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Hi All,
We have had an ECM called to discuss discharging the current contractors who maintain our common property (lawns, gardens foyers etc.) and appoint new contractors. One of the unit owners has put their hand up and wants to do it for a fee. The owner simply wants to do it for the cash income, has no ABN, insurance or necessary tools to do the job. I wouldn’t trust this owner to do anything other than to collect the money. Is it legal to have someone who is a lay person with no ABN and insurance to perform this type of work.
Cheers
andyj
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Andyj
That the lot owner has no ABN, insurance or tools is not an impediment to accepting the work (The tools part may be some problem though)
Whether or not he considers this work, he is conducting a business with all the attendant risks (ie if he causes some damage, he is responsible for its rectification whether he has insurance or not)
It’s also a difficult situation as the committee may treat the owner as a ‘mate’ rather than as business. How are the rates to be set? What jobs does he have to do and when? How quickly does he fix the problems?
I would not discourage such a situation but would warn the OC that a ‘water tight’ agreement needs to be drawn up so everyone understands the lay of the land. That may be more effort than going to an open tender.
In regard to cash in hand. As an employer (yes that is what the OC is) the employer is required to withhold tax from payments. It does not need to withhold tax if an ABN is supplied.
I reiterate, its not out of the question, but care needs to be taken in drafting an agreement so that everyone knows whats expected.
Robert
kaindub said…….That the lot owner has no ABN, insurance or tools is not an impediment to accepting the work..
…..and then he went on to very accurately post precisely why the above IS an impediment, and I’d add that there are additionally insurance implications if a person works for the Owners Corporation in anything other than a voluntary capacity.
I wouldn’t touch this Owner’s proposition with the proverbial barge pole.