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Michael from First Aid Oz discusses the importance of understanding duty of care and incident reporting in first aid, particularly for those involved in employment or self-employment. Duty of care entails a legal responsibility for the health and safety of others while providing services. If an incident occurs where someone is injured and requires medical attention, the individual is primarily responsible for ensuring that appropriate first aid is administered. This responsibility extends beyond the immediate service provided, emphasizing the need for first aid responders to be aware of their legal obligations and the proper procedures to follow in such situations.