The document outlines key business legislative updates for 2012, including the carbon pricing mechanism affecting certain industries, the new workplace health and safety harmonization laws, and the implications of the Personal Property Securities Act. Directors have new responsibilities for compliance and personal liability, while warranties against defects must align with Australian consumer law. Recommendations for businesses include reviewing compliance practices and engaging experts for assurance.

1. Sunshine Coast
Business Expo –
May 2012
Business Legislation Update.
The Year ahead 2012
Byron Cannon, Director
Ferguson Cannon Lawyers
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2. Contents
• Carbon Pricing Mechanism
• OHS Harmonisation
• Personal Property Securities Act
• ATO & Director Responsibilities
• Warranties against Defects
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3. Carbon Pricing Mechanism
• Only around 500 Businesses in
Australia directly liable
• Fixed price for 3 years, then flexible
• Primarily mining, power & heavy
industry
• Issue for business is indirect effect
• Depends on the industry you are in
• Some benefits and opportunities
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4. OHS Harmonisation
Background
• National Model
• Commenced 1/1/12
• Queensland largely enacted the Model
legislation
• Similar to WHS Act, but important differences
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5. • All “Officers” to exercise due diligence to ensure
compliance
• “Officer” includes:
- Director, secretary, partner
- Decision makers who can affect substantial
part of business and financial standing
- Those on whose instructions or wishes
directors are accustomed to act
- receivers, administrators, liquidators
• Huge officer penalties
• $600,000 fine or 5 years jail for reckless breach
• $3 million for corporations
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6. Workers – WHAT’S NEW?
Includes:
• Employees
• Contractor or subcontractor
• Employee of a contractor or subcontractor
• Employee of a labour hire company
• Out worker
• Apprentice or trainee
• Student gaining work experience
• Volunteer
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7. • Worker can cease
work if exposed to
serious risk
• HSR can direct
workers to cease
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8. What to do? (Steven Cole of Emerson Stewart)
• Engage OH&S expert to give a high level
presentation to the Board on the principles
and effects of the new regime.
• Ask the executive team to review the
Company’s existing OH&S arrangements and
practices and report these to the Board, along
with recommendations for improvements and
assured compliance
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9. OH&S (Continued)
• Use these findings as the basis for a
comprehensive review of the Company’s OH&S
policy;
• For a smaller Company without a specialist OH&S
suitably competent person has responsibility for the
OH&S function;
• Schedule regular report and reviews of the
Company’s OH&S practices in the annual Board
calendar;
• Ensure Board members visit relevant worksites
from time to time so they have a thorough
understanding of the workplace environment and
practices;
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10. Personal Property Securities Act
(“PPSA”):
• Significant change in Law;
• Replaces many Laws which deal with:
- Company charges;
- Bills of Sale;
- Motor vehicle securities, etc
• Affects tangible and intangible property
rights
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11. PPSA (continued):
• Application to your business (supplier of
goods and credit);
• Usual finance arrangements;
• Terms of Trade;
• Retention of title – where Purchaser has
possession of goods but does not get title
until full amount paid;
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12. PPSA (continued):
• For ROT to be enforceable, it must “attach”
itself to the goods;
• To satisfy – ownership retained until paid,
and supply made;
• Ensure ROT is enforceable against third
party:
- In writing;
- Signed;
- Contains description of goods.
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13. PPSA (continued):
• PPS Register:
- Online register
- Can search the register;
• Why register?
- Obtain priority on other creditors;
- First in, first served.
• ROT Super priority;
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14. PPSA (continued):
• How to register?
- Online;
- Register a finance statement;
- Party Details;
- Customer Details;
- Goods;
- Addresses
• Can register once for each customer.
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15. PPSA (continued):
• What to do?
- Review your sales terms;
- Suitable for registration;
- Allow you to recoup costs and fees;
- Enforcement terms are tailored for you;
- Reduce compliance obligations;
- Ensure super priority
• Get familiar with the registration process;
• See your lawyer
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16. ATO Personal Liability
• New Law – if debt 3 months old – Director
automatically must pay the full amount;
• ATO can withhold PAYG credits for Director
• If nothing done – ATO can automatically
collect debt from Director;
• New director liable after 14 days for PAYG
and SG
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17. Warranties Against Defects
• Important Changes for 1/1/12
• Any warranties provided must comply with
Australia Consumer Law (“ACL”)
requirements
• What is a warranty against defects?
• What is a consumer?
• Who must follow the requirements in ACL?
• What are the requirements?
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18. • What is a “document” evidencing a
warranty against defects?
• What information must be included?
• Can I include extra words in my warranty?
• Why must the required information be
provided?
• Warranties vs. Consumer Guarantees
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19. • Warranty against defects vs. express
warranties
• Transitional Arrangements
• Other requirements?
• Penalties for non-compliance
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