Australian Employment Law

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Q2 Weimar Investments Ltd is owned by Mr Bob Mann. The core business of his company is to acquire gold mining concessions and to process the ore taken from them. The open cut mining on Mann's main concession in Hillgrove, New South Wales, is carried out by Rathenau Ltd. It is a small company owned and operated by its two directors, Mr Barrie Bauer and Mr Murray Kapp. Rathenau Ltd has its own taxation arrangements in regard to the work of the men. Since mid-1995, the men have worked the concession, with Bauer dynamiting the ore face and Kapp operating the front-end loader. After dynamiting, Kapp scoops up the ore with the front-end loader and loads a truck with the ore, which is then driven to the Weimar processing plant nearby. Until 1998 Rathenau Ltd leased the truck from Weimar Investments Ltd on terms that were very advantageous to Rathenau Ltd. The company now owns and operates a truck, with its operational expenses met entirely by the company, except for its registration, which is in Bauer's wife's name but paid for by Weimar Ltd..... (15 marks)

 

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