Issue
03 JUNE 2022
Drakes: state-of-the-art warehouse | PAGE 12 YOUR INDUSTRY NEWS PROVIDED BY MGA INDEPENDENT RETAILERS
Serving Suggestion
*As part of a varied and healthy diet, LGG® and BB-12 ® probiotics in Vaalia yoghurt at a daily intake of at least 1 billion CFU each can strengthen the immune system and improve bowel function in the general adult population; also with dietary fibre for regularity.
3
OUR MISSION The trusted leading voice of industry that is responsive to member needs in a competitive environment. We employ people of exceptional expertise and determination to deliver valuable service and solutions for our members.
MGA NATIONAL SUPPORT OFFICE Suite 5, 1 Milton Parade, Malvern, Victoria, 3144 P: 03 9824 4111 admin@mga.asn.au • www.mga.asn.au
BOARD OF DIRECTORS Debbie Smith (President): Queensland Grant Hinchcliffe (Vice President): Tasmania Graeme Gough: New South Wales Ripple Parekh: New South Wales Ross Anile: Western Australia Terry Slaughter: Queensland Chris dos Santos: South Australia Lincoln Wymer: Victoria Jeff Harper: Victoria
CHIEF EXECUTIVE OFFICER
Contents 5
CEO Welcome
6
Federal Budget 2022 – Summary of announcements
8
MGA TMA Annual Wage Review
10
MGA Board meets in Adelaide
17
ACCC to monitor petrol prices following cut in fuel excise
17
More major companies stop Russia supply
18
National Small Business Summit
20 Welcome new corporate partner, Comply Group. 21 Hubert Estate, Yarra Valley’s newest destination 22
UK Food and Grocery - Pandemic e-commerce after effect
23 Illicit Tobacco - organised crime & protection 24
National Plastics Recycling Funding
25 COVID-19 tests and fringe benefits tax 26
Queensland Small Business Industry Roundtable
27 Get prepared for your insurance renewal Workplace Health and Safety: obligations and duties
Jos de Bruin 03 9824 4111 E: jos.debruin@mga.asn.au
29
35
Changes to Roster
CORPORATE PARTNERSHIP & MEDIA SALES
36
Employee request for casual conversion
38
Keeping appropriate time records
Mark Paladino 0417 264 331 E: mark.paladino@mga.asn.au
39
Is ‘Just Walk Out’ technology the future of retail?
40
NAB Cashless Retail Sales Index April 2022
45
Timber Product Knowledge Training
DESIGN & PRODUCTION Cindi Damian 03 9842 4111 E: communications@mga.asn.au
FOLLOW US ONLINE www.facebook.com/ MGAIndependentRetailers www.linkedin.com/company/ mga-independent-retailers www.twitter.com/ MasterGrocers
32 Allowances under GRIA
46 Independent Hardware Group 46 The world’s tallest cross laminated timber building 47 Frederick O’Connell Scholarship 2022 47 Victorian RSA certificates now have new branding 49
Victoria’s gaming commission appoints new CEO
49 Illegal tobacco sales facing crackdown in Queensland 50
2021 Drakes Supermarkets Conference & Supplier Partner Awards
Front Cover: MGA Board members visit South Australia and Drake Supermarkets state of the art warehouse.
MGA Corporate Partners DIAMOND
PLATINUM
GOLD
SILVER
BRONZE
ASSOCIATE
WAREHOUSE AND BRAND PARTNERS
tasmanian independent retailers
CEO REPORT
CEO Welcome A warm welcome to all members, industry friends, and industry colleagues to the Autumn 2022 edition of the Independent Retailer Magazine. At the time of writing, we wish to acknowledge all our members, their families, staff members and customers who have been exposed to more substantial and ongoing inclement weather causing catastrophic flooding in Northern and Central New South Wales, Sydney, and Southern Queensland. We wish you all a very quick recovery to some form of normality. Members, please call MGA should you require any “back of house” support and assistance as a consequence of these flooding events. Last month former Treasurer Josh Frydenberg delivered his third Federal Budget. A budget delivering a significant fiscal policy investment, as well as, committing to spending across many facets of the Australian economy, to enable a robust post COVID-19 business recovery. See inside this edition for a summary of the FY 2023 budget. For the third year in a row, COVID-19 continues to dominate our daily lives, whether it be at home or in our businesses. Members continue to experience business challenges at various levels around the country. In Queensland, New South Wales and Victoria, the spread of the Omicron COVID-19 variant is playing havoc, causing chronic worker shortages owing to staff testing COVID-19 positive or identified as a close contact and having to test and isolate for seven days. Western Australia’s border officially opened on 5 March 2022, a great relief for all concerned, particularly those wishing to see family and friends after the border shut for such a long time.
Western Australia and South Australia are experiencing similar challenges to the eastern states twelve months ago, with chronic staff shortages a top challenge. Western Australia is fortunate to have a very high uptake of vaccinations around the state, allowing for a more planned approach to opening out the Western Australia economy. Illicit tobacco continues to be a very serious issue for members. MGA estimates that illicit and illegal tobacco is causing loss to members of $300m per annum in legitimate tobacco sales. The knock-on effect is the loss of very important cash flow and revenue, not just with loss of legitimate tobacco sales, but also loss of “add on” sales that tobacco customers purchase while in the store. This is having a significant and serious impact on staff member reductions, owners working longer hours in the business, and no funds available to invest back into their businesses to remain competitive against the major chains. We wish to officially farewell ACCC Chairman, Rod Sims, after eleven years at the helm, and welcome Gina Cass-Gottlieb, the ACCC’s inaugural female Chairperson to the role. Rod Sims’s hard work and passion to protect the consumer and small businesses from unfair and unconscionable practices by large businesses has left a significant legacy. MGA looks forward to working with the new Chairperson, Gina CassGottleib, toward fostering fair and robust competition and creating a diversity of choice for consumers in
the food, grocery, beverage, hardware, and timber industry sectors. After two years of COVID-19 lockdowns and meeting face-to-face only twice during that time, MGA’s Board of Directors was finally able to meet in Adelaide from 23 to 25 March 2022. Our Board had the good fortune to visit some of Adelaide’s most iconic and brilliant food and grocery stores, as well as conducting the Board meeting at Foodland House, which has now located itself in the heart of bustling Adelaide. Stores visited included Romeo’s Rundle Mall, City East IGA, Drakes Supermarket Eyre, Chapley Group’s Saints Foodland in Salisbury, Drakes Supermarket Fulham Gardens, and IGA Henley Beach. As most members will know, retail standards in South Australia are very high and are aspirational to us all around Australia. MGA congratulates our South Australian members for their incredible presentation and extensive offerings which sets them apart from the chain stores and the German retailer. Until next edition, we wish all flood effected members a very fast recovery from all the devastating weather events and a good trading period leading into the winter months. Best wishes Jos de Bruin Chief Executive Officer
5
6
INDUSTRY NEWS
NATIONAL
Federal Budget 2022 – Summary of announcements The former Federal Treasurer delivered his last Federal Budget in the Parliament on 29 March 2022. Economists have commented that former Treasurer Frydenberg has delivered a budget with various cost of living reduction measures for the public, as well as some initiatives of interest to businesses across the country. Following the enormous support packages to help Australia through COVID-19, the budget sought to strike a balance between pre-election spending and responsible long-term economic management. While much of the media coverage is focused on the consumer-facing measures such as the cut to petrol excise, the budget contained schemes relevant to many family and privately owned businesses and companies.
Budget highlights summary: For Individuals 1. The fuel excise tax will halve from 44.2 cents per litre to 22.1 cents per litre for six months, coming into effect from Budget night 2022. This will help alleviate the impact of rising oil prices as a result of the Ukraine conflict. 2. A one off $420 cost of living tax offset for workers eligible for the low- and middle-income tax offset will come into effect from 1 July 2022 to help manage rising living costs. 3. Pensioners and other welfare recipients will receive a $250 one off cash payment, to be paid within weeks of the 2022 Budget announcement. 4. The Deposit Guarantee Scheme will more than double to 50,000 places per year. The scheme cuts the deposit required to buy a home to 5%, with the Federal Government guaranteeing the other 15%. There will be places set aside for single parents – either buying their first properties or trying to re-enter the housing market. Eligible single parents can receive a guarantee mga.asn.au | June 2022 | Edition 3
of expenses and depreciating assets, up to $100,000 of expenditure per year.
with a deposit of just 2%. 5. The First Home Super Saver Scheme (FHSSS) will be tweaked. It will allow first home buyers to withdraw $50,000 from their super, up from $30,000. This scheme allows first home buyers to save a deposit by contributing to super while paying less tax.
b.
Eligible expenditure includes items such as portable payment devices, cyber security systems and subscriptions to cloudbased services.
c.
The boost will apply to expenditure incurred from 29 March 2022 until 30 June 2023.
For Businesses 1. The existing instant asset write off rules for businesses with turnover or income of less than $5bn have been extended to 30 June 2023. 2. $10.4 million to enhance and redesign the Payment Times Reporting Portal and Register, making it easier to view the payment practices of Australia’s largest organisations. 3. $5.6 million for a dedicated small business unit in the Fair Work Commission, making it easier for them to meet workplace obligations. 4. $8 million to the Australian Small Business and Family Enterprise Ombudsman, making it easier to access expert advice. 5. $4.6 million to extend Beyond Blue’s NewAccess for Small Business Owners program, making it easier to access mental health support. 6. The Technology Investment Boost aims to reduce the cost of going digital, supporting business investment in digital capability. a.
Small businesses with an annual turnover of less than $50 million can claim a bonus 20 per cent deduction for the cost
7. The Skills and Training Boost encourages small businesses to train new staff and upskill existing staff, helping them to be innovative and grow. a.
Small businesses can claim a bonus 20 per cent deduction for the cost of external training courses delivered to employees in Australia or online, by providers registered in Australia.
b.
This will apply to expenditure incurred from 29 March 2022 until 30 June 2024.
8. The Government will invest $2.4 billion in a new Australian Apprentices Incentives System (AAIS), with targeted incentives to employers, apprentices, and trainees. a.
From 1 July 2022, the AAIS will focus government investment on priority occupations that face skills shortages and will be introduced in two phases.
b.
It will provide wage subsidies for employers in priority occupations and hiring incentives for employers in nonpriority occupations.
INDUSTRY NEWS
7
NATIONAL c.
d.
Apprentices and trainees in priority occupations will also receive a direct payment of up to $5,000 over two years to assist with the cost of undertaking an apprenticeship. In the second phase, the AAIS will shift to supporting occupations in demand, with a hiring incentive of up to $4,000 to be provided for employers in priority occupations, as well as a new Australian Apprentices Training Support Payment of up to $3,000 paid directly to apprentices in priority occupations.
9. Cash Flow support, the GDP uplift rate that applies to PAYG income tax and GST instalments will be reduced to 2 per cent for the 2022-23 income year. a.
This will mean lower tax instalments, delivering $1.85 billion in cash flow support for 2.3 million small to medium businesses, sole traders and others who use the instalment amount method.
10. Tourism sector - $60m Tourism Marketing Recovery Plan to attract international tourists following the reopening of Australia’s border. 11. A $2m employment and skills online platform will be established to match job seekers with tourism employers while also training and upskilling staff in tourism. Health 1. An additional $6bn will support Australia’s COVID-19 health response, including preparation for winter. 2. Medicare will cover new services such as Telehealth. 3. The Pharmaceutical Benefits Scheme threshold will reduce so people reach the safety net sooner. 4. Mental health services receive an extra $547m. 5. The National Disability Insurance Scheme (NDIS) will provide $33.9bn to over 500,000 Australians in 2022-23, growing to $44.6bn in four years.
6. Education
3. Rural
1. Additional $3.7bn will boost skills training in priority areas.
1. $1.3bn will improve regional telecommunications.
2. Support for apprenticeships will grow by $2.8bn over five years.
2. $150.3m will support medical training in regional and rural Australia.
3. $2.2bn to support university and industry partnerships and $52.8m to help build life and employment skills in disadvantaged young Australians. Sustainability 1. $1bn allocated to protect the Great Barrier Reef and $170m is earmarked for threatened species, habitat restoration and tree planting. 2. $26.8m will improve conservation and management of Australia’s national parks and $839.9m will support research and environmental management of Antarctica. 3. $192m will improve environmental regulation. 4. $83.1m will build waste and recycling capabilities. Women 1. $1.3bn will be spent on ending domestic violence against women and children. 2. $330.6m has been set aside for female health. 3. $482m to help women advance their careers, of that $56.2m will assist women transition to jobs in technology and manufacturing. $40.4m will support more women into senior roles and leadership positions. 4. $18.5m will progress gender equality in the workplace and reduce the gender pay gap. Manufacturing 1. Additional $1bn in investment towards the Modern Manufacturing Strategy. Half of this additional funding will support manufacturing activity in regional Australia. 2. The government will establish a mRNA vaccine manufacturing capability in Victoria, providing priority access to mRNA vaccines, supporting research, and preparing Australia for possible future pandemics.
3. $55m will boost aeromedical outreach services to reach isolated locations. 4. $7.4bn will increase water security. 5. The government will establish up to 20 new childcare services in regional and rural areas. Defence 1. Defence personnel will grow by 18,500 by 2040. 2. More than $10bn has been allocated to future naval infrastructure 3. $3.5bn for up to 75 new tanks and armoured vehicles. 4. The Budget earmarked an investment of $9.9bn in Australia’s intelligence and cyber capabilities. 5. An extra $257.1m has been set aside for anti-terrorism and serious and organised crime prevention. Aged Care 1. Spending on aged care will grow to $29.8bn in 2022-23. There are more home care packages, extra care time per day for older Australians in residential care and new training places for aged care workers. Infrastructure Spending 1. Diversify growing regional areas, including through $7.1 billion for transformative infrastructure projects, including in four regions primed for growth. a.
This includes committing to build $17.9 billion of priority road and rail infrastructure.
2. A new $2 billion Regional Accelerator Program will be created to drive growth and productivity in regional areas. 3. $6bn in disaster relief and recovery as a result of the floods in Queensland and New South Wales. 4. $1.2bn will be spent to develop Australian made satellites and enhance our space capability.
8
INDUSTRY NEWS
NATIONAL
MGA TMA Annual Wage Review
In preparation for the development of a significant Annual Wage Review submission for the Fair Work Commission (FWC), MGA TMA has surveyed and researched our members around Australia. This survey and research activity helps gauge members current economic status to ascertain the effect of an imminent wage increase on their businesses. The FWC receives several submissions from various employer groups, the governments, the unions, and employers leading up to each annual wage review. MGA TMA lodged our Annual Wage Review submission with the FWC in early March 2022. The FWC will consult with MGA TMA and many others in early May and will announce the wage rise decision in late May, effective 1 July 2022. The MGA TMA submission presented the Commission with facts, evidence and data that demonstrate the need for restraint in respect of minimum award wage increases for the independent retail sector to survive. Our research indicated that members could not absorb any increase to the minimum wages in the General Retail Industry Award (GRIA) and the Timber Industry Award (TIA) in 2022. MGA TMA pointed out that COVID-19 has dominated the 2021 economic landscape, with independent businesses in every State being subject to lockdowns, restrictions, and the COVID-19 virus itself. Small businesses occupy a vital role in their communities, and they purchase products from local growers and producers. MGA TMA stated members are regarded as very important contributors to the retail industry despite their size. Our industry sector consists of mainly small and family-owned businesses and employs 12,000 people in both city and regional areas all over the country. Collectively, they make a vital contribution to the Australian economy.
Extract from the MGA TMA submission Independent retailers are resilient and have survived the difficulties of engaging in business despite the significant wage increases of 11.05% during the period 2017-2020 and the recent increase of 2.5% on 1 September 2021, as well as the .05% increase in Superannuation guarantee. Independent retailers have even survived the threats of competition with larger ‘chain’ stores which have increased in number over recent years.
mga.asn.au | June 2022 | Edition 3
In 2021, independent retailers were also agile in adapting to complex COVID-19 restrictions and regulations, including contact tracing requirements and quarantine, deep cleaning, face masks, check-in, vaccinations, work permits and additional health and safety requirements. On the whole, they have managed to remain viable despite the many challenges faced in the past year. Many independent retailers have managed to survive, but others have not been so fortunate. This has been largely dependent on their location. It has been particularly difficult for retailers in regional and rural areas who, in addition to being harder hit by supply chain and staffing issues due to COVID-19, have had to contend with bushfires, drought, and floods. Many independent retail stores operating in regional, rural, or remote communities have been and will be disproportionately affected by wage increases because they face these additional challenges of natural disasters and COVID-19-related labour shortages. Independent retailers in Victoria, the Northern Territory, and Western Australia have also contended with statewide vaccination mandates which have resulted in unvaccinated staff being unable to attend work. Due to these mandates, businesses have lost long-term skilled staff with vital roles in their business such as a manager or supervisor, and some businesses have been forced to place their unvaccinated employees on paid leave and hire other employees to carry out essential duties left unperformed, which has caused considerable financial stress, particularly for small and medium familyowned businesses. MGA TMA has assisted our members with various matters during the past year as the COVID-19 pandemic continues. Supermarket, liquor, hardware, and timber goods have been high in demand, but the businesses were most
INDUSTRY NEWS
NATIONAL
affected by supply chain issues due to border closures, increased transport costs, COVID-19 outbreaks in distribution centres, and a lethargic international economy. The ability of independent retailers to compete was further impacted by the ‘chains’ establishing a substantial online retailing presence - an option simply not viable for smaller businesses. Fortunately, independent food retailers have been recognised as ‘essential’ or ‘critical’ retailers by state governments and have been able to continue operations during lockdowns.
support any increase to the minimum award wages in 2022. We await the next steps in the process which is to engage in with the FWC in early May 2022. Thank you to all who participated in the Annual Wage Review survey and research conducted by MGA TMA. Your contribution and insights have been invaluable.
They have provided vital goods and services for their communities by supplying essential goods and employing local staff. However, they face additional challenges from a workplace health and safety perspective, to keep their staff and customers safe from the largely uncontrolled COVID-19 virus. Members also faced considerable backlash from customers and members of the public when required to implement government directions regarding face masks, check-in, and vaccination requirements, among other things. Despite their commitment to meeting health and safety obligations owed to workers and customers, independent retailers face an ongoing fear of worker’s compensation claims and rising premiums due to staff contracting COVID-19. This further compound the unique issues faced by retailers, particularly in the independent sector. Generally, the need for food commodities has been a saving grace for the food and grocery industry, and consumers’ perceived need to occupy time in lockdowns and during construction shut-downs has been the saving grace for the timber and hardware industry. Although small businesses were resilient and adaptive to the challenges of this year, it does not diminish the difficulties they faced in this unprecedented time. There is no immediate solution to the financial strain that small businesses have and will face, however a more conservative wage increase, or no increase at all, would provide at least some minimal relief. In conclusion, MGA TMA has stated that it does not
NEW
Each grape has a story to tell...
Please contact your De Bortoli Sales Representative for further information.
9
10
INDUSTRY NEWS
NATIONAL SOUTH AUSTRALIA
MGA Board meets in Adelaide From 23 to 25 March 2022, MGA’s Board of Directors met in Adelaide, South Australia – the first face to face Board meeting in the last twelve months and second in two years. Board meetings since the pandemic have been held by video conference.
In late February-early March, small businesses were affected by unprecedented and devastating heavy rain across northern New South Wales and Queensland. Covid-19 restrictions have been uncertain and different in each state over the past two years, disallowing Board members (Australian population) to travel freely as was the case prior to Covid-19. Board members were excited to reengage with our South Australian members face-to-face and grateful for the opportunity to not only conduct the Board meeting in Adelaide, but to also visit some outstanding food and grocery supermarkets. The Board meeting was conducted on Thursday 24 March and held in the Boardroom at the newly relocated Foodland House, now based on the corner of Frome and Flinders streets in Adelaide CBD.
against the two giants and German retailer. The independent sector in South Australia has a strong market share and competition is intense with food and grocery prices being the most economical in Australia.
MGA Board meets in Foodland House The Board of Directors conducted their meeting in the Foodland House Boardroom. This opportunity gave Foodland CEO, Franklin dos Santos, and Marketing Director, Chris Villani, together with Foodland Board Chairman, Sam Zucco, to present and discuss the vision and future growth objectives of Foodland in South Australia. Foodland has many exciting plans to help differentiate itself from the chains and Aldi.
MGA Board and Foodland executives
MGA President Debbie Smith, Foodland CEO Franklin dos Santos & Marketing Director Chris Villani
The new Foodland House is centrally located and has outstanding office facilities and amenities for Foodland staff and members to enjoy and be proud. Board members had very productive and rewarding days in Adelaide. Thank you to South Australian members and industry stakeholders for making us feel very welcome. South Australian members are performing an amazing job competing
mga.asn.au | June 2022 | Edition 3
MGA Board meeting held in Foodland House Boardroom with CEO Franklin dos Santos (centre) and Chairman Sam Zucco
INDUSTRY NEWS
11
NATIONAL SOUTH AUSTRALIA Congratulations to Foodland celebrating its 60th Anniversary this year. Foodland will predicate all business activities for the future on three main objectives – 1. Sustainability, 2. Growth, 3. Brand. The Foodland team has committed to reducing its carbon footprint in all stores, introducing waste and energy saving solutions to all Foodland members. Foodland aims to avoid waste going to landfill completely being part of the circular economy, and to significantly reduce reliance on energy through solar and energy reclaim solutions. Foodland’s emphasis will be to reduce the Group’s carbon footprint, driving business growth and endearing Foodland to environment-conscious South Australians. True to all independents, Foodland will continue to differentiate its offer with a commitment to support local fresh food growers and food producers, presenting customers with diversity of choice. This assurance will strengthen a local community eco system of small businesses, supporting each other and interdependent on each other. This local economic activity creates employment and a strong community culture which customers desire.
Romeos Foodland Rundle Mall Romeos Executive, Paul Romeo, met the Board at one of their most recent Adelaide CBD developments, Romeos Foodland in Rundle Mall. Paul showed the Board around the store and discussed various points of difference the store offers consumers. These include salad bar, sushi bar, flower store, patisserie and bakery, cheese room, home cooked take home meals and the list continues. Excellently designed, this central Adelaide food and grocery store lifestyle store with a full supermarket offer, as well as a café, is stunning, enticing Adelaide CBD workers and residents to shop at the store for daily food and grocery needs.
Romeos Deli: Paul Romeo (far right) with members of the MGA Board
Romeos Easter display
It was great to also meet up with Queensland’s Raelene Hopper, from the Hopper Group in the store. Raelene and her team were also admiring this remarkable store, searching for new food and grocery retail ideas for the Hoppers Group in Queensland. Romeos Bakery
Foodland’s mantra is “Unity is our Strength and our Diversity is our Strength”
INSPIRATIONAL INDEPENDENT FOOD AND GROCERY SUPERMARKETS Whilst in Adelaide the Board seized the opportunity to visit a number of state-of-the-art food and grocery supermarkets. The retail standards on show were outstanding, demonstrating why the independents are strong in South Australia and able to compete favourably with the chains and Aldi.
Romeos, Paul Romeo (right) with MGA board members Lincoln Wymar (left) & Ripple Parekh (centre)
Romeos Deli and prepared meals
L-R: Debbie Smith, Grant Hinchcliff, Terry Slaughter and Raelene Hopper, Hopper Group QLD
Romeos Sushi & Salad Bar
12
INDUSTRY NEWS
NATIONAL SOUTH AUSTRALIA
City East IGA The Board visited Theo Vlassis’s City East IGA Convenience Store in Hutt Street Adelaide. Theo’s store was adversely affected during the COVID-19 lockdown period but was able to sustain itself with local residents valuing superb take home meal solutions, as well as the strong convenient fresh food. Despite the small footprint, this store offers a vast range of food and groceries, as well as general merchandise. Locals have come to rely upon this store for their food and grocery needs. Drakes Warehouse front of building
Drakes Warehouse – Edinburgh
City East IGA Theo Vlassis (centre) with Debbie Smith (left) & Lincoln Wymar (right)
Theo Vlassis (far right) with Debbie Smith (center) & Terry Slaughter (right)
City East IGA Deli
City East IGA Deli
Almost three years ago Roger Drake embarked upon becoming a truly independent food and grocery operator, investing in a new state-ofthe-art wide range warehouse. The warehouse distributes dry, chilled, and frozen food and groceries, as well as general merchandise, to Drakes Family Supermarkets across Adelaide and South Australia. Located in Edinburgh on the outskirts of Adelaide, Drakes Supermarkets Warehouse boasts a highly trained and motivated workforce, as well as the latest in warehouse technology and efficiencies to support all stores with immediate, on time deliveries of goods. Roger Drake and the Warehouse Manager gave the Board a comprehensive tour of the Warehouse and its operations, explaining features of the operation and praising the people involved from day one, with the design, planning, and building of the warehouse. Congratulations to the Drake Family and staff for achieving this milestone in South Australia.
City East IGA front of store mga.asn.au | June 2022 | Edition 3
INDUSTRY NEWS
13
NATIONAL SOUTH AUSTRALIA
Drakes Family Supermarket Eyre
Drakes Warehouse Boardroom: MGA Board with Roger Drake front right)
Drakes Warehouse Roger Drake (2nd left) briefing
Not far from Drakes Supermarket Edinburgh Warehouse is the recently developed Drakes family Supermarket in the suburb of Eyre. Roger Drake met the Board in store and handed over to Store Manager, Craig Denengelse. Approximately 2,500 square metres in size with spacious aisles, this store boasts an offer that would delight any customer. This is a full-service supermarket with fresh departments, produce, meat, bakery, chicken, delicatessen, all well presented with an extensive range for customers. Craig explained the new concept store within a store is working well with consumers embracing the shopping experience – a special kombucha bar, popcorn dispenser, gelateria, Nonnas pasta bar and Little Kitchen for home cooked meals and snacks.
Drakes Supermarket Eyre Roger Drake (2nd left) & Board
Drakes Supermarket Eyre Health & Well Being
A wonderful local community store that the Drakes family can be proud.
Drakes Warehouse tour with Roger Drake
Drakes Warehouse racking
Drakes Warehouse Roger & Warehouse Manager briefing
Drakes Supermarket Eyre Little Kitchen
Drakes Supermarket Eyre Manager Craig Denengelse ( 2nd right) with Board
Drakes Supermarket Eyre MGA Board members
14
INDUSTRY NEWS
NATIONAL SOUTH AUSTRALIA
Cellarbrations bottle shop in Eyre shopping centre The Eyre shopping centre boasts a Drakes Family bottleshop bannered as Cellarbrations. The store stands next to the Drakes Family Supermarket and has been well received by the local community.
Drakes Celebrations Eyre
Owing to the restrictive South Australian packaged liquor laws, very few members have been able to acquire a packaged liquor license in South Australia. When members do obtain packaged liquor license “they do it superbly well” and more than compete with the “house brand heavy” chains stores. This bottle shop is magnificently conceived allowing customers to easily shop for their preferred beverage. Wines are organised into categories with many local South Australian wines stocked. There is an extensive range of packaged beers, wines, spirits, and ready to drink providing customers with the choice they
Drakes Celebrations inside store
have come to expect from independent bottle shops. The store is well presented and a credit to the operating staff. Each display and product layout initiative is deliberately designed to enhance a customer’s shopping experience and encourage them to return.
Drakes Celebrations Eyre Chiller
Chapley Family Saints Foodland in Salisbury The Board was recommended to visit the Chapleys Family Saints Foodland Supermarket in Salisbury.
Drakes Celebrations Eyre front counter
Drakes Celebrations Eyre Roger Drake & MGA Board
mga.asn.au | June 2022 | Edition 3
Chapleys Saints Foodland Salisbury front entrance
INDUSTRY NEWS
15
NATIONAL SOUTH AUSTRALIA
MGA Board with Saints Store Manager Alex Moster
Chapley Saints Cheeses
renewable energy. A roof full of solar panels power this store. Inside the store a large display TV screen indicates the amount of solar energy generated and result saving of a quantum of trees or kilometers travelled. This initiative is not only an instore saving but demonstrates to customers that the store is committed to caring for the environment and our planet. Congratulations to the Chapley Family, Store Manager, Alex Moster, and all the Saints Foodland staff for presenting an unforgettable customer shopping experience.
Chapleys Saints committed to renewables
Chapleys Saints solar savings
Located in the Salisbury Shopping Centre complex, this store is a drawcard for the locals, as well as many customers coming from many kilometers around the area.
Chapleys Saints fresh Food Hall
The store has been laid out to provide maximum convenience and comfort for customers in terms of space, lighting, temperature, and ambience, whilst boasting one of the best fresh food offers in South Australia. The range of local and imported cheeses, meats, charcuterie, delicatessen items, bakery items is extensive providing a significant selection to customers. The bakery area has a café with full in-house seating, offering freshly baked pizzas, pastries, cakes, and coffee.
Chapleys Saints Deli
This incredible store, employing over two hundred staff and managed by Alex Moster, has set new retail standards, with a superb range of fresh and dry food and grocery products readily available to local customers.
Every aspect of the store reeks of class and quality in a way that customers feel very welcome and comfortable. Staff are all trained in customer service and go to great lengths to make customers feel welcome. A feature of the store is its commitment to waste reduction, recycling, and
Drakes Family Supermarket Fulham Gardens When the Drake Family learned there would be a state-of-the-art Woolworths store added onto the Fulham Gardens Shopping Centre where a Drakes Family supermarket resided, the Drakes team sprung to action to future proof the store against expected fierce competition from the Woolworths store. After surveying local customers to ascertain their needs and wants, the Drakes team embarked upon a complete refurbishment of the store. Boasting the longest and most stocked delicatessen in the southern hemisphere, the Drakes team added a store within a store concept by including a full self-serve multi-flavoured Kombucha bar, a popcorn and flavoured popcorn dispenser, a Nonnas pasta bar, an extensive Little Kitchen for take home meals, an Italian gelateria bar, a selfserve butchery, a local take home meals section and an amazing bakery section all resulting in offering customers an exceptional and unique customer shopping experience.
16
INDUSTRY NEWS
NATIONAL SOUTH AUSTRALIA This store delivers an exceptional customer shopping experience that has stood up against the powerful Woolworths some fifty metres away.
Drakes Fulham Gardens trolley bay & entrance
Drakes Fulham Gardens Popcorn
Drakes Fulham Gardens Nonnas Pasta
Drakes Fulham Gardens little kitchen
Drakes Fulham Gardens Kombucha
Drakes Fulham Gardens
Drakes Fulham Gardens Deli
mga.asn.au | June 2022 | Edition 3
Drakes Fulham Gardens Gelateria and store manager serving
INDUSTRY NEWS
17
NATIONAL
ACCC to monitor petrol prices following cut in fuel excise Given the fast-increasing price of motor fuels, owing to global supply issues associated with the war in the Ukraine and subsequent trade sanctions imposed upon Russia, fuel costs at the bowser have sharply increased to levels never before seen in Australia. Fuels prices of $2.20 per litre or more are simply unsustainable for families. On 29 March 2022, Treasurer Josh Frydenburg made a budget announcement of the Government’s decision to immediately allow a sixmonth reduction in fuel excise from the 30 March 2022. Under direction from the Federal Government, the ACCC monitors fuel prices, costs and profits and reports on these each quarter. The ACCC can compel refiners, importers, terminal operators, wholesalers, and retailers to provide information relating to fuel prices where necessary.
“We expect that fuel retailers will pass on the cut in fuel excise to reduce the price at the bowser as soon as possible, as existing petrol stock levels are used up,” ACCC Chair, Gina Cass-Gottlieb said. “In light of Treasure Frydenberg’s announcement, our petrol team will focus on this price monitoring work for the next six months to determine how retailers are passing through the excise reduction to consumers.” “We will contact petrol retailers to set out our clear expectations that the savings are passed on to consumers and advise them that we will be monitoring their margins. We will also continue to inform consumers of retailer behaviour.” “As these changes flow through to prices at local servos, this is a good time for consumers to look around and shop at those retailers who have already passed on the cut in the excise to their petrol prices,” Ms Cass-Gottlieb said.
“If retailers make false or misleading statements to consumers that they have passed on the savings when they have not, the ACCC will not hesitate to take appropriate enforcement action,” Ms Cass-Gottlieb said. It is important to remember that the major component of wholesale prices is the international price of petrol, which is largely influenced by the continuing fluctuations in international crude oil prices. The changes in the AUD/USD exchange rate also influences the petrol prices in Australia. Any change in these factors would mean that the change in petrol prices may differ at certain times from the reduction in excise of 22cpl. Source - ACCC
More major companies stop Russia supply Nestle is to halt the sale of a wide range of brands in Russia, including KitKat chocolate bars and Nesquik, amid Ukrainian President Volodymyr Zelensky’s criticism of the world’s biggest food company for its continued presence in the country. The products affected, also including pet food and coffee, make up the “vast majority of volume and sales” in Russia, which totalled 1.7 billion Swiss francs ($1.82 billion) in 2021, a Nestle spokesperson said. The Swiss company had already halted non-essential imports and exports to Russia and had also stopped all advertising and capital investment in the country and said it would donate profits from Russia to Ukrainian relief efforts.
Western companies with a presence in Russia have been trying to provide essential food and medicine while also facing pressure to cut all ties with Moscow. More than four hundred companies have withdrawn from Russia since it invaded Ukraine on 24 February 2022, leaving behind assets worth hundreds of billions of dollars in aggregate. Zelensky said Nestle had not done enough to live up to its “Good Food, Good Life” slogan by continuing to operate in Russia. Russian President Vladimir Putin sent his troops into Ukraine on what he calls a “special military operation” to demilitarise and “denazify” the country. Ukraine and the West say Putin launched an unprovoked war of aggression.
Nestle, PepsiCo, Unilever, and Procter & Gamble, are continuing to provide basic items for nutrition and hygiene in Russia, such as milk and diapers. French rival Danone on Wednesday said it would continue local production in Russia of essential dairy and infant nutrition products. Danone said it had ceased all other imports and exports - including Evian water - and halted all investments, including advertising, brand activations and consumer promotions in Russia. The company also said it was taking no cash, dividends, or profits from its Russian business. Source - Reuters 23/03
18
INDUSTRY NEWS
NATIONAL
National Small Business Summit Perspectives. Policy. Purpose. Recently MGA TMA attended the Council of Small Business Organisations of Australia (COSBOA) National Small Business Summit in Darling Harbour, Sydney on 5 and 6 April.
Small Business. 3. The Hon Richard Marles MP, now
MGA TMA representatives were Debbie Smith (President), Grant Hinchcliffe (Vice President), Ripple Parekh (Director), and Mark Paladino (Business Development).
The Regulators
Key matters arising were: 1. Matthew Addison, Chair of COSBOA, spoke about how COSBOA was able to have a strong seat at the table with key State and Federal bodies regarding the pathways out of COVID-19, as well as the recent floods and impact on small businesses recovery. 2. The Hon. Matt Kean, NSW Treasurer and Minister for Energy officially opened the Summit and acknowledged small business’s driving force to the economy. He addressed “both the gender pay gap and the gender investment gap which sees less early-stage capital flowing towards women business owners.” COSBOA has a female entrepreneurial project underway to drive the initiative for Women in
The Hon Richard Marles MP, now Deputy Prime Minister of Australia and the Minister for Employment.
Deputy Prime Minister of Australia and the Minister for Employment, examined small business as the backbone of the Australian economy which he stated has been taken for granted by the former Morrison government with a “failure in national leadership”. “Small Business has community at the center of its being” and Labour would address administrative burdens, need for cash flow and predictability, and deliver a better deal for small business. Solutions include payment terms and Least Cost Routing to ensure small business receives fair share of Government procurement. 4. The Regulators session
The Regulators
The Hon. Matt Kean NSW Treasurer and Minister for Energy.
mga.asn.au | June 2022 | Edition 3
Facilitated by Alexi Boyd, CEO COSBOA, who welcomed Anna Longley, Assistant Commissioner - General Counsel of Australian Charities and Not-For-Profits; Danielle Press, ASIC Commissioner;
Sandra Parker, Fair Work Ombudsman; Jeremy Hirschhorn, Acting Commissioner of Taxation and Gina Cass-Gottlieb, Chair of ACCC. 5. The former Attorney General and Minister for Industrial Relations Senator the Hon. Michaelia Cash, spoke via video message about the importance of small business to the Australian economy, including support and JobKeeper payment of “$314 billion in total economic support measures.” 6. An honest chat with the Australian Council of Trade Unions Peter Strong, former CEO of COSBOA led this session with Sally McManus, Secretary, Australian Council of Trade Unions, to talk about unions in the lead up to the election. “For the union movement the most important thing is fairness. For the last 10 years we have stalled, working people, haven’t moved ahead like big business has. We would essentially like to see more sharing in the wealth of the nation.” Ms McManus outlined two main goals: Better job security - in relation to the shifting workforce and rise of casual roles and less permanent job placements. “We aren’t saying we need to get rid of casual workers, nor are we looking to take away the choice from
INDUSTRY NEWS
19
NATIONAL people. It’s more the jobs that are ongoing, these jobs need better security.” Making sure pay keeps up to the cost of living – the cost of living has increased, but pays are going backwards. “We would like to be in a position to be investing and reskilling in our own people. We don’t want our economy to rely on only young people and visa workers.” “We should be more self-sufficient as a country,” said Ms McManus. Ms McManus also discussed how the ACTU and COSBOA should aim for a bipartisan solution to find common
Sally McManus, Secretary, Australian Council of Trade Unions, seated left.
ground. 7. Mental health, wellbeing, and small business Julia Gillard, Former Prime Minister of Australia & Chair of Beyond Blue, started this session sharing key insights into small business owners’ mental health and how Beyond Blue continues to support individuals and workplaces. “Research commissioned by the Department of Treasury in 2020, showed almost 1 in 3 business owners reported a diagnosis of stress, anxiety, or depression in the last 12 months. Beyond Blue has received 1.7m session on digital site, and clearly lockdowns over time have increased demand for services and support. Beyond Blue recommend a number of things small business owners can do to create mentally healthy workplaces to reduce stress and support themselves and their employees, including developing a wellbeing plan. NewAccess for Small Business Owners https://www.beyondblue. org.au/get-support/newaccess/
newaccess-for-small-businessowners NewAccess for Small Business Owners is available nationally by phone or video call. Call 1300 945 301 MGA website https://www.mga.asn.au/ membership/mental-health-support 8. Working together - our recovery is leading the world The Hon Stuart Robert MP, Former Minister for Employment, Workforce, Skills, Small and Family Business, opened the Summit on day two, reiterating the support government have given and continue to give,
The Hon Stuart Robert MP, former Minister for Employment, Workforce, Skills, Small and Family Business.
small businesses. Stuart Robert outlined the initiatives in the budget to support small businesses to grow, innovate and create more jobs. The 2022-23 Budget contained an additional $25.2 million for initiatives that support small businesses, including $8 million for the Australian Small Business and Family Enterprise Ombudsman to work with service providers to enhance small business capability. Small Business investment in digital moderisation and upskilling vital for it’s future and will have tax support benefits on tech aligned projects and work. Payment terms visibility on the radar with a portal to view payment terms of big business 5 days terms for E-invoicing payments for Government contracts from 1sy July and 20 days for normal terms. 9. A competitive marketplace is vital for the consumer – MGA representation facilitated by
the Hon Bruce Billson GAICD, Australian Small Business and Family Enterprise Ombudsman, this panel session with Fred Harrison, CEO, Ritchies Supermarket; Alan Tse, Co-Founder Altina Drinks; and Jo Palmer, Founder, Pointer Remote; discussed competition between big and small business in Australia and its importance to the consumer. “The law doesn’t protect competitors, it protects competition,” said Ms Palmer. Mr Harrison was adamant that it’s important to competition in Australia that the independent voice be heard. His key points were to “never let any player get to a point where they own 50% or more of the market,” and “to give consumers a choice” [in product]. Ritchie’s are proudly independent. Price is critical in delivering differentiation and is essential to consumers today. “During the pandemic Independents stood proud, with a strong distribution model, it takes every brand to feed the country”. Small business needs government support on competition matters so small business can thrive, have confidence to invest in people and renovations, to provide for an even better shopping experience. “Ritchie’s would never consider a sale to Coles or Woolies. We would sell to other Independents through Metcash, to keep this within our sector. 1.4% market share would shift to the chains overnight if Ritchie’s were sold. This will never happen, we are committed to the Independents”.
L-R:Bruce Billson GAICD, ASBFEO. Fred Harrison CEO Ritchies. Jo Palmer, Founder, Pointer Remote. Alan Tse, Co-Founder Altina Drinks
20
WELCOME NEW CORPORATE PARTNER
NATIONAL NATIONAL
Anything you need automated, we can deliver And anything you deem too complicated, we can simplify with either our off the shelf web based software or with our team of passionate technology experts. As a Software-as-Service business we have a unique ability to solve complex compliance and automation problems exactly as needed, while pricing our platform using SaS pricing and ultimately keeping costs low. The solutions we provide were made to simplify your day to day working experience for the better and reduce risk of errors. With many high profile customers across a range of industries such as logistics, manufacturing, resources, retail and more, we deploy affordable, scalable, rapid deployment solutions to solve specific compliance needs across four primary pillars - Health, Safety, People, and Assets. Our solutions are secure, OAIC compliant, and we integrate or work alongside existing systems tailored to your specific needs. Alongside our off the shelf products for secure site management, vehicle checklists, workforce time tracking and more, we are looking to expand into new areas within grocery and retail by creating an inventive space for our customers to bring us their compliance and automation problems and have us solve them. With Comply Group Labs, we give our customers the opportunity to work closely with us to fulfill any compliance needs they require to better enhance their business. A number of the products we have created vary from test tracking to checklisting solutions that have enabled businesses to minimise the use of
mga.asn.au | June 2022 | Edition 3
paper documentation. Currently, our technology is powering 8000+ locations across the country for customers of all sizes including Medibank, Federation University, Parliament of Victoria, City of Melbourne, Border Express, PACCAR, RACV, and many more.
Please get in touch for a demo of our extensive platform, or to find out more about how we can solve your specific compliance and automation projects as part of Comply Group Labs.
We’ve designed simple, accessible software that has successfully processed interactions with millions of people of all ages, devices, and technical capabilities, and we pride ourselves in creating a seamless system that can better fulfill our customer’s requirements without compromise.
Brendan White brendan@comply.group
Rasyid Ibrahim rasyid@comply.group
CORPORATE PARTNER ADVERTISING
21
VICTORIA
Introducing Hubert Estate, Yarra Valley’s newest must visit destination Resolutely natural and elegantly evolving, Hubert Estate is Victoria’s latest highly anticipated destination that redefines the idea of a regional food and wine destination. Nestled in the scenic wine corner of the Yarra Valley, Hubert Estate and the St. Hubert’s Cellar Door is the convergence of Ryan Hospitality Group, led by Gerry and Andrew Ryan (The Prince, Mitchelton Winery & Nagambie Brewery & Distillery) in collaboration with leading global winemaking company, Treasury Premium Brands (TPB), who have combined their expertise to create an unparalleled guest experience. Set against the liminal Australian landscape, Hubert Estate has a rich
culture to explore, taking visitors on a food, wine and cultural journey that will have guests eagerly planning when they can next escape the city and unwind with friends and family against the backdrop of the charming property. Utilising the existing St Hubert’s winery footprint, the site has undergone a complete redevelopment with a dual-level Estate designed by notable architectural and interior design studio Cera Stribley. The Estate houses a Modern Australian and Euro-inspired restaurant (Quarters), a long-established art gallery immersed in Indigenous culture (Hubert Gallery of Art), a remarkable event space with a backdrop of the Yarra Valley (Harriett), a revamped Cellar Door for St Hubert’s as well as a boutique wine store (Notes), designed
by award winning design and brand consultants, Landini Associates. Plans are already underway to enhance the guest experience further by adding an architecturally designed hotel and wellness centre to be built by 2024. Ryan Hospitality Group’s Andrew Ryan is proud to pay homage to the history of the iconic wine region, whilst celebrating what lies ahead, moving into a new era with the recently developed Hubert Estate. “Together with St Hubert’s, we are proud to introduce Hubert Estate, which brings to life a stunning, multi-purpose
wineries in the region, St Hubert’s helped position the area as a premium wine producing location and was a champion of the Yarra Valley’s wine Renaissance in the 1960s,” said Lilley. “This is a progressive step in the journeyof St Hubert’s. As one of the pioneers of premium winemaking in the Yarra Valley, we are thrilled to create an innovative cellar door experience that will set a benchmark for tasting room experiences and help drive visitation to the region as a whole,” added Lilley
destination that has an incredible history set for new beginnings for locals and visitors alike,” said Ryan. “Winemaking will always be close to our hearts, but with the Estate we’ve broadened our table. Pull up a chair for lunch at Quarters, celebrate special moments with Harriett, or immerse yourself in Indigenous culture at the Hubert Gallery of Art. We designed the Estate to complement the landscape, and we’re inviting guests to find their their place in the picture with us”, added Ryan. Treasury Premium Brands’ Chief Marketing Officer & General Manager Sales ANZ, Angus Lilley, echoed Ryan’s sentiments. “Established in 1862 as one of the first
The Yarra Valley’s newest must visit destination, Hubert Estate is now open for visitors to enjoy and experience first-hand. For further information and to book, please visit https://hubertestate. com.au/.
22
INDUSTRY NEWS
NATIONAL
UK Food and Grocery - Pandemic e-commerce after effect Two years ago today, Boris Johnson plunged the UK into lockdown. With non-essential shops shuttered, the supermarket became the only place consumers could shop and the grocery sector’s vital role of keeping the nation fed was brought into sharp focus. But after those first few weeks of product shortages of everything from toilet paper to self-raising flour, a new normal of grocery shopping emerged.
experienced at the height of COVID-19 lockdown periods, however, he believes it will remain notably higher than prepandemic levels.
One of the biggest trends of the pandemic has been the significant rise of online shopping.
Meanwhile, Mintel forecasts that the online grocery market will be worth £22.4 billion by 2025, a £4.9 billion increase over pre-pandemic forecasts.
This is true across all of retail, including grocery. Ecommerce accounted for 8.7% of all grocery sales before the pandemic hit in February 2020, by February last year it peaked at 15.4%, according to Kantar Worldpanel data.
However, online sales are starting to fall as shoppers move beyond COVID-19. Ecommerce grocery sales were down almost 20% in the latest Kantar figures for the 12 weeks to 20 February. 13.3% of all grocery sales, online is still notably ahead of pre-pandemic levels. Asda Senior Vice President of Ecommerce, Simon Gregg, believes the online market will remain strong: “Critically, the online grocery market has still doubled in size versus prepandemic levels.” Gregg says that although Asda’s growth levels have stabilised since the peak of the first lockdown, where growth exceeded 100%, “we continue to see consistent numbers of weekly shoppers at levels more than double those seen in early 2020.” IGD’s Senior UK Retail Analyst, Patrick Mitchell-Fox, does not expect online grocery shopping to quite hit the peaks
mga.asn.au | June 2022 | Edition 3
Speedy deliveries have taken off in a big way with people now expecting to receive grocery orders in minutes rather than day. To handle the surge of orders, supermarkets have had to make drastic changes, such as dedicating sections of their carparks for order pickup, converting some stores to fulfill online orders and partnering with speedy fulfilment experts from Deliveroo to Just Eat. Gregg believes this trend will continue as normality resumes. “The pandemic has changed the way that people shop. As lives become busy again, we continue to see
customers selecting rapid delivery for top-up shops and essentials,” he says. Asda is looking to cater for the growing audience shopping for grocery ondemand and is seeking ways to give customers even more choose. It is expanding the number of locations where it offers grocery on Uber Eats and Just Eat, which Gregg says accounts for “a significant percentage of online grocery sales”. The grocer is also rolling out its own Express online delivery service, where shoppers can receive their orders made from Asda’s full online range in as little as an hour beyond the 149 stores it currently offers the service in. Source - Retail Gazette 23/03
INDUSTRY NEWS
23
NATIONAL
Working together to fight organised crime and protect our way of life – Illicit Tobacco On 18 March 2022, former Minister for Home Affairs, Karen Andrews, chaired the second meeting of Commonwealth, State and Territory Ministers with responsibility for policing, law enforcement and counter terrorism, discussing ways to crack down on serious and organised crime threatening Australians and our way of life.
Former Minister Andrews stated, “We cannot let transnational, serious and organised crime disrupt our way of life or become a handbrake on our economy. Now that our borders are open once more, the criminal networks devoted to trafficking illicit drugs and weapons, child sexual exploitation, and other serious crimes are looking to once more target Australia in earnest.” After much lobbying and advocating by MGA and many other organisations, illicit tobacco was addressed at this forum as being a serious threat to the viability of our members and other businesses, not to mention the loss of hundreds of millions of dollars in Commonwealth Government taxes lost. The meeting addressed a number of topics as listed below but agreed upon a National response to illicit tobacco as follows. Ministers agreed to work together to consider opportunities to coordinate enhanced efforts to combat illicit tobacco, including in response to recommendations of the Parliamentary Joint Committee on Law Enforcement (PJCLE) Inquiry into Illicit Tobacco.
Ministers agreed to reconvene in six months to review progress against the issues discussed and to consider collaborative approaches to other important national security issues. Other matters discussed include
• Countering Violent Extremism (CVE) Prevention Strategies
• National Wastewater Drug Monitoring Program
• Expansion of the ACIC examiner capability
• National Criminal Intelligence System update
• National Consistency of Exclusion
Orders for Casinos and Racing Venues
• National Plan to Combat Cybercrime and Cybercrime Capability Fund
• Regulatory and operational reforms and initiatives in relation to licences and illegal firearms
MGA welcomes Minister Andrews response to the significant illicit tobacco crime network in Australia and encourages Governments in all jurisdictions to be vigilant in combatting this insidious business destroying phenomenon. The Hon Karen Andrews MP, former Minister for Home Affairs
24
INDUSTRY NEWS
NATIONAL
National Plastics Recycling Funding MGA TMA has strongly advocated for members to adopt the principles of a circular economy. Waste is very costly for members to dispose of and not environmentally responsible if it goes to landfill. The principles of a circular economy guide us to not direct waste into landfill but to recycle and reuse waste over and over again.
MGA TMA welcomes the former Morrison Government’s investment into National Plastics Recycling. The former Morrison Government is driving new investment in sophisticated recycling technology and infrastructure, boosting the Recycling Modernisation Fund to $250 million, with a
$60 million new funding stream targeted at advanced plastic recycling technology that will tackle problematic plastics like bread bags and chip packets. The investment, included in this month’s Federal Budget, builds on the $190 million Recycling Modernisation Fund (RMF) which is driving a $1 billion transformation of the waste and recycling sector. Former Prime Minister Scott Morrison said the Government is committed to stopping harmful plastics from entering our oceans, choking up our waterways and destroying our marine life. “This new funding stream, dedicated to helping solve the problem of hard to recycle plastic waste, demonstrates our determination to invest in Australian industry, to growing the recycling sector and to creating a stronger economy and stronger future for Australia,” the former Prime Minister said. “Three years ago, I made a commitment at the UN to stop plastic waste from entering our oceans, a commitment that has sparked a recycling revolution in Australia. “That same commitment has supported investment in state-of-the-art recycling technology across Australia, technology that protects the environment, boosts the economy and creates jobs.” Former Minister for the Environment, Sussan Ley, said the new round of funding will fast-track access to new innovative waste technology, supporting a pipeline of plastic products ReMade in Australia. “The time to act on hard to recycle plastics is now - fast-tracking advanced recycling infrastructure will help the industry recycle more of the 1 million tonnes of plastic packaging waste we generate every year, creating valuable new products while keeping problematic waste out of landfill,” Minister Ley said. Source - Australian Government News 21/02
mga.asn.au | June 2022 | Edition 3
INDUSTRY NEWS
25
NATIONAL
It’s that time of year again -
COVID-19 tests and fringe benefits tax • From 1 July 2021, if you provided
(or reimbursed the cost of) COVID-19 tests to your employees for work purposes from this date, you may be able to reduce the taxable value by applying the otherwise deductible rule.
• If COVID-19 tests are the only
fringe benefit you provided to your employees, and you have reduced the taxable value to nil, you will not have a FBT liability and will not be required to lodge a FBT return.
The existing FBT record keeping requirements apply. You will need to keep all records relating to how you calculated the taxable value of benefits, including the necessary declarations. For more information, visit https:// www.ato.gov.au/General/COVID-19/ Support-for-businesses-and-employers/ FBT,-COVID-19-tests-and-the-otherwisedeductible-rule/
Claiming COVID-19 tests From 1 July 2021, employees can claim a tax deduction for COVID-19 tests they purchased for work purposes. To claim a deduction for the cost they incurred for a COVID-19 test, they must have:
• used the test for a work-related purpose
• paid for a qualifying COVID-19 test, such as a PCR or RAT
• paid for the test themselves (that is,
their employer didn’t provide the test or reimburse them for the cost)
• kept a record to prove they incurred
the cost (usually a receipt) and were required to take the test for work purposes.
Employees can only claim the workrelated portion of their expense on COVID-19 tests.
2022 Fringe benefits tax time Some important things to be aware of and help you lodge:
• If you make a car available to your
employees for private use, you may be providing a car fringe benefit. If you are not sure, there are a number of resources available on the ATO website to help you decide – including a car fringe benefit video series and webinar sessions.
Consider the exemptions and concessions you may be eligible for, which can help to reduce the amount of FBT you pay. For more information, visit ato.gov.au/ FBTaxTime
Small business Fuel tax credit rates have changed If you claim fuel tax credits on your BAS, remember, the rates changed on 1 February and 30 March. If you lodge quarterly, 3 different rates may apply to your BAS. Use the ATO’s fuel tax credit calculator to make it easier to apply the right rates: https://www.ato.gov.au/ Calculators-and-tools/Fuel-tax-credittools/ Disclosure of business tax debt As part of the disclosure of business tax debts measure, the ATO continues to contact businesses who meet the criteria for disclosure. The ATO has also recently disclosed a small number of debts to a credit reporting bureau (CRB). If you have received an Intent to disclose or even a Debt disclosed notice, contact the ATO immediately to discuss action you can take to have your information removed from or prevented from being shared in a credit report.
ATO Assistant Commissioner Claire O’Neill urges taxpayers to “engage with the ATO early to avoid the risk of disclosure which begins when your total debt is over $100,000 and remains unpaid for 90 days.” For more information, visit ato.gov.au/ disclosurebusinesstaxdebt. ATO automatically pays interest on early payments Since March 2022, the ATO has been automatically identifying, calculating, and paying interest on early payments (IEP). This process applies to eligible early payments you made from 1 July 2021. Generally, payment of IEP will be made within two weeks of the due date of the tax liability. Please ensure you have provided up-to-date details of your financial institution account so the ATO can make IEP payments electronically.
Superannuation Super guarantee payments due 28 April The super guarantee due date is 28 April for the quarter ended 31 March. This deadline cannot be extended. Make sure you are ready to pay the right amounts to the right funds by the due date. Changes to super for under-18s From 1 July 2022, employees who are under 18 will be eligible for super if they work more than 30 hours in a week, regardless of how much they are paid. This is because the $450 per month threshold for super guarantee is being removed for all workers. Check your payroll and accounting systems are updated closer to 1 July to correctly calculate your employees’ super guarantee payments. For more information, visit https:// www.ato.gov.au/Business/Super-foremployers/?=redirected_payingsuper
26
INDUSTRY NEWS
NATIONAL QUEENSLAND
Queensland Small Business Industry Roundtable On 7 April 2022, Maree Adshead, Queensland Small Business Commissioner and Di Farmer, Minister for Small Business, held a Small Business Industry Roundtable meeting that MGA attended. Several matters of importance to members were raised and discussed including the drastic shortage of labour and workers. COVID-19 testing, isolation, and close contact rules have meant workers are very difficult to secure. Some members are opening their stores later, closing earlier and closing departments down such as delicatessens, bakery, and meat. Minister Farmer and Commissioner Adshead were aware of the challenges members are facing and have offered to find solutions to support all small business industry sectors. Small Business Commissioner Maree Adshead was pleased to confirm that the services the Small Business Commissioner and her team provide have been expanded and made permanently available to small businesses, with the passing of the Small Business Commissioner Bill 2021 through Parliament in March
2022. Following Royal Assent, the new legislation will take effect on 3 May 2022. Small Business Commissioner, Maree Adshead, reported since starting nearly two years ago, her office has:
• received roughly 7,500 direct
contacts and enquiries from small business
• case managed nearly 1,000
business tenancy disputes and delivered almost 600 free mediations
• welcomed 30 Queensland councils
into our Small Business Friendly program which is helping to boost awareness of small business needs, increase support, and reduce administrative and regulatory red tape burdens.
Small Business Commissioner Adshead and Minister Farmer have been and continue to, advocate on COVID-19 related issues affecting small business. They are aware of a range of concerns regarding the isolation rules for close contacts, mandatory vaccination requirements for workers in healthcare settings, and vaccination requirements for customers of hospitality and other venues. They have been regularly raising these concerns and other issues with both the Minister for Employment and Small Business and Queensland Health to ensure members are heard.
• For businesses impacted by the
recent flood events in the South-
Maree Adshead Qld Sm Bus (right) & Rebekah Gold Small Business Industry liaison group 5 April 22
mga.asn.au | June 2022 | Edition 3
East, Maree’s team has secured support for flood affected small businesses, including grants, loans and other many helpful pieces of advice made available on the SBC’s website.
Di Farmer Small Business Industry liaison group 5 April 22
CORPORATE PARTNER ADVERTISING
27
NATIONAL
Tips to prepare for your insurance renewal As it does every year, your insurance may be due in the coming months. So, with our many years of experience in placing Supermarket’s insurance programs and having been partnered with the MGA for over 3 years, we thought what better time to share with you some things to think about with your upcoming renewal. This includes how you may be able to make your business jump off the page and ensure you have the best deal possible. Early preparation (Start early): Begin to strategize and collate renewal submission information at least three months before renewal. With a busy marketplace with many risks, if you leave this too late it can lead to many markets not having the time to look at your submission properly.
Look at your process and analyse them: Insurers need to see that you generally are working with them to help mitigate risk. The key things we see make a real difference is: 1. Good cleaning practices around spills and cooking areas 2. Fire Protection program that is suitable for your premises 3. Regular thermographic scanning to ensure any problems with electrical winning can be fixed. This can really impact particularly older buildings as it shows you are aware of one of your biggest exposures 4. Incident processes and staff training on recognizing and mitigating incidents 5. A survey of your risk can help showcase your risk from a risk management side
Take action to problem areas Survey’s, thermographic scans, and claims can point out several problem areas for you in your business. Most insurers will understand some of these fixes take time, but what they like to see is a move to fix the most penitent ones quickly. This could be: 1. Non-slip flooring in potential issue zones 2. Stairwells reflective tape on steps to help highlight edges 3. Wiring looked at straight away and fixed A proactive client will always have an easier time both in getting
an alternative quote but also working with the underwriter even if they had a claim.
Speak to an Adroit Insurance & Risk Adviser Your local Adroit Insurance & Risk Adviser has access to markets that many don’t, and therefore can ensure that you are not only getting the best deal for your business but talk you through how you can best protect your business to the level you would like to. Contact us today for an obligation free Health Check of your insurances. Travis Noffke, Senior Risk Adviser | Adroit Insurance and Risk adroit.com.au Travisn@adroit.com.au M 0419 299 402
28
CORPORATE PARTNER ADVERTISING
NATIONAL
Wine for the musically minded Available to order now through your preferred wholesaler, Pernod Ricard Account Manager or phone Customer Service 1300 363 153
13574 MGA Retailer magazine HLA June 188x120.indd 1
25/5/22 11:35 am
THE HEART OF QUALITY Good food is the source of good health, happiness and vitality, and we believe that quality ingredients are at the heart.
@jcsqualityfoodsau
@jcsqualityfoods
@jcsqualityfoods
www.jcsqualityfoods.com.au
mga.asn.au | June 2022 | Edition 3
LEGAL AND IR
29
NATIONAL
Workplace Health and Safety: obligations and duties Legislation and useful material Members have health and safety (WHS) obligations arising from applicable Acts and Regulations. WHS legislation is similar in all states apart from Victoria and Western Australia. Compliance with WHS legislation is a necessary part of reducing legal risks to members’ businesses, and the MGA Employment Law team is available to provide assistance to members in this area. The applicable WHS legislation includes:
• WHS Act 2010 • WHS Regulations 2010 • Victoria: Occupational Health and
Safety Act 2004; Occupational Health and Safety Regulations 2007; and
• Western Australia: Occupational Safety and Health Act 1984; Occupational Safety and Health Regulations 1996.
There are minor differences in WHS obligations and duties between states. In addition to legislation, members can also refer to state-based Codes of Practice. These can be useful to assist members in meeting their WHS duties, although they are practical guidance only and are non-binding. There are also guidance materials, WorkSafe factsheets and Australian Standards that can provide assistance for members. The Act and Regulation identify who is responsible for particular health and safety duties, including members’ primary duty of care, the duty to consult, and duties regarding notifiable incidents. The legislation also confirms the rights of workers and unions. For example, unions may have rights in respect of entering workplaces to investigate suspected breaches of WHS obligations and to hold discussions.
Who has a duty? Employer members are considered a ‘person conducting a business or undertaking’ (PCBUs). PCBUs can include business entities. The individual business owners, people who make or participate in making decisions that affect a whole or substantial part of the business, and directors and secretaries are considered officers of the PCBU and specific obligations apply to officers. Workers include anyone engaged or caused to be engaged by the PCBU or whose activities in carrying out work are influenced or directed by the PCBU. Employees are considered workers. Workers can also include non-employees such as contractors, apprentices, volunteers and work experience workers. Customers are considered visitors. Under WHS legislation, workers and visitors also have WHS duties, and the PCBU owes obligations to workers and visitors.
PCBU duties Member PCBUs have the primary duty of care to ensure, as far as reasonably practicable, the health and safety of workers and visitors/customers who may be affected or put at risk by the carrying out of work. PCBUs also have other notable duties, such as consulting,
cooperating and coordinating with other PCBUs and workers and representatives and to notify the state-based regulator of notifiable incidents. In discharging its primary duty of care, PCBUs must provide or engage in the following:
• Work environment without risks to health and safety;
• Safe plant and structures; • Safe systems of work; • Safe use, handling, storage and transport of plant;
• Adequate facilities for the welfare of others;
• Necessary information, training, instruction/supervision; and
• Monitoring of workers’ health and workplace conditions.
The PCBU’s risk management duty is to ensure risks are eliminated or, if not reasonably practicable, minimised. To determine what is reasonable for a PCBU to eliminate or minimise risks, the following factors must be taken into account:
• Likelihood of the hazard or risk occurring;
• Degree of potential harm; • What the person ought reasonably
to know about the hazard or risk and
AUSTRALIA’S #1 HARD SELTZER* *Source: IRI qtr to Jan 2022
LEGAL AND IR
31
NATIONAL
ways of eliminating or minimising the risk; and
• Availability and suitability of ways to eliminate or minimise risk.
Cost may only be a relevant consideration to the ‘reasonability’ assessment where the cost is grossly disproportionate to the risk. In order to determine whether excessive costs render steps to eliminate or minimise risk unreasonable, the extent of the risk and methods to eliminate or minimise these must be assessed first.
solve any problems (i.e. through reporting systems and collecting industry information);
• Provide appropriate resources and
processes essential for the PCBU to achieve compliance (i.e. through consulting, reporting notifiable incidents, ensuring compliance with notices and providing requisite training); and
• Have an objective and verifiable
records of the provision and use of the above.
Consultation
Risk management
Consulting with workers and other parties is an important part of discharging a PCBU’s health and safety obligations. When consulting with workers and other PCBUs, members should take care to advise workers of the outcome of consultations in a timely manner, consult any representatives if applicable and keep records of all consultations. Members should consult with workers and other parties regularly and frequently.
In managing health and safety risks, the PCBU must:
Officers’ duties Officers have a duty to conduct or exercise due diligence to ensure the PCBU complies with its WHS obligations. In discharging this duty, officers should take care to:
• Gain an understanding of hazards
and risks associated with operations of business or undertaking;
• Ensure the PCBU has and uses
appropriate resources and processes to eliminate and minimise risk;
• Acquire and keep up-to-date health and safety knowledge (i.e. through training and reporting);
• Understand the activities undertaken by the PCBU and associated risks (i.e. through inspection and consultation);
• Ensure the PCBU uses resources
and processes to manage risk (i.e. through safe plant and training);
• Ensure the PCBU collects
information to monitor these and
1. Identify reasonably foreseeable hazards that could give rise to health and safety risks; 2. Eliminate risks so far as reasonably practicable, or if not reasonably practicable; and 3. Minimise risks as far as reasonably practicable. When it is not reasonably practicable to completely eliminate risks, PCBUs must take care to follow the hierarchy of control measures as set out in the Regulations. The hierarchy of control measures sets out three levels of control – highest, medium and lowest. The PCBU must be able to prove that it could not do anything at a higher level. A combination of control measures spanning the hierarchy may also be used to minimise risks, so far as is reasonably practicable, if a single control is not sufficient for the purpose. First and foremost, the PCBU must seek to eliminate the risk if reasonably practicable. If not, the PCBU must then seek to minimise the risk so far as reasonably practicable by:
• Substituting (wholly or partly) the
hazard with something that gives rise to lesser risk; if not
• Isolating the hazard from any person exposed to it, and if not,
• Implementing engineering controls
to reduce the risk of hazard impact. Examples of engineering controls are those that are physical in nature, such as mechanical devices and processes like trolleys, hoists and guards. Should implementing the above steps prove insufficient to discharge the PCBU’s primary duty, the PCBU must then rely on human behaviour and supervision to further minimise the risk. These involve implementing administrative controls to reduce the exposure of the worker to the remaining risks associated with the hazards, such as safe work procedures, training, instruction, and provision of information and supervision. If an unacceptable level of risk remains, the PCBU must then seek to minimise the remaining risk, so far as is reasonably practicable, by ensuring the provision and use of suitable personal protective equipment (PPE).
Tying it together In short, steps that member PCBUs must take with respect of health and safety risks include: 1. Identifying hazards; 2. Assessing risks; 3. Controlling risks; 4. Reviewing and maintaining control measures; 5. Keeping records to demonstrate compliance; and 6. Engaging in consultation is required at all steps of the risk management process. Members should contact our Employment Law team at 1800 888 479 with any queries in respect of WHS obligations and risk management.
32
LEGAL AND IR
NATIONAL
Allowances under GRIA Allowances under the General Retail Industry Award Under the General Retail Industry Award 2020 (GRIA), there are some circumstances where employers are required to pay employees an extra payment called an “allowance” in addition to their ordinary rate of pay. This includes circumstances where the employee performs certain duties, has a particular skill, works in hazardous conditions, or incurs an expense associated with their employment. Type of allowance Meal allowance
Summary of allowances under GRIA The rules regarding allowances are contained in clause 19 of GRIA. Please see below a table that summarises the type of allowances under the GRIA, when the allowances are payable, and the amount of each allowance payable. Please note that the amount of each allowance is subject to change, and the amount payable may increase where there is an applicable amendment of the GRIA.
Clause under GRIA Clause 19.20
Amount of allowance payable (as of publishing date) A meal allowance is payable to an employee who is required to work overtime of more than one hour on any day after the time at which the employee ordinarily finishes work for the day and: (a) the employee was not given at least 24 hours notice of that requirement; and
If an employee is entitled to a meal allowance, the employer must pay the employee:
• a meal allowance of $19.45; or
• supply the employee with a meal.
(b) the employee cannot reasonably return home for If the employee has worked a meal within the period of the meal break. more than 4 hours of overtime in a day, the employer must pay the employee a further meal allowance of $17.63. Special clothing allowance
Clause 19.3
A special clothing allowance is payable where the employer requires the employee to wear a company uniform, protective clothing or any other special clothing.
If an employee is required to wear special clothing, the employer must reimburse an employee for the cost of purchasing any such clothing (including purchasing replacement clothing due to normal wear and tear) that is not supplied or paid for by the employer. If the employee is responsible for laundering the company uniform, the employer must pay the employee a laundry allowance of: (a) $6.25 per week for a fulltime employee; and (b) $1.25 per shift for a parttime or casual employee.
mga.asn.au | June 2022 | Edition 3
LEGAL AND IR Type of allowance
NATIONAL
Amount of allowance payable (as of publishing date)
Travelling time reimbursement
Clause under GRIA
When does this allowance apply?
Amount of allowance payable (as of publishing date)
Clause 19.4
Reimbursement for excess travelling costs is payable if an employee is required to work at a place other than their usual place of work for a period of up to 3 weeks.
Reimbursement for excess travelling costs is payable if an employee is required to work at a place other than their usual place of work for a period of up to 3 weeks.
Travelling time reimbursement is payable if the employee is required to work at a place other than their usual place of work on any day.
The employer must do the following:
Clause 19.5
• pay the employee at their
ordinary rate of pay (or at 150% of that rate on a Sunday or public holiday) for time spent travelling both ways between the employee’s residence (or, if the employer provides transport from a pick up point, between that pick up point) and the other place of work in excess of the time normally spent in travelling to and from their usual place of work; and
• reimburse the employee
any additional costs they incurred in travelling to and from the other place of work
Moving expenses
Clause 19.6
Moving expenses are payable if an employer The employer must pay the transfers an employee from one township to another. total cost (including fares and other transport charges) of moving the employee and any member of the employee’s immediate family who resides in the employee’s household.
Motor vehicle allowance
Clause 19.7
The employer must pay the A motor vehicle allowance is payable if an employer requests an employee to use their own motor vehicle employee an allowance of $0.82 for each kilometre in performing their duties. travelled.
Transport reimbursement
Clause 19.8
Transport reimbursement is payable to an employee (other than a shift worker) if all of the following conditions are met:
• the employee starts work before 7.00 am or starts or finishes work after 10.00 pm; and
• the employee’s regular means of transport is not available; and
• the employee is unable to arrange their own alternative means of transport; and
• a proper means of transport to or from the
employee’s usual place of residence is not provided to or arranged for the employee by the employer at no cost to the employee.
The employer must reimburse the employee the cost they reasonably incurred in taking a commercial passenger vehicle between the place of employment and the employee’s usual place of residence.
33
34
LEGAL AND IR
NATIONAL
Type of allowance Cold work allowance
Clause under GRIA Clause 19.9
When does this allowance apply? Cold work allowance is payable to employees who are principally employed on any day:
• to enter cold chambers; or • to stock or refill refrigerated storage such as dairy cases or freezer cabinets.
Amount of allowance payable (as of publishing date) The employer must pay the employee an allowance of:
• $0.31 per hour while so employed; and
• an additional allowance
of $0.47 per hour if a cold chamber in which the employee is required to work is below 0°C.
First aid allowance
Clause 19.10
First aid allowance is payable to an employee who:
• has a current first aid qualification from St John Ambulance Australia or a similar body; and
The employer must pay the employee an allowance of $11.69 per week.
• is appointed by the employer to perform first aid duty.
Recall allowance
Clause 19.11
Recall allowance is payable to an employee who for any reason is recalled to work by the employer to perform specific duties on a day on which they: (a) have completed their normal roster; or (b) did not work.
Unless otherwise agreed between the employer and the employee, the employer must pay the employee at the appropriate rate of pay for whichever of the following is the greater: (a) the time between when the employee leaves their place of residence until they return there; or (b) 3 hours.
Liquor licence
Clause 19.12
A liquor licence is payable if the employee holds a liquor licence under a relevant State or Territory law.
The employer must pay an employee an allowance of $27.88 per week.
Broken Hill
Clause 19.13
The Broken Hill allowance is payable if the employee is working at the employer’s workplace within the County of Yancowinna in New South Wales (Broken Hill).
The employer must pay an employee an allowance of $1.01 per hour.
However, please note that some employees may be subject to some workplace arrangements that can affect how allowances are paid. These include annualised salaries or loaded rates of pay, special provisions in employment contracts or individual flexibility agreements or as noted in a guarantee of annual earnings. If you have any questions in relation to allowances, please contact our Employment Law team on 1800 888 479.
mga.asn.au | June 2022 | Edition 3
LEGAL AND IR
35
NATIONAL
Changes to Roster If members wish to change the regular roster of an employee, they are firstly required to follow a consultation process prior to making such changes to a roster. Generally, the consultation process is set out in the General Retail Industry Award (GRIA) or other applicable enterprise agreement. Please see below the general consultation process that an employer is required to follow when they want to change the regular roster of an employee who is covered by the GRIA.
Step 1: Provide written notice of change Firstly, it is best practice for members to provide their employees with written information (such as via email or letter) about the proposed changes to their regular roster (for example, what the change will be and when it is to begin). The written notice should set out the details of the proposed roster changes as well as invite the employee to attend a consultation meeting (along with their nominated support person) to give their views about the impact of the change. It is advisable to provide reasonable notice of this consultation meeting (ideally, at least 24 to 48 hours) and ensure that this meeting is conducted during reasonable hours, such as during an existing rostered shift.
Step 2: Consult with employees about changes The second step is to attend a meeting with the employee where the member:
• provides the employee with
information about the proposed changes to their roster, including the reasons for change;
• invites the employee and their
representative (if any) to give their views about the impact of the changes to their roster (including any impact on their family or caring responsibilities); and
• considers these views about the impact of the change.
Step 3: Confirm changes to the regular roster Changes to a part-time employee’s guaranteed hours of work can only take place with the employee’s mutual agreement. If the employee’s status of employment is to be changed (e.g. from full-time or casual to part-time, from part-time to casual or full-time), prior express written consent is required. Once the employee and employer agree to the changes to their status of employment and/or regular hours of work, parties should enter into an agreement (such as a written variation or new contract of employment) to confirm the changes to the employee’s employment status, guaranteed hours or their regular roster.
Step 4: Notice requirements Even if the employee and employer mutually agree to the changes to the roster, the GRIA still requires the employer to provide a period of notice to the employee of these new changes. The amount of notice required depends on whether the employee is employed as a part-time, full time or casual employee. If the employee is a:
• Casual or full-time employee, the
employer may make permanent roster changes at any time by giving the employee at least 7 days written
notice of the change. If the employee disagrees with the change, the period of written notice of the change required to be given is extended to at least 14 days in total. The extra notice is to allow for discussions between the employer and employee to resolve the disagreement; and
• Part-time employee, the employer
may make a change to the roster by giving the employee 7 days, or in an emergency 48 hours, written notice of the change.
It is unlawful for an employer to change an employee’s roster with the intention of avoiding paying the employee certain entitlements (such as overtime or penalty rates). If an employee disagrees with a roster change, members are encouraged to negotiate in good faith to genuinely reach an agreement with the employee about the roster change. If a resolution is unable to be reached and appropriate steps to resolve the matter have been taken, the employee or the member has the right to refer the dispute to the Fair Work Commission. If you have any questions in relation to roster changes, please contact our Employment Law team on 1800 888 479.
36
LEGAL AND IR
NATIONAL
Employee request for casual conversion
Our members were informed of the new National Employment Standard for requests of casual conversion in our September 2021 edition of the IR Magazine. Members are reminded of ongoing obligations surrounding employee requests for casual conversion.
Eligibility criteria for casual conversion – when is an employee entitled to request conversion? Casual employees are entitled to request conversion to permanent full time or part-time employment if they: 1. have been employed by the member for a period of at least 12 months; 2. during at least the last 6 months of the 12-month period, the employee has worked a regular pattern of hours on an ongoing basis; 3. this regular pattern of hours can be converted to full or part-time work without significant adjustment; 4. the employee has not already refused an offer of casual conversion provided by the member within the 6-month period to the request;
mga.asn.au | June 2022 | Edition 3
5. the member has not given the employee notice that an offer of conversion will not be made on reasonable grounds within the 6-month period to the request; 6. the member has not given the employee a response to refuse a previous request for conversion made within the 6-month period to the request; and 7. if the member is not a small business employer, the request was made after 16 April 2021 (for employees employed on or before 26 March 2020) or after 21 days of the employee’s 12-month anniversary (for employees employed after 26 March 2020). Requirements of a request for casual conversion The request made by an employee must be:
• made in writing; • state a request to convert to
equivalent part or full-time hours worked to part or full-time employment; and
• be given to the member. The member must respond to the request within 21 days of provision and
state whether the request is granted or refused.
Must a member accept a request for casual conversion? If the casual employee is eligible to make such a request for conversion, the member is required to accept this request unless:
• the member consults with the employee first; and
• has reasonable grounds not to accept the request (which is discussed below).
Accepting a request for casual conversion After providing a response to the employee stating that the request is granted, the member must then consult and discuss the following with the employee:
• whether the conversion is to full or part-time;
• what the hours of work are after the conversion; and
• what date the conversion takes effect.
LEGAL AND IR
37
NATIONAL
After this discussion, the member must give a written notice to the employee within 21 days from their request that specifies whether the employee will be converted to part-time or full-time employment, what the hours of work are after the conversion, and what date the conversion takes effect. The date of conversion must be the first day of the employee’s first full pay period starting after the written notice is given, unless otherwise mutually agreed upon. It is advisable for the parties to enter into a new employment contract that formalises the conversion.
What are reasonable grounds not to accept a request for conversion? The employer must also consult with the employee if considering refusing a request based on reasonable grounds. Reasonable grounds must be based on known or reasonably foreseeable facts at the time of refusing the request. The below is a non-exhaustive list of example reasonable grounds:
• acceptance would require a
significant adjustment to the employee’s hours of work in order for the employee to be employed as
a full-time employee or part-time employee;
• the employee’s position will cease to
exist in the 12-month period after the request is made;
• the hours of work which the employee is required to perform will be significantly reduced in the 12-month period after the request is made;
• there will be a significant change in
either or both of the following in the 12-month period after the request is made: o the days on which the employee’s hours of work are required to be performed, and/ or o the times at which the employee’s hours of work are required to be performed, which cannot be accommodated within the days or times the employee is available to work during that period; and
• granting the request would not
comply with a recruitment or selection process required by or under a law of the Commonwealth or a State or a Territory.
If there are reasonable grounds not to
accept the request for conversion and the member has consulted with the employee on this decision, the member can decide not to accept the request of casual conversion from the employee. The member must then:
• give a written notice to the employee that specifies that the member will not accept the request for casual conversion and detailing the reasons for not accepting the request; and
• provide this notice/response within 21 days after the request is given to the member.
If the employee’s request for conversion is rejected on a reasonable ground, the employee can still exercise their discretion to request conversion again at a later time after the initial request. For each subsequent request, the member should reassess the employee’s eligibility to make each request and grant the request unless a reasonable ground exists. If you require assistance in responding to requests for casual conversion, please contact our Employment Law team on 1800 888 479.
38
LEGAL AND IR
NATIONAL
Keeping appropriate time records Members are required to comply with record-keeping obligations provided in the Fair Work Regulations 2009 (the Regulations) and in any applicable modern award or enterprise agreement. What are time recordkeeping obligations under the Regulations? Overtime Where an employee is entitled to receive a penalty rate, loading or overtime pay in respect of overtime hours worked by the employee, members are required to make and keep records specifying the number of overtime hours worked on each day and the time that the employee started and ceased working those overtime hours. Overtime hours are those hours of work that are not ordinary hours of work. Members are to refer to the applicable modern award or enterprise agreement to determine what hours are considered overtime work hours. Examples of record-keeping that satisfies these obligations in the Regulations include:
• Making and maintaining records of
rosters that state the specific number of overtime hours worked each shift, including the start and finish times that the overtime hours were worked;
• Requiring employees to complete
timesheets that specify the specific number of overtime hours worked each shift, including the start and finish times that the overtime hours were worked, then keeping these timesheets as a record; and
• Maintaining a logbook of each
employee’s hours of work which notes the specific number of overtime hours worked each shift, including the start and finish times that the overtime hours were worked.
mga.asn.au | June 2022 | Edition 3
Averaging of hours For particular full-time and casual employees covered by the General Retail Industry Award (the GRIA), provisions in respect of averaging of hours can be applied. If a member and an employee agree in writing to an averaging of the employee’s hours of work, the member is required to make and keep a copy of this agreement. Payslips Members are required to provide all employees with a payslip within one working day of paying an amount to the employee in relation to the performance of work. Amongst other things, payslips must specify any separately identifiable amount paid to the employee that is overtime pay, a loading or penalty rate. This means that members must be able to identify and record overtime hours, ordinary hours, or hours attracting penalty rates in order to note in payslips any amounts payable in respect of overtime pay, loading or penalty rate.
How long should time records be kept? Employee records in respect of each employee, as noted in the Regulations, must be kept for at least 7 years.
What are time record-keeping obligations under the GRIA? Under the GRIA, there are certain agreements between a member and an employee that must be kept as a time record. These agreements are as follows:
• Individual flexibility arrangements;
• Length of work cycle (full-time employees only);
• Number of days in the work cycle (full-time employees only);
• Maximum length of shifts (full-time employees only);
• Substituting rostered days off (fulltime employees only);
• Banking rostered day off (full-time employees only);
• Minimum consecutive days off; • Regular work on Sundays; • Breaks between work periods on consecutive days;
• Substitution of public holiday shift (shift workers only);
• Annual leave in advance; • Substitution of public holidays; and • Agreement to increase guaranteed
hours of work (part-time employees only).
Are there consequences contravening record-keeping obligations? Employers who do not comply with their record-keeping and payslip obligations are in breach of the Fair Work Act 2009, Regulations, and the relevant modern award or enterprise agreement. If a breach is established, civil penalties may apply. If you require further advice in respect of record keeping, please contact our Employment Law team on 1800 888 479.
MARKET DISRUPTORS
39
NATIONAL
Is ‘Just Walk Out’ technology the future of retail?
While Amazon has recently been scaling back its brick-and-mortar bookstores, it has been increasing its efforts in the grocery sector, growing more Amazon Fresh locations, and trialling its ‘Just Walk Out’ technology at Whole Foods Market. In select cities in the United States, Amazon operates small format stores with prepared foods and some grocery items under the Amazon Go banner, also using this ‘Just Walk Out’ technology. This has now expanded to seventeen stores across London under the brand Amazon Fresh. A spread across the world is expected with supermarkets able to license the technology from Amazon.
So what is this ‘just walk out’ shopping experience? The store is like a normal convenience store, however, there is no checkout - no registers or cashiers – and customers never have to wait in line. Customers walk in, select what they want to buy and walk out. The first Amazon Go was located in Seattle, a small convenience store, approximately 1,800 square feet of retail space. In addition to these smaller Amazon Go stores, are the larger Amazon Go Grocery and Amazon Fresh stores. The stores work with an app – Amazon Go app – which is linked to the customer’s account for billing. The technology detects when a product is taken or returned to the shelves and keeps track of the products in the customer’s virtual cart. When the customer leaves the shop, their Amazon account is charged, and a receipt is sent to the customer.
A “bag as you shop” display at an Amazon Go store in Seattle.Photographer: Chona Kasinger/Bloomberg
How does it work? The consumer sets up an account with Amazon and downloads the free app. The app is scanned when the consumer enters the store through a turnstile. The consumer puts away their phone and begins shopping – selecting items, placing into their basket or bags, or back on shelves. There is no need to scan items. Once finished the shopper can just walk out of the store – there is no need to checkout.
The technology and cost efficiencies Amazon uses a combination of artificial intelligence, computer vision, and data drawn from multiple sensors, which ensures the consumer is only charged for the items they pick up. Cameras track items taken from the shelves. This cutting-edge technology optimises the store’s operational efficiencies by enabling effortless, convenient, and check out free shopping. This cashierless store reduces costs, which can make a profound difference to earnings in the grocery industry where tight margins prevail.
Store cost benefits include:
• • • •
Eliminates shoplifting Fewer staff employed Firm control on stock Data on what products each customer is buying.
Business Insider1 reported that Amazon has significantly reduced the cashierless stores’ operating costs. For instance, a 1,000 square foot store that cost $4 million to run four years ago, now costs only $159,000. However, retailers are concerned about how Amazon might use their data given their current bricks-andmortar motivations. It may be more strategic for Amazon to become solely a service provider and desert their stores altogether.
1
https://www.businessinsider.com/amazonslashes-cost-of-go-cashierless-storetechnology-by-96-2021-11
40
CORPORATE PARTNER ADVERTISING
NATIONAL
mga.asn.au | June 2022 | Edition 3
CORPORATE PARTNER ADVERTISING
NATIONAL
41
42
CORPORATE PARTNER ADVERTISING
NATIONAL
Australian made and owned
mga.asn.au | June 2022 | Edition 3
CORPORATE PARTNER ADVERTISING
NATIONAL
43
44
INDUSTRY NEWS
NATIONAL QUEENSLAND
LET OUR
OF
TEAM
INSURANCE HEROES TAKE CARE OF YOUR
SUPERMARKET INSURANCE. Call us today for a free insurance health check travisn@adroit.com.au adroit.com.au | M: 0419 299 402
mga.asn.au | June 2022 | Edition 3
TIMBER TRAINING
45
VICTORIA
Timber Product Knowledge Training The MGA TMA team in, conjunction with Timber Training Creswick, planned three 2-day Timber Product Knowledge Training sessions throughout 2022.
Course content: 1. Features, benefits, and limitations of timber as a product 2. The lifecycle of timber products 3. Timber classification and naming, wood structure and tree growth 4. Wood properties (strength, durability, hardness, appearance, density etc.) 5. Timber treatment, hazard levels and precautions in use of treated timber 6. Log conversion processes 7. Forest product certification schemes 8. Sourcing technical information 9. Keeping timber looking great (finishes, stains, and oils) 10. Innovative, new, and emerging wood products/ technologies The first course of the year was held on 29 and 30 March 2022 and was a great success. The course sold out in record time. Participants completed the evaluation survey and reported they found the course valuable, especially the theory section of the course. “Most valuable in the course was the knowledge of the trainer and the openness to ask any question about the industry.” “I particularly enjoyed the theory component, the knowledge I can now apply to not only my work but advocating for the timber industry is something I really value.” Information about registering for the third and final courses for the year will be announced in Timber and Hardware News and on our website.
46
TIMBER NEWS
NATIONAL
Independent Hardware Group business session & awards of excellence Independent Hardware Group (IHG) had planned their return for face-to-face events in 2022, but unfortunately, the uncertainty around COVID-19 caused the conference on the Gold Coast to be cancelled and virtual events were held again. The Business session was streamed on 23 March 2022. IHG CEO, Annette Welsh, and her team of executives, took attendees through IHG’s plans for their sapphire project, increased investment, Mitre 10 re-brand and what is on the radar for the future and expansion of the network. The Awards of Excellence were held in the evening. IHG stores are honoured to be nominated and the competition is fierce. Winners announced: » CEO Award – Mark Laidlaw
» Supplier of the Year Award Build – ITI Australia » Supplier of the Year Award Fit out and Fix – Stanley Black & Decker
» Supplier of the Year Award Finish and Exterior –
» Supplier of the Year Award Logistics – Cochranes Transport
» Mighty Helpful Service Award – Larry Roberts, Gubbins Pulbrook Mitre 10, NSW
» Village of the Year Award – The Apostles, Vic » Garden Centre of the Year – McLaren Vale Mitre 10, SA
» Store of the Year Convenience format – Woodgate Beach Hardware, QLD
» Store of the Year Small format – Sunlite Mitre 10, NSW
» Home Hardware Store of the Year – Berry Springs Home Hardware, NT
» Mitre 10 Store of the Year Medium format – Crameri’s Mitre 10, Vic
» Trade Centre of the Year – Margaret River Mitre 10, WA
» Mitre 10 Store of the Year Large format – Barossa Mitre 10, SA
» Hall of Fame – Stewart family, Barrow & Bench Mitre 10, SA
Cabots
The world’s tallest cross laminated timber building to be built in Winterthur, Switzerland In Forest Economic Advisors (https://getfea.com/) That Danish architectural firm, Schmidt Hammer Lassen (SHL), has designed a 100-metre (over 30-story) housing block in the city of Winterthur, Switzerland. When completed it will be world’s tallest cross-laminated timber building. Standing at 25 story, the second tallest project is the still under construction Ascent Building in Milwaukee, Wisconsin. The new structure in Winterthur is being named “The Rocket & Tigerli” building as a nod to what was formally housed on the site - a railroad locomotive manufacturing
mga.asn.au | June 2022 | Edition 3
plant that produced the locomotives named Rocket & Tigerli. The construction system has been developed by Swiss company Implenia. The concrete core has been replaced with wood, meaning the individual beams weigh less, making it possible to build taller buildings, and at the same time ensure the building process achieves a lower amount of embedded carbon.
(Article published 19 April 2022)
TIMBER NEWS
NATIONAL
Frederick O’Connell Scholarship 2022 Frederick Richard O’Connell was Executive Director of the Timber Merchants’ Association (Vic) in the 1950’s. In his will, he left a sum of money to be used for scholarships for the children of TMA members or children of their employees – thus, the Frederick O’Connell scholarship was established. The scholarship’s intention is to promote industrial harmony in Australia and to improve relationships between employers and employees within the timber industry. Applications were open to students who have enrolled in or who have already commenced a degree, certificate or diploma course conducted by a Victorian university. Scholarships are awarded on the basis of good character, personality, academic achievement, and proficiency at sport. The calibre of applications for the 2022 program were very high which made the job of the selection committee tough.
Congratulations to the successful applicants: » » » » » » » » » »
LIQUOR NEWS
VICTORIA
Victorian RSA certificates now have new branding From Tuesday, 15 February 2022, anyone completing a Responsible Service of Alcohol (RSA) course with a registered training organisation approved by the Victorian Gambling and Casino Control Commission (VGCCC) will be issued a VGCCC branded certificate. On 1 January 2022, the Victorian Commission for Gambling and Liquor Regulation (VCGLR) changed its name to the Victorian Gambling and Casino Control Commission (VGCCC). It will continue to regulate liquor. VCGLR-branded certificates remain valid unless the date has expired on your RSA refresher certificate. The Victorian Parliament passed legislation creating the VGCCC in December 2021, but will introduce legislation on liquor regulation this year. When that legislation becomes law, liquor regulation will transfer to the Department of Justice and Community Safety. Until then, VGCCC will regulate both liquor and gambling, and RSA certificates will be branded with the VGCCC logo. The new certificate will be issued to all MGA trained RSA participants.
Mr Jack Braddick - A.G Brown Sawmill Miss Tiana Tatlow - Bayswood Timber Mr Sam Taylor - Bendigo Truss Plant Mr Harry Taylor - Bendigo Truss Plant Miss Jorja Brown - Dahlsens Mr Harry Wray - Dahlsens Miss Megane Boucherat – Dahlsens Miss Brianna Coutts - Davids Timber Miss Olivia Coutts - Davids Timber Mr Jaiden McDougal - Drouin West Timber and Truss
» Mr Jacob Nunan - Drouin West Timber and Truss » Mr Isaac Walls - Lamcal » Miss Lucy Wright - Mathews Timber On behalf of MGA TMA, congratulations on your further studies. Enter to win an unforgettable adventure for you and a friend across the four corners of Tasmania in an epic race to find the Lost Shipment.
47
48 NATIONAL
Struggling to Connect?
Don’t let your communication systems hold you back from what you need to do. With everything connected getting the right solution to fit your business can be a challenge. GPK Group can assist removing the complexities of how you connect and let you get back to business.
GPK Communications Bundle Simplifying the building blocks of a digital communications system
Internet
Phone
Network
NBN 100 Plan with unlimited with unlimited data.
3CX Virtual phone system with two lines (included calls)
Barracuda Managed Firewall with advanced security
Communications Bundle
495
$
p/mth*
Trading Terms and Conditions can be found on the GPK Group website https://www.gpkgroup.com.au/terms-and-agreements/ *Bundle is based on a 36 month agreement—Total cost of agreement $17,928. All pricing advertised is exclusive of GST.
MGA Member Offer
Barracuda 4G backup modem
savings
$549
GPK Group 1300 000 475 |www.gpkgroup.com.au |sales@gpkgroup.com.au
mga.asn.au | June 2022 | Edition 3
LIQUOR NEWS
49
NATIONAL VICTORIA
Victoria’s gaming commission appoints new CEO The Victorian Gambling and Casino Control Commission (VGCCC) has announced the appointment of Annette Kimmitt AM as its new Chief Executive Officer. Ms Kimmitt has more than 37 years of professional and commercial experience, including the CEO and Managing Partner of Australia’s largest law firm, Minter Ellison, and the Global Growth Markets Leader at Ernst & Young. VGCCC Chair Fran Thorn said Ms Kimmitt would bring significant experience and leadership skills to her role as CEO. “Her background in the business world and her experience in audit and risk management, in particular, will be a huge asset to our regulation of the gambling and liquor industries and ensuring harm minimisation,” she said. Thorn thanked VGCCC’s General Counsel and Executive Director, Regulatory Policy and Legal Services, Scott May, for the excellent job he has done as Acting CEO since November last year. “Scott has shown great leadership during what has been a very busy time for the VGCCC, including overseeing the work to separate the regulation of gambling and liquor and our ongoing response to the pandemic.” The MGA Board and National Liquor Committee welcome Ms Kimmitt to her new role and look forward to working with her and her team in maintaining an equitable and balanced retail packaged liquor sector. Ms Kimmitt commenced as CEO on 21 March 2022.
VGCCC New CEO Anette Kimmitt
Source VGCCC Media Release
QUEENSLAND
Illegal tobacco sales facing crackdown in Queensland In late December, key retail organisations met with Police Minister Mark Ryan and Health Minister Yvette D’Ath to ask for urgent support to combat the illicit tobacco sales explosion in Queensland.
Following this active lobbying campaign, the Government has commissioned a Regulatory Impact Statement, expected to be released in the next few weeks, containing measures to fight the scourge of illicit tobacco.
The Minister’s recognised the growing problem and the impact on legitimate businesses from the growth in criminal sales. Representatives of key retail organisations, including the Master Grocers Australia, Australian Association of Convenience Stores, and the Australian Lottery & Newsagents Association, presented potential solutions, including new enforcement powers.
The Statement will include broad consultation with the industry to ensure the measures are targeted and effective. MGA will keep members updated on the Statement and the consultation program as they come to hand.
50
INDUSTRY NEWS
NATIONAL SOUTH AUSTRALIA
2021 Drakes Supermarkets Conference & Supplier Partner Awards Drakes Supermarkets held the 13th Drakes Supermarkets postponed 2021 Conference on the Gold Coast, Queensland, 27th April to 2nd May 2022. Particularly important this year with the company being unable to host their suppliers since 2019 pre Covid pandemic; the focus was on 2020/2021 financial year. Just under 400 delegates spent five days at the stunning Sheraton Mirage Resort, “The Drakes Supplier Conference is our chance to thank our suppliers and their
families for their support and provide face to face time with key members of our business,” says Michael Connolly, General Manager of Marketing at Drakes Supermarkets. “ The Drakes Conference Business Session was held on day two for supplier delegates. Aptly themed “Building Business Relations,” the first speaker of the day was Australian big wave surfer, author and ocean adventurer Mark Visser. Regaling delegates with stories of his survival as a big wave surfer; whilst
CATEGORY
WINNER
Meat Supplier of the Year
Inghams Enterprises
Deli Supplier of the Year
Primo Smallgoods
National Bakery Supplier of the Year
Vilis Family Bakery
National Fresh Produce Supplier OTY*
Mitolo Family Farms
The Guido Manzueto Memorial Award
Slape & Sons
Fresh Foods Account Manager OTY*
Chris Matz (DR Johnston)
Up to $2m Supplier of the Year
Red Bull Australia
$2m to $5m Supplier of the Year
Frucor Suntory
$5m+ Supplier of the Year
Coca-Cola Europacific Partners Australia
Non-Foods Supplier of the Year
Henkel Australia
General Merchandise Supplier OTY
Licensed Socks & Apparel Australia P/L
Tobacco Supplier of the Year
Philip Morris Limited
Dairy & Frozen Supplier of the Year
Fonterra Brands
Support Services Supplier of the Year
Dyers Transport
Grocery Account Manager of the Year Joint Winners: Kristian Griffiths (Fonterra Australia Pty Ltd) Marcus Hooper (PepsiCo ANZ) * OTY of the year mga.asn.au | June 2022 | Edition 3
bringing his stories back to relate to his team of people and how important it is to have a team around you to succeed. During the morning session Craig Woolford lead consumer analyst at MST Marquee provided research advice across the retail and food & beverages industries focusing on his insights on the state of Australian retailing and performance of the businesses across the sector. The afternoon session including an “On the Couch” Q&A with Roger & John-Paul Drake. To finish the day’s business session; they were treated to one of Australia’s best stand-up comedians for some light entertainment, the star of ABC’s Hard Quiz; Tom Gleeson. Another important event of the Conference is the Supplier Gala Awards Dinner. “Drake understands that without suppliers and their brands, they would not be who they are today. Their ongoing support for Drakes business as Drakes continue to grow is critical to our joint successes and to recognise those who have gone over and above in the last 12 months is something special” said Mr Connolly. The 14th Drakes Supermarkets 2022 Conference will be held from the 12th – 16th October in Port Douglas.
FIND YOUR BETTER BUSINESS SELF A free business support program for you and your team nab.com.au/businessfit
© 2021 National Australia Bank Limited ABN 12 004 044 937 AFSL and Australian Credit Licence 230686 A161041-0221
When other’s won’t, Till will. If you’re ready for a payments provider who will build a platform around your needs so you have more stock control — and shift more off shelf — then simply choose Till.
Built for you
Built for customers
tillpayments.com