helpful to ask your union or industry association, forestry contractor colleagues, friends and family if they can recommend a good accountant who understands small businesses in the forestry industry. However, what is right for one business is not necessarily right for yours. If you can, shop around, and meet with several firms. Find someone you feel comfortable with, and discuss your needs and the fees to be charged.

Take with you to the first interview:

  • a written list of the questions you want to ask; and
  • an overview of your business – if you have a business plan give the accountant a copy. If you do not have a business plan, provide the accountant with a written summary of your plans.

Importantly, it is not the best time to start looking for an accountant just before you need to use one, especially around tax time. You need to allow plenty of time for preparation of end of financial year accounts.

Bookkeepers

If you want assistance with keeping your accounts and preparing your Business Activity Statements (BAS), you may wish to engage a bookkeeper rather than a qualified accountant.

A bookkeeper generally does not provide strategic business advice but should keep your financial and tax records in good order and is generally cheaper than a qualified accountant. Talk to your bookkeeper about how you should keep your records to make their job easier, especially if you are paying them an hourly rate. A local bookkeeper is a good idea, as you will be visiting them frequently.

More Information

The following associations have websites that allow you to search for a qualified professional in your area:

2.2 Business advice services

There is help available to help plan your business and to turn things around if you get into trouble. Both government and non-government agencies conduct a range of business support and mentoring services.

Business Victoria

Business Victoria is a ‘one-stop-shop’ to access all small business focussed government resources. The Business Victoria website provides assistance and information on:

  • buying, starting or selling a business.
  • business development, training programs and support services.
  • managing and improving your business.
  • employing staff.
  • tax matters.
  • financial management.
  • licences, regulations and taxation.

More Information

Victorian Government Business Offices

Victorian Government Business Offices (VBGOs) are conveniently located in Melbourne and regional locations and provide face-to-face services for small businesses, including:

  • how to find the business information you need.
  • information about small business training and support programs and resources.
  • referrals to specialists.
  • Business-related workshops and seminars.

More Information

Small Business Mentoring Service

The Small Business Mentoring Service (SBMS) is an independent, not-for-profit organisation, which provides advice and mentoring services to small businesses throughout Victoria. SBMS counsellors have practical business experience, and can assist small businesses to grow and be successful.

The SBMS charges a small fee to cover administration costs and counsellors’ out-of-pocket expenses. Sessions run for one to two hours.

To find a counsellor, visit the SBMS website and submit a request online. You may wish to search for a counsellor with expertise in accounting, risk management, insurance or cash flow management.

More Information

Business Enterprise Centres

Business Enterprise Centres (BECs) provide advice to new and existing small businesses. BECs are located throughout metropolitan and regional Victoria. They are community-based organisations and their services are free. BECs also offer a broad range of training programs through TAFE Institutes. BECs can assist small businesses with:

  • practical business assistance.
  • referral to specialist advisers.
  • obtaining an understanding of government departments and regulations.
  • problem solving.
  • preparing business plans.
  • accessing business information.
  • networking.

More Information

  • Contact details for all metropolitan and regional BECs can be found on the Business Enterprise Centres website at www.becaustralia.org.au.

Forestry Better Business Program

ForestWorks is an industry owned not-for-profit organisation offering skills development and recognition within the forestry industry.

ForestWorks, in collaboration with industry, the Australian Forest Contractors Association (AFCA) and forest managers/growers, has developed the Forestry Better Business Program. The Forestry Better Business Program recognises professional businesses operating to high standards in the forest industry.

The online program helps forest managers and forestry contracting businesses, by clearly describing and documenting industry standards under four key areas:

  • Safety
  • Economic
  • Environment
  • Social

More Information

You may need the services of a lawyer to advise and negotiate contracts or act for you in a dispute.

Your union or association may be able to help you with legal problems or refer you to a lawyer. The Law Institute of Victoria (LIV) is the professional organisation for lawyers in Victoria. Its website provides information on a broad range of legal issues. The Law Institute’s website provides guidance on choosing a lawyer and offers a referral service and a free 30-minute consultation.

More Information

2.4 Business planning and risk

A business plan is a record of how you will run your business, and how you intend to identify and manage opportunities and challenges. This provides a roadmap that can help improve and even expand your business and can help secure your finance needs.

A business plan should include the following:

  • an overview and vision of your business;
  • an analysis of your market, including present and future sources of work;
  • what business structure to use;
  • how your business will be managed;
  • an estimate of establishment and running costs, including financing your vehicle;
  • possible changes to things such as fuel costs and interest rates;
  • expected cash flow;
  • your projected profit and loss;
  • a balance sheet (which brings together the results from your profit and loss and cash flow statements);
  • your margin, mark-up and break-even point;
  • expected return on investment;
  • a risk management plan; and
  • an action plan to implement your identified goals.

Having a risk management plan will help if you run into problems, such as having an accident which leaves you unable to work. When writing your risk management plan, you should be able to answer the following questions:

  • What risks am I facing?
  • What level of financial risk should I accept?
  • What is the likelihood of each risk?
  • What will I do if things do not go according to plan?
  • What consequences could be caused by each risk?
  • What can I do to minimise the risks to my business?

Your vehicle or equipment

Choosing the right vehicle or equipment is vital, as it can mean the difference between making a profit or loss. Make sure your vehicle/equipment is suited to the type of work you plan to carry out, as restrictions apply to some vehicles/equipment. For example, if you transport dangerous goods, special vehicles and equipment are required. There are also restrictions on the use of some vehicles such as B-doubles, which have a greater mass limit and can move more goods but are only allowed to operate on specific routes.

More Information on Business Planning

2.5 Business structures

There are several ways of operating a business. The legal structure you choose will affect your tax liability, how your business can be sold, and whether your personal assets are protected. To pay your business taxes, claim deductions for business expenses, open accounts and trade legally, you need to choose the right business structure for you. Below is a general summary of different business structures you could consider, but you must obtain your own independent advice before establishing your preferred business structure:

  • Sole trader – a sole trader is an individual who carries on a business as the only owner or under a registered business name. The structure is inexpensive to set up because there are few legal and tax formalities. However, liability for business debts is unlimited. This means that if the business fails, liability for debts extends not only to the business assets, but also to the sole trader’s total personal assets.
  • Partnership – a partnership is formed when between two and 20 people go into business. A partnership is inexpensive to set up and operate. A partnership agreement is common, but not essential. However, liability for business debts is unlimited, meaning it extends to each partner’s total personal assets.
  • Company – an incorporated company is a separate legal entity, regulated by the Australian Securities and Investments Commission (ASIC). It has members (shareholders) who own the company, and directors who run it. However, if you are an independent contractor you can set up a ‘one-person company’, as the sole director and member. Running your business as a company has higher set-up costs and administrative costs because of additional reporting requirements. A company provides some asset protection, but directors can be legally liable for their actions and, in some cases, the debts of a company.
  • Trading trust – under a trading trust, the trustee manages property or income for beneficiaries. A trust deed outlines how the trust is to operate. Setting up a trust can be expensive, as a formal deed is required, and there are formal yearly administrative tasks for the trustee to undertake. If you operate your business as a trust, the trustee is legally responsible for its operations. A trustee of a trust can be a company.

More Information

  • Go to the ASIC website www.asic.gov.au for detailed information about the establishment of company structures and business name registration.
  • Go to the Business Victoria website www.business.vic.gov.au for an overview of different business structures.
  • Seek advice from your lawyer, accountant, business or financial adviser.

2.6 Buying into an existing franchise

Goodwill or entry payments

Goodwill payments create a higher entry price into an industry, meaning margins are tighter and it is harder to make a profit. They have also been the cause of unfairness and disputes. For example:

  • New contractors paying goodwill for a vehicle that is under an existing contract, in the expectation they will get the work, but then not being taken on by the hirer and losing the money they paid as goodwill.
  • Contractors paying a goodwill payment to get into the work, but then not being able to recover that payment when they decide to leave the business later.

‘Goodwill’ means a payment that is over and above the market price of a vehicle that you are buying from another person. It is a payment for the value of the business and is usually paid in the expectation that the equipment will be sold as ‘in work’, under an existing contract.

Franchise fees

Paying for the rights to run a business with an established name, marketing and operating procedures offers a new business owner guidance and assistance. However, it also means you need to follow the franchisor’s system of running and marketing the business, which may not suit you.

Franchise fees are sometimes requested as a condition for the right to operate as a driver in a geographical area for a business.

More Information

  • Seek advice from your union, lawyer, accountant or financial adviser.

2.7 Customer service

The forestry industry has become more efficient and professional, with customers expecting a higher level of service. It is therefore important that hirers and forestry contractors understand and agree on how customer service standards are to be met as disputes may arise where a party considers that there is a breakdown of customer service standards.

2.8 Negotiating a contract

When starting with a hirer, you need to consider the arrangements for work and income you will receive. Carefully read any contract you are offered and ask questions if you are not sure of anything. Refer to sections 1.3 and 1.5 for more information about contracts and joint negotiations.

Plan your approach when negotiating contract terms with a new or existing hirer. Before you discuss a new job with a potential hirer, write yourself a list of questions you want to ask such as:

Rates and payment

  • How are they calculated?
  • Does the customer pay a fuel levy to cover any rises in fuel costs? How often is it varied and is 100 per cent of the fuel increase passed on?
  • When are your invoices paid? Note hirers' obligations in relation to payment of invoices: see 24A of the Act.
  • Are there a guaranteed number of hours or guaranteed earnings? Will you be guaranteed enough work to cover your outgoing expenses? Note that the agreed minimum must be reflected in your written contract: see section 20 of the Act.
  • What do other forestry contractors with the same Hirer typically earn each week and year?
  • Who raises the invoice? For example, does the hirer work on a reverse billing arrangement and how will you reconcile the account?
  • What are the paperwork and documentation requirements to support the payments?
  • What information and communications equipment or technology do you need to perform the work, and who provides, maintains and pays for it?
  • Are there any deductions from the payments for goods or services (e.g. insurance, administration charges)? How much? Note hirers’ obligations in relation to deductions: see sections 23 and 24 of the Act.
  • From what times do the task and related payments start and finish?
  • Are you paid for training?

Hours of work

  • What are the usual hours of work?
  • Are you required to work on weekends, nights or public holidays?
  • Can you refuse an offer of work if it does not suit you?
  • Where do you park your vehicle?
  • Does the hirer or customer provide parking? If not, how are overnight/stick-up loads kept secure?

Security and contract terms

  • Are there are any close down periods?
  • Do you need to have the hirer or customer’s livery or logo on your vehicle, and who provides, maintains and pays for this?
  • Are there quiet periods during the year? What factors cause work to drop off or increase?
  • Are you permitted to work for another business?
  • What are the arrangements if you are ill or need a break?
  • Can you use a replacement driver?
  • Is the business’s work and client base secure?
  • What are the contract arrangements? (Note that sections 19 and 20 of the Act require hirers to ensure ongoing contracts of no fixed duration or for a period of at least 30 days are in writing).

Safety

  • What are the safety management system reporting requirements?
  • Is the company accredited under the National Heavy Vehicle Accreditation Scheme (or another relevant scheme)?
  • What is the company’s safety record and approach to chain of responsibility requirements?
  • Do you have to attend or pass any customer related inductions or training to perform the work?

More Information

  • Section 1.3 of this Information Booklet provides information on ‘Contract requirements’.
  • Section 1.5 of this Information Booklet provides information on ‘Joint negotiations’.
  • Clause 5 and Part 5 of the Code provides more details on ‘Best practice in negotiations’.
  • Section 3.11 of this Information Booklet provides further information on ‘Chain of responsibility’.
  • Section 1.9 of this Information Booklet provides information on the dispute resolution process.
  • Seek advice from your lawyer, accountant or financial adviser.

2.9 Understanding your business costs

You will need to have a good understanding of how much it costs to run your vehicle and your business. It is important to have a well-prepared budget to understand your business costs, for the following reasons:

  • It will assist you to manage your finances and cash flow and provide an easy way of setting goals and working out budgets and forecasts.
  • You can make decisions on what rates of pay are reasonable – this will help you negotiate with your hirer and compare the benefits of different jobs.
  • Whether you are paid by the load, the hour or the kilometre, you need to know your costs and be able to convert them from a per-hour to a per-kilometre or per-load figure and vice versa.
  • Information about your costs is essential when borrowing money to update your vehicle or expand your business. When planning to change vehicles, you need to know how your costs will change and make sure that you can make a reasonable profit.

Preparing financial statements

Financial statements should be prepared regularly and give key information to help you improve your business.

Financial statements should include the following:

  • Establishment costs – this is a list of the expenses incurred to set up a business until it becomes established and starts to make a profit. Establishment costs are ‘one-off’ costs that are not repeated.
  • Profit and loss statement – this is a summary of income and expenses for your business over a period. It is prepared at regular intervals, usually monthly and at the end of the financial year. New businesses should calculate profit-and-loss statements monthly and include establishment costs. It is important not to overestimate your revenue and not to underestimate your establishment costs and ongoing expenses.
  • Cash flow statement – a cash flow statement is an important part of the business plan. Regardless of normal business ‘ups and downs’, it is critical that you do not run out of cash. The cash flow statement is a record of when all income is received and when all payments are made by the business for ongoing essentials, such as taxation payments.
  • Balance sheet – the balance sheet is a snapshot of the financial health of a business on a given day. You would normally complete a balance sheet at the end of a month or financial year.

More Information

  • Seek advice from your industry association, union, lawyer, accountant or financial adviser.

Your cost structures

Clause 11 of the Code establishes principles for forestry contractors and hirers to set and review rates to be paid under a contract.

In summary, hirers should offer and pay forestry contractors remuneration that, considering the contract as a whole, the services to be performed, and the general market for the services, supports each of the elements of remuneration which are:

  • an amount that represents the recovery of fixed and variable costs incurred in performing the services required;
  • an amount that represents a fair return for the forestry contractor’s labour; and
  • an amount that represents a return on the forestry contractor’s investment.

The Code describes the factors that influence what you can expect as a return on investment, such as:

  • the amount of the capital investment in the vehicle or equipment;
  • the level of commercial risk assumed by the forestry contractor;
  • the security and certainty of the arrangements;
  • whether the vehicle or equipment provided by the forestry contractor can readily be used to provide services to other persons;
  • whether the vehicle or equipment is also used for personal use;
  • the efficiency and productivity of the forestry contractor; and
  • the market for the services.

The amount that is a reasonable return on investment will vary widely in all the circumstances and may vary over time as market conditions change.

Reducing your overhead costs

Several websites and ‘apps’ provide information on where to find the cheapest fuel each day. Plan on where and when you are going to fill up and you could make savings in the end.

You may also want to consider a group-buying scheme for major purchases. By coordinating with other forestry contractors or with your hirer, you might be able to get significant group discounts on the purchase of new vehicles or equipment, maintenance and servicing, tyres, oil and other costs.

More Information

  • Go to the RACV website www.racv.com.au to find the cheapest fuel prices in your area.

Your terms for payment

The terms for payment of your invoices are critical, especially if you are carrying your fuel costs on an overdraft or on credit.

Under the Act, hirers are required to pay you within 30 days after receiving an invoice unless there is a dispute about the amount payable or you have agreed to a different payment period and that period is not unfair to you or the Hirer (see 1.3 of this Information Booklet for more information).

The Code also notes that payment terms of more than 30 days are likely to be considered unjust, unless unusual circumstances apply. If you believe that you should have been paid within 30 days after receiving an invoice but have not been, or that your payment terms are unfair, you can notify a dispute to the VSBC (see section 1.9 of this Information Booklet for more information on the dispute resolution process).

If you are not paid or are short-paid, first speak with your hirer and seek a commitment to the payment. Tell your hirer upfront that you require payment in accordance with your contract terms. Keep a diary note about who you spoke to, what they undertook to do and by when.

If your hirer continues not to pay you, you may wish to reconsider whether you continue to offer services, as this may indicate business failure and you may never get paid or not for a very long time. If you find yourself in this situation seek urgent advice from your union, lawyer, accountant or other business adviser. Under the Act, you are entitled to raise a dispute.

Insurance

An insurance policy that is right for your business needs can protect you against a range of risks or events, such as theft of equipment. Adequate insurance is essential for all businesses, as it reduces the risk of an accident or illness resulting in you losing your business. The following overview sets out of the main types of insurance policies to consider for your business:

WorkSafe insurance

WorkSafe insurance is a compulsory insurance for Victorian employers that is funded by their contributions. It provides employers with insurance cover for the cost of benefits if their workers are injured or become ill because of their work. It does not cover conditions that are not work-related (such as sporting injuries or general ill health).

Employers are required to take out WorkSafe insurance for their employees. Hirers may also be required to pay WorkSafe premiums in relation to forestry contractors (even incorporated forestry contractors) where the forestry contractor generally works for the one hirer.

You must take out a WorkSafe insurance policy if you:

  • expect to pay more than $7,500 in a financial year in rateable remuneration (includes wages and other benefits, contact WorkSafe for more information); or
  • have any apprentices or trainees. This applies even if you are a small business with only one worker.

If you trade using a company structure or a trading trust and are an employee of your own business, then your business may be required to take out a policy on your behalf.

The obligations under WorkSafe will vary depending on the individual circumstances of your business. You should seek expert advice from your accountant, industry association or union, and WorkSafe.

Comprehensive vehicle and equipment insurance

Comprehensive vehicle and equipment insurance covers damage to your vehicle/ equipment or someone else’s property.

While a Transport Accident Commission charge is a compulsory insurance paid as part of your vehicle registration, which covers you from potential liability for personal injury to another person in a road accident, it does not cover any property damage.

Trailer in control insurance

Trailer in control insurance refers to Non-Owned Trailers which are towed by prime mover operators. Trailer in control insurance covers you against any potential damage to the Non-Owned Trailer because of the prime-mover operators’ negligence.

Public liability insurance

Public liability insurance covers your potential liability to third parties for personal injury or property damage if you or your business is found to be negligent. This protects you if any of your actions (including off-road actions) cause injury to another person or damage to property.

Goods in transit insurance

Depending on your individual contract arrangements, you should consider insuring against property loss or damage while it is in transit from one place to another or being stored during a journey.

Income protection insurance

Income protection insurance is designed to provide replacement income to individuals who are unable to work due to illness or injury.

More Information

  • Contact WorkSafe on 1800 136 089 or go to www.worksafe.vic.gov.au and search under the Insurance section for premium rulings applying to the forestry or transport industry.
  • Go to the Business Victoria website at www.business.vic.gov.au for information on different types of insurance for small businesses.

Taxation

A range of taxes may apply to your business operations, depending on the business size and location. Understanding taxes and the deductions and exemptions you may be able to claim can save you money. You do not want to pay too much tax or be penalised for late payment.

Contact the Australian Taxation Office (ATO) to find out about:

  • personal services income (PSI);
  • business income tax;
  • fringe benefits tax (FBT);
  • goods and services tax (GST);
  • capital gains tax (CGT);
  • Pay as You Go (PAYG) withholding;
  • super guarantee contributions;
  • business activity statements (BAS), including dates for lodgement and payment; and
  • accounts and business registration, including Australian Business Numbers (ABNs) and Tax File Numbers (TFNs).

More Information

Go to the ATO website www.ato.gov.au for information about taxation requirements or telephone 13 28 66 for further information and details for your local tax basics seminar coordinator.

  • Go to the Business Victoria website at www.business.vic.gov.au.
  • Seek advice from your lawyer, accountant, business or financial adviser.

Financial problems

Help is available if you get into financial difficulty. Banks, the ATO and other creditors may be able to help. Do not ignore creditors and your situation.

If you cannot pay your debts, ask your accountant or financial adviser for advice straight away. Your adviser can help you prepare a written business survival plan to give to your bank and to negotiate alternative payment arrangements with creditors. There are accountants who specialise in turning around struggling businesses. If the business cannot be saved, they may be able to advise on the various forms of insolvency administration.

2.10 Record keeping

It is essential to keep proper business records to satisfy a range of legal requirements, such as for taxation purposes. Retaining appropriate records can also show the hirer that you have met your contractual requirements.

It is good business practice to keep the types of records set out below. This list is not intended to be an exhaustive statement of your legal record-keeping obligations.

Financial records

  • copies of invoices and receipts you have provided;
  • invoices for goods or services purchased;
  • payments to employees and to other organisations on behalf of employees, for example superannuation and PAYG tax;
  • financial statements including the profit-and-loss statement and a balance sheet;
  • tax returns and supporting information;
  • bank account and credit card statements; and
  • lists of debtors and creditors.

Business records

  • contracts, lease agreements, insurance agreements and other legal documents;
  • licences and permits;
  • daily job and trip records for invoicing;
  • written time and wages records for employees, which should include pay, hours of work, leave and superannuation contributions;
  • safety records;
  • full details of warranties for vehicles and equipment; and
  • any other records which are ‘business activity’ specific and which are required by law for the operation of your business.

Other types of records

  • file notes of conversations with hirers;
  • vehicle maintenance and service records; and
  • work diaries and other records as required by heavy vehicle fatigue management laws (see section 3.11 of this Information Booklet for more information).

More Information

  • Telephone the ATO on 13 28 66 or go to www.ato.gov.au.
  • Go to the Business Victoria website at www.business.vic.gov.au for information on record keeping for small businesses.
  • Go to the Fair Work Ombudsman’s website at www.fairwork.gov.au for information on records that an employer must keep in relation to employees.
  • Seek advice from your lawyer, accountant or financial adviser.

2.11 Engaging substitute drivers or operators

You may need to hire a substitute driver or operator to run a second shift or if you are ill.

You should discuss the use of a substitute driver or operator with your hirer. If you need help finding a substitute driver or operator, your hirer or another forestry contractor may be able to recommend someone. Alternatively, a labour hire agency may be able to supply you with a driver (you must check that they can operate under the Victorian labour hire licensing scheme). A substitute driver could be engaged in one of the following ways:

As an employee, employees:

  • receive payment as wages or salary;
  • have their tax taken out by their employer;
  • can be engaged on an ongoing or fixed-term basis, and can be full-time, part-time or casual; and
  • can be directed when, what and how to do a task.

As a contractor, contractors:

  • invoice for their work instead of receiving wages;
  • run their own business;
  • have their own insurance;
  • are engaged to perform set tasks, such as driving a vehicle to Sydney; and
  • may work for more than one hirer.

It is important to note that if you engage a contractor who provides their own vehicle, you are now a hirer of that forestry contractor under the Act and the Code and must meet all the obligations as a hirer.

As a labour hire worker through an agency, the agency:

  • employs the worker and then on-hires them to you;
  • pays the worker’s wages and other entitlements; and
  • charges you a commission, agency or finder’s fee for the worker’s services.

More Information

Go to the Business Victoria website at www.business.vic.gov.au for a guide to employing people.

2.12 Industry associations and unions

There are several organisations who play a role in the forestry industry.

Australian Forest Contractors Association (AFCA): AFCA’s primary purpose is to advocate on behalf of members to improve business outcomes and conditions for Forestry Contracting Businesses.

Australian Forest Products Association (AFPA): AFPA is the peak national industry body representing the resources, processing, and pulp and paper industries covering the forest products value chain.

Construction, Forestry, Maritime, Mining and Energy Union (CFMMEU): The CFMMEU is Australia's main trade union in building and construction, forestry and furnishing products, the maritime industry, mining and energy production.

Forest & Wood Products Australia (FWPA): The FWPA is a not-for-profit company that provides national, integrated research and development services to the Australian forest and wood products industry.

ForestWorks: ForestWorks is an industry owned not-for-profit organisation offering skills development services for industry.

Victorian Forest Products Association (VFPA): VFPA is the peak industry body representing the forest products value chain in Victoria.

VicForests: VicForests is a government business enterprise responsible for the harvesting and sale of commercial timber resources in State forests in Eastern Victoria.

More Information

For more information on:

2.13 Learning resources and tools

Skills standards and qualification resources

ForestWorks has several resources to assist training delivery in the forest, wood, paper and timber products industry. These resources align to specific skills standards and qualifications.

Workplace learning tools

ForestWorks has developed workplace learning tools to help enterprises identify the different foundation skills gaps that exist in their workplace and how they may be impacting the day-to-day operations of their business.

More Information

2.14 Industrial relations and human resource management

General protections

The general protections of the Fair Work Act 2009 are intended to:

  • protect workplace rights;
  • protect freedom of association;
  • provide protection from workplace discrimination; and
  • provide effective relief for persons who have been discriminated against, victimised, or have experienced other unfair treatment.

A person (such as an employer) must not take any 'adverse action' against another person (such as an employee or independent contractor), because that person has a workplace right, has exercised a workplace right or proposes to exercise that workplace right.

Adverse actions that can be taken against an employee/independent contractor or potential employee/independent contractor might include:

  • dismissing them
  • not giving them their legal entitlements
  • changing their job to their disadvantage
  • treating them differently than others
  • not hiring them
  • offering them different (and unfair) terms and conditions, compared to other employees.

Who do general protections laws apply to?

General protections laws apply to:

  • employees and prospective employees
  • employers and prospective employers
  • independent contractors and prospective independent contractors
  • a person who has entered into or who has proposed to enter into a contract for services with an independent contractor
  • an industrial association, including an officer or member of an industrial association.

More Information

2.15 Managing staff

Business Victoria provides a range of support materials and tools to assist you hire and manage your staff your staff, including:

  • employment types and hiring options;
  • staff recruitment;
  • employer responsibilities and staff leave.
  • long service leave in Victoria;
  • staff management;
  • employing children; and
  • ending employment.

More Information

Managing investments/succession planning

Business Victoria provides a range of support materials and tools to assist you with managing investments and succession planning, including:

  • Raising funds for your business;
  • Six steps to increase your business value before selling;
  • Find a buyer or successor for your business; and
  • Financial and legal preparation before selling your business.

More Information

2.16 Contract assignment/transfer to another party

One pathway to work as a harvest or haulage contractor is to secure a contract by assignment from an existing contractor who has an agreement with a hirer to provide harvest and/or haulage services.

Often contractors with longer term agreements wish to cease providing their contracted services several years before their agreement is due to run out. In these instances, they will often seek to assign the agreement to another party. In many cases a hirer will need to endorse or approve the assignment and, provided you are able to provide the same level of service as the assignor (the party wishing to assign the contract), there should be no problems with the hirer approving the arrangement. Most contracts will include details regarding whether an agreement can be assigned or not and what conditions a hirer may require as part of the assignment process. It is important to seek legal advice prior to considering an assignment.

If you have your own equipment, you may not wish to buy the equipment of the assignor as part of the assignment. However, some contractors who do not have the equipment will often purchase equipment of the assignor to ensure they are able to provide the required services under the agreement.

Most assignments require a Deed of Assignment to be executed by the three parties involved: the assignor (the party wanting to assign the agreement), the assignee (the party wishing to take over the requirements of the agreement) and the hirer.

It is important that you do not pay any money as part of this process until after such time as a Deed of Assignment has been executed. It is not wise to buy equipment until you are guaranteed that work for the equipment is secured through the Deed of Assignment.

2.17 Certification requirements

Many forest owners/managers or mill operators will have their management and environmental systems certified to a range of standards so that they can guarantee to their customers that they are conducting harvesting operations to a certifiable standard.

It is important that you are aware of what standard your hirer is working under and understand the requirements of that standard because compliance auditors will often visit forest operations to ensure that standards are being maintained.

There are a range of standards which managing entities seek to achieve. The principle ones are:

Responsible Wood

Responsible Wood oversees the operation of the Responsible Wood Certification Scheme that applies to forest management and chain of custody certification in Australia. This Scheme includes Standards, Rulings, Scheme Rules and Directives, which collectively provide the mandatory requirements for certification bodies and scheme participants.

Certification of compliance with the Australian Standard for Sustainable Forest Management (AS4708) and the Australian Standard for Chain of Custody of Forest Products (AS4707) is not carried out by Responsible Wood itself, but by independent third-parties known as accredited certification bodies.

Certification bodies also perform annual surveillance audits and periodic re-assessment audits to verify proactively that a certified forest manager or chain of custody certified company maintains compliance with Responsible Wood requirements.

The Responsible Wood Certification Scheme is recognised under the Programme for the Endorsement of Forest Certification(opens in a new window) (PEFC).

Forest Stewardship Council (FSC)

FSC is an independent not-for-profit organization. FSC has a global forest certification system that has two key components:

  • Forest Management (FM) certification; and
  • Chain of Custody (CoC) certification about the production and source of FSC-certified products, which is for businesses manufacturing or trading forest products.

More Information

2.18 Skills verification

FOLS is the national skills verification program for industry. It is an industry-led system that supports the professionalism and safety of industry through a national electronic system of recording and verifying the training and currency of workers’ skills.

More Information

2.19 Contract management

When entering a contract, forestry contractors need to be satisfied that the contract enables them to operate sustainably. The FIC’s rates and costs schedules have been developed to assist you when entering negotiations with a hirer. For further information regarding contract negotiations, see section 2.8 of this Information Booklet.

Updated

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