Holmans, your local accountants, have provided their top tips. Designed to help you navigate various financial aspects of your business.
Changes to Person in Charge, Directors, Contact Details or Trading Address
Did you know you are required to notify the relevant authority if there are any changes to persons in charge, director details, contact details of licensees or trading addresses? If there are any changes you are required to notify the relevant authority within:
- 14 days for Queensland businesses
- 5 days for NSW businesses
Licensee Periods of Absence - QLD
If you are absent for more than 30 days, you are required to apply for a substitute licensee with the OFT.
The OFT recommend that you appoint someone who holds the same licence type as you. Otherwise, you can appoint a suitable adult.
You will:
- need to make sure that the substitute has the skills to do the job
- be responsible for any breaches they commit while you are away.
The OFT can only approve substitute licensees for up to 26 weeks in a 12-month period. Note, the OFT must approve your choice of substitute licensee, which will incur a fee on lodgement of the application.
The processing time is 4–6 weeks. This can take longer if your application is not complete.
If you are away for 30 days or fewer, you do not need to notify the OFT, however, the substitute licensee must give written and signed consent to be your substitute. Therefore, you should:
- appoint them in writing
- sign the appointment form
- make sure your substitute signs it too.
You can only appoint a substitute for up to 12 weeks in any 12-month period.
Responsibility of Person in Charge
If you are a listed person in charge of the trust account, it is important to note that you are ultimately responsible for the trust account and business practices. The person in charge also needs to ensure all staff members should be adequately trained, supervised and if required by the legislation, licensed or registered. A breach of legislation by a staff member of the business can indicate that you have failed to meet your fiduciary duties or legislative responsibilities and penalties may.
If you are listed as a person in charge and are not overseeing the operations, it is recommended a new licensee in charge should be appointed (ultimately the person running the business) and you should provide the relevant authority and your auditor with notification of the change without delay.
Key Requirements for Licences Person in Charge (LIC)– NSW
- Must hold a Class 1 Agent licence in a category relevant to the business of which they are in charge
- No parts of a business can be left unsupervised by an LIC
- An LIC can be in charge of an entire business, or there may be several LICs in charge of different parts of the business
- There cannot be more than one LIC in charge of one part of the business, but one LIC can supervise multiple parts of the business
- Only an LIC can authorise the withdrawal of funds from general trust accounts
- Only one LIC can authorise the withdrawal of funds from each trust account
- If a LIC is temporarily or permanently unable to carry out their duties due to illness, leave or any other reason, the principal licensee must appoint another Class 1 licence holder as a replacement within 5 business days.
- Nominated LICs are responsible for compulsory annual training plans.
NSW Changes to Continuing Professional Development (CPD) and Supervision guidelines
From 1 July 2024, new supervision guidelines and CPD requirements will apply to real estate, strata and stock and station agent licensees. Please ensure you are aware of the new guidelines and requirements – a copy of the guide is available through NSW Fair Trading website Fair Trading Changes to supervision guidelines and CPD from 1 July 2024
A Licensee in Charge (LIC) is responsible for the proper supervision of the business of which they are in charge. and must hold a Class 1 licence in the category relevant to the business. For example, a LIC of a real estate agency will need to hold a Class 1 real estate agent’s licence. A corporation licence holder or an individual who runs a business under a Class 2 licence will need to employ an LIC to supervise their business.
Mid-Stay Linen charge on Schedule of Charges
If your current schedule of charges does not explicitly state that mid-stay linen charges apply, but you are charging mid-stay linen, it is crucial to update to ensure no unauthorised payments are being applied to owner funds. Ensure that the updated schedule is either initialled or otherwise acknowledged by the owner. In the meantime, we strongly recommend obtaining written confirmation from the owner, acknowledging that they were aware of and consented to being charged for mid-stay linen. This should reflect the practice followed, even if it was not clearly outlined in the original schedule of fees or letting agreements. In the event of an audit by the Office of Fair Trading (OFT), written evidence of the owner’s awareness and consent to these charges will be required.
Drawdown of Funds from the Trust Account
Note the only amounts you are able to withdraw at mid-month is your non-trust monies (transaction between you and your guests only like towel hire, extra persons, tours, transfers, kiosk etc). If you with to draw management income, you must disburse monies to owners for their share at the same time. Only after the money has been paid to the person entitled to it (i.e the owner), are you allowed to draw your commission and fees from the trust account. Note, that it is not standard practice to withdraw monies at mid-month, other than your non-trust monies.
Payroll Tax
As a business owner, it’s essential to stay informed about your payroll tax obligations. Payroll tax is a state or territory tax that employers must pay if their total wages exceed a certain threshold. This tax is levied at different rates depending on where your business operates and the size of your payroll.
Wages include not only salaries but also bonuses, commissions, superannuation contributions, allowances, and certain fringe benefits. Even payments to contractors may be considered wages under certain circumstances.
Current Payroll Tax Thresholds and Rates by State/Territory (Financial Year 2024-2025)
By understanding the thresholds, accurately calculating your wages, and meeting all lodgement deadlines, you can avoid unnecessary penalties and ensure compliance with your states payroll tax laws. If you’re unsure about any aspect of payroll tax, don’t hesitate to reach out to your accountant.
