You are on page 1of 13

Table of Contents

Part. A..................................................................................................1
I. Introduction.................................................................................1
1. Overview of the business............................................1
2. Target Market:..............................................................2
II. Core Activities:..............................................................................2
III. Business Structure.......................................................................3
1. Advantages and Disadvantages of Business:.............3
IV. Legal Requirements....................................................................4
PART B................................................................................................4
V. 10 Licenses and Permit listed:....................................................5
VI. OBLIGATIONS:............................................................................6
1. Basic taxation to operate a business...........................6
2. Superannuation obligations:........................................6
3. Fair work obligations:...................................................7
4. Privacy obligations:......................................................7
5. Fairtrade Australian consumer law obligations:...........7
VII. Insurance Policy..........................................................................8
1. Compulsory Insurance Policies...................................8
2. Asset Protection Insurance Policies............................8
3. Income Protection Insurance Policies.........................9
VIII. Scenario where legal advice obtained...................................9
IX. Conclusion:.................................................................................11
X. Reference:....................................................................................12
Part. A

I. Introduction
1. Overview of the business

DoubleTree by Hilton is a hotel


located in Northbridge, Perth’s
trendy food and boutique shopping
area. The Perth Cultural Centre, the
Art Gallery of Western Australia, and
the shopping precinct are all within a
two-minute walk. At the pool or
sauna, guests may unwind in
elegance. Each room at the
DoubleTree is warm and inviting,
with high-quality bed linens and
bathrobes. Customers will find all of
the furnishings to be modern and
simple to utilize.
The hotel's versatile event
space measures 310 square meters
and has four conference rooms, two
of which have natural light. A/V
equipment of the highest quality,
catering, and event organizing.
HealthLand Family Wellness Centre
has a spa and other treatments
available, as well as an open pool
deck with spectacular views of the
city.
James St.Bar + Kitchen, the property's on-site restaurant, is open for
breakfast, lunch, and dinner. This beautiful hotel in a modern glass-and-steel tower
is located along a tree-lined boulevard, a 5-minute walk from both Perth railway
station and Western Australian Museum, and 2 kilometers from Kings Park and
Botanic Garden. A hotel's target market is a defined subset of all hotel guests from
whom it hopes to gain business. This could include both business travelers and
vacationing families looking for a hotel near an airport or conference center.
Business hour: 24/7
2. Target Market:

International, domestic, and family travelers are all welcome.


II. Core Activities:

The business offers these products, services, and features:

 24h reception

 Conference Facilities

 On-site parking

 A fully-equipped Fitness Gym

 Non-smoking

 Meeting and Event

 High-speed free Wi-Fi

 On-site restaurant

In a feel-good, cheerful setting, James Street Bar & Kitchen gives a modern
approach to casual food and creates diverse Western Australian meals.

Monday – Friday: 7:00AM – 9:00PM


OPENING
Saturday: 7:00AM – Late
HOURS:
Sunday: 7:00AM – 9:00PM

III. Business Structure


Hilton Worldwide owns and operates DoubleTree Hilton, an American hotel
business. The majority of DoubleTree hotels are owned and run by franchisees, but
Hilton Worldwide manages a few.  Since 2007, DoubleTree has been the Hilton
brand with the most properties, and from 2007 to 2015, it had the most rooms, until
Hilton Garden Inn added more rooms in 2016.

From serving the local community and providing a signature warm


DoubleTree chocolate chip cookie at check-in to innovating for the future through
contemporary accommodations and amenities, DoubleTree by Hilton has maintained
its philosophy of making guests feel at ease while traveling for more than 50 years.

1. Advantages and Disadvantages of Business:

Advantages Disadvantages
• Shareholders' liability is limited; • The company's formation,
maintenance, and dissolution can be
• It's simple to transfer ownership by costly;
selling shares to a third party; and
• The reporting requirements can be
• Shareholders (typically family complicated;
members) can work for the company.
• The company's financial concerns are
• The organization can conduct open to the public.
business throughout Australia.
• Directors may be held personally
• Tax rates can be lower, and you'll accountable for the company's debts if
have access to more capital and talents. they fail to meet their legal
commitments.

• Dividends paid to shareholders are


taxed.

IV. Legal Requirements

1. Business Name: assists audiences/customers in recognizing and


distinguishing one product or service from another. It's a made-up trade name
that's used for identification in marketing, advertising, business, and selling.
2. Australian Business Number (ABN): An ABN is a unique 11 digit number that
makes it easier to identifies business to the government and community. It
is used to:

 Identify business to others when ordering and invoicing


 Avoid pay as you go (PAYG) tax on payments you get
 Claim goods and services tax (GST) credits
 Claim energy grants credits
 Get an Australian domain name

3. Goods and Services Tax (GST): is a ten percent tax on almost all goods,
services, and other items sold or consumed in Australia.
4. Tax File Number (TFN): is a tax and superannuation personal reference
number obtained from the Australian Taxation Office (ATO).
5. Pay As You Go (PAYG) withholding Tax: It is a withholding tax that requires
businesses to pay the ATO an additional portion of their business income.
These contributions will be applied to your anticipated income tax liability at
the end of the year.
PART B
V. 10 Licenses and Permit listed:

Licenses/Permit Published By Cost of Licenses Penalty and Risk


(Maybe)
Approval to Operate a North Sydney 125.00$ Failure to comply
Public Swimming Pool Council would result in a
or Spa settlement and
additional
sanctions for
violating the
privacy of
customers or
others.
Australian Business Australian No fees are Failure to comply
Number Government required. would result in
Registration settlement and
further fines
Goods and Services Australian No fees are Further expensive
Tax (GST) Government required. tax fines
Registration
Hotel Licence (Liquor) New South Wales Fees are listed on Fines, Settlement
the attached
document.
Recognized New South Wales The competency Maximum penalty
Competency Card card fee is of $5,514 for
(Liquor) included in the individuals
training course
fee.
National Business Australian 37.00$ - Copyright Name
Name Registration Government Registration for
one year. 87.00$ -
Registration for
three years
Recognised New South Wales $41.00 Unsecured
Competency Card
(Gaming)
Swimming Pool North Sydney Free if you Child Safety,
Registration Council - New South register online or Barrier Unsafety
Wales the Council can
register on your
behalf for a fee of
up to $10.
Tobacco and e- New South Wales No fees are Fines, Settlement
Cigarette Retailing required.
Notification
Approval to Manage New South Wales $113.00 Unprofessional
Licensed Premise

VI. OBLIGATIONS:

1. Basic taxation to operate a business


 For individuals: • $500 000. Taxation:
Taxation is handled by the ATO. The registrations required and must
be complied for the business are:
 Tax File Number (compulsory for every taxpayer)
 Australian Business Number
 Goods and Services Tax
 PAYG Withholding

A corporation has its tax file number (TFN) and, in most circumstances, an
Australian Business Number (ABN), and it files its tax return. Even though the
partnership does not pay taxes, it is required to prepare a tax return that shows
how profits were distributed to each member. The profits of the company are
shared among the stakeholders per the company agreement once the ATO has
examined this return. The ATO will assess each stakeholder's part of the profit (or
loss) by adding it to their income tax.

Tax obligation Penalty for failing to meet the


obligation
Keeping or retaining records as 20 penalty units
required
Retaining or producing declarations as 20 penalty units
required
Providing access and reasonable 20 penalty units
facilities to an authorized tax officer
Applying for or canceling goods and 20 penalty units
services tax (GST) registration when
required
Issuing a tax invoice or adjustment 20 penalty units
note when required
Both principal and agent must not 20 penalty units
issue tax invoices or adjustment notes
for the same taxable supply or
adjustment event
Registering as a PAYG withholder 5 penalty units
when required
Lodging an activity statement 5 penalty units
electronically when required
Paying an amount electronically when 5 penalty units
required

2. Superannuation obligations:

Superannuation is money sent to employees through a chosen super fund to


help them save for retirement. If a company pays an employee $450 or more before
tax in a calendar month, it is required to pay super on top of its income. If you fail to
pay an employee's super on time and to the correct fund, you must pay the
superannuation guarantee charge (SGC) and submit an SGC statement to us.
Contributions to the SGC are not tax-deductible. Furthermore, if you miss a
payment because you didn't pay an employee's super on time, you must pay the
Super guarantee charge to us and lodge a Superannuation guarantee charge
statement.

If you miss a payment because you didn't pay an employee's super on


time or to the right fund, you must:
o pay the Super guarantee charge
o lodge a Superannuation guarantee charge statement.
o If you make a late payment:
o offset late payments against the SGC
o carry the late payment forward as pre-payment of a future contribution
for the same employee
3. Fair work obligations:
The DoubleTree hotel plans to hire workers. Before recruiting an employee,
as well as throughout their employment, and after they depart, an employer must
adhere to specific standards. All time spent on the work, including training, team
meetings, opening and closing the firm, and even trial shifts must be rewarded.
If an employee does not get the pay that the Commission has ordered, the
employee has several options for seeking enforcement through civil proceedings
in:  
• the Federal Circuit Court of Australia or a State Magistrates Court by
commencing a small claim proceeding (available for the enforcement of
a Commission order for the payment of money up to $20,000 where
there is no application for a pecuniary penalty order)
• the Fair Work Division of the Federal Circuit Court of Australia, or • an
eligible State or Territory Court such as a District or County Court or
state industrial relations commission
4. Privacy obligations:
The DoubleTree Hotel Management has produced this privacy statement to
demonstrate a firm and continuing commitment to the privacy of personal
information given by visitors and users of the Hotel's website. The Hotel places a
high priority on its guests' information privacy.  
Double Tree Hotel recognizes the importance of protecting customer
privacy and the policy is designed to assist customers in understanding how they
collect, use and safeguard the personal information provided and to assist in
making informed decisions when using the site.
Personal information will be used by the Hotel to conduct business, offer
requested services, and track marketing and promotional initiatives. Improve the
hotel's content and service offerings, as well as modify the site's material. These
features help to improve the site and make it more consumer-friendly.
5. Fairtrade Australian consumer law obligations:
As an Australian business, the hotel will be subject to the Australian
Consumer Law (ACL) when it comes to engaging with consumers, including
providing services and selling commodities such as food and beverages. The
ACL is a federal consumer protection statute. The following are some of the
activities that a company must perform to comply with the ACL:
 If a customer would ask for an itemized bill, the Hotel will provide it
free of charge.
 If the business sells goods or services worth more than $75
(excluding GST), the business must give an official receipt to the customer.
 If the business will give receipts, they must identify the business, it is
ABN, and what was it for (accommodation or dining bill) including the
date and the price.

The maximum penalties per breach of the ACL including unconscionable


conduct, making false or misleading representations, and supplying consumer goods
or certain services that do not comply with safety standards or which are banned:

For corporations, will be the greater of:

• $10 000 000 • three times the value of the benefit received, or

• 10% of annual turnover in preceding 12 months, if the court cannot determine


benefit obtained from the offense.

VII. Insurance Policy

1. Compulsory Insurance Policies

 Victorian Work Cover insurance - It is compulsory insurance for


Victorian business employers. This provides employers with insurance
cover for the cost of benefits if a worker is injured or sick due to their
work.

Business needs to take out Victorian Work Cover Authority insurance policy if:

• The business expects to pay more than $7500 a year in rateable


remuneration
• The business has any apprentices or trainees or even a business with
only one worker Public liability insurance

This sort of insurance is required for businesses that require face-to-face


engagement with customers. It protects the company from third-party claims for
physical injury or property damage if the company or its workers are determined to
be irresponsible. Can be applied through CGU Insurance.

2. Asset Protection Insurance Policies

Value Protect Insurance

 This insurance protects you against the loss of your belongings due to
theft. Theft insurance is required for items like computers and stocks.
LAPI Asset Protection Insurance is a viable option.

Machinery Breakdown Insurance

 In every business operation, some equipment and other machinery can


break down unexpectedly or without warning. There is an insurance
policy that is available to cover its maintenance and replacement costs
and may also cover the products damaged (such as thawed food). Can
be applied through various insurance providers such as VeroResearch
and Comply with Regulatory Requirements

3. Income Protection Insurance Policies

Indemnity Protection Insurance

 This sort of insurance can be purchased by a business owner or an


employee to cover lost income in the event of an accident or illness
that prevents them from working. Having this type of coverage in place
can assist ensure that anyone's family is not left with a significant
financial burden if they lose their job. For example, monthly benefit
payments may be used to ensure does not need to rely on family or
friends for financial support.

Can be applied through various insurance providers such as Nobleoak.

Mortgage Protection insurance

Cover mortgage repayments in the event of death, diagnosis of a critical


illness, or if the person is totally and permanently disabled.

Can potentially receive payments of:

• Up to $1,000,000 to pay off the home loan in the event of death, and if
there’s any leftover, it will be paid to the family to use however they
like.
• Up to $7,500/month to cover monthly repayments if unable to work due
to serious illness or injury, for up to 30 months.
• Up to $7,500/month to cover monthly repayments if become
involuntarily unemployed, for up to 90 days. - Can be applied through
various insurance providers such as AMO and ANZ mortgage
protection

VIII. SCENARIOS WHERE LEGAL ADVICE NEEDS TO BE OBTAINED

 Fair Trade

A FruiKat company supplies fruit and vegetables to several Northbridge


restaurants and cafés. They've been doing business with the DoubleTree in
Northbridge for nearly eight years. However, since the epidemic began and
lockdowns were implemented across the state, the hotel has complained that the
supplier has presented them with low-quality fruits and vegetables. When the
supplier asked the hotel if they want to have another delivery and have the items
replaced and to return the complained products, the hotel insisted not to do so
and asked for a refund instead.

Legal Advice:

1. Australian Consumer Law standards must be complied with by the


supplier no matter what the situation is. They must provide just, and
acceptable goods as advertised from their services.

 Businesses are required by the Australian Consumer Law (ACL) to


provide consumer assurances for the majority of consumer goods and
services they sell. Consumer guarantees are a set of standards that apply
to products and services purchased under the ACL by consumers. These
guidelines define the circumstances in which a company is expected to
give a solution to a customer.

2. The Supplier (FruiKat) should provide a remedy – either through


replacement or refund and any compensation for consequential loss of
the hotel.

3. If FruiKat fails to meet its duties, the hotel can file a complaint with the
Australian Competition and Consumer Commission (ACCC) or their
local consumer protection agency, or have the matter heard by a small
claims tribunal in their area.

Fair Work

Employees at the DoubleTree hotel have been complaining for the past five
months that they are not receiving their regular pay rate. They attempted to get
management to address the problem, but despite receiving letters from their
employees, management remained silent.
Legal Advice: If an issue cannot be resolved between the employer and the
employee, employees can seek the assistance of the Fair Work Ombudsman. They
can submit a detailed report online at fairwork.gov.au, or they can pursue a claim in
court.

Taxation

A full-time manager works over 50 hours every week. When the Manager
prepares to file his income tax return, he expects to receive a large refund because
he has worked hard. However, when he checked his mygov account online, he
discovered that he had only paid a total of $3000 in tax for the 2020-2021 financial
year and that he would not be eligible for a full return because he made a total of
30,000 AUD. He tried to file his tax return and still tried to get the full 4,000 AUD
refund by forging Official Receipts for the items he wanted to be refunded. He was
then approved, much to his astonishment. He received an email from the ATO a few
weeks later claiming that he will be audited since they are questioning why he
declared everything on his tax return. When he was asked for the declared receipts,
there is nothing he can show.

Legal Advice:

 For not following the ATO's law on allowable working hours and overtime
hours for each employee each week, both the employee and the business
may face charges and fines.

 Both employee and employer must keep records of payslip on each pay
period carefully following the legally allowed working hours together with
the proper award and pay rate.

 In this instance, the employee will face penalties and hefty fines from the
ATO for providing false or misleading information while claiming a tax
refund. Depending on the court's rulings, he may have to pay more and
serve time in prison.
IX. Conclusion:

X. Reference:

https://www.business.gov.au/planning/new-businesses/legal-essentials-
for-business
https://ablis.business.gov.au/search/questions?
baName=Hotel+bar+operation&baName=Hotel+operation&psId=2222&g
pId=358&bsId=1&bsId=2&bsId=3
https://business.gov.au/planning/business-structures-and-types
https://www.accc.gov.au/publications/travel-accommodation-an-industry-
guide-to-the-australian-consumer-law
https://business.gov.au/products-and-services/fair-trading/australian-

Businesses, regardless of the structure in which they operate,


must adhere to Australian laws and regulations.
These firms will be able to last for a long time and will surely
make more earnings year after year if they do so.

consumer-law
https://ablis.business.gov.au/
https://www.fairwork.gov.au/tools-and-resources/fact-sheets/rights-and-
obligations
https://business.gov.au/finance/superannuation
https://www.hilton.com/en/hotels/perdtdi-doubletree-perth-
northbridge/meetings-events/
https://www.hilton.com/en/doubletree/
https://ablis.business.gov.au/service/ag/australian-business-number-
registration/26?bsId=1&bsId=2&bsId=3&modal=true&locations=NSW
https://ablis.business.gov.au/service/ag/goods-and-services-tax-gst-
registration/78?bsId=1&bsId=2&bsId=3&modal=true&locations=NSW
https://ablis.business.gov.au/service/ag/national-business-name-
registration/370?bsId=1&bsId=2&bsId=3&modal=true&locations=NSW
https://ablis.business.gov.au/service/nsw/recognised-competency-card-
gaming-/37371?bsId=1&bsId=2&bsId=3&modal=true
https://ablis.business.gov.au/service/qld/commercial-hotel-licence/4245
https://www.business.qld.gov.au/industries/hospitality-tourism-
sport/liquor-gaming/liquor/compliance/fines-penalties
https://www.finder.com.au/income-protection-super

You might also like