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Your business and the Law

What legislation applies to your business?

All small businesses operate within a legal and regulatory framework. As a business operator, you need to be aware of the Commonwealth, State and Local Government laws that regulate the operations of your business. These include acts, regulations, policies, orders, by-laws, licenses and codes of practice.

Acts

An Act:

  • Is a statement of the law
  • Governs a particular topic e.g. health
  • Is approved as an act by parliament

Acts can also provide for the making of subordinate legislation, such as regulations.

Regulations

Regulations are rules that, when relevant to your industry, can place limits on the way in which individuals operate within that industry. They may list conditions and procedures for industry issues such as business practice, location restrictions, licences of accreditation, fees, codes of practice, quality standards, and the like.

These laws may cover a range of areas including:

  • Location controls such as local government restrictions
  • Buildings and premises
  • Business processes and practices
  • Workplace health and safety
  • Taxation, insurance and employment

As a business operator in Australia it is your responsibility to be familiar with the federal, state and local government legislation that may apply to your circumstances. Non-compliance can result in substantial penalties. It is recommended that you consult your business advisor, solicitor, and government authorities for information on these requirements.

What government controls apply to your business?

It's important to find out what licences and codes apply to your new business, as different licences, permits, registrations and certificates may be required by different levels of government.

Licences

A licence is a common name for a Government authority or approval. Licenses regulate activities, locations, events, services, equipment, premises, operators and occupations.

A licence gives you authorisation to carry on an activity or occupation. They carry the full force of law, and failure to obtain a relevant licence can result in substantial penalties for your business.

A business licence:

  • Is created by government legislation
  • Is usually handled and enforced through a federal, state, or local government agency or industry statutory body
  • Is applied for by a business owner
  • Is usually for a fixed term
  • May require payment of a fee
  • May require the applicant to fulfil certain criteria

Codes of Practice

Codes of Practice set out agreed standards and responsibilities for companies and organisations, or for whole industries. They can relate to a single business, or represent a whole industry, and may apply to business operations or the standards of goods and services offered.

A code may set out specific standards of conduct for an industry in relation to its customers. They are guidelines for fair dealing between you and your customers. They let your customers know what you as a business agree to do when dealing with them.

Usually, codes of practice are established through consultation with specific industry representatives and the community. They can be mandatory or voluntary:

  • Mandatory codes provide a minimum standard of protection to the consumers in particular industries. They are prescribed as regulations under fair trading laws and have the force of law.
  • Voluntary codes are a form of industry self-regulation. They can be sponsored by a particular industry association or they may be in partnership with a government agency. (Membership of an industry association may be a condition of the code.) Voluntary industry codes are usually flexible and can be altered quickly in response to changing industry/consumer needs.

Many businesses are subject to specific laws or licences as well as general controls.

For example:

  • A pawnbroker and second-hand dealer is required by state legislation to maintain particular records of certain transactions and to register their business with their local Police station
  • A new café bar has to comply with local council laws and guidelines relating to planning permission, commercial kitchen design, waste management, liquor licences, street signage, etc
  • A home business producing bakery items to sell at weekend markets has to conform to local council location restrictions and market stall standards, and state controls covering food packaging, handling and hygiene.

To find out which licences and codes you will need to comply with, check out the Business Licensing Information Service (BLIS).

For more information see business guides The Law and Your Business and Taxing Your Business.

Hard copies of any “How to” business guides can be attained by contacting Business Point.

Phone 1800 440 026 or email businesspoint@development.tas.gov.au