IR August 2018

ISSUE 5 | AUGUST 2018

YOUR INDUSTRY NEWS PROVIDED BY MGA INDEPENDENT RETAILERS

CONGRATULATIONS TO RITCHIES SUPA IGA DROMANA, VICTORIA IGA National Retailer of the Year 2018!

National Support Office

•

1800 888 479

•

www.mga.asn.au

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

MGA NATIONAL

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

RETAILER DIRECTORS Rodney Allen (President): Victoria Graeme Gough: New South Wales Michael Daly: Victoria Gino Divitini: Western Australia Grant Hinchcliffe: Tasmania Carmel Goldsmith: New South Wales Chris dos Santos: South Australia Debbie Smith (Vice President): Queensland

MGA CHIEF EXECUTIVE OFFICER Jos de Bruin 03 9824 4111 E: jos.debruin@mga.asn.au

CORPORATE PARTNERSHIP AND MEDIA SALES Steve Sellars 0407 399 240 E: steve.sellars@mga.asn.au

EDITORIAL AND PRODUCTION

E: courtenay.hirst@mga.asn.au

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CONTENTS 5 CEO welcome

INDUSTRY NEWS 6 The Metcash Supermarkets & Convenience Expo 2018 6 IGA Awards of Excellence 2018 7 The IGA Conference 8 IGA Hall of Fame 8 Country of Origin Food Labelling 8 Credit card fraud warning!

9 Koxka win Best Equipment Exhibitor Award 10 The Stop Trading Hours Deregulation (STHD) campaign 11 Natalie James replaced as Fair Work Ombudsman 11 COSBOA Council meeting 12 ACCC releases blueprint to reduce electricity prices 14 The NSW Container Deposit Scheme – Open forum and workshop 15 GST to apply to low value imported goods 15 Tony Smith Speaker of the House 15 Significant Goods and Services Tax (GST) changes 17 Six in ten Aussies buy organic: Inside the $2.4 billion industry 18 Least cost routing – merchant banking fees 19 Drakes Charity Golf Day 2018 19 NAB workshop – merchant fees

LEGAL AND HR 22 Compliance with your workplace obligations 22 What is the Scanning Code of Practice?

23 Making a management contract 25 Worker stress claims during performance management 25 MGA welcomes David Mostokly to the team

LIQUOR NEWS 27 NSW digital licence rollout will commence late 2018 29 Victorian liquor fees and penalties increase 29 Important changes for Victorian liquor licensees 29 Updated mandatory store signage 31 Riley Report recommendations threaten the viability of independent packaged liquor retailers

www.facebook.com/ MGAIndependentRetailers

31 Ritchies NSW GM Liquor joins the MGA National Liquor Committee

www.linkedin.com/company/ mga-independent-retailers

TRAINING

www.twitter.com/ MasterGrocers

33 Falls from heights 33 Competition winners from the Metcash Expo

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MGA CORPORATE PARTNERS DIAMOND

PLATINUM

GOLD

SILVER

BRONZE

ASSOCIATE

WAREHOUSE AND BRAND PARTNERS

tasmanian independent retailers

CEO REPORT

5

CEO WELCOME Welcome to the new financial year!

Whilst members were trying to maximise their sales prior to the end of the financial year as well as carry out stock takes, there were a number of employer compliance obligations that required members attention in preparation for a 1 July roll out including, single touch payroll for businesses with 20 employees or more, country of origin labelling and chain of responsibility.

In a world in which State and Federal Governments say they wish to make it easier for small business – family enterprises and private businesses, by reducing red tape and cost burden we are seeing the opposite. We cannot seem to escape the tsunami of new regulations that continue to add cost after cost to our members businesses. The NSW CDS is a case in point. Apparently, a terrific scheme for the NSW environment but a commercial disaster for independent supermarkets and liquor stores, particularly those retailers near the NSW border regions.

Some MGA members have commented that we are succeeding in fast becoming the nanny state no one wants.

The deregulation of trading hours is a hot topic in SA and WA at present. We see big business driving for more trading hours that can only lead to destroying independent supermarkets in these two states. Opening additional hours will not grow overall sales of goods. Sales will be supplanted from the independent retailer to the chain stores. We have seen the perfect example of this in SE Queensland where the trading hours, with only four weeks’ notice, dramatically changed on 1 December 2016. Additional hours in the early morning and on weekends were liberalised for the chains which saw many MGA members in the SEQ lose an average of 20% in sales, causing immediate risk and hardship to their businesses.

The annual Metcash Supermarkets & Convenience Expo, took place at the Gold Coast Exhibition Centre between the 8th and 10th of July. The MGA team were thrilled to be able to meet many members from around Australia at MGA’s Expo booth and at the various functions and events. The IGA Awards of Excellence 2018, formerly the Retailer of the Year Awards, was held on Monday

9 July. From many outstanding nominations from each state the judges decided upon three outstanding retailer winners from each of the three channels. For more information please see the article on pages 6 and 7. On behalf of MGA’s board and staff, MGA wishes to extend hearty congratulations to Ritchies Supermarkets CEO Fred Harrison, Mal and James Cameron, Jarrod Swaine and all the staff at the Ritchie’s Dromana Victoria store for winning the overall IGA National Retailer of the Year Award. This outstanding store will now represent Australia in the International IGA Retailer of the Year Awards.

For the new financial year, MGA members are encouraged to think about differentiating their supermarket offer from the chains and Aldi. There are some stunning examples of superb fresh, gourmet and delicatessen food offers in independent supermarkets around the countryside. Innovation and entrepreneurship are alive and well in the independent supermarket and liquor sectors.

Recent store refurbishments have included such innovations as a sushi bar, various fresh honeys, popcorn machines, fresh pasta bar, café or community area, a large range of Mediterranean small goods including; prosciutto and cured meats, imported and Australian cheeses, Italian and French bakery items, ready made prepared meals (some stores have a chef on site) all adding to the theatre of retailing. This is what consumers are looking for and we as independents, together with our innovative suppliers, can do it.

MGA members are agile and they seek to understand the needs of their consumers in their local markets.

Try not to let all the negatives drag you down. Believe me there are plenty of them. Instead think about how you can improve your store – your customers will love you for it!

Until next time – good selling.

Jos de Bruin CEO MGA Independent Retailers

www.mga.asn.au

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INDUSTRY NEWS NATIONAL

The Metcash Supermarkets & Convenience Expo 2018 The Metcash Supermarkets & Convenience Expo, Australia’s largest independent event was once again held on the Gold Coast between the 8th and 10th July.

The theme this year was “The Best Store in Town”. IGA, FoodWorks and Friendly Grocer retailers from around Australia attended the Expo to view the latest in fresh retailing ideas, the most amazing refrigeration innovation, the most recently released technology and most of all, engage with national and local grocery suppliers to understand shopper trends and new products to satisfy new consumer markets.

The Metcash Supermarkets & Convenience Expo had something for everyone.

Deputy Prime Minister Michael McCormack with MGA staff

The NSW Khan Group meet with Marie Brown

IGA Awards of Excellence 2018 Over 1100 retailers, their families and staff from all over Australia, together with industry suppliers and Metcash Supermarkets & Convenience management and staff gathered at The Star Gold Coast Event Centre, home to the Logies, to celebrate the individual character, service, community involvement and outstanding retailing standards of the many different shaped and sized IGA supermarket businesses.

MGA congratulates all award nominees and resultant winners for not only providing their customers with a superb shopping experience, in a way that only independent stores can and for representing their respective states.

IGA National Retailer of the Year Ritchies SUPA IGA Dromana, Victoria Store of the Year Awards (by channel) Channel One: Ritchies SUPA IGA Dromana, Victoria Channel Two: Romeo’s Food Hall IGA MLC Martin Place, NSW Channel Three: IGA Xpress Bowen Hills, QLD Department of the Year Awards (by channel) Delicatessen Channel One: Romeo’s Food Hall IGA Summer Hill, NSW Channel Two: Ritchies IGA Mt Eliza, Victoria Meat Channel One: Queens SUPA IGA, WA Channel Two: IGA Mt Cotton, QLD

Kyme Rigter (2nd from right) and team from Geraldton WA

MGA’s Marie Brown with Jennifer and Leigh Randall

Bakery Channel One: Ritchies SUPA IGA Dromana, Victoria Channel Two: Romeo’s Food Hall IGA MLC Martin Place, NSW

The IGA Conference IGA retailers from all over Australia attended two conference mornings at The Star Gold Coast Event Centre, where they explored ways that all independents, can not only compete, but be “proudly independent” and successful in an increasingly tough market.

The first day kicked off with a team building exercise requiring all 1000 people in the room to work with each

August 2018 – Edition 5

other to create a 30 metre long and two-and-a-half metre high mural that was symbolic of what independent supermarkets represent in their local communities.

After this activity, Metcash Group CEO Jeff Adams shared his vision for “figuring out where customers are going… and getting their early”. Put simply, Jeff encouraged retailers to be on a constant watch for new consumer

trends, changing demographics within your community and be aware of the increasing consumer expectations of shopping standards.

New Metcash Supermarkets & Convenience CEO Scott Marshall spoke about the need for all independent retailers to work together and to be united and strong as a way to be successful in an increasingly challenging market place. Scott spoke of the “us

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INDUSTRY NEWS

Produce Channel One: North Road SUPA IGA, WA Channel Two: Romeo’s Food Hall IGA MLC Martin Place, NSW Grocery and General Merchandise Channel One: Ceduna Foodland IGA, SA Channel Two: Supamart IGA Rose Bay, NSW Dairy-Freezer Channel One: Romeo’s Food Hall IGA Summer Hill, NSW Channel Two: Dysons IGA Numurkah, Victoria

IGA National Retailer of the Year: Ritchies SUPA IGA Dromana

Customer Service Award Frewville Foodland IGA, SA Community Award Ashcroft’s Group, Orange NSW

IGA Store of the Year: Romeo’s Food Hall IGA MLC Martin Place

IGA Xpress Store of the Year: IGA Xpress Bowen Hills

Community Award: Ashcroft’s Group Orange

Rising Star: Mark Pettit, IGA Tweed Valley Way

Transformation and Innovation Award Ritchies SUPA IGA Dromana, Victoria Small Format Innovation Award Swanbourne Market IGA Xpress, WA Rising Star Award Mark Pettit: IGA Tweed Valley Way, QLD IGA Hall of Fame Inductees Oliver and Roseanne Bertoncini: Pearsall IGA, WA

and them” mentality and strongly encouraged all in the room to use the term “us” to all work together toward meeting the many commercial challenges retailers face everyday in their businesses. Scott also briefly spoke about a number of crucial initiatives to help retailers “win” in the face of increasing competition and consumer expectations.

Other speakers included National

Retailer Council Chairman, Ian Ashcroft, Deputy Chairman Ben Ryan and prominent Queensland Retailer Roz White (2017 IGA Hall of Fame).

Day two involved listening to some very interesting guest speakers including former Australian fast bowler and McGrath Foundation founder Glenn McGrath and Monica Lewinsky, former White House intern, social activist and anti-cyber bullying advocate.

Ron Corrigian and Rod Allen

www.mga.asn.au

8

Prod Aust

INDUSTRY NEWS NATIONAL

Do use oneofofFame the following Country of IGA Hall text statements: Origin Labelling Congratulations to Ollie Bertoncini for being inducted into the IGA Hall of Fame. By entering into the IGA Hall of Fame, Ollie joins many other prominent, hard working independent retailers and their families, who have contributed tirelessly to the independent supermarket sector and the customers they serve.

Ollie, together with his hard working wife Roseanne and family, have served and given most of their lives to the growth and prosperity of their businesses and are the hub of their local community in Pearsall WA.

‘Grown in Australia’ or

Members, as you would be aware, the two year transition period for the Country of Origin Food Labelling Information Standard 2016 has now ended.

‘Australian grown’ or

‘Product of Australia’ or

During the transition period, the ACCC ‘Produced in Australia’ or with businesses engaged extensively and industry organisations to make ‘Produce of Australia’ or them aware of the new food labelling requirements under the Standard. In the ‘Australian produce’ or course of this engagement, we became aware that some businesses would ‘Australian product’ or likely experience practical difficulties in achieving full compliance with the Standard by 1 July 2018.

‘Australian (kind of food)’ e.g.

Australian apples MGA has advised the ACCC that owing to circumstances beyond our members control there may be circumstances where our electronic scales suppliers, for example, have failed to provide new or upgraded machines to the stores before 1 July 2018.

Do check which type of claim the product qualifies to make (‘grown’ vs ‘produced’)

Grown in Australia possible for the ACCC to provide exemptions from the law, they do have discretion about the matters they investigate and how they resolve concerns where issues are identified.

Produce Where the ACCC identifiesof possible non-compliance they will take into Australia account the surrounding circumstances.

For example, the ACCC will generally distinguish between businesses that have made a genuine effort to label Australian their products correctly productand a business that makes false or misleading origin claims. In the first year from 1 July 2018, the ACCC will look to resolve most matters by providing businesses with information and seeking changes to address non-compliance. In line with the principles set out in our Compliance and Enforcement Policy, the ACCC will escalate matters for an enforcement approach where appropriate, but will continue to focus on national conduct and traders and conduct having a broader impact on consumers.

Au gro

Pr Au

Au pro

Au be

While the definitions of ‘grow ‘produced’ overlap, ‘produce broader and captures foods t To provide some certainty to industry, the ‘grown’ e.g. water ACCC have published an outline technically of its compliance and enforcement approach located on the ACCC’s Country of Origin Food Labelling (CoOL) webpage.

Do use these marks only for foods that contain exclusively Oliver & Roseanne Bertoncini and family The webpage clarifies that while it is not Australian ingredients Credit card fraud warning!

MGA thanks the ACCC for their understanding concerning this matter and opportunity to collaborate toward full CoOL compliance as soon as practicable.

Bar chart shaded to 100%.

to have the ‘DAMAGED CARD then claims, “to know the card number”.

Members have already been In this example, the food Don’t ‘Grown INPUT’ facility turned off on your credit Do/Produced not allow the customer to key in the warned aboutuse serious the credit card fraud terminal. You need and pin numbers manually,contains being committed causing substantial apayment minimum ofwill75% in Australia’ standardcard mark labels because card to contact your banking provider to have even an invalid card is still likely to come financial loss to businesses. Despite this done. through as “approved” by the bank. our previous warnings members have Australian ingredients and if the product contains less than However, later the bank will not accept reported more incidents of fraudulent would not qualify tobeuse We urge members to alert toa this the transaction and the retailer will activities using valid, but also hacked 100% Australian ingredients. scam. Warn your staff to be aware of this not get a bank refund. This fraudulent credit card numbers.

Please be alert to any customer who claims to have forgotten a credit card or a customer who uses a card that does not respond when making payment, but

August 2018 – Edition 5

‘Grown fraudulent in Australia’ or activity. The potential cost is severe and many members have already ‘Produced in Australia’ type lost thousands of dollars. of standard mark.

activity is becoming common practice causing several retailers to lose money by accepting a manually keyed in number.

Another way to eliminate this occurring is

Don’t become another victim.

Pr A

le A ing

9

INDUSTRY NEWS NATIONAL

Koxka win Best Equipment Exhibitor Award Koxka, one of MGA’s corporate partners, has once again been successful in winning the “Best Equipment Exhibitor Award” at the Metcash Expo 2018.

Koxka has been recognised for having high quality designed refrigerated display cabinets, focusing on retailer’s needs, through excellent product preservation, low dehydration with unmatched product presentation.

Koxka quality display cabinets were selected throughout the exhibition, from the fresh food area at one end of the exhibition to the perishable area at the other end of the exhibition.

Koxka also participated within their own exhibition stand which was an incredibly well-designed, eye catching stand, located in the very center of the exhibition.

With more than twenty Koxka refrigerated display cabinets throughout the exhibition, retailers, consultants and contractors from every state, all recognised the impressive quality Koxka products.

From cold and hot counters, efficient glass door cabinets, island promotional cabinets, frozen displays to retrofit energy efficient door options, Koxka provided a total solution for the independent supermarket sector.

The Koxka team has been designing and producing reliable energy efficient refrigeration display cases, for over 50 years and winning this highly recognised award, has made the entire global team very proud of their achievement.

Koxka would like to thank all their customers and team members that continually support them.

www.mga.asn.au

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INDUSTRY NEWS

SOUTH AUSTRALIA

The Stop Trading Hours Deregulation (STHD) campaign South Australian MGA members across the state have rallied together to oppose any further trading hours deregulation as proposed by the Marshall Liberal Government that would only serve to severely damage independent supermarket operators and retail businesses and greatly benefit the two big chains, Coles and Woolworths.

Colin Shearing, head of SA Independent Retailers has led the charge along with many other stakeholders who opposed to the Marshall Government endeavours to comply with big business demands to deregulate trading hours.

The Marshall Government’s arrogance is on show in its bid to deregulate trading hours. There has been no consultation with the family enterprise and private business sector and no consideration for the welfare of their businesses.

The STHD Campaign is now in its 7th week and significant widespread industry support to oppose the Liberal Government’s deregulation is continuing to gain momentum.

A few weeks ago, Colin along with members, gathered on the steps of the SA Parliament House and invited the crossbenches and the Leader of the Opposition to recommit their support of opposition to the Liberal Government’s damaging deregulation of Trading Hours Bill, which had been introduced into Parliament during that week by the Treasurer, Hon Rob Lucas MLC. Many people opposing the unsavoury Marshall Liberal Government attempts to deregulate trading hours are to be thanked and recognised including; the Opposition and the Crossbenches in supporting this campaign and, considering the commercial negative impacts this Trading Hours Bill will impose upon the SA small business community.

The Adelaide Lord Mayor, Martin Haese, a staunch supporter of family enterprises and privately owned businesses is throwing the weight of the City of Adelaide behind the campaign. Colin Shearing and all those involved are to be congratulated for this tremendous achievement to

block the Trading Hours Bill to date, but there is still so much more to be done.

All members in SA are encouraged to access the campaign website and to add their views to this all important matter – www.stopderegulation.com.au There are petitions to be signed, badges to be worn in stores, a dedicated website, a Facebook page and posters and corflutes to be displayed in stores!

Members are strongly encouraged to make contact with local State MPs, to seek their continued support for NO change to SA Trading Hours. The Liberal Government is still continuing its push to fully deregulate shop trading hours and ignore SA owned retailers.

Crossbencher and Opposition Support

August 2018 – Edition 5

The Trading Hours deregulation legislation must be scrapped in the best interests of all SA independently owned retail businesses.

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INDUSTRY NEWS NATIONAL

Natalie James replaced as Fair Work Ombudsman On Friday 22 June, it was announced that the Fair Work Ombudsman, Natalie James, after 5 years of dedication to this role will complete her tenure and be replaced by Senior Jobs Department IR policy advisor Sandra Parker.

MGA has had a valuable collaborative and supportive relationship with Natalie and her hard working team of professionals. We thank Natalie for all her hard work to engage with our industry sector and we wish Natalie all the best for the future.

Sandra Parker has served as the Job Department’s deputy secretary since 2010, beginning in the employment side before moving to workplace relations and economic strategy.

Ms Parker’s distinguished public service career and extensive experience in complex environments including policy, regulation and service delivery roles, make her an exceptional candidate for the position,” said Workplace Minister and Minister for Small Business, Craig Laundy.

Awarded a Public Service Medal for “outstanding public service in the area of workplace relations” in this year’s Australia Day honours list, Parker will begin her five-year term on 15 July 2018.

Natalie James; Credit: Fair Work Ombudsman

Sandra Parker; Credit: Department of Jobs and Small Business

Her commendation in the Australia Day honours list says Parker “has supported the Government in the passage of legislative reforms, including the re-establishment of the Australian Building and Construction Commission, and improving accountability and transparency for members of registered organisations such as unions and employer organisations”.

Minister Laundy thanked James for her “exceptional work”, saying she had made “a significant contribution to the workplace relations landscape in Australia through educating employees and employers on their rights and responsibilities”.

COSBOA Council meeting On 21 June the COSBOA Board together with Council members held its full day meeting in Canberra.

Many matters effecting the operation and commercial viability of small business owners were discussed and became the foundation for policy framework development.

Kate Carnell, the Small Business and Family Enterprise Ombudsman was a special guest and as a crusader for the wellbeing and prosperity of small businesses, shared with the audience the terrific progress the Ombudsman’s office has made in pursuit of lifting the profile of small businesses within government and with the regulators. Mark Chambers from the Reserve Bank of Australia

spoke about the strength of the Australian Economy and the work force participation rate, former COSBOA Chairman Paul Nielsen spoke about the importance of small businesses being cyber security conscious.

Shadow Minister for Workplace Relations, Brendan O’Connor

The evening dinner guests were the Shadow Minister for Employment and Workplace Relations, Brendan O’Connor and eftpos Senior Executive Warwick Ponder.

Brendan informally addressed the audience on a number of matters including the importance of small businesses to the health and growth of the Australian economy. Unfortunately, MGA’s policies concerning Sunday penalty rate reductions currently taking place differ from Brendan’s view.

Warwick Ponder; eftpos Senior Executive Warwick Ponder spoke about eftpos and least cost routing. He indicated there was difficulty in getting the banks on board to provide least cost routing to their merchants. An eftpos transaction is 40% of the cost of a regular debit card transaction through Mastercard or Visa.

www.mga.asn.au

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INDUSTRY NEWS

NATIONAL

ACCC releases blueprint to reduce electricity prices Over the past two to three years MGA’s members around Australia have experienced serious and debilitating electricity price increases. This fundamental essential service is breaking our members businesses. This matter has been identified by MGA members as the number one issue effecting the viability of their businesses.

MGA has worked closely with the ACCC by providing real evidence, facts and data that MGA members have been willing to share to demonstrate how BIG an issue this really is to members’ businesses.

The ACCC’s recommendations, to significantly improve electricity affordability for Australian consumers and businesses, are outlined in its final Retail Electricity Pricing Inquiry report, released on 11 July.

The inquiry, which commenced in March 2017, began by identifying the root causes of high electricity prices across the entire electricity supply chain, and has now made 56 recommendations detailing ways to fix the National Electricity Market.

“The National Electricity Market (NEM) is largely broken and needs to be reset. Previous approaches to policy, regulatory design and competition in this sector over at least the past decade have resulted in a serious electricity affordability problem for consumers and businesses,” ACCC Chair Rod Sims said.

“There are many reasons Australia has the electricity affordability issues we are now facing. Wholesale and retail markets are too concentrated. Regulation and poorly designed policy have added significant costs to electricity bills. Retailers’ marketing of discounts are inconsistent and confusing to consumers and have left many consumers on excessively high ‘standing’ offers.”

The ACCC estimates its recommendations, if adopted, will save the average household between 20 and 25 per cent on their electricity bill, or around $290 – $415 per annum.

“It is clear that most households are paying far too much for electricity. In addition, some of the most vulnerable in our community are forced to struggle through freezing winters and scorching summers, with many others also having difficulty paying their bills,” Mr Sims said.

Further, Australia’s 2.2 million small to medium businesses could save an average of 24 per cent on their electricity bill, if the ACCC’s recommendations are adopted. “Many small to medium businesses operate on very small margins, and cannot afford the increases to their costs that have occurred over past years,” Mr Sims said.

August 2018 – Edition 5

Commercial and industrial customers, the heaviest users, could see electricity costs decrease on average by 26 per cent.

“Commercial and industrial customers, like mining and manufacturing companies, have watched what has been a relative competitive advantage to them, affordable electricity, now threatening their viability,” Mr Sims said.

“While important steps have been taken recently, restoring electricity affordability will require wide ranging and comprehensive action. We believe our changes can and will, if adopted, have a powerful and tangible impact on electricity affordability for all Australians; this will reduce economic inequality and enhance our national welfare.”

“Three further points need to be made. First, our recommendations require some difficult decisions as sound economic reform usually does. Second, despite poor decisions over at least the past decade creating the current electricity affordability problem, it now falls to current Commonwealth and state governments to make the difficult decisions to fix it. Third, we must move away from narrowly focussed debates; addressing affordability requires change across a broad front,” Mr Sims said.

The ACCC’s recommendations include: 1. Abolishing the current retail ‘standing’ offers (which are not the same between retailers), and replacing them with a new ‘default’ offer consistent across all retailers, set at a price determined by the Australian Energy Regulator (AER).

2. Requiring retailers to reference any discounts to the new ‘default’ offer pricing determined by the AER, making it easier for consumers to genuinely compare offers.

3. Conditional discounts, such as pay-on-time discounts, must not be included in any headline discount claim.

4. A mandatory code for comparator websites be introduced so that offers are recommended based on customer benefit, not commissions paid.

5. Voluntary write downs of network overinvestment, including by the NSW, Queensland and 6. Tasmanian governments (or equivalent rebates). This could save consumers in NSW, Queensland and Tasmania at least $100 per year.

7. Premium solar feed-in-tarif schemes should be funded by state governments and the small scale renewable energy scheme should be phased out, saving non-solar consumers $20-$90 per year.

8. Government support to make bankable new investment by new players in generation capacity to help commercial and industrial customers and drive competition.

9. Restructuring of Queensland generators into three separately owned portfolios to improve competition.

10. Limiting companies with 20 per cent or more market share

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INDUSTRY NEWS

from acquiring more generation capacity.

11. Improving the transparency of over-the-counter contract trading by requiring reporting of these trades to a central registry.

12. Improving the AER’s powers to investigate and address problems in the market and increasing penalties for serious wrongdoing.

“The ACCC’s affordability measures for consumers also include improvements to state and territory concession schemes, and funding for organisations to assist vulnerable consumers to choose a lowpriced electricity offer that suits their circumstances,” Mr Sims said.

“One of the most important recommendations is to move customers of excessively high ‘standing’ offers to a new standard ‘default’ offer to be independently set by the Australian Energy Regulator.”

Moving average residential customers who are still on the range of current ‘standing’ offers to the new ‘default’ offer could result in savings of $500 to $750 per annum (25-35 per cent).

Similarly, small and medium businesses could save $1450-$2250 (30-35 per cent) per year by moving to a standard ‘default’ offer. Currently over 20 per cent of small businesses are on high ‘standing’ offers. Too many consumers and small business

customers have given up trying to understand offers and switch in a confusing retail electricity market. Big changes are required to make it easier for consumers and businesses to understand market offers and improve competition,” Mr Sims said.

Estimated electricity bill savings VIC

NSW

SE QLD

SA

TAS

Average residential customer

$290

$410

$420

$370

$415

20%

24$

25%

21%

21%

Average residential standing offer customer

$500

$550

$500

$750

*

30%

30%

25%

35

Average Small Business customer

$600

$1050

$950

$800

20%

25%

25%

20%

*

Average Small Business standing offer customer

$2000

$2250

$1450

$1500

*

35%

35%

30%

30%

*

%

* *

*As electricity prices are regulated in Tasmania there is no distinction for standing offer customers.

As the ACCC Electricity Prices report recommendations are being discussed and absorbed MGA members are advised to continue to be vigilant and to “shop around” for the best electricity prices for their businesses.

Source: The ACCC Media Release

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INDUSTRY NEWS

VICTORIA

The NSW Container Deposit Scheme – Open forum and workshop Thanks to the NSW Small Business Commissioner Robyn Hobbs and the NSW Cross Border Commissioner James McTavish, a meeting including all government and private agencies as well as retailers and beverage companies associated and effected by the NSW Container Deposit Scheme was organised in Sydney on Friday 29 July. The purpose of this forum was for key agency leaders to hear the issues and matters of concern associated with the CDS and to workshop suitable solutions. Many in the room felt the scheme needed to “start again” and a community based not for profit scheme be introduced with neutral collection points. The agencies concerned were not wishing to hear this honest feedback and instead ploughed on to seek “band aid” solutions to make a bad scheme a little better.

The cross-border issues have been manifestly damaging to MGA members across all NSW state borders none more than the Victorian border. Thankfully before this meeting, a delegation of family enterprises and private retail businesses led by Albury IGA retailer Bob Matthews together with Commissioners, Hobbs and McTavish and Deputy Premier John Barilaro, a temporary assistance package was developed to help these businesses recoup some of the costs associated with the loss of businesses and profit owing to the NSW CDS. The current collection points in the form of Reverse Vending Machines are in essence anti-competitive as the majority are located in Woolworths car parks with an exclusivity zone of 2.5 kms and produce container vouchers only redeemable at Woolworths outlets therefore dragging independent supermarket customers away from the independents and into the chain stores.

MGA members from the NSW Victorian

August 2018 – Edition 5

Phil Thomas, Craig Walton, Bob Matthews, NSW Small Business Commissioner Robyn Hobbs and Brendon Doyle border who attended and played a big part in the forum included Bob Matthews (Albury), Craig Walton (Corowa), Brendon Doyle (Balranald) and Phil Thomas (Wentworth) – we can’t thank you enough for the time you have given to this incredibly badly executed scheme that is threatening the viability of your businesses. MGA stated publicly that this “for profit scheme”, in its current form, is anti-competitive, dysfunctional and polarising.

Agencies that were represented included; the NSW EPA, Exchange for Change, Return and Earn, Tomra Cleanaway and Paul Myers representing the Premier and Cabinet.

The EPA gave a brief overview of the CDS which commenced on 1 December 2017 – YTD 465 million containers were returned (approx. 13 per cent of all containers distributed). Whilst this is a very poor redemption result to date the intent is very clear. This is a program put in place for litter reduction and cleanliness.

Sections of the business community impacted by the CDS were extremely disappointed with the redemption rates and the false spin of its success, given the enormous cost burden the scheme is having on their businesses. The forward paying method made by beverage manufacturers has meant there are hundreds of millions of dollars of unused funds awaiting usage. The scheme should

Jos de Bruin, Robyn Hobbs, Bob Matthews and Brendon Doyle never have impacted businesses this way by paying forward based upon the total containers they distribute. This has impacted their cash flow and the viability of their businesses.

At this point there are 630 collection points (200 kiosk style) for consumers to take their eligible containers for a 10 cent per container refund around NSW. Many more collection points are required, and the independents must be given a priority in the distribution of them.

There were five workshops on the day at which all participants were able to have a say, give feedback and provide suggestions for improvement. The workshops included; communications, cross border matters, border assistance, export protocol, reverse vending machines / over the counter collection points, locations and vouchers and suggested improvements.

On behalf of MGA members, we wish to thank Commissioners Hobbs and McTavish as well as all the agency heads for coming together to discuss all the issues at hand concerning the NSW CDS. MGA applauds this forum and strongly encourages positive action to be taken to drive toward the many solutions suggested to improve the scheme or at best even look at starting the scheme again so that it could become a model for National Harmonisation which is not the case now!

15

INDUSTRY NEWS NATIONAL

GST to apply to low value imported goods MGA members please note that a significant change will occur to the application of a Goods and Services Tax (GST) to the sales of all physical goods imported with a value of under $1000 imported by consumers from 1 July 2018.

This change has implications for Australian GST-registered businesses.

This applies to international businesses that meet the GST registration threshold of A$75,000 in sales in a 12 month period.

These businesses include: • Overseas retailers (merchants and online marketplaces) • Overseas re-deliverers and • Domestic retailers who use drop shipping services.

Existing processes for imports above A$1,000 at the Australian border

remains unchanged. If you are an Australian business that purchases low value goods from overseas for business use, remember to provide your ABN to the supplier, along with a statement that you are registered for GST. This means that you should not be charged GST on these transactions. If you are incorrectly charged GST, request a refund from your supplier.

These changes ensure that goods imported by consumers in Australia receive the same tax treatment as goods purchased domestically.

For more information about how these tax changes affect business purchases, visit ato.gov.au/lvigbusiness.

Source: Holly – Australian Taxation Office

Tony Smith Speaker of the House In late June, a MGA delegation of members attended a business breakfast organised by Speaker of the House in Canberra, Tony Smith MP and included a special guest in Minister for Small Business, Jobs and Workplace Relations, Craig Laundy.

Minister worked in his family hotel business up until recently when he was elected to the Federal Parliament. Minister Laundy is committed to “getting out of the way” of small business by reducing unnecessary red tape and cost burdens and encouraging small businesses to invest in innovation.

Tony has been a long-time supporter of Small Businesses in his own electorate and understands the day to day issues there’s business face. Minister Craig Laundy is no slouch to small businesses either. The

Thank you to MGA’s members who attended this event. This activity is crucial in lifting MGA’s profile to address many matters of concern at the Federal Parliament level.

Richard Hill, Rod Allen, Shane Wyles, Minister Craig Laundy, George Kovits, XTony Leon and Jos de Bruin

Rod Allen, Tony Smith and Rod Berryman

Significant Goods and Services Tax (GST) changes In recent weeks, in the biggest changes to GST allocations since the tax was introduced in 2000, the Government announced changes to the method for distributing GST to address deficiencies in the current allocation methodology.

State and territories will now be brought into line with the financial performance of either NSW or VIC (whichever is higher), rather than the strongest-performing jurisdiction under the current system, evening out the impact of extreme events such as mining booms.

Thanks to an overall increase in the funding that will be distributed, all jurisdictions will be better off. No state or territory would receive less than 70 cents for every dollar of GST revenue collected from 2022/23, rising to 75 cents from 2024/25.

WA would receive the largest increase of $3.3 billion by 2026/27, with the ACT getting the smallest boost of $46 million.

The Treasurer, the Hon Scott Morrison MP, explained the changes as: “Well, it’s all about having a bigger pie. At the end of the day, what the Commonwealth will be doing is making sure that after we’ve collected all the GST revenue we’ll add a bit more to that each year and that means that there is more to share around all the States and Territories, which will mean more hospitals, schools, police, and essential infrastructure”.

www.mga.asn.au

16

INDUSTRY NEWS

August 2018 – Edition 5

17

INDUSTRY NEWS

Six in ten Aussies buy organic: Inside the $2.4 billion industry The organic food industry has burst onto the consumer scene in the last couple of years and new research released by Australia Organic suggest that it isn’t slowing down anytime soon.

The research, conducted by Mobium Group, suggests that more than six in ten Australian households buy organic products in any given year.

Furthermore, the same report reveals more than one in ten Australians (12 per cent) consider themselves to be highly committed organic purchasers, outlaying roughly 40 per cent or more of their annual grocery spend on organic food or even household products.

in regards to the “thousands of new chemicals and pesticides” being used in consumer goods is “inspiring”.

The concerns around pricing and trust are validated, according to co-producer at South Australian meat supplier Border Park Organics, Peri McIntosh.

“Because it (organics) has had a surge in popularity, I guess that everyone is looking to get on board,” McIntosh told SmartCompany.

“Manufacturers are understandably trying to get a piece of the pie. We always suggest that you look for certification logos whenever you can” she says.

The research is based on online surveys completed across seven days in February by 1000 primary grocery shoppers, aged between 18 and 69 years.

McIntosh believes the price factor is a genuine issue facing the industry and education into why this is the case is important.

The health of the organic market is trending upwards; it’s currently worth $2.4 billion and the retail market is estimated at $1.6 billion, an increase of 88% since 2012. According to the report, the retail market accounts for more than 70% of Australia’s organic market, which includes everything from fresh produce, to meat, to household products, while exporting accounts for the remainder.

“We are a lot more restricted, so the outturn is lower (than other distributors), but I guess it’s the value you put on organics,” she says.

Despite the growth numbers collected in the study, the local organic industry is still confronted with a number of hurdles. A whopping 67 per cent of respondents to the Australian Organic research suggested cost is still a major barrier in making a more meaningful switch to organic products.

Founder of organic children’s food company Whole Kids, Monica Meldrum, has been in the organic market for over a decade and told SmartCompany “the numbers don’t surprise me at all”.

Meanwhile, 40 per cent of respondents indicated that an inability to trust whether food is actually organic or not plays a part in whether to purchase organic products.

Australian Organics General Manager Sue Willis says the education of consumers

But the market is definitely growing and McIntosh believes people are turning to organic products for a variety of reasons, sighting health, environmental and animal welfare issues as the key concerns.

Whole Kids burst onto the scene in 2005 after Meldrum found it difficult to find healthy snacks for children in the supermarkets. Best known for it’s organic fruit bars in its early days, Whole Kids has now expanded its range into a wealth of organic snack options including popcorn, biscuits, juices and dried fruits.

Meldrum shares McIntosh’s sentiments; she too believes education surrounding organic certification is imperative to the future of the industry.

“I think that the important thing is certification and more regulation of the word organic,” Meldrum told SmartCompany.

“People are recognising the Australian Certified Organic logo. It’s an education factor and the supermarkets, especially Coles, are really good in only allowing certified organic products onto the shelf,” she says.

At the end of the day, she believes going organic is “about investing in your health upfront”, and that it’s difficult to price on what you’re putting into your body.

Key findings from the Australian Organic report • More than six in 10 Australian households buy organic in any given year; • ‘Chemical free’ (82%) and ‘additive free’ (71%), along with being ‘environmentally friendly’ (70%) are viewed as the large benefits of the organic market.

• Cost continues to dominate as the biggest hurdle in greater purchasing of food (67 per cent), followed by ‘trusting it is organic’ at 40 per cent; and • Millennials are becoming more health and environmentally-conscious and educated about benefits of organic.

Source: Benjamin Savona

www.mga.asn.au

18

INDUSTRY NEWS

VICTORIA

Least cost routing – merchant banking fees Following on from the many communications MGA has sent to its members over the past 12 months, concerning the increasing costs of bank merchant fees please find following information that all members must be aware of as you maybe paying far more for these transactions than you should be.

We thank Mark McKenzie, CEO of Australasian Convenience and Petroleum Marketers Association (ACAPMA) for sharing these insights with MGA as they are experiencing exactly the same issue as MGA’s members.

Members please note, the cost of debit transactions (as opposed to credit transactions) has almost tripled for many retailers – due largely to the introduction of ‘tap n go’ for consumers.

The problem has been further compounded because Australian consumers have increasingly shifted to debit cards for regular low value transactions (e.g. purchases below $10) as opposed to further building up household debt on credit cards.

So what is the cause of the increase in merchant fees?

The change in cost of debit transactions, coupled with the increasing volume of debit transactions has more than doubled the transaction costs for many retailers in recent years”, according to ACAPMA CEO Mark McKenzie.

MGA understands that many supermarket and liquor retail businesses are now paying an average of 42 cents to process a single $60 debit transaction.

else that would listen) to intervene on this issue.

As MGA has previously advised this increase in merchant fee costs is due to most of current payment terminals being programmed to process ‘tap n go’ transactions via the higher cost card scheme gateways (i.e. Mastercard and Visa) by default, rather than the lower cost eftpos gateway.

While this historically occurred because most consumer cards were not able to process eftpos transactions via ‘tap n go’, this situation has since been corrected with the issue of new consumer cards in the last few years.

But no-one, not the banks, not the card providers and not the Government – is telling merchants that they now have the right to demand which payment route is utilised to process their debit transactions.

As previously advised, MGA members are strongly encouraged to follow this up with their banks. Retailers can now choose how their debit transactions are processed and the banks have committed to accommodate this choice (albeit that most are doing it at their own pace).

Supermarkets and liquor store retailers can choose to process transactions via the lower cost eftpos gateway as opposed to the higher cost card scheme gateways (i.e.

Mastercard and Visa) – at a saving of around 28 cents per transaction (at 2018 costs).

Further, these fees are being levied on a transaction where up to 40 per cent of the transaction is liquor or tobacco excise and GST. This which means that supermarket and liquor retail businesses are paying more for the privilege of collecting Australian Government taxes – with both the banks and the Federal Government staying silent on this issue.

If fuel retailers want to reduce the costs of processing their debit transactions, then they need to follow three simple steps: 1. Have a look at what you are currently paying for debit transactions. If your transactions costs are bundled – a ‘neat trick’ to hide what you are paying to process debit transactions – ask your bank or merchant services provider to report debit transactions separately.

2. Contact your current merchant services provider to seek a change in your terminals so that they have the capacity for you to elect which payment gateway is used to process debit transactions via ‘tap n go’. That may involve a change in terminals and monthly terminal costs, but this will be paltry when compared with the total monthly costs of your transactions.

3. Work with your bank to programme your terminal to process all debit transactions by eftpos as a default.

To change this situation, MGA has joined forces with ACAPMA and the Council of Small Business Organisations (COSBOA) to lobby the Reserve Bank, the Federal Government (and anyone

Importantly, if your bank (or other merchant services provider) does not offer a choice of payment routing for debit transactions then look for another provider.

This compares with a cost of just 8 cents for the same transaction just three years ago.

Given the large volume of low value (i.e. less than $100) transactions processed by a supermarket or liquor retailer on any given day, the retail industry is more affected by these changes than many other retail industries in Australia.

August 2018 – Edition 5

19

INDUSTRY NEWS QUEENSLAND

NATIONAL

Drakes Charity Golf Day 2018 Friday 1 June was the Drakes QLD Charity Golf Day held at the Glades Golf Course on the Gold Coast.

MGA together with MGA members from the IGA and FoodWorks brands attended a NAB merchant banking fees workshop in early June.

The annual event raises funds for Ronald McDonald House SEQ (RMH).

With tremendous support from suppliers and contractors, the event was again a sellout which saw 150 people in attendance.

The weather was great for the midday shotgun start and with all 18 holes double stacked with teams, everyone needed to keep moving.

The day had some great and not so great golf, but with everyone attending to have some fun and raise dollars for RMH, everyone enjoyed themselves.

With a dinner and auction held after the golf had finished, a record $56,865 was collected for RMH – taking the grand total raised from the annual golf days to $180,446.

Drakes would like to say THANK YOU to all suppliers who have supported this event over the years.

Team Metcash with Mark Meszaros Drakes QLD State Manager Winning teams on the day 1st place – Golden Cockerel 2nd pace – Total Focus Cleaning 3rd place – Phillip Morris

Drakes golf day group photo

NAB workshop – merchant fees

Cheque presentation with Mark Meszaros, Simone Sherrin RMH, Roger Drake Drakes

The workshop was organised by NAB executives to hear firsthand of the exorbitant merchant payment costs that are being borne by family enterprises and privately owned businesses across the country.

The “tap n go” payment phenomenon is growing rapidly and owing to the unavailability of “least cost routing” has become a significant cost impost for members. Regrettably we are not able to pass on the cost of merchant fees to consumers as the rental car, hotel, airline and other such industries are able to do!

It was acknowledged as a principle by Leigh O’Neill, Executive General Manager, Business Direct & Small Business, that “Family Enterprises and privately-owned businesses are the engine room of our economy... Our customers want to deal with NAB in a simpler and more connected way and we are making that happen.”

To summarise, it was determined that for NAB to grow its family enterprise and private business banking offer it had to; deliver transparency and certainty for small business, build a sustainable trust with customers, remove complexity and costs – eg. the multiple players and inputs into the merchant payment system, complexity of fee structures, and the quality and speed of support when things go wrong. It was determined that transparency, certainty and reliability are vital ingredients eg. provide accurate and quick answers when things go wrong, simple fee structures and insights into consumer payment behaviour and the industry landscape as well as sharing timely information and insights around industry changes, for example ‘least cost routing’.

There were a number of other matters raised and discussed but essentially the NAB team took on board the valuable insights provided by workshop attendees and have committed to working toward providing its small business customers with a rewarding and beneficial banking experience – many MGA members are NAB customers.

www.mga.asn.au

INDUSTRY NEWS

21

www.mga.asn.au

22

LEGAL AND HR

NATIONAL

LEGAL AND HR Compliance with your workplace obligations We are constantly reading in the press about employers who fail to pay their employees correctly. 7 Eleven was one of the biggest and most publicised cases of underpayment of wages. There was an estimated back payment of more than $100 million to employees and former employees. Other big businesses have paid out millions of dollars in fines and back payment liabilities.

Most retail member employers follow the same wage tables each year when a pay increase is introduced. It is important to make sure that the new rates have been applied and to check if there is any change in an employee’s status and to know when any overtime rates are applicable.

It is not just the wages and the penalties that need to be accurate when paying staff but other issues also require an employer’s attention. These include making sure that the payslips are provided to employees showing all the calculations for annual leave, personal leave and any overtime that has been

worked. Wage slips should also show superannuation payments.

The Fair Work Ombudsman is constantly sending in their Fair Work Inspectors to review wage records and record keeping and MGA strongly advises members to be vigilant in making certain that they are following the wages guide correctly. You must be able to produce all your records showing correct payments should an Inspector enter your workplace.

Here are a few simple rules you can follow to ensure you are making the correct payments. Check your wage table, and make sure that your classifications are correct. The General Retail Industry Award provides guide lines for classifications and the MGA wage tables show payment for ordinary hours and the penalties that are applicable. We have also included the overtime hours calculations.

MGA is available to assist member should they require any help in being compliant with the legal obligations to their employees.

What is the Scanning Code of Practice?

The Master Grocers Australia Scanning Code of Practice (the Code) is designed to protect customers who purchase goods in an independent supermarket wherever there is a computerised scanning system.

The Code only applies to those independent supermarkets who wish to participate on a voluntary basis. Whilst independent supermarket owners are encouraged to apply the code in their stores it is not a compulsory document.

However, it does provide certainty when dealing with customer queries about the prices of goods and it is a code which independent supermarkets owners can use to demonstrate best practices in their store. There is an effective dispute resolution procedure included in the Code which can be used if a situation becomes difficult.

How can the Code be used in your store? There can be situations where the Code may be used, this may include

August 2018 – Edition 5

providing guidance on what to do if there is a scanning error.

It also provides procedures to follow when there is confusion for customers over the marked down price of goods that are then returned to their normal price. Employees often need to be trained to handle situations when errors occur and having the Code provides assistance.

The Scanning Code of Practice is available to members from MGA, together with notices to display in your store and stickers to place at your checkouts.

For further information please contact MGA on 1800 888 479.

23

LEGAL AND HR NATIONAL

Making a management contract

The Retailers Accountants

Many members want to reward their best employees by giving them a managerial role and paying them a salary. It is important for members to be aware that whilst having a management contract is a commendable way of providing incentives to good employees there may be some pitfalls that should be considered.

All employees who earn less than $145,400 per annum are basically subject to an industrial award and they all have the protection of the National Employment Standards, even for salaried managers, it is not possible to contract out of the NES entitlements such as, annual leave, personal leave and parental leave. Long service leave is also a statutory requirement for all Australians.

All retailers are aware of the high penalty rates that are payable under the General Retail Industry Award (GRA) on certain dates and times. Sunday penalties and public holidays are considered to be formidable and can be extremely high depending on the classification. There are classifications in the GRA that cover managerial staff and it is these rates that should be taken into account when forming a “management contract.”

If you intend to make a management contract you should carefully consider what hours you expect your employee to work and you will need to calculate whether your proposed “salary payments” compensate for what is payable under the award. It should be noted that a store manager who works on Sunday for 5 hours under the GRA would receive $228.85 and would be entitled to $286.10 for the same hours on a public holiday.

All entitlements need to be provided for, including annual leave loading. The contract needs to be carefully worded to ensure that any employee who agrees to a management contract is given the assurance that all award entitlements are covered in the agreement. This also protects the employer in the event that the employee challenges the agreement at some time in the future.

If a member has any doubt about making a management contract with an employee then we recommend that you discuss your proposals with MGA’s Legal and HR Team.

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www.mga.asn.au

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LEGAL AND HR NATIONAL

Worker stress claims during performance management Reasonable management actions such as performance management and disciplinary procedures, that are carried out in a reasonable manner are excluded from workers’ compensation claims for mental or psychological injury. There are also several other steps members should take to reduce workers’ compensation claims.

Firstly, all workplace hazards must be identified, including psychosocial hazards that may cause a psychological injury to an employee. Supervisors have a legal duty to report these hazards as soon as they arise. Employers are legally responsible to ensure their supervisors can identify if an employee isn’t coping mentally and are able to deal with the employee in a reasonable manner. A process of intervention must then be implemented to deter the possibility of the employee developing a psychological injury.

Secondly, an intervention process must be implemented correctly to deter further injury being caused to the employee and to provide sufficient evidence that reasonable management action was administered in the event a claim reaches court.

Thirdly, legally compliant workplace policies and processes that are followed by supervisors will support that reasonable management action was carried out.

As a final point, members should keep in mind that if supervisors and management behave reasonably towards employees and properly document their actions, it is likely that a stress claim will be unsuccessful.

MGA welcomes David Mostokly to the team David Mostokly joined the MGA Legal and HR Services team in May 2018. David is a solicitor of the Supreme Court of Victoria.

Prior to joining MGA, David worked in a general practice law firm in Melbourne for approximately five years. David has also volunteered for a several legal organisations such as the Victorian Family Law Pathways and St Kilda Legal Services.

As part of the Legal and HR team at MGA, David will assist members with advice on a broad range of employment law and HR matters including award interpretation, anti -discrimination, wage enquiries, dismissals, and management of employees’ performance and conduct issues.

David looks forward to working with all our members in the future.

www.mga.asn.au

WYNNS 2018 COLLECTION –

L I MI T E D R E L E A S E

TAKE YOURS HOME TODAY

–

27

LIQUOR NEWS NEW SOUTH WALES

LIQUOR NEWS NSW digital licence rollout will commence late 2018 NSW is leading the way in the development of convenient and secure digital driver licences.

The introduction of a digital driver licence (DDL) will impact stores selling tobacco when using, sighting, verifying, processing and/or storing driver licence information, electronically or in physical form.

A trial is currently underway in Dubbo NSW, with a planned Sydney metro rollout commencing in October 2018.

The digital driver licence project team has been partnering with the liquor and gaming industry, police, Service NSW,

RMS and Transport in the development and implementation of the new licence and will continue to do so to ensure the success of the planned state-wide rollout by 2019.

Legislation changes were made to enable the Dubbo trial and will also enable the metro rollout, these changes enable the DDL to be accepted as evidence of age in pubs and liquor stores in Dubbo and soon the Sydney metro area. These changes can also enable the DDL to be accepted as evidence of age in the sale of tobacco in those areas.

Legislation for the state-wide rollout of

the DDL was passed in May 2018 with DDL becoming available to NSW driver licence holders across NSW from April 2019.

For more information regarding the introduction of the new digital driver licence, please visit www.service.nsw.gov. au/digital-driver-licence.

www.mga.asn.au

28

LIQUOR NEWS

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29

LIQUOR NEWS VICTORIA

Victorian liquor fees and penalties increase Every year because of indexation under the Monetary Units Act 2004, gambling and liquor fees and penalty units increase.

New fee and penalty amounts The values for a fee unit and a penalty unit have been approved for the 2018-19 financial year and are as follows: • The value of a fee unit rose from $14.22 to $14.45 • The value of a penalty unit rose from $158.57 to $161.19 Packaged Liquor License fee for the 2018-19 financial year base will increase by $31.20 to $1,965.30 whilst the trading during non-standard hours will increase by $93.90 to $5,896.20.

What does the increase mean?

The increases to application fees and penalties for noncompliance occur immediately from 1 July 2018. All submissions after this date will be required to pay the new amount.

Liquor licence renewal fee increases will take effect when payable by 31 December 2018.

Should you have any further queries contact the MGA national support office on 1800 888 479.

Important changes for Victorian liquor licensees On 5 June 2018, the Victorian Parliament passed the Liquor and Gambling Legislation Amendment Act 2018 (the LGLA Act). The LGLA Act amends the Liquor Control Reform Act 1998 (LCR Act) which will mean several changes for liquor licensees.

Some key changes that come into effect from 18 July 2018 and relate to: RSA register It will no longer be mandatory for licensees to establish and maintain an RSA register. Licensees will still be required to retain a copy of the most up-to-date RSA certificate or evidence of an approved RSA program completion issued to any staff member involved in the sale and service of liquor.

Further, a licensee must still provide information to an authorised person on request, including the name of the responsible person at the licensed premises, the name of each person who is engaged in the sale and service of liquor and the date on which each person first sold or served liquor on the premises.

As a result, MGA recommends that you maintain your current RSA register.

Updated mandatory store signage

Static alcohol advertising Licensees are prohibited from displaying or causing to be displayed, static alcohol advertising within 150 metres of the perimeter of a school.

This includes: • Banners, hoardings, signs, images or rolling static displays • Digital billboards and panels including moving or video images • Moveable billboards and displays.

The VCGLR has updated all packaged liquor mandatory signage which reflect the new applicable penalties from 29 June 2018.

The prohibition on static alcohol advertising prohibition does not apply where the advertising is: • A logo, emblem or product name on a building occupied by a person conducting a business that is associated with liquor • Alcohol advertising within a licensed premise or on an exterior of a licensed premises • Alcohol advertising on clothing worn by a person • Alcohol advertising at a sporting ground or a racecourse.

The following signs have been updated: • “Under 18? No Supply” • “Under 18? Can you enter?”

• “Do not attempt to buy liquor for under 18s” • “Under 18? No supply (Party Bus)” • “Unruly behaviour” (Party Bus).

Under the Liquor Control Reform Act 1998 as a condition of your license you are required to display these signs in an obvious location in your store along with the original copy of your current year liquor license.

To print and replace your existing posters please visit www.vcglr.vic. gov.au/print-my-liquor-signage.

www.mga.asn.au

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LIQUOR NEWS

August 2018 – Edition 5

31

LIQUOR NEWS NORTHERN TERRITORY

Riley Report recommendations threaten the viability of independent packaged liquor retailers In the last edition of the Independent Retailer, MGA reported on the Riley Final Report and the 220 recommendations it made – of which all but one was accepted in full or in principle by the Northern Territory Government.

Since then, MGA, along with Sally McMartin CEO of Lhere Artepe Enterprises, have made submissions to and met with representatives of the Alcohol Review Implementation Team (ARIT) to outline that if those reccommendations are implemented, they would have a devastating impact on smaller supermarkets and bottleshops throughout the territory by rendering them unviable.

These recommendations are; • Existing store licences transitioning to a takeaway licence be subjected to a condition restricting liquor sales to 15 percent of total store sales turnover and a seven-year sunset period in which to obtain a takeaway.

• The physical partitioning / separation of liquor from the grocery section of an existing store.

• The sale of takeaway liquor only be permitted to be sold from a standalone business in which the primary focus of the businesses is the sale of alcohol.

• The cost modelling of the Introduction of risk-based license fees.

MGA will continue to have dialogue with the ARIT and Minister Fyles to achieve a workable outcome for all parties and will continue to work with other NT representative industry bodies to drive home the negative economic impact these recommendations, if accepted, will have on small to medium businesses.

This could result in the loss of local jobs, and have an impact on other local service providers and goods suppliers.

MGA will keep members informed as information becomes available.

Should you have any queries regarding the recommendations, please contact MGA Liquor President, George Kovits on 1800 888 479.

NATIONAL

NE W

Ritchies NSW GM Liquor joins the MGA National Liquor Committee

!

MGA is proud to announce the appointment of Adrian Ricci onto the MGA National Liquor Committee.

Adrian who is also a member on the NSW IGA Liquor Committee brings with him over 20 years of senior independent retail experience. His current role as Ritchies NSW GM Liquor gives him a strong understanding Adrian Ricci of the daily issues faced by independent liquor retailers and strengthens our engagement with NSW state government Ministers, Liquor & Gaming NSW and other regulatory bodies.

NOW AVAILABLE. CONTACT YOUR DE BORTOLI REPRESENTATIVE FOR MORE DETAILS. /DeBortoliWines debortoli.com.au

On behalf of MGA’s Liquor Committee and MGA’s Board, we warmly welcome Adrian and look forward to his contribution.

www.mga.asn.au

Ask your customers to press or to get cash out and avoid ATM fees.

CHQ

eftpos is a great way to give your customers added value with their everyday purchases. The more cash they get out from your store, the less cash you will have on the premises, helping to reduce the cost and risk of doing business.

SAV

33

TRAINING NATIONAL

MGA INDUSTRY TRAINING Falls from heights Many people misunderstand the seriousness and the risks involved when working at heights. One of the misconceptions of working at heights is that falls only happen when working on high rise buildings or from a roof top. Whereas, the majority of injuries occur at less than three metres above the ground.

According to Safe Work Australia: 1. Every year in Australia, an average of 29 people die from work related falls.

2. Falling from a height was the cause of 11 per cent of all work-related deaths in Australia.

3. Half of the fatal falls involved distances of three metres or less (31 per cent from a height of two metres or less, and a further 19 per cent involved falls from between two and three metres).

4. 21 employees every day lodge claims for a falls-related injury that required one or more weeks off work in Australia.

5. A typical claim due to a fall from height involved 6 weeks off work and compensation paid average over $14,000 per claim.

6. Falls from ladders were the primary cause of work-related fatalities from heights (16 per cent).

7. Falls-related fatality rates increased with age, with workers aged 45 years and over making up 65 per cent of those who died following a fall from height.

8. There has been no improvement in the number of fatalities or the fatality rate in the past eight years.

After reviewing various Australian workplace injury and fatality records, the statistics above paint an alarming picture that falls from heights are still a very large cause of injuries and fatalities within Australian workplaces.

Invest in height safety training If you want to substantially reduce the risk of a fall from height at your workplace, it is recommended to invest in relevant height safety training for your workers and supervisors.

Competition winners from the Metcash Expo It was great to see so members at the Metcash Expo taking advantage of the training deals that were made available for the expo. If you wish to discuss how MGA can assist you with your training needs, please call us on 1800 888 479.

At the expo, MGA ran a competition where members had the chance to win training vouchers for their store. 1st prize was a training voucher valued at $150.00 and 2nd and 3rd prizes were a $100.00 training voucher. After many guesses submitted, the winners were: 1st prize: Doug Manojlovic; 2nd prize: Belinda Gibbons; 3rd prize: Jorja Williams.

Congratulations to all of the winners – MGA will contact you directly to let you know.

T H E B E S T O F TA S M A N I A I S C R E AT E D B E T W E E N D E V I L ’ S C O R N E R & THE DEEP BLUE SEA

By providing your staff and supervisors with height safety training, height safety procedures and appropriate protective equipment, you will significantly improve the confidence and competence of your staff in conducting work at height safely.

www.mga.asn.au

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TRAINING

NATIONAL ONLINE COURSES MGA delivers training and compliance solutions specific to the needs of independent retailers. We have a range of training and compliance solutions readily available for members. *Log in to our website with your member login to order your courses at these member prices.

Call us on 1800 888 479 if you need your log in details.

Manage Training System (MTS) Manage Training System (MTS) is an easy to use training program – set up training per department, allocate courses to staff, monitor results and have complete training records for all staff. Either use included HR policies or upload your own including staff rosters!

Managing Your Employees It is important to understand the laws associated with managing employee issues. Learn how to deal with difficult employees and resolve workplace problems.

Knowing the correct procedure to follow if termination of employment is required is vital so as to avoid costly court hearings. This seminar will provide you with the necessary information to establish a safe and productive workplace.

PERTH Date: 23rd August, 2018 Time: 9.00am – 1.00pm Members price: $165

August 2018 – Edition 5

TRAINING

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Online & face to face training MGA Industry Training offers discounted training for all members. Courses are online or can be conducted face to face at your business for 10 or more employees! Responsible Service of Alcohol, Food Safety, Employment Law, Customer Service, plus more!!!

Tobacco training This course covers information on the legal obligations for the sale and service of tobacco, non-tobacco smoking products, smoking accessories, e-cigarettes and e-cigarette accessories in each respective state/ territory. Training ensures your staff comply with Tobacco Retailing Laws – protecting your business.

STATE BASED TRAINING Duration: 30 minutes Member price: FREE

Don’t forget to log in for your member discounts!

Visit www.mga.asn.au to see our range of training courses!

www.mga.asn.au

TM

Monde Nissin