SITXGLC001

Research and
comply with
regulatory
requirements

Student Name:
Student Id:
Unit Details: SITXGLC001 Research and comply with regulatory requirements.

Assessment 1: Research Information required for legal compliance.

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 Contents

Description Page no.

Introduction of Business: 4
Location of the Business: 4
Business Structure: 4
1. Business Name: 4
2. ABN Number: 4
3. GST: 5
4. BAS: 5
5. Superannuation: 5
6. Food Permit (Registered Local Council): 5
 Food Safety Program: 5
 Food Standards Australia New Zealand Act 1991: 6

7. Planning Permit: 6
8. Building Permit: 6
9. Liquor License: 6
10. Music License: 6
11. Insurance: 7
12. Public Liability: 7
13. Duty of Care: 7
14. Work Cover: 7
 Work Health and Safety Practices and Legislative Requirements: 7
 Health and Safety Regulations and Requirements: 8

Fair Work Act 2009: 8

National Employment Standards (NES): 8
Workplace Relations: 8
 The steps I took to access this information were as follows: 8
Overview of the Australian Consumer Law (ACL): 9

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  The steps I took to gather information about the ACL were as follows: 9
Associated aspects of the Privacy Act 1988: 9
 The steps I took to access information about the Privacy Act were as 10
follows:
Sources of specialist legal advice: 10
Sources of specialist advice/specialists required: 10
a) Food safety specialists:
b) Liquor licensing consultants:
c) Insurance brokers:
Legal and ethical business requirements: 11
a) Employment law compliance:
b) Food safety and hygiene:
c) Responsible service of alcohol:
d) Consumer protection and fair trading:
Evaluation of hospitality business operation and identification of risks: 12
 Food safety risk:
 Alcohol-related risk:
Risks, penalties, and consequences of business non-compliance: 12
a) Fines and penalties:
b) Legal disputes and litigation:
c) Reputation damage:
d) Closure or suspension of operations:
e) Loss of licenses or permits:

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 Hospitality Business

Burger Bar
Introduction of Business:

When launching a new hospitality business, it's critical to understand the sort of business you
want to build, your target market, and your establishment's unique selling offer. This will assist
you in defining your business concept and determining your market placement.

Location of the Business:

It is critical to select the best location for your hospitality business. The demographics of the
location, competition, accessibility, and local demand for your sort of company are all factors to
consider. It is critical to investigate and choose a site that is compatible with your target market
and has the essential infrastructure and services.

Business Structure:

You must choose an acceptable legal structure before registering your firm. In Australia, popular
business structures for hospitality include sole proprietorship, partnership, corporation, and trust.
Each structure has its own set of advantages and disadvantages in terms of taxation, liability, and
compliance. It is advised that you speak with an accountant or a legal professional to identify the
best structure for your company.

1. Business Name:

Select a distinct, deceptive, and non-infringing business name. Check the Australian Securities
and Investments Commission (ASIC) website or use their business name availability check tool
to confirm availability. Register the company name on the ASIC website, and access pricing and
application forms. Failure to register may lead to legal complications and disagreements with
other firms.

2. ABN Number:

An Australian Business Number (ABN) is a unique identification for Australian enterprises used
for taxation, invoicing, and government interactions. Applying for an ABN online is simple and
free, but failing to register can make business activities and tax compliance more complex.

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3. GST:

Goods and Services Tax (GST) is a consumption tax levied on most goods and services in
Australia. If your annual turnover is expected to reach or exceed $75,000, or if you provide taxi
or limousine services, you will need to register for GST. To register for GST, you can do so
through the Australian Taxation Office (ATO) website. The registration process is free, and you
will receive a GST registration number. Non-compliance with GST obligations may result in
penalties and legal consequences.

4. BAS:

The Business Activity Statement (BAS) is a quarterly form for reporting and paying GST,
PAYG withholding, and other tax obligations. It is typically lodged by an accountant or the ATO
website. Non-compliance with BAS requirements can lead to penalties and taxation difficulties.

5. Superannuation:

Superannuation is the Australian equivalent of a pension or retirement savings plan. Employers

must contribute 10% of eligible employees' wages to their chosen superannuation funds. To
comply, set up a superannuation account for each employee and make regular contributions.
Consult a qualified accountant or the ATO website for compliance.

6. Food Permit (Registered Local Council):

Food businesses must comply with local council regulations to maintain food safety and hygiene
standards. The process can vary between councils, so contact your local council or visit their
website to understand the steps. The permit costs depend on the council's fee structure. Failure to
comply can result in fines, business closure, or legal action.

 Food Safety Program:

Food safety programs are legal requirements for all Australian food businesses to ensure food
safety and prevent foodborne illnesses. Registration and obtaining a program vary by state or
territory, so consult the health department's website for guidance. Non-compliance can result in
fines, penalties, and business closure.

 Food Standards Australia New Zealand Act 1991:

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The Food Standards Australia New Zealand (FSANZ) Act 1991 is the legislation that governs
food standards and safety in Australia. It sets out the requirements for food businesses regarding
labeling, composition, handling, and storage of food. Non-compliance with the FSANZ Act can
result in legal consequences, including fines and potential harm to the health of consumers.

7. Planning Permit:

To construct or renovate hospitality business premises, obtain a planning permit from your local
council. The process varies, so contact the council or visit their website to understand steps,
costs, and application forms. Failure to obtain a permit can result in penalties, closure, or legal
action.

8. Building Permit:

A building permit is required for hospitality business construction, alteration, or demolition. To

obtain a permit, a registered surveyor or certifier must assess plans and ensure compliance with
regulations. The process depends on project size and complexity, with specific steps and costs.
Failure to obtain a permit can result in fines, legal consequences, and insurance coverage issues.

9. Liquor License:

To serve alcohol in a burger bar, obtain a liquor license, which varies across Australia. Contact
the relevant authority for specific steps, costs, and application forms. Failure to obtain a license
can result in severe penalties, business closure, or criminal charges.

10. Music License:

To play copyrighted music in Australia, obtain a music license from the APRA and PPCA, the
main music licensing organizations. These bodies manage the rights of songwriters, composers,
and recording artists. The APRA and PPCA websites provide specific steps, costs, and
application forms. Failure to obtain a license can result in legal consequences, including fines
and potential copyright action.

11. Insurance:
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Insurance is crucial for risk management in hospitality businesses. Consult an insurance broker
to assess your needs and determine the appropriate coverage. Common types include public
liability, building, and business interruption insurance. Costs and application processes vary
based on size, location, and requirements. Inadequate insurance coverage can expose your
business to financial liabilities in case of accidents, damage, or legal claims.

12. Public Liability:

Public liability insurance safeguards your business from injuries or property damage caused by
your activities. It covers legal costs and compensation claims, covering aspects like premises,
product, public event, and employer liability. To obtain insurance, contact hospitality insurance
providers or brokers. The cost depends on the business's size and coverage level. Failure to have
public liability insurance can expose your business to significant financial risks in the event of
accidents or lawsuits.

13. Duty of Care:

Duty of care is a legal obligation for businesses to ensure the safety and well-being of customers,
employees, and others. In the hospitality industry, it involves providing a safe environment,
proper staff training, and following health and safety regulations. Failure to do so can lead to
legal consequences, such as lawsuits and damage to the business's reputation.

14. Work Cover:

Work cover, also known as workers' compensation, is an insurance policy that covers employees'
medical expenses, rehabilitation costs, and lost wages due to work-related injuries or illnesses.
Employers are legally required to have Work Cover insurance to protect their employees. The
steps and costs vary by state or territory, so it's advisable to consult with the authorities or
insurance brokers to understand requirements and processes. Failure to have insurance can result
in penalties and legal consequences.

 Work Health and Safety Practices and Legislative Requirements:

Work health and safety (WHS) practices ensure a healthy workplace for employees, contractors,
and visitors. Legislative requirements, like the Work Health and Safety Act, guide compliance in
the hospitality industry. Key regulations include safe food handling, manual handling, fire safety,
and emergency evacuation procedures. Non-compliance can lead to penalties, accidents, injuries,
and legal consequences.

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 Health and Safety Regulations and Requirements:

Hospitality businesses must adhere to various health and safety regulations, including food
safety, hygiene standards, fire safety, and occupational noise regulations. Consult state or
territory health departments, fire authorities, and WHS regulators to understand these
requirements. Non-compliance can result in fines, business closure, or legal action.

Fair Work Act 2009:

The Fair Work Act 2009 outlines employer and employee rights and obligations, including
minimum wages, employment contracts, working hours, leave entitlements, and termination.
Understanding and implementing these provisions is crucial for fair treatment and avoiding legal
disputes. The Fair Work Ombudsman website offers detailed information on employment
conditions and obligations. Failure to comply can lead to fines and potential employee claims.

National Employment Standards (NES):

The National Employment Standards (NES) are minimum employment conditions in Australia,
covering working hours, annual leave, personal leave, and parental leave. It's crucial to
familiarize oneself with the NES and ensure compliance when employing staff. Non-compliance
can lead to penalties, legal claims, and damage to reputation.

Workplace Relations:

The Fair Work Ombudsman website offers comprehensive information on workplace relations
compliance requirements in Australia. It covers minimum wages, employment contracts, leave
entitlements, and termination of employment.

The steps I took to access this information were as follows:

 Visited the Fair Work Ombudsman website.

 Navigated to the "Employers" section.
 Explored the topics related to workplace relations, such as pay and conditions, managing
employees, and ending employment.
 Reviewed the relevant information and guidelines provided for employers.
 Workplace relations compliance is not specific to application forms, but maintaining accurate
records of employment contracts, pay slips, and other documents is crucial. Non-compliance
can result in penalties, legal disputes, and damage to a business's reputation, and loss of trust
from employees. Employers must ensure compliance with minimum wage laws, employment
contract provisions, and leave entitlements to avoid significant consequences.
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Overview of the Australian Consumer Law (ACL):

To access information about the Australian Consumer Law (ACL), I visited the website of the
Australian Competition and Consumer Commission (ACCC) (https://www.accc.gov.au/). The
ACCC is responsible for enforcing the ACL and provides detailed information on consumer
rights and business obligations.

The steps I took to gather information about the ACL were as follows:

 Accessed the ACCC website.

 Navigated to the "For Business" section.
 Explored the resources and guides available on the ACL.
 Reviewed the information on consumer guarantees, product safety, advertising and selling
practices, and unfair contract terms.
 Compliance with the ACL is crucial for hospitality businesses, as failure can lead to legal
action, penalties, fines, and reputational damage. Businesses must ensure products and
services meet quality standards, provide accurate information, and handle consumer
complaints and disputes fairly and transparently.

Associated aspects of the Privacy Act 1988:

The Privacy Act 1988 governs the collection, use, storage, and disclosure of personal
information by businesses. Three associated aspects of the Privacy Act include:

a) Businesses must have a privacy policy outlining their handling of personal information,
including types, usage, disclosure, and access and correction options..

b) Consent and Opt-Out: Businesses must obtain the consent of individuals before collecting
their personal information and provide an option to opt out of direct marketing
communications.

c) Data Security: Businesses have a responsibility to take reasonable steps to protect personal
information from unauthorized access, use, or disclosure. This includes implementing
appropriate security measures and ensuring the secure storage and disposal of personal
information.

Access the Office of the Australian Information Commissioner's website for compliance with the
Privacy Act, offering guidance and resources for businesses on privacy obligations.

The steps I took to access information about the Privacy Act were as follows:
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 Visited the OAIC website.
 Explored the "For Businesses" section.
 Reviewed the guidance materials on privacy policies, consent, data security, and other
relevant topics.
 Failure to comply with the Privacy Act can lead to investigations by the OAIC, potential
enforcement actions, penalties, and damage to the business's reputation.

Sources of specialist legal advice:

Accessing and interpreting specialist legal advice is crucial for hospitality industry compliance,
with three potential sources:

a) Law firms specializing in hospitality law offer expertise in legal issues, compliance
requirements, and dispute resolution, advising on contracts, licensing, employment, and
dispute resolution.

b) Accountants with hospitality industry expertise: Accountants with experience in the

hospitality sector can provide guidance on financial and tax-related matters, such as
bookkeeping, tax obligations, and financial planning.

c) Employment law specialists: As workplace relations compliance is crucial in the hospitality

industry, consulting with employment law specialists can ensure that businesses comply with
employment contracts, minimum wage laws, and other employment-related regulations.

By engaging with these specialists, businesses can obtain accurate and up-to-date legal advice
tailored to their specific circumstances, reducing the risk of non-compliance and legal issues.

Sources of specialist advice/specialists required:

In addition to legal advice, there are several other areas where seeking specialist advice can be
beneficial for a hospitality business:

a) Food safety specialists: These professionals can provide guidance on food handling, hygiene
practices, and compliance with food safety regulations. They can assist with implementing
appropriate food safety programs, conducting inspections, and ensuring compliance with
relevant standards.

b) Liquor licensing consultants: As obtaining a liquor license is a key requirement for a

licensed burger bar, engaging a liquor licensing consultant can streamline the application

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 process and provide expert advice on the specific requirements and regulations pertaining to
liquor licensing in the relevant jurisdiction.

c) Insurance brokers: Insurance brokers specializing in the hospitality industry can help
businesses identify and obtain suitable insurance coverage, including public liability
insurance, worker's compensation insurance, and property insurance. They can assess the
business's risks and recommend appropriate insurance policies to mitigate potential
liabilities.

Engaging these specialists can help businesses navigate complex regulatory frameworks, ensure
compliance with specific industry requirements, and mitigate potential risks associated with their
operations.

Legal and ethical business requirements:

Four legal and ethical business requirements that are particularly relevant to the hospitality
industry include:

a) Employment law compliance: Businesses must comply with employment laws, including
minimum wage, employee classification, and fair working conditions, to ensure employee
well-being and fair treatment.

b) Food safety and hygiene: Compliance with food safety regulations is crucial to protect the
health and safety of customers. Businesses must maintain high standards of food preparation,
storage, and handling to prevent contamination and foodborne illnesses.

c) Responsible service of alcohol: If the business serves alcohol, it must comply with
responsible service of alcohol (RSA) requirements, including verifying the age of patrons,
refusing service to intoxicated individuals, and promoting responsible alcohol consumption.

d) Consumer protection and fair trading: Businesses must adhere to consumer protection
laws, including providing accurate information about products and services, honoring
warranties and guarantees, and resolving customer complaints in a fair and transparent
manner.

Evaluation of hospitality business operation and identification of risks:

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Conduct a comprehensive risk assessment to evaluate hospitality business operations, identifying
potential hazards and non-compliance areas, and assessing their likelihood and consequences.
Two potential risks that may be identified during the evaluation process for a licensed burger bar
include:

 Food safety risk: Inadequate food handling practices, lack of proper training for staff, or
failure to maintain cleanliness and hygiene standards can lead to foodborne illnesses and
potential legal liabilities.

 Alcohol-related risk: Serving alcohol can introduce additional risks, such as overserving
customers, potential incidents of intoxication, and non-compliance with RSA requirements.
Failure to address these risks can result in accidents, legal consequences, and damage to the
business's reputation.

Risks, penalties, and consequences of business non-compliance:

Business non-compliance with legal and regulatory requirements in the hospitality industry can
lead to various risks, penalties, and consequences. Some examples include:

 Fines and penalties: Non-compliance with workplace relations laws, food safety
regulations, liquor licensing requirements, or consumer protection laws can result in
substantial fines and penalties imposed by relevant authorities.

 Legal disputes and litigation: Non-compliance can lead to legal disputes, such as employee
claims, contract breaches, and customer injuries, resulting in costs, settlements, and damage
to the business's reputation.

 Reputation damage: Non-compliance can damage a business's reputation, affecting

customer trust, loyalty, and success through negative publicity, online reviews, and word-of-
mouth.

 Closure or suspension of operations: Serious and persistent non-compliance with

regulatory requirements can result in the closure or suspension of the business by relevant
authorities, such as health departments or liquor licensing boards.

 Loss of licenses or permits: Non-compliance with licensing requirements, like liquor or

health department certifications, can lead to license revocation or non-renewal, preventing
legal operations for businesses.
References:

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Szymkowiak, A., Kubala, B., & Antoniak, M. (2020). Music sales and artists popularity on
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Libich, J., & Macháček, M. (2016). Insurance by government or against government?

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