Master Builder NSW April - June 2020 by News Corp Custom Publishing

MASTER BUILDER Official Magazine of the Master Builders Association of NSW | Issue Two | April-June 2020

OPEN FOR BUSINESS INDUSTRY REBUILDS AFTER COVID-19

MATES HELPING MATES

THE INDUSTRY BLUEPRINT FOR MENTAL HEALTH

TAX TIPS

IMPORTANT EOFY ACTIONS

Are your showers ticking time bombs? Despite builders best efforts, leaking showers are consistently listed in the BSA’s top ten defects. Sadly, sometimes this is due to substandard workmanship, but most of the time it is the design of the shower itself which is creating the potential for disaster. Most contractors are at a complete loss as to why, but detailed testing has shown how, by the action of expansion and contraction, water is “pumped” along glue cavities to escape the shower enclosure, no matter how well it is water-proofed. The best way to prevent the problem is to seal the screen directly to the membrane, and NOT to the tiles. Waterstop Streamline provides: •

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CONTENTS

MASTER BUILDER Official Magazine of the Master Builders Association of NSW | Issue Two | April-June 2020

IN THIS ISSUE REGULARS

Contact List

President’s Viewpoint

Executive Director’s Viewpoint

Regional Roundup

OPEN FOR BUSINESS INDUSTRY REBUILDS AFTER COVID-19

Looking Back

MATES HELPING MATES

THE INDUSTRY BLUEPRINT FOR MENTAL HEALTH

TAX TIPS

IMPORTANT EOFY ACTIONS

FEATURE ARTICLES

11 Covid-19 Best Practise Guide

About the cover: As Covid-19 restrictions ease, the building industry is welcoming in a new day, helping bring Australia’s economy back to life.

Understanding the law and risks

19 The Evolution of Customer Service Omesh Jethwani in-conversation with Minister Victor Dominello

Published by

Respect at Work National Inquiry into harassment in the workplace

Mates Helping Mates The construction industry blueprint for better mental health

Tax Tips Important EOFY actions

GENERAL FEATURES

Industrial Relations Complying with corporate obligations

Training Education and skills development

Apprenticeships Changes due to Covid-19

WHS Industry behaviour changes

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@news.com.au Editorial Coordinator: Josie Adams 07 4690 9454 | M 0437 819 696 Josie.Adams@news.com.au Media Sales Consultant: Emily Bosman 07 4690 9303 | M 0448 049 469 Emily.Bosman@news.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 Two | April-June 2020 | MBA NSW

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CONTACTS 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 LEGAL

EXECUTIVE BOARD Simon Pilcher Robert Black Martin Patience Frank Mamasioulas Mick Banks Michael O’Donnell Colin Jewell

Head Solicitor Lawyer Lawyer Legal Assistant Technical Adviser

President Deputy President Immediate Past President Vice President Vice President Vice President Vice President

CAREERS ADVISORY SERVICE Manager

EXECUTIVE Executive Director Executive Assistant

Brian Seidler Amanda de Vries

8586 3503 8586 3507

MBA INSURANCE SERVICES

FOREST LODGE OFFICE NSW State Manager Dele Omisore Senior Account Manager (General) Edwina Lyall Account Executive (Corporate) Diane Craven SME Team Leader (Genera) David Petkovski Snr Account Executive Hilda Marfo Account Executive Adam Myers Account Executive Barbara Sou Account Executive Jhye Gibbs Account Executive Diego Califato Business Development Manager (General) Patrick Rafferty Business Development Executive Harry Rankin Business Development Assistant Shaian Carmona Team Leader Warranty Peter Usher Senior Account Executive Warranty Daniel Vine Account Executive Warranty Gabriel Pike Assistant Account Executive Warranty Maria Karamalis National Business Development Manager Bill Korakis

8586 3519 0422 513 705 8586 3570 0412 806 700 8586 3594 0435 967 945 8586 3556 0466 626 323 8586 3501 8586 3568 02 8586 3583 9296 6610 9296 6605 8586 3565 0481 906 275 9296 6609 0481 906 275 9296 660 8586 3512 8586 3566 9296 6608 8586 3528 8586 3541 0431 658 067

NEWCASTLE OFFICE Business Development Manager Leanne Farmer 4979 0115 0466 777057 Account Executive – Warranty Kirra-Lee Parr 9296 6782 NORTHERN REGIONS OFFICE Business Development Manager Alan Fraser Account Executive – Ballina

6681 4266 0410 234 605

MASTER BUILDERS FINANCIAL SERVICES Finance & Car Buying

Ogarit Kelley

0414 919 194

MEMBER SERVICES Manager Member Services Graham McGuiggan Membership Coordinator Paul Love Administration Coordinator Debralee Scarselletta Administration Assistant Felicia Suwito Trade Events Coordinator Jessica Martin Member Services Clare Mayhew

8586 3554 8586 3540 0413 306 556 8586 3545 8586 3572 8586 3520 8595 3515 8586 3588

APPRENTICESHIP SERVICES Tel Apprenticeship Services Manager Karen Kellock

8586 3533 8586 3538

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 Government Projects & Programs Manager

Peter Glover David Solomon Iain Jarman Matthew Gissane Joanna Psaros Nicholas Ruston Peter Murphy Beverly Glover Annette Gee Tracey Van Breugel Omesh Jethwani

Karen Kellock

EVENTS & BUSINESS DEVELOPMENT Awards Coordinator Special Projects Officer Events Administrator Events Administrator

OPERATIONS

Director Operations General Manager Operations ICT Manager Communications IT Support/Webmaster Sponsorship Relations Manager

Susan Manning Amanda Kelly Janet Hood Sophie Abbott

8586 3517

8586 3546

0458 234 735 8586 3506 8586 3504 9296 6613 8586 3524

Craig Donovan 8586 3537 Jody McGann 8586 3606 Amanda Kernaghan 8586 3580 Steven Swan 8586 3562 Alexander Ashley-Carrington 8586 3525 Haley Tibbetts 0412 980 829

FINANCE & ADMINISTRATION

Manager Finance & Administration Strebre Delovski Credit Control Manager Eric Milne Credit Officer Daniela Fraumeni Inventory & Administration Officer Treena Carter Accounts Payable Officer Bridget Delmore Accounts Supervisor Rose McGill Accounts Officer Bachar Mourad Reception #2 Charles Martin Room

8586 3508 8586 3509 8586 3567 8586 3527 8586 3510 8586 3511 8586 3530 8586 3526 8586 3546

REGIONAL OFFICES NEWCASTLE OFFICE

Level 1, 165 Lambton Road, Broadmeadow 4953 9400 or 9296 6777 Division Administrator & Events Ashleigh O’Brien 9296 6771 Receptionist Gabi Maher 9296 6770 Safety Officer John McGhee 9296 6772 NSW Regional Office & Divisional Coordinator Luke Reeves 9296 6775 Training Coordinator Kerri Richards 9296 6773 Trade Events Coordinator Rebeccah Kilmurray 9296 6776 MBA Insurance Services Business Development Manager – Warranty Leeanne Farmer 9296 6781 Account Executive - HWI Kirra Lee Parr 9296 6782

NORTHERN REGIONS

2 Boeing Avenue, Ballina Business Development Manager Alan Fraser Regional Coordinator Matthew Meury Member Services Representative Marlee Hand

GOSFORD

Unit 7/4 Stockyard Place, West Gosford Member Services Representative Kerrie Bendeich

SOUTHERN REGIONS

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

6681 4266 0410 234 605 0428 412 784 6681 4266 4323 4588 4323 4588 4454 1955 0418 633 297 4454 1955

ALBURY/WODONGA

NORWEST EDUCATION CENTRE & TRAINING 5 Burbank Place, Baulkham Hills NSW 2153

Robert Collings Janelle Thomy Emma Dorranian Darcie Jeffery Alex Henebery

8586 3535 8586 3552 8586 3502 8586 3573 8586 3529 8586 3607 8586 3529 8586 3523 8586 3531 9296 6666 8586 3539

35 Hovell Street, Wodonga Regional Manager Steve Donaghey Administration Assistant Ashlee Lempa Membership Coordinator Vanessa Hollis

PORT MACQUARIE

Unit 3, 12 Jindalee Road, Port Macquarie Regional Coordinator Kerrie Clark

WOLLONGONG

Level 4, 2 Coombe St, Wollongong Member Services Representative Ruth Billington Regional Coordinator Lee Tanks

ORANGE

Level 1, 296-298 Summer St, Orange Regional Coordinator Katie Kidd

MATES IN CONSTRUCTION

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0402 044 075 02 6058 2000 02 6058 2000 6581 4033 0409 180 301 4272 9409 4272 9409 0419 140 126 02 6362 6895 0458 243 976 8586 3575

Issue Two | April-June 2020 | MBA NSW

Quality, Style & Performance

Builder: Capcar Building Group

A PROUD HISTORY OF CUSTOM FABRICATION For 36 years aluminium windows and doors have been our driving passion. Rylock design and specify products for Australiaâ&#x20AC;&#x2122;s diverse landscape. AUSTRALIAN MADE AND OWNED.

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PRESIDENT’S COMMENT

INTRODUCTION

From the President

HAVING A VOICE IN HOW THE COUNTRY RECOVERS

ince the onset of the COVID-19 crisis Master Builders has targeted its advocacy to address both the immediate and longterm needs of the building and construction industry. The response of MBA around the country to the health crisis meant that the industry stayed open for business, while we were also among the very first industry advocates to identify and make the case for targeted stimulus in every sector of our industry. I can say that the success of Master Builders’ advocacy right across the country is setting us apart, but we must continue to focus on the industry’s future needs, policy measures and reforms. These are needed to underpin building and construction activity and a stronger economy while working to meet the current challenges. You may be aware that the Federal Budget for 2020/21 has been delayed until 6 October. It will be one of the most crucial Budgets in the nation’s history and Master Builders voice must be heard as the Federal Government and Treasury develop responses to the economic challenges that faces us. Some of Master Builders priorities include:

• The reduction of company tax to 25% for all companies; • Bringing forward infrastructure and social housing investment allocated; • Government funding to provide access to free building reference standards; • Establishment of a small business procurement and advocacy agency to ensure that smaller construction contractors and subcontractors can tender to deliver projects, particularly in their local regions. All of us have faced an incredibly difficult time since early March this year. This is particularly the case for members, and those in the building and construction supply chain. They must continue doing everything possible to buttress their businesses and make them as resilient as they can to face the extremely challenging environment we know will manifest in the coming months.

I invite members to provide feedback about the challenges that you are facing so that policy responses can be forwarded to both the Federal and State Governments. On a final note, I would like to acknowledge the hard work of all the MBA staff who have played a significant role in achieving substantial outcomes for our industry in these challenging times.

Simon Pilcher MBA NSW President

The MBA calls for a strong focus on boosting productivity and economic growth to address the economic damage caused by the pandemic.

• Urgent Federal Government funding for a new building and construction skills organisation;

Issue Two | April-June 2020 | MBA NSW

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EXECUTIVE DIRECTOR’S COMMENT

INTRODUCTION

From the Executive Director

MEETING OUR CHALLENGING TIMES HEAD ON

n these challenging times our focus has been on keeping the building industry open, viable and safe.

While this has consumed much time and energy, other matters have evolved which will impact how we undertake work in the future, particularly in NSW. These include: • The Design and Building Practitioners Act 2020 (DAB) • The Residential Apartment Buildings (RAB) (Compliance and Enforcement Powers) Act 2020 • The establishment of the Office of the Building Commission, and • A new building union campaign for increased wages. Since 2003, the MBA has consistently advocated the importance of sharing the statutory liability relating to building projects with all professionals in the building chain. Up until a few weeks ago, this liability has been shouldered by builders. The Association has always believed that a licencing system is fundamental to the competency of practitioners, quality of work, and consumer confidence in the building industry. It provides a mechanism for consumer protection, and a compliance process to address unacceptable practices and poor performance.

After decades of calling for the inclusion of architects, designers, engineers into a construction licencing system, the MBA welcomes the introduction of the Design and Builders Practitioners Act 2020. The new legislation, which is effective 1 July 2021, we believe will increase accountability in the construction sector and improve confidence for consumers. The other significant piece of legislation that has recently been enacted, is the Residential Apartment Buildings (Compliance and Enforcement Act). It will enable the newly appointed Building Commissioner to prohibit an Occupation Certificate if there are serious defects, or there has been non-compliance. The legislation also gives the Commissioner the right to enter sites, investigate building work, issue stop work orders and rectification orders to developers, as well as requiring developers to pay inspection costs. This becomes effective 1 September 2020. Currently this legislation fundamentally applies to apartment development projects (Class 2).

The industry believes that this agreement will not only threaten existing jobs but will undermine investment opportunities for our industry at a time when we must rebuild in a post COVID-19 environment. As you can see, while the industry contends with COVID-19 and its restrictions, and as we move into the rebuild phase there are still many other challenges ahead.

Brian Seidler MBA NSW Executive Director

If that wasn’t enough, the commercial sector of our industry is not only having to contend with many projects being either postponed or withdrawn from the market, the Construction Forestry Maritime Mining Energy Union (CFMMEU) has launched a focused campaign to introduce a union pattern enterprise agreement across the industry. This increases wages and conditions up to 25% over the next two and a half years. The Union’s agreement also demands many restrictive work practices, including closing building sites every second Monday of the month.

Issue Two | April-June 2020 | MBA NSW

FEATURE

COVID-19 BEST PRACTICE GUIDE

COVID-19

BEST PRACTICE GUIDE for building & construction

VISIT OUR WEBSITE AT MBANSW.ASN.AU/COVID1 9 Please note this is a best practice guide only Last updated: Friday 22 May 2020

MBA NSW | Issue Two | April-June 2020

Mates rates for MBA members? That’s Gold. Save $5,850¹ on the 2019 HiLux Rugged X

HiLux Rugged X shown

Our end of financial year offer has landed for all Master Builders Association members! Get in quick to save $5,850¹ on the 2019 HiLux Rugged X. Available with auto or manual transmission, offering a powerful 2.8L turbo diesel engine and up to 3.5 tonnes of braked towing capacity² (manual transmission variants), as well as advanced safety features and all the latest tech. Job to job, weekend to weekend, the HiLux Rugged X can handle anything you throw at it. To find out more, visit your Toyota Fleet Specialist or call 1800 444 847 ®

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

Industry Association member discount offer available to eligible Gold Fleet customers on selected new 2019 built HiLux Rugged X Auto and Manual models purchased between 01/04/2020 and 30/06/2020. Evidence of Industry Association membership must be provided upon request. Offer may be extended or amended at any stage. Speak to your Toyota Fleet Dealer for further details. 2 Towing capacity subject to regulatory requirements, towbar and vehicle design and towing equipment limitations. Ask your dealer for Toyota Genuine Towbar capacity and availability details. T2020-01435 MBA NSW 04/20

FEATURE COVID-19 BEST PRACTICE GUIDE

COVID-19 the law Under the model Work Health and Safety (WHS) laws employers have a duty of care for the health and safety of their workers and others at the workplace. This includes: â&#x20AC;˘ Providing and maintaining a work environment without risk to health and safety, and â&#x20AC;˘ Providing and maintaining adequate facilities for workers in carrying out their work. As an employer / PCBU you must identify risks at the workplace (in consultation with all interested parties), and where possible eliminate or minimise those risks to as low as is reasonably practicable.

the risk All persons in the building and construction industry are at risk of exposure to COVID-19. As a PCBU, you must do what is reasonably practicable to keep your workers a safe distance apart. Control measures need to be implemented that mitigate risks associated with exposure to COVID-19, even if that means delays or disruptions to the project schedule.

MBA NSW | Issue Two | April-June 2020

COVID-19 BEST PRACTICE GUIDE FEATURE

MANAGING THE RISK screening All persons attending site should be made aware of social distancing and self-isolation requirements. This may be undertaken prior to attending site or at least during site specific (or workplace) inductions and ongoing consultative arrangements.

social distancing Coronavirus is spread via airborne contaminated droplets or by contact with contaminated hands, surfaces or objects. Social distancing is a necessity to combat the risk of exposure. Employers are advised to nominate a competent person(s) on site to ensure the following rules are applied: Keep a minimum 1.5 metre distance from others. • Keep a minimum 1.5 metre distance from others. • Scheduling of workers should be done in a manner that keeps workers segregated from each other as much as possible. • Toolbox talks should be carried out via video conference or phone call. If this is not reasonably practicable, they should be staggered between work groups and carried out in an open, well ventilated environment adhering to social distancing requirements. • Staggering of start times, finish times and lunch breaks is also recommended to avoid congregating of workers on the site.

Issue Two | April-June | 2020 | MBA NSW

FEATURE COVID-19 BEST PRACTICE GUIDE

Social Distancing cont. • Any form of quality assurance verifications (client, architect, certifier etc) should be booked when there is minimal contact with others on site and avoided where possible. • Where these verifications cannot be avoided, they should be booked in advance or carried out remotely via provisions of documented evidence or visual/photographic imagery. • Minimise the amount of people within a confined area (e.g. hoist, lift etc.) at any one time. Consider the use of stairwells for capable persons. • Display government signage about social distancing. • Maximise ventilation and minimise recirculated air.

Workplace Hygiene Cleaning surfaces with household disinfectant and washing of hands with alcohol-based sanitiser or soap and water will kill coronavirus. Avoid touching your eyes, mouth or nose. Normal cleaning regimens should be increased to facilitate staggering of work activities and cleaning of high touch areas. These areas include: • Site facilities such as lunchrooms, drinking fountains, change rooms, toilets, showers, vending machines, taps and sinks etc. • High touch points, such as guard/handrails, doors, plant, lifts and hoists and general equipment. Facilities on construction sites should be readily accessible, with adequate supply of soap, water and toilet paper. They must be kept clean, properly stocked and in good working order. Signage should also be displayed around the workplace to remind workers of COVID-19 mitigation requirements.

MBA NSW | Issue Two | April-June 2020

COVID-19 BEST PRACTICE GUIDE FEATURE

Personal hygiene Workers must practice good hygiene, including: • covering coughs and sneezes with an elbow or a tissue • disposing of tissues properly washing hands often with soap and water, including before and after eating and after going to the toilet • using alcohol-based hand sanitisers • washing hair and clothes thoroughly every day • stay more than 1.5 metres away from others • staying home if sick • avoid touching the face • avoid handshakes or other close physical contact • refrain from spitting

Consultation PCBUs and duty holders should provide ongoing and current information to workers in relation to managing the risks associated with COVID-19. This will enable workers to raise any concerns. It is important to remind workers that they have a duty to take reasonable care of their own health and safety and to not adversely affect the health and safety of others. Provide workers with a point of contact to discuss their concerns, and access to support services including employee assistance programs.

Issue Two | April-June | 2020 | MBA NSW

FEATURE COVID-19 BEST PRACTICE GUIDE

Home Isolation If you have been overseas in the last 14 days, you should self-isolate from others for 14 days from the day you arrived from in Australia and monitor your symptoms. If you have come into contact with a person confirmed having COVID-19, you need to self-isolate for 14 days after last contact with the infected person and monitor your symptoms. If you are self-isolating you should stay separate from other people or be separated as much as possible. This applies particularly to those of high risk (such as the elderly or people with heart, lung or kidney conditions and diabetics). People who have symptoms and might be infected with COVID-19 should wear surgical face masks when in the same room as another person & when seeking medical advice. If someone in your household is self-isolating, the measures mentioned above should apply. Other members of the household are not required to be isolated unless they have been overseas in the last 14 days or have been in close contact of a confirmed COVID-19 case. If someone in the workplace is confirmed to have COVID-19, you need to follow the health advice from the National Coronavirus Helpline on 1800 020 080 and start preparing to contact trace movements of worker(s) confirmed to have COVID19 within the workplace.

Travel There are no limitations to travelling within NSW for the purposes of work, school, exercise or visiting family and friends. While businesses may not be able to completely eliminate the risk of workers contracting COVID-19 while carrying out work, they must do all that is reasonably practicable to minimize the risk. This includes trying to maintain a distance of a at least 1.5 metres from others (including anytime they are indoors, in lifts, and in vehicles). Where possible, open windows or adjust air-conditioning for more ventilation.

MBA NSW | Issue Two | April-June 2020

COVID-19 BEST PRACTICE GUIDE FEATURE

Targeted Response PCBUs and duty holders should consult with all interested parties to develop a site-specific emergency plan relevant to their workplace. The emergency plan should include a targeted response to mitigate the spread of COVID-19, in the event a person(s) becomes infected with the virus. The targeted response should address the following: • Identify “confirmed case” or “close contact” • Notify Department of Health on 1800 020 080 • Prepare to evacuate the work site or work area(s) pending advice from Department of Health & the ability to social distance during evacuation. • Start preparing to contact trace movements of person(s) who may have come into close contact with confirmed positive case of COVID-19. • Consider what essential services, plant & equipment & other hazards are needed to be made safe before evacuation of site commences. • Calmly notify everyone on site or within relevant work area(s) that the work site/area needs to close pending further instructions by Department of Health & time for cleaners to conduct a deep clean of the site/area(s). • Notify SafeWork NSW as a “Notifiable Incident” on 13 10 50 • Consult with Department of Health to confirm if works can resume on site. Further information on COVID-19 planning can be found on the National COVID-19 Coordination Commission website below https://pmc.gov.au/sites/default/files/files/my-business-covidsafeplan.pdf

Further Information National Coronavirus Health Information line: 1800 020 080 NSW Health Website – COVID-19 (Coronavirus): NSW Department of Health – Coronavirus FAQ’s Master Builders NSW COVID-19 Information webpage: www.mbansw.asn.au/covid19

Issue Two | April-June | 2020 | MBA NSW

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CUSTOMER SERVICE FEATURE

VICTOR DOMINELLO

MINISTER FOR CUSTOMER SERVICE, NSW GOVERNMENT Omesh Jethwani, Government Projects & Programs Manager in-conversation with Minister Victor Dominello MP, Minister for Customer Service, NSW Government on the evolution of service delivery.

As a senior Minister in the Berejiklian Government, you have held various portfolios over a decade including Aboriginal Affairs, Veterans Affairs, Innovation and Better Regulation, Citizenship and Communities and Finance, Services and Property. On 2 April 2019, you were appointed the inaugural Minister for Customer Service, the first of its kind in the country. How has your journey been so far?

What are the core functions of the New South Wales Department of Customer Service?

delivering the Bushfire Customer Care program and launching one of the world’s largest Spatial Digital Twins.

The core functions are identifying and addressing the pain points across NSW Government to ensure they prioritise the customer and where possible, use technology to improve service delivery. Examples include enrolling a child in school, downloading a Digital Driver Licence and allowing drivers in parts of Sydney to pay for parking and top up via an app.

The NSW Planning Portal had been designed to provide public access to a range of planning services and information including documents or other information in the NSW planning database. What has been the outcome of the industry’s response?

The journey has been rewarding, exciting and challenging. In each portfolio I have had the opportunity to deliver meaningful reform across vastly different sectors in collaboration with the community and stakeholders.

Which NSW Government agencies are included in the Customer Service cluster?

It has also been a learning experience. I am passionate about public service and being a Minister is an opportunity for me to give something back. Why was the Ministry of Customer Service created? The creation of this new cluster is testament to how serious the NSW Government is about improving the citizen experience and making life easier for them. We’ve seen how successful Service NSW has been at putting the customer first, and this Ministry is all about turbocharging the customer experience.

The cluster includes many of the regulatory bodies such as Fair Trading, SafeWork, Liquor, Gaming and Racing, Birth, Deaths and Marriages and the State Insurance Regulatory Authority. It also includes Service NSW, Spatial Services, cyber security and Digital Government. In the last 12 months, what were some of the new services or initiatives implemented by the New South Wales Department of Customer Service? Key achievements include the state wide rollout of the NSW Digital Driver Licence, expanding ePlanning and announcing a mandate for select councils, launching the Park’nPay app, introducing an online school enrolment pilot,

ePlanning has been well received by industry and customers across different parts of NSW. The initiative is a big win for both homeowners and industry, by slashing paperwork and improving transparency. What is one of your proudest achievements delivered in Government? The state wide rollout of the Digital Driver Licence was a particularly proud moment. It is a great example of using technology to make life easier for people, and incorporated feedback from the community and stakeholders. The numbers speak for themselves — more than 1.5 million people have downloaded the digital licence since its launch in November 2019, accounting for more than a quarter of drivers. You have a reputation as being one of the Government’s fiercest advocates for data strategising and progressive Issue Two | April-June 2020 | MBA NSW

FEATURE CUSTOMER SERVICE

digitisation of citizen services. Is there a strategy in place on the Government’s smart cities initiatives? I am a data and privacy zealot which is why I am presiding over the NSW Government’s digital transformation agenda. We are in the final stages of drafting a smart places strategy and a smart infrastructure policy. The NSW Department of Customer Service has oversight of all things digital to ensure that citizen centric design is built into new digital services offerings. What are the latest updates on the following: a. the Digital Driving License roll-out; (we announced the state wide rollout in November 2019. It has been an overwhelming success with 96 per cent of people giving it the thumbs up. We are working with industry groups to ensure they are aware of their obligations) b. the Digital Restart Fund; and (More than $35 million has been invested in a number of projects that will help with the Government’s digital transformation agenda. Legislation to ensure the Fund’s longevity is currently before Parliament ) c. the State Digital Strategy (The Beyond Digital Strategy was launched last year. A number of digital products are being developed and delivered, which is testament to our commitment to this strategy) More than 1 million NSW motorists have downloaded the Digital Driver Licence (DDL) since it was officially

MBA NSW | Issue Two | April-June 2020

launched on 3 November, accounting for almost 19 per cent of all licence holders. Will the digital services be extended to other licences, i.e. digital photo building trade licence, contractors digital photo licence, etc? The Digital Driver Licence has demonstrated the popularity of these types of digital products. We are exploring ways in which we can apply technology to make life easier for electricians and plumbers and will have more to say on this soon. What are some of the forthcoming digital projects in the pipeline? Which ones are you most looking forward to delivering? I am most passionate about implementing the full adoption of the ePlanning portal by NSW Councils for DA and CDC lodgement; completing the $620 million expansion of the government radio network for emergency services organisations; and expanding the Service NSW one-stop shop model for business transactions and approvals. In its last term, the NSW Government wanted 70 percent of government services digitised by 2019. Has that target been met? Digital transformation is a top priority of mine, and the NSW Government was recently named the most digitally advanced jurisdiction in Australia. More than 70 per cent of NSW Government transactions can be done online via the Service NSW website. On 1 December 2019, you announced

tighter restrictions on developers including what they must disclose to customers and their ability to deviate from those plans. Would you care to elaborate for our readers? Purchasing a property is the most significant financial decision a person or couple will make in their lifetime. Information is power and these new laws provide purchasers with stronger protections and more transparency so they can make an informed decision. In your opinion, how do you think businesses can align with NSW Government strategic initiatives? We are living in the digital age and customers want more choice and convenience when it comes to government products and services. Businesses are at the forefront of technology and innovation and I would encourage them to look at our priorities and identify opportunities to collaborate with us to make life easier for citizens. What is the New South Wales Department of Customer Service aiming to achieve in the next decade? We have a number of exciting projects in the pipeline long-term. Some of our top priorities are turbocharging the customer experience for businesses through Service NSW, making government easy for citizens through “Tell Us Once” reforms, consolidating the more than 750 websites across Government, and delivering first class services for citizens at pivotal life moments, such as birth, marriage, starting school, starting employment, retirement and death of a loved one.

CUSTOMER SERVICE FEATURE

A YEAR AGO...

n the past 12 weeks the words “no one could have predicted” have been endlessly repeated in relation to the extraordinary challenges we are facing this year courtesy of humanity’s oldest enemies, disease, and natural disasters. In January we watched the worst bushfire season in a decade wreak devastation as Master Builders Australia and Master Builders Associations rallied to coordinate a $150,000 donation for affected communities. In February, the fires had only just been extinguished and the coronavirus was an overseas news story that we paid only scant attention to. Master Builders was engaging with the highest levels of government on how best to rebuild shattered communities while contributing to Ministerial Forums and bush-fire recovery taskforces. We had also resumed our advocacy for the enforcement of the rule of law in the industry with an advertising campaign calling for the passage of the ensuring integrity laws. Only a month later Master Builders Australia and Master Builders Associations were fighting tooth and nail to keep the industry open as

governments implemented responses to the health crisis that have resulted in a massive economic contraction, the worst of which is yet to hit our industry.

tax policies that would have led to 42,000 less new homes (our revised forecast predicts 43,000 less new homes will not be built in 2020/21) and 32,000 less jobs in our industry.

However, the industry could have so easily been in much worse shape heading into the crisis and Master Builders with much less influence to achieve outcomes from governments in support of members and the industry.

Had the result on May 18 last year been different, Master Builders members operating in the construction sector would now be doing so without the protection of the Australian Building and Construction Commission (ABCC) and almost certainly many of the laws that have been passed to strengthen the enforcement of the rule of law on building sites.

One year ago today we woke up contemplating the game-changing “miracle victory” which saw the Morrison Government re-elected against what most thought was overwhelming odds. Despite public polling which had predicted a Labor win right up until Election Night, Master Builders Australia and Master Builders Associations around the country had run an evidence based advocacy campaign against policies which would have had a devastating impact on Master Builders members, our industry and the economy. Just as we now confront loss of jobs in our industry and a threat to the viability of Master Builders member businesses, we faced prior to the last Federal Election the threat of property

Running a ‘policy not politics’ campaign when almost all other employer and industry peak bodies had vacated the field, intimidated by the prospect of an incoming Shorten Government, means that Master Builders has greatly enhanced relationships and influence with both the Federal Government and Opposition. Today this evidence-based and issues focused advocacy continues to pay dividends as our industry remains open and Master Builders fights for the support of governments that members and the industry need to weather the storm of COVID-19.

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HARASSMENT INQUIRY FEATURE

RESPECT@WORK: National Inquiry Into Sexual Harassment In Australian Workplaces On 5 March 2020, the Australian Human Rights Commission (Commission) released its report on sexual harassment in Australian workplaces, â&#x20AC;&#x153;Respect@Workâ&#x20AC;?. The report is the culmination of an 18-month inquiry, led by Sex Discrimination Commissioner Kate Jenkins.

his Inquiry examined the nature and prevalence of sexual harassment in Australian workplaces, the drivers of this harassment and measures to address and prevent sexual harassment. The Commission identifies gender inequality as the underlying condition for sexual harassment, and that sexual harassment occurs in all industries, but is most prevalent in industries which are male-dominated (for example, construction and mining industries), hierarchical (for example, the police, medical and legal professions) and those industries where workers are exposed to a high degree of contact with third parties (such as the retail, hospitality and health care sectors). The report makes 55 recommendations. Some of these are aimed at the existing legal and regulatory framework; others are more holistic, directed at creating change outside the workplace, implementing research initiatives, and education and training for key players, including boards and industry regulators. The current legal and regulatory system is simply no longer fit for purpose. In this report, the Commission recommended a new model

that improves the coordination, consistency and clarity between the anti-discrimination, employment and work health and safety legislative schemes. The new model is evidence-based, victimfocused and framed through a gender and intersectional lens. It is also based on existing legal frameworks to avoid duplication, ambiguity and undue burden on employers. Importantly, it recognises the complementary and mutually reinforcing nature of the three schemes, while also recognising their distinctive features. The Commission calls on all employers in creating safe, gender-equal and inclusive

workplaces, no matter their industry or size. This will require transparency, accountability and leadership. It will also require a shift from the current reactive model, that requires complaints from individuals, to a proactive model, which will require positive actions from employers. A copy of the report can be downloaded from https://www.humanrights.gov.au/our-work/sexdiscrimination/publications/respectwork-sexualharassment-national-inquiry-report-2020 Issue Two | April-June 2020 | MBA NSW

HOUSING FIRE PROTECTION UPDATE

PLANNING FOR BUSH FIRE PROTECTION

he 2019 revision for “Planning For Bushfire Protection 2019” was released on the 1st March 2020. This revision builds on the outcomes and lessons of bush fire events experienced over the past decade including the 2009 Black Saturday bush fires in Victoria. Along with changes to National Construction Code and Standards, this substantially revised 2019 edition is intended for use by councils, town planners, fire authorities, developers, planning and bush fire consultants, surveyors, building practitioners and approval authorities. This timely update has come out in the wake of the recent bushfires and will be a great tool to plan for the future. It has also been announced that AS3959 “Construction of buildings in bushfire-prone areas” will be made available for free to aid in construction of better, more fire-resistant homes. With the update to the guidelines, it is expected we will see on flow effects at a local planning level in the coming months with Master Builders NSW keeping a close eye for any further updates. Members needing advice on building in bushfire zones should contact our technical department anytime.

MBA NSW | Issue Two | April-June 2020

PLANNING FOR BUSH FIRE PROTECTION A guide for councils, planners, fire authorities and developers NOVEMBER 2019

REBUILDING THE INDUSTRY HOUSING

Construction labour market – April 2020

With the inevitable impact of COVID-19 we are now seeing the flow on effects in the construction industry. With total employment dropping by almost 600,000 and the unemployment rate jumping to 6.2%. Part-time jobs accounted for a disproportionate share of the employment drop during the month. The Government has announced a multitude of stimulus packages and the Prime minister himself has mentioned that the construction industry will be relied upon to assist in the rebuilding of our economy.

LABOUR MARKET - April 2020 NSW VIC QLD SA WA TAS

ACT

AUS

Construction Employment

Feb 2020

378,229

312,099

252,940

70,206

120,020

19,736

12,296

18,658

1,184,184

Construction Employment: Share of Total (%)

Feb 2020

9.1%

9.0%

9.8%

8.2%

8.7%

7.6%

9.3%

7.8%

9.1%

Unemployment Rate

Apr 2020

6.0%

6.8%

7.2%

6.0%

6.2%

6.5%

4.0%

6.2%

Mar 2020

4.9%

5.2%

5.7%

6.3%

5.4%

4.9%

5.3%

3.5%

5.2%

Apr 2020

4.5%

4.9%

5.9%

6.1%

6.0%

6.8%

4.8%

4.7%

5.2%

Month of Apr 2020

-5.4%

-3.7%

-5.1%

-4.8%

-4.6%

-3.4%

-3.2%

-4.0%

-4.6%

Year to Apr 2020

-4.7%

-1.3%

-3.2%

-4.9%

-3.2%

0.4%

2.2%

1.4%

-3.1%

Net number of Jobs Created/ Lost

Month of Apr 2020

-221.425

-127,134

-129,559

-40,812

-62,301

-8,652

-4,316

-9,550

-594,280

Year to Apr 2020

-194,905

-43,201

-81,592

-42,121

-43,426

949

2,825

3,182

-395,059

Full-time Employment Growth Rate

Month of Apr 2020

-4.0%

-0.7%

-3.0%

-3.7%

-2.3%

-2.7%

-1.4%

-0.3%

-2.5%

Year to Apr 2020

-1.0%

-0.1%

-2.4%

-5.7%

-3.1%

-1.1%

0.1%

4.2%

-1.4%

Net Full-time Jobs Month of Created/Lost Apr 2020

-116,724

-16,962

-51,774

-20,059

-20,789

-4,155

-1,477

-491

-220,514

Year to Apr 2020

-28,950

1,823

-41,144

-31,913

-29,195

-1,702

7,013

-123,022

Full-time Jobs as % Total Jobs Created/Lost

Month of Apr 2020

52.7%

13.3%

40.0%

49.1%

33.4%

48.0%

34.2%

5.1%

37.1%

Year to Apr 2020

14.9%

50.4%

75.8%

67.2%

2.1%

220.4%

31.1%

Full-time Job Share

Apr 2020

71.9%

69.4%

64.5%

69.1%

77.5%

74.5%

69.7%

Employment Growth Rate

68.8%

60.6%

Source: Master Builders Australia analysis of ABS 6202.0 and ABS 1.0.55.003

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training@constructivity.com.au Issue Two | April-June 2020 | MBA NSW

INDUSTRIAL RELATIONS

COMPLYING WITH CORPORATE OBLIGATIONS

PROTECTION FOR CORPORATE SECTOR WHISTLEBLOWERS

MBA NSW | Issue Two | April-June 2020

COMPLYING WITH CORPORATE OBLIGATIONS INDUSTRIAL RELATIONS

embers may be aware that from 1 July 2019, the whistleblower protections in Part 9.4AAA the Corporations Act 2001 (Corporations Act) were expanded to provide greater protections for whistleblowers who report misconduct about companies and company officers. The reforms to the regime were contained in the Treasury Laws Amendment (Enhancing Whistleblower Protections) Act 2019. Key changes to the corporate sector whistleblower protection regime include: • an expansion of the definition of whistleblower both current and former employees, officers, and contractors, as well as their spouses, dependants, and other relatives, and anonymous disclosures

from whistleblowers: • Information Sheet 238 Whistleblower rights and protections (INFO 238) • Information Sheet 239 How ASIC handles whistleblower reports (INFO 239) ASIC is responsible for enforcing the corporate sector whistleblower protection regime, including where a whistleblower may suffer detriment for alleging breaches of laws outside of ASIC’s regulatory responsibilities. The regime also applies to whistleblower reports made before 1 July 2019, if a whistleblower’s confidentiality is breached or they suffer detriment on or after 1 July 2019. Members are also advised that public companies, large proprietary companies, and corporate trustees of registrable superannuation entities will be required to have a whistleblower policy and to make that policy available to officers and employees of the company.

whistleblowers • information about how the company will support whistleblowers and protect them from detriment • information about how the company will investigate disclosures that qualify for protection under the law. This will be important for whistleblowers to understand how their reports and their personal information will be handled during any investigation • information about how the company will ensure fair treatment of employees of the company who are mentioned in disclosures that qualify for protection under the law, or to whom such disclosures relate

• information about how the policy is to be • extends the protections to whistleblower made available to officers and employees of reports that allege misconduct, an improper the company, and state of affairs or circumstances, or breach • any matters prescribed by the regulations of financial sector law and all Commonwealth (no regulations have yet been offences punishable by prescribed). imprisonment of 12 months or ASIC has released Regulatory more, though a report solely There are penalties for failing to comply with the Guide 270 Whistleblower policies about a personal work-related (RG 270) to help entities establish a requirement to have a whistleblower policy. grievance is not covered by the whistleblower policy that complies protections with their legal obligations. It • creates civil penalty provisions, also contains our good practice and in addition to the existing guidance on implementing and maintaining a criminal offences, for causing or threatening This requirement commenced on 1 January whistleblower policy. detriment to (or victimising) a whistleblower 2020. A small proprietary company that RG 270 will also assist entities that are not and for breaching a whistleblower’s becomes a large proprietary company after 1 required to have a whistleblower policy but confidentiality January 2020 will have an additional six months are required to manage whistleblowing in • gives protections for whistleblowers in limited to establish a whistleblower policy. accordance with the Corporations Act. circumstances if they disclose to a journalist There are penalties for failing to comply with the The Corporations Act also gives ASIC the or parliamentarian after they have reported to requirement to have a whistleblower policy. power to grant relief from the whistleblower ASIC or APRA their concerns about ASIC considers that a strong and effective policy requirements, so that companies o substantial and imminent danger to the whistleblower policy is a key component may be exempted from compliance with health or safety of one or more people or of corporate governance. Respect and fair the requirements or certain aspects of the to the natural environment or treatment for whistleblowers, commitment to requirements. address whistleblower concerns, and reporting o matters in the public interest after 90 days ASIC has granted relief to public companies of whistleblower concerns to senior executives • provides whistleblowers with easier access limited by guarantee that are not‑for-profits and board members will assist a company to to compensation and remedies if they or charities with annual revenue of less than manage itself, comply with its obligations, and suffer detriment, including protections from $1 million from the requirement to have a improve its performance. costs orders unless a court finds the claim whistleblower policy. See ASIC Corporations The Corporations Act sets out at a high level to be vexatious or the whistleblower acted (Whistleblower Policies) Instrument 2019/1146. what a whistleblower policy should contain. unreasonably, and • requires all public companies, large proprietary companies, and corporate trustees of registrable superannuation entities to have a whistleblower policy from 1 January 2020. The Australian Securities & Investments Commission (ASIC) has issued two information sheets for people to understand who is eligible to access the whistleblower rights and protections under the Corporations Act and how we will respond to reports of misconduct

• information about the protections available to whistleblowers, including protections under the law

Further information about ASIC’s relief powers, including how to request relief from ASIC, is contained in Regulatory Guide 51 Applications for relief (RG 51).

• information about to whom disclosures that qualify for protection under the law may be made, and how they may be made. This will be important for whistleblowers to be sure of the company’s arrangements, given that a company can authorise particular staff or third parties to receive disclosures from

The above information has been extracted from the ASIC website: https://asic.gov.au/about-asic/asicinvestigations-and-enforcement/whistleblowing/ protections-for-corporate-sectorwhistleblowers/

These are:

Issue Two | April-June 2020 | MBA NSW

INDUSTRIAL RELATIONS

COMPLYING WITH CORPORATE OBLIGATIONS

WAGE THEFT

MBA NSW | Issue Two | April-June 2020

COMPLYING WITH CORPORATE OBLIGATIONS

INDUSTRIAL RELATIONS

UNDERPAYMENT OF WAGES – AN ISSUE TO BE AVOIDED

nderpayment of wages is not a new phenomenon. However, the recent proliferation of what is being called wage theft, is occurring across a range of occupations, labour market segments and business models. Employers who underpay workers could be forced to name and shame themselves with public signs admitting their wage theft as part of industrial relations reforms Attorney-General Christian Porter is considering. Businesses which fail to prevent wage underpayment could also be banned from hiring migrant workers for a period of time, and company directors disqualified from holding office. Over the past 12 months, an embarrassing list of large corporations have been caught up in wage theft scandals. Dozens of Australian employers have admitted to shortchanging their workers. Australian supermarket giants Coles, Woolworths, discount chain Target, Commonwealth Bank, Bunnings, Wesfarmers and Super Retail Group have all joined the wall of shame. They are publicly prosecuted for underpaying their employees, resulting in millions of dollars’ worth of back payments and fines. Recent developments have suggested several industries in the telecommunications, aged care, disability care and manufacturing sectors are also contending with their wage theft issues. They have found itself on the wrong side of reporting underpayments to employees. Based on data from the Fair Work Ombudsman, PricewaterhouseCoopers estimates Australian workers are underpaid $1.35 billion each year, affecting 13 per cent of the total workforce. In high-risk sectors, 21 per cent of the workforce is affected. That means that overall, one in seven workers are not getting their wages, penalty rates, superannuation, overtime, and entitlements such as sick or annual leave paid correctly.

In high-risk sectors, this happens to about one in five workers. The root causes for such occurrences often vary. Typically, they range from an ignorance of the law to a lack of awareness, the incorrect interpretation of awards and an overly complicated Industrial Relations system. The rather distinct common denominator suggests the cause is linked to payroll setup. Incorrect payroll setup can occur via a handful of different areas. We have classified the main ones below: • Incorrect information flowing from HR (Classifications/Agreements etc.), • Wrong initial payroll system setup, • Legacy payroll software making calculations challenging to administer, • Set and forget mentality in payroll departments. Payroll System Setup An organisation payroll system setup is the foundation of its payroll processing, getting that wrong could land an organisation into trouble. For example: • Pay codes: Pay codes determine entitlements, tax, super, and in most cases, payroll tax liability, and Single Touch Payroll (STP) reporting. Common areas for errors include when to use categories as ordinary hours, associated accruals or Superannuation Guarantee Contributions (SGC) to those categories and when something is considered an allowance. Similarly, whether allowances are subject to SCG and more recently, STP reporting rules are often incorrectly setup. • Deductions/back payments: These have a direct impact on employee’s taxable earnings, Single Touch Payroll (STP) reporting and tax amount. As we know, deductions can be before or after-

tax, and specific rules surrounding the treatment of deductions/back payments that should not be ignored. • Leave code/category: They determine the accrual rate and entitlement period. The leave code/ category should at least meet the national minimum standards or state/territory minimum for Long Service Leave (LSL). Correctly determining whether a leave category is paid or unpaid is a common oversight. If a payroll system setup is non-compliant, it could lead to inaccurate leave accruals, superannuation errors, under/overtaxing employees, not meeting the organisation’s company payroll tax or reporting obligations, among others. In the long run, rectifying these errors will cost organisations money, resources and reputation. A set and forget mentality in Payroll departments is not a good excuse It is not uncommon for a modern award to be updated at least twice in a calendar year. Therefore there is a need for additional vigilance within HR and payroll departments on an ongoing basis with regards system setup. Organisations need to implement a checklist: • “When was the last time the organisation carried out a system check on the payroll system?” • “Has the organisation recently gone through systems migration and did not sign off on the setup?” • “Is the organisation’s payroll system up to date with changes?” • “Does the organisation need to review its payroll process?” Undertaking System Checks If you are not a hundred per cent confident your payroll system setup is compliant or has the functionality required to process your payroll; Issue Two | April-June 2020 | MBA NSW

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COMPLYING WITH CORPORATE OBLIGATIONS

we highly recommend running a system health check. If you do not feel confident you have the expertise inhouse to perform a payroll system audit, we recommend reviewing the following useful tips:

Employers are required to keep several records relating to the employment of an employee, such as payments made to employees and hours of work. Other records employers are required to keep include details such as;

INDUSTRIAL RELATIONS

the opportunity for payroll mistakes and underpayments. Requirements For Employee Records An ‘employee record’ for the purpose of the FW Act includes a record of personal information relating to the employment of an employee, including:

If you are looking at implementing a new payroll system;

• industrial instrument coverage;

• Engaging a payroll expert removes risk and is an affordable option;

• where relevant, as to the how and by whom the employment was terminated;

• The engagement, training, disciplining, resignation or termination of employment of the employee;

• superannuation payment records, including any choice of fund nomination, and;

• The terms and conditions of employment of the employee;

• the nature of the employment (i.e. full-time, part-time or casual).

• The employee’s personal and emergency contact details;

Employers need to keep records for at least seven years, even if an employee has left employment, as employees have six years to commence underpayment proceedings.

• The employee’s performance or conduct;

• Appoint a project manager to be responsible for the payroll system setup; • Identify checkpoints/approvals during the process; and • Always refer to Master Builders NSW and Australian Taxation websites for support and information. If you are looking at auditing your existing payroll; • Review your pay codes, leave types and deductions; • Review your manual processes for automation opportunities; • Have an internal approval process whenever a new payroll item is to be created; • Keep up to date with changes and ensure your system is updated accordingly; and • Alternatively, you could engage an expert to run this audit on your behalf. Amendments to the Fair Work Act 2009 (Act) that came into effect in September 2017 place a reverse onus on employers to disprove an allegation of underpayment by employees if the employer has not kept required records.

• leave records;

Since September 2017, a further amendment to the Act is that a Court can declare a contravention of the Act to be a “serious contravention” and impose increased penalties up to $630,000 per infringement for companies and $126,000 per infringement for individuals. A “serious contravention” occurs when:

• The employee’s hours of employment, salary or wages; • The employee’s recreation, long service, sick, personal, maternity, paternity or other leave; or • The employee’s taxation, banking or superannuation affairs. Employee records must be legible, in English and can be computerised.

• the person or business knew they were contravening an obligation under workplace law; and

An employee record must include a record of the employer’s Australian Business Number (ABN).

• the contravention was part of a systematic pattern of conduct affecting one or more people.

Employee records must be accurate and not be altered except to correct a record with the correction being recorded as such. An employer must not make or make use of an entry in an employee record if the person does so knowing the entry is false and misleading.

The Fair Work Act requirements for organisations to implement stringent recordkeeping measures which will minimise

Issue Two | April-June 2020 | MBA NSW

INDUSTRIAL RELATIONS

COMPLYING WITH CORPORATE OBLIGATIONS

Details required for employee records The following table lists the details required for employee records that must be kept by an employer. Category

Required Details

General

• The employer’s name • The employee’s name • Whether the employee’s employment is full-time, part-time or casual • The date on which the employee’s employment began • Since 1 January 2010 – the Australian Business Number of the employer

Category

Required Details

Pay

• The rate of remuneration paid to the employee • The gross and net amounts paid to the employee • Any deductions made from the gross amount paid to the employee • A record of hours worked by casual or irregular part-time employees who are guaranteed a basic periodic rate of pay • Details of any incentive-based payment, bonus, loading, penalty rate, monetary allowance, or other separately identifiable entitlement

Overtime

• The number of overtime hours worked by the employee each day or when the employee started and ceased working overtime hours if an overtime loading or penalty rate must be paid to the employee

Averaging of Hours

• If the employer and employee agree in writing to an averaging of the employee’s hours of work, the employer must keep a copy of that agreement

Leave

• Details of any leave taken by the employee • Details of the balance of the employee’s entitlement to that leave from time to time • If the employer and employee agree to cash out an accrued amount of leave, a copy of the agreement, the rate of payment for the amount of annual leave that was cashed out and when the payment was made

Superannuation Contributions

• The amount of the contributions made • The period over which the contributions were made • The date on which each contribution was made • The name of any fund to which the contribution was made » The basis on which the employer became liable to make the contribution including: a record of any election made by the employee as to the fund to which contributions are to be made » the date of any relevant election

Individual Flexibility Arrangements

• If the employer and employee agree to an individual flexibility agreement, a copy of the agreement and a copy of any notice or agreement that terminates the agreement

Guarantee of Annual Earnings1

• If the employer gives a guarantee of annual earnings, a copy of the guarantee and the period of time to which it relates must be kept by the employer • If the guarantee of annual earnings is revoked, the employer must keep a record of the date on which the guarantee is revoked

Termination of Employment

• Whether the employment was terminated by consent, by notice, summarily or in some other manner (which must be specified) • The name of the person who acted to terminate the employment

MBA NSW | Issue Two | April-June 2020

Employees and former employees may access their records An employee or former employee may request a copy of employment records, though employees can only request copies of their records. Employers should take care that no access is given to the records of other employees. Where a record requested by an employee or former employee is kept at the employer’s premises, the employer must: • Make a copy of the record available to the person requesting a copy at the employer’s premises within three business days; or • Post a copy of the record within 14 days of receiving the request. Where the record is not kept at the employer’s premises, the employer must, as soon as possible after receiving the request, make a copy of the employee record available at the employer’s premises or post a copy to the employee. Access to employee records by inspectors Employee records must be readily accessible to a Fair Work Inspector and be in a form that allows an inspector to determine the employee’s entitlements and whether the employee is receiving those entitlements.

EMPLOYEE RECORDS FOLLOWING THE TRANSFER OF BUSINESS Where there is a transfer of business, the old employer must transfer to the new employer each employee record concerning a transferring employee. Where a transferring employee becomes an employee of the new employer after the time of transfer, the new employer must ask the old employer to provide the transferring employee’s records. The old employer must comply with such a request. Payslips An employer must issue to the employee a written payslip relating to each remuneration payment made by the employer to the employee. The payslip must be issued within one day of the payment to which the pay slip relates being made to the employee, either electronically or as a hard copy. The payslip must contain the following information:

COMPLYING WITH CORPORATE OBLIGATIONS

• The name of the employer and the name of the employee; • The date on which the payment to which the pay slip relates was made; • The period to which that payslip relates; • The gross amount of the payment and the net amount of the payment; • Any amount paid that is a bonus, loading, allowance, penalty rate, incentive-based payment or other separately identifiable entitlement; • Since 1 January 2010 – the Australian Business Number (ABN) (if any) of the employer; • The details in respect of each amount deducted from the gross amount of the payment including the name, or the name and number, the fund or account into which the deduction was paid; • If the employee is paid at an hourly rate of pay: » the ordinary hourly rate;

» t he number of hours in that period for which the employee was employed at that rate; and » t he amount of the payment made at that rate • If the employee is paid at an annual rate of pay — that rate as at the latest date to which the payment relates; and • If the employer is required to make superannuation contributions for the benefit of the employee: » t he amount of each contribution made by the employer during the period to which the pay slip relates; » t he name, or the name and number, of the fund to which the contribution was made; and » t he amounts of contributions that the employer is liable to make in relation to the period to which the pay slip relates and the name, or the name and number, of any fund to which the contributions will be made.

INDUSTRIAL RELATIONS

Note: while not a statutory requirement, Master Builders recommends any hours accrued for annual leave and banked towards a rostered day off should be recorded on an employee’s payslip. Breaches of record-keeping requirements Civil penalties apply if an employer breaches the requirements for employee records and payslips. The maximum penalty that can be ordered for each contravention of a civil penalty provision is $12,600 for an individual and $63,000 for a Corporation. Further information The Master Builders Association has published Fact Sheets on several other relevant topics. For further information, please see the relevant fact sheets at www.mbansw.asn.au – login with your MBA member login – click on Industrial Relations and member downloads.

CMY

Issue Two | April-June 2020 | MBA NSW

INDUSTRIAL RELATIONS

INDUSTRY NEWS

DIRECTORS TO GET ID NUMBER ‘FOR LIFE’ TO THWART PHOENIXING Members are advised that the Director Identification Number (DIN) scheme that Master Builders Australia has backed and lobbied for has been passed by the Federal Parliament.

he DIN is supported by Master Builders as a means of tackling the problem of illegitimate or unethical phoenixing of businesses by company directors to avoid paying employees and particularly importantly in our industry, subcontractors their entitlements. First proposed by Labor, it has been adopted by the Morrison Government with Master Builders strong support. It was also an important part of Master Builders proposed response to the review into security of payment. All current and new company directors will need to verify their identity and get a director’s number for life under new anti-phoenixing laws passed by federal Parliament.

The ATO will also manage the administrative data associated with the registries. Near realtime ATO payroll data has been used during the pandemic to better understand the impact of business closures. The passage of the Business Registration Bill through Parliament late last week comes as the Deregulation Task Force reviews electronic communications laws.

Current directors are to be given 18 months to verify their identity. Directors currently do not have to verify identity, leading to many false names being used. The new directors identity number (DIN) laws follow a 2015 Productivity Commission Report highlighting the practice of phoenixing. The government announced it would roll out the DIN in 2017.

Phoenixing is when companies deliberately avoid paying liabilities by shutting down an indebted company and Phoenixing is when companies deliberately avoid transferring assets to another company. paying liabilities by shutting down an indebted

company and transferring assets to another company.

The new identity system is expected to begin in the first half of 2021, once the application system has been developed and deployed. The new business registration law also enables the creation of a mega-business registry to be formed from 32 different registries, as part of a $60 million program to simplify and streamline business reporting and licensing. The program will consolidate 31 ASIC business registers including the Companies Register, with approximately 2.6 million registered companies, and the Australian Business Register, with approximately 7.9 million active ABNs. The Australian Taxation Office will be the operator of the new super registry which will provide a powerful foundation to both manage fraud and to build regulatory functions. The aim is to also link the new super registry into private business systems to automate compliance and other requirements. The ATO allows private accounting systems to integrate with its single touch payroll reporting system, creating a powerful platform of services

and applications.

MBA NSW | Issue Two | April-June 2020

The aim is to enable businesses to lawfully transact with government and each other using digital communications and applications, including block chain and other technologies. Assistant Minister to the Prime Minister Ben Morton is leading the government’s deregulation program. He announced Treasury will be working with the States to simplify occupational licensing and promote national recognition of qualifications. “Twenty per cent of workers in the economy are required to be licensed or registered, while there are in excess of 800 licences in manual trades across States and Territories,” Mr Morton said.

This hurts trade creditors, employees and the public through lost taxes. According to the explanatory memorandum, phoenixing costs the Australian economy between $2.9 billion and $5.1 billion a year. The DIN is a unique identifier that a director will keep forever, enabling regulators to better track directors of failed companies who use fictitious identities. The Modernising Business Registers program was announced in the 2018-19 budget, and given $60 million funding late last year as part of a push to reduce red tape and build a modern compliance system.

Transition period for directors to verify

NSW has created a business concierge service the government claims has reduced business start up times by three months for cafes and restaurants and over five months for small bars.

Under the transition rules for the new director identity system, for the first 12 months of the system new directors will have 28 days to verify themselves and obtain a directors identity number. After that period, new directors will have to have a director’s identity number before they can be registered.

“Instead of waiting up to 18 months and filling out up to 48 forms, an aspiring cafe, restaurant or small bar owner can expect to open in less than 90 days by using one online platform and with the help of a Service NSW Business Concierge,” the Minister for Customer Service Victor Dominello said.

INDUSTRY NEWS

NEW POWERS TO PREVENT DEFECTIVE BUILDINGS ENTERING THE MARKET

INDUSTRIAL RELATIONS

DESIGN AND BUILDING PRACTITIONERS BILL 2019

The NSW Building Commissioner will now have boosted powers to stop defective buildings being sold to consumers, thanks to the passing of the Residential Apartment Buildings Bill 2020 in NSW Parliament.

inister for Better Regulation, Kevin Anderson said the Bill will arm the Building Commissioner with a suite of powers to ensure buildings are constructed to a high standard, with robust offences and heavy fines for those doing the wrong thing. “The Building Commissioner is now equipped with the power to prevent occupation certificates or strata plan registrations before defective buildings can enter the market,” Mr Anderson said. The Residential Apartment Buildings (Compliance and Enforcement Powers) Bill 2020 is effective from 1 September 2020 and applies to residential apartment building work. It is retrospective with a 10 year limit. The legislation enables the NSW Building Commissioner, through the Department of Customer Service, to: Prohibit an occupation certificate from being issued if there are serious defects or there has been non-compliance; Enter sites and investigate building work; Issue stop work orders and rectification orders to developers; Require developers to pay the inspection costs. If deemed necessary by the Building Commissioner, a developer is required to give notice to the Department at least six months before but no more than 12 months before a proposed application for an occupation certificate (OC). The project will then be inspected on a monthly basis in the lead up to OC. Transitional provisions are provided for OCs proposed to be made in the first six months from commencement of the Act. Notification is required within 14 days of 1 September 2020.

aster Builders has always believed that a licensing system is fundamental to the competency of practitioners, quality of work and consumer confidence in the building industry. It provides a mechanism for consumer protection and a compliance process to address unacceptable practises and poor performance. After decades of calling for the inclusion of architects, designers and engineers into a licensing system for building and construction work in NSW, Master Builders cautiously welcomes the passage of new building regulations. Whilst there are details that remain to be seen how they will work in practice, we believe the Bill, effective 1st July 2021, will increase accountability in the construction sector and improve confidence for consumers. Issues that the Bill considers include: • Registration required for all building practitioners, designers and engineers. • It is likely that if a builder holds a builders licence then they will be entitled to registration under this legislation. Building practitioners includes those doing alterations, additions, repairs, renovations and protective treatments. • Insurance is required for all building practitioners, designers and engineers. Exact details of the insurance requirements are yet to be announced. • Declarations are required from the building practitioner that: » the building work complies with the Building Code of Australia;

» a design compliance declaration has been obtained from a registered design practitioner for the building elements; and » the building work complies with that regulated design. • Declarations are required from a registered design practitioner that the design for the building elements comply with the Building Code of Australia and other applicable requirements. Building elements are defined as internal and external load-bearing components, a component of the building enclosure, waterproofing, fire safety systems, and mechanical, plumbing and electrical services; • There are various enforcement and investigation powers. The Regulations will set out the classes of buildings to which the above regime will be imposed. The Government has indicated that it will apply to Class 2 initially but will be extended to all classes over time. Much of the detail of this new regime, including registration and insurance requirements, will be set out in the regulations which are expected later this year. Further the Bill imposes a statutory duty of care on any person who does construction work to exercise reasonable care to avoid economic loss caused by defects. This duty commenced on 11 June 2020 but is retrospective, so applies to defects discovered up to six years ago on buildings up to 10 years old. If members have any inquiries then please call 02 8586 3517. Issue Two | April-June 2020 | MBA NSW

TRAINING

UPSKILLING COURSES

TRAINING

EDUCATION AND SKILLS DEVELOPMENT Upskill today and future-proof your career. Qualifications and workshops are now available online for your convenience. We provide Covid safe learning with online interactive tutorials and classroom training with safe social distancing measures in place. Gaining your CPD points is now easier with our online workshops. We also provide customised workforce training solutions to suit your business needs. Training is offered at our Master Builders Education Centre in Norwest and our regional offices in Newcastle, Ballina, Wollongong, Port Macquarie, Gosford, Ulladulla, Orange, and Albury.

Our training programs include: • Builder and trade licence pathways • Online qualifications • On-site recognition of prior learning • Online continuing professional development • Work health and safety training

MBA NSW | Issue Two | April-June 2020

UPSKILLING COURSES TRAINING

Qualifications and Licence Pathway Programs CPC40110 Certificate IV in Building and Construction (Building)

Kitchen, Bathrooms, and Laundry Renovations licence pathway program

CPC50210 Diploma of Building and Construction (Building)

CPC30313 Certificate III Concreting

CPC30211 Certificate III in Carpentry

MSF31113 Certificate III in Cabinet Making

CPC31411 Certificate III in Construction Waterproofing

BSB51415 Diploma of Project Management

CPC30111 Certificate III in Bricklaying and Blocklaying

BSB41415 Certificate IV in Work Health and Safety

CPC30611 Certificate III in Painting and Decorating

Demolition licence pathway program

Safety Training and Industry 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

Manual Handling

Asbestos Awareness

Below Ground Waterproofing — Industry Best Practice

Health and Safety Representative

Work Safely at Heights

Test and Tag of Electrical Equipment

Health and Safety Representative (refresher)

Hebel Awareness

Introduction to Hebel Installation

Professional Development Workshops Contracts Workshop Keys to Property Development

Complying Development Introduction to Security of Payment Act

Pre-Purchase Inspection Report Writing Understanding BASIX

Effective Communication

Business Strategy & Planning

Constructive Conflict Resolution

Negotiating and Influencing Skills

Introduction to Finance and Accounting

Create your Success Profile

Financial Risk Management

Site Management

Sales and Marketing

For further course information including course fees, visit our website www.mbansw.asn.au/training

Contact the Education and Skills department on 02 8586 3588 or training@mbansw.asn.au

RTO ID: 6163

Issue Two | April-June 2020 | MBA NSW

CHOOSE

MASTER BUILDERS EDUCATION AND TRAINING ONLINE LEARNING AND RPL BUILDING QUALIFICATIONS CERTIFICATE III QUALIFICATIONS PROJECT MANAGEMENT WATERPROOFING BEST PRACTICE LICENCE PATHWAYS HEALTH AND SAFETY TRAINING PROFESSIONAL DEVELOPMENT BUSINESS AND ADMINISTRATION Go to our website for course information and availability.

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Master Builders Association of New South Wales Pty Ltd | RTO ID: 6163 | ABN 11 074 397 532

ALBURY

INDUSTRY SAFETY

APPRENTICESHIPS

Master Builders Apprenticeship Services have changed some work practices in response to Covid19 Along with the rest of the world, the way we do business within Master Builders Apprenticeship Service has changed, particularly the way we carry out site visits to ensure the safety of everyone during the Coronavirus pandemic.

he announcements on 30th March 2020 heralding the importance of the Building & Construction Industry being recognised as an essential service was fantastic news, some construction sites were restricting access to visitors to protect their workers. This posed an issue for our Field Officers to meet with our apprentices and their supervisors. Field Officers have contacted some of our Apprentices and Supervisors over the phone, or meeting off site, to discuss the safety practices and performance of the apprentices. This also allowed us to assist where possible with advice or information. We have worked closely with our Training Employers during this difficult time to ensure the safety and wellbeing of MBA apprentices, and the Training Employers

The majority of work sites have continued to allow face to face visits and Field Officers adhere with official hygiene and social distancing rules during the visit by: • Covering coughs and sneezes with an elbow or a tissue, disposing of tissues immediately • Properly washing hands often with soap and water • Using alcohol-based hand sanitisers (carried with them in their vehicles) • Maintaining social distancing behaviour of keeping 1.5m away from others • Staying home if sick • Avoiding touching the face • Not shaking hands

We have been very mindful of the mental health of our apprentices and trainees during this period and have increased our ‘contact’ with them by making check in calls on a regular basis. We have also been assisting our Training Employers manage the changes affecting the off the job training for apprentices and trainees. This portion of their apprenticeship has been a difficult process for Registered Training Organisations to facilitate within the roller coaster of restrictions. We will continue to review our processes and make further changes as required. Until then we will continue to work with all Apprentices and Training Employers to ensure sites can be kept safe and stay open.

Aboriginal Housing Office are Sponsoring Master Builders Indigenous Apprentices! The Aboriginal Housing Office (AHO) and Master Builders Apprenticeship Services have developed a project for Master Builders Apprentices and Trainees with indigenous heritage. The project is designed to help impact the commencement and completion of Aboriginal apprentices or trainees by sponsoring them. They are known as AHO Sponsored Apprentices and Trainees. How it works – The Project delivers an incentive of up to $6,500 per year to a Master Builders Training Employer who retains an AHO sponsored Apprentice or Trainee for a period of (12) months. The AHO Sponsored Apprentice or Trainee will receive incentives up to $1,000 per annum. These incentives are paid every (6) months. So Far – $32,500.00 has been credited to our host employers and $5,000.00 has been delivered to our Apprentices by way of gift cards. The Apprentices have been utilising their gift cards to purchase tools and offset the registration their vehicles. AHO Sponsored Apprentices and Trainees are still available. If you are interested in taking on an Apprentice for your business, please contact Master Builders Apprenticeship Service on (02) 8586 3533.

Issue Two | April-June 2020 | MBA NSW

APPRENTICESHIPS INCENTIVE

AKM Projects NSW

Master Builders Hot 100 Apprentices Competition Winners Announced

aster Builders Apprenticeship Service ran a 4 month Summer promotion to increase the uptake of apprentices during the summer period from 1 November 2019 to 29 February 2020. The rules of the promotion were simple – take on an MBA apprentice between 1 November 2019 and 28 February 2020, keep that apprentice for 4 consecutive weeks and you earn 1 entry into the competition. The more apprentices you take on, the more entries you earn. The prize pool was valued at approx. $14,300 and was divided into 4 prize packs Each prize pack included: • $3000 Hardware and General voucher • $250 Master Builders Education Voucher • $100 Master Builders Contract Voucher • $100 Master Builders Fence Mesh Voucher • Bluetooth speaker donated by Rave On Promotional Products • 2 x Master Builders Diaries • Master Builders Apprenticeship Services kit including back pack, 2 Hi Vis shirts, pencils, pens, sunscreen, water bottles and more!

MBA NSW | Issue Two | April-June 2020

Patrick Constructions

INCENTIVE APPRENTICESHIPS

Greenley Constructions Services

The winners are… • LPC Group – MBA Apprentice Max V • Greenley Constructions Services – MBA Apprentice David L • Patrick Constructions P/L – MBA Apprentice Conor G • AKM Projects NSW Pty Ltd – MBA Apprentice Nicholas T Congratulations to all four winners and thank you for your continued support of Master Builders Apprenticeship Services.

Thank You We would like to send a giant thank you to our sponsors for their continued support of apprentices and trainees in the building and construction industry. Hardware and General www.hg.com.au Rave On Promotional Products www.raveon.com.au Master Builders Association of NSW www.mbansw.asn.au

LPC Group

Issue Two | April-June 2020 | MBA NSW

Create raised floors on balconies, podiums and green roof tops Designed for creating raised floors in external applications, such as balconies, terraces and green roofs, Buzon’s Award Winning Pedestal system can be used with any type of concrete or stone paver, timber decking of all types and metal or fibreglass grid systems. The PB pedestal is suitable for many different types of applications and designs. They are perfect for creating both residential and commercial spaces and the design makes it easy to adjust and allows quick and sturdy installation of natural stone pavers, porcelain tiles, concrete pavers or decks made of timber or composite decking. A key benefit of this innovation is the patented slope correction device. This gives up to five percent fall compensation achieving a perfectly level floor finish, simultaneously allowing for positive water run off at structural slab level. For even more design flexibility, the system offers height adjustment from 15mm to 955mm, millimetre by millimetre if required. This allows for unsightly services to be concealed under the floor while still offering access for maintenance of the waterproofing membrane and drainage systems. The pedestals are extremely strong as they are precision-engineered

range of interchangeable spacer tabs of 2mm, 3mm, 4.5mm, 6mm, 8mm and 10mm, allow for precise gaps between pavers and provide positive drainage without any concern for ponding or flooding. Using the Buzon Pedestal replaces the use of sand and cement when laying pavers, therefore eliminating efflorescence and algae and reducing weight-bearing loads on the building structure. In addition the pedestal also improves thermal insulation and reduces sounds transmission. In commercial urban environments where space is at an ever-higher premium, a building’s roof level is potentially a rich source of usable space. Buzon say their Pedestal System can be used to maximise a roof’s potential, both hiding all manner of services and protecting roof substrates from the elements, maximising integrity and longevity. The Buzon Pedestal System is available throughout Australia.

from high strength, UV resistant, recycled polypropylene and capable of supporting loads of more than 1000kg each. At roof level, this load is evenly spread by the wide base area of each unit, making them ideal for installation on any waterproofing membrane without causing damage,

For more information contact: Pasco Construction Solutions

they can even be used directly over insulation material.

Phone: 02 9817 4441

The Buzon Pedestal System is also simple to install. Desired height is

Email: buzon@pasco.net.au

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Use with stone, concrete, timber, composite decking Use over existing concrete, brick or paved areas Allows for drainage and ventilation Reduces noise and increases insulation Can achieve a perfectly level deck on an uneven surface

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• Quick and easy installation • Provides a sustainable solution • Easy access to waterproofing membrane for maintenance

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INDUSTRY BLUEPRINT

WORK HEALTH & SAFETY

MATES HELPING MATES THE CONSTRUCTION INDUSTRY BLUEPRINT FOR BETTER MENTAL HEALTH AND SUICIDE PREVENTION 2018-2020

Issue Two | April-June 2020 | MBA NSW

WORK HEALTH & SAFETY

INDUSTRY BLUEPRINT

The current health crisis caused by the COVID-19 virus has tested Australians like never before. Anxiety around balancing work and the risk of infection is just one of the challenges facing us.

n the Building and Construction Industry, work is continuing, but builders and contractors are under increasing pressure to maintain supply and to keep their workforce as infection-free as possible. These conditions have the potential to increase the usual industry concerns as it places everyone under more significant mental strain. Already, the industry suffers from double the rate of suicide and mental ill-health than the general population with fifty-one construction workers per thousand killing themselves – six times that of the general population. Industry research recommended that a campaign designed to raise awareness about mental health and wellbeing and to diminish associated stigmas should be implemented, in combination with an industry-specific program for workers with suicidal thoughts. The result? MATES in Construction began work 15 years ago to start its programs equipping workers on how to spot a mate in trouble and for workers to be part of a peer group education and support network, with the slogan “Mates helping Mates.”

MBA NSW | Issue Two | April-June 2020

The program of integrated three-stage training provides general awareness-raising and peer support by equipping workers to actively engage with each other and with those mates who seem to be struggling with mental health problems. Trained ASIST (Applied Suicide Intervention Skills Training) workers can refer workers to programs that might assist them, such as financial or psychological counselling services (See mates.org.au). Since its inception, 57,740 workers have been trained by MATES in NSW, and the organisation has set a target of a 15 per cent reduction in the rate of suicide across Australia in the next five years. To further these efforts, MATES in Construction and Beyond Blue initiated the Australian Building and Construction Industry Mental Health Roundtable in 2016 that developed the Construction Industry Blueprint for Better Mental Health and Suicide Prevention 20182020 (The Blueprint). The roundtable group of mental health and industry representatives adopted a shared

vision of where the future industry should be positioned around mental health and suicide, with the strategy necessary to achieve changes including workplace cultures and legislation. The Blueprint is endorsed by peer mental health organisations and supported by industry associations, construction and building companies. Companies who register for the Blueprint can show a real commitment to delivering better mental health outcomes for their workers. They are also enhancing their health and safety programs by including this often-neglected problem. Current best practice for workplace mental health takes an integrated approach reflected in the five Blueprint intervention principles that seek to: 1. Promote the positive impact of work on mental health; 2. Reduce the harmful impacts of work; 3. Provide training and resources to improve mental health and suicide prevention literacy;

INDUSTRY BLUEPRINT

4. Promote early intervention and access to support and treatment; and 5. Provide support for employees to stay at or return to work when experiencing a mental health condition. Many companies already include mental health in their overall work health and safety programs, and the Blueprint principles sit very well within their policies. Companies that register for the Blueprint are invited to participate in a university study consisting of a questionnaire that is completed at the time of registration and then repeated twelve months later. The result is that companies receive a benchmark of their progress toward attaining a healthier and happier workforce. By committing to the Blueprint, companies demonstrate their commitment to this national initiative. The benefits of engagement are: • Implementation of a proactive mental health and suicide prevention program; • Commitment to the Industry Blueprint Benchmark; • Tender documents enhanced by the inclusion of the nationally recognised Blueprint; • Improved Work, Health and Safety policies;

WORK HEALTH & SAFETY

• Good policies resulting in a more engaged workforce, improve productivity and lower workers compensation costs; • The company showcased on social media platforms and the Blueprint website; • Joining the community of like-minded employers; and • Assistance provided to implement policies. may be an opportunity later for a program more designed for the needs of these employers to be developed. For further information call the National Industry Engagement Manager on 0498 022 123.

All At No Cost MATES see excellent potential for the already good work being done across the industry to be improved upon so that effective evidencebased practices aimed at addressing the risks of suicide and the mental health needs of workers become standard practice in all our workplaces.

Recognising the stress that the industry is currently under, MATES continues to provide telephone assistance to anyone expiring mental health concerns for themselves or another on the Helpline 1300 642 111.

At the moment, the Blueprint is designed for larger companies because MATES recognise that some very small contractors may not have the administrative ability to implement more than their current WHS policies. However, there

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Issue Two | April-June 2020 | MBA NSW

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INDUSTRY BEHAVIOUR CHANGES

WORK HEALTH AND SAFETY

MAJOR CHALLENGES OF BEHAVIOUR CHANGE IN THE BUILDING AND CONSTRUCTION INDUSTRY Omesh Jethwani, Government Projects & Programs Manager in-conversation with Skye Buatava, Director at Centre for Work Health and Safety on the major challenges of behaviour change in the Building and Construction Industry.

You have quite an impressive resume. You have held positions with Qantas, AAPT and SafeWork NSW. How did you come to take on the role of Director at Centre for Work Health and Safety (WHS)?

What are the main core functions of the Centre for WHS?

It is not a typical path to setting up a research centre. My work history is diverse, spans multiple industries and many dissimilar roles. I think this is what helped create something different in the Centre for WHS.

I see our role within SafeWork NSW as being the catalyst for change by gaining new insights, knowledge and a more acute understanding of the issues out there.

Immediately before taking on the role at the Centre for WHS, I was the Manager of the Engineering team at SafeWork NSW. This indepth involvement with industry and workers, while at the forefront of regulation provided an avenue for seeing a greater opportunity to use evidence to inform smarter approaches in the prevention of harm and better regulation. My experience could see the critical need for workers, business and all involved in the practices we were trying to impact to be part of that evidence base. A mix of this and, right place, right time led me to the Centre.

Our core function is research into work health and safety harm and how to prevent these. But simply, the goal is to assist in the overall mission to minimise harm in the workplace.

What this does, at least what we are striving to accomplish, is to make SafeWork NSW a better prepared regulator, through that increase the increased intelligence that comes with research and its findings which will then assist our ability to achieve that overarching goal of preventing harm. To go a step further and explain how we accomplish that, the Centre works closely with our network, partnerships with individual academics and universities, business, other government, non-government agencies like yours, and community participation that spearhead our research projects. You can have good and bad research, but

it’s that key difference through partnerships, that allows a more robust and practically focused approach to research. This delivers the invaluable insights, increased knowledge and the better understanding of issues, trends both now and into the future, changing environments and even emerging risks in WHS. An important caveat is research itself won’t automatically lead to a decrease in incidents in the workplace. It is our other core functions that proceed with the lessons from research. One of those is enabling the community too, in a sense use what we have learned to make workplaces safer. We aim to achieve this by promoting innovative harm prevention strategies, new perspectives and smarter approaches to WHS issues something only made possible by doing research. Not stopping there, we also give workers and businesses new tools, up to date knowledge and the information, again from our research and findings, to meet their obligations be that employers or employees. Our hope is NSW won’t just do what’s required under the legislation but go above and beyond. Issue Two | April-June 2020 | MBA NSW

WORK HEALTH AND SAFETY

INDUSTRY BEHAVIOUR CHANGES

The Centre Team

That’s a good segue to our next aim, better regulation.

program and looking to the future of work in a WHS context.

A key outcome for the Centre is also to provide an evidence base that enables good regulatory practices and policies. We think this is a key component in preventing harm.

One of the Centre for WHS project involves real-time crystalline silica detection. What is involved in this research?

What are some of the recent projects involving the Centre for WHS?

We are excited about the potential outcome of this project, especially considering how devastating silicosis is to the human body, not to mention the impacts an effected silicosis victim has on their family.

We have one exciting project that I am keen to spruik which illustrates how contemporary the Centre is, and that’s our Changing World of Work program. It’s a fascinating set of projects that aims to speculate, with a degree of probability, what the future work environment may look like and what effects that may have on WHS. The partners on these project are yet to be confirmed; the approach we took was to essentially to open up space for basically anyone to tender their innovative out of the box ideas to receive funding to conduct their research. We took a somewhat innovative approach in that it hasn’t been done much in government to open a crowdsourcing campaign, that encouraged private enterprise, students, early career researchers and academic institutions to pitch their ideas to partner with the Centre on this project. The campaign ad itself attracted over a month 15,000 views, 8,000 hits on our webpage and over 50 applications, in just one month, which was a success as it vindicated the crowdsourcing approach we took. After a sharp evaluation process, we have selected four successful projects and the work is underway. I am personally excited about this

MBA NSW | Issue Two | April-June 2020

It’s a novel project where we canvassed the globe to find someone who could develop a real-time respirable crystalline (RCS) detector. This world-first technology will be such a game changer. Consider the current practice whereby workplaces bring in air monitoring equipment, take samples and when the results come back from the lab, tell you if you were, past tense, exposed to harsh levels of silica dust. You can see what value a real-time detector could bring to preventing silicosis dust exposure in the workplace, as workers would get the immediate feedback required to take the necessary actions to protect themselves, much like a smoke detector provides instant feedback to the household of the presence of smoke, leading to preventative measures. Our role in this project was initially to perform the background research to identify the objective of the project to prevent silicosis. That entailed looking at past research, consulting industry on how workers work with silica-rich materials, blending that with what are the current safety practices to identify what became the best way to prevent silicosis ultimately and that was developing a real-time respirable

crystalline silica detector. In January this year, we partnered with Trolex Nome (Australia), who with their based parent company, specialises in hazardous dust monitors it for the mining and tunnelling sector. Trolex Nome’s R&D supported with funding from the Centre is developing a world-first realtime RCS detector. Going one better, we are also aiming to develop a miniaturised, wearable detector – but let’s not get ahead of ourselves. We need to ensure the feasibility on that one after the larger prototype is ready. Either way, a successful finish to this project will be a mass-produced real-time RCS detector that would be available in Australia. I am especially proud of this project, as the Centre can lay exclusive claim to be the spark to the scientific advancement in the interests of NSW and even Australian workers. In your opinion, what do you think is the best practice and implications of using Building Information Modelling (BIM) in WHS management? Best practice of using BIM in WHS management in Australia can’t be explored as the WHS modules that complement BIM, are not available to fit within our specific domestic environment. Our international counterparts in places such as the UK, Singapore and Hong Kong do, and they are reaping the benefits. The Centre is looking at WHS management using BIM, that in summary, is investigating the barriers to its use, comparisons to current practice, identifying preferred models and understanding implications in the Australian context. This should provide us with the

INDUSTRY BEHAVIOUR CHANGES evidence and path forward for enhanced WHS management through BIM, and best practise for the future. Several societal and economic trends are causing new, current and emerging challenges in the work health and safety landscape. Care to elaborate for our readers. Sure, there are many of these like the casualisation of the workforce, the advancements in digitisation and automation, changing work practices like an increase in working from home, particularly in the current COVID-19 environment, and the ageing workforce. These all present unique challenges to WHS, some of which the potential effects are not well understood or known. Therein lies the opportunity for the Centre for WHS. One example of an emerging challenge that most people would foresee is the possibility of social isolation and mental health consequences as a result of working from home. We have started advancing work in these areas through various projects, most recently through the changing work of work project mentioned earlier. What does the Centre for WHS core stream of research focus on? We have three parts to our core stream of work. Firstly, there is an alignment with NSW’s Work Health and Safety Roadmap. Here we

do research that focuses specifically on areas set out in the Roadmap—for example, high-risk harm and priority industries, like transport and construction. Our second research stream aims to identify, plus address current and emerging WHS challenges like those affecting small business. Third and last, looking at research to inform effective WHS policy in NSW. What is the relationship between the Research Foundation and the Centre for WHS? I’m very proud of the Centre’s Research Foundation. It is a group of leading academics from the nation’s top universities, and industry innovators from business, government and non-government organisations convened by the Centre to provide advice on our research and its strategic direction. They are such an eclectic mix of people with divergent experience and ideas. The Centre, and by extension, the community is the beneficiary of this world-class expertise in WHS. The Foundation meetings are great; our members challenge each other and step outside of their areas of expertise, leading to some unique insights. The Foundation members are true leaders in WHS and should be commended for taking on this role. The MBA’s very own, David Solomon is one of our inaugural Centre for WHS Research Foundation members. He brings a practical and candid perspective to this group, bridging

WORK HEALTH AND SAFETY

the gap between academia and the real world, and keeping us all in check. This is invaluable. What is the Centre for WHS aiming to achieve in the next decade? So much. The Centre for WHS is new, by research standards anyway - we launched in December 2017. What this means is that our next few years will see us ramp up the delivery of a great volume of outcomes from our early research ventures. On the flip side, being two years old, has seen us learn so much. We have embedded ourselves in the WHS landscape, and we’re dialled into the problems that need to be taken on, where we can have the greatest impact. It’s exciting to be at the Centre for WHS in this ever-changing work environment that will always pose questions to be answered. The Centre has established a great model that sees us always adapting, with an appetite to challenge the traditional ways of research, seek novel solutions to longstanding problems and invest in preparing for WHS in our future workplaces. Having found our place in the WHS research setting, it’s also time to give back, encouraging the WHS researchers of tomorrow to come forward for the benefit of future workplaces. Attracting bright new sparks and their original ideas to this discipline is integral to the sustainability of our WHS tertiary education programs.

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Issue Two | April-June 2020 | MBA NSW

WORK HEALTH AND SAFETY

INDUSTRY REASSESSMENTS

The Lost Time Injury Fallacy I

n Australia the current method for reporting injuries is through the use of a mathematical calculation contained within an Australian Standard. Commonly referred to as Lost Time Injuries (LTI’s). The Standard that most industries use is AS 1885.1:1990 and related documents (AS1885.1 SUPP 1:1991 and MP58-1991), that provide information on how to record information on injury and disease experienced in the workplace. The Standard includes the calculation methods for a business’s incidence rate, frequency rate and average lost time rate. Historically, these methods have been used to establish a Lost Time Injury Frequency Rate (LTIFR) which is broadly used term as a measure of OHS performance that is relatively easy to measure; it may be used to compare like businesses as a benchmark and often forms part of influencing the awarding of tenders and or contracts. In more recent times, recognising the limitations associated with the LTIFR (including the ability to manipulate measures), some organisations have adapted the frequency rate to establish a Medical Treatment Injury Frequency Rate (MTIFR) and/or an All Injuries Frequency Rate. Relying on outcome measures such as these has long been recognised as largely determined by luck. A major risk could be present for an extended period without causing injury, then the circumstances arise that result in a significant, and sometimes catastrophic outcome, e.g. the Longford Gas Explosion in Victoria Australia on 25 September 1998. Much has been written about the importance of process safety in response to major disasters, such as the Gulf of Mexico Blowout – e.g. see Disastrous Decisions: The Human and Organisational Causes of the Gulf of Mexico Blowout; Hopkins, Andrew, (2012), chapter 6. In these extreme scenarios it is easy to see that measuring LTIFR does not reflect a realistic measure for process safety issues in environments where imminent risk still remains, moreover elusively looming in the background. A risk of a major OHS or environmental disaster remains present, that is often falsely misrepresented or downplayed under the guise of a low ranking LTIFR. The same low LTIFR that is meant to reflect a rosy happy healthy safe workplace. This concern is just as relevant to personal health and safety. A large percentage of fatalities and lost time injuries occur in situations where work is being carried out in the same manner as it has been for extended periods of time, “this is the way we’ve always done things around here” type of approach. The fact that an organisation records a LTI after 780 days

MBA NSW | Issue Two | April-June 2020

without a lost time injury previously during that period, does not mean that their safety performance has suddenly deteriorated; and yet that is the conclusion that can be reached by organisations that place too much emphasis on LTIFR as a measure. These measures also become less relevant for measuring performance in relation to gradual onset injuries such as musculoskeletal disorders and psychological harm, as they relate to when the injury is reported, or time is lost, rather than when the harm occurred or developed Further, incidence measures are very volatile for small to medium enterprises. Assuming a 38 hour week, for 48 weeks per year: one injury for an employer with 50 workers would result in an LTIFR of approximately 10; for an employer with 20 workers, the same injury would result in an LTIFR of approximately 27; and for an employer with 10 workers that same single injury would result in LTIFR of approximately 54. It is unlikely that the employer with 10 workers is really 5 times worse at managing safety than the employer with 50 workers. These measures also become less relevant for measuring performance in relation to gradual onset injuries such as musculoskeletal disorders and psychological harm, as they relate to when the injury is reported, or time is lost, rather than when the harm occurred or developed. The control of fatalities and permanent incapacity injuries needs maximum focus upstream on design, planning and re-planning. Focus on LTIs and TRIFR distracts attention from the management of controls for fatalities and permanent incapacity critical risks. The Building and Construction Industry (BCI) need to seize the huge opportunity to reduce the number, length and complexity of Safe Work Method Statements (SWMS) for High Risk Construction Work (HRCW) and increase talking about the work to be done and the work that has just been completed. A focus on evidence of the myth of the safety pyramid advised to beware the fallacy of thinking that if we control the causes of first aid injuries we will also have controlled the causes of fatalities! A study of fatality and accident rates in the Finnish construction industry over 15 years showed that, “the fatality rate in the construction industry increased

when the accident frequency declined”. This was reflected in evidence from the American journal of industrial medicine 56:509-519 (2013) showing the states with low non-fatal injury rates have high fatality rates and vice-versa, indicating an inverse relationship between injuries

and fatalities. In the construction sector, states with high fatal injuries had low rates of non-fatal injuries. The converse was also true; states with lower fatal injuries had higher rates of these non-fatal injuries; concluding that fatality rates appear to be a more valid measure of risk. This poses the question many of us in the BCI ask why is there such a focus on lag indicators such as LTI’s? When leadership focus should encourage more conversations with people, such as, are the critical controls in place and working well? What worked well? What did not go according to plan or was difficult or frustrating? What could have gone better? What can we do to improve things around here? Other positive performance indicators that should receive more heavily weighted focus on that most BCI businesses do day in day out including planning, site preparation and readiness, consultation, toolbox talks, take five, pre-starts, onsite training, High Risk Workshops, risk assessments, risk and opportunities registers, one hundred percent compliance with onsite inductions, emergency preparedness to name a few. Safe Work Australia is unable to supply the national number of lost-time injuries involving the loss of one day/shift or more from work. Instead, Safe Work Australia publishes rates based on accepted workers’ compensation claims that involved the loss of one or more working weeks (termed serious claims). The

INDUSTRY REASSESSMENTS

claims of less than one working week.

reason for this data scope is explained below. Data used by Safe Work Australia is from the National Data Set of Compensation based Statistics (NDS). Safe Work Australia asks jurisdictions to supply data scoped broadly the same as that set out in the Australian Standard: claims that involved either a death; permanent incapacity; or a temporary incapacity for which payments have been made (including common law claims). However, there are differences between the jurisdictions in the amount of time the employee must be off work before the employer can claim against their workers’ compensation policy known as the employer excess. Employer excesses range from one day to ten days across the jurisdictions. Although an employer should inform the relevant Workcover organisation of incidents that fall within their excess period, this does not happen in all cases. This results in under-reporting of short-term work-related incidents. To improve comparability across jurisdictions, the standard Safe Work Australia publication scope is limited to serious compensation claims, thus excluding

There is a trend within the BCI to move away from the words “known as the Workplace injury and disease recording standard” to the “Measurement of Occupational Health and Safety Performance” or the use of positive performance indicators to measure effective OHS performance. The rationale that supports this new approach is that industry is tired of reactive retrospective reporting on trends where the horse has already bolted, so to speak. Industry has taken the initiative to support continual improvement where they can. The new focus will draw on contemporary research and international standards that may be relevant to establishing guidance on how to identify appropriate measures that consider how OHS is being managed, rather than the number of incidents (lost time or otherwise) being recorded. The new focus reflects the level of responsibility required for officers in relation to OH&S legislative obligations. As we all know the WHS and OHS legislation leaves no individual outside the net of the law, as everyone is a PCBU and therefore accountable and able to be prosecuted. Organisations will need to identify which of these newly focused performance measures are appropriate and relevant to the size and maturity of their organisation and their risk profile. Specific targets for improvement will need to be determined by each organisation. Therefore, these performance measures are not intended to be used for the purpose of benchmarking unless organisations share a common goal, in which case they will have selected the same criteria to be measured against. There is an appetite both nationally and internationally1 within the OHS Standards development arena to develop guidance on how to measure effective OHS performance. It is intended to provide organisations, including SME’s with guidance, on how to improve their management of health and safety which will not only reduce their operating costs but reduce their workers compensation claims of injury and ill-health which places a burden on public health costs. Work-related injuries, illnesses and deaths impose both direct costs and indirect costs on employers, workers and the community. Positive outcomes will provide workers (the workforce) with a common nationally recognised document/framework to help understand how to measure proactive OHS performance and thereby how to prevent and

WORK HEALTH AND SAFETY

manage a range of hazards and risks which can negatively impact health and wellbeing in the workplace. The intention of focusing on positive performance indicators is aimed to reduce the number of workplace injuries, incidence of disease through establishing agreed measures that assist organisations to effectively measure their OHS performance. Sound workplace health and safety standards make a significant contribution to society and communities as people remain productive, remain actively engaged in the workforce and have healthier lives. Having a clear understanding of how to measure proactive contributions to OHS improvements will help contribute in the avoidance and or reduction in frequency of having to deal with incidents, injury, ill-health or the death of a co-worker, colleague, friend, member of the community or loved one, through the increased awareness and better understanding of positive safety principals in the management of hazards and risks in the workplace. Introducing an improved standardised performance measure methodology will contribute to organisations having a greater opportunity to demonstrate their ability to carry out work in a way that is healthy and safe, without being measured purely by LTIFR which is volatile (especially for small businesses) and can be easily manipulated. Statistics already gathered by ISO reflect improved workplace safety processes and safer productivity as a result of the adoption of ISO Standards when they are implemented as intended. It goes without saying the shift in focus from industry has to be more evenly weighted from recording LTIFR’s and transferred to measuring the positive performance indicators being implemented. This will provide a more accurate representation of a Contractors effective safety management performance on site, which can only be a good thing. Author: David W Solomon Executive Officer Safety & Risk Master Builders Association NSW Both SF-001 the Standards Australia National Technical Committee responsible for Standards development in the Occupational Health and Safety Management field and ISO TC283 the International committee responsible for the same, are working towards the development of a new international Standard for Performance Evaluation/OHS Metrics. This is forecast to be a 36 month project. 1

Issue Two | April-June 2020 | MBA NSW

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INDUSTRY CHANGES

WORK HEALTH AND SAFETY

A word from the safety regulator

Traffic Control Training scheme changes commence on 1 July 2020

rom 1 July 2020, the Traffic Control Training (TCT) scheme will transfer from Roads and Maritime Services within Transport for NSW to SafeWork NSW. The scheme will fall under the Work Health and Safety Act as the Work Health and Safety Amendment (Traffic Control Work Training) Regulation 2019.

Control Training Photo Cards will continue to be recognised after 1 July 2020, until the card expires. Prior to the RMS card expiring workers will need to convert to a SafeWork NSW Traffic Control Work Training card. This can be done any time after 1 July 2020 online by simply following the link at the end of this article.

With these changes it will become mandatory for workers undertaking any work on, or adjacent to, a public road in NSW to hold the relevant:

Persons Conducting a Business or Undertaking (PCBUs) will need to ensure that workers have completed the mandatory training and hold the right card for the type of traffic control work being undertaken. New fines of $18,000 have been introduced for PCBUs who do not ensure that their workers have undertaken the appropriate training.

â&#x20AC;˘ SafeWork NSW Traffic Control Work Training (TCWT) card, or â&#x20AC;˘ RMS Traffic Control Training Photo Card. The changes mean that workers across a range of industries will now require one of the above cards. This may include workers in the retail, manufacturing or transport industries for example, as well as the more traditional road and building construction industries. Exceptions under the new Regulations include school crossing supervisors and RMS heavy vehicle inspectors. Other exceptions include emergency services personnel, defence and certain commonwealth employees under their own legislation. Roads and Maritime Services (RMS) Traffic Control Photo cards will continue to be issued up until mid-June 2020 and existing RMS Traffic

90-day period of supervised work experience extended up until 30 June 2020. This is being offered on a case by case basis for those workers that are unable to complete their final assessment or undertake an appropriate amount of supervised work experience due to COVID-19. Each individual worker will need to contact SafeWork NSW to request to have their SOC extended.

Due to the COVID-19 pandemic if a current RMS Traffic Control Photo Card holder does have their card expire between 1 January and 30 June 2020, they will be able to convert to a SafeWork NSW Traffic Control Work Training card in July. This means that people will not be required to undertake refresher training during that period. Workers currently undertaking the full Traffic Control Training course that have had their Statement of Completion issued by an Approved Training Provider can have their

Further information regarding requirements for PCBUs and workers can be found within the Regulations and from the SafeWork NSW website. For more information, visit SafeWork NSW or NSW Legislation website or call 13 10 50. SafeWork NSW Traffic Control Work Training Website - www.safework.nsw.gov.au/licencesand-registrations/licences/traffic-controllertraining Work Health and Safety Amendment (Traffic Control Work Training) Regulation 2019 - www. legislation.nsw.gov.au/regulations/2019-647.pdf Issue Two | April-June 2020 | MBA NSW

Introducing Cbus Corporate Super Cbus is the leading Industry Super Fund for the building, construction and allied industries. Due to our size, we're able to negotiate a better deal for members and offer tailored insurance to all workers in the building and construction industry from the worksite to the office. The launch of Cbus Corporate Super means executives, professionals and mostly office-based employees have access to better suited death, total and permanent disablement (TPD) and income protection cover â&#x20AC;&#x201D; with all the same great benefits as Cbus Industry Super.

Why choose Cbus Corporate Super? Strong long-term investment performance

Three flexible insurance designs to meet the needs of your employees Competitive premiums1 for death and total and permanent disablement (TPD) cover Automatic income protection, if eligible and part of the chosen insurance design

Growth (Cbus MySuper) delivered an average annual return of 9.23% over the last 35 years, as at 30 June 20192.

Simple and easy super administration with a dedicated employer relationship manager

Contact Jessica Weston or Tim Waterson for more information about Corporate Super and to request a personalised insurance quote for your business.

0407 710 970

0413 636 750

Jessica.weston@cbussuper.com.au

Tim.waterson@cbussuper.com.au

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1300 361 784

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1 Competitive Group Life Premiums (based on a comparative assessment by The Heron Partnership in August 2019). 2 Since inception to 30 June 2019, based on the crediting rate, which is the returns minus investment fees, taxes, and until 31 January 2020, the percentage-based administration fee. Excludes fees and costs that are deducted directly from membersâ&#x20AC;&#x2122; accounts. Past performance is not a reliable indicator of future performance. This information is about Cbus, you should consider your own objectives and requirements and read the Cbus Corporate Super Product Disclosure Statement and other related documents to decide whether Cbus is right for you. Call 1300 361 784 or visit cbussuper.com.au for a copy. Cbus' Trustee is United Super Pty Ltd ABN 46 006 261 623, AFSL 233792 Cbus ABN 75 493 363 262.

ROAD TO RECOVERY FINANCE

Cbus paves a role in Australia’s economic recovery

COVID-19 has had a dramatic economic impact in Australia and globally which will take many years to recover from.

hile some work in the construction industry has continued, our Cbus members have felt the economic impact through reduced work hours and projects being put on hold. It’s acknowledged the construction industry will play a leading role in Australia’s economic recovery. And it’s Cbus, the $52 billion super fund representing the construction industry, which’ll contribute to this recovery at many points along the way. The fund sees opportunities in keeping current projects going and aiming to build a decent pipeline of work over the next few years. Cbus believes its investments are likely to contribute to the creation of around 100,000 Australian jobs through this recovery. Investing in the recovery Cbus has a strong history of job creation through Cbus Property*. We will focus on more than just large-scale property projects to achieve a similar number of jobs through the recovery. The fund will play a leading role in industry and government forums, identifying ways the super industry can assist in the recovery. Through a close relationship with sponsoring organisations, such as the MBA, Cbus will use industry insights to help prioritise ‘shovel ready’ and future projects. Cbus can invest capital in a range of ways that can contribute to the creation of jobs. These include:

• Direct debt and corporate opportunities Within our Alternative Growth and Mid-risk alternative asset classes Cbus looks for direct investments in corporate opportunities with Australian listed companies and direct lending, respectively. Cbus is already a provider of debt facilities for smaller to medium tier construction projects, offering more flexible time horizons than traditional bank financing. In this space Cbus may also consider opportunities that provide funding for social and affordable housing. We support MBA’s leadership in advocating for an affordable housing stimulus package to drive new residential construction which will help sustain the wider building industry and create jobs. The fund believes there’ll be recapitalisation opportunities with distressed Australian companies; companies that will be here for the longer term. • New developments Cbus’ current exposure to greenfields development is mostly through directly owned investment in Cbus Property and Bright Energy Investments. Cbus Property recently announced an anchor tenant for its Pirie Street development that’s about to commence in Adelaide and will create 2,000 jobs. Cbus will continue to provide capital to Cbus Property for their pipeline of highly sustainable, quality commercial and residential developments across Australia. In our infrastructure portfolio, we’re investing in the construction of the 180MW Warradarge

Wind Farm in WA through Bright Energy Investments. This project will create 200 jobs. • Expansion of existing assets One of the most effective ways of increasing the value of existing property and infrastructure assets is to upgrade existing facilities or undertake further development. Many of Cbus’ infrastructure assets have future development pipelines in their business plans and the fund will participate in providing capital towards these when they’re approved as priority projects. Cbus contributes to a stronger economy Cbus members understand super is a longterm investment. The Fund builds members’ retirement savings while also creating jobs in the industry and as a result provides decent work. This all contributes to the recovery and a stronger economy. * Cbus Property Pty Ltd is a wholly-owned subsidiary of United Super Pty Ltd and has responsibility for the development and management of Cbus’ direct property investments. This information is about Cbus and figures are correct as at 5 May 2020. It does not take into account your specific needs. You should look at your own financial position, objectives and requirements before making any financial decisions. Read the relevant Cbus Product Disclosure Statement to decide if Cbus is right for you. Call 1300 361 784 or visit cbussuper.com.au for a copy. Issue Two | April-June 2020 | MBA NSW

THE ACRS DIFFERENCE ACRS Reinforcing Steel Chain of Certification Steel Maker

D-Bar/Coil D-Bar Manufacture (including Traceability)

Steel Reinforcing Cutting, Bending and Welding (including Traceability)

Casting Mill

Ancillary Products - e.g. couplers (including Traceability)

Rod Coil Manufacture

Wire Manufacture (including Traceability)

Prestress Wire & Strand Manufacture (including Traceability)

Trader, Distributor, Stockist

Mesh Manufacture (including Traceability)

Trader, Distributor, Stockist, Installer

Steel Reinforcing Cutting, Bending and Welding (including Traceability)

TRACEABILITY

ACRS Structural Steel Chain of Certification Casting Mill

Steel Maker

Strip Manufacture

Rolled Plate, Floorplate & Slab Manufacture (including Traceability)

Structural Steel Bar and Section (including Traceability)

Hollow Section Manufacture (including Traceability)

Ancillary Products - e.g. bolts (including Traceability)

Welded Section Manufacture (including Traceability)

Fabricator, Trader, Distributor, Stockist

Fabricator, Trader, Distributor, Stockist TRACEABILITY

TRACEABILITY

Construction steels manufactured to AS/NZS Standards can be rendered non-conforming by poor transformation, e.g. through such processes as cutting, bending and welding. Certification systems that only assess the mill of manufacture do not provide for validated performance to Standards of the as-delivered product. ACRS' 2-stage steel certification scheme and the new ACRS traceability scheme have been developed to give you confidence in your steel supply. For reinforcing steels, ACRS certifies BOTH the steel mill that manufactures the steel AND the steel reinforcement processor and mesh supplier, while for structural steels, ACRS certifies the steel mill that manufactures the steel, AND the welded section manufacturer, who must actively demonstrate traceability of their supply to and from the steel distributor. Talk to us TODAY about how ACRS Certification gives you confidence in your steel supply.

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ACRS - Independent, Expert Third Party Certification & Verification of Reinforcing, Prestressing and Structural Steels for Compliance with Australian and New Zealand Standards

ADVERTISING FEATURE

ACRS certification of welded steel sections to AS/NZS 5131 Exploding the myths.

ith growing use of structural steels, it is understandable that misconceptions might arise about different types of certification, the role of product certification in particular, and comparative acceptability of steel and steelwork certified by different schemes applicable to structural steelwork construction. ACRS is receiving an increasing number of inquiries about ACRS 2-stage certification system and its role in steel fabrication. Here Philip Sanders, Executive Director of ACRS, explodes four dangerous myths recently encountered in the supply of structural steels and structural welded sections misstating ACRS certification to AS/NZS 5131, and which has resulted in unverified and nonconforming steels arriving on construction sites. Myth 1: “ACRS only certifies steel mills, so I used other certification for the structural welded sections.”, or “I only use ACRS certified steels in fabricating my welded sections, so I don’t need ACRS Stage 2 certification.” Fact: ACRS certifies both steel mills and the structural welded sections made from that steel to AS/NZS 5131 and other associated standards, and both certificates are required. ACRS has issued certification for welded beams since 2012, and other fabricated welded sections (e.g. to AS/NZS 5131) since 2018, as part of a fully integrated, 2-stage system designed to ensure conforming steels are used in the as-built structure. You cannot do this by only certifying “at mill gate” (What ACRS calls “Stage 1”), as fabrication of welded sections may turn even ACRS Stage 1 certified steels into nonconforming steel. ACRS “Stage 2” certification of welded sections is therefore essential. Any break in the ACRS “chain of certification” of Stage 1 and Stage 2 certification means the welded sections cannot claim reliance on ACRS certification, and breaching supply requirements if ACRS

certification is specified. (Note: ACRS Stage 2 certification is not required in general steelwork fabrication not involving structural welding. In that case, ACRS Stage 1 (mill) certification is valid on its own, as there is no change to metallurgical properties.) Myth 2: “ACRS is not JAS-ANZ accredited to certify to AS/NZS 5131, so I used other certification to AS/NZS 5131.”, or “I’ve been given welded steel sections with other certification that’s equivalent to ACRS”. Fact: ACRS is JAS-ANZ accredited to AS/NZS 5131. Also, different certification schemes assess to different scopes and levels of rigour. You need to verify any claim of “equivalence” very carefully and specifically accept the differences. So does the engineer and customer. So, whist this myth looks like a valid technical reason which might seem persuasive at first sight – after all there are different means of certifying steel – the argument is false for two reasons. Firstly, the ACRS Scheme was accredited by JAS-ANZ to AS/ NZS 5131 in January 2018 – the first scheme to be accredited, and AS/NZS 5131 is listed on the relevant ACRS certificates - all of which show the JAS-ANZ logo. Secondly, providing any “thirdparty certification” (e.g. to ISO 9001) with supplier test certificates is not product certification, and is not independent verification of steel to any Standard. Also, whilst other schemes may certify to AS/NZS 5131, none do what ACRS does, nor does ACRS do what these schemes do, because AS/NZS 5131 is a unique standard covering the full range of structural steelwork supply from steel manufacture to delivery and erection. Just as the ACRS independent, expert, product verification scheme for welded sections does not replace broad-range, fabricator schemes, these in turn do not replace ACRS Stage 1 certification (steel mill) and ACRS Stage 2 certification (welded sections). ACRS’ consumer-oriented scheme includes in both stages, independent sample selection,

testing, reporting, and verification of sites, processes, and products by ACRS’ qualified, technical assessors, and independent review of every report by an expert panel. Myth 3: “I can’t find ACRS certified steels (or, “ACRS steel is more expensive”). So, I used other steel the supplier said meets AS/NZS Standards.” Fact: ACRS certified firms are reported to supply over 70% of structural steels supplied to AS/ NZS standards. So, ACRS certified materials are widely available. ACRS issues 200 certificates, covering almost 300 sites, in 24 countries, and over 80 steel companies. ACRS certification includes local suppliers including Infrabuild and Bluescope, and premium overseas suppliers such as Nippon Steel, Posco, and Hyundai. Additionally, ACRS certification does not increase the “cost” of steel supply; quality does. So, whilst you might find cheaper steel, will you accept steel that may be noncompliant? Myth 4: “My project uses justin-time procurement. So, even though ACRS certification is in the specification, I have to take whatever steel I can get to keep the project moving.” Fact: With ready availability of ACRS approved steels, there is no expected delay in supply. JIT procurement offers many advantages. However, JIT is not an excuse to ignore the specification. If the specification issued months ago requires ACRS certification, then looking to source steel only at very short notice is not meeting a reasonable duty of care. Putting steel procurement on the critical path and locking-in suppliers with a proven capacity to deliver ACRS certified steels is both a realistic option and a reasonable expectation – especially when, as noted above, most steel available locally is ACRS certified, and ACRS certification does not add to the cost of conforming steels. For more details about ACRS Stage 2 certification of welded sections, contact ACRS at: info@steelcertification.com Issue Two | April-June 2020 | MBA NSW

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hat I see a lot is that you have these young builders that lack the experience and skill but are getting the work because they have an established brand on Instagram. “Then you have very experienced builders, who have excellent reputations and a solid database of past clients, that is very valuable, but they’re missing out on work because they haven’t been able to establish a digital presence.” Rich says while word of mouth and referrals are still important and will get your business on people’s minds, digital marketing is absolutely necessary to deliver a business’s message to their ideal target market on a large scale. And considering it takes clients at least six months to choose a builder for their projects. That communication needs to be consistent and establish trustworthiness and authenticity. “Clients know through referrals that your work is good, but a lot of clients now look for more. What will it be like having your team on-site? Do you have connections to the local community? Do you have a specific passion or niche

building practise like sustainable design or build practices? “Social media and email are still very effective as communication channels to build that trust and brand authority with your audience, especially for builders who are playing the long game.” Rich says Facebook and email are the two most used communications channels on the planet with the highest return on investment of any marketing channel. Together they constitute more than 73 per cent of all online adults and make up 92 per cent of daily computer usage. RT Digital, Rich’s boutique agency located in Byron Bay is a full-service digital marketing agency working exclusively with builders and solar companies since 2009. The team offer industry-specific experience and implement a proven system for businesses combining brand awareness with multiple levels of consistent communication across social media, email, Facebook ads, Google ads, Google search and more. “Because we offer a full service, builders don’t have to worry about their digital marketing. We

do it all in-house for them…” On top of this team of digital marketing professionals, Rich himself offers one-on-one mentoring to help you grow your business with industry-specific advice. This combination gives you the guidance to grow along with the manpower and skills to make it a reality in the modern, online driven marketplace. “Together, we can create high-level strategies to help you increase your profitability and then my team can implement those strategies to get you results.” And Rich says now might be the best time to get those digital strategies in place. “Being a business owner means you’ve got to mitigate the ebbs and flows that come with it, even during the hardest times. “It’s a good time to step back and work on the business, rather than in the business.” If you’re interested in seeing what Rich and the RT Digital team can do for your business, you can go to this link and book a complimentary strategy session: www.rtdigital.com.au/mba-strategy Issue Two | April-June 2020 | MBA NSW

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ADVERTISING FEATURE

Sydney Metro Northwest sets benchmark with project certification

he Sydney Metro project is the first fully automated metropolitan rail system in Australia and, alongside an entirely new 66 km rail system, will provide 31 new railway stations. Stage 1 of the project, Sydney Metro Northwest, recently opened to the public, servicing the region with Australia’s highest car ownership levels per household. It constitutes 8 new stations and commuter car parks accommodating 4,000 cars. Seven of the eight stations have satisfied the criteria for Responsible Wood certification. In fact, from the outset there was a contractual requirement for Sydney Metro Northwest’s contractors to source 100% of all timber products used from either re-used, post-consumer recycled or ethically certified timber. As a response to this, Northwest Rapid Transit (NRT) developed a procurement strategy to secure the supply of only certified timber products. Described by Responsible Wood CEO Simon Dorries as “the high watermark for forest certification” the Sydney Metro Northwest project is the first in what could be a number of

construction and infrastructure projects seeking Responsible Wood project certification. Dorries continues; “It represents a pioneer project, the largest of its type in the southern hemisphere and the first to successfully achieve Responsible Wood and PEFC project certification. The construction industry should look out for many more Responsible Wood and PEFC project certification applications over the coming years.” Seven of the eight new stations have been certified by SCS Global Services under PEFC and Responsible Wood Chain of Custody standards. A key component of the station design was elements of the Cumberland Plain and the impressive station roof canopies are representative of a leaf, while the underside is lined in timber species commonly found in the in the Cumberland Plain forests (Spotted Gum or Black Butt). The timber used in the façades of the new multi-storey car parks was also certified as sustainably sourced bringing the total timber used in the project to 200,000 linear metres. The construction was undertaken by John

Holland and CPB Contractors with John Holland’s Sustainability Manager Thirukumaran Jallendran stating; “This is a milestone project for Australia and we are proud that it reflects the country’s responsible sourcing goals.” SCS Lead Auditor on the project, Nick Capobianco adds; “Third-party certification was key for this large-scale project as it enabled Sydney Metro to demonstrate the use of responsibly sourced timber with the backed guarantee of SCS’s audits.” A commitment to protecting and promoting Australia’s unique environment through standards that ensure we have a forest industry that is a world leader in environmental, social, cultural and commercial sustainability is at the core of Responsible Wood’s charter. That such a large and complex project can achieve certification should inspire others throughout the construction industry to realise that project scope and scale should not be deterrents in seeking project certification, proving without question, that project’s environmental credentials and commitment to protecting Australia’s precious forests. Issue Two | April-June 2020 | MBA NSW

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MEMBERSHIP

There has never been a more important time to be a member of the Master Builders Association

ver the past 20 years as new NSW Governments have settled into power post-election they have been fully aware of one of Master Builder highest priorities, that is professionals must shoulder their share of the legal liability of a building project outcome instead of builders wearing it alone. Last month the NSW Parliament passed the Building Practitioners Bill 2019 which requires building professionals to be registered, insured, and declare their drawings and specifications comply with the National Construction Code and the Australian Standards for Class 2 buildings. As far as Master Builders is concerned this is only the beginning. During the coronavirus pandemic we advocated strongly to the Federal Government to keep our industry open and we continue to focus on providing members relevant and up-to-date information on the impact of the virus and social restrictions on our industry. Currently we are involved in working committees formed under the NSW Building Commissioner that are shaping regulations for our industry’s future. Its important to be a member of the Master Builder not just for services and discounts but to have direct input into our reforming industry. Do not miss this opportunity to make our industry work better. Having said that, we will never underestimate how important and critical our services are to Members. Our Member Services team have contacted more than 3,600 members and other industry participants since the Covid-19 pandemic hit. We have been checking in on their personal welfare and providing much needed advice and support on issues such as:

• Social distancing and site hygiene • Travel and transport to sites • Contracts and insurance cover • JobKeeper assistance and

• Extended site opening hours We continue to develop marketing materials for our members to demonstrate they are operating with the highest standards of social distancing and hygiene. We have also continued to provide FREE access to eContracts, CPD webinars and COVID-19 site signage. We are developing a series of online webcasts and podcasts to further assist and educate members on insurance, contracts, and technical support. For members that require CPD points we have scheduled the following webinar dates and topics:

• Dincel — Wednesday 22nd July 2020 • MBA Work Health & Safety — Wednesday 12th August 2020 • MBA Insurance Services — Wednesday 26th August • Dincel — Wednesday 23rd September 2020

• Dincel — Wednesday 25th November 2020 As social restrictions are relaxed, we will no doubt be faced with new challenges. Rest assured that our team of industry specialists will continue to assist you with appropriate advice, tools and support. If you need assistance, have any queries or concerns please contact us on 02 8586 3555 or email Membership@mbansw.asn.au

Issue Two | April-June 2020 | MBA NSW

ADVERTISING FEATURE

A A NEW NEW ERA ERA FOR SHOWERS FOR SHOWERS IN IN AUSTRALIA AUSTRALIA

Thermostatic showers popular Thermostatic popular in the UK and showers many European in the UK and many 30 European countries for nearly years are countries for nearly 30 years are now available in Australia through now available in Australia through Therm-Oz Showers Pty Ltd. The Therm-Oz Showers Pty Ltd. type The Australian standard for this Australian standard for this type of shower valve (AS4032.4) is of shower (AS4032.4) now in thevalve WaterMark scopeisand now in the WaterMark scope and the AS/NZS3500.4:2018 Plumbing the AS/NZS3500.4:2018 Plumbing code. The Therm-Oz thermostatic code. The Therm-Oz thermostatic shower valve is fully WaterMark shower valve is fully WaterMark approved, Licence WMK26224 approved, WMK26224 and can beLicence legally installed, with a and can be legally installed, with a five-year guarantee. five-year guarantee. A thermostatic shower mixes A thermostatic shower mixes water to a set constant water to a seteven constant temperature, if other taps, temperature, even machines if other taps, toilets or washing are toilets washing machines are in use. or If the cold-water supply in If the cold-water supply to use. the shower were to fail, to the shower to fail, the shower willwere instantly shut the preventing shower will any instantly shut off, chance of off, preventing any chance of scalding. scalding. The shower is turned on with a The shower on handle, with a simple twist is ofturned the right simpleatwist of the handle, using quarter turnright ceramic usingvalve. a quarter turn ceramicis disc The temperature disc valve. by Therotating temperature is controlled the left controlled rotating the left handle andby limited to 38°C as a handlefeature and limited 38°C asstop a safety by antooverride safety feature by anthis override button. Depressing safetystop button. allows Depressing thisto safety button the user rotate to button allows the user to rotate to

ADVERTORIAL ADVERTORIAL a higher temperature up to 45°C a higher temperature uphandle to 45°C maximum, or rotate the in maximum, or direction rotate thefor handle in the opposite a cooler the opposite direction for a cooler shower. shower. Cool-Touch technology ensures Cool-Touch technology ensures a low surface temperature of a low surface of the valve, safetemperature to touch or hold the valve, safe to The touch or hold while showering. surface while showering. Theexceed surface20°C temperature will not temperature willat not exceed 20°C when operating 38°C. when operating at 38°C. Therm-Oz is ideal for families with Therm-Oz is ideal families young children, thefor elderly as with well young children, the elderly as well as those who require assistive as those who care while stillrequire giving assistive that desired care while styling still giving that desired European for family European styling for family bathrooms and ensuites. bathrooms and ensuites. This new product is a safer This new is a safer choice forproduct your home and more choice for your as home and water efficient, water is more not water efficient, as wateradjusting is not wasted while manually wasted while manually temperatures. There areadjusting no temperatures. There a are electrics; it is simply farno more electrics;way it is of simply a far efficient mixing hotmore and efficient way of mixing hot and cold water. cold water. The Therm-Oz thermostatic The Therm-Oz shower valve isthermostatic available with shower valve available with or without theischrome slide rail, or without the and chrome handset, hose soapslide dish.rail, handset, and soap dish. There arehose many choices of shower There arecombinations many choices of shower kits and available kits and combinations available such as overhead rain heads with such as overhead rain heads with a diverter for a handset. a diverter for a handset. For new building projects the For new building projects thermostatic shower valvethe is thermostatic is supplied withshower a fixingvalve bracket supplied with fixing bracket that allows thea positioning of thatshower allows the positioning of the on the wall, giving the shower on the wall, giving

the correct spacing for pipes. the correct spacing for pipes. These are NB-CT100 without Theserail areand NB-CT100 slide handsetwithout kit, and slide railsupplied and handset kit, and NB001 with slide rail and NB001 supplied with slide rail and handset kit. handset kit. Therm-Oz also offers a Reno Kit Therm-Oz also offers a Reno Kit that replaces any two-tap manual that replaces any two-tap manual shower over to thermostatic with shower over to with no pipework or thermostatic tiling alterations. nocan pipework or vertically tiling alterations. It be fitted or It can be fitted or for all horizontally andvertically is suitable horizontally is suitable for all tap spacingsand between 230mm tap spacings between 230mm down to 80mm apart. These are down to 80mm apart. These are RK-CT100 without slide rail and RK-CT100 slide supplied rail and handset kit,without and RK001 handset supplied with slidekit, railand andRK001 handset kit. with slide rail and handset kit. Therm-Oz Showers is a WA based Therm-Oz supplying Showers isnationally a WA based company, company, supplying nationally to the plumbing merchants of to the plumbing merchants ofis a Australia. Therm-Oz Showers Australia.ofTherm-Oz Showers is a Member the Master Plumbers Member of the MasterTechnology Plumbers Association, Assistive Association, Assistiveand Technology Suppliers Australasia was a Suppliers Australasia and was a finalist in the HIA Housing awards finalist in in thethe HIA Housing awards WA 2018 Industry and WA 2018Innovation in the Industry and Product category. Product Innovation category. This is a new era for showers This is a newwhether era for showers in Australia, you are in Australia, whether you building, reconfiguring orare building, reconfiguring renovating, please visit or the Thermrenovating, Oz website. please visit the ThermOz website. FURTHER INFORMATION: FURTHER INFORMATION: Phone 0439 196 441 Phoneinfo@therm-oz.net.au 0439 196 441 Email Email info@therm-oz.net.au Website www.therm-oz.net.au Website www.therm-oz.net.au Youtube https://youtu.be/ Youtube https://youtu.be/ JHYrdbVhO4o JHYrdbVhO4o

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MBA NSW | Issue Two | April-June 2020

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REGIONAL ROUNDUP

— CENTRAL COAST —

LOCAL MEMBER SUPPORTING WOMEN IN CONSTRUCTION – PENINSULA PROJECT

Rebecca, Lilly and Storm

ur local member Ian Munday from IRV Constructions Pty Ltd is proudly supporting Women in Construction on his Peninsula Village Project. The project is providing affordable housing with 16 disability compliant dwellings on Springwood Street, Ettalong. Together with Moov Modular, a local transportable home company, they currently have 3 women working on their site in various trades. Rebecca Glanville from Norgrove Electrical – Solar Rewards in Tumbi Umbi is a 4th Year Electrician Apprentice. I asked her what she liked about being an Electrician and this was her response. “I really like being able to do everything for myself. I’m more self reliant than I’ve ever been. As far as the type of work I do goes, I love that every day brings something different, a new problem to solve and new challenges. I really appreciate the independence and responsibility that comes along with it too. I’m still surprised when other people are surprised by what I do, I love my job. I love not being stuck in an office role (which I had before). Having a trade has made me realise my potential isn’t just limited to traditional female roles.” Storm Clive-Smith from Sneddon Brothers is a painter who enjoys working inside and outside on a variety of projects. She is learning more about the construction industry every day and is enjoying working onsite with other trades. Lilly McElligott works for IRV Constructions and will be starting her 1st Year Apprenticeship in Carpentry in 2021. Last year Lilly converted a delivery truck into a campervan so she could travel around Australia with a minimal footprint on the environment. She has been working with IRV Constructions to gain experience on a job site and to test the water to see if this is the career path she would like to take. Ian said that having women onsite in the construction industry is becoming more common and the ladies who are currently working with him are a great asset to his diverse team.

MIDCOAST TIMBER CENTRE DIVISION NIGHT

n Tuesday 3rd March, 2020, we had our last Division Night at Midcoast Timber Centres in West Gosford before COVID-19 changed our way of life. We were fortunate enough to have another great turnout from our local members. The meeting kicked off with a BBQ and refreshments on behalf of the Midcoast Team. First to present was Brad Parker from Mates in Construction who gave a very insightful talk on mental health in the Construction Industry and how to keep someone safe while connecting them to help. Brendan Byrne from Smith & Sons updated the members on the latest in Waterproofing Technology ie. Defect identification, testing & reporting. Brendan’s presentation was extremely informative and the members had plenty of questions to throw at him. Special thanks to Mark Hillyer and the team for hosting and presenting once again.

GOSFORD GOLD CUP

pecial thanks to the team from The Entertainment Grounds, home of Gosford Race Club for naming Race 5 after Master Builders Association in the Gosford Gold Cup held at Randwick on Saturday 9th May 2020.

We really appreciate the support you have shown us over the years. We hope that we will be able to hold our inaugural Race Day in October 2020. We know it has been a difficult time for the Hospitality and Racing Industry during the outbreak of COVID-19. MBA, Central Coast Division Members look forward to attending your events in the near future. Issue Two | April-June 2020 | MBA NSW

REGIONAL ROUNDUP

— ILLAWARRA / SUTHERLAND REGION —

Who would have thought...

ur last regional round up opened with a comment about the intense start to 2020 caused by severe fires. If you had told me the next edition would reference the impacts of a global pandemic, I’d have said there is no chance. Well here we are and again our industry and community have had to show some real grit in the face of some very challenging conditions. During this time our office has been busy reaching out to members to check in and offer support. Pleasingly, many members were already receiving the MBA safe site advice and implementing the best practice approaches to safe distancing. While many members felt optimistic despite the challenges. We were also able to advise members of the various stimulus support options available for businesses. Despite 2020 starting off in an unprecedented and historic way. We are proud of the local industry and the way our members have remained resilient. Now if 2020 would start to behave itself and restrictions continue to ease, I know our local committee would love to host the annual Cox Plate Race Day in October. I’m also looking forward to an occasion where we can put this all behind us.

MBA NSW | Issue Two | April-June 2020

How Illawarra construction companies are employing safe hygiene practices with COVID-19 — Illawarra Mercury April 8, 2020.

he article published in the Illawarra Mercury on April 8 was a particularly good piece for a number of reasons. Firstly, it showed that the Building and Construction industry was quick to adapt to the new restrictions. Secondly, it gave the broader public confidence that the sector was doing our part in supporting the efforts to contain the spread of the virus. Leading the way on Hygiene – Glenn Jones of Marksman Homes When the Master Builders Association launched a national campaign to promote social distancing and strict hygiene on building sites Illawarra businesses were already well advanced. Marksman Homes managing director Glenn Jones said both State and Federal governments acknowledge building work remains an essential activity and every safety measure is being taken. “Marksman Homes’ is working in line with national work, health and safety requirements and current health and safety obligations to

meet COVID-19 working arrangements”. Glenn went on to recognise the contribution that Industry Associations such as MBA made in providing up to date advice on best practices for COVID-19. Marksman homes conducted regular toolbox talks to update employees on requirements such as, social distancing, good personal hygiene and hand washing, a limit on external visitors, isolation for people displaying symptoms and more. This was a good article demonstrating that, even in the early stages, the construction industry was on the front foot when it came to limiting the spread of the virus. Well done to Glenn and the Marksman Homes team. Although, it should be said that all of the members that we have spoken to were quick to adopt the safe site practices. Full Article: www.illawarramercury.com.au/ story/6716844/how-illawarra-constructioncompanies-are-employing-safe-hygienepractices-with-covid-19/?cs=3737

REGIONAL ROUNDUP

Cronulla Division

ronulla Division enjoyed their first and only division meeting at Mid Coast Timbers in Kirrawee. Members enjoyed an interesting presentation by Snr Constable Anthony O’neill from the Traffic and Highway Patrol Command, NSW Police. The focus on the presentation was securing loads and load projection rules. Members also heard from Mark Hillyer from Mid Coast Timbers as well as Andrew Smith from Borg Manufacturing who spoke about floor installation. We look forward to when we can resume division meetings for both Cronulla and the Illawarra region.

SOME GOOD NEWS A

mongst the barrage of bad news around COVID-19 there were some positive local news pieces that recognised the good work of our local members. Sneak Peak inside Albion Park RSL Club’s new Kitchen that no one will get to see or experience for a while – Illawarra Mercury April 21, 2020.

Albion Park RSL Club has invested in a new kitchen but locals will have to wait a little while before they get to experience it. Kiama business Bluestone Building Group completed the project in late March but many won’t see it until COVID-19 restrictions are lifted. Bluestone Building Group Co-Owner, Mr Emmett said builders have needed to adapt in the last two months as new restrictions came in. There was a

big change between week one and week eight of the Albion Park RSL project but they still managed to complete the kitchen two weeks early. “We have been adopting the best practice guidelines that were put out by the Master Builders Association”. “They have been keeping their members up to date with all the government guidelines”. Michael said Bluestone used all local tradespeople to help with the project which employed up to 80 people from many different trades over the two months. Well done Michael and the team, We look forward to seeing the new kitchen in action soon. Full article: www.illawarramercury.com.au/ story/6729312/sneak-peek-inside-albion-park-rslsnew-kitchen-that-no-one-will-get-to-experienceuntil-after-covid-19/

Expo

e were fortunate enough to hold one major MBA event this year prior to the COVID 19 restrictions. The MBA and The Unanderra Hardware Man teamed up again to host the Trade Expo at Berkeley Sports Stadium. With around 200 attendees and 50 exhibitors this continues to be one of the biggest Industry Trade events for our region. There were a range of exciting displays and exhibits covering all aspects of the Building and Construction sector. Not to mention the huge discounts, exclusive offers and prize giveaways. Issue Two | April-June 2020 | MBA NSW

REGIONAL ROUNDUP

— NEWCASTLE —

Newcastle Master Builders Apprenticeship Schemes – $50,000 Scholarship –

he $50,000 Scholarship Program was generated by Newcastle Master Builders Apprenticeship Schemes to create interest with year 10 school students, and for them to think about Building and Construction Trades as a career. The (10) successful students will share their experiences with their friends along the two-year journey and hopefully inspire others to think Trades as a real career option. Newcastle Master Builders Apprenticeship Schemes decided to “put their money where their mouth is” and self-funded the $50,0000 after sitting down with the Department of Education, Career Links and local builders to formulate a plan to run this annual Scholarship. This Scholarship offered (10) passionate and ardent students of year 10 to benefit from a $5,000 each Scholarship, and to have a permanent committed Host Employer for onsite training to assist with their Construction studies throughout their schooling years 11 and 12. The initial invitation was sent to all

MBA NSW | Issue Two | April-June 2020

schools in Newcastle and the Hunter that are administrating the Construction curriculum in years 11 and 12. We believe that the advertising alone with the posters and class discussions that was done throughout all the interested schools of Newcastle and the Hunter at the initiation, and the selected student reports and anecdotes to their fellow classmates and peers will generate further interest in the Trades instead of University as their pathway. Newcastle Master Builders Apprenticeship Schemes believes it has industry and social moral obligations to generate trade interest for Newcastle and the Hunter’s businesses and youth job prospects. On completion of the Scholarship we will place all the students into a fulltime Certificate III Apprenticeship in the industry to assist in trade shortages. The Scholarship is a pilot project that we believe will carry on into the future through necessity.

REGIONAL ROUNDUP

— ORANGE —

Master Builders Member, Zauner Construction completes work on the new Ultra-Modern Bloomfield Medical Centre in Orange T

he Bloomfield Medical Centre is an exciting development for the Orange region, creating a best practice fully integrated Medical facility in the Bloomfield Health precinct. The Bloomfield Medical Centre will provide much needed medical infrastructure and support the region by accommodating new GP practitioners, Specialists and Allied Health services. The 6-storey medical tower and precinct built by Zauner Construction incorporates a two-level private hospital, GP Clinic, Pathology collection services and lab, radiology, pharmacy, gym, café, and medical training and research facility. Zauner Construction is currently constructing an 82 bed Medi Motel for patients and their families, with a retail precinct and an 800-car carpark planned for future construction. The final stages of the project will see the construction of a childcare centre and potential aged care and residential living. Zauner Construction is proud to have engaged their Orange team to build the project, and it is anticipated that the completed site will create over 500 new jobs for the Orange community!

Central West & Orana Region welcomes a new Regional Coordinator

ased out of the Orange office, Katie Kidd comes to us with 10+ years of working with small business across the region; this brings with it a wealth of knowledge about how to support your business to thrive. She will be regularly visiting Dubbo, Mudgee, Bathurst, Lithgow, Parkes and beyond, and has a plan to meet all the MBA members personally. If you have any questions or need any support, no matter how large or small, you can contact Katie on 0458 243 976. Issue Two | April-June 2020 | MBA NSW

REGIONAL ROUNDUP

â&#x20AC;&#x201D; PORT MACQUARIE â&#x20AC;&#x201D;

Oxley Division Information Night W e started the year with our first Divisional Information Night for Oxley Division held at Settlers Inn, Port Macquarie on February 19.

We received some helpful tips on managing our money from Suzie Barnaby and Chris Young from Morgans Financial. They told us what we need to consider around retirement planning, investing, and self-managed superannuation funds (SMSF). Of interest are the considerations around owning direct property within a SMSF, whether business or residential property, and the rules around developing and renovating property. Tim Morris from Regional Geotechnical Solutions explained why it is important to have trained and experience personnel do appropriate testing on clay soils. He showed us how a site classification assessment is undertaken, and he advised that inappropriate laboratory testing techniques can be unreliable and over-conservative, resulting in unnecessary expense in foundation and footing design and construction.

MBA NSW | Issue Two | April-June 2020

CPD Safety Webinar Due to Covid-19, we have been unable to offer our normal face-to-face CPD Events. To overcome this, the MBA have offered a free CPD Safety Webinar to our members. As some members do not have great internet access or perhaps are not as good

on the computer as they are on the tools, five of the Oxley Division members took the opportunity to attend the webinar in the training room at the Port Macquarie office. Of course, all social distancing rules were observed.

REGIONAL ROUNDUP

Manning Great Lakes Division Night

n March, we held our Manning Great Lakes Divisional Information night at Tallwoods Golf Club at Hallidays Point. Adam Clarke from 10 Star Building Assessments demonstrated the purpose of the NCC Volume 2, Section J Requirements. When implemented they affect the carbon emissions and provide financial benefits by improving the thermal performance of the building. Good building practises along with a NatHERS certificate allow saving on energy use, which has an immediate benefit to a homeowner. It also equates to 65% less raw material required to power a home, which reduces carbon emissions.

— PORT MACQUARIE —

We also heard from Chad Vowles from Mid Coast Council. He explained the processes that were now in place to streamline the rebuild after the bushfires. Things need to be simple and efficient and they have a dedicated team to make this happen.

North North West Division Night

t the North North West Divisional Information Night held at Tamworth TAFE in March, it was all about apprentices and trainees. Grant Bowden, Head Teacher Construction was very welcoming and explained what was happening with the education of our apprentices. Anthony Hollis from Training Services talked about the apprenticeship process and building stronger relationships between industry and schools. We have learnt that some of our members feel there are some problems with the current apprenticeship process, and we aim to have a representative from NSW Industry Training Advisory Bodies (ITABs) for an open forum in the future. Northern NSW Inland Port given identity as further land announcements are made

diversify the economy.” The N2IP is strategically located to maximise the converging benefits of Inland Rail and the availability of commercial quantities of gas. The site is also positioned in close proximity to all required critical infrastructure such as rail, water, electricity, roads and telecommunications.

f interest to our North North Western Division members, particularly in the Narrabri area, has been the announcement of the Inland Port at Narrabri. Narrabri Shire Council have taken a modern approach in the use of technology for the unveiling of the official logo that will represent the Northern NSW Inland Port (N2IP). Due to the restrictions in being able to conduct a formal launch, the logo was revealed via a Facebook video premiere. The logo was not the only reveal of the evening, with General Manager, Mr Stewart Todd taking the opportunity to make some significant N2IP land announcements. Mr Todd said “Council has recently finalised the purchase of 240 hectares of land. Due to the significant business interest since the launch of the N2IP prospectus in September 2019, Council has entered into additional options to purchase a further 134 hectares on two adjoining properties. The combined 374 hectares will make N2IP, the premier industrial and logistics hub development in North West NSW.

Mayor Cathy Redding reiterated the significance of this project, what it can provide and the strategic location being key elements that set the N2IP on a course to sustain Narrabri Shire and the greater region well into the future.

Bill Birch, Mayor Cathy Redding and Stewart Todd, Narrabri Shire Council. “The 240ha upon which the N2IP strategic business case was developed, identified that 1,000 jobs would be created. With the addition of 134ha on land options three and four, the potential job creation estimates now approach 1,500.” “The N2IP will be Council’s industrial engine room looking to advance the economy by attracting businesses to the site to grow and

Mayor Redding said, “it is a very exciting time for Narrabri Shire with endless possibilities for the various types of industries that N2IP can accommodate.” “We are excited to launch the logo that will provide the N2IP an identity. The logo will provide a visual symbol that incorporates all elements of the N2IP — featuring connections to rail, road, air, and our corporate Council identity. The N2IP is progressing rapidly and we need to ensure the corporate image is represented going forward to potential investors.” Issue Two | April-June 2020 | MBA NSW

REGIONAL ROUNDUP

— ULLADULLA —

MASSIVE NSW BUSHFIRE CLEANUP PROGRAM IS WELL UNDERWAY

hose who lost everything in the devasting bushfires on the South Coast in December and January are now able to look ahead with optimism, as the clean-up is well underway and some communities are already beginning to rebuild after their properties have been cleared. Since being appointed by the NSW Government for the important task of coordinating the NSW Bushfire cleanup program, managing contractor Laing O’Rourke has been busy getting on with the job as quickly and safely as possible.

White Card Course

Laing O’Rourke quickly established a number of local hubs across the State, and the South Coast team was happy to accept an offer from the Master Builders Association for the use of the Ulladulla Office to coordinate this massive project under the guidance of Senior Construction Manager, Jim Peach. Hundreds of properties have now been cleared on the South Coast as Laing O’Rourke works closely with local contractors to deliver the clean-up works. It is great to see so many local subcontractors and suppliers involved in the clean-up. 99% of contracts awarded to date have gone to local or regional businesses, enabling these contractors to hire local workers, providing jobs and a boost to local economies. It is also pleasing to hear stories of the crews on the ground delivering the clean-up works with the highest level of sensitivity and care for those who lost everything, including Laing O’Rourke Site Manager, Mal Butterfield, who recently made the discovery of lost service medals at a property in Conjola Park and a treasured jewellery box at another near Malua Bay. While there are certainly still challenges ahead for the bushfire recovery, the project is on track and already delivering real help to communities on the ground.

MBA NSW | Issue Two | April-June 2020

Asbestos Removal Course

ULLADULLA OFFICE ASSISTING WITH BUSHFIRE RECOVERY TRAINING

ue to the demand from those working in the local bushfire recovery clean-up, we were fortunate enough and due to MBA Training Sydney and SafeWork NSW, able to offer a 3 day Asbestos Removal Course and White Card Course with

the required social distances adhered to in the Ulladulla Training Room which was limited to eight attendees for each course. We were pleased that we were able to offer this service locally under these difficult circumstances.

REGIONAL ROUNDUP

SOUTHERN HIGHLANDS WOMEN IN CONSTRUCTION WORKSHOP

This event was held prior to government health orders

he Southern Highlands Division held their Women in Construction Workshop in Moss Vale in March where 20 ladies attended to listen to speakers from Ladies Behind the Tradies provide a very informative presentations on Compliance Matters, Specific Tax Deductions and Office Administration matters.

CANCELLATION OF SOUTHERN REGIONS BUILDING AWARDS 2020

ue to the uncertainty of the Covid-19 virus, we have made the unfortunate decision to cancel the Southern Regions Building Awards for 2020. We would like to now focus on 2021. For those who have entered for this year, if they wish will be recorded for 2021. The only change on the Form will be Special Conditions #7 will read: “All work must have been completed by the time of inspection or within 3 years of the closing date for entries” which will be Friday 9th April 2021. The Awards Gala Presentation Night will be held Saturday 17th July 2021. Entry Forms for 2021 are now available on the MBA Website so you can plan well ahead.

SOUTH COAST INSIGHT BREAKFAST

here was a great attendance to the South Coast Breakfast held in March at the Mollymook Beach Golf Club where Executive Director Brian Seidler presented on a number of topics as well as Greg Pullen, Shoalhaven City Council Economic

Development Manager who spoke on the Shoalhaven economy. Thankyou to Weathertex, Harvey Norman Commercial Nowra, Cbus Super and MBA Insurance Services for sponsoring this event. Issue Two | April-June 2020 | MBA NSW

THE WAY WE WERE

What the MBA said... December 1919

PROHIBITION

MBA NSW | Issue Two | April-June 2020

COVID-19 recently forced pubs and hotels to close, devastating the industry. A hundred years ago hotels faced a similar plight, but that time it was intentional. In a December 1919 issue of Master Builder, we wrote about the effect of Prohibition on construction. A general consensus of opinion

was that “women as a whole are enormously benefited” and that "Wives and daughters of men who formerly spent much of their earnings for intoxicants, have written to the papers describing the happiness that has entered their lives since, and expressing their gratitude”.

FINANCE

TAX TIPS Reducing your exposure

Issue Two | April-June 2020 | MBA NSW

FINANCE TAX TIPS

Important EOFY actions 2019-20 has been an unusual year. Ensure you reduce your tax exposure and minimise the risk of an audit by the regulators. This end of financial year update outlines the actions to take to do exactly that: In brief —

a summary of key changes and actions.

What’s new —

An explanation of changes that may affect your business now and in the future.

Reduce your risks and minimise your tax —

Our tips to reduce your company’s tax liability and risks.

Living with JobKeeper The JobKeeper $1,500 per fortnight per employee subsidy is paid in arrears to businesses that have experienced a downturn of 30% or more (50% for businesses with turnover of $1bn or more). A 15% threshold is used for ACNC-registered charities. The purpose of the scheme is to keep workers employed and ensure there is a viable workforce on the other side of the pandemic.

In brief — 14 July 2020 (on or before) • Single touch payroll finalisation declarations need to be made (unless 2019-20 is your first year using STP, then 31 July 2020) 28 July 2020

• Quarterly super guarantee payment due (1 April - 30 June)

28 August 2020

• Taxable payments annual reports for payments to contractors due

7 September 2020

• Last day to access the Superannuation Guarantee Amnesty for historic noncompliance

27 September 2020

• Last day of the last JobKeeper fortnight

30 September 2020

• Last day for 50% apprentice/trainee wage subsidy under COVID 19 relief

6 October 2020

• 2020-21 Federal Budget released

31 December 2020

• $150k instant asset write-off scheduled to reduce back to $1000 for small business entities • Company tax rate reduces to 26% for BREs • Cents per km rate for work-related car expenses increase to 72 cents

30 June 2021

• Accelerated depreciation - last day for assets to be installed ready for use to access the 50% accelerated depreciation deduction

1 July 2021

• Single touch payroll commences for closely held employees family members, directors etc

31 July 2020

• Single touch payroll finalisation declarations due for those using STP for the first time in 2019-20

What’s new — Company tax rate reduction From 1 July 2020, the company tax rate for base rate entities will reduce to 26%.

Base rate entities* Other corporate tax entities

2018-19 and 2019-20

2020-21

2021-22

27.5%

26%

25%

30%

*aggregated turnover less than $50m and no more than 80% of the company’s assessable income is base rate entity passive income.

MBA NSW | Issue Two | April-June 2020

At present, JobKeeper is set to continue until 27 September 2020. And for businesses, Job Keeper’s decline in turnover is a once only test. If the eligibility criteria were met at the time of applying for Job Keeper, a business can continue claiming the subsidy assuming the other eligibility criteria for them and the individual employees, are met. However, we expect continuing eligibility to the subsidy will change over time as the regulators gain a clearer insight into the impact of the pandemic. Much of this data is likely to come from the actual and estimated GST turnover that forms part of the compulsory monthly Job Keeper reporting requirements in tandem with the volume of applications to Jobseeker. That is, are the right businesses receiving JobKeeper and is the subsidy keeping workers employed? If your business did not initially qualify for JobKeeper, you can apply to start JobKeeper payments when you meet the eligibility criteria. Not every industry will experience the economic impact of the pandemic in the same way. Some will experience a greater decline in later months. One of our most asked questions about the decline in turnover test is ‘what if I got it wrong?’ Eligibility is generally based on an estimate of the negative impact of the pandemic on an individual business’s turnover. Some will experience a greater decline than estimated while others will fall short of the required 30%, 50% or 15%. There is no clawback if you got it wrong as long as you can prove the basis for your eligibility going into the scheme. For those that, in hindsight, did not meet the decline in turnover test, you need to ensure you have your paperwork ready to prove your position if the ATO requests it. You will need to show how you calculated the decline in turnover test and how you came to your assessment of your expected decline, for example, a trend of cancelled orders or trade conditions at that time. Making Job Keeper payments on time To be eligible for JobKeeper payments, staff must be paid at least $1,500 during each JobKeeper fortnight. If you pay employees

TAX TIPS

less frequently than fortnightly, the payment can be allocated between fortnights in a reasonable manner. For example, if you pay your employees on a monthly pay cycle, your employees must have received the monthly equivalent of $1,500 per fortnight. For the first two JobKeeper fortnights (30 March-12 April, 13 April-26 April), employers had an extension until 8 May to make the JobKeeper payments to eligible employees. For the remaining JobKeeper fortnights, employees will need to receive at least $1,500 by the end of each JobKeeper fortnight or the monthly equivalent of $1,500 per fortnight. Depending on your pay cycle, this may require some adjustments each month. Tax treatment of Government grants and relief During the pandemic, bushfires and floods, grants and loans have been available to help business and individuals through the crisis. The way these grants and loans are taxed will vary. If you carry on a business and the payment relates to your continuing business activities, then it is likely to be included in your assessable income for income tax purposes. This position is likely to be different where the payment was made to enable you to commence a new business or cease carrying on a business. Grants will generally be assessable income unless a law has been passed to specifically exclude the grant or loan from tax. For example, the special disaster grant for the bushfires was made non-assessable and non-exempt income. Also, amounts provided under the cash flow boost measure are non-assessable non-exempt income. When it comes to GST treatment, the key issue is whether the grant is consideration for a supply. That is, was the business expected to deliver something for the grant? The following government payments are not consideration for a supply and therefore not subject to GST or included in your GST turnover: • JobKeeper payment • Cash flow boost payment • The Early Childhood Education & Care Relief Package paid to approved child care providers • Payment of grants to an entity where the entity has no binding obligations to do anything or does not provide goods and services in return for the monies. Superannuation guarantee amnesty 7 September 2020 is the last day for employers to take advantage of the superannuation guarantee (SG) amnesty. The amnesty provides a one-off opportunity to disclose historical noncompliance with the superannuation guarantee

rules and pay outstanding superannuation guarantee charge amounts. To qualify for the amnesty, employers must disclose the outstanding SG to the Tax Commissioner. You either pay the full amount owing, or if the business cannot pay the full amount, enter into a payment plan with the ATO. If you agree to a payment plan and do not meet the payments, the amnesty will no longer apply. Keep in mind that the amnesty only applies to “voluntary” disclosures. The ATO will continue its compliance activities during the amnesty period so if they discover the underpayment first, full penalties apply. The amnesty also does not apply to amounts that have already been identified as owing or where the employer is subject to an ATO audit. Even if you do not believe that your business has an SG underpayment issue, it is worth undertaking a payroll audit to ensure that your payroll calculations are correct, and employees are being paid at a rate that is consistent with their entitlements under workplace laws and awards. If your business has engaged any contractors during the period covered by the amnesty, then the arrangements will need to be reviewed as it is common for workers to be classified as employees under the SG provisions even if the parties have agreed that the worker should be treated as a contractor. You cannot contract out of SG obligations. Utilising the $150,000 instant asset write-off The instant asset write-off enables your business to claim an upfront deduction for the full cost of depreciating assets in the year the asset was first used or installed ready for use for a taxable purpose. The COVID-19 stimulus measures temporarily increased the threshold for the instant asset write-off between 12 March 2020 and 30 June 2020 from $30,000 to $150,000, and expanded the range of businesses that can access the threshold to those with an aggregated turnover of less than $500 million. For example, if your company’s turnover is under $500 million and you purchase an eligible Instant asset write-off thresholds

asset for $140,000 (GST-exclusive) on 1 June 2020 (and install it ready for use by 30 June 2020), then a deduction of $140,000 can be claimed. If the company is subject to a tax rate of 27.5% then this should reduce the tax payable by the company for the 2020 income year by $38,500. If your business is likely to make a tax loss for the year, then the instant asset write-off is unlikely to provide a direct short-term benefit to you. However, if this measure is likely to reduce the taxable income of the business for the year then it may be possible to vary upcoming PAYG instalments to improve cash flow. If the asset is a luxury car then the deduction will be limited to the luxury car limit ($57,581 in 2019- 20). The business use percentage of the asset also needs to be taken into account in calculating the deduction. For example, if a sole trader acquires a car for $40,000 but only expects to use it 80% in the business then the immediate deduction would be $32,000. The increase to the instant asset write-off threshold in the stimulus package is the fourth increase or extension and businesses will need to be wary of what they are claiming and when: Note: On 9 June 2020, the government announced it will extend the $150,000 instant asset write-off until 31 December 2020. This proposed change is subject to the parliamentary process and is not yet law. For assets costing $150,000 or more For small businesses (aggregated turnover under $10m), assets costing $150,000 or more can often be allocated to a pool and depreciated at a rate of 15% in the first year and 30% for each year thereafter. Having said that, depending on when the asset was acquired and first used in the business the rate of deduction in the first year could be higher (see accelerated depreciation deductions below). If the closing balance of the pool, adjusted for current year depreciation deductions (i.e., these are added back), is less than $150,000 at the end of the 2020 income year, then the remaining pool balance can be written-off as well. Small Business*

1 July 2018 — 28 January 2019

$20,000

29 January 2019 — 2 April 2019 2 April 2019 — 12 March 2020 12 March 2020 — 30 June 2020

FINANCE

Medium business**

Large business***

—

$25,000

—

$30,000

—

$150,000

* aggregated turnover under $10 million **aggregated turnover under $50 million ***aggregated turnover under $500 million Issue Two | April-June 2020 | MBA NSW

FINANCE TAX TIPS

Pooling is not available for medium and large businesses, which means that the depreciation rules will apply to assets that don’t qualify for an immediate deduction. Accelerated depreciation deductions Businesses with a turnover of less than $500 million can access accelerated depreciation deductions for assets that don’t qualify for an immediate deduction for a limited period of time. This incentive is only available in relation to: • New depreciable assets • Acquired on or after 12 March 2020 that are first used or installed ready for use for a taxable purpose by 30 June 2021. It does not apply to second-hand assets or buildings and other capital works expenditure. The rules also won’t apply if the business entered into a contract to acquire the asset before 12 March 2020. Businesses are able to deduct 50% of the cost of a new asset in the first year. They can then also claim a further deduction in that year by applying the normal depreciation rules to the balance of the cost of the asset. Accelerated depreciation deductions apply from 12 March 2020 until 30 June 2021. This will bring forward deductions that would otherwise be claimed in later years. For example, let’s assume that a business purchases a new truck for $250,000 {exclusive of GST} in July 2020. In the 2020-21 tax return the business would claim an upfront deduction of $125,000. The business would also claim a further deduction for the depreciation on the balance of the cost. If the business is a small business entity and using the simplified depreciation rules, this would mean an additional deduction of $18,750 {i.e., 15% x $125,000). The total deduction in the 2020-21 tax return would be $143,750. Without the introduction of accelerated depreciation the business would have claimed a deduction of $37,500 {i.e., 15% x $250,000).

MBA NSW | Issue Two | April-June 2020

Directors at risk of personal liability for company’s GST liabilities The director penalty regime enables the ATO to recover amounts owed by a company for unpaid PAYG withholding amounts and superannuation guarantee liabilities from the directors or former directors. From 1 April 2020, the existing director penalty regime was expanded to include GST, luxury car tax and wine equalisation tax liabilities. The expansion of this regime means that company directors, regardless of whether they are passively or actively involved, are at risk of being held personally liable for a large portion of a company’s estimated liabilities.

must contribute 9.5% of an employee’s Ordinary Time Earnings (OTE) and they choose whether or not to include the salary sacrificed amounts in OTE. Under the new rules, the SG contribution is 9.5% of the employee’s ‘ordinary time earnings {OTE) base’. The OTE base will be an employee’s OTE plus any amounts sacrificed into superannuation that would have been OTE, but for the salary sacrifice arrangement. The amendments also ensure that where an employer has not fulfilled their SG obligations and the superannuation guarantee charge is imposed, the shortfall is calculated using the new OTE base.

Directors are under a general obligation to ensure the company either satisfies its tax liabilities, or recognising the company may be insolvent, goes into administration or is wound up. Resigning as a director after the event has no impact as the obligation attaches to the individual directors equally. If the Commissioner issues a penalty notice, the director becomes personally liable at that point. There is a grace period for new directors, but they can become liable for obligations that arose before they became a director.

Cents per kms change for workrelated car expenses

Strict timeframes are in place for the issuing of notices by the Commissioner and the required responses from the individual. If you receive a director penalty notice, or if you are concerned that you are at risk of receiving a notice, please contact us immediately.

Single touch payroll extension for closely held employees

1 January 2020 changes to Super Guarantee calculation From 1 January 2020, new rules came into effect to ensure that an employee’s salary sacrifice contributions cannot be used to reduce the amount of superannuation guarantee (SG) paid by the employer. Previously, some employers were paying SG on the salary less any salary sacrificed contributions of the employee. Now, employers

The rate at which work-related car expenses can be claimed using the cents per kilometre method will increase from 1 July 2020 from 68 cents to 72 cents per kilometre. Using this method a maximum of 5,000 business kilometres can be claimed per year per car.

Impending changes Many small businesses have closely held employees such as family members, directors or shareholders of a company, and beneficiaries of a trust. Small businesses with 19 or fewer employees were to start reporting these closely held employees through single touch payroll (STP) from 1 July 2020. In response to the COVID-19 pandemic however, the ATO has granted an extension until 1 July 2021. Your business can start voluntarily reporting these closely held employees, and many may have already done so to access JobKeeper payments, but it is not a requirement until 1 July 2021. All other employees should be reported through STP.

TAX TIPS

FINANCE

Reduce your risks & minimise your tax

Top tax tips 1. Declare dividends to pay any outstanding shareholder loan accounts If your company has advanced funds to a shareholder or related party, paid expenses or allowed a shareholder or other related party to use assets owned by the company, then this can be treated as a taxable dividend. The regulators expect that top up tax (if any applies) should be paid by shareholders at their marginal tax rate once they have access to these profits. This is unless a complying loan agreement is in place. If you have any shareholder loan accounts from prior years that were placed under complying loan agreements, the minimum loan repayments need to be made by 30 June 2020. It may be necessary for the company to declare dividends before 30 June 2020 to make these loan repayments. The tax rules in this area can be extraordinarily complex and can lead to some very harsh tax outcomes. It is important to talk to us as soon as possible if you think your company has made payments or advanced funds to shareholders or related parties. 2. Directors’ fees and employee bonuses Any expected directors’ fees and employee bonuses may be deductible for the 2019-20 financial year if you have ‘definitely committed’ to the payment of a quantified amount by 30 June 2020, even if the fee or bonus is paid to the employee or director after 30 June 2020. You would generally be definitely committed to the payment by year-end if the directors pass a properly authorised resolution to make the payment by year-end. The employer should also notify the employee of their entitlement to the payment or bonus before year-end. The accrued directors’ fees and bonuses need to be paid within a reasonable time period after yearend. 3. Write-off bad debts To be a bad debt, you need to have brought the income to account as assessable income and given up all attempts to recover the debt. It needs to be written off your debtors’ ledger by 30 June. If you don’t maintain a debtors’ ledger, a director’s minute confirming the write-off is a good idea. 4. Review your asset register and scrap any obsolete plant

Check to see if obsolete plant and equipment is sitting on your depreciation schedule. Rather than depreciating a small amount each year, if the plant has become obsolete, scrap it and write it off before 30 June. Small business entities can choose to pool their assets and claim one deduction for each pool. This means you only have to do one calculation for the pool rather than for each asset. 5. Bring forward repairs, consumables, trade gifts or donations To claim a deduction for the 2019-20 financial year, consider paying for any required repairs, replenishing consumable supplies, trade gifts or donations before 30 June.

• Debtors & Creditors reconciliation • Stocktake if applicable (or, if your business is a Small Business Entity, use the simplified trading stock rules mentioned) • 30 June bank statements on all relevant loan documents • Documents on new assets bought or sold, including the date you entered the contract and the date the asset was first used or installed ready for use • Payroll reconciliation • Superannuation reconciliation • Bank statements on operating accounts • Cash book (if applicable)

6. Pay June quarter employee super contributions now

• 30 June statements on any investment or operating accounts

Pay June quarter contributions this financial year if you want to claim a tax deduction in the current year. The next quarterly superannuation guarantee payment is due on 28 July 2020. However, some employers choose to make the payment early to bring forward the tax deduction instead of waiting another 12 months.

And, if they are preparing your individual income tax return:

Don’t forget yourself. Superannuation can be a great way to get tax relief and still build your personal wealth. Your personal or company sponsored contributions need to be received by the fund before 30 June to be deductible.

• For share sales or purchases, the purchase and sale contract notes

7. Realise any capital losses and reduce gains

• Rental property statements from real estate agent and details of other expenditure incurred

Neutralise the tax effect of any capital gains you have made during the year by realising any capital losses - that is, sell the asset and lock in the capital loss. These need to be genuine transactions to be effective for tax purposes. 8. Raise management fees between entities by June 30 Where management fees are charged between related entities, make sure that the charges have been raised by 30 June. Where management charges are made, make sure they are commercially reasonable and documentation is in place to support the transactions. If any transactions are undertaken with international related parties then the transfer pricing rules need to be considered and the ATO’s documentation expectations will be much greater. This is an area under increased scrutiny.

What your accountant needs from you • Accounts data file (MYOB, Quickbooks, access to Xero)

• Income statement • Tax statements of managed investment funds • Interest income from banks and building societies • Dividend statements for dividends received

• For real estate sales or purchases, the solicitor’s correspondence for the purchase and sale

• Work related expenses • Self-education expenses • Travel expenses • Donations to charities • Health insurance and rebate entitlement • Family Tax Benefits received • Commonwealth assistance notices • Medical Expenses (if these relate to disability aids, attendant care or aged care services) • IAS statements or details of PAYG Instalments paid • Details of any transactions involving cryptocurrency (e.g., Bitcoin) • Details of any income derived from participating in the sharing economy (e.g., Uber driving, rent from AirBNB, jobs completed through Airtasker etc.,) This information is provided by Figtree GROUP Phone: 02 4324 5544 Web: www.figtreegroup.com.au Issue Two | April-June 2020 | MBA NSW

DIARY DATES

Diary Dates

Due to the continuing uncertainty around social gatherings most events are now being replaced with webinars â&#x20AC;&#x201D; please go to the MB NSW website for upcoming events. www.mbansw.asn.au/events-awards

Want to promote your business in this magazine? Emily: 07 4690 9303 emily.bosman@newsregionalmedia.com.au

Brittany: 07 4690 9316 brittany.douglas@newsregionalmedia.com.au

Brittany

MBA NSW | Issue Two | April-June 2020

Emily

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We offer unique, cost effective and high quality professional aerial photography for the construction and property industry. SKYview has been inhelicopters business nearly 15 years servicing the and dronesfor as required. www.skyviewaerial.com.au Contact us: enquire@skyviewaerial.com.au | 0431 931 construction industry, with over 25910years of on site construction Contact us: enquire@skyviewaerial.com.au | 0431 931 910 www.skyviewaerial.com.au difference with SKYviewwww.skyviewaerial.com.au Aerial Photography experience. Issue Two | April-June 2020 | MBA NSW 83

QUALITY GUARANTEED When you get your reo from one of these suppliers:

Over 140,000 tonnes of steel reinforcement is supplied in our market each year from unknown origins. This steel may, or may not, conform to Australian Standards. We make it easy for you to know for sure. The Steel Reinforcement Institute of Australia requires all members to hold a current JAS-ANZ accredited 3rd party processor certificate that proves their bar and mesh conforms to AS/NZS 4671.

DONâ&#x20AC;&#x2122;T TAKE THE RISK.

GET YOUR REO FROM AN APPROVED SRIA MEMBER.

sria.com.au