Question: Can a body corporate employ a resident for a small amount of hours as long as they have workers compensation and taxation requirements in place?
We are a 9 villa complex under the standard module. We are considering appointing a retired resident living in our complex to undertake care of our common area gardens consisting of maintaining a small garden area and a limited amount of mowing. The resident has volunteered to do the job. He is 70 years and very physically able to do the work as it should only be around 3 hours a month. This would be ideal for our situation.
Can a body corporate employ someone for a small amount of hours a month as long as they have workers compensation and taxation requirements in place. What other requirements are needed in these circumstances?
Answer: Insurance and taxation should be confirmed as part of any agreement depending on the scope of works.
It’s fairly common for body corporates to engage a resident to do work like this around a scheme and it can be a benefit for all parties as costs tend to be reasonable and the quality of work good.
As you indicate, the main concerns tend to be around insurance and taxation. These should be confirmed as part of any agreement depending on the scope of works. The contractor is responsible for the legal compliance, workmanship and safety of the work they do and their insurance should cover this. For tax purposes, the contractor should have an ABN. They will also need to invoice appropriately. See this resource from the ATO for more information: Working as a contractor.
There are certain types of work where a contractor has to have a licence. This can be if the cost is over $3300 or if a specific skill is required such as plumbing, gas fitting or termite management. It doesn’t seem like one is required here, but you can check the QBCC website to be sure: When is a contractor licence required?
This post appears in the November 2021 edition of The QLD Strata Magazine.
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