Master Builders NSW June-July 2018 by News Corp Custom Publishing

MASTER BUILDER Official Magazine of the Master Builders Association of NSW | Issue Three | June/July 2018

TOWER POWER AT BARANGAROO

TAX TIPS

Make the most of your financial year

a low in the industry The fight to beat suicide

LAPPING IT UP Pool Awards showcase

CONTENTS

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CONTENTS

Contents

MASTER BUILDER Official Magazine of the Master Builders Association of NSW | Issue Three | June/July 2018

In this issue REGULARS

5 7 9 52 62 63 66

Contact List President’s Viewpoint Executive Director’s Viewpoint Regional Roundup Looking Back Dates for Your Diary What’s New

TOWER POWER AT BARANGAROO

TAX TIPS

Make the most of your financial year

A LOW IN THE INDUSTRY The fight to beat suicide

LAPPING IT UP Pool Awards showcase

FEATURE ARTICLES

11 Tower Power The incredible regeneration of Barangaroo

A Low in the Industry

About the cover: Master Builder member Lendlease’s world-class development at Barangaroo wins a wealth of awards (Page 11).

Tackling mental health in building and construction

Tax Time Tips and checklists for your business

Published by

Lapping it Up The 2018 Excellence in Pool Awards

GENERAL FEATURES

Apprenticeships Facts and stats from the apprenticeships and career advisory service

Training Best practise in waterproofing training

Legal Mediate don’t litigate

Workplace Health & Safety Aviation warning lights SafeWork NSW responds to infrastructure boom

Women in Construction Graduation for empowering women program

Insurance Understanding management liability insurance

News Corp Australia is the exclusive Publishing Partner of the Master Builder magazine. ABN: 63 009 820 035 Phone: (07) 4690 9422 | Fax: (07) 3220 6447 Website: www.newscorpaustralia.com Custom Publishing Manager: Brooke Gardner 07 4690 9309 | M 0407 406 518 brooke.gardner@newsregionalmedia.com.au Senior Editorial Liasion: Josie Adams 07 4690 9454 | M 0437 819 696 Josie.Adams@thechronicle.com.au Media Sales Consultant: Maddysen Sears 07 4690 9349 | M 0417 382 101 Maddysen.Sears@newsregionalmedia.com.au Graphic Designer: Jeff Brown Printed by: APN Warwick Print Press This publication is copyright. No part of it may be reproduced, stored in a retrieval system or transmitted in any form or by any means including electronic, mechanical, microcopying, photocopying, recording or otherwise without the permission of Master Builders Association of NSW or News Corp Australia. Disclaimer: Readers are advised that the Master Builders Association of NSW and the publisher cannot be held responsible for the accuracy of statements made in advertising and editorial; nor the quality of goods and services advertised.

Issue Three | June/July 2018 | MBA NSW

CONTENTS

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CONTACTS

Contacts Contents

MASTER BUILDERS ASSOCIATION OF NEW SOUTH WALES 52 Parramatta Road, Forest Lodge NSW 2037 | Private Bag 9, Broadway NSW 2007 Tel: 02 8586 3555 | Fax: 02 9660 3700 | Email: enquiries@mbansw.asn.au Website: www.mbansw.asn.au | ABN 96 550 042 906

HEAD OFFICE EXECUTIVE BOARD

Martin Patience Simon Pilcher Ross Mitchell Chris Calderbank Park Mick Banks Mike O’Donnell Bob Black

EXECUTIVE

Executive Director Executive Assistant

CAREERS ADVISORY SERVICE Careers Advisor Careers Advisor Manager

President Deputy President Immediate Past President Vice President Vice President Vice President Vice President Brian Seidler Amanda de Vries

EVENTS & BUSINESS DEVELOPMENT Awards Coordinator Awards Coordinator Assistant Special Projects Officer

OPERATIONS 8586 3503 8586 3507

MBA INSURANCE SERVICES

FOREST LODGE OFFICE NSW State Manager Mark Barnes Senior Account Manager (General) Edwina Lyall Account Executive (Corporate) Diane Craven SME Team Leader (Genera) Jess Walsh Snr Account Executive Hilda Marfo Account Executive Harry Rankin Account Executive Linda Thompson Account Executive Diego Califato Business Development Manager (General) Dele Omisore Business Development Executive Patrick Rafferty Business Development Assistant Shaian Carmona Business Development Manager Alan Fraser Account Executive – Ballina Team Leader – Warranty Peter Usher Senior Account Executive – Warranty Daniel Vine Account Executive – Warranty Kirra Lee Parr National Business Development Manager (Surety) Bill Korakis NEWCASTLE OFFICE Business Development Manager Leanne Farmer Account Executive – Warranty Jayne Cornwell NORTHERN REGIONS OFFICE Business Development Manager Alan Fraser Account Executive – Ballina

MASTER BUILDERS FINANCIAL SERVICES Leasing and Car Search

Ogarit Kelley

MEMBER SERVICES

Manager Member Services Graham McGuiggan Membership Coordinator Paul Love Membership Sales Support James Stevenson Member Engagement Representative Josephine Lee Marketing and Website Support Samantha Harris Administration Assistant Sarah Gunn

8586 3519 0466 431 218 8586 3570 0412 806 700 8586 3594 8586 3556 0478 401 931 8586 3501 8586 3528 8586 3568 9296 6605 8586 3583 0410 234 605 0466 770 910 8586 3565 0481 906 275 9296 6604 6681 4266 0410 234 605 8586 3512 8586 3566 9296 6608 8586 3541 0431 658 067 4979 0115 0466 777057 4979 0110 6681 4266 0410 234 605 0414 919 194 8586 3554 8586 3540 0413 306 556 8586 3581 8586 3569 8586 3572 8586 3545

NORWEST EDUCATION CENTRE & TRAINING 5 Burbank Place, Baulkham Hills NSW 2153 Tel MBA Skill Recognition Centre

INDUSTRIAL RELATIONS AND SAFETY Director Construction Executive Officer Safety & Risk Industrial Relations Officers Safety Officers Secretary – IR & Safety IR Administration Officer Industry Sector Co-ordinator

Susan Manning Linda Morris Amanda Kelly

8586 3506 8586 3564 8586 3504

Craig Donovan 8586 3537 Omesh Jethwani 8586 3539 Amanda Kernaghan 8586 3580 Steven Swan 8586 3562 Lynda Gladwin 8586 3549 Alexander Ashley-Carrington 8586 3525 Haley Tibbetts 0412 980 829

FINANCE & ADMINISTRATION

Manager Finance & Administration Strebre Delovski Credit Control Manager Frank Chevell Credit Officer Daniela Fraumeni Inventory & Administration Officer Georgia Hunt Accounts Payable Officer Bridget Delmore Assistant Accountant Sebastian Aguilera Reception #2 Charles Martin Room

8586 3508 8586 3509 8586 3567 8586 3527 8586 3510 8586 3511 8586 3526 8586 3546

REGIONAL OFFICES NEWCASTLE OFFICE

Level 1, 165 Lambton Road, Broadmeadow NSW 2292 Hunter Region Manager Len Blakeney Member Services Representative Ashleigh O’Brien Receptionist Jenaya McNaught Industrial Relations Officer Shona d’Arbon Industrial Relations 0fficer Ben Ziolkowski Membership Officer Kevin Sullivan Safety Officer John McGhee NSW Regional Office & Divisional Coordinator Luke Reeves Events and Training Coodinator Kerri Richards Trade Events Coordinator Rebeccah Kilmurray MBA Insurance Services Jayne Cornwell Business Development Manager – Warranty Leeanne Farmer

NORTHERN REGIONS

1/95 River Street, Ballina NSW 2478 Regional Coordinator Matthew Meury Member Services Representative Marlee Rudgley MBA Insurance Services Alan Fraser

GOSFORD

Unit 7/4 Stockyard Place, West Gosford NSW 2250 Member Services Representative

SOUTHERN REGIONS

Unit 1, 171 Princes Highway, Ulladulla NSW 2539 Regional Coordinator Lynn Smith Member Services Representative Teresa Townsend

8586 3533 8586 3538

35 Hovell Street, Wodonga VIC 3690 Regional Manager Steve Donaghey Administration Assistant Ashlee Lempa

Robert Collings Hannah Shephard

8586 3517 8586 3517

PORT MACQUARIE

Peter Glover David Solomon Iain Jarman Matthew Gissane Alex Gohari Chris Schultz Leon Lenzo Nicholas Ruston Beverly Glover Annette Gee Tracey Van Breugel

8586 3535 8586 3552 8586 3502 8586 3573 8586 3529 8586 3522 8586 3524 8586 3607 8586 3523 8586 3531 9296 6666

WOLLONGONG

Tel Apprenticeship Services Manager Karen Kellock Head Solicitor Solicitor

0412 499 754 0429 576 417 0458 234 735

ALBURY/WODONGA

APPRENTICESHIP SERVICES LEGAL

8586 3588 1300 884 315

Director Operations Government Projects & Programs Manager ICT Manager Communications Communications Coordinator IT Support/Webmaster Sponsorship Relations Manager

Steve Magner Daniel Edwards Karen Kellock

Unit 3, 12 Jindalee Road, Port Macquarie NSW 2444 Member Services Representative Kerrie Clark Unit 3, 29-35 Princes Highway, Unanderra NSW 2526 Member Services Representative Ruth Billington Regional Coordinator Lee Tanks

ORANGE

Level 1, 296-298 Summer St, Orange NSW 2800 Regional Coordinator Chris Dunn

MATES IN CONSTRUCTION

Hotline

4953 9400 4979 0101 4979 0103 4953 9400 4979 0116 4979 0107 0439 157 141 4979 0112 4979 0109 4979 0105 0499 022 677 4979 0110 4979 0115 0466 777 057 6681 4266 0428 412 784 9296 6717 0410 234 605 4323 4588

4454 1955 0418 633 297 4454 1955 02 6058 2000 0402 044 075 02 6058 2000 6581 4033 6581 4033 4272 9409 4272 9409 0419 140 126 02 6362 6895 0458 243 976 8586 3575

Issue Three | June/July 2018 | MBA NSW

CONTENTS

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BUILDING CONFIDENCE

Introduction Contents

From the President

BUILDING CONFIDENCE IN THE INDUSTRY I thought I would share with you an interesting exerpt from the recently released Building Confidence Report. This report, also known as the Shergold and Weir Report, was commissioned by the Building Minister’s Forum (BMF) in mid 2017. The BMF is the group of Australian Government, State and Territory Ministers that has the responsibility for building and construction. This group has direct impact to the Australian Building Codes Board (ABCB) which is responsible for the development of the National Construction Code (NCC). The terms of reference include examining compliance and enforcement problems within the building and constructions system across Australia and how they impact on the NCC, particularly with regards to: • Roles, responsibilities and accountabilities of the diferent parties; • Education and training; • Licensing and accreditation; • Accuracy of design and documentation; • Quality control and assurance; • Competencies of practitioners; • Integrity of private clarification and inspection regimes; and • Product importation.

The interesting exert from the report relates to the “responsibility of builders”. The responsibility of builders “The quality of buildings depends heavily on the competency and integrity of builders. There are many builders that have high standards of competency and integrity. However, the rates of disputes, alleged defects and reports of high levels of illegal phoenix activity are evidence that there are shortcomings in the performance of some builders. These need to be addressed. Independent inspections of building work are required in most jurisdictions as a mechanism for overseeing the work of builders. However, the majority of building work is constructed without oversight. Mandatory inspections are limited in their ability to detect non-compliance. Some of the most important safety elements are hidden from view and a point-in-time inspection cannot properly assess essential construction processes. Whilst inspections during building work have merit, the competency of builders will always be a critical factor in the effective implementation of the NCC. The [report’s] recommendations are intended to strengthen the competency of builders by requiring consistent requirements not only for the registration of all builders but also for sub-categories that limit the scope of work that can be performed based on skills and competencies. It is also recommended that builders receive compulsory education on the NCC. The content of that education should be based on intelligence about common forms of non-compliance detected by regulators and insurers.

surveyors. The recommendations provide for a strengthening of the independence between builders and building surveyors. They include placing obligations on private building surveyors to report builders who do the wrong thing. It is imperative that builders play their part in helping to redefine the role of private building surveyors. Builders need to recognise that inappropriate relationships with private building surveyors undermine the whole system. The [report’s] recommendations call for improvements to the quality of documentation and to increased controls over design-andconstruct approaches to building. These changes should give greater protection to builders. For these changes to be effective, builders must ensure that they build to approved documentation and that where a design in unclear or not practical they call for variations to be documented before proceeding with work. For design-and-construct projects, builders must resist proceeding with work beyond the approved design. When products are being selected or substituted, the builder needs to know when to seek permission from the building surveyor. A copy of the full report can be accessed at bit.ly/Shergold. I would be happy to receive any comments from members at executive@mbansw.asn.au. Martin Patience MBA NSW President

The integrity of private certification has been questioned, largely because of the relationships between builders and private building Issue Three | June/July 2018 | MBA NSW

SECTION HEADER

REVIEW

Introduction Contents

From the Executive Director SECURITY OF PAYMENT LONG-AWAITED REVIEW BEGINS As we went to print, the long-awaited review of Security of Payment laws in force across Australia was released. The purpose of the review, announced in December 2016, was to identify legislative best practice, with a view to improving consistency in Security of Payment legislation. Further, the review was to identify the level of protection afforded to construction industry contractors, so as to ensure payment for work which has been completed, or for goods and services that have been supplied. The review was conducted by Mr John Murray, AM, with assistance from the Australian Government Department of Jobs and Small Business. Some members may recall that Mr Murray was the former national Executive Director of Master Builders Australia. Mr Murray’s report is more than 300 pages long and contains 86 recommendations. In identifying an effective security of payment regime, the review indicates that an effective Security of Payment regime is underpinned by three policy considerations: 1. Preserving the cash flow of the party that has carried out construction work or provided related goods and services by enshrining it right to received prompt progress claims;

and efficiently determined so that prompt payment can be made; and 3. Protecting payments made in respect of a progress claim so that the party who receives the payment holds the payment for those to whom it is rightfully due. The review notes that it is time that the issue of security of payment is dealt with at a national level in a cohesive and co-operative manner. It is also clear that the only way to achieve a nationally consistent and an effective set of Security of Payment laws is with Australian Government involvement, and this will mean that all relevant State and Territory ministers will need to work together. Importantly and encouragingly for NSW builders, the review is in favour of including homeowners in the Security of Payment regime. This was one of MBA/NSW’s principal recommendations during stakeholders meetings. A copy of the full review can be down loaded here: bit.ly/SOP_review Brian Seidler MBA NSW Executive Director

2. Providing an adjudication process that ensures disputed payment claims are quickly

Issue Three | June/July 2018 | MBA NSW

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MBA NSW | Issue Three | June/July 2018

BARANGAROO

ContentsArticle Feature

Tower power After arriving in Australia with 35 tradesmen and $10,000 in his pocket in 1951, Dutch immigrant and innovator Dick Dusseldorp has come a long way in the building and construction industry. He formed Lendlease in 1958, out of a vision to create a company that could successfully combine the disciplines of construction, development and investment. Lynda Turnbull reports.

Issue Three | June/July 2018 | MBA NSW

Contents Feature Article

BARANGAROO

r Dusseldorp said in 1973: “Companies must start justifying their worth to society, with greater emphasis placed on environmental and social impact rather than straight economics.”

Today, the company can boast one of the finest architectural achievements in the world – Barangaroo in Sydney has won 51 awards to date and it has been a finalist or highly commended in a further 16 categories (see factbox for examples). Working in partnership with the NSW Government, Lendlease has created the ultimate business address. It has regenerated 22 hectares of industrial land to create new parks, harbour walkways and a dynamic extension of Sydney’s Central Business District. Comprising of three skyscrapers, International Towers Sydney at Barangaroo has been designed by the internationally acclaimed architects Lord Rogers and Ivan Harbour from Rogers Stirk Harbour + Partners. The towers, reaching 217m tall, 178m and 168m tall, are considered to be of world-class design, showcasing the utmost in environmental thinking and positioning Australia as an international leader in building a sustainable future. The three towers’ design comprises of 280,000m² of premium office space, accommodating more than 20,000 workers at present. The large, flexible 2,400m² floorplates

MBA NSW | Issue Three | June/July 2018

enable occupants to personalise and arrange their office spaces according to their needs. Day-lit lift lobbies, panoramic prows from a 50-storey construction, 100 per cent fresh air, high ceilings and large open vertical spaces throughout the building all combine to promote a state-of-the-art workplace.

development outcomes for the community and future generations.”

Benchmarked against the best office developments in New York, London, Hong Kong, Singapore and Shanghai, its large flexible floor plates have attracted many companies including Westpac, PwC, HSBC, KPMG and Gilbert + Tobin.

Among the park’s most outstanding sustainability achievements are:

Lendlease managing director Barangaroo South Rob Deck said: “Lendlease’s mandate is to create the best places…Put very simply, Barangaroo South has become a place that people want to be, and we could not be prouder. “Barangaroo South has also provided a rare opportunity to explore and innovate with new products, systems and methodologies. This includes important initiatives such as International House, Sydney, currently the largest engineered timber commercial building in the world, and the innovative Barangaroo Skills Exchange (BSX) in which we partnered with TAFE Enterprise to help more than 10,000 workers gain more than 20,000 accredited training outcomes in their workplace. “We believe Barangaroo is a model for how Government and the private sector can work together to deliver large-scale urban regeneration projects that maximise the

The six-hectare park, which was a former container terminal, involved the recreation of a naturalistic headland designed to mimic the pre-1836 shoreline on the western edge of Sydney’s Central Business District.

• In total, 98 per cent of excavated fill material, or 200,000m³, has been reused within the park. This volume sets out a new precedent in materials reuse, saving up to 60,000 truck movements throughout the centre of Sydney. • Over 10,000 sandstone blocks have been used for the sandstone foreshore and throughout the park. Ninety three per cent of this sandstone was sourced from the site’s extraction pit, beneath the underground car park of the Cutaway cultural space. • Beyond its original purpose as an extraction pit, the space beneath the underground car park also served as the final location for the state-of-the-art integrated water reuse system, which captures treats, stores and reuses seepage and storm water for irrigation of the park. • Two tanks – an enormous 1,200m³ rainwater tank and 180m³ seepage tank will irrigate Barangaroo Reserve during and beyond the park’s 100-year design life. • A special soil containing crushed sandstone from unused blocks and recycled waste

BARANGAROO

ContentsArticle Feature

was especially manufactured for the park to replicate the sandy texture of the original headland, allowing plants that had once flourished there to fix their roots again. • The remarkable planting program, comprising 675 trees, 2,200 shrubs and 75,000 plants all native to Sydney, has been hugely successful with a failure rate of less than 1 per cent. The Barangaroo project is also targeting a net carbon neutral outcome for the precinct inclusive of on and off-site renewable energy, waste and commuter carbon emissions. In a world first, Lendlease’s International Towers Sydney have been awarded the highest level grading in the WELL Building standard. The new standard rates buildings on how well they support the health and wellbeing of their occupants by assessing the impact of air and water quality, nourishment, light, fitness and comfort. Lendlease chief executive property Kylie Rampa said: “There’s been a big focus on sustainability and having sustainable buildings and sustainable precincts…We see this as the next evolution. It’s about attracting major corporate tenants that are focused on the evolution of their workplace, their ability to attract and retain talent.”

from Barangaroo travelling by public transport, bike or on foot, the integration of transport links is vital. The Barangaroo project is supported by a cohesive transport network, which includes:

Barangaroo South is visited daily by thousands of people who are drawn to its vast array of cafes, restaurants and shops, as well as the parkland.

• New bus routes to Barangaroo and along Hickson Road

With 96 per cent of people arriving or departing

• A new western ferry hub at Barangaroo for workers and visitors

• Extensions to Wynyard’s rail and bus interchange, including the new Wynyard Walk

pedestrian tunnel and bridge • New cycleways and facilities to accommodate up to 1,000 cyclists within the precinct. From winning a host of awards for its internationally acclaimed design to its superior construction, environmentally sustainable initiatives and integrated transport network, Barangaroo really does have it all. Be sure to check it out next time you’re visiting the Emerald City. Issue Three | June/July 2018 | MBA NSW

BARANGAROO

Contents Feature Article

How Barangaroo was built: 1) Large contiguous floorplates of approximately 2,300 sq m offering a flexible solution. 2) High performance solar shading facades orientated to offer a sustainable environment. 3) Vertical Villages located in the mid and high rises with the flexibility for vertical connections between floors. 4) Landscaped podium roofs of up to 3,000 sq m for enhanced tenant amenity including fresh air, natural light and views. 5) Outdoor sky terraces designed for employee attraction and activity. 6) Vertical gardens within the low and mid rises for visual amenity from tenancy space. 7) Solar photovoltaic panels for renewable low carbon energy generation. 8) High-speed fibre optic backbone for base building services. Flexible work spaces that include: 9) 150mm access floors for fit out flexibility and greater connectivity. 10) Ceiling heights of 2,900mm of typical floors, higher than industry standard. 11) Ceiling heights of 3,100mm on designated client floors at the top of each rise. 12) Bathrooms and fire staircases capacities designed beyond industry standard and accessibility code.

Awards highlights 1) Property Council of Australia Innovation and Excellence Awards 2018 2018 Development of the Year: Barangaroo South 2) Property Council of Australia Innovation and Excellence Awards 2018 Best Sustainable Development – New Buildings Barangaroo South 3) UDIA National Awards for Excellence 2018 President’s Award – Best of the Best: Barangaroo South 4) Master Builders NSW Excellence in Construction Awards 2017 Excellence in Resource Efficiency: International Towers Sydney, Barangaroo 5) Master Builders NSW Excellence in Construction Awards 2017 Commercial Buildings $150,000,001 and over: International Towers Sydney, Barangaroo 6) Australian Timber Design Awards Australian Timber Design Award 2017: International House Sydney 7) Australian Property Institute (API) National Excellence in Property Awards Best Environmental Development 2017: Barangaroo South 8) International Lighting Design Awards for Australia and New Zealand Award of Excellence 2016: GenLED One Luminaire (developed for Barangaroo) 9) The National Association for Women in Construction (NAWIC) Excellence Award for Contribution to a Project’s Development 2016: Tower Three International Towers Sydney (Joanne Lees) 10) Australian Steel Institute Steel Excellence in Engineering Projects 2016: City Walk (now called Napoleon) Bridge.

MBA NSW | Issue Three | June/July 2018

TRAINING

ContentsArticle Feature

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Living

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Lounge

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Issue Three | June/July 2018 | MBA NSW

Contents Feature Article

SUICIDE PREVENTION

A low in the industry The alarming rate of suicide among male workers in the building and construction industry has led to a concerted effort to stop these tragedies from happening.

onstruction workers are more than two times as likely to suicide than Australian men in general. Indeed, young construction workers are almost six times more likely to die from suicide than a workplace accident, according to Mates In Construction.

Mates in Construction is a charity that was set up to try and combat the terrible rate of suicide in the industry. According to CEO Brad Parker, every year 190 people who work in the construction industry, take their own lives. The charity has reduced suicide by almost 8 per cent since its formation in 2009. “We have a very simple model but it’s very effective. We have created a network of carers who will assist people to identify the signs of suicide and connect those people to help,” Mr Parker says. “The program uses world’s best practice that has been tailored into language that construction workers understand. It was the genius of construction industry management and employees who came together for the common good of everybody on a site, to prevent suicide in the workplace,” he says. Mates In Construction offers three areas of training across the industry: • General Awareness Training – site visits to train workers in suicide prevention • Connector – strategies to help people with suicidal thoughts • Asist – training of health and safety managers “It’s mates looking out for mates and mates helping mates. It goes further than preventing suicide attempts – our program develops a caring sanctuary for those with depression or mental health issues,” he says. There are many factors that contribute towards suicidal thoughts, including long working hours, job insecurity, bullying, financial concerns, relationship issues and there is a higher rate of drug and alcohol abuse within the industry –

MBA NSW | Issue Three | June/July 2018

which exacerbates all of these problems. “We also need to remove the stigma that surrounds mental health issues, which causes people to try to cover up thoughts of suicide,” Mr Parker says. As Mental Health Commissioner Lucy Brogden tells Master Builder: “I think there is a strong appetite for reform in Australia across the mental health sector. We’ve made a lot of progress in the past 30 years or so to improve access to care for people and quality of care, but we’ve still got a long way to go.” Indeed, at a time when one in 500 will attempt suicide in a year, and 1 in 20 will consider it as an option, Australia has one of the highest suicide rates in the world. “We spend the majority of our waking hours at work, so our workplace has a strong role to play in prevention and recovery,” Commissioner Brogden says. Projects like Mates In Construction, Mates in Mining, Mates in Energy and Beyond Blue are

all working towards to reducing the suicide rate but there is a need for higher levels of funding. As Mr Parker says: “Take-up of the service in NSW is currently outstripping supply significantly, where the service is not actively promoted…Additionally, our experience of work in regional NSW has confirmed significant need for service rollout, with high levels of lived experience of suicide in each session delivered.” Suicide in the Australian construction industry costs the economy more than $1.5 billion a year. However, over the past 10-15 years, we’ve seen increased investment in mental health at state and federal level. “There is every indication that these programs will maintain their support and that the government will aim to maintain the good mental health and the wellbeing of Australians. There is bipartisan support for mental health initiatives across Australia,” Commissioner Brogden says.

Picking up the pieces • A 35-year-old case worker and field officer with Mates In Construction NSW suffered depression, Post-Traumatic Stress Disorder and Assimilation Disorder. • In the Army’s engineer core for 13 years, he fought in East Timor and Afghanistan in 2008, 2009 and 2010. His family have been in the Army for a total of 70 years. • Being discharged from the Army in 2014 was one of the most stressful things he had ever experienced. • He started smoking ice and cocaine until he quit drugs in 2016. • Remembering his mother crying was the only thing that stopped him suiciding. • While he does not take medication, he self-manages his illness through meditation and surfing. • Finds his work at MIC very rewarding as he draws on personal experience. • His favourite quote is by Chinese philosopher Lao Tzu: “If you want to awaken all of humanity, then awaken all of yourself. If you want to eliminate the suffering in the world, then eliminate all that is dark and negative in yourself. Truly, the greatest gift you have to give is that of your own self-transformation.”

MENTAL HEALTH

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MENTAL HEALTH AND WELLBEING IN WORKPLACES Omesh Jethwani, Government Projects & Programs Manager, held an in depth conversation with Mrs Lucy Brogden, Chair of the National Mental Health Commission on mental health and wellbeing in workplaces.

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On 2 August 2017, the Turnbull Government announced your appointment as ‘the next Chair of the Australian Government’s National Mental Health Commission’. How has your journey been so far as the National Mental Health Commissioner?

I was actually appointed to the commission in 2014 as a Commissioner and the announcement in August last year was to move into the role of Chair of the Advisory Board of Commissioners. I have had nearly 4 years in the Commission and about 6 months in the chair role. In the four years I have certainly learnt a lot and been able to contribute a lot to the Commission. There is a strong appetite across Australia for reform within the mental health sector. We can acknowledge that we have made a lot of progress in the last 30 years or so to improve access to care for people and quality of care but we've still got a very long way to go. In 2014, I was part of the Advisory Board of the Commission that put the big review of the system to the Government with a series of recommendations for improvement and we were very pleased that the Government accepted all but one of those recommendations. Along with many others, we are working on the implementation of those recommendations which see Governments across the country both State and Territory level moving to a proper step care model in mental health. We see the cultural shift and the structural change to a truly personal model of care in mental health. In that respect it is quite an exciting time. We are also monitoring the role of the Insurance Scheme. So there is really an awful lot that's going on in terms of mental health in this country.

Are the above initiatives solely targeted at the workforce?

All of these initiatives are what we call structural and system reforms and we are taking a whole of life lifespan approach. So actually our philosophy and our modelling and our design starts at prenatal care for

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both mothers and fathers prior to conception, pregnancy support in the perinatal stage in terms of mental health and well-being right through the lifespan to our elderly. It also surprises people that the highest rate of suicide by age in this country is men over 85. We need strategies right across the lifespan to support people. In terms of the cultural reform that I talked about, in terms of a person-centred approach, the workplace sits very close to the centre of that circle. We spend the majority of our waking hours at work and so our workplace has a strong role to play in both prevention and recovery. In terms of why men over 85 kill themselves, as with all suicide, it’s a multi-faceted situation but there is strong evidence that loneliness has a role to play, a sense of burden can also be an issue, failing physical health can also be an issue. It is a complex area but it needs to be well understood and well supported.

To a classroom of six-year-olds in a show and tell, how would you describe your role and responsibilities?

That's a great question! I have three children, ages 14, 12 and 10 and I spend a lot of time trying to explain to them about mental health. I have spoken at their schools about what I do. It is interesting because most people are very comfortable with me talking to children about mental illness but there is the occasional person who still thinks that this is something that shouldn't be talked about but our own children talk about it very openly. But In terms of telling, what I would say to a 6 year old is that, we have to look after our physical health. We need to eat well, we need to exercise, and we go to the doctor when we don't feel well. We all have to look after our mental health and how we feel on the inside in terms of being happy, or sad, or just not sure about how we feel. We can do that by making sure that we

certainly eat and sleep well, which is good for our physical health and mental health and that we get the right amount of sleep and that's why our mums and dads try to put us to bed at a good bedtime. Sometimes if that doesn't work, we need to go and see the doctor because we are having trouble understanding how we might be feeling on the inside and that is OK too, to get that kind of help. My role is to make sure that systems and services are there for those people too.

Have you ever been confronted with a question raised by students on the definition and meaning of mental health? Lots of kids are interested but I’ve got to say there is a really good awareness in terms of children understanding broadly the concept around being depressed or anxious. When you get further down the illness spectrum, things like eating disorders and schizophrenia etc, there is less awareness. But equally, children are really good at asking questions and are sponges of knowledge. They are happy to lead a conversation and learn more all the time.

On 2 February 2018, the Australian Institute of Health and Welfare’s (AIHW) web report estimated four million people having experienced a common mental disorder in 2015. That is nearly 20% of the country’s population and it is predicted to increase quite significantly. What are the main factors, in your opinion, causing the numbers to increase?

This is a hideous term but it is the term that health policy people use. That is the burden of disease. That is what we would expect in a population like Australia, around 20% of the population to experience a mood disorder, at the very mild to moderate end of the spectrum. In terms of the increase, the increase they are talking about is not the proportion of the population but as the population grows more people will be seeking support. It's a good thing and is a reflection on the work that is being done by many people to reduce stigma. People are getting more comfortable to put up their hand and seek help and say that they are struggling with an issue, that they are not sure what's going on for them. So there

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is a plus side in that. People are prepared to seek help and identify the issues they are struggling with. On the other side, we as a society need to manage the known risk factors that are likely to lead someone to experience a mood disorder, particularly depression and anxiety. We need to create a stronger sense of hope in society. We are very good in Australia at being critical of things rather than actually providing people with a message of hope. Young people often hear that they won't get a job and will never be able to afford a house. These are stresses. As a society, we need to create more opportunities to convey the hope and talk about the positive. We need to understand the risk factors and what is stressful for people and that is where particularly the workplace has a role to play because there are stresses in the workplace that can be managed and mitigated.

Do you think the way media has reported mental health has been one of the major factors that has created negativity and caused society to be critical and less supportive?

I don’t know that there is a direct correlation to the media but I think the media certainly has a positive role to play. The Mindframe media guidelines that the Commonwealth Government funds and supports has a program that goes out and trains journalists and media students around issues to do with mental illness so that they can improve the quality of their reporting and how they describe issues to do with mental health and suicide. We have seen a really big improvement in that regard. There is still a sense that bad news sells and good news doesn’t. I am not convinced that that is the truth but there seems to be a perception out there. I would like to see people putting a more positive lens on the society that we live in. It is ok to be critical and identify issues but to put some balance in there that it is not all bad, it is not all negative and that it is not all broken. There are many good things going on in society, there are many good things going on in our community that we should be highlighting some of the positive too.

You have made a very valid point and this is something we talk about quite a lot. If you look at the burden of disease and the amount of the population affected by mental illness and you look at the proportion of budget spent, Government money spent on the issue, it's certainly significantly less.

Do you think the R U OK National Day is an action that should be practised regularly rather than a yearly event? The R U OK theme would encourage everybody to regularly check in on friends, family, and colleagues, particularly if they think there is a reason for concern and that the day itself is a good reminder that we should be doing this quite regularly. We do hear great stories of people outside of the R U Ok Day actually checking in with people and feeling more confident about asking someone if they're okay and this is all great progress that we are making. There are people who often say “I'm worried about asking someone if they're ok, just what if they say no”. We know there is no harm in asking someone if they are ok. The R U OK model doesn’t expect people to all become psychologists overnight. It just asks us to be truly human and sit with that person if they are struggling and be a support to them, listen to them and be present. If people want to know more, there are great tools on how to have conversations. There is a website “Conversations Matter” (www.conversationsmatter.com.au/) they can go to if they feel they need some skills, but really we can all reach out and be human to our friends and colleagues.

AIHW’s recent update web report stated that $9 billion or $373 per person was spent on mental health-related services in Australia during 2015-2016, an increase from $354 per person in 2011-12. While the lump sum seemed extremely high, on average per person, it seems to barely scratch the surface and it does not emphasise the importance of these services. Why do you think this is the case?

But at the same time, a lot of this is not just about money or more money — while more money would be fantastic. It is also about doing things that we know work and doing them well. There is catch up to be made in terms of the investment that we make as a society into mental illness. That reflects possibly the stigma of the past where people with mental illness were not talked about, they were often hidden away in asylums. There is certainly catch up to be made but there is certainly opportunity to spend the money that we do have more effectively.

Has any research been carried out previously which has listed the top 3 industries to suffer most from mental health issues? If yes, which are the top 3 industries?

There is a lot of research by industry and occupation. I am not sure how helpful it is to put a ranking on industries because I think to someone suffering, it does not matter where they are suffering, they are all suffering. Depending on where we work, we all have a role to play in reducing that suffering in terms of prevention and recovery. We know that there are issues for first responders, we know there are issues for our military and some of those are quite obvious in terms of the trauma they encounter. But equally the trauma encountered by people working in professional services can be just as debilitating and just as stressing. I prefer to take a view that says that there are risks in any occupation and that we have a legal responsibility across all occupations but we also have a moral responsibility to support our colleagues irrespective of the profession that we work in.

In March 2017, you presented at Mates in Construction Workplace Mental Health Conference addressing Industry Leadership. What are your personal views of the Mates in Construction Issue Three | June/July 2018 | MBA NSW

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model and do you think this is a model that should be introduced for all industries? Mates in Construction was introduced and Mates in Mining and in Energy too. It’s really up to the industry to know what works best for it.Certainly the Mates model is working very well in the industry that it is in. But equally there are similar groups doing similar kinds of work in other industries. I take a view that these things are best ironed and accepted when they are evolved out of the community or the profession that sits behind it. Each industry needs to look at itself and work out what is going to work best for the people in that industry, what model they are going to be most receptive to. We are doing some really interesting work at the moment through every mine based in Newcastle. Icare in New South Wales is looking at small and micro businesses and what they might be able to do. I know that the accounting profession is looking at what they can do for their members and vets are looking at what they can do to improve wellbeing. It is a matter of knowing your community and designing a program with your community that is going to work best for you.

Organisations are encouraged to develop a comprehensive mental health and wellbeing strategy. What are some of the strategies that you could recommend to our readers?

I would suggest to readers that they look at the Heads Up website (www.headsup.org.au/), which is an initiative of “The Mentally Healthy Workplace Alliance” and hosted by Beyond Blue. There are some things that businesses of all sizes can look at to do. But the No.1 recommendation for business that we say they need to look at is their job and work design. A lot of people think it is about yoga and fruit bowl; that is kind of my hashtag, beyond yoga and fruit bowl. That’s just playing at the margin. It is really about good job and work design; so how are you structuring the work of your team, how are you structuring the day, are people able to get enough sleep, is it a safe environment for them physically and mentally. Or would someone be safe to disclose that they are struggling with a mental illness.

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response from a sector that knows it has got issues and is wanting to help work with the community and members to address some of those issues. We’ve got the LifeSpan trials in New South Wales funded by the Paul Ramsay Foundation looking at a systemised approach and we have got the Aboriginal & Torres Strait Islander Suicide Prevention Program. Sleep is the No.1 issue — are you allowing people to get sufficient sleep and recovery for their journey and for their wellbeing. It’s about providing the right support and some of these things are for larger organisations to look at. Do they have an Employee Assistance Program (EAP), are they addressing issues to do with bullying, are they addressing issues to do with instability in the workplace. There is a range of things that organisations can do. But what we also know is that it is important that organisations address the negative before they start looking at the positive if that makes sense. So if there are examples of bullying and intolerance in the workplace that they are working in, to manage those issues first, before they bring in the shiny fun stuff.

Suicide and suicidal behaviour in the Australian construction industry is costing $1.57 billion dollars each year, as much as 98 per cent of which is borne by government. In your opinion, is Australia on a par with the rest of the world in reducing suicides?

In terms of reducing suicide, our rate did come down slightly last year, year on year to the prior year but it does still sit at stubbornly high levels. Suicide is a complex issue and very multi-factored. Mental illness plays a part in that but also issues to do with impulsivity, drug and alcohol addictions etc play a part. We are working to do the right thing. We’ve got the Fifth National Mental Health Plan, which for the first time actually now includes suicide prevention. So it is the Fifth National Mental Health and Suicide Prevention Plan (www.coaghealthcouncil.gov.au/Publications/ Reports). So that is a welcome step at the highest level. We have seen fantastic community level projects being developed across the country. Things like Mates in Construction is a terrific

There are a lot of people from grassroots right through to leading academics all working together with Government to try and address the rate. The goodwill is there, the knowledge is there, the programs and structures are there. At the end of the day, a lot of this comes down to people feeling connected to their community and feeling a sense of help and being able to access care when they need it.

Certain industries and workplaces are seen employing Mental Health First Aid Officers to promote good mental health, prevent mental illness and have the tools to support people with mental health issues. In your opinion, would this scheme work to reduce the number of cases? If yes, do you think government would provide employment incentives to assist organisations?

In principle, the more people trained around Mental Health First Aid is a fantastic step but it is one step in a number of steps. If we go back to that earlier answer, if we started things like good job and work design and good work practice, that is going to be a strong mitigating factor to actually reducing issues to do with mental health. Having people trained to help people is really important and is an important contribution. But to me it should be no different to the physical first aid officers that organisations have. Some of these things need to be ironed out by the business themselves and by the industry themselves. They have a legal obligation under Workplace Health & Safety legislation to provide a workplace that is not just physically safe but psychologically safe. Look, if it takes Government incentives, then maybe you need to look at that but really these are just the basic responsibilities of the employer to provide these services and supports to people.

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With the Federal Budget announcement, what, in your opinion, are some of the positive changes we can expect to tackle mental health issues in Australia?

Consistently over the past 10-15 years, we have seen increased investment in mental illness in this country which has been fantastic both at Commonwealth and State levels. This year the Federal Government’s budget made mental health a priority with an additional $338.1 million over the next 4 years. The Commission has a suicide target towards zero. A lot of money has been allocated to Lifeline and beyondblue to support suicide prevention services. Digital mental health services were boosted and already this year we’ve seen a lot of money support the Royal Flying Doctors service, childhood mental health issues and ongoing and increased support for organisations like Headspace. There is every indication that these good programs will maintain their support by both Government and oppositions. This is something that we have good bipartisan support on in this country is improving the mental health and wellbeing of Australians.

In your opinion, will government funding be available to Industry organisations in the near future to assist on behalf of the government in addressing mental health issues in workplaces.

In terms of mentally healthy workplaces, we are not advocating that workplaces are the source of treatment for someone. But we would ask employers that they have a responsibility, they have a responsibility for physical safety and psychological safety. There is no difference. A lot of the things you are doing to provide physical safety for your employees will also provide psychological safety. If you are looking at doing good job and work design, then the outcome of good job and work design is physical safety and psychological safety. In terms of the risk, whether someone develops a mental illness or a physical illness or injury at work, it is not something that you

can screen for, it is the risk that you take by having a workforce. Someone could easily hurt themselves at work, someone could easily develop diabetes or cancer while they are working for you. You still have an obligation to support that person whether it is a mental illness or a physical illness. If people are trying to separate the two then that reflects a lack of understanding around mental illness that we need to overcome.

What are some of the mental health services that may be provided on a larger scale and some that may be cut back based on demand and budget.

As far as I know and I haven’t seen any real cutbacks in services at a Commonwealth level. There is certainly shifting focuses and investments while we transition to primary health networks with various devolution of responsibilities to the primary 31 health networks to take responsibility for budget allocation but in terms of cutbacks to services, there is no recommendations to cutbacks for services.

Susan David, PhD, an award winning Psychologist on the faculty of Harvard Medical School and author of the new #1 Wall Street Journal best-selling Emotionally Agility, quoted that “normal, natural emotions are now seen as good or bad. But when we push aside normal emotions to embrace false positivity, we lose our capacity to develop skills to deal with the world as it is, not as we wish it to be.” Do you agree or disagree with this statement?

I am familiar with Susan’s work and I think she makes a really valid point and it touches on an issue that I try and talk to. I am not a big fan of the term ‘resilience’. I prefer the concept of resourcefulness. Resilience implies that you have a deficit to be overcome somehow

whereas resourcefulness reflects that we all have capacity to overcome issues that we personally find hard to manage. Some of us have a greater capacity to respond to difficult situations than others, some of it is just our basic social problem solving that we have grown up with and had role models for us, some of it is just our physical capacities as much as our cognitive capacities to overcome but we really do need to have some conversations that help us understand the new kinds of emotions and actually equip, particularly young people going forward, to be able to tap into their own capacities. We need to problem solve and to manage issues and that is where I agree that we try and medicalise some issues but at the same time we need a little bit more empathy that not everybody has the same skills and capacities and for some, perhaps its more capacity building than the illness or a treatment that is required.

In addition, Susan David also stated that “Tough emotions are part of our contract with life. You don’t get to have a meaningful career, or raise a family, or leave the world a better place without stress and discomfort. Discomfort is the price of admission to a meaningful life.” Do you think as a nation, we cannot seem to differentiate between a real problem vs a hurdle to overcome and the difference between being sad and suffering from depression?

Actually, I think we can. There are sceptics that say everybody is claiming depression now but most people can tell the difference between being sad and actually depressed. If they can’t, then that actually is a reflection that perhaps they need insight support into understanding the difference. But it is easy for critics on the outside to say that people can't distinguish but for someone sitting with those feelings, we know how hard it is for people to ask for help. But if they are actually asking for help, then there is something going on for them that needs to be respected. If you need support in the industry please contact your Employee Assistance Program or call Mates In Construction on 1300 642 111. Issue Three | June/July 2018 | MBA NSW

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TAX TIME TIPS FOR BUILDING AND CONSTRUCTION WORKERS

or many Australians, navigating the tax system can be quite overwhelming (especially for those engaging in building and construction which is often project-based, contracted work). To help take the stress out of tax returns and to maximise your return, we have some expert advice from Mark Chapman, director of tax communications at H&R Block.

He said: “As we get towards the end of the financial year, it is essential that everyone gets the paperwork ready. The ATO has a strong focus on the building and construction industry and is not happy with the amount people are claiming for work related clothing for example. “The ATO is also focusing on cash jobs that are not claimed, especially with domestic jobs – so declare it and pay the GST. “If you get your paperwork up to date and take professional advice on whether you are entitled to claim for something or not, you stand a good chance of staying out of trouble with the ATO,” he said. Contractor or employee? It’s common in certain trades for people to be taken on as independent contractors rather than employees. Deciding whether a person is a contractor or an employee can be a minefield, both for the individual and for the business taking them on. Getting it wrong can have a big impact, with consequences both for you and the business that has engaged your services. • A contractor (or consultants as they are sometimes called) is a self-employed person engaged for a specific task, at an agreed price, with a specific goal in mind, often over a set period of time. They set their own hours of work and take care of their own tax obligations. Contractors are paid a fee for completing an assignment. They don’t receive a salary or wage and need to pay their own tax from their gross earnings, whilst also making their own superannuation contributions. • By comparison, an employee has tax

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deducted at source from their salary and receives compulsory superannuation payments from their employer.

you have covered the kilometres claimed. A diary of work-related journeys (including the kilometres travelled) will suffice.

Vehicle and travel expenses

• Logbook:

The most important thing to remember when it comes to work-related vehicle and travel expenses is that you must keep records, making everything easier come tax time.

o Your claim is based on the business use percentage of each car expense. This is determined by a log book that must have been kept for a minimum 12 week period, and must be updated every 5 years. Through your logbook you can claim all expenses that relate to the operation of the car, at your percentage of business use.

“You can’t claim tax back unless you have the paperwork to support it… It’s very easy to get to the end of the financial year and to not have kept receipts. Go through all your transactions at the end of the financial year by examining your bank statements and get a copy of the invoice, so you can claim,” Mr Chapman said.

o The logbook must record all business journeys made in the car over the 12 week period that it records, detailing;

If you use your car for work you are entitled to claim the work related travel expenses that relate to the business costs of using your car to do your job.

»» w hen the log book period begins and ends

Travelling to and from work on a daily basis cannot be claimed as this is considered as private travel, even if: you do minor tasks on the way to work, such as picking up mail; you travel back to work for a security call out or parent teacher interviews; you work overtime and no public transport is available to use to get you home. Methods you can use to claim car expenses include:

»» the total kilometres travelled

• Cents per kilometre: o Your claim is based on a set rate for each business kilometre you travel. Under this method you are eligible to claim up to a maximum of 5,000 kilometres per year, per vehicle. If you travel in excess of 5,000 kilometres this method of claim is not appropriate to you. You will need to use the alternate method of a logbook to claim. o The claim value is calculated by multiplying the total business kilometres travelled (limited to 5,000 per vehicle) by the standard rate of 66 cents per kilometre. This figure takes into account all the vehicle running expenses (including depreciation). o You do not need written evidence, however you need to be able to demonstrate that

»» t he car’s odometer readings at the start and end of the period »» t he business percentage for the logbook period o For each journey in the logbook, you must record: »» start and finishing times of the journey »» o dometer readings at the start and end of the journey »» kilometres travelled »» reasons for the journey »» i f you make two or more journeys in a row on the same day, you can record them as a single journey. o You will need to keep all receipts throughout the year to justify your claim, such as insurance, servicing and repairs. Petrol can be estimated using the start and end odometer readings for the year, indicating the total kilometres travelled. o Depreciation is calculated as 25% of the written down value of the car (using the Diminishing Value method). You can claim the cost of work-related car expenses if they are incurred whilst performing your job as an employee, such as:

TAX TIME

• Travelling from your home to an alternative workspace (such as a client/supplier’s office), and then back to your own workplace or home at the end of the day • Travelling between two separate workplaces where you are employed • Travelling to conferences, meetings or other events as required by your employer • Delivering or picking up items/packages related to your job, and as required by your employer Deductions for work clothing When it comes to what you wear to work, there are some clothes-related deductions you can claim – the cost of buying and cleaning occupation-specific clothing such as: • protective and unique clothing (i.e. not everyday wear) • clothing that easily identifies your occupation, like checked chef trousers • distinctive uniforms • clothing and footwear that you wear to protect yourself from the risk of illness or injury posed by your job or the environment in which you do your job. To be considered protective, the items must provide a sufficient degree of protection against that risk, and might include: o fire-resistant and sun-protection clothing (including sunglasses) o hi-vis vests o non-slip nurse’s shoes o rubber boots for concreters o steel-capped boots, gloves, overalls, and heavy-duty shirts and trousers o overalls, smocks and aprons you wear to avoid damage or soiling to your ordinary clothes whilst at work. Claiming the cost of work uniforms: • Compulsory work uniforms o A uniform identifies you as an employee of an organisation. The uniform must be compulsory to wear while you’re at work with a strictly enforced policy ensuring its enforcement. If this is the circumstance surrounding your uniform, the cost is deductible. o Where your shoes, socks and stockings are an essential part of a distinctive compulsory uniform, you may be able to claim a deduction. Their colour, style and type must be specified in your employer’s uniform policy as is sometimes the case with air stewardesses and nurses. It might be possible to claim for a single item of distinctive clothing, such as a jumper if it’s compulsory to wear to work.

been designed and made solely for your employer. Distinctive clothing must have your employer’s logo permanently attached and not be available for public purchase. o You can’t claim the cost of purchasing or cleaning a plain, logo-free uniform, such as generic white shirts or black trousers that wait staff wear. Non-compulsory work uniforms are usually required to have a design registered with AusIndustry in order to be tax deductible. Shoes, socks and stockings aren’t considered part of a noncompulsory work uniform and neither is a single item such as a jumper.

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• Carrying tools or equipment required to complete your job

• internet usage • parking fees • phone calls • postage • stationery • student union fees • student services and amenities fees • textbooks • trade, professional, or academic journals • travel to-and-from the place where the course takes place (only for work-related claims)

It’s possible to claim the costs of washing, drying, ironing and dry-cleaning eligible work clothes. Written evidence for your laundry expenses, such as diary entries and receipts must be kept if both the amount of your claim is greater than $150, and your total claim for work-related expenses exceeds $300. This doesn’t include car, meal allowance, award transport payments and travel allowance expenses.

You can’t claim:

Deductions for courses and training

Mobile phone use

Most of us want to better ourselves at work and a large part of doing that is equipping yourself with the skills you need to advance your career. The good news is that you can often do that, and claim a tax break on the costs you incurred at the same time.

If you use your own phone for work purposes, you can claim a deduction if you paid for these costs and have records to support your claims. If you use your phone for both work and private use, you will need to work out the percentage that reasonably relates to your work use. You can’t double-dip and claim for phone expenses that have been reimbursed by your employer.

Self-education expenses are tax deductible when the course you undertake leads to a formal qualification and has a sufficient connection to your current employment and: • maintains or improves the specific skills or knowledge you require in your current employment, or • results in, or is likely to result in, an increase in your income from your current employment. You can’t claim a deduction for self-education expenses for a course that does not have a sufficient connection to your current employment even though it: • might be generally related to it, or • enables you to get new employment. You can claim the following expenses in relation to your self-education: • accommodation and meals (if you are away from home overnight) • computer consumables (such as paper or ink) • course or tuition fees • decline in value for depreciating assets such as computers or laptops (cost exceeds $300) • purchase of equipment or technical instruments costing $300 or less • equipment repairs

• Non-compulsory work uniforms

• fares (bus/plane/train, etc.)

o In some instances, you can claim for a non-compulsory uniform, given that it’s unique and distinctive to your organisation. Clothing is considered unique if it’s

• home office running costs (for any home study) such as heat, light, etc. • interest on any money borrowed to fund the course

• repayments of Higher Education Loan Program (HELP) loans (although the fees paid by some HELP loans are) • Student Financial Supplement Scheme (SFSS) repayments • home office occupancy expenses (such as mortgage interest or rent) • meals where not sleeping away from home

To work out your deduction, you need to choose a typical four-week period from some point in the tax year. If you have a phone plan where you receive an itemised bill, you need to determine your percentage of work use over that 4-week period. You can then apply that to the full year. Professional associatons, magazine subscriptions and trade union fees As a part of your profession, you may be a member of an association – the good news is, you can claim your subscriptions. If you’re part of a trade union, your fees are also deductible. Magazines can make a dent in your return, as can subscriptions to mags associated with your line of work. If you’re an investor, financial publications and research services are claimable. Tools and equipment You can claim a deduction for some or all of the cost for tools and equipment if you require it for work purposes. If the work is used for both work and private expenses you need to divide what you can claim. The cost of the asset will affect the type of deduction you can claim: • items that cost $300 or less and don’t form part of a set you can claim an immediate deduction • items that cost over then $300 or form part of a set, you can claim a deduction for their decline in value. You can also claim the cost of repairing and insuring tools and equipment if need be. Issue Three | June/July 2018 | MBA NSW

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LEGAL

TFM2061 MBA NSW 05/18 T2018-010000

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Visit your Fleet Specialist Dealer or call 1800 444 847 today. 1. Excluding HiLux Rugged, Rugged X or Rogue models and Special Edition models. 2. SR5 model shown. Accessories sold separately. 3. Towing capacity is subject to regulatory requirements, towbar and vehicle design and towing equipment limitations. Ask your Dealer for Toyota Genuine Towbar capacity and availability details.

toyota.com.au/fleet

MBA NSW | Issue Three | June/July 2018

Master Builders Association membership details required to redeem Gold Fleet Discounts.

MEMBERSHIP TAX TIME

Contents Finance

Business savvy END OF FINANCIAL YEAR CHECKLIST

nother financial year is at an end and once again it’s time to prepare for meetings with accountants, talk to insurance brokers and make sure you’re prepared for the next financial year. A good source of information for small businesses can be found on the Australian Government Business website www.business. gov.au/info/run/finance-and-accounting/ accounting/essential-tasks-at-end-of-financialyear-eofy The checklists include a summary of essential tasks at End of Financial Year (EOFY) such as: • Record keeping and compliance • Find out what tax deductions you can claim • Use a registered tax agent • Keep up to date with tax changes starting next financial year • Be wary of tax refund scams • Review your finances

• Review and update your business and marketing plans • Review your business structure • Review your insurances • Backup and secure your files The Master Builders can assist members who are considering a change to their current business model. Simply contact our Legal Department for advice or access a copy of the “Building Business Start-Up Kit”. This kit can help answer many frequently asked questions and offers tips on how to handle some of the most common issues you’ll encounter. If you would like a copy of the “Building Business Start-Up Kit” please contact your local MBA office, call the Member Services Department on 02 8586 3515 or download a copy from our website at www.mbansw.asn.au/ BusinessStartUpKit Another area that we can offer assistance is Insurance. A call to Master Builders Association

Insurance Services (MBAIS) can provide you with a free insurance health check on any policies that you have in place, even if they’ve been arranged through another insurance broker. They can also check that your policies provide the coverage you need, giving you peace of mind that your business is adequately insured. MBAIS can also provide advice and quotations for general insurance products and specialty products including Home Warranty, Contract Works & Liability, Professional Indemnity and Workers Compensation. For a complete overview of all member benefits, services and member-only discounts contact your local Master Builders office, call Member Services on 02 8586 3515 or visit www.mbansw.asn.au/MemberBenefits Graham McGuiggan Manager Member Services Issue Three | June/July 2018 | MBA NSW

Contents Finance

TAX TIME

Time for a Super change The recent Federal Government Budget contained a number of changes that affect superannuation For current workers’ changes to default life insurance in superannuation

he government is proposing to abolish default life insurance cover within superannuation for young people under 25 years of age as well as those with low and inactive accounts.

Under the proposals, all super accounts that have not received a contribution for 13 months will be classified as inactive. Accounts with balances of less than $6,000 will be classed as a low balance. These proposals aim to protect the superannuation balances of these members from being eroded by insurance premiums, but may lead to higher insurance premiums for other members. Importantly, fund members will still have the opportunity to obtain insurance cover if they choose to do so. Reuniting lost or inactive superannuation In an effort to prevent people with multiple super accounts from having their savings excessively eroded by fees, the Australian Tax Office (ATO) has been given the power to actively reunite Australians with their lost and inactive superannuation. Under the proposals, all super accounts that have not received a contribution for 13 months, with balances below $6,000 will be classified as inactive and transferred to the ATO. These are typically accounts belonging to young employees, low income earners and seasonal workers. The ATO will then use data matching to automatically consolidate these accounts with fund members’ active accounts. The Federal Government expects the new system will reunite $6billion of superannuation with 3 million fund members’ active accounts in 2019-2020. Removal of exit fees and fee caps The Federal Government proposed two new measures in the Budget to address the impact of superannuation fees on member balances and make it easier for members to consolidate their accounts. It will abolish super fund exit fees and cap certain fees on balances of less than $6,000 at 3 per cent. The Government estimates the fee cap on low balances will

MBA NSW | Issue Three | June/July 2018

return $570million to super fund members. High income earners with multiple employers protected from super contribution breaches

their age pension. It will be expanded to allow pensioners to earn an extra $50 a fortnight ($1,300 a year) without reducing their pension payments.

High income earners with multiple employers will be protected from inadvertently breaching the annual super contributions limits. Individuals who earn more than $263,157 a year from multiple employers will be allowed to make wages from certain companies exempt from the Super Guarantee.

The pension work bonus will also be expanded to self-employed people who will be able to earn up to $7,800 a year, without reducing their pension payments.

Under recent rules, individuals earning more than this amount from multiple sources face a tax bill if they contribute more than the annual limit of $25,000 including the employer contribution.

Retirees aged between 65 and 74 with a superannuation balance below $300,000 will be allowed to make voluntary super contributions for the first year that they no longer meet the work test requirements.

FOR RETIRED WORKERS

New age pension means test for lifetime income streams

Expansion of pension scheme The Pension Loans Scheme is a reversemortgage style scheme that enables retirees to release equity in their home to boost their retirement income. The scheme – administered by Centrelink – is currently only open to retirees who are eligible for a part age pension and is not widely used. The government has proposed extending the scheme to all retirees including full-rate age pensioners and self-funded retirees. Under this scheme, full pensioners will be able to increase their income by up to 50 per cent of the age pension. This will enable single retirees who own their own home to boost their income by up to $11,799 and couples to boost their retirement income by up to $17,800 without impacting their eligibility for the age pension or other benefits. Expansion of pension work bonus The pension work bonus allows pensioners to earn up to $250 each fortnight without reducing

The government expects 88,000 people to take up the option to work more as a result of the changes.

From 1 July 2019, new age pension means testing rules will be introduced for pooled lifetime income streams. The rules will assess a fixed 60 per cent of all pooled lifetime product payments as income, and 60 per cent of the purchase price of the product as assets until 84, or a minimum of 5 years, and then 30 per cent for the rest of the persons’ life. This means people using these products will lose less pension entitlements. Importantly, what has not changed? The Budget did not contain any major changes to the way superannuation is taxed or any changes to the concessional or non-concessional cap limits on voluntary superannuation contributions. The timetable to increase the superannuation guarantee rate to 12 per cent was left untouched. The next planned increase from the current level of 9.5 percent to 10 per cent is scheduled to occur in 2021.

BEHIND THE SCENES

Apprenticeships Contents

Apprenticeship and Careers Advisory Service Facts and stats

aster Builders Apprenticeship and Careers Advisory Services are working hard every day to increase the number of people taking up apprenticeships in the building and construction industry. We do this in a number of ways that are rarely seen so we wanted to share with you a simple overview of what we do.

Apprenticeship Services Apprenticeship Services employs apprentices and places them with Training Employers to learn their trade skills. We support our Training Employers and apprentices in a number of ways throughout the placement and the term of the apprenticeship.

Master Builders Apprenticeship Service has been employing apprentices for the building and construction industry for more than 40 years.

• Currently more than 300 apprentices are employed within Apprenticeship Services

Apprentice.This process starts in a myriad of ways, however the ‘hands on’ part of the recruitment process begins when we receive the application. Applicants apply to become a Master Builders Apprentice through our website at any time of the year. The busiest time of year for applications is November through to February.

• Highest number of working apprentices within Apprenticeship Services since 2002

• We receive approximately 1,000 candidate applications per year

Recruitment of apprentices

• The highest application period was between November 2017 and February 2018 when we received 390 applications

We have seen growth in Master Builder’s apprenticeship numbers:

A big part of our day-to-day activities is the recruitment of the best quality candidates to begin their apprenticeship as a Master Builders

The recruitment process is detailed to ensure

The leading construction industry software in Australia BEAMS was designed specifically for the construction industry, playing a major role in the operation of small businesses and large corporations for almost 30 years. Features include; • CRM with direct email leads and customer portal. • CAD Image for fast accurate on screen take offs. • Quotes Register and auto Addenda selections. • Purchase Orders and integrated Variations. • Progress Claims, Percentage Claims and Retentions. • Full Accounting including auto BAS, Cashflow and WIP. • Job Cost control with security settings for overpayments. • BEAMS Mobile for onsite construction time line scheduling. • Document Storage for emails, letters, images etc. With BEAMS there is no need to switch between other programs as Beams includes it ALL. BEAMS Flows seamlessly from one section of the program to the next, saving time, reducing erosion and increasing PROFITS.

1300 040 446

www.beamsbuild.com.au Issue Three | June/July 2018 | MBA NSW

Apprenticeships Contents

BEHIND THE SCENES

Our support includes:

the recruitment of quality candidates. This includes: • Receiving applications – through our website and monitored daily • Reviewing all applications to select the candidates • Interviewing each candidate that is selected, initially by phone then in person • Completing reference checks of personal and work references

• Monitor and review apprentice and trainee attendance and progress at off-site training The statistics for the 2017-2018 Pre-Apprenticeship Season: 80 Apprenticeship places in total

• Average of 14 candidates start their apprenticeship with Master Builders each month • Highest number of monthly placements was 44, and this number was achieved 2 months in a row! (January and February 2018) • Lowest number of placements was 17 in December 2017 which is traditionally the lowest month due to Christmas/New Year shut down period

Apprentice Completions

4 candidates did not attend on the first day. 37 candidates started their apprenticeship following the course

• 53 Master Builders apprentices have completed their apprenticeship since July 2017

11 candidates chose to return to school

• 34% of these apprentices completed their apprenticeship earlier than four years

Apprentices Placements

• Average 29 apprentices placed in positions each month

• Assistance to satisfy minimum safety standard and improve their safety management practices The completion of the apprenticeship is the ultimate goal for Master Builder’s apprentices. A carpentry apprenticeship is a nominal 48-month term which means that an apprentice, if deemed competent by their employer and their registered training organisation, can complete their apprenticeship earlier than the full term of four years.

• Selecting the best candidates for referral to Master Builders Training Employers Our main goal is to keep apprentices placed with Training Employers. Placements end, new placements are secured and new vacancies are sourced every day. We place apprentices of any stage into an apprenticeship placement at any time of the year.

• Regularly visit sites to assist, support and mentor Training Employers and apprentices

Of the 80 places, 76 candidates began the Program —

6 candidates left the program part way through as they decided this career wasn’t suited to them

Career Advisory Service

Of the remaining 19, over half are employed in some type of employment following the program, but not an apprenticeship.

The Career Advisory Service consists of two Industry Careers Advisors. They attend career events and school presentations to spread the word that an apprenticeship is a great place to start a career in the building and construction industry.

Adult Apprenticeship Program

Since May 2017, our Careers Advisory Service have:

3 candidates were removed from the program for unacceptable behaviour

• Presented to 176 groups of school students ranging from Year 9 to Year 12 students

Pre-Apprenticeship Program

The Master Builders Adult Apprenticeship Program was introduced in 2017 to assist adults who want to complete an apprenticeship get a start in the industry.

Master Builders has secured NSW government funding to run pre-apprenticeship programs for 80 candidates each year for 3 years. Last year was our second year of this funding.

The program is unique and innovative, focusing on the older candidate’s ability to learn faster. • In April 2016, we had 39 adult apprentices employed with Master Builders

The Master Builders Pre-Apprenticeship Program is a collaboration between Master Builders Apprenticeship Services and Master Builders Training Services.

• We have 83 adult apprentices – over 21 years when they started their apprenticeship

• Surveyed 732 students about their knowledge of the building and construction industry

• 56 adult apprentices are part of our Adult Apprenticeship Program

• Collected 378 expressions of interest for the Master Builders Pre-Apprenticeship Program

The Program consists of four classes of approximately 20 students who attend the Master Builders Education Centre for four weeks. They start at 7.30am and finish at 4pm to emulate the working day of an apprentice. The program is focused on three key areas:

• The average age of the participants in this program is 34 years

• Surveyed 300 apprentices to gather statistical information vital to understand the life of an apprentice

• 291 apprentice placements secured from July 2017 to April 2018

• Industry knowledge • Practical skills • Life skills Master Builders Apprenticeship Services interview and discuss career aspirations as well as monitor performance, attendance and attitude. Not every candidate who completes this program is selected to become a Master Builders Apprentice. The pre-apprenticeship season runs from November and the last of the four classes finishes in early March.

MBA NSW | Issue Three | June/July 2018

• The eldest in the group is a 54-year-old female, closely followed by a 52-year-old male • 17 adult apprentices are on track to complete the Adult Apprenticeship Program in November 2018 Apprentice and Training Employer Support Master Builders Apprenticeship Service support our apprentices and Training Employers in a number of ways. One of the most important, is the relationship with the Master Builders Field Officer. Each Field Officer is assigned a number of Training Employers and apprentices to assist throughout the placement and apprenticeship.

• Attended 88 Career expos or events • Had contact with 857 schools, including Career Advisors, to supply information about apprenticeships and career pathways in the building and construction industry

Apprenticeships in the building construction industry is one of the most talked about subjects at Master Builders events. The Apprenticeship and Careers Advisory Services are working hard every day to spread the word about the amazing career opportunities our industry can offer a young person. If you have a suggestion, know of an event we need to attend or someone who could benefit from the information our services provide, we would love to hear from you. Please email me at apprenticeship@mbansw.asn.au Karen Kellock Apprenticeship Services Manager

WORKPLACE HEALTH & SAFETY

Contents Health & Safety Workplace,

A winning partnership for your kitchen needs Winning Commercial is proud to work with Omega and Blanco to realise the outstanding kitchen solutions that distinguish the finest Australian residential developments. Drawing on the combined experience of many years in the commercial sector, this is a long-standing partnership between the family owned Winning business and industryleading manufacturers, each distinguished by unique standards of expertise and knowledge. Together they can be trusted to work closely and apply rigorously high standards throughout your project, providing support from start to finish to ensure best results.

Talk to us about your project today! winningcommercial.com.au 1300 070 070 Issue Three | June/July 2018 | MBA NSW

Training Contents

WATERPROOFING

Best practice in waterproofing training

s well as new builds, there is a great deal of waterproofing work in renovations, additions and restorations. In particular, remedial work where in many instances the waterproofing job was not done right the first time. There are many products and solutions available in the market today that help resolve many of the issues, but the quality of the waterproofing job comes down to the skills and techniques the waterproofing tradesperson has. One of the biggest complaints to builders from home owners is issues with water penetration due to a failure to waterproof effectively. Waterproofing guides As a result of the waterproofing issues plaguing the industry, the Master Builders

MBA NSW | Issue Three | June/July 2018

Association decided to take action and develop a range of courses and technical waterproofing guides to give the opportunity to our members to learn and understand best waterproofing practices. Master Builders recently released new Waterproofing Guides which contain essential reference tools and industry best practice instructions to support you in ensuring your waterproofing projects are completed right the first time. Together with the guides, we have developed industry best practice training courses in waterproofing which improve your practical skills, knowledge and experience across internal, external and below ground working

areas. Courses and guides reflect quality and stringent waterproofing practises. Waterproofing licence pathways For those who already have a level of waterproofing experience but would like their skills recognised, depending on your level of experience and selection criteria, you could gain your Certificate III in Construction Waterproofing in as little as 9 days. Alternatively, depending on what suits you, we can have an assessor come to you for on-site RPL. Our training and assessment workshop schedule is structured so that you can fit in your training around work commitments in a small group size of 12 participants.

Contents Training

A sample class schedule at our Education Centre at Baulkham Hills: Workshop

Some of the topics covered

Days

Schedule

Workshop 1 — Theory

• Install wall sheeting

2 days — Saturday & Sunday

Month 1

2 days — Saturday & Sunday

Month 2

2 days — Saturday & Sunday

Month 2

3 days —

Month 3

• Apply primer • Apply sealant

Workshop 2 — Internal

• Focus more on bathroom, kitchen and laundry waterproofing •

Preparation for waterproofing

Workshop 3 — External

• Focus more on deck,balcony and planter boxes

Workshop 4 — Below ground and remedial

• Focus more on in-ground pools and repairs

Student testimonials:

Friday to Sunday

Bear Melvey - Builder from Newcastle and Master Builder Association NSW Member for more than 10 years. Bear decided to take up the training and assessment workshop to further develop his knowledge in waterproofing as it is an essential part of the building process. He travelled from Newcastle to Baulkham Hills to achieve his Certificate III in Construction Waterproofing. “The course has provided me with excellent exposure to alternative methodologies and products. It also covers the common mistakes that are made within the industry. The range of techniques and products that were covered in both a theoretical and practical environment always ensured participants were actively engaged. The course went beyond my expectations due to the extent covered and the level of knowledge and experience of the trainers.” Bear also said the trainer provides actual industry examples of significant waterproofing failures and demonstrates best practice skills to correct waterproofing issues. Bear recommended Master Builders training to his friends: “The course is worth doing as you will be surprised at how little you knew about waterproofing prior to completing the course,” he said. Csaba Kiss - Waterproofer from Maroubra whose employer is a Master Builders Association NSW member. Csaba has been working in the waterproofing industry for seven years and decided to advance his career by achieving his Certificate III qualification in Construction Waterproofing. “The course has enabled me to get a better idea of the technical side of the trade and through the Master Builders teaching I have learnt a lot about the NCC (National Construction Code). My favourite part of the course was learning about external waterproofing techniques of balcony areas and cavity flashings. The trainer was great at explaining and demonstrating the techniques and methods of internal waterproofing which I don't get to see every day as I specialise in external sheet membrane,” he said. Csaba recommended Master Builders training: “Take the time to invest in the training to broaden your knowledge of the methods, products and techniques to better yourself.”

Issue Three | June/July 2018 | MBA NSW

Training Contents

WATERPROOFING

Y D U T S 1 # P I T g n

i k r o w t e N

f it’s been a while since you have enrolled for a course or taken on study, the following tips may be useful to keep you on track:

Starting a new course is a big commitment and can be challenging at times, but if you remain focussed to successfully complete it, the rewards will be there.

Make friends with benefits – the “Study Buddy” Your goals with everyone in a class will be very similar, so make the most out of networking with your class mates: • Makes classroom time more enjoyable • Find someone to grab a coffee with or go to lunch • Identify people who you may do business with in the near future • Find classmates who can help you catch up if you missed a class • Good for group work class activities • Mix with people who can help you understand a topic you may not be as experienced in • Mixing in study time and social time can make the course more enjoyable • You may need to lean on someone for transportation once in a while • Remain focussed and think about the rewards of completeing the course.

MBA NSW | Issue Three | June/July 2018

FEATURE ARTICLE

Contents Training

afs rediwall

PVC-based walling solution A b o v e a n d b e l o w g ro u n d a p pl i c a t i o n

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Patented Speedy-Snap-In system lets you simply clip panels together for quicker and easier installation.

afs rediwall® app for hassle-free ordering

NEW REDIWALL® 256mm PANELS Ideal for blade walls, these load bearing PVC-based panels readily slide together to form robust, durable permanent formwork.

Builders and formworkers prefer afs rediwall® for internal/external applications, including basements, blade & party walls, retention tanks and retaining walls. Learn why now on 1300 727 237 or visit afsformwork.com.au Issue Three | June/July 2018 | MBA NSW

Training Contents

AVAILABLE COURSES

TRAINING COURSE LIST Training is offered at our Master Builders Education Centre in Baulkham Hills and our regional offices in Newcastle, Ballina, Wollongong, Port Macquarie, Gosford, Ulladulla, Orange and Albury. • CPD points are available for all Short Courses and Professional Development Seminars/Workshops • We also specialise in customised training solutions and packages for your business needs • Builder pathways • We offer onsite RPL programs • Trade licence pathways • Classroom training and assessment program • Online webinars.

Qualifications CPC40110 Certificate IV in Building and Construction (Building)

CPC30313 Certificate III Concreting

BSB51415 Diploma of Project Management

CPC50210 Diploma of Building and Construction (Building)

CPC31211 Certificate III in Wall and Ceiling Lining

BSB41415 Certificate IV in Work Health and Safety

CPC30211 Certificate III in Carpentry

CPC31311 Certificate III in Wall and Floor Tiling

BSB40215 Certificate IV in Business

CPC31411 Certificate III in Construction Waterproofing

MSF31113 Certificate III in Cabinet Making RII30915 Certificate III in Civil Construction

CPC30111 Certificate III in Bricklaying and Blocklaying

CPC20112 Certificate II in Construction

RII30815 Certificate III in Civil Construction Plant Operations

CPC30611 Certificate III in Painting and Decorating

CPC10111 Certificate I in Construction

RII40715 Certificate IV in Civil Construction Supervision

Short Courses First Aid

Remove Non-Friable Asbestos

Internal Waterproofing — Industry Best Practice

General Construction Induction (White Card)

Supervise Asbestos Removal

External Waterproofing – Industry Best Practice

Introduction to Hebel Installation

Work Safely at Heights

Below Ground Waterproofing — Industry Best Practice

Professional Development Seminars/Workshops Asbestos Awareness

Health and Safety Representative

Manual Handling

Contracts and Insurance Workshop

Health and Safety Representative (Refresher)

Pre-Purchase Inspection Report Writing

Guide to Complying Development

Introduction to Security of Payment Act

Return to Work Co-ordinator

Hebel Awareness

Keys to Property Development

Test and Tag of Electrical Equipment

SafeClad Awareness

Introduction to SafeClad Installation

For further course information including course fees, visit our website www.mbansw.asn.au Contact Master Builders Training on 1300 884 315 or training@mbansw.asn.au RTO ID: 6163

MBA NSW | Issue Three | June/July 2018

FEATURE ARTICLE

Contents Finance

MBA CAR BUYING SERVICE HUGE SAVINGS IN TIME AND EFFORT

SIGNIFICANT FLEET SAVINGS ON NEW AND DEMO VEHICLES

MAXIMISE THE VALUE OF YOUR TRADE-IN

CALL US FOR THE BEST DEALS ON PRICE & FINANCE

1300 760 366 OGARIT KELLEY MASTER BUILDERS

Financial Services Issue Three | June/July 2018 | MBA NSW

Contents Legal

MEDIATION

MEDIATE, DON’T LITIGATE Why Mediation Works

isputes are unfortunately a “fact of life” in the building and construction industry. Mediation is a “circuit breaker” that can be used to deal efficiently and cost effectively with disputes when they arise. There are at least four reasons why mediation works. These are: • limitations of the law; • involvement of a specialist dispute resolver; • search for creative solutions; • financial imperatives. The limitations of the law The typical response to the emergence of a “dispute” is usually to take the advice of lawyers. While this may be an appropriate response, the limitations of this as an exclusive strategy warrants closer consideration.

MBA NSW | Issue Three | June/July 2018

Lawyers, by virtue of their training, unavoidably consider the “instructions” as relayed to them by their clients, through a legal “prism”. That “prism” is made up of the lawyer’s past experience in dealing with such matters, and their knowledge of the law. A client’s version of events is unavoidably viewed by lawyers through this “prism”. The only “light” which typically passes through the prism are those “facts” which the person briefing the lawyer considers to be “important”. That information usually then forms the basis of the lawyer’s initial “advice”. When considering a client’s version of events through the “legal prism”, lawyers will typically apply legal principles with which they are familiar. For example, when dealing with a contractual dispute, a lawyer may perhaps look for a “breach” of a warranty or condition which might give rise to “damages”. Those damages

are typically the monetary cost of placing the aggrieved party back in the position which they would have enjoyed, except for the occurrence of the “breach”. The law is a specialist field that pays scant regard to the practical realities of the building industry. Builders are not usually lawyers, nor are most lawyers builders. What a builder thinks to tell a lawyer in initial conferences may not be information which eventually turns out to be most relevant in a subsequent legal forum. It can take many months, in the course of legal proceedings, before all the relevant “facts” emerge. Often this can eventually have the effect of putting the clients “story” and “prospects” in a far less favourable light than when legal advice was first sought. This is hardly an efficient process or desirable outcome. Real resolution of a dispute involves more than

MEDIATION

Contents Legal

just “winning the argument”. It involves dealing with the dispute in a manner that addresses the real needs and/or interests of the parties involved. Those needs and interests are often not apparent. “Winning” at all costs may be a noble goal, but it is usually far from assured in litigation. And in most cases, it is also expensive. Mediation works because it does not just look at a dispute through a legal “prism”. It also takes into account the real needs and interests of the parties. Unless these are also addressed at least to some extent, real resolution of a dispute is normally impossible. The involvement of a specialist dispute resolver Most builders are very familiar with the use of specialists. What is not so well understood or accepted is the benefit of involving a specialist “dispute resolver” as soon as a dispute arises (or appears likely to arise). Ideally this person will have a good mix of both practical and legal expertise. Unlike members in tribunals, magistrates or judges, mediators do not impose outcomes on disputes. They work hard to resolve disputes with the active involvement of those involved. The object of the process is not “winning” but “resolving” the dispute cost effectively to the reasonable satisfaction of all parties. That is quite different to litigation in which there is always a “loser”. A good mediator will help the parties “turn over every stone” in the search for a sensible resolution to the dispute. This often has very little to do with enforcing “rights” or obtaining all the “legal entitlements”. Important issues such as cashflow, continued working relationship and the maintenance of reputation are often far more important considerations. A specialist mediator also has the benefit of something that neither of the parties nor their legal representatives have. That is the ability to meet with both sides privately and in confidence. When doing so, he or she is able to uncover the real needs of the parties and to explore possible options for meeting those needs. Mediation works because it is a specialist skill. The earlier that a specialist dispute resolver such as a mediator is engaged, the greater the chance that the dispute can be resolved before substantial costs are incurred. This is usually infinitely preferable to just spending even more money in pursuit of an uncertain, and legally binding, “imposed” result. A creative search for solutions Mediation works because it involves a creative search for solutions. A creative search for solutions seeks a resolution which is better for all concerned than any of the other alternatives

on the table. This is usually because it brings certainty where there are substantial financial risks (as in the case of litigation) or because it brings forward desired outcomes which may otherwise be substantially delayed. From my experience, parties usually become willing to settle their disputes when they realise that it is in their own best interests to do so. This realisation usually only occurs when all perceived available solutions have been fully explored. By working through all the “what ifs”, a skilled mediator is usually able to tease out at least one outcome which both parties might not necessarily like, but which they are prepared to live with. Having done many mediations, it never ceases to amaze me how - with a bit of creativity and lateral thinking - even entrenched disputes can be completely resolved. Often the agreed terms of a mediated settlement bear little resemblance to the demands which had been made prior to the mediation. The eventual confidential terms of settlement are usually in no small part due to the skills of a skilled and creative mediator. This is because the mediator persisted in the face of apparent impossibility at the start, or refused to be deterred by the lack of enthusiasm or optimism on the part of the lawyers or the parties involved.

Even if a dispute is successfully litigated, the result seldom meets expectations. The amount recovered is often considerably less than that which was claimed. Even with the benefit of cost orders, the builder is usually still considerably out of pocket and the result is often no better than what could have been achieved months earlier, as part of a mediated settlement, and at a fraction of the cost. It is worth noting that even if mediation is not attempted early, it is likely to be ordered anyway later on by a tribunal or a court. By this time considerable costs will usually have been incurred by both sides. This makes the resolution of the dispute more difficult because the parties will both want the issue of those costs to form part of any settlement. Mediation works because it can result in a negotiated outcome, many months before any other litigated dispute. A dispute can also often be resolved sensibly and cost effectively, before the relationship between the parties is completely destroyed in a litigated “war of attrition”. The cost benefits of a mediated settlement usually also far outweigh most other dispute resolution processes. The moral of this story? If in doubt, don’t litigate — rather first mediate!

Mediation works because solutions usually exist but which are often not even considered by disputing parties. It works because the process directs the energy of the parties into considering creative solutions. This often leads to a win/win outcome and complete resolution. The financial imperatives At the time when a dispute is “brewing”, very few builders fully appreciate where and how it might end. Many builders have told me that “had they known” they would have rather forgone part, or all, of a claimed disputed variation or unpaid progress claim. This being because the eventual cost of dealing with the dispute in a legal forum eventually far outweighed the cost of dealing pragmatically with the dispute in some other way when it first arose. Builders also often don’t foresee the consequences of their initial responses to an emerging dispute. A blunt and forceful “letter of demand” from a zealous solicitor may impress the builder, but may only serve to infuriate the recipient. The commencement of proceedings for debt recovery also often gives rise to the inevitable “cross claim”. With the benefit of “expert evidence”, the amount of the cross claim often far exceeds the amount of the debt sought to be recovered. At that point, even if the builder wants to discontinue it usually finds itself “locked in” and already exposed to the other side’s legal costs if it tries to “discontinue”.

Rob Zikmann Specialist Dispute Resolver and Mediator www.robzikmann.com.au Tel: (02) 9232 3414 Email: rob.zikmann@chambers.net.au Issue Three | June/July 2018 | MBA NSW

Workplace, Health Contents & Safety

WORKSAFE

Aviation warning lights for tower cranes

There are almost 700 tower cranes registered in NSW for use, which is 3 times the amount of cranes registered five years ago. Quantity surveying advisory services have estimated that there are 352 tower cranes in use in Sydney alone.

afeWork (SWNSW) NSW recently undertook a two-year “Tower Crane Project” identifying that 47 per cent of cranes climbed had no policy in place for managing mobile communication devices on site e.g. use of mobile phones. A further 48 per cent of tower cranes inspected either had no fire extinguishers, were out of date, the wrong type or inaccessible. An incredible 120 tower cranes did not have aircraft aviation lights installed at all. The regulator’s focus in the next 6-12 weeks will be on maintenance records and servicing documentation. SWNSW visited more than 30 crane yards in relation to erection and dismantling procedures, and undertook site verification of 180 tower cranes across NSW. A total of 22 improvement notices have been issued and one Prohibition notice had been issued for matters including unauthorised access, inoperative weathervane practices, securing lights and/or signage, insufficient inspection and maintenance records, and access to power isolation. SWNSW advised that a similar project is proposed in coming years for mobile cranes

MBA NSW | Issue Three | June/July 2018

(MOS) Part 139 – Aerodromes Section 8.10 (Obstacle Markings) and Section 9.4 (Obstacle Lighting). Most tower crane models have provisions for fitting aviation warning lights — consult with the crane manufacturer for further information. www.legislation.gov.au/Details/F2016C00220

which is anticipated to last 12-18 months.

Cranes near aerodromes

Reason for the alert

Certain airspace near aerodromes is regulated, with legal requirements for both PCBUs erecting a tower crane and the aerodrome operators.

Safety concerns have been raised regarding low flying aircraft being unable to see and avoid tower cranes at night. Examples of low flying aircraft include aircraft on approach or departure from aerodromes, military aircraft and emergency service helicopters such as police, RAC Rescue, air ambulances (particularly near hospitals) and similar. For special attention By nature of their work, emergency services aircraft may be required to fly at low levels in random locations away from aerodromes or designated air traffic corridors. Such activity can occur at night, and in poor weather, with little or no notice. The Industry Plant Consultative Committee (IPCC) therefore considers it reasonably practicable to fit aviation warning lights to all tower cranes in metropolitan areas, to increase visibility and reduce the risk of collision. Aviation obstacle and obstacle lighting To ensure consistency and avoid any confusion to pilots, obstacle marking and lighting must comply with the CASA Manual of Standards

Wherever a crane is to be located within 30 km of an aerodrome the IPCC considers it reasonably practicable to consult with the aerodrome operator to determine, as a minimum: • Whether the crane will encroach regulated airspace • Whether the crane will be a hazardous obstacle to aircraft • Whether there is a requirement to notify the Civil Aviation Safety Authority (CASA) and/ or the Department of Infrastructure and Transport, and who is responsible for the notification • Appropriate measures to reduce risk of collision, such as aviation obstacle lighting and obstacle marking. These requirements are further explained in detail in the following link. www.safework.nsw. gov.au/__data/assets/pdf_file/0015/107403/ tower-cranes-principal-contractors-dutiesSW08439.pdf

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Issue Three | June/July 2018 | MBA NSW

Workplace, Health Contents & Safety

WORKSAFE

A word from the safety regulator

SafeWork NSW responds to NSW infrastructure boom

afeWork NSW is developing a construction sector plan that aligns with its six-year work health and safety roadmap. Having consulted with a variety of industry stakeholders, the plan will focus on SafeWork’s commitment to ‘right touch’ regulatory approaches through collaboration, innovation, expertise and compliance.

We spoke to new inspector Ryan McKeown, who recently joined the infrastructure team.

The plan aims to reduce the impact of high-risk harms across four critical industry sub-sectors: infrastructure, mid/ high rise, asbestos and demolition, and residential. The infrastructure plan will be published soon.

How long have you been with SafeWork NSW?

The NSW Government is allocating more than $80 billion over the next four years to large infrastructure projects, many of them carried out in partnership with the private sector.

What did you do before joining SafeWork NSW? I spent 15 years in tunnelling, working on large infrastructure projects, such as desalination plants in Adelaide and Victoria, Sydney’s cross-city tunnel, the Lane Cove tunnel, many cable tunnels, and more recently the West Connex project.

SafeWork has responded to this rapidly increasing, highrisk infrastructure construction activity by creating a new team comprising eight inspectors to oversee metropolitan Sydney.

So far, what’s the best thing about working in the infrastructure team?

The team will focus on tunnelling, demolition, bridges, overpasses, site preparation and civil works, with attention given to demographics, work activities, workplace arrangements, knowledge, understanding, accessibility and capabilities as they relate to workplace safety. By engaging with industry experts, the team will identify the high-risk work health and safety harms relevant to each infrastructure project, to develop targeted safety strategies at the project inception stage, innovative solutions and world best practice. Already, the team has helped develop operational protocols on the Sydney Metro, West Connex, NorthConnex, Sydney Light Rail and Parramatta Light Rail projects. These protocols include strategic engagement strategies, emergency response protocols and verification visits. The goal of the sector plan is to ensure a legacy of skilled and experienced workers across the construction sector, and improve the work health and safety capability of employers and other stakeholders. Spotlight on Silica — Harm Reduction Strategy Recently, the infrastructure team and Kate Cole, an occupational hygienist, facilitated a ‘silica in tunnelling’ workshop at the Australasian Tunnelling Society (ATS) Conference in Sydney. The workshop was a catalyst for the first air-quality working group, which meets bi-monthly to improve health outcomes for tunnel workers. The infrastructure team has visited all the major tunnel sites across Sydney to carry out occupational hygiene testing in relation to silica dust exposure. More inspections are planned.

MBA NSW | Issue Three | June/July 2018

About four months.

I am enjoying the large variety of work we do. I am learning new skills and see a lot of different types of jobs across the Sydney metro. The team has been very welcoming and we work well together with our diverse backgrounds and skill-sets. What do you see as the major challenges for SafeWork NSW inspectors when it comes to these large infrastructure projects? The amount of work is unprecedented and there are many more major projects due to start over the next few years, ranging from underground infrastructure to high rises. What do you see as the major challenges with safety on these largescale infrastructure projects? The amount of infrastructure work happening in Sydney and interstate means there is strong demand for experienced and skilled workers, so there’s a larger proportion of inexperienced and young workers doing work that they may not be ready for. This can impact on safety. In these high-profile jobs, there are numerous high-risk activities taking place: working with tunnel boring machines and cranes, working at heights, working in confined spaces, working where plant and people interact. Generally, if something goes wrong, it goes wrong in a big way. What are some of the major projects underway or coming up that you will be working with in the industry to ensure safety is a priority? Well, there’s the demolition of buildings in the CBD to make way for underground stations and above-ground developments, including a 20-storey building coming down in Martin Place. There are major works, with underground stations being demolished and re-built, the Central Station upgrade, Badgery’s Creek airport, the light rail, and a new Sydney football stadium. Is there any advice you would give to contractors and other workers who are working on these infrastructure projects? Planning is the biggest thing. Make sure you look forward to see what the risks are and put controls in place before you start the work. Look for better and safer ways to do things.

Contents Health & Safety Workplace,

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Issue Three | June/July 2018 | MBA NSW

Master Builders NSW June-July 2018

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