129 Posts

Young Leaders take Board Seats

Posted on March 24, 2014 by GSCPA Admin

Ashley_Dawson

Aged care provider Southcare has appointed its first board member under 30 years of age in a move it hopes will motivate other young people to follow suit.

Ashley Dawson, who is 29, was officially appointed to the board following a program intended to inject more youth into the aged care sector.

Southcare chief executive Nicky Howe is one of the key drivers of the Young Leaders in Aged Care program launched earlier this year, which is funded by a social innovation grant worth $180,000.

“You only have to look around the boards and committees of most aged care and community organisations to see that they are full of, dare I say it, grey-haired men”.  Ms Howe told Business News.

“So the motivation for me was about getting diversification on to boards and making sure that we have good governance and future governance.”

Fellow aged care providers MercyCare and Baptistcare were also part of the program to educate young leaders on board directorships and have since appointed younger members, but Ms Howe said it took some convincing to get involvement from others.

“I’d have chief executives ring me up and say “are you for real?” she said.

“I think (older board members) do have legitimate concerns, when you’re a board member you do have a lot of responsibilities they saw (lack of experience) as the barrier.

“But lack of experience is only one of the issues of not being an effective board member, there’s a whole load of things that make a board member ineffective.”

Ms Dawson was introduced to the Southcare board under a traineeship, and appointed as a member at the board’s last meeting.

She said her motivation for getting involved stemmed from working the aged care sector as a university student, reinforced by her accounting experience and seeing clients navigate boardroom strategy.

But the agreed there was a definite scepticism at her ability to contribute.

“It’s just about age, and I think there’s an assumption that a young person doesn’t have life experience, so how can they contribute to a board.” Ms Dawson said.

“But it’s not just about having a number of years clocked up on the board, it’s also about having a different skill set and a different perspective.

“The not-for-profit sector as a whole needs to embrace programs like this, otherwise in five or 10 years’ time we’re going to be severely lacking n board members at all.”

Seats on a not-for-profit board can often open the door to corporate directorships, but Ms Dawson said that was not her intention.

It shouldn’t be a springboard just to get on to a corporate board.  The sector is just crying out for new people,” she said.

 

Source:  WA Business News Article published on 21st November 2013 written by Shanna Crispin

Subcontractor versus Employee – Can you tell the difference?

Posted on October 28, 2013 by GSCPA Admin

The correct classification of your workers as an employee or contractor is your responsibility.  There are different tax and superannuation obligations for employees and contractors therefore it is important to consider the differences between the two types of relationships.

An employee works in your business and is part of your business. Alternatively, a contractor is running their own business and provides services to your business.

We have outlined the characteristics of each below:

Employee          Contractor
Control over work

Your business has the right to direct the way in which the worker performs their work.

Control over work

The worker has freedom in the way the work is done subject to the specific terms in any contract or agreement.

Ability to sub-contract/delegate

The worker cannot sub-contract/delegate the work – they cannot pay someone else to do the work.

Ability to sub-contract/delegate

The worker is free to sub-contract/delegate the work – they can pay someone else to do the work.

Basis of payment

The worker is paid:

  • for the time worked, or
  • a price per item or activity, or
  • a commission.
Basis of payment

The worker is paid for a result achieved based on the quote they provided.

Equipment, tools and other asset

  • Your business provides all or most of the equipment, tools and other assets required to complete the work, or
  • the worker provides all or most of the equipment, tools and other assets required to complete the work, but your business provides them with an allowance or reimburses them for the cost of the equipment, tools and other assets.
Equipment, tools and other assets

The worker provides all or most of the equipment, tools and other assets required to complete the work. The worker does not receive an allowance or reimbursement for the cost of this equipment, tools and other assets.

Commercial risks

The worker takes no commercial risks. Your business is legally responsible for the work performed by the worker and liable for the cost of rectifying any defect in the work.

Commercial risks

The worker takes commercial risks, with the worker being legally responsible for their work and liable for the cost of rectifying any defect in their work.

Independence 

The worker is not operating independently from your business. They work within and are considered part of your business.

Independence

The worker is operating their own business independently from your business. The worker performs services as specified in their contract or agreement and is free to accept or refuse additional work.

It is important to remember that there is no single factor that will be conclusive in determining whether your worker is an employee or contractor. You will need review the whole working arrangement and examine the specific terms and conditions under which the work is performed.

We see many businesses make the wrong decision as they are using incorrect information.

None of the following makes a worker a contractor:

  • your business only needs them for short term or irregular work (such as during busy periods)
  • you are using their specialist qualifications or skills
  • the industry ‘norm’ is to use contractors
  • they have an Australian business number (ABN)
  • they have a registered business name.

If you are unsure if you have classified your workers correctly or would like more information on the above, please contact the office.

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