AHCBUS512 Session 1

1. Develop and Implement
Family Business Structures
and Relationships
UNIT AHCBUS512
IN THE FARM BUSINESS MANAGEMENT SKILL SET
2021 S1 LECTURER JANE MOURITZ
SOUTH REGIONAL TAFE W:SOUTHREGIONALTAFE.WA.EDU.AU 1

2. https://www.projectmanager.com/blog/30-best-business-quotes
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What we do in this course will be worth it.

3. Induction
revisited
As Students, you must be aware of:
• your Rights & Responsibilities
• the Code of Conduct
• all Safety Procedures
• Occupational Health & Safety (OHS)
• your Training & Assessment Plan
• Services available for you to access
• Evacuation & Emergency Procedures
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4. What we will achieve in AHCBUS512
Training and Assessment Plan TAP A
AHCBUS512 TAP A
Your assessment is based on your preparation of a succession plan for your family business
Text books are optional:
▪Zellweger, T. 2017, Managing the family business: theory and practice. Edward Elgar Publishing
▪Cole, K, 2019, Leadership and Management; theory and practice. Cengage Learning Australia ($55 for
E-copy)
▪AgGuide Working with people in agriculture – e-book in EBESCO
▪Albany Learning Resource Centre:
▪ https://intranet.gsit.wa.edu.au/organisational/LRC/Pages/default.aspx
▪ Phone: 6371 3860
▪Educational search resources available: SuperSearch, Linkedin Learning, Velg, Kanopy, EBESCO,
ProQuest, ClickView
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2nd February 2021 to 8th April 2021

5. SOUTH REGIONAL TAFE W:SOUTHREGIONALTAFE.WA.EDU.AU 5
There are 3 assessment tasks for this unit. They are due to be submitted as follows;
Knowledge based questions
Date due - Session 10
KBQ’s are not essays, just demonstrate you know the subject matter. Some in-
session time for these.
9 questions
Structured Activity
Task 1 date due Session 7 -
Prepare a preliminary family and business overview 4 - 8 x A4 pages
Task 2 date due Session 9
Develop and implement conflict and stress management strategies 3-4 x A4 pages
Task 3 date due Session 12
Determine Family Member Roles and Responsibilities and achieve a Succession Plan
4 x A4p
Task 4 date due Session 13
Implement business structure and review performance - final report 1-2 x A4 pages
Observation Checklist
Session 6 – 7 – during the on campus sessions
It will be an interactive oral communication scenario assessment that includes
conflict and negotiation and FUN

6. Any Questions
about the
Training and
Assessment Plan?
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7. The tools in the shed
All successful family farming businesses need:
• Appropriate trading and operating structures
• Appropriate finance facilities
• Financial risk management strategies - FMD’s
• Business analysis - an understanding of flow of business funds
• Equipment replacement policy
• Establishment of a Self-Managed Superannuation Fund- SMSFs
• Accumulation of off-farm assets
• Succession plans for
o unplanned succession
o planned succession
• Estate plans
• Access professional advice.
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Brian David Wibberly, Active Ag Consulting Pty Ltd, 2014.
Accessible at https://grdc.com.au/resources-and-publications/grdc-update-
papers/tab-content/grdc-update-papers/2014/09/business-structures-for-
the-family-farm

8. Why are business structures important?
https://www.ato.gov.au/Business/Starting-your-own-business/Before-you-get-started/Choosing-
your-business-structure/ (3 minutes 26 seconds)
Business Structure Options
Sole Trader - the simplest structure, gives you full control
Partnership - – made up of 2 or more people who distribute income or losses, who can jointly
or separately own assets
Company - more complex, limits your liability because it’s a separate legal entity
Trust Structures – family discretionary trusts with trustees who are responsible for
business operations
As defined by https://www.business.gov.au/planning/business-structures-and-types/business-structures/ accessed 20/01/2021
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9. Choosing and/or changing your business
structure
•Change in management
• Change in ownership
•Financial reasons
•Operational reasons
•Business growth
•Economic downturn or downsizing
•Planning for succession
•If you are considering changing your business
structure - https://www.business.gov.au/change-and-
growth/restructuring/how-to-change-business-ownership accessed
21/01/21
You need to ensure your business plan reflects the
new or proposed structure, and outlines the goals and
objectives of your business.
Most changes to your business structure will require a
new Australian Business Number (ABN). Visit
the Australian Business Register website to find out
more.
You will need to contact IP Australia if you’re changing
any registered trademarks or logos. You will also need
to transfer your business name or cancel your
business name with Australian Securities and
Investments Commission (ASIC).
A change of business structure may affect the tax you
have to pay or how you report your tax. The Australian
Taxation Office (ATO) can help you understand how
your business structure affects your tax.
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10. SOUTH REGIONAL TAFE W:SOUTHREGIONALTAFE.WA.EDU.AU 10
Australian Business Structures; what will work for your business?
Aspects to consider Sole trader Partnership Discretionary
Trust
Unit Trust Company
Who is in control? Individual Partners Trustee/
Appointor
Trustee/
Unit Holders
Directors/
shareholders
Documents needed None Partnership
agreement
Trust deed Trust deed
(Unit holder’s
agreement)
Constitution (Unit
holder’s agreement)
How long does it last? Terminates on
death
Terminates
when partners
change
Must vest within
a certain period
Must vest within
a certain period
Can last perpetual, but
annual fees payable
Governing law No specific act Partnership Act Trustee Act
(state)
Trustee Act
(state)
Corporations Act (Fed.)
Limited Liability No limitation to
liability
Liable: joint and
several
Yes – limited
with a corporate
trustee
Yes – limited
with a corporate
trustee
Yes – a separate legal
entity
https://legalvision.com.au/discretionary-trust-v-unit-trust-what-are-the-key-differences/

11. Let’s aim for
Successful
Succession
There is no ‘one size fits all’, when it comes
to succession planning. It can be for family
business and/or family and employees in a
business.
There is a uniqueness to every enterprise
and every family that needs to be explored,
listened to, taken into account and actioned.
Do you have an exit strategy?
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12. Explain 4 aspects
of legislation
relevant to family
business
4 aspects of legislation relevant to family business
◦ Section 113 Corporations Act 2001
◦ Division 83A of Income Tax Assessment Act 1997
◦ Corporations Act in general
◦ Australian Accounting Standards
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13. ▪1b Why is business planning important in adhering to legislation
▪ To build a solid structural footing for your business
▪ To ensure all stakeholders understand the governance requirements, so
that
▪ the business is legal and not complicated by impropriety
▪ tax is minimised and paid with timeliness
▪ Operations are ethical, licenced/registered
▪ Productivity is efficient and profitable
▪ Profits are accounted for and distributed fairly
▪ To meet obligations for;
▪ employment laws and unfair dismissal
▪ Superannuation
▪ workers compensation
▪ exit strategies
▪ reporting requirements
▪ Business registration
▪ Fair trading, intellectual property and privacy laws
▪ Contracts and contractors
▪ Anti-bullying laws, code of conduct
▪ Franchising and marketing compliance
▪ Importing and exporting
▪ Environmental protections
Why is family
business planning
important to ensure
legislation and
regulations are
adhered to?
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14. ▪2 Regulatory Compliance Regulations;
▪ Sole Trader
▪ Partnership
▪ Discretionary Trust
▪ Company - ASIC governed
Please research compliance regulations for these structures
▪Administrative Processes
▪ Register for:
▪ Australian Business Number (ABN)
▪ Goods and Services Tax (GST)
▪ Tax File Number (TFN)
▪ Pay As You Go (PAYG) withholding
▪ Other optional registrations include:
▪ Business name – if you want to trade under a particular name, you may need to
register it.
▪ Trade marks - if you want exclusive rights to a business name, you need to register
a trade mark.
▪ Website domains
▪ List the regulatory compliance
regulations that apply to each of
the 4 family business structure
options.
▪ Briefly explain the administrative
processes necessary to ensure
compliance? (1 to 2 x A4 pages)
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15. For next week
§ Please complete the Matrix for
business overview for your business –
we will discuss/compare and contrast
your answers at the next session
§ Check out the resources linked on
blackboard.
§ Start some research on EBESCO and
Google search
§ Please give me your feedback
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