MGA Independent Retailer | February 2020 by MGA Independent Businesses Australia

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FEBRUARY 2020

Bushfire Relief Roundtable Canberra PAGES 6-7 YOUR INDUSTRY NEWS PROVIDED BY MGA INDEPENDENT RETAILERS

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Contents OUR MISSION The mission of MGA Independent Retailers is to deliver the best possible industry specific business support services to independent grocery, liquor, hardware and associate store members.

CEO welcome

Bushfire Relief Roundtable - Canberra

8 Defining the status of your employees. 9 An Award or an Enterprise Agreement for your business? - Your choice. 10 MGA believes that Industrial Relations reform is vital for progress. 11 An MGA letter that has been sent to Federal members of

MGA NATIONAL SUPPORT OFFICE Suite 5, 1 Milton Parade, Malvern, Victoria, 3144 P: 03 9824 4111 • F: 03 9824 4022 admin@mga.asn.au • www.mga.asn.au Freecall: 1800 888 479

RETAILER DIRECTORS Debbie Smith (President): Queensland Grant Hinchcliffe (Vice President): Tasmania Graeme Gough: New South Wales Michael Daly: Victoria Ross Anile: Western Australia Carmel Goldsmith: New South Wales Chris dos Santos: South Australia Lincoln Wymer: Victoria Jeff Harper: Victoria

Parliament 12 Small grocer collective bargaining proposal a game-changer: Ombudsman 13 When can Casual Employees file Unfair Dismissal Claims? 14 MGA Members vindicated as “Kaufland quits Australia” 16 MGA, together with other Associations, forms “Fair Merchant Fees Alliance.” 18 State and Commonwealth Government matters affecting Members. 22 Dairy farmers protected by the ACCC 24 Australian Small Business and Family Enterprise Ombudsman – 2019 25 IGA Queensland celebrates women in business 26 Boundy’s Keilor Road Essendon closes 28 SPAR Australia launches its first SUPERSPAR on the Gold Coast 29 McGowan Government delivers payroll tax relief for WA businesses. 29 Vale Campbell King 30 Food Waste – How big is the problem?

MGA CHIEF EXECUTIVE OFFICER

32 What you should know before buying a Franchise Company

Jos de Bruin 03 9824 4111 E: jos.debruin@mga.asn.au

33 North Brisbane man fined $20,000 for eBay alcohol

CORPORATE PARTNERSHIP & MEDIA SALES

35 Perth Airport Development a risk to Small Business survival

Mark Paladino 0417 264 331 E: mark.paladino@mga.asn.au

DESIGN & PRODUCTION

41 VCGLR Welcomes New Commissioners

Cindi Damian E: cindi@mga.asn.au

FOLLOW US ONLINE www.facebook.com/ MGAIndependentRetailers www.linkedin.com/company/ mga-independent-retailers www.twitter.com/ MasterGrocers

33 Small business is critical to the economy 34 Finland - Long opening hours boost sales for big supermarkets at the demise of smaller independents 36 Successful Implementation of Training 2020, no matter how small you are!

40 Timber Framing – Renewing Our Future 41 Victorian native forest industry strategy meeting 42 MGA National Liquor Committee Update 42 VCGLR Welcomes New Commissioners 43 Dan Murphy Continues push to set up NT Store 44 Liquor Industry Gathers for MGA National Liquor Update Function 45 Extended Hours for Take-Away and Home Delivery Packaged Liquor 45 Victorian Liquor licence renewals now overdue Front Cover: Creswick IGA window display ‘Thank You CFA’. Signage created using Bushfire Appeal Donation vouchers.

MGA Corporate Partners DIAMOND

PLATINUM

GOLD

SILVER

BRONZE

ASSOCIATE

WAREHOUSE AND BRAND PARTNERS tasmanian independent retailers

CEO REPORT

CEO Welcome Welcome to MGA’s first edition of the Independent Retailer Magazine for 2020. At the time of writing, MGA members have been subject to a myriad of catastrophic events including, drought, bushfires and more recently, the Coronavirus. No one could have predicted the incredible and devastating bushfire phenomenon which commenced late in 2019 in Queensland, New South Wales and South Australia. No one could have foreseen the ferocity of the firestorms that engulfed the South East Coast of NSW, the Alps area in NSW and Victoria and the Victorian Gippsland Coastal regions. 4.5 million square kilometres of forests and grasslands have burnt out. The catastrophic outcomes of these bushfires upon local communities and businesses are palpable. The loss of lives, personal property such as homes, farmhouses and equipment, businesses, livestock, native animals and the general mental and physical health of people living in these fire affected areas is just devastating. The support provided by local, state and federal emergency services was outstanding in the face of insurmountable challenges to battle these extraordinary fires to defend people’s lives and their properties. The generosity of Australians has been inspiring. Their selfless donations, which amount to many 100’s of millions of dollars, will help and assist those communities in great need of rebuilding their lives. We thank all those people for their generous donations and consideration for their fellow Australians most in need. Healthy communities thrive by having a robust and sustainable small business community. These businesses employ many people in the communities in which they trade. For these businesses to be viable and get back to their original state of trading, they need people to return to these communities to participate in commercial activities. The immediate rejuvenation of strong tourism industry to many of these affected areas is vital. More recently heavy rains have brought relief to most if not all bushfire affected areas. It is now the time, with resilience, to rebuild all bushfire affected communities, in the short, medium and long term with the assistance of all governments and people going back to visit these regions. Members will have read about the impact of The Coronavirus upon Australian businesses, particularly tourism, owing to tourists from China being restricted from entering Australia, as a precautionary action to avoid the risk of this virus spreading in Australia. Australian companies exporting fresh foods to China have suffered a massive downturn in business owing to the Chinese population remaining indoors (self-quarantine) and not eating out. We are watching this serious impost on the Australian economy very closely.

The Australian economy is in reasonably good shape to the end of December 2019. Annual inflation climbed 0.1% to 1.8% which means it is likely the RBA will continue to hold Interest rates. Interestingly the biggest price rises in the December Quarter were tobacco (up 8.4%) and domestic holidays, travel and accommodation which rose 7.3%, food prices rose 1.3% but fruit was up 6.8%, pork rose 4.7% and beef 2.9%. The big news in February was the announcement of Kaufland departing Australia. We are ecstatic about this news as their retail model was set to destroy the family and privately run grocery, liquor and timber and hardware businesses. More information on this can be read in this issue of Independent Retailer magazine. MGA’s two big priorities in 2020 will be to address Industrial Relations reform and Waste Management. You can also read more about these two significant industry issues in this issue of IR Magazine. The Annual Wage Review is to be lodged with the FWC in March 2020. We thank all members who gave up their time to fill out the wage increase impact survey. MGA will keep members informed of our progress. Until next edition – good selling, stay safe and continue to remain positive and optimistic.

Jos de Bruin CEO MGA Independent Retailers

INDUSTRY NEWS

Bushfire Relief Roundtable Canberra On the 14th of January MGA was invited by Prime Minister Scott Morrison, Treasurer, Josh Frydenburg and Small Business Minister Michaelia Cash to attend a Small Business Bushfire Relief Round Table held in Prime Minister Scott Morrison’s Cabinet Room in Parliament House Canberra. This historic meeting included Industry Association Executives, residents and businesspeople from most fire-affected areas from around Australia. The head of the National Bushfire Recovery Agency, former Australian federal police commissioner Andrew Colvin was also present. The purpose of this roundtable meeting was for the Prime Minister and his colleagues to better understand the catastrophic effects of the bushfires on small businesses and to ask all attendees for their suggestions as to what the Federal Government can do now, in the short term and longer term periods. Aside from taking into consideration the economic and social impacts on small business owners, mental health associated with the trauma of the bushfires was also discussed at length.

in some of these Australian states – is unprecedented.

necessary to ensure vital food supplies were maintained in fire-affected areas.

These most recent devastating bushfires follow the enormous destruction caused by uncontrollable bushfires in NSW and QLD in October and November 2019.

After facing several gruelling catastrophic fire conditions, many communities have now begun to pull together and start the process of rebuilding their businesses and local communities.

Since this historic meeting, the Federal Government has committed to several recovery programs and more than $2b to assist communities with bushfire relief and assistance. Over and above the relief provided by each state government. Also, the many generous public donations channelled through organisations such as Red Cross, the Salvation Army, and so on.

MGA members across Australia, despite any personal losses, have shown enormous resilience and determination to keep their supermarkets open for their customers to supply essential goods during these challenging and distressing times.

The bushfire emergency over the past two months in SA, NSW and Victoria – and the related evacuation of large areas

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In the face of these bushfires, there have been some incredible stories of survival and of local businesses going that extra yard to ensure that their communities and emergency services are supported to carry out their inspirational efforts to defend their communities.

MGA is proud of its members and proud to be part of an industry sector that has risen to the challenge. By supporting local fire crews and volunteers as they battled large fires, for supporting local communities by doing whatever was

The areas of the NSW South Coast, Victoria’s Gippsland and Alpine regions include MGA members and businesses who were looking forward to a muchneeded revenue boost from the 2019/20 holiday season. Only to find tourist numbers were wiped out by road closures and large-scale evacuations. In the aftermath of the bushfire disaster, communities and small businesses have a list of support needs that is long and varied. For some business owners, it is about knowing what they can claim for and how to submit insurance claims. For others, it is about the reinstatement of critical electricity and telecommunications infrastructure or replenishment of stock losses.

INDUSTRY NEWS

Businesses located in towns affected by the previous fires some months ago experience the challenge of the loss of foot traffic which has significantly reduced seasonal revenues compared with the same period last year, resulting in serious and debilitating cash flow shortages. Similar issues are being experienced by businesses not directly impacted by the fire but operating in summer holiday locations that are largely deserted. Thankfully, and despite media reports to the contrary, all Australian Governments and major industry sectors have moved quickly to support local businesses in affected communities. Included is the introduction of measures designed to assist with the immediate cash flow challenges now being faced by many businesses. Australian banks, for example, have implemented comprehensive actions that include the provision of ‘repayment holidays ‘on business loans for businesses that have been affected by the disasters in recent months. The assistance provides for options to

restructure repayments over the medium term to reduce the drag on cash flow during the business recovery process. Energy and telecommunication companies have put a hold on ‘robot payment reminder’ systems and encouraged affected businesses to make contact to check whether they qualify for special assistance. The Australian Tax office (ATO) has already instigated assistance measures for all affected businesses, with these measures introduced several months ago when the first fires hit communities in south-east Queensland and northern NSW. ATO support includes providing affected businesses with an automatic 2-month deferral of payment and lodgement obligations (including BAS payments and lodgements). The ATO can also waive penalties, provide interest-free periods or set up payment plans for those impacted by natural disasters such as these fires. Financial assistance programmes have been announced by the Commonwealth Government and many State/Territory

Governments. These programmes include interest-free loans with a two-year repayment holiday so that businesses can purchase assets and equipment needed to rebuild infrastructure and inventories. All Australian governments have advised that they understand there will also be an immediate need to help businesses rebuild customer foot traffic over the medium to long term. A series of tourism driving strategies and other initiatives are currently being developed to assist with this process. Many business owners will be suffering extreme anxiety in the face of what is an insurmountable challenge — one of the major issues emphasised in communications with all Australian governments over the past many weeks.

MGA encourages all members affected by bushfires to contact MGA should members experience difficulty in securing any relief or assistance, please call MGA on 1800 888 479.

LEGAL AND IR

NATIONAL

Defining the status of your employees. When employing a new employee, it is important to classify the position to make sure that the employee understands their potential entitlements, such as their wage rates and the terms and conditions of their employment. A letter of offer setting out the role that the employee will hold in your business from the day of commencement is important that your employee knows and understands the position, including the period of probation and the terms and conditions under the employment contract.

A contract of employment should specify that the employment is initially based on a probationary period. If the employer has in excess of 15 employees, then the probationary period will be six months, and if the employer has less than 15 employees, then the period of probation will be 12 months. If you employ a full-time employee under the General Retail Industry Award (GRA), make sure you check the Classifications section in the GRA, Schedule B. The wage rates are available for each classification from MGA. You should provide an agreed roster to a permanent employee, and if you ever wish to change the roster, you must give at least seven daysâ&#x20AC;&#x2122; notice in writing. If you employ a part-time employee, you should both sign a contract which provides employment for a set number of hours per week. You can only vary these hours temporarily by agreement in writing; otherwise if you do not enter into a temporary agreement, you must pay any additional hours of work at overtime rates. A casual employee is generally given hours of work that fluctuate from week to week, although there is a tendency to provide the same hours of work regularly. A casual employee may request conversion to permanent status after 12 months if work has been made available on a regular and systematic basis for that length of time. Other factors may be considered for permanent status, such as whether the employer is likely to be able to provide the same hours in the future. An employer needs to be confident that each employee is employed in the correct position to avoid any confusion about status in the future. Employers should always remember to provide every new employee with a copy of the Fair Work Information Statement when they commence in their new position, which sets out the basic entitlements for every employee. mga.asn.au | February 2020 | Edition 1

For further advice tailored to your needs, please do not hesitate to contact

MGAâ&#x20AC;&#x2122;s Legal and Industrial Relations team on

1800 888 479 (option 1)

LEGAL AND IR

NATIONAL

An Award or an Enterprise Agreement for your business? - Your choice. Employing staff carries a massive responsibility. The livelihood of individuals cannot be left to chance, so paying all employees their correct wages and making sure they receive their basic entitlements is a fundamental rule for operating any business. Every employee deserves assurance that wages are being paid correctly and fairly, and most employers want to follow the rules. In addition to the correct award rates being paid it is vital to include the Australian National Employment Standards (NES) which provide the 10 minimum employment entitlements to every employee which are applied together with any specific award conditions. Whether employees are paid under an award, a ‘management’ contract or an enterprise agreement, conditions of employment may not be less than the national NES. The details of which are contained in the Fair Work Information Statement that must be given to every new employee1 .

If you choose to employ under an industry award, are you bound to follow the award precisely when you employ a new employee? The answer is yes, and this will largely depend on the job you have in mind, the level of expertise you need and the wage you need to pay. Having decided on the position, the qualifications of the candidate and the work to be performed, you can then establish which award you need to use. After the employment commences, the employee may request some work flexibility and by agreement that is possible, but that must be provided for in writing and can be altered also by agreement. There are various categories of employment in the awards. For example if you wanted to employ a Store Manager in a retail shop, firstly you would need to look at the classifications section in the General Retail Industry Award. Then your wages table which will tell you the minimum basic wage for such a role. Currently, a Store Manager would receive a basic wage of $995.50. But it doesn’t stop there, there is annual leave, which carries 17.5 % leave loading, plus payment of an extra 25% for working after 6 pm on a weekday and Saturday, plus 65% on Sunday, 125% on public holidays and overtime rates on Saturday,

Sunday and on Public holidays, when necessary . There are other categories for employees in the awards, and each one has a base rate of pay, but there are numerous additional penalties that must be included in the final takehome pay. An employer may want to make a “management contract” or “a salaried contract“ and all the award rates and penalties are payable plus an additional amount to cover the responsibilities that attach to the position. The payments due under the award must be factored into any salary arrangement to ensure that the employee is firstly paid correctly under the award. Once the award or salary arrangement is agreed, the base rates must be rechecked annually and monitored in the event of any changes in the wage and penalty rates. Another option is to make an Enterprise agreement specifically for your business which gives you options with respect to how you employ your staff. However, you must note that the terms of your agreement must provide that each employee is better off overall, than under the terms and conditions of the award that governs the employment. It means that if you want to leave out a clause of the award that provides a benefit

1 National Employment Information Sheet published by the Fair Work Ombudsman

to employees, you must provide an alternative benefit that ensures the employees do not suffer any losses or deprivation as a result of the change. Such benefits could be in the form of monetary compensation or alternative benefits of value which are enough to make employees better off than under the award. Also, note that if you decide to “opt-out” of the award that covers your staff, your enterprise agreement with your staff must be approved and registered with the Fair Work Commission (FWC). The employee must still receive the Fair Work Information Statement when first employed. Provided that the employer has the financial ability to meet the conditions of the “better off overall test,” then drafting an enterprise agreement that alters the contents of the basic award, cannot be done without the consent of all employees, and the final approval of the FWC. No matter what choice the employer makes regarding the most appropriate system of wages and conditions for employment of staff, there will be a cost to the employer, but adopting the correct path will bring peace of mind for the employer and protect the reputation of the business.

INDUSTRY NEWS

NATIONAL

MGA believes that Industrial Relations reform is vital for progress. The Fair Work Act was passed in 2010, and we all welcomed the beginning of a new era. We had seen the demise of WorkChoices and the reform of the award system was underway. We no longer had the Industrial Relations Commission and the Fair Work Commission was a newly created organisation.

Ten years later, we now need reform measures again, and this raises many questions. Is reform needed because the current industrial relations system is a total failure? Have our laws become too rigid and stifling? Have there been so many changes that we need to start all over again or can we just patch things together? Change is definitely needed because we need more flexibility, and the current system is too restrictive. MGA TMA members want to operate their businesses efficiently and grow, but often the system stands in their way and restricts increased productivity. Many MGA TMA members would like to make new agreements, but the agreement making process is too onerous. Some larger businesses can afford to make an agreement that complies with the ‘better off overall’ test perhaps because they can afford it. But a small business can find it impossible to comply with this onerous requirement. Why not use the ‘no disadvantage’ test that was applicable many years ago, which afforded an opportunity to introduce greater flexibility into the agreement

mga.asn.au | February 2020 | Edition 1

making system? Smaller shops and other businesses would welcome such a non-radical change. Our unfair dismissal system is time consuming, technical, inefficient and ineffective. In the majority of cases, matters resolve at the conciliation stage but only after the employer has paid compensation by way of ‘go away’ money. It may be useful to have a system where a complainant is clearly told that their claim if without merit and perhaps that requires a more litigious approach to the dismissal system. It may also be possible to strengthen the triage process where frivolous claims are eliminated before reaching conciliation. We have a payment of wages system operating under an award regime like no other in the Western World. The 122 industry awards have undergone constant review and consequential changes for over ten years. The General Retail Industry Award, which is the one most commonly used by MGA TMA Members, is just one example of an award that has had

numerous increases to penalties. Changes to its structure, additions to clauses and all in the interests of ‘award modernisation’. The result is a complicated and difficult award that can easily be misunderstood. So, do we need further industrial relations reform? In the areas of agreement-making, unfair dismissal procedures and award simplification, the answer must be in the affirmative. There is no doubt that everyone wants to achieve a positive and effective system of industrial relations but changing yet again is a challenge. However, it is one that cannot be ignored. MGA TMA intends to address these serious issues on behalf of our members, with the Attorney General, the Hon. Christian Porter and hopefully we can persuade him and the Parliament that reform is desperately needed. We believe that we have strong grounds for promoting industrial relations reform and we will aim to achieve our objectives in the best interests of our members.

INDUSTRY NEWS

NATIONAL

An MGA letter that has been sent to Federal members of Parliament Annual Wage Increases Dear Federal Member of Parliament, Independent grocers are the backbone of the community in the regions and the suburbs of Australia. They employ local people, and they put back into the local community. Personal service underpins our business model and keeps us close to our customers and communities. In short, our customers value us, and we value them. However, local grocers, liquor stores and timber & hardware businesses are facing a crisis. Operating costs keep going up while at the same time margins are getting slimmer. It is putting huge pressure on owners - who are often families having a go - and worst of all, it is threatening to take away precious local jobs. The main factor is year on year wage increases granted by the Fair Work Commission: 3% or more per year for the last three years. In our sector, this is unrealistic. These rises are nearly double the national CPI, which was 1.9% in 2019, 1.26% in 2018 and 1.92% in 2017. Practically speaking, the only way we can compensate is to cut jobs and casual shifts - a move that hurts everyone. Here are key results from a survey of MGA members conducted late last year: 91% say wage increases have had an impact on employment in their store(s) o 92% report cutting employees hours; o 67% have to cut the number of employees; and o 41% have increased casualisation of their workforce 94% of members attribute at least part of the decrease in hours to the annual wage increases by the FWC Wages Panel. o The other major cause is increases in electricity costs, stated by 63%. If another wage increase is granted, 84% say they themselves (or families) would have to work more hours per week, while 38% say they would reduce trading hours including closing on weekends. The last years of constant wage increases have taken their toll. Small operators cannot cope with much more. If they close, it means more market power to corporations like Coles and Woolworths who can absorb the added costs. As the association covering independent grocers, liquor stores and timber & hardware businesses MGA is intending to articulate a case for a wage structure that preserves local jobs, keeps our members in business and ensures there is competition in the market â&#x20AC;&#x201C; which benefits consumers and also suppliers.

Thank you, Jos de Bruin

INDUSTRY NEWS

NATIONAL

Small grocer collective bargaining proposal a game-changer: Ombudsman The Australian Small Business and Family Enterprise Ombudsman Kate Carnell said small supermarkets should be able to engage in collective bargaining to remain competitive and viable. The Ombudsman has written to the Australian Competition and Consumer Commission (ACCC) in support of a proposal by Co-Operative Supermarkets Australia, to participate in collective bargaining to help small businesses compete with the major supermarkets. “Australia’s supermarket industry is in the midst of a long-running price war, and that’s hurting small businesses,” Ms Carnell says.

“It’s nearly impossible for smaller players, with limited market share and purchasing power, to compete. “The industry is dominated by Woolworths Group (34%), Coles Group (27%) and Aldi (11%) collectively owning more than 70% of the market share. “While other multinationals such as Costco, Kaufland and Amazon may dilute market concentration, Coles and Woolworths will likely continue to drop prices to remain competitive. “My office has been assisting a number of small businesses that have been subjected to predatory tactics used by large supermarket operators to financially squeeze their small suppliers.

DISCOVER OUR QUALITY RANGE OF NUTS, DRIED FRUITS, LEGUMES, SNACKS AND MORE

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“Collective bargaining is a game-changer for small supermarkets and businesses in the grocery supply chain because it strengthens their purchasing power. “It would also contribute significantly to supply chain diversification, allowing small and medium manufacturers and growers to explore new markets while also promoting their sustainability and growth in domestic production, particularly in regional Australia. “This initiative will help keep local shopping centres viable. If the supermarket closes, the whole shopping centre is likely to go as well.”

Source: Kate Carnell ASBFE Ombudsman

LEGAL AND IR

NATIONAL

When can Casual Employees file Unfair Dismissal Claims? Casual employment has been a recent topic of debate. Earlier this year, the Full Bench of the Fair Work Commission shed light on when casual employees can file unfair dismissal claims1.

So, what can you do to reduce the risk of unfair dismissal claims by casual employees? Based on the decision, there are some precautions you should consider implementing:

The rules require that for a casual to make an unfair dismissal claim, he/she must have:

» ensure that your casual employees’ engagement is

(a) worked for a business for a minimum of six months (large businesses*) or 12 months (small businesses**);

» avoid having an ongoing reliance on the casual employees’

(b) regular and systematic employment; and

» rosters for casuals should not be prepared a month in

» • ensure that your casual contracts of employment do

The Full Bench of the Fair Work Commission determined that a casual’s employment:

» is regular if their shifts are frequent (even if their hours vary from week to week);

» is systematic if they are employed pursuant to a written

contract and subject to a monthly roster system, where availability is indicated in advance; and

» has a reasonable expectation of continuing employment

if they are given an ongoing contract, which establishes a legal framework for the allocation of work in a particular position.

irregular/varied, i.e. the frequency of each work shift, instead of the actual hours or days worked each shift; availability;

advance; and

not set the terms which shifts will be offered. You may wish to include the following paragraph:

“You are employed on a casual basis and required to work flexible hours per week. Your hours of work and frequency of each shift are subject to change and may vary from week to week. Each occasion you are engaged is a separate contract of employment.” * Large businesses = 15 or more employees; and ** Small businesses = 14 of less employees. Note: permanent employees and regular and systematic casuals are only included in the headcount of employees. 1Chandler v Bed Bath N’ Table Pty Ltd [2020] FWCFB 306, 23 January 2020.

For further advice tailored to your needs, please do not hesitate to contact

MGA’s Legal and Industrial Relations team on

1800 888 479 (option 1)

INDUSTRY NEWS

NATIONAL

MGA Members vindicated as “Kaufland quits Australia” In 2018 the independent supermarket industry watched with interest as Kaufland, one of the biggest retailers in the world, commenced its entry into Australia. The Independent supermarket operators knew that this would create more competition for them as the acquisition of store sites spread from South Australia into Victoria and Queensland. The potential threat of a new competitor created a great challenge, but MGA Independent Retailer members, who are independent supermarkets around Australia, thrive on competition and they naively believed that there would be time to prepare for the entry of a newcomer. They knew there was a proper procedure in place for Kaufland to follow, and they believed it would be followed. The acquisition of land for development by any newcomer must be done fairly and with respect for due process, but that was not the case with Kaufland. Instead, the fourth largest retail business in the world came into Australia and ran roughshod over communities, local councils and state governments, in order to quickly establish their business. Unfortunately, the people we elected to Government allowed them to do so, with no consideration at all as to the deleterious impact this was likely to have on small family and private businesses. We trust those who are elected to represent us in our local councils and state governments. We expect our lawmakers to follow the rules that are intended to maintain order and provide the fairness that we expect in our society. This was not always apparent in the recent procedure that was undertaken in the swift granting of permits to Kaufland in targeted states, and the consequential

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threat to small retailers. Decisions were made before family, and private businesses had a chance to deal with the inevitable consequences that were likely to fall on them all too quickly. They were prepared to compete, but the speed with which permits were granted meant there would be a swift, inevitable annihilation of many small businesses.

MGA members certainty and confidence has been eroded since the moment Local, and State Governments made concessions for Kaufland. There was absolutely no consideration for the economic or social welfare of existing and established family and private businesses and the local shopping centres in which they trade.

Independent small businesses are no strangers to fierce competition. Coles and Woolworths are two successful retailers who developed rapidly over the past two decades to become the most dominant duopoly in the world. They have influenced local councils around Australia to develop oversized ‘out of centre’ shopping malls, resulting in the disintegration of town centres. This resulted in many family-owned stores going out of business. This crowding out of family and privately-owned retail businesses, in the so-called best interests of competition, should never have happened.

An example of the failure to understand the effects of maintaining retail space within the city rather than outside the boundary is Toowoomba- a large regional city west of Brisbane, the gateway to the Darling Downs, a rich farming and livestock region in Queensland. A city once dominated by many family and private businesses including small, medium and large supermarkets, offering consumers diversity and choice, as well as making a significant contribution to the local ecosystem by sourcing fresh locally grown foods from farmers within the region. Profits stayed in Toowoomba, allowing the city to prosper and grow. Over the years, we have seen the demise of these family retail businesses as shopping centre developers woo councillors, seemingly ill-equipped to understand the consequence of decisions that compromise fundamental planning visions for sustainable communities. Toowoomba is now oversaturated with retail floor space and is a city dominated by the 2 “out of town” chain stores, Coles and Woolworths and more recently German retailer Aldi. There are now a handful of independently owned retail businesses in Toowoomba. Where do all the profits go to now?

As many business pundits would know, family enterprises invest in their businesses, believing that the planning and zoning rules are transparent and consistent and are unlikely to change dramatically. MGA’s members, Independent Supermarket operators, invest their time energy and resources into store refurbishment, renovations, and greenfield sites based on certainty and confidence within the planning and zoning rules. But does this ring true now? Do we still have confidence in our planning system- particularly in Victoria, South Australia and Queensland?

INDUSTRY NEWS

NATIONAL

Kaufland too was successful in proposing a 7000square metre big box on an “out of centre” rezoned industrial site on the outskirts of Toowoomba. Upon realizing they were unable to stock packaged liquor, owing to antiquated Qld liquor laws that only allow hotels to sell packaged liquor. They decided to develop a hotel on the same site, which would not only allow them to have a big liquor barn on the site but also three detached bottleshops within a 10km radius of the store. This game cannot be played by family and private businesses. Where were those fellow citizens we elected to our governments to help ensure competition is fair, and there is a level playing field to follow the rules?. Governments made decisions based upon short sighted economic benefits that were promised by Kaufland. Benefits that would help grow the State’s economy such as store development, staffing stores, warehousing facilities etc. No one worked out the down-side cost of Kaufland coming into the Australian market – no one calculated the consequential job losses and business failures in the small business sector. Why aren’t governments investing back into local shopping centres to help improve existing businesses and surrounding amenities toward driving for community walkability and sustainability.

The question needs to be asked - From where was a Kaufland store, turning over circa $50m in sales per annum, going to derive its sales? They would have stocked anything from peanut butter, tyres, electrical appliances, outdoor and indoor furniture and so the list goes on. It is laughable to think there would be a minimal impact on family and privatelyowned business! Every councillor or politician will say,” Family and private businesses are the engine room of the economy, they are the backbone of the economy!” This is all talk, not one of those who represent us walk this talk. The entrée of Kaufland into Australia was flawed from the beginning. Instead of conforming with the usual planning and development processes, Kaufland went straight to the state governments of the day. Many of the sites Kaufland targeted were zoned industrial and commercial hence they approached the state governments rather than local councils for rezoning. There have been many reasons put forward as to why Kaufland has withdrawn from Australia. It is proposed that the “big box” retail business model is something of the past and is perhaps unsustainable in a country with a low population, one that is already more than well served with an abundance of retail floor space. Australia is moving to a more

sustainable and walkable community shopping model as Australians become more conscious of sustainability, their health and convenience, not to mention the emergence of online shopping. With the Kaufland withdrawal, it is now opportune for local Councils and State Governments to take back control over their future planning vision. They should consider providing for more sustainable communities by investing back into their local shopping centres and driving initiatives to help grow family and privately owned businesses and rebuild the spirit of local communities. Family and private retail businesses are the backbones of the economy and pro-rata, owing to their emphasis to provide personal customer service, do employ more people than their larger counterparts. The independent supermarkets’ sector is resilient. While the Kaufland withdrawal is disappointing to many, it is vindication for the Independent retail sector. It is hoped that, if there is a ‘next time,’ that Kaufland is prepared to abide by a level playing field and trade in Activity Centres with a smaller footprint retail outlet and maybe then it will succeed.

Jos de Bruin, CEO MGA

INDUSTRY NEWS

NATIONAL

MGA, together with other Associations, forms “Fair Merchant Fees Alliance.” Ahead of the Reserve Bank of Australia’s review of Retail Payments Regulation, four of Australia’s leading retail associations, have united to support merchants unfairly hit by high fees for ‘tap and go’ card transactions by forming the Fairer Merchant Fees Alliance.

The Alliance comprises of Master Grocers Australia (MGA), Australian Convenience and Petroleum Marketers Association (ACAPMA), the Australian Retailers Association (ARA) and the Council of Small Business Australia (COSBOA). It aims to support Australian retailers, especially small businesses who suffer most from the excessive charges. When customers use their cards to ‘tap and go’, the transactions are often automatically routed through expensive international payment networks. The costs are either passed on to consumers as a surcharge or higher prices. Or they reduce the merchant’s bottom line. Our group is claiming that Australian retailers are charged fees to the tune of “hundreds of millions” annually, as ‘tap and go’ transactions are regularly routed through international payment networks. Small businesses are particularly hardhit by the fees, they claim, with these often passed on to consumers through added surcharges and higher prices to recoup costs.

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The Fairer Merchant Fees Alliance is calling on banks, regulators and government, to take action through the introduction of Least Cost Routing (LCR), which should be automatically enabled across payment networks – or at least given as an easy option for merchants to choose. The management and staff of AUR FoodWorks are to be congratulated for organizing a robust, informative and engaging 2019 National Conference and Expo in Hobart Tasmania! When customers use their cards to ‘tap and go’, the transactions are often automatically routed through expensive international payment networks. The costs are either passed on to consumers as a surcharge or higher prices. Or they reduce the merchant’s bottom line. Our group is claiming that Australian retailers are charged fees to the tune of “hundreds of millions” annually, as ‘tap and go’ transactions are regularly routed through international payment networks.

Small businesses are particularly hardhit by the fees, they claim, with these often passed on to consumers through added surcharges and higher prices to recoup costs. The Fairer Merchant Fees Alliance is calling on banks, regulators and government, to take action through the introduction of Least Cost Routing (LCR), which should be automatically enabled across payment networks – or at least given as an easy option for merchants to choose. This ensures that every ‘tap and go’ card payment is sent through the lowest cost network for that particular transaction. Sometimes this might be the international networks, but more often it will be local Australian network, eftpos. There is also the potential to implement LCR into online and digital payment systems for further savings. In a recent Issues Paper, the Reserve Bank of Australia said, “For most merchants, payments by eftpos can be significantly cheaper for them to accept than payments via the international schemes. None of the major banks has taken advantage of the ability to implement LCR ‘in the

INDUSTRY NEWS

background’ as a way to offer improved pricing for smaller and medium-sized merchants on simple merchant plans.” In their Review of Retail Payments Regulation issued in November last year, the RBA identified card payments to be the most popular payment method in Australia. And in 2018/19 alone, 10 billion debit and credit card payments were made, totally $678 billion. And where once cash was the go-to for small payments, they found we are increasingly putting these on the card too. And in the same period, there were $4.3 billion paid in merchant fees on card payments. MGA members are strongly encouraged to speak with their banks about “least-cost routing” and implementing it as soon as possible to save $000’s. MGA will keep members informed of any progress our Alliance is making with regard to all banks making LCR available to you, their customers.

INDUSTRY NEWS

NATIONAL

State and Commonwealth Government matters affecting Members. The 2019 year was an extremely busy year for the MGA Board, MGA National Liquor Committee and the MGA TMA Management Committee. Advocacy and member representation at state and federal government levels have certainly increased exponentially versus previous years. For MGA Members and industry friends & colleagues, this is a summary and update of advocacy matters and issues MGA is currently addressing at Commonwealth and State levels on behalf of all members.

Current Federal matters MGA is currently engaging with Ministers and Shadow Ministers about the following issues and matters; 1. Industrial Relations & Wages Reform – see below 2. Sustainable Waste Management – see below 3. Annual Wage Review – MGA to lodge a comprehensive submission comprising facts, evidence and data to persuade the FWC to minimise any wage increase effective 1st July 2020. The submission is due for lodgement March 2020 and the decision will be brought down in May 2020. 4. Illicit/Illegal Tobacco – costing our industry sector $200m in sales per annum – MGA has been engaging at Government and Regulator levels to strengthen vigilance 5. Energy costs – constantly working with the federal government to drive for cheaper energy – also working closely with ACCC (The Australian Energy Regulator) 6. Mental Health for Family and Private businesses – Seeking support from Government to better understand the plight of family and private business owners and their

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» Sustainable Industry Waste

mental health – especially in times of challenge and stress. 7. Least Cost Routing – Reduce Merchant Payment Fees – Liaising with Government, RBA, eftpos and the four banks to significantly reduce increasing Merchant Payment Fee costs 8. Unfair Contract Terms – strengthen contract terms that better protect family and private businesses – lift the contract value threshold to $1m. 9. Company Tax reductions – fast track to 25% for businesses with less than $50m sales 10. Shopper dockets - “4 cents per litre enforceable undertaking” continues – ACCC 11. Member of ACCC Small Business and Franchise Consultative Council 12. MGA is a member of the Australian Small Business and Family Enterprise Ombudsman’s (ASBFEO), (Kate Carnell), working groups

Management

Industrial Relations Reform Project – commenced Oct 2019 - vital for Family Business survival! Purpose – to gather real facts, evidence and data from members to strengthen MGA’s submissions Why? - to save members on significant wage costs and drive for greater staffing efficiencies. MGA has researched, surveyed and engaged with over 350-member store owners around Australia (500 stores) to ascertain the impacts of 3 consecutive FWC wages increases on instore employment – 3.5% in 2017, 3.3% in 2018 & 3% in 2019. These three increases (9.8%) have added $450m in wages costs to members businesses. Two objectives

1. Minimise Wage Increases Fair Work Commission – the gathering of facts, evidence and data for the Annual Wage Review – to remove wages complexity and minimise any future FWC annual wage increases

2. Reform IR Laws - Christian Porter, Federal Minister for

13. MGA is a Director of the Council of Small Business Organisations of Australia (COSBOA) MGA has two big priorities for 2020

» Industrial Relations & Wages Reform

INDUSTRY NEWS

NATIONAL Industrial Relations and the Attorney General – provide evidence of members’ barriers to employment, increase flexibility and drive for IR reform. Laws must be changed….

a. Minimise the risk of unfair dismissals b. Strengthen FWC triage process of unfair dismissal claims c. Replace the Better Off Overall Test (BOOT) with the No Disadvantage Test i. N o flexibility to create an EBA ii. C annot get around the award – it is inflexible, complex and stifling Sustainability – Waste Management Solutions, Waste to energy MGA’s Board of Directors has identified Industry Waste Management as an immediate industry priority! Supermarkets generate an enormous amount of waste….tonnes & tonnes and its costly to get rid of it!

Organic waste Vegetables and Produce - Out of code dairy products (yoghurts, dips & cheeses), meats, chicken, bakery, paper towelling, delicatessen items coffee grinds and cooking oil - sawdust in timber outlets etc.

Non-Organic waste Plastic (pallet shrink wrapping), cardboard, rubber gloves, paper towels, foam vegetable and fruit trays, plastic punnets, foil and hard plastics. The MGA Board has committed to actively leading a major industry waste management project with and for members to create a Circular Economy within their Supermarkets and Liquor stores – and we will be requesting Government assistance to do so.

An extensive research project is currently underway to analyse what the waste problem for members is now, what happens to it, and how much it costs our members to manage waste. MGA will be contacting members in early 2020 to discuss solutions that will save members significant waste management costs that they currently incur

State Issues and matters

» Planning, zoning and development

» Trading Hours issues » Container Deposit Schemes » Tobacco Laws » Debilitating Energy Costs » Payroll tax » Packaged Liquor » Small Business Advisory Councils

Planning, zoning and development matters are a major concern. MGA has been actively advocating state governments for; • Council consistency – require and follow state planning and development guidelines to give Family and Private businesses the confidence to invest in their businesses and innovate

• Stop unfair crowding out – reducing consumer choice and stifling competition

• Kaufland – 4th largest retailer in the

world - not to be given “planning and zoning FREE kicks” by state governments – an unfair practice our members could never achieve.

Trading Hours issues

» WA – Christmas and New Year -

MGA lodged a submission with WA Attorney General John Quigley - maintained the status Quo for Christmas 2019 and the New Year 2020 – no change from the previous year.

» Qld – 5 Year Trading Hours

Moratorium – commenced August 2017. 2.5 years remain for MGA and the Palaszczuk Government to seek a solution to “future proof” independents Qld Christmas Public Holiday – Late in 2019 the Queensland Government proposed to introduce a Public Holiday on Christmas Eve effective from 6.00 pm. This initiative was viewed by MGA and its members as “anti-business”, adding approximately $900,000 in wages costs just to stay open till 9.00 pm.

oM GA has engaged with the Minister for Industrial Relations Hon Grace Grace and voiced our grave concerns on behalf of members. This proposal will either cause MGA members to close their businesses early or significantly cut back staff hours resulting in further driving underemployment in Queensland. They simply didn’t want to listen – a totally SDA driven initiative the Labor Government had to comply with! » SA – Christmas and New Year Trading Hours were not changed from last year.

Container Deposit Schemes NSW

• Launched December 2017 – very

messy system – minimal consultation

• This is a For-Profit Model – costing

consumers more than any other state

• NSW / Vic Border issues – MGA

was able to secure temporary relief support for NSW members along the Border 2 years ago– 37 outlets. This will continue for another 6 months.

Victoria

• A CDS will be introduced into Victoria

in 2023. MGA will be engaging with the State Government to ensure there are

INDUSTRY NEWS

no Red Tape or Cost Burdens to their NATIONAL businesses as a consequence.

• Until 2023, the Vic – NSW cross

border issues caused to NSW retailers will have to be continued to be managed and supported by the NSW Government

• MGA is a member of the WA CDS taskforce

• The WA CDS will be launched in June 2020

• MGA will endeavour to maximise

opportunities and minimise costs for members

QLD

• Launched November 2018 - big

improvement and less costly than NSW

• This is a Not for Profit model • MGA was a member of the Qld CDS

Taskforce - Seems to be working well with little cost or red tape impact on members.

Tobacco Laws o E Vapourisers - MGA has been advocating for uniform and consistent federal and state government policies concerning E Vapourisers. MGA members must be able to stock, market and sell E Vapourisers as a tobacco use cessation tool rather than consumers bringing them into Australia in an unregulated fashion online from overseas!

• Together with other Industry Associations MGA has formed a Vaping Industry Association – AVIA – Australian Vaping Industry Association o MGA’s Tobacco Training module – free for members – has been endorsed by state governments and territories. o NSW - MGA is a member of the NSW Tobacco Control Committee – no imminent changes. o Victoria – MGA is a member of the consultation committee presiding over the Tobacco Control Act – no imminent changes o Qld – MGA engages with the Department of Health (Minister for

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Health Dr Steven Miles) – there are no imminent changes – particularly nothing new in regard to tobacco licences o WA – MGA advocated against the recent law changes concerning the downsizing of instore Tobacco Product Sign Boards from A3 size to A4. Highly impractical. The Minister has advised that MGA lodge a submission with the 2020 Tobacco Control Act review, to build a case, with evidence, against this draconian and ill-thought of initiative causing MGA members much unnecessary grief with customers. o TAS - A bill to ban the sale of cigarettes to Tasmanians aged under 21 is still “on the table”. Independent member for Windermere, Ivan Dean, was expected to introduce the legislation - a first in Australia to the Upper House in August but withdrawn due to a lack of support. MGA and many others lodged submissions “against this silly” Bill. Debilitating Energy Costs – being addressed with the relevant State Ministers and their departments at every opportunity. Each state has a different system and ownership structure for electricity generation and electricity retailing, adding complexity, confusion and costs. Payroll tax – This is a dumb and a debilitating tax on employment – MGA will continue to advocate strongly to reduce the % and increase payroll threshold (also increase by CPI every year). The NSW Government increased the payroll threshold from $850k to $900k, and the Vic Government reduced country and regional payroll tax to 1.22% (25% of Melb rate of 4.85%).

Packaged Liquor o MGA has a National Liquor Committee – comprising members and industry stakeholders representing all national and state brands - see committee members below o State issues include; digital and online disruption, website shop fronts, outdoor signage close to schools, alcohol-related signage

on public transport, National RSA training, instore signage and continual Liquor Control Act reviews. o NSW – Digital Licenses – after a thorough trial period – Digital Licenses are now acceptable for proof of age purposes • MGA has a strong relationship with the NSW OLGR o ACT – Peter Kakarzis is a member of MGA’s National Liquor Committee. Peter represents MGA Liquor and ACT members on the ACT Liquor Control Advisory Board o VICTORIA – MGA is a member of the Statutory Liquor Control Advisory Council (LCAC) • MGA and the MGA Liquor committee has a very strong working relationship with the Minister, Marlene Kairouz, her Department and VCGLR • A submission was lodged on 20th December 2019 making comments regarding proposed Liquor Act amendments concerning online sales of packaged liquor and RSA o WA – MGA has formed an Alliance with LSA WA, which represents independent packaged liquor stores. An MOU has been signed. Many MGA members have packaged liquor departments next to their supermarkets. • Dan Murphy Como WA – ongoing support provided to local groups to oppose the development of a 1600 square metre Dan Murphy store in the Perth suburb of Como. o NT – Continuous liaison with the NT Government concerning, capping liquor sales to 25% of a supermarket’s total sales, the discriminatory regulations that disallow supermarkets from externally advertising liquor and • strongly oppose the building of a Dan Murphy store in Darwin which will crowd out current independent liquor retailers and eliminate packaged liquor competition in this city. o SA – After eight long years of MGA and local member lobbying, SA supermarkets, as from 18th November 2019, are allowed to stock, market and sell packaged liquor. MGA is currently working with a few retailers to create a model of how it is

INDUSTRY NEWS to be done.

NATIONAL • The cost of a packaged liquor

licence is higher than anticipated at $6k o Queensland - Entrepreneurial Pipeline Project – locally produced Packaged Liquor for Independent supermarkets. • The MGAQ Committee has been liaising and working with the Qld Government for almost three years to drive for locally produced Queensland wines, beers and spirits to be stocked by MGA members as a part of a whole of meal solution and to help boost Qld made products and increase employment….similar to Tasmanian model • All Qld Government Ministers and key regulators have supported this initiative that is sponsored by Small Business Minister Shannon Fentiman. • In the 6 – 8 weeks leading up to Christmas last year there has been an extensive consultation process. Conducted by Small Business Qld, including all community, alcohol industry, health and government departments to enable this initiative to go ahead – Legislation will have to be changed! • The Qld Small Business Executive Team have been liaising closely with MGAQ to ascertain a number of definitions for our members’ businesses. To ensure distribution of local packaged liquor remains exclusively with MGA members and local food retailers – the stand out definition has been “a supermarket or food outlet that does not have its own warehouse” thus excluding the chains and big business. • On the 20th December 2019, at a teleconference meeting between Debbie Smith, Jos de Bruin and Grant Stidiford Director. The Policy Setting & Strategic Policy with the Department of Employment, Small Business and Training, we were advised that the consultation period has not delivered the results we were all looking for. There was very little support from many Qld agencies and associations to allow local supermarkets to stock locally produced wines, beers and spirits.

• There was a great fear from health agencies that alcohol would become even more “normalised” and hence a health and safety risk if stocked in independent supermarkets. The Wine Industry Association had a fear that our sector would engage in discounting and subsequently damage their brands????? And generally, it was felt that independent supermarkets stocking locally produced alcoholic beverages would not add to a “whole of meal” solution and there were concerns that this initiative would be exclusionary and hence anti-competitive. •C learly, the messaging we expected the Qld Small Business Department to deliver during the consultation process to get this initiative over the line was not delivered as we would have expected. •G rant Stidiford’s feedback to MGA is that there will be some amendments made to assist local wine, beer and distiller producers. But owing to the generally negative feedback received from the consultation process, nothing would be done to accommodate MGA’s members to stock locally produced alcoholic products. • This is disappointing, and the MGAQ Committee will be endeavouring to meet with the relevant Ministers, regulators and industry stakeholders in February 2020.

SMALL BUSINESS ADVISORY COUNCILS o Queensland – Debbie Smith, FoodWorks Toowoomba is a member of the statutory Small, Business Advisory Council o NSW – MGA is a member of the Small Business Commissioner Small Business Round Table. o Victoria – Tony Ingpen, Supa IGA Mount Evelyn is a member of the statutory Small, Business Advisory Council

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NATIONAL

Dairy farmers protected by the ACCC Coles to pay farmers $5.25m after failing to pass on 10¢ drought levy In December 2019 Australia’s competition regulator lashed out at supermarket giant Coles, which is set to pay farmers $5.25 million after allegedly failing to pass on a drought levy it raised on fresh milk. ACCC Chair Rod Sims said Coles had failed to “pass the pub test” after telling customers it would hike the price of its own-brand milk by 10¢ a litre to help drought-stricken farmers and then not passing on all the money raised. The consumer watchdog says Coles failed to pass on its 10 cent drought levy on milk to dairy farmers. In March, Coles said it would support the supplier of its own-brand milk, dairy cooperative Norco, by increasing milk prices and passing the extra money straight on to dairy farmers and milk processors. Yet the ACCC claims the supermarket chain wasn’t paying Norco the amount it said it would in its marketing materials, which Mr Sims labelled an “egregious breach” of consumer law. The consumer watchdog claims that on March 1, Coles struck a deal with Norco to raise its milk prices by 6.5¢ a litre from April 1. But throughout March, the retailer came under pressure to up the price of milk by 10¢ and pass the money on to farmers, which Coles announced on March 19 it would do. For the two weeks following the announcement, Coles provided Norco with the full 10¢ benefit. However, on April 1, when the previously agreed 6.5¢ increase came into effect, the ACCC claims Coles clipped the payout to farmers to 3.5¢ a litre. mga.asn.au | February 2020 | Edition 1

That is not within the letter or the spirit of what people would have thought was going to happen. While the 6.5¢ and 3.5¢ increase still amounted to an additional 10¢ a litre, Mr Sims said this was not what customers would have expected from the supermarket giant. “That is not all within either the letter or the spirit of what people would have thought was going to happen,” he said. Coles will pay farmers $5.25 million for failing to pass on a 10¢-a-litre milk levy. “The previous increase was pre-agreed. It had nothing to do with putting 10¢ a litre on the price of milk.” A sample of the representations made by Coles regarding its 10 cent levy. The regulator became aware of the issue after hearing radio interviews with disgruntled farmers and said it had been “fully prepared” to take Coles to court over the action. Instead, Coles proposed it would pay Norco an additional 7¢ a litre for its twoand three-litre bottles of own-brand milk, an agreement Mr Sims concluded was a better outcome for farmers. In a statement, a Coles spokesperson said while the company respected the regulatory process, it disagreed with the ACCC’s “interpretation of these issues” and offered to pay Norco to avoid an “unnecessary dispute”.

ACCC Chair Rod Sims

Coles will pay a lump sum to Norco within one week, which represents the unpaid levy from April 1 to December 1, and has also pledged to pass on the additional 7¢ a litre to Norco farmers from December 1 through to at least June 30, 2020. This will result in a total payment to Norco of $5.25 million, a result the co-operative’s chief executive, Michael Hampson, said was a “fantastic outcome”. “We’re appreciative that Coles and the ACCC have decided to an arrangement to make sure that money didn’t get held up through the court process,” he said. “Any money we can get to our dairy farmers in this country is money well deserved.” Mr Sims said the watchdog was not aware of any issues with drought levies involving any other farmers or Coles’ rivals, such as Woolworths or Aldi, but he’d “like to hear about it” if it was happening. “At the moment, we’ve got no reason to think [the levy] hasn’t been passed on,” he said. Source. Domenic Powell

CORPORATE PARTNER ADVERTISING

NATIONAL

The Summer of Tennis in Melbourne was well and truly alive at the 2020 AgBioEn Kooyong Classic, with Mitchelton the proud wine partner of the tournament. The Summer of Tennis in Melbourne was well and truly alive at the 2020 AgBioEn Kooyong Classic, with Mitchelton the proud wine partner of the tournament. Two much loved, iconic Victorian brands came together in partnership in January as some of the world’s top players graced Kooyong’s historic centre court. Kooyong maintained its long and distinguished tradition as the ‘spiritual home of Australian tennis’ while Mitchelton wines had all their regional favourites on pour throughout the tournament and in the highly exclusive Members Bar. Customers and guests competing in the Corporate Challenge were treated to an energetic morning workout before official play began. “We were thrilled to be able to treat our customers and invited guests to a hit on those grass courts as part of our Kooyong partnership.” said Mitchelton National Sales Manager, Marcus Aquilina. “With an 11-year waiting list for club memberships, it was a very memorable opportunity.” The Preece Garden Bar and Mitchelton Airstream Bar were serving Summer wines throughout the tournament. The Preece Rosé, Pinot Grigio, Pinot Noir and vibrant Prosecco Spritz provided tennis lovers, VIPs and trade customers with a refreshing drink and the perfect place to chill in between games.

“Working closely and passionately with the team at Kooyong Tennis Club, we were able to extend our brand offering from the wine list at the club member’s bar to a more interactive, fun, colourful and vibrant space in the outdoor entertainment precinct. Having our two Summer pop up bars featuring on those famous grass courts gave attendees the opportunity to interact with the Mitchelton and Preece wines before, after and in between games in a relaxed setting.” said Mitchelton Marketing Manager, Natalie Powell. Rosé, Set, Match, Mitchelton Mitchelton – Proudly family owned Mitchelton 470 Mitchellstown Road, Nagambie, Victoria Phone (03) 5736 2222 mitchelton.com.au

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Australian Small Business and Family Enterprise Ombudsman – 2019 MGA has participated and worked closely with the office of the Australian Small Business and Family Enterprise Ombudsman, Kate Carnell and her hard-working team in 2019. MGA took part in 4 out of 7 working groups and Policy Forums addressing a variety of issues that affected MGA members businesses These policy forums provided a platform for issues to be raised and information to be shared to help small business and family enterprises navigate a challenging year. Kate Carnell said, “The business environment continues to evolve, and we look forward to collectively being a voice and advocate for a level playing field for small business and family enterprises.”

Several matters were addressed across the year including;

• Access to Justice Report phase I and II

• Development of the ASBFEO ATO Concierge Service

• Banking Reforms – Banking Code of Practice amendments

• Unfair Contract Terms – Regulatory Impact Statement on extending protections for small business due by the end of the year

• Payment Times to Small Business – working with Government on developing an Annual Reporting Framework for large business

• Electricity Prices – Default Market Offer and Energy Made Easy website

• VET program changes • Small Business Fair Dismissal

Code – recommendations made to improve the system

• Fast Fact Sheets – Efficient

Invoicing and Single Touch Payroll

MGA will continue to work closely with Kate Carnell and the entire hardworking ASBFEO team in 2020 to drive for better policies and outcomes for members.

• Reducing Government red tape • Online cybersecurity awareness • NBN Issues • Small Business digitisation

Available to order now in new look packaging

2017 Estate Grown Heathcote Shiraz An estate grown wine with handpicked parcels from unique Cambrian soils.

mga.asn.au | February 2020 | Edition 1

mitchelton.com.au

| 470 Mitchellstown Road, Nagambie, Victoria | (03) 5736 2222

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QUEENSLAND

IGA Queensland celebrates Women in Business Qld Metcash Food and Grocery hosted the inaugural Women in Business event in October 2019. Held at Sirromet Winery at Mt Cotton in south-east Queensland, the event gathered more than 80 IGA QNN retailers, suppliers and the Metcash Queensland team to connect, learn and network. Guest speakers on the day included Olympic swimming champion and successful business owner Hayley Lewis, Metcash board member Tonianne Dwyer and prominent IGA retailer and MGAQ Committee member, Roz White from the Sunshine Coast. All presenters shared their experiences, both personal and professional, on grasping the opportunities that they were presented, overcoming challenges to come out at the end stronger and stepping outside their comfort zone.

MGAQ Committee member Roz White.

The purpose of the event was to connect, learn and network with one another. The aim, says Metcash, was to empower guests to walk away from the event and be proud to thrive as owners and key leaders and contributors of their businesses, or the business they worked in It was also a way to say ‘thank you’ and appreciate and acknowledge the role women play as one half of the IGA retailer network and to celebrate this with valued suppliers and the Metcash QNN team Feedback after this inaugural “women’s” industry event was very positive with guests thoroughly enjoying the opportunity to come together to recognise and acknowledge the contribution women play in businesses. Congratulations to all concerned in Qld for organising this valuable “Women in Industry” event.

Metcash board member, Tonianne Dwyer; Roz White MGAQ and guest speaker, Hayley Lewis.

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VICTORIA NATIONAL

Boundy’s Keilor Road Essendon closes The Boundy family have been a Victorian independent supermarket institution, operating large and successful supermarkets for almost 100 years. Innovation over the years, whether it be in the form of high volume supermarkets, fresh and gourmet foods or being one of the first to install scanning point of sale systems has been a hallmark for the Boundy family success.

A note from the Boundy family: “97 years ago, my Great Grandfather, George Boundy, opened up the first Boundy’s Supermarket. Five generations of Boundy descendants have walked through the store. Today, we sadly close the doors for the last time at our Keilor Road Essendon store. It was an extremely difficult decision to make but ultimately to remain viable, we have needed to consolidate our two stores. We have thoroughly enjoyed serving our community, and thank you for your support, and hope to see you at our Buckley Street, Essendon store which will continue trading as usual.” Boundys have been an inspirational family shopping institution in the Essendon area. They are a terrific independent business who have delighted their customers for decades. MGA is very proud to say that the Boundys two stores have been MGA members for almost 90 years. J E Boundy was President of MGAV from 1968 to 1970.

John & Barbara Boundy, Lyn & Roger Priestley (holding Greg Priestley)

MGA extends ‘Best Wishes’ to the Boundy’s family and staff.

Roger Priestley and John Boundy 1971.

Photo captions: This page L-R In 1973 Boundy’s opened a new supermarket at 25-27 Keilor Road North Essendon. The photo was taken after they joined SSW in 1976. John and Barbara Boundy, Lyn and Roger Priestley (holding Greg Priestley). Roger Priestley and John Boundy – both directors (1971). Page 27 L-R MGAV Presidents honour board, J.E.Boundy 1968-1970. Roger Priestley and John Boundy today. Directors, Greg Priestley and Steve Boundy today. The construction of Boundy’s Tuckerbag Keilor Road store around 1970. Keilor Road, North Essendon after change to Festival in 1992.

mga.asn.au | February 2020 | Edition 1

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NATIONAL

Roger Priestley and John Boundy.

Greg Priestley and Steve Boundy.

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NATIONAL QUEENSLAND

SPAR Australia launches its first SUPERSPAR on the Gold Coast

SPAR CEO Lou Jardin

Congratulations to SPAR Australia who have proudly announced the recent launch of their first SUPERSPAR store in Australia. The store is located at Crestwood Plaza, Molendinar on the Gold Coast. SUPERSPAR is a larger supermarket format and is aimed at weekly family shopping needs. Managed by Store Manager Jolon Taylor and Frontend Manager Kylie Harvey, the new SUPERSPAR Supermarket, boasts a larger sales floor area. Allowing for a full-service shopping offer that is both large and varied in fresh foods, groceries and non-foods, but also includes a strong Food-to-Go offer. In Europe, these stores are known as EUROSPAR. SUPERSPAR Crestwood Plaza will offer superb fresh produce, full-service deli, quality meat delivered fresh daily to be cut and prepared by the stores’ butchers. A great grocery range and strong dairy, frozen and general merchandise range to ensure the community can source all of their supermarket needs locally.

mga.asn.au | February 2020 | Edition 1

The friendly service provided by staff and the high-value offer including hundreds of weekly specials, a “Payless Everyday Price Program”, combined with lengthy trading hours will provide great shopping experiences and convenience for the store’s customers. SUPERSPAR Crestwood Plaza has introduced a loyalty program to reward customers for their continued support. The SUPERSPAR loyalty program will also give customers the ability to support local community organisations by donating their points, or a percentage thereof, to nominated beneficiaries. SPAR Australia looks forward to continuing to develop SUPERSPAR’s to cater to the needs of the local community. Combine this with good food, great service and highly competitive prices, and your SUPERSPAR supermarket will always be a truly world-class local. Locally owned and operated, SUPERSPAR Crestwood Plaza is part of the worldwide SPAR family. Over 13,112 SPAR stores in 48 countries meet the needs of over 13.5 million customers daily.

Kylie Harvey, Frontend Manager with Jolon Taylor,Store Manager.

INDUSTRY NEWS

WESTERN AUSTRALIA

McGowan Government delivers payroll tax relief for WA businesses. MGA’s stand on State Payroll taxes is obvious! These states and territorybased taxes are a very blunt revenueraising instrument and a blight on employment, not only in WA but all states and territories in Australia – a deterrent to employing people. To make matters worse, the States and territories have not been adjusting the Payroll Tax threshold upwards in line with annual wage increases or inflation, resulting in the wages payment threshold remaining low. Employers with just a few employees are suddenly finding themselves within the payroll tax threshold and having to pay payroll tax.

The good news is - The Payroll Tax threshold in WA will be raised twice over the next two calendar years. Currently, WA businesses with Australia-wide payrolls of up to $850,000 are exempt from payroll tax. The annual threshold will be increased to $950,000 (+$100k) from January 1, 2020, and again to $1 million from January 1, 2021. Naturally, by reducing the payroll tax burden on Western Australian small and medium businesses, the costs associated with the hiring of additional staff will be lowered, and opportunity for those businesses to reinvest in their businesses heightened.

VICTORIA

Vale Campbell King It is with deep sadness that MGA advise members and industry friends and colleagues that one of our stalwart and very independent retailers, from NE Victoria, Campbell King, has succumbed to a very long and brave battle with illness. Campbell passed away on Sunday, 26th January 2020. Campbell was a true leader and beacon for independent retailers, being fiercely independent, strong and self-reliant in meeting the ongoing day to day challenges of running a group of licensed supermarkets in country Victoria. Based in Kyabram and Mooroopna, the King Family multiple supermarket group were at their strongest in the 1985 – 2000’s and traded under the Tuckerbag Brand which later on converted to FoodWorks. Campbell and his brother Roger have been well-known retailers for decades with their stores playing a

vital role in each community by providing employment and much needed essential goods. The King Family supermarkets have been members of MGA (MGAV) for more than 50 years! Campbell’s father, Ken King, founded the iconic King and Godfrey gourmet grocery store located in Lygon Street Carlton. In the early 2000s, Campbell and his wife Jan King were the first family business to back themselves by investing in a Big Box Liquor store in Shepparton to head off both Coles 1st Choice and Woolworths Dan Murphy coming into town. This state of the art store was branded LiquorWorks. Aside from the enormous involvement Campbell and Jan have had in many various industry brand, promotional and operational committees, Campbell still found time to be one of the inaugural MGA

National Liquor Committee members (formerly LRA). While Campbell had a passion for fresh food and groceries, the retailing of packaged liquor, particularly wine and boutique beers became one of Campbell’s greatest passions. We pass our deepest sympathies on to Jan King, Jodie and Chris and the whole family. To say it has been a privilege to know and work with Campbell is just an understatement! Thanks for everything you did to help better our grocery and liquor industry Campbell!

INDUSTRY NEWS

NATIONAL

Food Waste – How big is the problem? One of the MGA Board of Directors greatest priorities in 2020 is to tackle the issue of Food Waste as a part of the greater vision for creating a “circular economy” culture within the independent supermarket sector. Organic waste is a massive issue, and something independent supermarkets are well equipped to handle. Typically independent supermarket operators have terrific relationships with their local farmers and growers. They buy locally grown produce and foods and allow farmers to pick up any food waste that is generated in their stores for composting purposes. Irregular sized fresh and highquality fruit and vegetables sourced from local growers are not wasted and often sourced and sold at budget prices to give consumers a choice. More information will follow in forthcoming magazine publications and general communications.

Despite the figures suggesting that retailers are responsible for just 3 per cent of the nation’s food waste, supermarkets have a big part to play in tackling the issue, Queensland University of Technology food waste researcher Rudi Messner said “When you look at how food waste is allocated along the supply chain, retailers always look like the ones with the least food waste,” he said. “But a lot of food waste that happens in primary production happens because of retail.” Supermarkets have the power to help “move a surplus that is about to turn to waste” onto households, but they can also “reject it and pass it back to the primary industries”, Mr Messner said.

If waste were a country, it would be the third-highest admitter of greenhouse gases after the China, the EU and the USA.

Australia’s highly concentrated retail market – dominated by Coles and Woolworths, followed by Aldi and IGA – leaves growers with few alternatives if their produce is rejected.

A third of all food produced globally goes uneaten, but experts say supermarkets and shoppers can play a significant role in ending the waste.

“That might cause farmers to leave stuff on the field and move on rather than spending more money to bring it in and grade it, sort it, wash it and package it,” Mr Messner said.

According to the organisers of Stop Food Waste Day – an international event taking place on April 24 – if just a quarter of the food wasted globally was saved, it would be enough to feed all undernourished people in the world.

High “cosmetic standards” imposed by retailers also contribute to wasted produce, he said.

In Australia, an estimated $20 billion worth of edible food is wasted each year – an average of 298 kilograms per person. A recent government report attributed more than a third of the nation’s food waste – 34 per cent – to households, followed by primary producers at 31 per cent, manufacturers at 24 per cent, and the hospitality industry at 4 per cent.

mga.asn.au | February 2020 | Edition 1

Become a pioneer for Sustainable Business Practices. Contact the team: 1300 849 948 E:waste@mga.asn.au

INDUSTRY NEWS

NATIONAL What are the big supermarkets doing about food waste? Australia’s major supermarkets have committed to combatting food waste in a number of ways. Coles has pledged to halve food waste in its supermarkets by 2020 by donating unsold edible food to people in need and diverting other food waste to animal feed, clean energy and compost. “We currently have 95 per cent of our supermarkets and 100 per cent of our distribution centres connected with either SecondBite or FoodBank, providing them with edible, unsold grocery, fresh produce, meat, dairy and bakery items,” a Coles spokesperson said. The company is also working with suppliers to reduce their food waste. By “redirecting produce that cannot be sold to other value-added products” such as zucchini noodles, sweet potato noodles,

sweet potato chips and broccoli and cauliflower rice, the spokesperson said. Similarly, Woolworths’ ‘Odd Bunch’ range helps farmers sell cosmetically imperfect produce that may otherwise be discarded, More than 115 million tonnes of the fruit and vegetables have been sold since the range launched, Woolworths head of sustainability Adrian Cullen said. Last year, Woolworths saved more than 54,000 tonnes of surplus food from going into the landfill through partnerships with hunger relief agencies, farmers and commercial composters, Mr Cullen said.

For households, planning the shopping and creating a grocery list in advance is “critical”. “At the end of the day, it also saves money, because supermarkets are structured around specials and promotions … and this is when you buy the stuff you don’t need,” Mr Messner said.

TIPS TO REDUCE FOOD WASTE 1. Plan your meals 2. Check the cupboards and fridge before you shop

What consumers can do to fight food waste

3. Use a shopping list 4. Eat your leftovers 5. Freeze excess food and produce 6. Compost food scraps

“Once you become aware of food waste, there’s a lot of stuff you can do as a consumer,” Mr Messner said.

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LEGAL AND IR

NATIONAL

What you should know before buying a Franchise Company Before entering into a Franchise Agreement, you should check that you are correctly informed about the terms of the Agreement. Under the Franchising Code of Conduct and the Australian Consumer Law, franchisors have an obligation to disclose certain information to prospective franchisees before buying a franchise. ACCC recently investigated the businesses of 12 franchisors, to determine whether they were complying with the Franchising Code of Conduct (Franchising Code) and the Australian Consumer Law. The Report, ‘Disclosure Practices in Food Franchising (August 2019)’ revealed that a large portion of the 12 franchisors were not complying with certain aspects of the Code. The Report emphasises that prospective franchisees should check that their franchisor has complied with the following disclosure requirements: 1. Contacting former franchisees – It was found that only 4 out of 12 franchisors supplied correct details to franchisees. Under the Franchising Code, franchisors must give prospective franchisees a disclosure statement 14 days before entering into an agreement. This must contain contact details of former franchisees. It is important for small business owners to communicate with former franchisees to be informed about how the franchise is operated before entering into an agreement. 2. Disclosure of supply restrictions – 7 out of 12 franchisors did not disclose which goods were subject to supply restrictions. This makes it difficult for franchisees to know which goods and services they can source themselves before signing up to the Agreement. If this is not known, franchisees cannot decide on whether they are willing to accept supply restrictions before buying. 3. Combination of supply restrictions, rebate and setting maximum retail prices – Franchisors are legally allowed to avoid sharing rebate benefits directly with

franchisees, set supply restrictions, and set maximum retail prices. However, it is the combination of all three that might limit the franchisee’s profitability. It is important to seek independent advice prior to entering into a franchise agreement to determine whether the prospective buyer is prepared to accept certain restrictions. 4. Disclosure of costs – Franchisors must disclose costs that are known or reasonably foreseeable, including wages, rent or inventory. A third of the 12 franchisors investigated by the ACCC did not disclose. 5. The ACCC highlights the importance of obtaining legal advice before entering into a franchise Agreement. 40% of prospective franchisees did not seek legal, business and accounting advice. The ACCC also provides valuable resources on their website which explains the information prospective franchisees should be aware of before entering into an Agreement: https://www.accc.gov.au/update/buying-a-franchise-knowthe-risks The Australian Small Business and Family Enterprise Ombudsman provides dispute resolution for franchisees and franchisors. To find out more about your options to resolve disputes regarding Franchise Agreements, please do not hesitate to contact our Legal and IR team on 1800 888 479, extension 1.

For further advice tailored to your needs, please do not hesitate to contact

MGA’s Legal and Industrial Relations team on

1800 888 479 (option 1) mga.asn.au | February 2020 | Edition 1

INDUSTRY NEWS

NATIONAL

Small business is critical to the economy Making up 99% of all businesses, employing two-thirds of all workers and producing half of all output

CONTRIBUTION OF AUSTRALIAN SMALL BUSINESS

Small business is the cornerstone of the Australian economy, responsible for 2 in 3 Australian jobs and the vast majority of firms. Over half of small businesses operate in construction, professional services, hospitality, retail trade or health. 8 in 10 workers in the first three of these sectors are employed by small business. Small business is even more dominant in agriculture and real estate, responsible for over 90% of jobs.

99.8% of all Australian businesses (2.1 million)

2 in 3 Australian jobs & 76% of all new jobs in 2018

56% of production from $2 trillion in income

Small firms have fewer than 20 workers, while medium firms have between 20 and 200. Source – NAB 2019

QUEENSLAND

North Brisbane man fined $20,000 for eBay alcohol MGA and its Queensland members have been advocating to stock and sell packaged liquor for over 15 years but to no avail.

alcohol on eBay from September 2018 to April 2019,” Mr Sarquis said.

The self-interests of so many, particularly big businesses and Government agencies, has caused the Queensland packaged liquor retail market to be decades behind the rest of the country in terms of retailing practices and community cultural maturity. Queensland citizens are becoming frustrated with the lack of choice of local, national and imported beverages. The Chains Coles and Woolworths Liquor control more than 80% of packaged liquor in Queensland.

“This man was told to stop selling alcohol after officers found the licence number he was using was not registered in Queensland but was related to a permit held by a relative in Tasmania. As he was selling alcohol that was in Queensland, this permit was not valid.

Recently A North Brisbane man has been fined $20,000 in the Sandgate Magistrates Court for illegally selling large quantities of alcohol on eBay.

The Magistrate fined the man $20,000, and a conviction recorded.

On Friday, 22 November 2019, a man was found guilty of breaching section 169 of the Liquor Act 1992 by selling alcohol to the value of $50,644.66 without a licence or permit. Executive Director for the Office of Liquor and Gaming Regulation (OLGR) Mike Sarquis, said it wasn’t the first time the man’s activities had come to the attention of OLGR officers. “Our investigators found that this person had been illegally selling

“This is the second breach for this person as he was issued an infringement notice for the same offence in 2016.”

Mr Sarquis said the outcome highlights that there is zero-tolerance for the illegal sale or supply of alcohol. “These laws are in place to ensure a fair approach to the sale and supply of liquor in Queensland and minimise the risk of alcoholrelated harm, and it is disappointing that some choose to ignore them,” he said. “I hope this serves as a reminder to those selling alcohol online that if they are trading without an appropriate licence or permit, they will get caught.”

INDUSTRY NEWS

NATIONAL

Finland - Long opening hours boost sales for big supermarkets at the demise of smaller independents

As the duopoly, Coles and Woolworths have wooed local councils and state governments into developing their large and on many occasions unsustainably sized supermarkets at the cost of family and privately-owned retail businesses. MGA has continually opposed the further deregulation of trading hours that set out to further “crowd out” independent supermarkets and local shopping centres. It is particularly so in WA, SA and Qld. The few hours each week early in the mornings and late in the evenings are the only opportunity these businesses can make sales and maintain their viability. A recent study in Finland, where trading hours were deregulated in favour of big businesses demonstrated compelling and insightful findings. The study found hundreds of small shops went out of business since Finland liberalised store opening hours in 2016. The change made it possible for stores to stay open 24 hours a day if they chose to.

Before 2016, opening hours in Finland were limited during evenings and weekends at stores smaller than 400 square metres. However small kiosks were allowed to stay open longer, giving them a competitive advantage which they lost when rules governing opening hours disappeared.

More meals to-go Saturday evenings and Sundays have now become popular times for residents to do their weekly grocery shopping. Stores also report selling more ready-made meals late in the evenings, particularly to shoppers under 25. In 2016, Finland’s centre-right government said liberalising opening hours would positively impact employment. But in 2018 a report by Finland’s Ministry for Economic Affairs and Employment found that unlimited opening hours had only had a minimal impact on job creation. Sources Yle, STT

The Finnish Grocery Trade Association (PTY) said deregulation has mainly benefited large supermarkets with more than 1,000 square metres of floor space. These large stores have seen sales grow by some 20 per cent in the past four years, according to the association. “Large supermarkets have been able to draw the most benefit from longer opening hours,” Kari Luoto of PTY told Finnish News Agency STT. Grocery stores smaller than 100 square metres have suffered the hardest blow, losing a fifth in sales. Over the past few years, hundreds of small shops have gone out of business. But Ilkka Alarotu, Senior Vice President at major local retailer S-Group’s SOK, said it’s difficult to draw a straight line between longer opening hours and the closure of smaller stores. “Smaller stores shutting down are part of urbanisation,” he explained.

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INDUSTRY NEWS

WESTERN AUSTRALIA

Perth Airport Development a risk to Small Business survival Several WA MGA members and their fellow small business operators located in local shopping centres, within a 10 km radius of the Perth Airport, are under serious threat of survival owing to a new retail and bulky goods major development, proposed for the west side of Perth Airport, very close to the suburb of Belmont. Perth Airport is seeking approval of an Amended Master Plan for Perth Airport, which seeks in-principle planning permission for more retail and educational development. Already approved and open is a very large DFO and early in 2019 a Costco Big Box store. In total, more than 30,000sqm of new retail space has been built. In town planning terms this is a large District Town Centre in size. No Retail Sustainability Assessment was done before this retail development was built. The amended Master Plan seeks to continue the ability to grow development in the Airport West Precinct, without any consideration of the impacts that development has on the existing retail centres in Perth. Another matter of concern is that Costco (trading on Airport / Federal land) advertises on its website that trading hours on Sundays are 10 am to 6 pm. Clearly, this is in breach and flouting WA’s Trading Hours Laws? Trading hours laws in Perth limit trading hours for large retailers to 11 am to 5 pm. Restricted Trading Hours allow independent retailers a small window to compete against the chains, which Government policy in WA supports. Local Belvedere Street, Belmont, small business owners have started a petition to save their local community shopping precinct entitled STOP DESTRUCTION OF LOCAL SHOPPING “There’s been a lot of hype about Big Box retail stores like DFO and Costco opening in Airport West, but in all likelihood, Local Community shopping and small businesses are about to become the casualties of Perth Airport’s rampant expansion of its retail precinct. This has been the experience in the United States where Big Box retailing has sounded the death knell for small businesses and in turn destroyed local communities. Australia and Western Australia, in particular, is 5 to 10 years behind the rest of the world. Rather than learning and avoiding the mistakes of other countries, which have suffered the negative consequences of Big Box retail, we are rushing headlong into this questionable retail practice.

Beyond this, Perth Airport is not competing on a level playing field. They are a mega-conglomerate that operates outside state laws. As such they do not pay state payroll tax or land tax and they can by-pass state trading laws. Local shop owners in Belvidere Street Belmont are extremely concerned for the future of their businesses. Local residents should also be concerned about what the closure of these businesses will mean for the community. Belvidere shopping precinct is our village. There is no other local amenity where residents can connect. Residents enjoy the experience of going to shops where they know the shop keepers and shop keepers know the residents. And, going to the shops often results in having a catch up with other residents and friends. In an increasingly impersonal, mercenary world, we are privileged to have this facility. As was demonstrated in the Community workshops, people value and want to retain this amenity.” MGA will be engaging with the WA and Federal Governments to advocate against this development until a retail sustainability assessment is conducted to demonstrate the impact of this proposed irresponsible development on WA family owned and operated businesses. There will be a Perth Airport Community Forum meeting on 28 February 2020 at 6.30pm at Bayswater, at a venue to be advised. Issues concerning operations of the airport can be raised by the public at these meetings. You should consider attending. You can register your attendance via the following link. https://pamg.com.au/pacf/

TRAINING

NATIONAL

Successful Implementation of Training 2020, no matter how small you are! A growing problem for many businesses is that they are simply too busy with the day to day operations to be even thinking of training! Trying to prioritise what is necessary becomes reactive, particularly when it comes to training. Other factors that impact implementing training is costs, not enough staff and being time poor. However, it is proven that trained employees become an integral part of the business. When employees have all the training, skills, and knowledge they need, the business will run more smoothly and efficiently. Not to mention, avoid any fines and litigation. Therefore, training becomes a pre-emptive asset to the business not just a costly reactive action.

TO SUCCESSFULLY TRAIN EMPLOYEES, A BUSINESS SHOULD IMPLEMENT A TRAINING PROGRAM/ STRATEGY. THIS PROGRAM SHOULD COVER; ›WHY ›WHAT (END OUTCOMES/GOALS) ›HOW ›WHO ›WHEN? IN SIMPLE TERMS CREATE A PLAN AND STICK TO IT! ANOTHER ACRONYM TO REMEMBER WHEN PLANNING IS KIS

To achieve optimum staff levels and reach business goals the simple answer is to plan. Everything. By planning, businesses can control costs and time with training. As the old adage says: If You Fail To Plan, You Plan To Fail (Benjamin Franklin)

Why & What These come hand in hand when planning. As a business, determine what the employees need to learn. Put a list together of what knowledge and skills should employees have to successfully complete their job roles. This should include; Compliance/Government Regulations- Examples such as RSA, food safety, forklift driving, scanning practice, refunds and returns, product recalls etc

mga.asn.au | February 2020 | Edition 1

TRAINING

WHS- Areas such as manual lifting, suspicious persons, using ladders, slips and trips workplace bullying should be covered before an employee starts so they have an understanding on workplace safety and what to do in just in case. NOTE: just because they may have worked in other similar businesses does not mean an automatic ‘they know’. Each establishment has their own systems in place and expectations so it would be advisable to ensure employees are trained/have the knowledge within that establishment. How Knowledge on how to complete tasks such as POS machines, completing incident report, how to handle emergencies, how to handle difficult customers Standards and processes for employees on how they complete the tasks and to what standard Business goals what the business wants to achieve (increase sales by having great customer service/repeat customer service) Cross Train Workers Cross training assists employees in completing their primary jobs as well as understand the business better. It also assists their knowledge on how other tasks are performed and know what to expect from co-workers in other positions. Cross training also benefits the business if there is a staffing shortage. For example, an employee calls in sick, but their tasks must still be completed that day. An employee who is cross trained in that position can fill in for the sick employee. It will also assist with reducing labours costs and rostering. Set Training Goals Determine if the training program meets the business requirements. To do this, set goals and track whether or not they’re being met. This is also where the training register can assist.

Once the goals have been reviewed if they were achieved or not, the business can then realign the training with business goals (flex).

How (to deliver the training) Depending on the topic that needs to be trained it can become an automatic answer on how to deliver the training. Example- Responsible service of alcoholmust be delivered through a registered training organisation- therefore the employee needs to complete the formal training face to face or online (depending on the State). This is known as Formal training. Another example would be if the employee is new- the best option would be on the job training with either mentor /coach to assist. However, the option may be some form of induction program as well. So, this becomes formal and informal training combined. Other questions with how to deliver training may also depend on costs, time and who the participant (learner) is. Example – an older staff member would benefit from hands on or classroom style learning whereas a younger person who has grown up with technology at school would be comfortable with online learning

Who Once the how has been established (formal versus informal or combination) the next step is who will be delivering. This does require a bit of time with research and investigation. But once done, this area will only need to be revisited once year to ensure that the training meets the business requirements. A cost-effective way of meeting skill needs in the business is building on the talents the business has already acquired. Use these employees as coaches or mentors.

And most importantly- choose the right mentor/coach. It does not need to be the same person. Each employee is good at something. Use their experience and skills set to help others and recognise them as a key member of the team. Another hint is ensuring the mentor/ coach has a positive attitude towards the business and follows the policies and procedures set by the business.

When Be regular with training. Frequent training can help maintain skills and knowledge and can avoid complacency. Regular sessions are also a great way to teach more advanced skills and notify employees of any changes. Plan when the training takes place. Review the quiet and peak periods of the business. This is where, when planning and booking times in the calendar, training becomes part of the workflow and operations. Quiet times can be used for refreshers, updating knowledge and cross training. Just before peak periods start training new employees so by the time the peak occurs the employee is equipped with knowledge and skill to handle most situations and become an effective team member Don’t leave training last minute- get employees in a routine – and with new staff it becomes the norm. Have due dates and follow up. Its that simple. If there is no goal to work to- it will not be achieved. Build it (training or administrations of training) into your calendar, including chasers of those pesky RSA certificates so it does not be forgotten until too late! Be firm with your employees – if the business does not follow up on training or place any importance on training- why should the employees?

TRAINING

Communicate NATIONAL training and why Inform your employees on the training required and why they have to complete it. Use technology to assist with training. Not just using online courses etc. Use other forms of tech such as messenger applications such as What App or Face Book messenger to convey messages, confirmation on understanding, highlighting issues etc. Note: Be careful with these applications within the business. Ensure they are monitored and used only for work purposes. Have procedures on how these applications are used in the business and have your employees sign off. If unsure, please chat with our friendly IR team here at MGA for guidance in this area.

Training Registers and reducing risk A Training Register is a document that outlines the details of any formal or on the job training that employees receive. How it looks and works is up to the user. Having a training register covers many areas such as;

• Detailing the measures, the business undertook to ensure that staff had the skills to keep themselves and the public safe or operate in a compliant manner.

• In the event of a safety incident at

work the ability to point to a coherent training and development system demonstrates the business is active in meeting its legal requirements.

• In the event of compliance or

performance issues the ability to identify when and where staff received training in skills, compliance behaviours and policies that they are not exhibiting, facilitates appropriate performance management within the business.

• In the development of competitive

advantage, the maintenance of a good Training Register will highlight the need to review skills with staff, as well as identifying skills

HINT 1 Best to keep note of the training – no matter what type- and no matter how it was delivered. Any type of evidence like a diary or calendar entry assists with any investigations from different government departments. The ability to produce a document at the request of inspectors at short notice is beneficial for all parties involved.

Mode of training (formal, informal, on the job, workbook, online etc) Outcome or skills of training Completions and date When a refresher is due

HINT 2 It is also wise to keep a staff file- where you can store each of their certificates (copy only) for the same reason. Whether it be a certificate of completion or Statement of Attainment - the business is providing EVIDENCE of training given. You can do this either soft copy or hard copy.

Types of Training Registers Learning Management System (LMS) – An LMS is a digital learning hub. It is a place where training materials are assigned to learners. It also collects various statistics on the training process and can automatically create the necessary reports. In short, using an LMS is the easiest and most adequate solution for monitoring training. Large corporations such as Metcash and MGA Industry Training have these systems to assist. Or business can purchase their own LMS- which could be a costly exercise. Excel/ Google Spreadsheets/Diary/ Calendars Smaller businesses can use what is readily available from Word, Excel, calendars or even the old school diary! It does not have to be complicated. It needs to be of easy use and easy to follow.

Make business life simple when it comes to training. There are many tools that are available when it comes to training and planning. A good plan saves you time and money. It does not have to be technical, highly detailed, or even well formatted and presented. A simple handwritten list of key decisions can make a huge difference to business life and performance. Having a good plan for training ensures the is workflow is smarter; allows managers/ owners alike to concentrate on the things that really will make a difference rather than just being busy. It allows control of what needs to be done within a reasonable timeframe. For further assistance with training registers, courses or with developing a training strategy call MGA Industry Training on 1800 888 479 and follow the prompts

A good training register provides information to internal and external parties as to the nature of the training undertaken, who received it, when and what skills were demonstrated. There are many templates available online. Training Register could include : Name of staff member Name of the training Description of training

MGA INDUSTRY TRAINING IS HERE FOR YOU! Call our specialist team 1800 888 479 (option 2)

mga.asn.au | February 2020 | Edition 1

Wine in cans have had an exciting entry into the Australian market. Treasury Wine Estates (TWE) is proudly the market leader, producing the current top two wine in cans sold in the country - Squealing Pig Spritzed Rosé and Squealing Pig Spritzed Pinot Grigio1. Lightly spritzed (carbonated) for added refreshment, they have been specifically crafted to be enjoyed straight from the can and contain less alcohol than the wine in our 750ml bottles. For example, Squealing Pig wine in cans have only 1.7 standard drinks per 250ml can. More broadly across this category, TWE has seen the format driving wine category growth and introducing wine to younger adult shoppers, 22% of whom are new to the wine category2. Cans are also opening up wine to new occasions, for example picnics, festivals, race meets, airlines and people who don’t want to drink a whole bottle or who would like to try different varietals in the one session. Furthermore, the convenience of wine in cans makes them a very user-friendly format – they’re portable and easier to stack, they don’t weigh

1 * IRI AU Unwtd MAT to 22/12/19 2 IRI Liquor MarketEdge Data MAT To 20/01/19

as much, they chill more quickly than glass, they are a small format option when required and they are a great environmentally-friendly solution for events where glass is not allowed. With new consumers now enjoying wine in occasions not typically associated with wine, it is leading to a greater exploration of the wine category as a whole. As a trend that shows no sign of slowing down, TWE is exploring further innovation in cans, so watch this space. For more information on the Squealing Pig spritzed cans visit: https://www.squealingpig. com

TIMBER NEWS

Timber Framing – Renewing Our Future There is real currency with The Ultimate campaign messages and recent events for Australian communities and businesses impacted by the devastating bushfires. Trusted for centuries, sustainably sourced timber framing is the ultimate renewable building material.

“Timber is the only building material that helps tackle climate change.” As the category leader in structural building material for Australian homes, timber framing is often taken for granted in terms of its proven and preferred status.

It’s a key product category for every timber merchant but in the past has lacked specific branding support for stockists on its many benefits to promote to their customers - builders, tradies and even DIYers. Australia’s softwood sawmilling sector working through AFPA (Australian Forest Products Association) recently launched a new messaging campaign to reinforce and promote the benefits of timber framing. The Ultimate Renewal campaign continues to gather momentum, fronted by Peter Maddison from Grand Designs Australia fame and endorsed by Planet Ark. Here are a few key points to consider in “renewing our future” as Australians as we deal with the bushfire impacts:

Victorian Government Proposal To Cease Sustainable, Renewable, Certified, Local Hardwood Timber Harvesting A continued effort is being made to dispute and ultimately reverse the recent Victorian government’s decision to ban native logging, local hardwood, by the year 2030. Rallies and strategy meetings have been held by a cross-section of the timber industry.

Members rally held in December 2019 on the steps of Parliament House.

mga.asn.au | December 2019 | Edition 8

• The rebuild and restoration of

buildings in impacted areas should consider the benefits of timber framing –carbon storage and low embodied energy are positive for climate change.

• Regulations for bush fire prone

buildings will undoubtedly be discussed, and the key point here is that although no building is fireproof, they are designed and built to regulations rightly focussed on people’s safety.

Many of MGA TMA members have businesses in the regional communities impacted by the fires. In rebuilding these fire-affected communities, giving preference to locally sourced timber products helps these communities recover sooner, ensuring job security and protecting economic and community wellbeing – renewing our future.

TIMBER NEWS

NATIONAL

Victorian native forest industry strategy meeting The Victorian Native Forest Industry Strategy meeting was held mid-December.

It was a good turn up from across industry, TMA was among the attendees and some great ideas shared. It was very positive to hear Ross Hampton advise that the AFPA Board saw this as a ‘national must win’ situation (first domino). All agreed though that it would need some significant funds for the campaign including some urgent initial research – at this point it is not clear where these funds will come from. ‘Next steps’ – include “the lead organisations formalising actions based on discussions”.

What does good look like? • Governments decision is reversed

• Future industry should be – » Sustainable » Confident » Using a mix of resources » Recognised for economic, social and environmental benefits

Whilst much of the discussion on the day focussed on political activities and responses, there was also some good suggestions around supply chain consumer/ voter engagement and awareness activities needed.

Security for industry will come from –

• Bipartisan support for longterm policies

• Whole-of-landscape forest management

• Proposed minimum 6% of

public forest area legislated for production

• Timber sales agreements with government

• No new national parks

established in this term of government

• Evidence-based policy decisions

• Improved public perceptions of industry

Social & Economic Benefits • Hardwood product production has significantly high social and economic benefit • The timber supply chain creates thousands of jobs in Victoria, particularly in regional areas – » 15,000 direct employees » 40-42,000 indirect employees – including many who live and are employed in the suburbs of

Melbourne, producing and selling, furniture, flooring, staircases, joinery, mouldings, windows, doors, linings, cladding, decking, frames and trusses, glued laminated structural, structural framing and fencing landscaping.

• Hardwood timber products look stunning and also provide a wide range of health and well-being benefits for family homes and office workplaces.

» Improvements to a person’s emotional state and level of self-expression » Reduced blood pressure, heart rate and stress levels » Improved air quality through humidy moderation » Its use as a long-term store of carbon, helping to fight climate change

LIQUOR NEWS

NATIONAL

MGA National Liquor Committee Update After eleven years of serving on the MGA National Liquor Committee, Gary Woodgate has decided to step down. Gary was an inaugural member of the MGA National Committee that formed in July 2009 as a result of the merging of the Liquor Stores Association Victoria with the Master Grocers Australia. A successful and well-respected independent retailer for over 30 years, Gary has made a fantastic contribution to our industry sector over many years and was very passionate about having a strong and diverse national liquor industry. On behalf of the MGA National Liquor Committee and MGA Board, we would like to thank Gary for all his dedicated and hard work during his long tenure on the committee and wish him and his wife Julie an enjoyable retirement. As a result, we welcome onto the MGA National Liquor Committee Karl Loh GM Liquor Ritchies Stores. As part of Australia’s largest independent retailer, managing over 70 stores nationally, Karl will be bringing a wealth of industry experience and knowledge to the table.

L-R Retiring committee member, Gary Woodgate and new committee member Karl Loh, GM Liquor Ritchies Stores.

VICTORIA

VCGLR Welcomes New Commissioners In December 2019 the VCGLR welcomed two new Commissioners, Danielle Huntersmith and Andrew Scott. They join the existing Commissioners and together are responsible for statutory decision-making, strategy, governance and risk management of Gaming and Liquor matters. Danielle has over 25 years of experience as a barrister. She is also a nationally accredited and advanced mediator at the Victorian Bar and a director of the Skin Health Institute. Before this, she was a panel member of the Liquor Licence Panel. Sat on the Federal Government’s National Alternative Dispute Resolution Advisory Council, and was the Vice-chair of the Institute of Arbitrators & Mediators Australia (Vic) and the Deputy Chair of the ADR Committee of the Victorian Bar.

mga.asn.au | February 2020 | Edition 1

Andrew has practised as a lawyer in the private sector for over forty years as a business law specialist and a sports law expert. He is a past president of the Law Institute of Victoria and, in the public sector, has served as a board member of the Victorian Legal Services Board and Chair of the Liquor Licensing Panel. He is currently a director of Swimming Victoria and YMCA Victoria, where he chairs various sub-committees including YMCA’s Risk Sub-Committee.

INDUSTRY NEWS

NORTHERN NATIONAL TERRITORY

Dan Murphy Continues push to set up NT Store Despite being refused a liquor licence twice by the Territories Liquor Licensing Authorities to open a 1200 square metre Big Box Dan Murphy Super Store in Darwin, Woolworthsowned Endeavor Drinks Group continues to use its endless recourses and financial muscle to secure a licence against strong local community and Health Authority objections. At the recent NT Liquor Commission hearing 17 different objectors opposed the issuing of the licence. Health organisations across the Northern Territory including Aboriginal primary care organisation Danila Dilba and the Public Health Association of Australia, all arguing that the store would increase the rate of alcohol-related harm in Darwin putting nearby Aboriginal communities at risk.

in the first sitting of parliament in February. With the Gunner Labor Party Government holding a clear majority of 15 seats in the Legislative Assembly and requiring only 13 votes to pass legislation there will be no stopping its passing. One must then ask the question, “What is the point of appointing an Independent Liquor Commission to review and make balanced and unbiased decisions on liquor licensing issues. Then have the government declare that they would introduce legislation to accommodate a clear passage for the Dan Murphy liquor application approval when a decision does not suit them!” Where is the democracy in that? The Gunner Government must be held to account and govern for all its citizens rather than succumbing to corporate pressure.

In its decision, the commission said it was not opposed to the “concept” of a Dan Murphy’s store in Darwin, but argued the proposed location was inappropriate due to its proximity to Darwin’s largest Aboriginal community at Bagot. It is also within 2 kilometres of two other communities, Kulaluk and Minmarama and encouraged Endeavor Drinks to re-apply for a Dan Murphy licence in a different location. After the Liquor Commission rejected the application last September, Endeavor Drinks launched an appeal with the NT Civil and Administration Tribunal (NTCAT) in December. The NTCAT dismissed the appeal, ruling the company couldn’t transfer a licence from Stuart Park BWS to a store that didn’t yet exist, resulting in the lawyers for Woolworths launching a Supreme Court appeal against the NTCAT decision.

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If the Supreme Court appeal, expected to be heard in full later this year rules in Dan Murphy’s favour, they’ll be heading back to NTCAT to appeal again the Liquor Commission’s decision to reject its application. If the Supreme Court appeal rules against Woolworths, it’s likely to be the end of the road for a Dan Murphy’s store in Darwin as the laws currently stand, or is it?

TASTING NOTE This limited edition frizzante style White Moscato is made from Moscato Giallo and is refreshing, light and versatile with the perfect balance of bright fruits, zesty acidity and spritzy finish.

The NT Gunner Government vowed to change legislation to allow the liquor giant to open and will be tabling the draft legislation For more information contact your De Bortoli representative or visit debortoli.com.au

INDUSTRY NEWS

NATIONAL

Liquor Industry Gathers for MGA National Liquor Update Function Presented by MGA Liquor National President George Kovits, The ‘Year in Review’ outlined the National and State advocacy work done on behalf of its members. The 2019 calendar year showed that 10,954 direct contacts were equalling 5,220 hours of member engagement with MGA staff, requesting assistance on a range of issues including IR, Wage Rates and Liquor Licencing issues. Attendees were engaged by informative presentations from two fantastic Keynote speakers; Jason Daniels Managing Principle, Adroit Insurance, who discussed the importance of business insurance and the possible consequences of underinsuring your business.

L-R: Dale Brennan TWE , Paul Everard PDF Foods, Karl Loh GM Liquor Ritchies, David Seymour De Bortoli Wines

With over forty years of retail experience as CEO of Wesfarmers Department stores, Kmart and Target, President of McDonalds Greater China and CEO of McDonald’s Australia, and now current Chair of Guzman y Gomez Restaurants Guy Russo, who’s presentation covered the importance of ‘Effective Retailing’. The function was not only informative but also allowed both retailers and suppliers to engage and network in an informal and relaxed environment. Events like these cannot take place without the support of industry and on the MGA Liquor Committee would like to thank Asahi Premium Beverages, Asahi Lifestyle Beverages, Mitchelton Wines and Phillip Morris International for their generous and continued support.

L-R: Scott Hadley Chief Commercial Manager Asahi Premium Beverages, Peter Margin Executive Chairman Asahi Premium Beverages

Members can view the full presentation on the MGA website www.mga.asn.au.

Key Note Speaker Jason Daniels Managing Principle, Adroit Insurance L-R: Jos de Bruin CEO MGA, Peter Margin Executive Chairman Asahi Premium Beverages, Bob Mathews IGA Multi Store Owner mga.asn.au | February 2020 | Edition 1

INDUSTRY NEWS

NEW NATIONAL SOUTH WALES

Extended Hours for Take-Away and Home Delivery Packaged Liquor On 28 November 2019 the NSW Government announced it will implement certain key recommendations from the Joint Select Committee’s report on Sydney’s night time economy, including an extension of take-away liquor trading hours, the extension will apply from Tuesday 14 January 2020. For those able to take advantage of the new standard trading times for take-away liquor sales they are;

• Monday to Saturday have been extended to 12am (midnight). • Sunday has been extended to 11pm. To check if your licence is eligible to take advantage of the new extended trading hours refer to the ‘Industry Information Fact Sheet’ on the Liquor & Gaming NSW webpage www.liquorandgaming.nsw.gov.au The trading hour extension is planned to be reviewed after 12 months to consider any impacts.

VICTORIA

Victorian Liquor licence renewals now overdue

MGA reminds members that payment of their 2020 liquor licence was due in full by 31 December 2019. If you have not yet paid your 2020 liquor licence renewal fee, you need to do so by 31 March 2020 to continue to trade lawfully.

TRY A REFRESHING TWIST ON PROSECCO WITH AROMATIC BITTERS AND ORANGE #bbproseccospritz

Licensees who have not paid their renewal fee by 31 March 2020 are prohibited from selling/supplying liquor and risk enforcement action. VCGLR inspectors may be out visiting licensed premises across the state who have not yet paid their renewal fee. You can still register on the VCGLR Liquor Portal to receive your liquor licence within five working days of payment. If you no longer require your liquor licence or permit, licensees need to complete the surrender a liquor licence or permit application form and send this to the VCGLR.

Family winemakers since 1889

LIQUOR NEWS

NATIONAL

INDUSTRY GOLF DAY

Thursday 2 April 2020

As Patron of the Grocery and Liquor Association (GALA) I would like to invite you to come along to

77th MGA GALA Industry Golf Day This year’s Golf Day will again be held at the picturesque Keysborough Golf Course. It will be a catalyst to network, build relationships and catch up with industry friends. All proceeds of the day will be donated to the Reach Foundation and will go toward funding much needed youth programs in our community. I would like to thank the GALA Committee (which is made up of industry volunteers from all sectors of our industry) for their commitment and hard work, to make this an industry day you shouldn’t miss. Thank you for your continued support of GALA and we hope that you will join us for this key industry event.

CEO Ritchies Group

The event is a fun ‘Ambrose’ competition, followed by presentations and meal at the club. 8.15am

Registration

8.45am

Breakfast

9.45am

Pre-game briefing

10.00am

Shotgun start

2.30pm

Golfers finish and post-game drinks

3.00pm

Early buffet dinner, raffle and presentation

5.30pm

Please visit: www.golfdays.com.au/gala20 or call Mark Paladino on 0417 264 331

LIQUOR NEWS

mga.asn.au | February 2020 | Edition 1

des i v o r p s i l a Lact

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