Motor Trader magazine, November 2016

NOV 2016

OFFICIAL PUBLICATION OF THE MOTOR TRADES ASSOCIATION OF QUEENSLAND

MEMBER'S CLASSIC: 1972 HOLDEN LJ TORANA INSIDE: ANNUAL REPORT 2016

The benchmark of industry standards.

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HEAD OFFICE Building 8, 2728 Logan Road, Eight Mile Plains, Qld 4113 P.O. Box 4530, Eight Mile Plains, Qld 4113 Tel: 07 3237 8777 Fax: 07 3844 4488 Toll Free: 1800 177 951 Email: publications@mtaq.com.au Website: www.mtaq.com.au EDITOR Jonathan Nash ART DIRECTOR Marco Ilinic INDUSTRIAL RELATIONS Ted Kowalski Paul Murray POLICY Kellie Dewar, General Manager MTA Queensland ADVERTISING ENQUIRIES Barry Browne 03 9807 9154 Email: barry@barrybrownemedia.com.au EDITORIAL Editorial submissions are welcomed but cannot be guaranteed placement.

For more information telephone the Editor 07 3237 8777 SUBSCRIPTION RATES (including GST) Australia: $72.60 annually Overseas: $110 annually

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MOTOR TRADER PUBLISHING POLICY Motor Trader is the official publication of the Motor Trades Association of Queensland.

The role of Motor Trader is to inform members of current issues and legislation affecting the industry. As such it can be regarded as the business magazine for the Queensland motor industry. The role of Motor Trader is not to be in competition with the technical magazines already on the market. It will advise of new vehicles being released and of the latest technology incorporated into them; it will advise of latest technology affecting members in each of the MTA Queensland Divisions; it will keep members abreast of the latest in motor industry training and industrial affairs; and it will keep members informed of the latest technical aids available through MTA Queensland Member Services, which will assist members in staying ahead of the technological revolution presently being encountered within the motor industry.

The publisher reserves the right to omit or alter any advertisement and the advertiser agrees to indemnify the publisher for all damages or liabilities arising from the published material.

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MTA QUEENSLAND ABN: 74 028 933 848

02 From the editor

CORPORATE PARTNERS

10 30 30

04 From the desk of the CEO 05 Policy/Viewpoint

20160423

08 MTA Q&A

PATRICK AND EMMA POWTER FROM POWER CURVE PERFORMANCE

MEMBERS ESSENTIALS

19 Training GM's Professional Circle perspective 20 Professional Circle training 27 Member profiles 28 Industrial relations

Feature 10 A DAY AT THE RACES: MTAQ AT THE CASTROL GOLD COAST 600

30 Concept Corner RENAULT TREZOR

16 Members Classic TORANA THUNDER: 1972 HOLDEN LJ TORANA

33 Industry insight

TRIMMING COSTS CAN SOMETIMES ADD BETTER PROFIT THAN SELLING MORE! November 2016 Motor Trader | 1

From the editor

H

JONATHAN NASH EDITOR

2 | Motor Trader November 2016

ELLO AND WELCOME to the November 2016 edition of Motor Trader.

November is a big month for MTA Queensland. The annual President's Ball takes place on the 19th at the Hilton Brisbane and every year it seems to get bigger and better.

This year we will have two rather special guests involved in the event award-winning actor Shane Jacobson (he of Top Gear Australia fame) will be our MC, and Roland Dane, the boss at Triple Eight Race Engineering, will be our guest speaker. It will be a very entertaining evening.

Entertainment aside, the aim of the Ball is to both get together with friends in the auto industry and celebrate another successful year, and to acknowledge the contributions of MTA Queensland members and MTA Institute apprentices through the presentation of the Community Award, the Innovation Award and the Apprentice of the Year Award.

While we are on the subject of the Apprentice of the Year Award, five of the eight nominated apprentices were able to join the MTAQ at the Gold Coast C600 V8 Supercar event at the end of October. On the friday before the weekend's big races, the nominees got together and joined MTA Institute Operations Manager Marcello Riotto for a tour of the Team Vortex pit garage and to meet and chat with motorsport legend Craig Lowndes.

It was a great day.

Also at the GC600 was MTA Institute apprentice Tim Welsh. Tim, who works for Kmart Southport, was given the opportunity of a lifetime to work for the entire event with the elite Team Vortex pit crew and he clearly had a fantastic time. You can find out more about Tim and the nominees' time at the GC600 from page 10.

In our MTA Q&A feature this month we talk to Patrick and Emma Powter from Power Curve Performance in Nambour. In just 18 months, the young couple have turned their business from a brand new start-up to a thriving concern providing tuning and performance services to a growing number of customers from

across the south-east region. You can read more on pages 8 and 9.

In our Member's Classic feature we return to Brisbane Cylinder Head Service and catch up with co-owner Adrian Smith to talk about his monster drag racing Torana. The supercharged 685hp beast looks brilliant and can run the quartermile in less than nine seconds. But Adrian has big plans for the car and early next year, thanks to a couple of turbochargers, a seven-second run should be on the cards! Find out more on pages 16 and 17.

In Professional Circle training news this month, we visit Mt Isa where the last, for now, Auto Initiation training program has been held. The program, delivered under the Queensland Government’s Skilling Queenslanders for Work initiative, gave participants the opportunity to earn a Certificate II in Automotive Vocational Placement and it has been delivered to more than 260 students across the state. You can read more about the Mt Isa program on pages 20-21.

Also in this edition, we report on the delivery of training to two groups of South Korean students - a sign of the MTA Queensland's growing relationship with regional governments and educational institutions in South Korea; we take a look at a remarkable concept car from Renault called the Trezor; and we have a Christmas Gift Guide that should give a few ideas to those of you still struggling with just what to get your nearest and dearest.

As always, we will endeavour to bring you news and insight into the industry, information on the latest training opportunities, and highlight members’ interests. If you have a story worth telling, want to appear in Member Profiles, or have a classic car, bike or truck you would like to see featured, then please contact me.

Cheers, Jonathan Nash jonathann@mtaq.com.au

A special business offer for MTA Queensland members.

To help keep your business moving, Commonwealth Bank has a special offer for MTA Queensland members. Just open a new Commonwealth Bank Business Transaction Account by 31/12/2016 and link it to your existing or new Commonwealth Bank merchant facility.

To take advantage of this offer, just contact MTA Queensland on 07 3237 8777.

Important Information: Offer available to referrals made via MTA Queensland between 01/06/2016 to 31/12/2016. *This offer is applicable to existing and eligible new merchant facilities, excluding the Albert EFTPOS device. To maintain the fee waiver, you must retain the required products contained in this offer (including settling your merchant facility to your linked Commonwealth Bank Business transaction account). Otherwise the offer may be withdrawn. #To maintain the fee waiver, you must retain the required products, otherwise the offer may be withdrawn. Offer includes the monthly account maintenance fee of currently $10 on the Business Transaction Account linked to the merchant facility. Please refer to terms and conditions. ^Establishment fee waiver and two free tokens are available to new CommBiz customers only. This offer may be extended beyond the specified end date at the discretion of the Commonwealth Bank. Interest rates and fees are subject to change. Full conditions of use will be included in our Letter of Offer. Applications for finance subject to the Bank’s normal lending criteria. MTA Queensland may receive a fee from the Commonwealth Bank of Australia for each successful referral. Referral Fees are not payable on referrals from existing relationship managed Commonwealth Bank customers. This has been prepared without considering your objectives, financial situation or needs, so you should consider its appropriateness to your circumstances before you act on it. Terms and conditions are available from commbank.com.au Commonwealth Bank of Australia ABN 48 123 123 124. Australian credit licence 234945.

From the desk of the CEO

BRETT DALE CHIEF EXECUTIVE OFFICER MTA QUEENSLAND

I

N THE MIDST of finalising the corporate governance documents for the MTA Queensland Board meeting, I’ve been preoccupied with industry matters and advancing the standing of the Association with stakeholders. I’m encouraged with progress so far. There is growing interest from stakeholders in our activities, membership is increasing and the commercial arm of the Association has improved compared with the same period last year.

Recently, I’ve had several important meetings, each having outcomes to the advantage of the automotive value chain. Amongst these was a positive meeting at our corporate office with the Queensland Minister for Small Business, the Hon Leeanne Enoch, who also has responsibility for the Innovation, Science and the Digital Economy portfolio. Whilst the meeting centred on support to small business and the Small Business Queensland Strategy 2016-20, it was innovation and future opportunities for industry that generated much discussion. This focused on the evolving technologies for new business models, workforce structures and service delivery. On this, the Minister offered to work with us and to advance this, at her behest, her Director General will meet with us.

There are two competitive grant programs relevant to digital technologies to which the Minister drew attention and which would be of interest to our membership. The first is the Small Business Digital

4 | Motor Trader November 2016

Grants Program to assist eligible small businesses with access to, and utilisation of, digital technologies and services to be competitive. Matched funding of up to $10,000 (excluding GST) is on offer for the purchase of hardware, software and services – such as digital coaching. The business must show that the digital technology or service purchased and adopted will enhance the digital capabilities of their business and help them to be more competitive and employ more staff. Applications opened on November 9. For the guidelines and the application form the website is https:// publications.qld.gov.au/dataset/ accelerate-small-business-grants.

The second program is the Accelerate Small Business Program with matching funding of up to $10,000 (excluding GST) that may be provided to eligible businesses to engage business mentors, coaches, or an advisory board for 6 to 12 months.

Applications for this program opened on October 25. For the guidelines and the application form the website is https://www.business.qld.gov.au/ business/support-tools-grants/grants/ accelerate-grants.

An important issue for small business is succession planning - an issue that should be viewed as a valuable investment. I refer members to the Australian Small Business Family Enterprise Ombudsman website for a succession plan template and guide: http://asbfeo.gov.au/family-enterprise/ succession-planning.

I attended a stakeholders meeting with officers from the Federal Chamber of Automotive Industries, the Australian Automotive Dealer Association, the Motor Trades Association of Australia (MTAA) and the state bodies. The key agenda issue was access to repair and service information by third parties. It was agreed to formalise the next stage of the agreement.

Many members would know of MTAA House at Barton in Canberra and its ownership by aligned stakeholders. All unit holders with an investment in this valuable property have agreed to sell it.

As General Manager Kellie Dewar

says in Viewpoint, I attended with her the Land Transport Regulation 2040 Plan workshop. This was against a background of much discussion on Cooperative Intelligent Transport Systems to prepare for automated driving, the necessary regulatory requirements and the changes it will bring to everyday lives.

INDUSTRY There is much change (and some nostalgia) across the automotive industry. On Friday, October 7, the last locally made Ford Falcon and Holden Cruz rolled off the production lines.

For Ford, this ended 91 years of its Australian manufacturing business incurring change for its aligned businesses and workforce. Holden will keep manufacturing its Commodore at Elizabeth until 2017. The last Cruz brings an end to 50 years of local production of a four-cylinder car.

I’ve been monitoring the Federal Government’s ‘enterprise policy’ currently before the Senate since its announcement in the May 2016 Federal Budget. If passed it will benefit members with key measures that include: • an immediate reduction in the corporate tax rate to 27.5 per cent for the 2016–17 tax year for small businesses—that is, corporate tax entities with an aggregated turnover of less than $10 million; • an increase in the aggregated turnover threshold for access to small business tax concessions from $2 million to $10 million; and • a progressive increase in the tax discount for unincorporated small businesses that is equivalent to the above reductions in the corporate tax rate.

ECONOMY Several recent reports indicate the Queensland economy is improving and will do so over the longer term.

The Deloitte Access Economics (DAE) Business Outlook for the September quarter forecast growth of 3.7 per cent for 2016-17 and 3.9 per cent for 2017-18. Significantly, it predicted that the state’s economic growth to

be the strongest in the nation from 2016-17 through to the end of the DAE forecaster period in 2025-26.

ComSec’s October 2016 State of the State’s economic performance indicates Queensland’s economy has been ‘tough’, standing at sixth place in the rankings. The outlook, however, is positive with growth in home building, tourism and rural exports.

In the near term, the Suncorp Group CCIQ Pulse Survey of business conditions ‘highlights the challenging conditions confronting businesses across Queensland, with weak sales growth, coupled with rising operational costs impacting profitability, and in turn employment levels and business investment. More positively, over the medium to longer terms the forecast is that conditions for the state’s businesses will strengthen with customer spending expected to improve, especially with the south-east corner'.

The recent labour force data indicates the continued erosion in fulltime employment and the growth in new casual part-time jobs. Queensland is not immune from this pattern, reflecting the transition from the strong resources construction boom to a more diversified labour-intensive services

sector. On a trend basis, Queensland’s unemployment rate has fallen by -0.1 per cent to 6.1 per cent.

The Reserve Bank Board, at its October 4 meeting, left the cash rate unchanged at 1.50 per cent.

At its November meeting, the Board will factor into its decision making analysis of the data from the September quarter Consumer Price inflation (released October 26). This will provide the context in which to consider the economic outlook and assess the effects of previous reductions in the cash rate and determine any change.

The visit to Toowoomba did not eventuate. This is particularly disappointing as it had the potential to be of great benefit to members in this region with the addition of some of our corporate partners in attendance.

The Sunshine Coast meeting was cancelled due to a clash with other local commitments. It will now occur in February 2017.

NEW MOTOR VEHICLE SALES

AND THE LAST THING

New motor vehicle sales for Queensland for September were stable with 19,444 new units on a trend basis. In effect, there was minimal change on the previous two months.

Compared with September 2015 there was a downturn of -329 or -1.7 cent.

Nationally, in September (trend) there were 99,294 new motor vehicle sales - an increase of +0.4 per cent over the previous month and a rise of +.2.1 per cent for the same 2015 month.

Passenger vehicles were the dominant segment with 40,137 sales, but a decrease of -0.4 cent on the

My focus for the coming month is to progress membership growth, develop the Association’s commercial interests and pursue discussions with the Department of Innovation, Science and Digital Economy, including the application of Advance Queensland’s and the Small Business Queensland Strategy programs to the MTA Queensland membership.

Until next time, as Henry Ford, the industrialist and the founder of the Ford motor company said ‘execute ideas with enthusiasm . . . as it is the bottom of all progress.’

previous month. Sports utility vehicles continued to be in demand with sales increasing by +1.6 per cent to 38,228.

ROAD SHOWS

Policy/Viewpoint

KELLIE DEWAR GENERAL MANAGER MTA QUEENSLAND

O

NE OF THE simple pleasures of life is to thumb through a magazine to glance at pictures, read a snippet or two or peruse an article.

However, in recent years, the

printed page has given way more and more to the web page, and the sheer scale of the information available on the internet, and the speed and ease with which it can be accessed, has seen many a printed publication move its content online.

The MTA Queensland is not immune to this change and, consquently, the latest edition of the Australian Tyre Dealer magazine will be the last to roll off the press.

However, although the October/ November 2016 edition of the magazine will be the last you can hold in your hand, we will continue to produce the content the magazine contained. The difference will be that news relevant to the tyre industry - including information regarding new product releases, global trends, government regulations and business

initiatives - will become part of the rich variety of content available online at www.mtaq.com.au.

And on that note, if you have any information or news that you would like to share with the tyre industry, the wider automotive industry and the public, then please do contact us at publications@mtaq.com.au. We look forward to hearing from you.

Technological and digital change is all encompassing - including across the automotive value chain. As said in previous Viewpoints, we have been contributors to the National Land Transport Commission Issues Paper on the future regulatory environment for the automated motor vehicle and the transport system. As a follow-up to our submission, CEO Dr Brett Dale and I recently attended the Land Transport Regulation 2040 Plan November 2016 Motor Trader | 5

Policy/Viewpoint ‘scenario planning’ workshop at which we discussed two previously circulated foundation papers. These papers and the discussion centred on ‘the future’, the technological consumer demand and the probable reshaping of the transport system.

To give you a flavour of the discussions, the papers circulated were aptly entitled ‘Land Transport 2040 technology trends and other factors of change’ and ‘Scenarios for Land Transport - 2040’. The latter presented qualitative scenarios to engender thought and discussion on the trends, influences and changes in society that will impact the nation’s transport system into the future.

I’m a practical person that deals with day-to-day issues as well as changes for the near term. The leap into the future gave much food for thought, particularly on the need for our MTA Queensland membership to be part of the conversation and prepare for the future. A priority for me in the coming year will be to work with our industry divisions and to start the conversation on what their business model and workforce service delivery may look like into the future.

The concept of autonomous vehicles is now prominent in our industry and in that context there must be general discussion on the impact of manufacturing on demand, 3D printing capabilities of parts and what the Government’s regulatory role is.

For me, it is important that members are not left behind. I will give a copy of the discussion papers to each of our Industry Chairs so that they can begin the conversation about their sector and the ‘future’.

To some this maybe ‘airy fairy stuff ’ but I assure you, just as we had to adapt to changing digital and technological circumstances relating to the publication of the Australian Tyre Dealer, businesses and society as a whole will have to adjust too. I encourage members to be proactive and engage in the discussions through the communications mediums we have available, including Skype and Dial-in. These are not confined to our decentralised members but are available to all - even to those 6 | Motor Trader November 2016

one suburb away from the MTA Queensland headquarters.

ADVOCACY Currently I’m doing the preparatory research for three submissions with relevance to the membership. These are the Queensland Government’s Retail Trading Hours Review, the New Car Retailing Industry - a market study by the Australian Consumer and Competition Commission (ACCC), and the Consumer Affairs Australia and New Zealand’s (CAANZ) Australian Consumer Law (ACL) Review Interim Report. Each has issues important to the wider automotive value chain but in particular to the Australian Automotive Dealer Association - Queensland (AADA (Qld)) membership. The views of members would be appreciated and each of these Issue Papers is on the website for members to download and consider.

I draw attention to the New Car Retailing Industry market study and the ACL Review Interim Report which focus on issues affecting Australian consumers purchasing new motor vehicles and whitegoods. In both of these, matters to be addressed include the clarity of consumer guarantees provisions with regard to ‘acceptable quality”. Within this framework there are calls for the introduction of a ‘lemon’ law for motor vehicles. It is of interest to note that commonly raised comments from individual consumers about consumer guarantees related to calls for ‘lemon laws’ for motor vehicles.

The response to the Market Study is due on November 14 while the Interim Report is not due until December 9 which gives time for it to be considered by the AADA (Qld) membership.

Earlier in the month, some members were inquiring about possible changes to the tobacco licensing laws. As a consequence of the Tobacco and Other Smoking Products (Smoke-free Places) Amendment Bill 2015, assented to in March 2016, there are reduced areas where smokers can light up and the sale of tobacco products from pop-up retail outlets, such as at music festivals, is banned. The new laws came into effect on September 1, 2016.

Separate to that legislation, a

Parliamentary Health, Communities, Disability Services and Domestic Violence Prevention Committee, commencing in October 2015, inquired into the ‘Tobacco licensing arrangements in Queensland’. It reported in April 2016 making one recommendation - that ‘the Minister for Health and Ambulance Services consider implementing a positive wholesale and retail tobacco licensing scheme in Queensland, while giving weight to appropriate licensing fees and avoiding unnecessary regulatory red tape for business.’ From inquiries made, I’m not aware of any imminent developments but I will keep this matter monitored.

I’ve not mentioned our Dob in a backyard dealer webpage for a while.

It was set up in March 2014 following many discussions with the Office of Fair Trading (OFT) to put a focus on the unscrupulous activities of unlicensed back yard dealers. The OFT, as a matter of routine, monitors the secondhand motor industry for regulatory compliance. Over the past year, the OFT has had success with compliance checks, including one southeast Queensland region having a total of 32 illegal car dealers. In the last month, in the Southport Magistrates Court, a backyard dealer was imprisoned and order to pay over $37,000 in fines and costs after being charged by the OFT for the second time. The fines included for making false and misleading representations under the Australian Consumer Law.

FINALLY In the Motor Trader October edition, the outstanding eight nominees for the MTA Queensland of the Year were profiled. The Editor said that it was ‘a fiendishly difficult task’ to determine the short list, which says much of the high calibre of the MTA Institute apprentices. To each of the nominees congratulations and I trust you enjoyed the double pass to the Gold Coast 600 V8 Supercars and a tour of the Triple Eight Engineering garage! I look forward to seeing you all the at the President’s Ball.

Until next time, when there will be more about the Ball and the Awards, take care and stay safe.

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MTA

QA &

What products and services does Power Curve Performance provide?

Patrick and Emma Powter

EP: We are a one-stop performance shop.

If it is performance-oriented, we do it.

We work on a lot of 4WD modifications, turbo upgrades, ECU tuning for newer vehicles and so on.

We also work on a lot of race vehicles.

Our aim is to make vehicles run properly. For instance, if we work on an open-wheeler then that might be to achieve optimum power and performance for a race. For others, it might be about performing and driving well for the highway – where performance means drivability and not optimum horsepower.

PCP: We work on anything and everything, including vehicles that no one else seems to want to do. Some businesses, for example, might not work on a Range Rover or an MX5 because they’re just not interested in them. However, we know these cars are their owner’s pride and joy and they want them to run right. That’s what we do, we make them run right.

EP: We also work with other businesses in research and development.

For instance, Legendex have just started to introduce a new product line and tested their intercooler with us. We network with, and try and support, a lot of other businesses.

Who are your customers?

PCP: Our customers tend to be people who have got a bit of experience, plenty of passion, have a budget and have researched what they want. They might have a brand new car that they want tuned or, and we do a number of these, a classic vehicle they’ve restored and want to run at its best. We also work on a number of special vehicles such as Speedway cars, Sprint cars and open-wheelers, helping their owners

Patrick and Emma Powter are the owners of Nambour-based Power Curve Performance. In just 18 months, the young couple have turned the business from a brand new start-up to a thriving concern providing tuning and performance services to a growing number of customers from across the south-east region. get the best for the track or the hillclimb events in which they compete.

What we do is a specialised trade and really services customers who have lived a bit, worked hard and now want something to enjoy. They are the people that most often come to see us.

EP: We attend a number of ‘dyno day’ events through the year where we take our dyno along and let people test their vehicles. They are a lot of fun. People get three runs, they get a dyno-sheet of their results and it’s a big crowd-pleaser. And it’s great advertising for us.

PCP: We do see some special vehicles at those events. We ran 1499hp out of a Dodge at one event – a 500ci, alloy block, single turbo, single carbie, running on methanol. We’ve run maybe four cars over the 1200hp mark but that Dodge was the scariest.

It revved to 8300 and I had to stop at 7600 because the back of the dyno lifted up – it was pretty cool!

What is your background in the industry and when did you establish the business?

PCP: I started my auto-electrical apprenticeship in 2002 at a business that offered dyno-tuning and performance services. I was working with aftermarket computers, turbo intercoolers, blowers, engine builds and gearboxes and so on.

From there, I started my own business as an auto electrician before going to work at the mines. I worked there for seven years with Hastings Deering and became a diesel fitter during that time too. We used the money we earned at the mines to buy the equipment to fit-out the shop, but for a few years we ran a business from home with the dyno in the back shed.

We established the business here 18 months ago.

It has been a difficult road to get where we are today. We originally came to the Sunshine Coast to buy a business similar to this one but an unfortunate course of events meant we were unable to do that. So we started from scratch, having moved into an area where we knew no one and, in a very short time, I think we have done quite well.

EP: I used to work in childcare but have helped Patrick run the business since we were at the mines. Now, I am the manager of the business, run the front-of-house, and am responsible for advertising and marketing.

We’ve done a lot of testing with our marketing and use social media quite heavily. We get a lot of positive feedback about our website and we regularly post to YouTube, Instagram and Facebook and network with other businesses to discuss what works. We have about 3000 friends on Facebook so it works and does bring in business.

PCP: A lot of our business comes from word-of-mouth advertising too. And events like the Dyno days are great because people actually get to meet us, get to see the dyno, get to see how we operate. That is invaluable and the feedback has been great.

What was it about the performance sector of the automotive industry that attracted you?

PCP: It’s really interesting and a lot of fun! I enjoy the research and development side of the work - the design, development and building of elements that make vehicles work at their peak performance.

To what do you attribute your success?

PCP: That’s difficult - it is hard to know at what point you can say you’ve ‘made it’.

I don’t know that it’s so much about being financially successful as it is at about being happy with what you are doing.

And we are happy with how things are going and that is down to a combination of Emma and I working really hard, putting everything we have into it and, of course, knowing what we are doing! Our customers don’t come here because we cause problems - they come here to get great service!

How many staff do you have?

EP: We have two members of staff Beau, our mechanic, and Aodhan, our new apprentice. Like Patrick and I, they are both really passionate about what we do here and that is important.

The demand here has grown very quickly and it’s an exciting place to work so it is good to have a dedicated team.

What does the future hold for Power Curve Performance?

PCP: I would like to do more research and development and establish our own line of performance products – perhaps upgrade style kits for the mid-range priced product and the 4WD scene.

We have a couple of young guys working here now. Aodhan, our apprentice, is very keen and motivated and I want to help them to get to a point where I can move on to these other things myself.

What do you do with your spare time?

EP: At the moment we don’t get too much spare time. Since the guys started with us they sometimes come in at the weekend with their own cars and Patrick gives them a hand, teaching them how to TIG and things like that. We like camping – the kids love that. And we enjoy doing a lot of the recreational stuff that goes along with being in the car business – we like the car events, 4WD, we like camping, we have a ski boat. We do like to have a bit of down time when we can.

November 2016 Motor Trader | 9

GC600: A day at the races

10 | Motor Trader November 2016

T

HE GOLD COAST. Incredible beaches, a majestic skyline, a thriving nightlife and a tourism hotspot.

The city is widely known as Australia’s playground and once a year the streets of the Gold Coast and its most famous suburb, Surfers Paradise, are turned into a petrolhead’s heaven as the grand circus that is the V8 Supercars rumbles into town.

The Gold Coast 600 is the 13th event of the V8 Supercar calendar and one that seems to take over the whole city with approximately 200,000 fans flooding into the race venue. While they were there to witness battle renewed between championship leader Shane van Gisbergen, six-time champ Jamie Whincup and three-time champ Craig Lowndes, there was plenty more on-track action to keep them entertained.

The Porsche Carerra Cup, the V8 Utes and the outrageous Stadium Super Trucks all held competition rounds on the Gold Coast. Formula 4 – the single seater open-wheel

development category for young drivers on the fast-track to the top of motor sport – also held a round of their competition. The Formula 4 event was of particular interest to MTA Queensland as Will Brown, the son of Shane and Leanne Brown of member business Cars Galore in Toowoomba, was crowned the series champion at the Gold Coast round.

For MTA Queensland, the Friday of the event was a special day as five of the nominees for the Association’s Apprentice of the Year award - Theresa Kerr, Trent Harper, Reyd Nicholson, Caleb Ferguson and Dane Turnbull (unfortunately Jacob Gonzalez, Jamahl Byrne and Zane Lord-Miller were unable to attend) - were able to travel down and experience a tour of the Triple Eight Race Engineering Team Vortex pit garage and meet and chat with the team’s star driver, Craig Lowndes.

Organised by team sponsor and MTA Queensland corporate partner MTAA Super, it was a fantastic experience for the five nominees and meeting Lowndes – a trained

“. . . FIVE OF THE NOMINEES FOR THE

ASSOCIATION’S APPRENTICE OF THE YEAR AWARD . . . WERE ABLE TO TRAVEL DOWN AND EXPERIENCE A TOUR OF THE TRIPLE EIGHT RACE ENGINEERING TEAM VORTEX PIT GARAGE AND MEET AND CHAT WITH THE TEAM’S STAR DRIVER, CRAIG LOWNDES.”

(l-r) Dane Turnbull, Trent Harper, Craig Lowndes, Theresa Kerr, Reyd Nicholson, and Caleb Ferguson

November 2016 Motor Trader | 11

GC600: A day at the races mechanic himself – was a highlight.

A legend of the sport, Lowndes career has been nothing short of spectacular.

Now aged 42, the three-time champion and six-time Bathurst winner made his debut in 1994 and has contested 603 races, won 105, finished in the top ten 447 times, taken pole position on 41 occasions and been on the podium 158 times. ‘Spectacular’ barely does him justice.

A fan favourite with massive demands on his time, Lowndes spent some 20 minutes with the group chatting about his career, his time as an apprentice mechanic and about the set-up of his team and the technical and mechanical demands of race weekend. The nominees seemed well satisfied with the time they got with him.

“It was great to meet him,” said Caleb. “He’s really down-

“ALONG WITH MEETING LOWNDES,

THE NOMINEES WERE ALSO GIVEN THE CHANCE TO TAKE AN UP-CLOSE LOOK AT LOWNDES’ TEAM VORTEX CAR AND FIND OUT MORE ABOUT HOW THE TEAM AND THE CREW WORKED.”

12 | Motor Trader November 2016

to-earth and a nice guy . . . busy though!”

Along with meeting Lowndes, the nominees were also given the chance to take an up-close look at Lowndes’ Team Vortex car and find out more about how the team and the crew worked.

The whole afternoon was an experience that motivated everybody.

“It was unreal,” said Theresa. “I haven’t done anything quite like that before. I did meet him once before but this was a little bit extra special, especially getting to see his race car up close. He is a fantastic guy and you can’t really ask for much more when you get to go into the pits and do this sort of stuff.

“And as for the car –

I don’t have any words for that.

Perhaps all I can say is that engine - $100,000 well spent!”

It’s likely that anyone with an interest in the mechanical side of the automotive industry would view working for a team in the V8 Supercars as the pinnacle of their trade, and the nominees were no different.

“I would love to work there,” said Trent. “To work on those cars would be a dream job.”

“It looks and feels like a great team environment,” added Caleb. “And everything looks so clean too!”

“It would be fantastic,” said Dane. “The tools, the technology – it would be something special.”

Following the Team Vortex tour, the nominees were free to enjoy the rest of the entertainment the GC600 had to offer and take advantage of the three-day passes they had been awarded as part of their Apprentice of the Year nomination prize. No doubt the GC600 put on a party they could all enjoy.

“. . . AS FOR THE CAR – I DON’T HAVE ANY WORDS FOR THAT. PERHAPS ALL I CAN SAY IS THAT ENGINE - $100,000 WELL SPENT!”

As for their future, we look forward to seeing them on November 19 at the President’s Ball where the new MTAQ Apprentice of the Year will be revealed.

To be nominated already marks them out as amongst the best young apprentices and tradespeople in Queensland, and if the Supercar teams are looking for the best, then we may well see one or two of them working furiously in pit lane in years to come.

WILL BROWN TAKES OUT FORMULA 4 TITLE

Will Brown

QUEENSLANDER WILL BROWN has become the Formula 4 champion after clinching the title in the final round at the GC600.

The Team BRM/Cars Galore driver dominated the first race of the three-race round after taking pole position, and then took fourth in the second race to claim enough points for the championship with one race remaining.

“To become the CAMS Jayco Australian Formula 4 Champion is great,” said Will after securing the title. “We were hoping it didn’t go down to the last race and we could wrap it up today.”

It has been a brilliant year for the 18-year-old. Back in July 2015, Brown won the first ever Formula 4 race in Australia – a result that marked the former kart racer as a future

motorsport superstar. 16 months on and that prediction is looking ever more solid and the son of Shane and Leanne Brown from MTA Queensland member business Cars Galore in Toowoomba could yet win more championships this year – he is still involved in the Formula Ford series and also leads the Toyota 86 Racing Series heading into the final round in Sydney in December.

November 2016 Motor Trader | 13

GC600: A day at the races

TIM IN THE MIX WITH TEAM VORTEX AT GC600

Tim Welsh

T

IM WELSH, A 20-year-old MTA Institute third-year light vehicle apprentice working for Kmart Southport, scored the weekend of a lifetime last month when he was chosen to work with Triple Eight Race Engineering’s Team Vortex at the GC600 V8 Supercars event.

Working alongside the elite pit crew that keeps Craig Lowndes Holden on the track was, said Tim, a fantastic experience.

“It was awesome – a brilliant opportunity and a great experience,” he said. “To be able to work on Craig Lowndes’ car with the Team Vortex crew made for a really rewarding weekend.”

This fantastic opportunity was organised by team sponsor and MTA Queensland corporate partner MTAA Super and in the lead up to the Gold Coast event the Triple Eight team were on the lookout for an apprentice with loads of enthusiasm and a willingness to get stuck in. They couldn’t have found a more passionate apprentice than Tim. “I’ve always been interested in cars,” he said. “I was pushing toast around my high-chair making car noises when I was a kid! From day one I have been a car nut.”

And not just a car nut, but a motorsport fan too. In fact, Tim has already spent a fair bit of time

14 | Motor Trader November 2016

working in motorsport.

“I’ve been part of a pit crew for a drag-car team and I’ve also been a navigator in off-road buggy racing,” he said. “Me and a friend from school ran a buggy for a couple of years in state-level competitions. It was basically a rollcage with some fibreglass panels on it, was powered by a 1.6-litre engine, and we built it and maintained it ourselves.

“We once sheared a wheel off at 120km/h when we were 52km out in the bush. We were OK though - we used a bit of bush mechanics and strapped it back together.”

Being able to think quickly and make repairs on the run is a great trait for any mechanic and especially so in the high-pressure environment of motor racing where every second counts.

However, ‘bush mechanics’ is, of course, a world away from the V8 Supercars where the best engineers, best mechanics and best tools and equipment can all be found within the short distance of pit lane. For Tim, it was a massive learning experience.

“It’s quite an awesome place to work,” he said. “There’s an endless supply of tools for instance, and working with such a high-level team means you can’t help but learn.

“And there is a lot that goes on! We were setting up the car for every race,

and after every race we would drain the fuel tank, do wheel and chassis alignment, change shock settings . . . there’s so much going on.

“I was basically helping out wherever I could. Obviously, a team like that is highly organised and everyone has their own position so on the Friday it was more about observing things - seeing what rhythm the team had and what they all did. On Saturday I was helping to move tyres – bringing up fresh sets and so on – and draining and refueling the car, and then on Saturday night we had to overhaul the whole car. I helped one of the mechanics work the front brakes as he replaced the pads and rotors and then helped to replace some of the bodywork too.

“And, of course, I was responsible for cleaning the car before every session. As an apprentice you get good at cleaning!”

As well as getting to know the pit crew, Tim also got to meet and chat with the Triple Eight drivers.

“Yeah, we had brekkie with Craig Lowndes. Actually with him, Jamie Whincup and Shane van Gisbergen - basically all the Red Bull team too.

They’re all great, really awesome guys and I did get to sit down with Craig and chat with him – he is a really nice guy.”

With his few days in the big time still a fresh memory, Tim’s desire to be involved in elite motorsport has never been stronger.

“I’ve always wanted to do it and now I’ve had a taste it has definitely stoked that fire in me even more,” he said. “I did manage to speak to Tom Wilson, the Head of Commercial Operations at Triple Eight, and said I would love to be involved again. He was great and said he would get in contact before the local rounds next year and get me in to help out.

“I’ll definitely be taking up that offer! The motor racing side of the industry is definitely for me.”

GOVT GRANTS TO OFFER UP TO $10,000 TO HELP SMALL BUSINESS T HE QUEENSLAND GOVERNMENT has launched a new grants program designed to assist small business.

The Accelerate Small Business program was unveiled at the end of October and Small Business Minister Leeanne Enoch said the program would provide targeted assistance for small businesses to engage high-level experts to boost business growth.

“By accelerating growth, this program will enable small businesses to grow and employ – meaning more jobs for Queenslanders,” she said. “The Accelerate Small Business grants offer up to $10,000 per business, which must be matched by the participant, to access either one-on-one mentoring or put in place an advisory board.

“Through our successful Mentoring for Growth program we have seen evidence of how enabling small business to add these elements to their business toolkit has helped them grow their business and employ.

“Businesses mentored in 2014-15, reported that in 2015-16 they had

The Qld Government Accelerate Small Business program will provide grants to small businesses allowing them access to assistance including one-on-one mentoring

increased employment by 12 per cent, turnover by 7 per cent and gross profits by 18 per cent.”

“Accelerate is aimed at businesses that have reached a certain level of maturity and are ready to take the next step,” she added.

“The program calls on business owners to make a commitment to the success of the next stage of their development, including potentially moving to a medium-sized company.”

Minister Enoch said the Government was committed to creating the right environment where small business can start, grow and employ.

MTAQ SWINGS INTO ACTION AT ANNUAL MOTOR TRADE GOLF DAY EVERY YEAR, MEMBERS of the motor trade industry get together for a friendly competition on the golf course – the Motor Trade Golf Day. Now in its 67th year, the event has proven to be immensely popular and this year more than 50 members of the motor trades community took part.

MTA Queensland, a long-standing supporter of the event, sent a four-man team along to participate this year with Business Development Managers

Anthony Bonaccorso (right) with competition winner Steve Helms

Anthony Bonaccorso and Andrew Bear, and Divisional Executives Ian Cole and Colin Fitzpatrick hacking their way around the course trying mightily to post a decent score. Although they started off rather shakily, a respectable finish to their rounds saw Ian and Colin pick up places in the stroke-play competition, with the pair placing

“With programs like Accelerate Small Business, our government is helping Queensland small businesses be in a stronger position to respond to competition, embrace new opportunities and grow into globally competitive businesses.”

Further information about the Accelerate Small Business is available at www.business.qld.gov. au/accelerate Also to become available this year is the Small Business Digital Grant that will provide small businesses access to digital technologies and services. The program will provide grants up to $10,000, to be matched by participants, and funding received through the program can be spent on the purchase of hardware, software and services such as digital coaching that would include assistance with digital marketing, social media, and digital platforms such as web pages and mobile apps, developing online payment systems and online shops.

Applications for the Digital Grants program open on November 2, 2016.

9th and 11th respectively.

The day finished up with the presentation of various trophies and prizes, sponsors of which included the MTA Queensland, Auto Leaders, Metro Ford, Infinity Wheels amongst many others.

Anthony Bonaccorso was on hand to present the main prize to Steve Helms, winner of the Stableford competition.

“It was a great day and it is a tremendous event to be involved in,” said Mr Bonaccorso. “We may not be challenging for PGA titles anytime soon, but it’s not just about the golf.

Not only is it great fun but it’s a terrific social occasion and gives everyone the chance to meet and network with colleagues and friends in the industry.

We’re all looking forward to next year!”

November 2016 Motor Trader | 15

MAKE: HOLDEN MODEL: 1972 LJ TORANA ENGINE: SMALL BLOCK CHEV V8 OWNER: ADRIAN SMITH OWNED SINCE: 2008

TORANA THUNDER I

MAGINE SITTING AT the end of a race track. You’re wearing a helmet and a fire retardant suit and you’re sat nervously in your racing seat, heavy-duty straps hugging you tightly around the waist and shoulders. The thick tubular shell of a roll cage surrounds you and in front, just on the other side of the windshield, is the shuddering shape of a supercharger. Further out still, the Christmas tree lights at the start of the track tick through their sequence and you slam your foot on the accelerator. Accompanied by the smell of burning rubber in your nostrils and the roar of the V8 in your ears, you scream off down the track.

For Adrian Smith, co-owner of Brisbane Cylinder Head Service, that scenario is one he has lived many times at the wheel of this stonkingly-powerful, 685hp 1972 LJ Torana.

But how did this venerable old classic become a firebreathing monster? Well, it’s a car Adrian always wanted to own and always wanted to work on and race, but he had to wait quite a while to track one down.

“I grew up loving the shape but it took a while to find one,” he says. “But when our business was located in Brisbane, there was a mechanic who worked next door whose best mate owned the car. I got to talking to him and, after a while, he agreed to sell it.

“The mechanic actually wanted the engine out of it and I was fine with that. I didn’t need it. So basically, what I bought was the rolling shell of an original LJ Torana.”

Of course, a 44-year-old car is never going to be in perfect condition, and so it proved with the Torana. Riddled with

16 | Motor Trader November 2016

rust, the car was sent off to a panel shop for a fourmonth makeover and, on its return, received a new paint job, new wheels and a new engine set-up that Adrian built from scratch.

“I built and installed a 355ci VN-headed Holden engine which I built from nothing,” he says. “I bought a block, a stroker kit, some heads and a manifold, pieced it all together, found a gearbox and away we went.”

That was a few years ago, and the car is a good deal different now than it was at that point. In the search for more power, Michael ended up doing a deal with a friend who was helping him with the car.

“A good mate of mine, Michael from M&A Mechanical, helped me with rewiring the car. He had a drag car too and was updating his car and replacing his supercharged set-up. So I bought that and installed it in my car. I bought the supercharger, some heads, crank and rod from him and pieced those together with the small block Chev I bought and that’s what you see at the moment.

“Since that change, it produces 685hp and I’ve been able to do 8.8 second times in it.”

At this point, the Torana was powerful enough on the track, and looked so good off it, that it eventually caught the eye of noted motorsport photographer Daniel Ward.

An article and photo spread in Xtreme Holden magazine

followed and the car was picked for the magazine’s cover.

While an honour to be so highlighted, it’s on the track that any racer worth his salt is looking to stand out and, being able to set 8.8 second times for the quarter-mile would, you might think, be quick enough for Adrian. Not so, he says - 8.8 seconds is not nearly quick enough.

“What I wanted, still want, is to run a 7-second time in the car. However, the supercharger is just too hard on the engine. In fact, when I last raced it 14 months ago we had a problem and it spun the bearings.

"I did fix it up, upgraded everything – it has a different crank, pistons and so on – and got it running again, but I realised that if I wanted to improve the times then I would have to change things again.

"Which is why I am going to turbocharge it. A turbocharged engine is less harsh on the parts and adds a lot of power. In fact, it will probably give me an extra 400hp. Now, that should give me some good times!”

Adrian hopes to have the Coming soon . . . Twin turbos will, says Adrian, give the Torana more than 1000hp

DO YOU HAVE A PRIDE AND JOY IN THE GARAGE THAT YOU WOULD LOVE TO SEE IN THE PAGES OF MOTOR TRADER? Contact Jonathan Nash at jonathann@ mtaq.com.au or 07 3237 8721 and let’s see if we can share your classic with other members.

turbochargers installed soon and the car back on the track and racing sometime early in the New Year.

And with all that extra power, he might well find himself challenging for the top spot and back on the cover of a magazine or two.

One thing is for sure, however. In his quest for more speed, Adrian may well tinker with the engine but there’s no thought of changing the car. In fact, a Smith could be at the wheel of this glorious motor for years to come, tearing up and down the race tracks of the country.

“This is my pride and joy and there’s no way I would part with it,” says Adrian. “In fact, I think one day my son Lachlan will be racing it - which is pretty much all that he wants to do now!”

By then the Torana will be knocking on the door of 50 years old. A sub 8-second, 1000hp, 50-year-old car . . .

Now that’s something special.

November 2016 Motor Trader | 17

Can you afford not to be in the circle?

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INDIVIDUAL EMPLOYERS, 43 SCHOOLS AND 97 STUDENTS PARTICIPATED IN THE ACCELR8 PROGRAM.”

MEMBERS MEMBERS ESSENTIALS ESSENTIALS

PAUL KULPA GENERAL MANAGER MTA INSTITUTE

Contents 19 Training GM's Professional Circle perspective 20 Professional Circle training 27 Member profiles

B & A TYRE & MECHANICAL KUTTABUL AUTOMOTIVE

28 Industrial relations

A

S WE HEAD toward the end of the year, there have been a number of projects we have been involved in that are finishing up. I recently had the pleasure to attend the AccelR8 graduation night for Grade 12 students. AccelR8 is a program to improve successful transition of students from school to work through the creation of stronger links between industry, schools, students and vocational education and training.

This year, 78 individual employers, 43 schools and 97 students participated in the AccelR8 program. It was great to see the students finish the program and achieve a Certificate II in Automotive Vocational Preparation. Even more important was some students were able to secure apprenticeships – that’s a great result!

We also finalised our international study tour for South Korean students.

This saw students complete a fourweek Certificate I in Automotive Vocational Preparation which also included work experience provided by local dealerships. Speaking to the students, they explained the benefits of the experience of coming to another

country and immersing themselves in the culture, and truly appreciate what working conditions would be like in an automotive workshop. They were grateful for the experience and I’m glad MTA Institute could provide these students with lifelong memories.

Lastly, we also finalised our Auto Initiation program, with the last course delivered in Mt Isa. The Mt Isa course was the most challenging to complete given the location and the economic climate affecting placing students into work. However, we have had some wins by placing some students into work experience. Overall the program was well received, and I would like to thank employers that helped out along the way offering support where they could.

Taking stock of these achievements, it’s always a great pleasure to look at these programs and see how successful they have been in not only providing students access to work in the automotive industry, but also for employers looking to engage participants who have been exposed to some sort of formal automotive training before putting them on as an employee. Some of the best people we have in industry got their chance through these sort of introductory courses and it always inspires us at MTA institute knowing we have been a part of someone’s start in the industry.

We look forward to running more of these program in the future.

Until next time, take care and train hard.

November 2016 Motor Trader | 19

E S S E N T I A L S

“THIS YEAR, 78

M E M B E R S

Training GM's Professional Circle perspective

E S S E N T I A L S M E M B E R S

Professional Circle training

AUTO INITIATION PROVIDES AUTO FUNDAMENTALS TO MT ISA STUDENTS A T THE BEGINNING of 2016, the MTA Queensland launched the Auto Initiation program, a pre-vocational automotive course designed to deliver knowledge and skills fundamentals to job seekers in regional Queensland who are keen to enter the automotive workforce.

Delivered under the Queensland Government’s Skilling Queenslanders for Work initiative, participants earn a Certificate II in Automotive Vocational Placement. However, the Auto Initiation program offers more than just training in automotive fundamentals. Critical elements of the program include the opportunity of work experience and training in ‘life skills’ such as literacy and numeracy, interview techniques and financial management. Together, this package of training gives the participants the confidence to be ‘job-ready’ and prepared to enter the industry 20 | Motor Trader November 2016

as an apprentice.

The Auto Initiation program has been a tremendous success – delivering training to more than 260 students across the state from the Gold Coast to Gladstone, from Townsville to Hervey Bay. The latest course was run through September and Trainer Jeff Mann (left) oversaw the Mt Isa Auto Initiatio n program October in Mt Isa, in the far west of Queensland, and the program was met with an enthusiastic response from the THE COURSE HAS participating students.

BEEN GOING WELL . . .

“I’m loving it. It is very WE’VE DONE A LOT OF informative,” said Ky King, a 25-yearold former chef from Mt Isa. “The PRACTICAL WORK AND course is really good because you get ONE OF THE STUDENTS that experience with the hands-on EVEN BROUGHT IN A side of it but you also get the theory side. And it starts from the beginning.

COUPLE OF CARS THAT We have worked hard on the WE’VE BEEN ABLE TO fundamentals and covered bearings, WORK ON, WHICH seals, gaskets, auto electrics. We have also worked on learning all about WAS GREAT. tyres and tyre fitting and covered

“

”

M E M B E R S E S S E N T I A L S

other areas such as customer service skills, phone etiquette and so on. It has been tremendous.”

Although always keen on cars – her father is in the trade – Ky originally chose a career that is a world away from that of engines, diffs and crankshafts.

“I’ve always been interested in cars but when I was younger I took a different path and became a qualified chef,” she said with a laugh. “However, I decided what I really wanted was to get into mechanics.

“My dad loves the idea and I am actually doing my work experience at Power Automotive, where he works.

It’s great to have that experience in a workshop –to see the day-to-day running of a shop and get some hands-on experience. I’ve been shadowing a mechanic, working on servicing and jobs such as engine changes. It has been really good.”

The Mt Isa Auto Initiation course was run by senior MTA Institute trainer Jeff Mann utilising the resources of the MTAQ’s Mobile Automotive Training Unit – the ‘workshop on wheels’ used to deliver the course to regional areas – and he said the students were an enthusiastic and hard-working group.

“The course has been going well,” he said. “We’ve done a lot of practical

how even the non-mechanical aspects of the job are vital.

“This new generation coming through look at things differently,” he said.

“And it’s vital they realise how something as simple as turning up everyday, how sweeping out a workshop and taking responsibility for cleaning, how wearing a smart Ky King uniform, is all important to a workshop. And this group of students have been good at grasping that.”

THE COURSE HAS As for the students’ prospects, BEEN GREAT . . . IT Jeff is hopeful that apprenticeships DEFINITELY HAS GIVEN are well within the grasp of some, ME THE CONFIDENCE TO though he acknowledged that times are difficult.

KNOW THIS INDUSTRY “Things are a little tough here in IS FOR ME. AND THAT’S Mt Isa,” he said. “The work situation is tight but there are a few places looking WHAT I PLAN TO DO for apprentices in the next year or so NOW, START CHASING and with this course and preparation THAT APPRENTICESHIP! behind them I have told everyone they should apply.”

For Ky King, as for the rest of the work and one of the students even students, the Auto Initiation course brought in couple of cars that we’ve has given them a clear pathway into been able to work on, which was great. the automotive industry and an The guys are enjoying it and getting understanding of what is required involved and learning new skills. once they get there.

They’re enthusiastic and everybody is “The course has been great,” said having a go.”

Ky. “It definitely has given me the The Auto Initiation course is, confidence to know this industry is for said Jeff, very important, allowing me.

And that’s what I plan to do now, young people to get a taste of what start chasing that apprenticeship!” is involved in life in a workshop and

“

”

November 2016 Motor Trader | 21

E S S E N T I A L S M E M B E R S

Professional Circle training

SOUTH KOREAN STUDENTS TACKLE CERT I PROGRAM WITH MTA QUEENSLAND

The South Korean students enjoyed work experience at Keema Hyundai, Zupps Mt Gravatt Subaru & Kia, Q Ford and Oldmac Mazda

T

HROUGHOUT OCTOBER, THE MTA Queensland played host to two groups of young students from South Korea, training and guiding them as they sought to attain a Certificate I in Automotive Vocational Preparation.

The groups hailed from the Jeonnam and Daejeon regions of South Korea – regions with which MTA Queensland has developed a strong relationship over the past few years.

Designed to teach students the basics of automotive – including environmental practice, health and safety, cooling systems, suspension and brakes and the use of tools – the Certificate I in Automotive Vocational Preparation program was tailored to meet the demands of each group.

For the 20 students from Jeonnam, this meant intensive English language

22 | Motor Trader November 2016

“THE EMPLOYERS,

THE MTA QUEENSLAND MEMBERS, WERE HAPPY TO BE INVOLVED AND OFFER WORK EXPERIENCE OPPORTUNITIES, WHICH IS FANTASTIC.”

training followed by four weeks of training at MTA Queensland’s workshop under the guidance of trainer Peter Ruhanen with one day of each week being used for work experience at MTAQ member businesses Zupps Mt Gravatt Subaru & Kia, Q Ford, Oldmac Mazda and Keema Hyundai.

For the students from Daejeon, the program involved one month of English language training, three weeks at MTA Queensland with MTA Institute’s Operations Manager Marcello Riotto, three weeks of work experience at Keema Hyundai then one final week back at MTA Queensland.

A study tour that offers both automotive training and a lifeexperience opportunity, the Cert I program has been a positive experience for the students and the

MTAI TRAINER PROFILE

KNOWLEDGE CAN BE DIFFICULT, BUT WE USED PROPS AND AN ONLINE TRANSLATOR AND, WHILE IT WAS A CHALLENGE, IT WORKED.” “I think the smaller group from Daejeon will all achieve their Cert I and, should they choose to move on and work in the industry they could easily do so.”

began training apprentices in 1997, then became a workshop manager for 6 years.

I subsequently started my own garage and was a business owner/manager of a Renault light vehicle workshop for 6 years.

I was an automotive technical trainer for Workskills for 4 years.

When did you become a trainer for MTA Institute?

July 2016.

What geographical area do you service?

Mostly the south side of Brisbane.

What is the most satisfying aspect of your role as a trainer for MTA Institute?

What is your specialised area?

Light Vehicle Mechanic and Parts Sales.

What is your background in the automotive industry?

I started in the motor industry in 1988 as a diesel mechanic and then joined Renault (light vehicle) in 1990 as an apprentice.

I became a master technician and

information on, and making the training interesting.

Why should someone consider a career in the automotive industry?

The satisfaction of being able to repair a vehicle on your own is awesome and being able to assist others in need is gratifying. The new technology that is being produced is mind-blowing and fascinating.

What is the best piece of advice you can give to an apprentice starting out in the industry?

The professionalism of the company, the resources available to us as trainers, and seeing the respect that the employers and students show towards trainers of this company.

Listen to what you are being told and don’t be afraid to ask questions.

There is no such thing as a stupid question. Make the effort to increase your knowledge by using all the available resources such as trainers, supervisors, books and the internet.

What do you believe is the most important aspect of training?

When you’re not training, what do you like to do?

Understanding your students, knowing which method to use to pass the

Doing house renovations, garden work etc. I like to be busy.

November 2016 Motor Trader | 23

E S S E N T I A L S

DERRICK PRATT

“IMPARTING TECHNICAL

“The Jeonnam group were a larger group and very motivated,” added Peter, “Although not all of them will achieve the Certificate I, there are a number that will, I think, be able to move on in the industry should they wish.”

The two Cert I programs were organised by MTA Queensland in partnership with Australian Language School – International House (ALS-IH) in Brisbane, and Smart Education Training Australia (SETA), an education and training consultancy also based in Brisbane.

MTA Queensland has been running the international Cert I program for three years now and has established partnerships with a number of South Korean institutions. Along with the Daejeon and Jeonnam regions, agreements have been signed with the Kunjang University College, a Registered Specialised College based in the city of Gunsan in the Jeollabukdo region, and the Advanced Institute of Convergence, a Human Resource Development and Research company located in Seoul.

M E M B E R S

MTA Queensland.

“The students have been tremendous,” said Anthony Bonaccorso, MTA Queensland Business Development Manager.

“They have been a terrific bunch, there are some standout students amongst them and they have all enjoyed the experience, especially the work experience component of the program.

“The employers, the MTA Queensland members, were happy to be involved and offer work experience opportunities, which is fantastic. They were happy to help out and were able to give these youngsters a great experience that exposed them to the culture and operation of an Australian business.”

For the groups’ trainers, Marcello Riotto and Peter Ruhanen, the program proved to be a rewarding challenge.

“There were eight subjects to cover – entry-level subjects such as simple processes and component identification,” said Marcello. “The biggest challenge was the language side of things. Imparting technical knowledge can be difficult, but we used props and an online translator and while it was a challenge, it worked.

2017 Retail Motor Trade Diary THIS QUALITY DIARY FEATURES: ✷ Professional design complete with gold corners and stitched spine backing ✷ Important telephone numbers and contact details ✷ 30 minute per day time slots ✷ Day by day planning

Member’s price $22 (GST inclusive) plus postage and handling.

Non Member’s price $25 (GST inclusive) plus postage and handling.

ORDER NOW TO SECURE YOUR COPY and avoid disappointment.

(Due for delivery mid-November) Just fax this completed form back to MTA-Q on (07) 3844 4488, OR email stationery@mtaq.com.au Please supply: ____ copies of the 2017 Motor Trade’s Diary at TOTAL $

(Plus postage and handling)

Company Name: Address: Postcode: Phone: (

)

Fax: (

Contact Name:

)

Date:

MTA-Q Member: Membership number/Account number: Capricorn Account number: Please bill to my account OR see payment details below Method of Payment: Cheque (Payable to MTAQ) / MasterCard / Visa Card Number: __ __ __ __/ __ __ __ __/ __ __ __ __/ __ __ __ __/

Expiry Date: __/__

Signature:

MTA Queensland Address Building 8, 2728 Logan Road Eight Mile Plains Qld 4113 Postal PO Box 4530 Eight Mile Plains Qld 4113 Tel (07) 3237 8777 Toll Free 1800 177 951

20120033

Name on Card:

CVN: __ __ __ /

ORE THAN 200 RACQ service providers, agents and approved repairers gathered at the RACV Royal Pines Resort on the Gold Coast in October for the RACQ’s annual Assistance Network Conference.

With a number of workshops and presentations made over the two days of the event, the conference is an opportunity for the RACQ to bring their network of Contract Service Providers John Robinson and Leoni Murphy at the MTAQ booth (CSP) and Approved Repairers (AR) together for updates on RACQ’s Gympie service provider – and strategy and direction, and to reward exhibiting at the trade show that ran those businesses that have delivered in conjunction with the conference. outstanding service through the year.

The MTA Queensland was present “This is an annual event that we at the conference for the fourth year attend and it is one that I really enjoy,” running, donating a Force Tool Box said Anthony Bonaccorso, Business as one of the prizes to be awarded Development Manager for MTA during the convention’s gala dinner Queensland who, along with a number – a prize won by Peter Allan from the of other MTA Queensland personnel,

POLICY AND TRAINING ON THE AGENDA AS POLITICIANS VISIT MTA QUEENSLAND

Paul Kulpa and Brett Dale with Graham Perrett MP

A SIGNIFICANT ROLE of the MTA Queensland is to represent the interests of its members to the many industry stakeholders, including state and federal governments and MPs from both sides of the political aisle.

In recent weeks, the MTA Queensland has been honoured

represented the Association at the convention. “The convention has a great agenda with some excellent speakers and workshops. It is very informative and the RACQ’s Contract Service Providers and Approved Repairers from across the state take part.

“The MTA Queensland takes part in the trade show that runs parallel to the conference, along with many other suppliers and partners of RACQ, and we are able to exhibit the scope of our services.

“Many of the CSPs and ARs are independent mechanical workshops in their own right and have the choice to be an MTAQ member and to use the training services of the MTA Institute. To be able to talk about those opportunities with them is tremendous and it’s a pleasure to be part of the whole event.”

Paul Kulpa and Brett Dale with Senator Chris Ketter

to host visits from a number of parliamentary members including Graham Perrett, Federal Member for Moreton; Leeanne Enoch, Member of the Queensland Parliament representing Algester; and Queensland Senator Chris Ketter.

These meetings, and there are more

to be held over the next few months, have given the MTA Queensland the opportunity to discuss policy and training issues with important stakeholders while also allowing these important guests to gain a better understanding of the work of the Association and the MTA Institute.

November 2016 Motor Trader | 25

E S S E N T I A L S

MTA QUEENSLAND OPEN FOR BUSINESS AT RACQ CONFERENCE M

M E M B E R S

Professional Circle training

E S S E N T I A L S M E M B E R S

MT’s Christmas gift guide

T

HERE’S JUST A few weeks left now until Christmas and if you’re still wondering what to get your friends and family, here are

a few more auto-related items we’ve found from around the internet that would make interesting gifts.

TELSTRA PRE-PAID 4GX WIFI WITH CAR KIT MANY LUXURY CARS are now available with built-in WiFi internet connectivity, but adding a WiFi hotspot to your car is easier than you think. All you need is a mobile WiFi dongle and data reception to create an on-board WiFi hotspot for up to 10 devices. In-car Wi-Fi is the next magical step beyond in-car DVD players for keeping all aboard content on long journeys.

Battery life up to 10 hours. Available in store and online with 3GB of data to use within 30 days.

Price: $79 Available from www.telstra.com.au

GIANT BAND-AID MAGNET IS YOUR CAR a bomb? Maybe it’s just rough around the edges? If there is a ding on your precious car, maybe it’s time to cover it up. Great for covering dints, marks or rust, this giant Band-Aid Magnet (43cm a 12.5cm) should bring a smile to everyone’s face as you wait to take your pride and joy to the shop for repairs.

Price: $10.99 Available from www.yellowoctopus.com.au

SOUNDRACER SPORTS CAR SOUND EFFECTS GADGET

VW CAMPERVAN TENT

EVER WANTED TO drive a sports car but your budget limits you to the stodgy family sedan? Here’s a little gadget that should bring a smile to your face. The SoundRacer mimics the sound of a race car using your car’s stereo. Plug it into your 12-volt socket, select the right frequency for the car stereo and the SoundRacer does the rest, sensing and calculating your car’s RPMs and matching it with the right sound effects. With this cool tool, we can all be Bathurst winners, Lamborghini owners, or Ferrari fanatics – or at least sound as though we are.

Price: from $59.95 to $99.95 Available from www.latestbuy.com.au

YOU’LL BE THE envy of the campsite with this cool VW camper tent - a full size replica of the 1965 Camper Van. The 100% waterproof tent has great internal height and the inside divides into two rooms, which can comfortably sleep two people in each.

The tent comes with a large waterproof groundsheet sewn inside and is made from top quality materials (manufactured by the makers of North Face, K2 and Coleman tents). Free Shipping.

Price $595 Available from www.yellowoctopus.com.au

ROUTE 66 FUEL BOWSER TABLE LAMP ONE OF THE original highways in the US, Route 66 is often referred to as the Main Street of America. The detail in this vintage fuel bowser lamp is a true representation of old school style.

Price: $49.95 Available from www.giftsforblokes. com.au 26 | Motor Trader November 2016

What has been your proudest business achievement to date?

What is the best thing about working in your industry?

The industry is interesting and keeping people safe on the road.

What is the best piece of business advice you have ever given or been given?

Honesty is the best policy.

What would you say to someone thinking about joining MTAQ? Just do it - you won't regret it.

B & A Tyre & Mechanical Location: Beerwah Type of business: Mechanical workshop Number of employees: 5

How did you hear about the Motor Trades Association of Queensland? (MTAQ) Industry sources.

Trading since: 2008

How has being an MTAQ member benefited your business?

MTAQ member since: 2016

Industry recognition and credibility.

and latest industry information has been a big benefit to my business.

What has been your proudest business achievement to date?

Still working on that - I've only been here 12 months.

What is the best thing about working in your industry?

The variety of work.

What is the best piece of business advice you have ever given or been given?

Take small steps.

What would you say to someone thinking about joining MTAQ?

Kuttabul Automotive Location: Kuttabul Type of business: Mechanical Repairs Number of employees: 1

How did you hear about the Motor Trades Association of Queensland? (MTAQ)

Just go ahead and join. If you take advantage of all the available benefits it's great value for money.

When I did my apprenticeship.

Trading since: 2015

How has being an MTAQ member benefited your business?

MTAQ member since: 2015

Access to the technical info service

November 2016 Motor Trader | 27

E S S E N T I A L S

Always increasing repeat business with customers.

M E M B E R S

Member profiles

E S S E N T I A L S M E M B E R S

Industrial relations include entitlements of casual and part-time employees.

There is also an explanation of how the Commission arrived at this year’s increase in Award rates.

ANNUAL STATISTICS Possibly the most useful part of the Annual Report is the data on employee claims such as Unfair Dismissal and General Protections claims. These statistics give employers an idea of what to expect should they be unfortunate enough to find themselves facing a complaint.

PAUL MURRAY INDUSTRIAL RELATIONS OFFICER

UNFAIR DISMISSAL CLAIMS

FAIR WORK COMMISSION ANNUAL REPORT The Fair Work Commission has published its Annual Report for the 2015-16 Financial Year. While the report covers all aspects of the work the Commission carries out, there are some sections that will be of particular relevance to our members.

The Four Yearly Review of Modern Awards continues. We have already seen some of the results feed down into our Awards. In particular, we have seen changes to annual leave provisions, and the reintroduction of accident pay.

This has meant some changes in how excessive annual leave is dealt with and both Awards now allow employees to cash out excess leave. The review is expected to be completed next year.

Other areas that might see changes

The Commission handled 14,694 claims; very close to last year’s figure of 14,624 and other recent years.

There were 10,850 set down for conciliations, 2,130 of which finalised before a conciliation conference could be held. Of the rest, 8,529 settled at conference and 2,808 after a conciliation but without requiring a hearing or arbitration.

That means 79 per cent of these matters settled at conciliation, which is identical to the last two years.

This shows that even if a member is unfortunate enough to have to deal with a claim, the odds are good that it can be settled at conference. MTA Queensland can be there to represent and assist members.

Settlements with both a monetary and non-monetary component

accounted for 63 per cent of the matters settled, with 15 per cent having only a non-monetary component and 0.7 per cent resulted in reinstatement of the applicant. Typically, non-monetary components can include allowing an ex-employee to be deemed to have resigned instead of being dismissed, or providing a statement of service.

Approximately a third settled for $4,000 or less, and 60 per cent for under $8,000.

GENERAL PROTECTIONS CLAIMS For the first time, figures on conferences for General Protections claims involving dismissals have been published. Claims were down slightly from last year at 3,270.

Three quarters of these resolve without having to go to court. Roughly half settled at conciliation and 15 per cent were withdrawn prior to conference. For those that settled in conciliation, 63 per cent settled with monetary compensation. Of those, 60 per cent were for less than $6,000 and 82 per cent for less than $15,000.

BULLYING APPLICATIONS These remained steady at around 700 a year. The overwhelming majority were settled or withdrawn during the process. Less than 8 per cent needed a decision, and in only one per cent of cases was it necessary for an order to be made.

MTA QUEENSLAND WELCOMES THE FOLLOWING NEW MEMBERS Business Name

Principal/s

Address

Email

Division

A1 Nissan Wrecking A1 Roadworthys All Torque Automotive A Plus Car Wash Ture & Auto Autohaus Euro Pty Ltd B & A Tyre & Mechanical Carmend Smash Repairs Geoffs Automotive Service Centre HQ Automotive Quattromotive Auto Tech Red Devil Radiators & Air Conditioning Royce Motors Urban Auto Care

Andrew Bungey Paul Allwood Stuart Polley Monir Alnasaj David Crawley Ben Ratcliffe Robert Hiesler Geoff Blower Adrian Jeckeln Ferris Lee Julia Roberts Kevin Royce Darren Webb

28 Moss Street, SLACKS CREEK Q 4127 166 Musgrave Road, COOPERS PLAINS Q 4108 6C Harvton Street, STAFFORD Q 4053 1005-1007 Fairfield Road, YEERONGPILLY Q 4105 4/2 Case Street, SOUTHPORT Q 4215 52 Peachester Road, BEERWAH Q 4519 Unit 2, 25 Unwin Street, MOOROOKA Q 4105 8/132 Brisbane Road, LABRADOR Q 4215 12 Rapkin Street, TARRAGINDI Q 4121 4/2 Jenner Street, NUNDAH Q 4012 Unit 4/2 Spanns Road, BEENLEIGH Q 4207 Unit 1/30 Pentex Street, SALISBURY Q 4107 68 Cambridge Street, COORPAROO Q 4151

A1nissan@bigpond.com hello@a1roadworthy.com.au alltorqueauto@bigpond.com info@aplus.team southportautohaus@bigpond.com beerwahtandm@bigpond.com rob@carmend.com.au geoffsautomotive@bigpond.com.au hqautomotive@bigpond.com AED ferris@quattromotive.com.au Beenleigh@reddevilradiators.com.au kvnroyce@yahoo.com.au email@urbanautocare.com.au

AED AED AED AED AED AED NACA AED AED AED AED AED AED

28 | Motor Trader November 2016

Investment matters

MARKET WRAP

S

EPTEMBER WAS ANOTHER mixed month for global markets as all the major central banks held monetary policy meetings. In the US, equities (S&P 500) finished the month flat. The US Federal Reserve kept rates unchanged at 0.25–0.50 per cent but stated that ‘the case for an increase in the federal funds rate has strengthened’. The Federal Open Market Committee (FOMC) continued to signal that progress in the US economy is positive and that the appropriate rate should be higher by the end of the year. The Euro Stoxx also finished the month flat, while the German DAX was down 3.8 per cent over Deutsche Bank concerns—the bank faces US$14b in fines over claims it mis-sold mortgage-backed securities. In Asia, the Bank of Japan shifted the focus of its stimulus from expanding the money supply to controlling interest rates and recommitting to reach its 2 per cent inflation target.

The ASX 200 Accumulation Index closed up 0.5 per cent for the month. Materials was the strongest performing sector closing up 5.6 per cent, while returns were dragged down by bond-proxy sectors such as Telecommunications, Utilities and property trusts.

Over the next month, markets will be focused on the US, with the presidential election taking place and a potential December rate hike.

The polls suggest a Clinton win but following the Brexit decision it pays to be alert for an alternative scenario Markets also suggest Trump has

“OVER THE NEXT

MONTH, MARKETS WILL BE FOCUSED ON THE US, WITH THE PRESIDENTIAL ELECTIONS TAKING PLACE AND A POTENTIAL DECEMBER RATE HIKE.” only a 35 per cent chance of victory but it is very hard to predict who will turn up to vote and Trump appears to be stronger in demographics more likely to show up on election day. Markets would be likely to react negatively to a Trump win for the following reasons: • Clinton’s long history in the public eye and greater policy detail provides greater certainty.

• Trump’s key policy around increasing trade barriers is particularly an issue.

• It will heighten the risk premium investors will demand to allow for ongoing political risk.

However, like Brexit, we would

expect the downturn to be short-lived as there is little that Trump could achieve in the short term given his lack of ready-to-go policies, his lack of relationships with key policy makers and the need to manage any policies through the Senate and Congress.

We assume many of his pre-election policies would be heavily watered down.

While the key negative for the market would be Trump’s success pushing a protectionist agenda (and any copycat policies elsewhere), there are other investment implications that could emerge: • we would expect a stronger US$ (safe haven trade and uncertainty around trading partners).

• he is likely to accelerate infrastructure spending, which would have positive implications for companies such as Macquarie Bank and Lendlease.

• Tax cuts would be a positive for companies operating in the US. DISCLAIMER This document provides general information only and is not intended to be a recommendation to invest in any product or financial service mentioned above.

Investment in a DNR Capital individually managed account can only be made on completion of all the required documentation. Whilst DNR Capital has used its best endeavours to ensure the information within this document is accurate it cannot be relied upon in any way and recipients must make their own enquiries concerning the accuracy of the information within.

November 2016 Motor Trader | 29

Concept corner

Renault Trezor

RENAULT’S ELECTRIC MASTERPIECE

T

HIS IS THE Trezor, a quite spectacular all-electric concept from Renault that was revealed at the Paris Motor Show in October.

Although it seems like every concept offering these days has some sort of all-electric system, the Trezor may have a bit of a head start on its rivals. Renault says its high-output powertrain is derived from the company’s Formula E sports cars, meaning that the technology is proven and potent. The Rechargeable Energy Storage System (RESS) technology comes from Formula E too and the powertrain produces 350hp and 30 | Motor Trader November 2016

380Nm giving the Trezor a 0-100km/h time under four seconds. With a drag-coefficient of 0.22, the car would surely reach a nifty, though as yet unspecified, top speed.

Inside, there is plenty of startling red leather and wood paired with some clever tech.

The dashboard design uses ultra high definition displays with a touchscreen that can be personalised, and your smartphone can be linked in to the car enabling all your important info and apps to be displayed on the multimedia display. There are three driving modes - neutral, sport and autonomous – and

when the Trezor is started, it is scanned electronically to ensure everything is functioning correctly.

Getting in and out of the Trezor cockpit involves lifting the one-piece roof. It’s a cool feature (and one it shares with the excellent Holden Hurricane concept from 1969).

It would be nice to think that we could see the Trezor on our roads at some point but concepts rarely make it to the highway in their original form.

However, each concept that comes along seems to confirm that all-electric, autonomous driving vehicles will play a large part in our future. We will see.

RENAULT SAYS ITS HIGH-OUTPUT POWERTRAIN IS DERIVED FROM THE COMPANY’S FORMULA E SPORTS CARS MEANING THAT THE TECHNOLOGY IS PROVEN AND POTENT.

November 2016 Motor Trader | 31

Paintless Dent Repair Introductory Course Right training.

Course Overview

Right place.

Paintless Dent Repair, or PDR, is the method by which dents can be removed from the bodywork of a vehicle leaving the original finish and paintwork intact.

Right way.

A wide range of imperfections can be corrected using PDR techniques, though it is most famously used for the repair of hail damaged vehicles.

MTA Institute is running a two-day Fundamentals of Paintless Dent Repair course.

The PDR technician uses special tools, glues and tabs to either push out dents from the underside of the bodywork or pull them out from the exterior of the panel. Specialist lighting and reflection boards and ‘tapping down’ techniques are used to ensure a perfect finish.

The PDR industry is experiencing a massive upturn. It is a fast and efficient method for the repair of many imperfections, and skilled technicians are much sought-after in the body repair industry.

MTA Institute has partnered with industry-leading company PDR President to offer this course in the fundamentals of Paintless Dent Repair.

In this course you will be taught the basic tips and techniques behind the successful practice of paintless dent repair. These include: 1. Metal movements and theory 2. Lighting (fog and line boards) 3. Tool selection 4. Access and leverage 5. Glue pulling Time:

9am to 4pm, lunch included

Location: MTA Institute, Eight Mile Plains Cost:

$1650 per person (Inc GST)

Enrol Should you wish to enrol, or require further information, please contact one of our friendly staff on 3722 3000.

Address Freeway Office Park, Building 8, 2728 Logan Road, Eight Mile Plains, Queensland, Australia 4113 Tel (07) 3722 3000 Toll Free 1800 884 137 Email courses@mtai.edu.au Website mtai.edu.au Postal PO Box 4530 Eight Mile Plains, Queensland, Australia 4113

20150268

MTA Institute Sir Jack Brabham Automotive Centre of Excellence

Industry insight

TRIMMING COSTS CAN SOMETIMES ADD BETTER PROFIT THAN SELLING MORE B USINESS OWNERS/MANAGERS WILL often place more focus on selling than on buying, and that’s natural. You may be surprised though, if you can spend a little time looking at your costs, at how much you can improve your profit.

A small reduction in costs can often achieve a far better result on the ‘bottom line’ than a large increase in sales, and can be a lot easier to achieve in some cases.

There are generally two types of costs in business: • Direct Costs or COGS (Cost of Good Sold) • Indirect Costs or Overheads.

COGS are sometimes referred to as COS or Cost of Sales.

The difference between COGS and Overheads is COGS mainly only occur when you sell something, whereas Overheads occur whether you make a sale or not. e.g. rent is an overhead as this has to be paid whether you make a sale or not, whereas purchase of stock or paying service deliverers only occurs when you sell something.

The reason it is important to differentiate between COGS and Overheads is because every business needs to know its Gross Profit. Gross Profit is calculated by subtracting the COGS from the Income or Revenue figure. Gross Profit is an early and important indicator of business performance, both for managers and lenders. It’s also an important benchmark against which to measure a business against others in its industry.

We suggest you get into the habit of monitoring the Gross Profit percentage. A percentage is an easier measure to monitor than a dollar figure.

With a dollar figure you can’t easily see if the gross profit level is being maintained if revenue is rising or declining, whereas with a percentage it’s easier to see if you are going backwards or forwards.

Here is an example of why Gross Profit percentage is more important to know than the dollar figure.

In this example you can see the circled figures show the real result rather than just looking at the Gross Profit dollar figure. We could be tricked into thinking this is a great result because Income and

Gross Profit have risen, until we consider that the slip of 3% on Gross Profit percentage has cost the business $45,000.

Year 1

Year 2

Income

1,000,000

1,500,000

COGS

400,000

450,000

Gross Profit

600,000

855,000

GP%

60%

57%

Similarly it’s important to monitor the COGS percentage as well as the dollar figure.

This helps you to quickly identify if costs are creeping up. Once you know this you can take quick action to maintain your Gross Profit levels by increasing prices or negotiating with suppliers for better purchase pricing or seeking other suppliers.

It is so easy to keep on buying from the same old supplier because you always have. There was one example recently of a business who approached their regular supplier of packaging for a better price and were turned down.

They sought another supplier of the same goods and were offered a 10 per cent discount from them. When they went back to the old supplier and told them of the 10 per cent discount they were immediately offered the same price from them.

This item was a large portion of the COGS for this business, so the impact on their gross profit was significant. Imagine if they had gone along with the old supplier for the foreseeable future how much this would have cost the business in lost gross profit?

What type of costs are classified as COGS? • Purchase of stock to sell.

• Movement in stock held i.e. what was held at the beginning of an accounting period versus what was held at the end of the period.

• Freight costs to get goods into and out of stock.

• Labour costs relating to production of a service or product.

• Importing costs e.g. duties etc.

• Discounts given.

• Stock adjustments/wastage.

• Purchase returns and allowances.

• Raw materials.

• Manufacturing costs.

• Packaging.

• Other costs to get goods or services ready for sale.

An example of how this works.

COGS are often the most ‘sensitive’ Key Financial Driver in relation to financial results. For one business a 1 per cent reduction in COGS% can add $37,000 onto profit and $35,000 cash back into the bank. This is a healthy result for a small amount of work. Whereas, in the same example, an increase in revenue of 24 per cent would be needed to achieve the same increase in profit.

If you’re in a service business don’t think that COGS doesn’t relate to you because you don’t sell products.

A factor in COGS for service businesses is ‘Work in Progress’ (WIP).

Many service businesses have no real methodology for handling Work in Progress or Jobs. Getting this function under control in your business can have a huge impact on profit and cashflow.

We can show examples where a five-day reduction in the average WIP days can put $35,000 back into the bank account. When one client, an electrical contractor, was asked how often he did his invoicing to customers his answer was, “When I run out of money!”.

It is not very difficult to put in place a process for ensuring jobs get invoiced out as quickly as possible, therefore speeding up payment and reducing cash flow squeeze. There are ways that easily speed up WIP and jobs, and the resulting improvement in profit and cashflow far outweighs the cost. Once you have these systems in place, they are there forever and you need to spend less time worrying about cash flow and profitability in the future.

Don’t wait until the end of the financial year to look at these percentage results. Most good accounting systems have a report that calculates percentage figures on the Profit and Loss Report.

Budgeting for COGS is an important function in monitoring profitability. COGS can very easily ‘creep up’ without you realising it. These increased costs need to be passed onto customers in order to maintain margins.

Keeping track of such costs may seem like a pain, but the resulting control over margins and profitability far outweighs the cost of maintaining such control.

For more information, go to businessnumbersmadeeasy.com

November 2016 Motor Trader | 33

Craig Lowndes, TeamVortex

The # 1 choice of TeamVortex and 40,000 other businesses Make it Yours

08/16

1300 362 415 mtaasuper.com.au

This document is issued by Motor Trades Association of Australia Superannuation Fund Pty. Limited (ABN 14 008 650 628, AFSL 238 718) of Level 3, 39 Brisbane Avenue Barton ACT 2600, Trustee of the MTAA Superannuation Fund (ABN 74 559 365 913). Motor Trades Association of Australia Superannuation Fund Pty. Limited has ownership interests in Industry Super Holdings Pty Ltd and Members Equity Bank Limited. The information provided is of a general nature and does not take into account your specific needs or personal situation.

You should assess your financial position and personal objectives before making any decision based on this information. We also recommend that you seek advice from a licensed financial adviser. The MTAA Super Product Disclosure Statement (PDS), an important document containing all the information you need to make a decision about MTAA Super, can be obtained by calling MTAA Super on 1300 362 415 or visiting mtaasuper.com.au/handbooks. You should consider the PDS in making a decision.

Motor Trades Association of Queensland

A n n u a l

R e p o r t

2 0 1 6

Contents

02 Chairman’s Report

07 Secretary’s Report

08 Group Chief Executive’s Report

10 Members Services and Support 17 Australian Automotive Dealer Association (Qld) 19 Automotive Engineers Division 20 Automotive Parts Recyclers Division 22 Engine Reconditioners Association of Queensland 23 National Auto Collision Alliance 25 Queensland Farm and Industrial Machinery Dealers Division 27 Queensland Motorcycle Industry Division 29 Rental Vehicle Industry Division 30 Service Station and Convenience Store Association of Queensland 32 Tyre and Undercar Division of Queensland 34 Automotive Remarketing Division

36 MTA Institute

38 Financial Report 68 Board Members 2015 - 2016

Motor Trades Association of Queensland Industrial Organisation of Employers 01

Chairman’s Report Your Board, over the past year, has been diligent in attending to these multifaceted responsibilities in the best interests of the membership.

I am proud to present the Annual Report of the Motor Trades Association of Queensland (MTA Queensland) reviewing its 87th year as an industrial organisation of employers in the motor trades.

David Fraser Chairman MTA Queensland

This is my seventh term as Chairman of the MTA Queensland, which I serve with pride and commitment.

We are governed by our Rules, pursuant to the Queensland Industrial Relations Act 1999 and Fair Work (Registered Organisations) Act 2009. It is my charter to ensure they are complied with and are as germane now as when framed. These specify the purpose of our being and are embedded in our corporate culture: • to promote, advance and protect the interest of the motor vehicle industry and associated trades or businesses in Queensland and to conserve the interest of members; • to advocate, advance and protect the interests of employers connected with the motor vehicle industry and associated trades or businesses in Queensland; • to consider and deal with any question relevant to the motor vehicle industry and associated trades or businesses; • to participate in, promote and encourage all forms of education and training supportive of the development of the motor vehicle industry and associated trades or businesses in Queensland; and • to do any such other lawful things as may appear to be incidental or conducive to the above Objects in any of them.

best interests of the membership.

The prime responsibilities have been to install comprehensive governance arrangements, implement the MTA Queensland strategic plan, adapt to the digital advances in the corporate office and the progressive technological changes in the motor trades, roll out the Professional Circle, grow the membership and advance consultations on collaborating with MTAs in other jurisdictions. A survey of members, including past members, was undertaken to assist the Board with its strategic planning and service delivery.

The Board has met on four occasions to attend to MTA Queensland issues and motor trades’ matters. The Executive Committee meets when required. Board members have been professional and conscientious in their duties and deliberations. Corporate governance - the mechanisms, processes and relations of the Board - has been, and is, of a high standard. I thank each Board member for their genuine and selfless service and commitment to the Association and the values that are central to our culture.

Attached to this report are the comprehensive statements from the chairs of the 11 industry divisions, each being a Board member. I thank them for their duty, commitment and contributions to the Board’s deliberations and corporate governance.

They are: • David Fraser, MTA Queensland Chairman and Chair of the Queensland Farm & Industrial Machinery Dealer Division (QFIMDD)

MTA Queensland Board

• Mark Bryers, MTA Queensland Vice Chairman and Chair of the Engine Reconditioners Association Queensland (ERAQ)

Your Board, over the past year, has been diligent in attending to these multifaceted responsibilities in the

• Paul Peterson, MTA Queensland Secretary and Chair of the Queensland Motorcycle Industry Division (QMID)

02 Motor Trades Association of Queensland Industrial Organisation of Employers

The Professional Circle was an initiative agreed at the 30th October 2015 annual Board meeting and announced at the President’s Ball the following evening. It has been rolled out over the past year.

• Garth Madill, Chair of the Australian Automotive Dealer Association Qld (AADA (Qld))

I look forward to their contributions and input into the Association’s governance and administration.

• Lawrie Beecham, Chair of the Automotive Parts Recyclers Division (APRD)

The Board’s deliberations are enhanced by the contributions of our regional representatives who bring to the table an umbrella perspective of the automotive value chain economic circumstances and policy issues in their areas. I thank them for their valued input. They are:

• Tim Kane, Chair of the Service Station & Convenience Store Association Queensland (SSCSAQ) • John Ruddick, Chair of the Tyre & Undercar Division of Queensland (TUDQ) • Mark Dodge, Chair of the Automotive Engineers Division (AED) • Michael Kennedy, Chair of the Automotive Remarketing Division (ARD) • Steve Eaton, Chair of the National Auto Collision Alliance (NACA) • Chris Ching, Chair of the Rental Vehicle Industry Division (RVID) In the coming year there will be three new Board members. The Chair of AADA (Qld), Garth Madill; the Chair of the TUDQ, John Ruddick; and the Chair of the NACA, Steve Eaton, are retiring. Garth Madill served AADA Qld for four years, John Ruddick led the TUDQ for 13 years, and Steve Eaton represented Far North Qld members for 12 years and marshalled the NACA for two years. On behalf of the Board I thank each for their dedicated leadership, service and loyalty to their respective divisions of the motor trades and to the Association. Our best wishes are with them in the new phases of their lives.

On behalf of the Board I welcome: • James Sturges, Chair of AADA (Qld) • Brad Collett, Chair of TUDQ • Ben Chesterfield, Chair of NACA

• Mark Dodge, Far North Queensland Region Representative • Rod Pether, North Queensland Region Representative • James Robertson, Central Queensland Region Representative Former Board member and past Chairman of AADA (Qld) Len Daddow was honoured with Life Membership at the 30th October 2015 annual Board lunch in recognition of his long service and support to the MTA Queensland and AADA (Qld). He became a Board member in 1985 and served two terms as AADA (Qld) Chairman.

Executive Team The Board appointed Dr Brett Dale as Group Chief Executive (CEO) in May 2016. Dr Dale served from 2006-12 as the Managing Director of the MTA Institute. The position of CEO had been vacant for some six months and on behalf of the Board I thank Steve Ghost, the former Managing Director of Strategic Operations, for acting in the role for that period and for his contributions to the Association. Steve moved to pursue other opportunities.

In between Board meetings, the governance and administration of the Association rests with the Executive Team which includes CEO Dr Brett Dale, General Manager Kellie Dewar, Group Chief Financial Officer (CFO) Kathy Winkcup and MTA Institute

(MTAI) General Manager Paul Kulpa.

I thank each for their service to the Board, the membership, their belief in/ and accomplishing the Objects set out in the MTA Queensland’s Rules and for their integrity and professionalism in performing their duties.

Professional Circle The Professional Circle was an initiative agreed at the 30th October 2015 annual Board meeting and announced at the President’s Ball the following evening. It has been rolled out over the past year. It is based on the premise of ‘trust and professionalism’ which is at the heart of MTA Queensland’s philosophy and culture and is built on the five ‘pillars’ of Advocacy, Services, Training, Support and Innovation.

Corporate Office The corporate office is the kernel of our structure. It is professionally and competently led by CEO Dr Brett Dale and the Executive Team assisted by a skilled and loyal staff. The important corporate tasks of administration, service delivery, advocacy, industrial relations advice, communications and skilling/training our future workforce have been sustained and delivered at a high level. On behalf of the Board, I thank Dr Dale and each officer for their professionalism, dedication and commitment to the Association and to the membership. Thank you.

Finance Secretary Paul Peterson and CFO Kathy Winkcup have the responsibility for MTA Queensland’s accounting policies and systems and maintaining the comprehensive statements of income and expenditure. Best practice strategic business and financial management underpins all processes and procedures. The processing of financial and information data is

Motor Trades Association of Queensland Industrial Organisation of Employers 03

Chairman’s Report continued A prime focus has been the MTA Queensland’s deregistration as a state-registered organisation. With the advent of Work Choices and then the Fair Work system, all members were brought into the federal industrial relations system. electronic and I place on record the competency of the Association’s Chief Information Officer, James Orr. On behalf of the Board, I thank Kathy Winkcup and Paul Peterson for their integrity, commitment and diligence to their respective duties and roles.

I commend to members Secretary Paul Peterson’s Financial Report for the year ended June 2016.

The Association’s finances are audited

by BDO Audit Pty Ltd, Brisbanebased accountants specialising in audit, tax and advisory services. On behalf of the Board, I thank BDO for their assiduity and professionalism.

I commend to members the Independent Auditor’s Report.

Advocacy Under our Rules, advocacy is a primary duty in the interests of employers connected with the motor trades.

Throughout the past eight years, General Manager Kellie Dewar has carried the advocacy responsibility, resulting in our standing as the peak body representing the motor trades being recognised and respected by all levels of government.

Over the past year, the full suite of advocacy tools has been used to articulate the Association’s policies and views. These include engagement with stakeholders, deputations, letters, briefs, submissions, appearance before parliamentary committees and fora attendance. Priority issues addressed included responding to the Queensland Government’s Biofuels Mandate policies, the Queensland Parliamentary Legal Affairs and Community Safety Committee’s Inquiry on Lemon Laws, the Australian Consumer Law Review, and the National Transport Commission’s Regulatory options for automated vehicles.

Membership services MTA Queensland services provided to the membership are valued. This was one of the results of the survey of members on a range of issues. Almost 77 per cent indicated ‘it was the value of the MTA Queensland services in support of (their businesses)’ that was important to their membership.

These include advocacy, publications, communications, industrial relations, technical advice and customer service relations. Much credit for members’ high nomination of the ‘services in support of their businesses’ is with General Manager Kellie Dewar and her team for the friendly and professional delivery of these services.

In response to the survey question ‘which service members valued’, 72 per cent of respondents nominated industrial relations whilst 63 per cent designated industry updates.

Other services such as technical information, legal advice and consumer complaints rated well.

The 11 divisions that are the cornerstones of the Association rely on the support services provided by Kellie Dewar and her staff. Each Divisional Chair, in their respective report, has acknowledged the individual care delivered by Kellie’s team in processing issues and the high standard of professionalism in assisting them with their committee work and policies.

On behalf of the Board, I thank Kellie Dewar and her team for their professionalism, service and commitment to the membership.

I commend to members General Manager Kellie Dewar’s report.

Industrial Relations The priority for our Industrial Relations team led by Ted Kowalski, assisted by

04 Motor Trades Association of Queensland Industrial Organisation of Employers

Dr Paul Murray (Ph.D.), is providing advice and support to members on the full suite of workplace relations.

A prime focus has been the MTA Queensland’s deregistration as a state-registered organisation. With the advent of Work Choices and then the Fair Work system, all members were brought into the federal industrial relations system. There is no longer a necessity for the Association to retain its state registration. The Board, at its 12th May 2016 meeting, agreed to the deregistration process. Under the State Industrial Relations Act 1999, the full bench of the State Industrial Relations Commission must be satisfied a majority of members have agreed by ballot to do so. I’m pleased to report that members endorsed deregistration with overwhelming support.

On behalf of the Board, I thank Ted Kowalski and Dr Paul Murray for their service and advice to members on motor trades and employer matters.

I commend to members Industrial Relations Manager Ted Kowalski’s report.

Industry Awareness - Public Relations Integral to industry awareness and public relations is increasing the Association’s profile, knowledge of policies and views across all media platforms. Over the past 12 months, your Association has enhanced its communication capability both in print and electronic form.

The Motor Trader magazine is in its 82nd year of publication as the voice of the motor trades and is one of the oldest trade magazines in the nation.

There are 11 editions each year containing columns from senior officers, promotional stories about members and their businesses with emphasis on

The Professional Circle embodies training delivered by the MTAI with the philosophy of ‘the right training, in the right place and in the right way’. skills and training. Produced in-house, editor Jonathan Nash ensures it is a source for motor trades’ information, policy and advocacy news and entertainment. Jonathan too, is the editor of the Australian Tyre Dealer which is the authority on tyre industry issues. It is distributed nationally to a wide readership six times a year.

Further developing our digital marketing capacity, and the capability to support members desiring to create and benefit from this promotional technique, has been a priority. For this purpose, the MTA Queensland website has been refreshed and expanded, and an increased social media presence across the online channels of Facebook, Twitter, LinkedIn and YouTube has enhanced communication and the sharing of content with members, stakeholders and the public. This has been strengthened with the appointment of a Digital Communications Coordinator.

Together, these media platforms contribute to establishing the credentials of the Association to members, stakeholders, government agencies and the public by disseminating the views and news of our several industry sectors.

On behalf of the Board I thank editor Jonathan Nash and his team for the insightful and enjoyable automotive stories in the publications and distributing timely relevant information across our communication platforms.

Training The Association is now in its 41st year of training people for the motor trades. Commencing in 1975, basic business training courses were provided for its members and staff.

In 1997, with the deregulation of the vocational training market, the MTA Institute (MTAI) became a registered

training organisation (RTO) entering into vocational training of automotive traineeships and apprenticeships.

Since that time, the MTAI has grown to be the premier provider of automotive vocational training in Queensland.

The Professional Circle embodies training delivered by the MTAI with the philosophy of ‘the right training, in the right place and in the right way’.

Highlighting this approach, for example, the MTAI developed a new training course to help businesses familiarise themselves with hybrid vehicles. The Hybrid Electric Vehicle Introductory Course was designed specifically for automotive repairers who want to understand hybrid technology and associated safe work practices. In addition, an Advanced Hybrid Electric Vehicle Course has been introduced to the MTAI training portfolio. In an environment in which hybrid and all-electric vehicles are becoming more common, the course offers industry professionals comprehensive training in a sector of industry that will continue to grow.

The past year has seen the MTAI commence new training programs in conjunction with its full suite of accredited courses. These included training programs under the State Government’s Skilling Queenslanders for Work Initiative designed to provide skills development, training and job opportunities to unemployed, disengaged and disadvantaged Queenslanders. A new pre-vocational course called Auto Initiation was introduced under the Community Work Skills element of the Skilling Queenslanders for Work Initiative. It has been delivered by MTAI trainers in regional areas and offers automotive training in ‘life skills’ such as motivation, financial management, literacy and work placement. It provides a solid

pathway for students to enter the automotive industry. To help deliver the program to regional areas, the MTA Queensland invested in a Mobile Training Unit - a fully-equipped mobile ‘workshop’ designed to enable automotive training in any location.

Hands-on training has been enhanced by industry donors lending or providing equipment, training aids, tools and specialist vehicles. In particular, the generosity of Century Yuasa, Tony Bonanno and Suncorp is acknowledged and appreciated.

On behalf of the MTA Queensland Board, I thank the MTAI Board and General Manager Paul Kulpa for the successful delivery of a central element of our Rules which includes ‘promote and encourage all forms of education and training supportive of the development of the motor vehicle industry’.

Appreciation is extended to the current MTAI Board comprising of Chair Mr Ian Lawrence, Deputy Chair and Director Mr David Fraser, Directors Mr Alan Bonsall and Mark Brady, General Manager Training Paul Kulpa, MTAI trainers and staff for their commitment and passion to the training of students and for embedding within the MTAI a culture of respect and learning.

I acknowledge the service of former Director Steve Ghost and welcome MTA Queensland Secretary and QMID Chair Paul Peterson as a Director.

I commend General Manager Paul Kulpa’s comprehensive report to members.

President’s Ball The precedent has been set for the annual President’s Ball to be a celebration of achievement and camaraderie.

Motor Trades Association of Queensland Industrial Organisation of Employers 05

Chairman’s Report continued The MTA Queensland Board is committed to the Rules on which it was founded and has resolved to continue to apply best practice governance to all its endeavours.

In its third year, the event held on 31st October 2015 at the Hilton Brisbane, was no exception. It was hosted by Brisbane radio personality Paul Campion with speakers including Suncorp National Industry - Strategic Operations Manager Rob Barlett, Capricorn Society Head of Sales Australia Dale Durden, MTAA Super CEO Leeanne Turner and myself.

The function provided me with the platform to launch the Professional Circle. A video presentation explained the Professional Circle concept.

The highlight of the evening was the announcement of the Apprentice of the Year and the Innovation and Community Awards. Selected from a field of seven nominees, the winner of the Apprentice of the Year Award and the MTAA Super prize of $2,000 was Luke Roxburgh from Absolute Car Care in Brisbane. Congratulations to Luke and a sincere ‘thank you’ to MTAA Super for their generosity.

The MTA Queensland Community Award was presented to the Bruce Lynton Automotive Group for their generous and ongoing support to a wide range of charities and community initiatives. The MTA Queensland Innovation Award was presented to David Mohr of Chip Tyre for tyre recycling which meets all Environment Protection Authority standards.

Annual Golf Day The 67th Annual Motor Trade Golf Tournament was held on Thursday 20th October at the Nudgee Golf Club.

It is an 18-hole Stableford competition with players competing for the Motor Trade Cup. The winners received a replica of the Cup and a special trophy. On behalf of the Board, I thank members who donated trophies.

In Memoriam To all members who have experienced bereavement, we extend sincere sympathy.

Congratulations On behalf of the Association, I congratulate all members who have won prestigious awards and received recognition for business excellence.

The Future The MTA Queensland Board is committed to the Rules on which it was founded and has resolved to continue to apply best practice governance to all its endeavors. For 87 years, at one time or another, these core principles have been the beacon for motor trades’ employers to prevail through diversities such as ‘the great depression’, a world war, credit restrictions of the 20th century, a global financial crisis, several severe climatic catastrophes and great technological change. Central to our belief is entrepreneurialism and a culture of service to our customers and the general public now expressed in the Professional Circle.

The Association’s challenge is to prepare for, and adapt to, on-going changes in the motor trades that inevitably will occur during this century, provide high quality advocacy on behalf of members, consolidate our position as Queensland’s peak motor trades organisation and provide the leadership to fulfill the Object of our Rules.

I commend this report to members.

David Fraser Chairman, MTA Queensland

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Secretary’s Report . . . during 2016/17, the focus will be on building the membership and expanding the Association’s commercial activities and offerings.

The financial accounts, as presented, were audited by BDO Audit Pty Ltd.

Financial Results 30th June 2016 Deficit attributable to members of the Organisation Paul Peterson Secretary MTA Queensland

This year’s deficit attributable to members of the organisation was $621,913. This was due to the decrease in revenue of more than 8 per cent.

Significant operating income changes during 2016 compared to 2015 were: • Grant income of $632,428. The grant in the previous year represented the Apprenticeship Mentor program which completed in June 2015 • Training income decreased by more than 2 per cent. This was a result of a reduction in apprenticeship student numbers nationally • MTAA House dividends decreased significantly from $163,400 to $47,500 Balance Sheet The equity position of the Association remains strong at $15,181,950.

• MTA Queensland holds 19 units, of a total 115 units, in MTAA House in Canberra that has a fair value of $2,181,083. This investment currently has the consent from 83.5 per cent of Unit Holders to put the property up for sale with the minimum acceptable sale price to be set at not less than the current valuation • Investment portfolio with Dalton Nicol Reid comprising investments in ordinary shares listed on the Australian Securities Exchange. Value at the end of the reporting period was $1,335,044, an increase of 3.7 per cent. Since March 2013, the portfolio has returned approximately 11.22 per cent p.a. using the internal rate of return, not including franking credits Cashflow • The Association ran at a profit on its

operating activities, but has invested in property, plant and equipment and shares (under Investing Activities) that together amount to a sum greater than the operating cash profit. These investments were made to continue improvements that will enable the Association to deliver quality products and services to members.

General comments Significant initiatives have been developed during 2015-16 to establish wider engagement with the automotive community. A commitment to the concept of the Professional Circle and the development of strong and growing communication with members, industry and the public has seen the investment in online engagement including through the MTA Queensland website and social media avenues – begin to show solid returns.

MTA Queensland has been faced with challenges within the Vocational Education and Training industry with increased competition over the past few years from an increased number of private providers now delivering flexible delivery models within the automotive industry, as well as a decline in school leavers entering apprenticeships.

Demand for vocational education from school leavers has declined due to government making available a greater number of places for university undergraduate students. Consequently, during 2016/17, the focus will be on building the membership and expanding the Association’s commercial activities and offerings. Delivering quality services and representation to members remains at the heart of the MTA Queensland’s strategy and vision.

I would like to thank all the members for their support and look forward to this continuing for many years to come.

Paul Peterson Secretary, MTA Queensland

Motor Trades Association of Queensland Industrial Organisation of Employers 07

Group Chief Executive’s Report My initial focus has been to establish the platform from which to advance the benchmarks of advocacy, services, support, training and innovation in the best interests of our members.

Brett Dale Chief Executive Officer MTA Queensland

The Motor Trades Association of Queensland Board appointed me to the role of Group Chief Executive in May 2016. It has been an honour to return to the MTA Queensland to implement the Board’s decisions and policies, provide the leadership to the corporate office and to serve the membership of all our divisional groups.

Although a short partnership and tenure to date, the team and I have hit the ground running. My initial focus has been to establish the platform from which to advance the benchmarks of advocacy, services, support, training and innovation in the best interests of our members.

This has required a multifaceted approach built on collaboration, inclusiveness, professionalism and trust with staff, members and the broad range of stakeholders.

Increasingly and consultatively I initiated: • Staff engagement mechanisms; • Interactions with Divisional Chairs; • The procedures to implement the Group’s 2016-18 Strategic Plan; • The membership growth strategy; • The advocacy actions to raise the profile of the Association: »» within the retail, service and repair sectors of the motor trades; »» with local and interstate stakeholders; and »» with political representatives at local, state and federal levels through communications and direct engagement; • The implementation of effective corporate governance arrangements for relationships, systems and processes to ensure compliance with the Association’s rules. This includes reviewing corporate risk, occupational health and safety, and member engagement strategies; • The activity schedule for the 2016-17 financial year;

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• The establishment of a business development team to promote and grow the MTA Queensland and the Professional Circle; • Cooperation with interstate Motor Trades Associations to establish a national collaborative arrangement; and • Negotiations on training programs with federal and state training entities.

To implement these across the Group, and to achieve positive outcomes, relies on the professionalism and goodwill within the corporate office. I thank General Managers Kellie Dewar and Paul Kulpa, CFO Kathy Winkcup and all staff for their courtesies to me during a period of significant management change, for their willingness to respond to new goals and to enthusiastically advance the MTA Queensland Group.

The motor trades and the economy Those of you who have followed my column in Motor Trader magazine in recent months will have noted my interest in the economy and its impact on the motor trades. Indeed, in several reports from the MTA Queensland divisional chairs, they indicate differing business circumstances. Some express ‘a positive trading year’, including significant membership growth, whilst others experienced ‘patchy/varied trading conditions’ with a limited increase in new personnel and static renewals including business closures.

Although business volatility prevailed, there was optimism particularly with ‘the Professional Circle championing the MTA Queensland members’ high industry standards for workmanship.’

Consistent themes were identified

by Chairs as impacting on their businesses in the past financial year. These comprised challenging

Members have embraced the Professional Circle, recognising the marketing advantage of being ‘in the circle’ with the associated branding in their workplace and office. government policies, the long lead-up to the federal election; the appreciating Australian dollar; fluctuating consumer confidence; the transition to a services and broader based economy after the resources boom with the consequential impacts on regional businesses and communities, and regulatory obligations.

The economic message from the membership is that to progress and be profitable, business needs an economic, industrial and financial environment that provides certainty, enabling confidence to invest, expand, maintain and create the jobs of the future.

The MTA Queensland’s purpose is to deliver the services and policies to members for their businesses to prosper and meet ‘change’ with knowledge and confidence. To assist the membership with their businesses, the MTA Queensland drew on its core principles of ‘trust and professionalism’, which is at the heart of its philosophy and culture, to establish the Professional Circle.

Underpinning it are the 10 commitments which act as vital credentials to the public on the professionalism and trustworthiness of the motor trade with which they transact business.

These are: Honesty; Professionalism; Transparency; Courtesy; Integrity; Care; Clarity; Proactivity; Accountability and Compliance.

The economic outlook for the coming financial year depends on whether the ‘glass is half full or half empty’.

Corporate Partners Dun and Bradstreet (D&B) produce and circulate the Business Expectations Survey. In its final quarter for 2016 edition, it stated that 54.2 per cent of businesses are more optimistic about growth in the next 12 months compared to 2015, while 34.1 per cent are less optimistic and 11.8 per cent are undecided. In the year ahead, 15.4 per cent of businesses see weak demand for their products and services as the biggest barrier to growth, while 13.2 per cent see utilities and operational costs as the biggest barrier.

For all members, I trust your economic outlook is more than ‘a glass half full’ and that 2016-17 is a year of certainty, confidence and prosperity.

I undertake to concentrate our efforts on promoting the benefits of our members’ businesses to consumers through the Professional Circle campaign.

I thank the Board for entrusting me with the role of Group Chief Executive which I undertake with enthusiasm and diligence in the best interests of the MTA Queensland membership.

Dr Brett Dale DBA Chief Executive Officer, MTA Queensland

Members have embraced the Professional Circle, recognising the marketing advantage of being ‘in the Circle’ with the associated branding in their workplace and office. Your business is not only part of the Professional Circle but a key contributor to the automotive value chain. To put that into perspective, there are some 13,000 automotive value chain businesses, employing more than 90,000 people, generating in excess of $14.5 billion annually.

Motor Trades Association of Queensland Industrial Organisation of Employers 09

Member Services and Support Advocacy requires substance and patience. In the past year there have been policy achievements at both Commonwealth and state levels in which we can take pride and highlight.

Advocacy

Kellie Dewar General Manager MTA Queensland

Our approach to advocacy and policy work has always been about being consistent with beliefs and positions and engaging in the process with all levels of government. The MTA Queensland has been very successful with its advocacy and members can take pride in the achievements that have been to the advantage of their business operations.

The content of our submissions was quoted in part in two separate reports.

The first was in the Queensland Parliamentary Finance and Administration Committee report relating to the Workers’ Compensation and Rehabilitation and Other Legislation Amendment Bill 2015. The second was in the Senate Economics Legislation Committee report on the Treasury Legislation Amendment (Small Business and Unfair Contract Bill 2015) Provisions.

Advocacy requires substance and patience. In the past year, there have been policy achievements at both Commonwealth and state levels in which we can take pride and highlight.

A long term strategic policy goal from the commencement of the Australian Consumer Law process has been to extend unfair contract term protections to small business. After seven years of advocacy, the standard form contracts for unfair contract terms for contracts entered into or renewed on or after 12 November 2016 comes into effect.

The second relates to reform of S46 (misuse of market power) of the Australian Competition and Consumer Act. In several submissions, our policy position has been for an ‘effects test’ as the determinant of the misuse of market power. The Bill to implement this measure is in the consultation process and the trust is that it receives the necessary support to pass both Houses and become law. This policy, from our perspective, will increase the capacity

10 Motor Trades Association of Queensland Industrial Organisation of Employers

of automotive industries such as smash repair, retailing and service parts to engage in competition on their own merits and provide enhanced consumer choice.

At the state level, important to achieving outcomes for the membership are the constructive working partnerships with the Office of Fair Trading (OFT), the Department of Transport and Main Roads (TMR) and the Department of Energy and Water Supply (DEW).

Through collaboration with TMR Officers, a resolution to motorcycle brake testing to the benefit of all parties was achieved. Equally, by working with the OFT, positive outcomes were achieved for the Automotive Remarketing Division.

Sharing data with the OFT from the Association’s ‘Dob in a backyarder’ website enabled Fair Trading officers to identify locations where it was suspected that illegal activities were taking place.

Over the course of the operation, 32 businesses were identified as trading illegally and compliance action was taken against them.

Advocacy and policy work is about the medium and longer term goals and we have been contributing to some policy agendas over many years - some spanning over a decade and others in shorter bursts. The latter has been the case with the Biofuels Mandate over the last 12 months. As detailed in the SSCSAQ Chairman’s Report, we have made five submissions and participated in seven meetings and other stakeholder engagement activities since the last Annual Chairman’s Report.

Extensive representation of member interests by the Association over the last 12 months are detailed below: Letters • Congratulations to Prime Minister Hon Malcolm Turnbull Government Ministry with portfolios relevant to the motor trades

Getting out and about to see our members is key on my calendar with visits completed in Townsville, Atherton and Cairns.

• Congratulations to Leader of the Opposition Hon Bill Shorten and Shadow Ministers with portfolios relevant to the motor trades • Congratulations to Queensland Senators and House of Representative Members on their election • Congratulations to Hon Tim Nicholls and Shadow Ministers with portfolios relevant to the motor trades • Congratulations to Hon Stirling Hinchliffe on appointment as Minster for Transport • Letter to the Member for Forde Bert Van Manen supporting his advocacy for small business tax policy • Pre-budget priorities letter to the Queensland Treasurer Hon Curtis Pitt • Pre-budget priorities letter to the Australian Treasury’s Budget Division

• Jobs Queensland Bill 2015 • Compulsory Third Party Scheme Review • Small Business and Unfair Contract Terms Bill 2015 • Australian Consumer Law Review • Workers’ Compensation and Rehabilitation and other Legislation Amendment Bill • Treasury Legislation Amendment (Small Business and Unfair Contract Bill 2015) Provisions • Discussion paper - Regulatory options for automated vehicles • Liquid Fuel Supply (Ethanol and Other Biofuels Mandate) Amendment Bill 2015 • Response to the Department of State Development’s “Queensland Biofutures 10-Year Roadmap”

• MTA Queensland Federal Election Policy Initiatives - Leaders of the major political parties

• Response to the Queensland Government’s “Toward a clean energy economy: achieving a biofuel mandate for Queensland”

• Letter to Minister for Energy, Biofuels and Water Supply concerning the petrol price summit

• Biofuels Mandate Implementation Paper 1 - Retail Threshold

Submissions • Vehicle Emissions Discussion Paper February 2016 • Advocating for small business and family enterprises • Australian Small Business and Family Enterprise Ombudsman Bill 2015 • Options to strengthen the misuse of market power • Treasury Legislation Amendment (Spring Repeal Day) Bill 2015

• Biofuels Mandate Implementation - Biofuels Mandate Exemption Guideline • Biofuels Mandate Implementation Proposed Sustainability Criteria Hearings • Lemon Laws - An Inquiry into consumer protections and remedies for buyers of new motor vehicles • Ethanol and Biofuels Mandate Fora

• Motor Accident Insurance Commission - review of the limits to apply to Compulsory Third Party premiums for quarterly assessment periods

State Government’s Inaugural Advance Queensland Innovation and Investment Summit

• Lemon Laws - An Inquiry into consumer protections and remedies for buyers of new motor vehicles

• Office of Fair Trading

Deputations • Department of Transport and Main Roads

Regional Visits Getting out and about to see our members is key on my calendar with visits completed in Townsville, Atherton and Cairns. Our next schedule highlights Hervey Bay/ Maryborough, Bundaberg, Toowoomba and the Sunshine Coast. Our corporate partners generously gave up their time to come along on our North Queensland road trip and will be joining us again for our next schedule – where available.

These meetings allow members to express their views on local industry issues, give us an opportunity to promote MTA Queensland services, activities and the advantages of being in the Professional Circle for members’ businesses, and allow our corporate partners to promote their services.

We will keep you posted through my Viewpoint column in Motor Trader on the development of our visit schedule so be sure to check when we might be in your area and come and say hello.

We’d love to see you there.

Communication In addition to calling on our members face to face, we rely on many different forms of communication, including my Viewpoint column. To ensure these are working effectively, please ensure we have the correct contact details for your business - especially email addresses. The best contact point is someone who is across the operation and can distribute relevant information to the right person in the business.

Liaison with members in the field is the responsibility of divisional executives Colin Fitzpatrick (Tweed to the Brisbane Rivers and the Western areas), Ian Cole (Brisbane River north side to Bundaberg) and Andy O’Hearn (Gladstone to Cape York).

Motor Trades Association of Queensland Industrial Organisation of Employers 11

Member Services and Support continued Three significant initiatives implemented over the past 12 months have been the Professional Circle, the Customer Service Management (CRM) system, and communications expansion to include the full social media suite.

The divisional executives provide advice from their field contacts into the several motor trades’ divisions.

half of Australian businesses missing out on the potential business that can be generated through online avenues.

Significant initiatives

The MTA Queensland has embraced these opportunities, transforming how it communicates and engages with members, the industry and the public.

Through channels including Facebook, Twitter, YouTube and LinkedIn, we can now instantly let you know of industry updates, industrial relations news, new courses available through the MTA Institute and of the successes and achievements of members and apprentices.

Three significant initiatives implemented over the past 12 months have been the Professional Circle, the Customer Service Management (CRM) system, and communications expansion to include the full social media suite. The CRM involved a holistic change to our administrative and communications tasks. The Professional Circle continues to evolve as we connect consumers with the concept and benefits of dealing with a member they can trust that is ‘inside the Circle’. The Professional Circle represents the benchmark of industry standards and embraces all things that make a difference to everyone dealing with a business in the motor trades. Ensure you prominently display the Professional Circle material to provide a clear distinction that you are an MTA Queensland member who is ‘inside the Circle’.

Social Media We are in a period of great change when it comes to how we communicate with each other.

According to the Australian Bureau of Statistics (ABS), 86 per cent of households in Australia have access to the internet and, on average, people spend 10 hours a week of their personal time online. And yet, though these statistics would seem to make it obvious that every business would be more profitable if it were to have an online presence, figures suggest this opportunity is being missed by many.

The ABS reports that 98.4 per cent of businesses had internet access but only 48.6 per cent had a web presence and a mere 34 per cent had a social media presence. That translates to more than

These channels also allow us to promote members’ businesses and the response to our presence in the social media arena has been very positive – the number of people ‘liking’ the MTA Queensland Facebook page has increased more than 350 per cent in the past six months.

The MTA Queensland is your Association, representing you, and there is nothing we want to do more than to share your stories with our online audience. An example of just how far the content we promote can reach is a Facebook post announcing one of MTAI’s apprentices being awarded the Ulysess Club Australia Apprentice of the Year Award for the Qld/NT zone.

Just one Facebook post showcasing this fantastic achievement reached more than 2,900 people across the state.

This is the type of news and content that the Association strives to promote - news that is positive, keeps the future generation of our industry involved and engaged, and spreads the word to the public that the automotive industry offers credible, value-added and fantastic career opportunities for people of all ages.

Social media, websites and the internet’s ability to connect your

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business with a vast audience is here to stay and the MTA Queensland can help you to promote your business in this digital domain. For those of you who have yet to do so, now it the time to get online and embrace this opportunity.

Industry guides Personal Property Securities Register The Australian Financial Security Authority has released an important, helpful and useful guide to the Personal Property and Securities Register (PPSR). The guide points out that ‘Personal Property’ translates to ‘Goods/Assets’ and ‘Securities Register’ to ‘Debt’. It is intended to help businesses not familiar with the practical implications of the PPSR and explains how businesses might benefit from using the national online system.

The guide is on our website and also may be accessed at www.ppsr.gov.au.

Guidance on the Uncollected Goods Act The Disposal of Uncollected Goods Act 1967 (“the Act”) prescribes how and when the disposal of uncollected goods can occur and what must be done if there is a dispute about the return of the goods. Any goods that are accepted in the course of business for inspection, custody, storage, repair or other treatment, and intended to be re-delivered may, if uncollected, be sold under the provisions of the Act. Of particular importance to motor traders are the special provisions in the Act applicable to the disposal of uncollected motor vehicles.

Our Legal Partners, Bennet and Philp, developed a guide to the Act for motor traders, and it is available to our members for reference. Please contact us for a copy.

Our divisional committees go to the heart of our structure. Specifically, their role is established in the MTA Queensland constitution which is to ‘more effectively implement the Objects of MTA Queensland’.

SCAMS: What you need to know about scams targeting small business Scams that target small business are becoming increasingly sophisticated and scammers will go to great lengths to convince you that the documents they send, or the offers they make, are legitimate and genuine. However, it’s easy to copy or modify letterheads, names and logos to make them look real, and it’s simple to create phony websites, use fake credit cards or cheques and obtain business details such as your name and address through public listings or from your website. You can protect yourself and your business by being aware of the common scams targeting small businesses.

to national, state and territory consumer protection agencies Motor vehicle sales & repairs an Industry Guide to the Australian Consumer Law This guide provides information on the ACL for the motorcar and motorcycle sales and repair industries.

It covers issues where industry bodies have requested more detailed guidance and where consumers have frequently reported to national, state and territory consumer protection agencies.

This information will be relevant to: • licensed motor vehicle traders (including of cars and motorcycles) • mechanics and repair shops

Guidance on the Australian Consumer Law (ACL)

• motor vehicle manufacturers

Over time we have issued information on many resources relating to the ACL and I am providing the following as a quick reference list.

Guides for businesses and legal practitioners can be found on the ACCC’s business page, specifically:

National guidance on aspects of the ACL has been developed and is updated by the Australian Competition and Consumer Commission (ACCC), the state and territory consumer protection agencies, and, in relation to financial services, the Australian Securities and Investments Commission (ASIC).

• consumer guarantees

Rental Vehicle Industry – an Industry Guide to the Australian Consumer Law This guide provides information on the ACL for car rental businesses.

It covers key aspects of the law such as contract terms, deposits and refunds, focusing on issues where: • industry bodies have requested more detailed guidance for business • consumers frequently report problems

• motor vehicle industry associations

• unfair contract terms • consumer product safety • sales practices • avoiding unfair business practices

Industry Divisions Our Divisional Committees go to the heart of our structure. Specifically, their role is established in the MTA Queensland constitution which is to ‘more effectively implement the Objects of MTA Queensland’. In a nutshell, these are to promote, advocate and protect the interests of employers and the motor trades and promote and encourage all forms of education and training to develop the sector.

For the MTA Queensland to be an effective advocate to all levels of government on behalf of the

membership, industry divisions are vital for the substance and quality of the dialogue. Ideally, the membership should be diverse and effective in providing the foras for the voicing of views and issues for resolution or advocacy. Over the longer term, the industry divisions form the nucleus from which future industry leaders emerge.

At present, some industry divisions have casual vacancies which need to be filled in the best interest of the sector.

I encourage members to consider serving on industry committees and contribute to the strategic thinking and leadership on industry policy positions.

The MTA Queensland’s advocacy is reliant on the diversity and competency of views emanating from its industry divisions.

Teleconferencing infrastructure continues to provide members with immediate access to meetings and discussions. This ensures that any member, regardless of location in our decentralised state, can engage in divisional meetings.

Corporate Partners Our corporate partners are integral to the spread of additional benefits to members and I thank them for their ongoing support to the MTA Queensland and acknowledge: • MTAA Superannuation – our superannuation partner • Capricorn Society Limited – offering services that include access to a huge network of suppliers, instant credit equipment finance and much more • Commonwealth Bank – offering members some of the lowest EFTPOS charges and other benefits • Dun and Bradstreet – the nation’s foremost credit control and debt collection agency

Motor Trades Association of Queensland Industrial Organisation of Employers 13

Member Services and Support continued

• Guard Insurance – specialists in insurance and risk management solutions • Our Auto Tech-Centre – access to the largest technical library in the southern hemisphere • Our Auto Digital – for all your website requirements • Australian All Energy Solutions – specialists in installation of solar systems • Bennet and Philp – for legal advice

Membership Team I take the opportunity to highlight the professional contribution of all staff at MTA Queensland to support our members. All staff underwent extensive training for the new CRM system and I thank them for mastering the required skills. This system will improve, monitor and measure our activity, service and interactions with members to ensure it is of a consistently high standard.

Sincere thanks to MTA Queensland Chairman David Fraser, Committee Chairmen, and Committee and Board members for their leadership, valued input and professional approach to representing their respective divisions and districts.

Kellie Dewar General Manager, MTA Queensland

14 Motor Trades Association of Queensland Industrial Organisation of Employers

Unfortunately, the federal electoral turmoil that we have experienced over the last 12 months has also meant that much needed legislative changes to the Fair Work Act have not been addressed.

Ted Kowalski Manager Industrial Relations MTA Queensland

Four-year review of Modern Awards

Redundancies and Unfair Dismissal Claims

The Fair Work Commission continues its four-year review of Modern Awards.

This process commenced in mid-2014.

The two primary awards that apply to the motor industry – the Vehicle Manufacturing Repair Services and Retail Award and the Clerks Private Sector Award – have had some changes made as a result of the review but their finalisation appears to be unlikely until the first quarter of 2017

The last 12 months have seen a significant number of members seeking advice on handling redundancies brought about by a drop-off in work. Regional centres have been affected by the closure of mines while many metropolitan members have also seen reduced business necessitating keeping staff numbers at minimum viable levels.

The Fair Work system, which we were told at its introduction in 2010 would be so simple that businesses would no longer need to seek the advice of lawyers to determine its requirements, has proven to be rather more complex and in need of modification than originally thought. Unfortunately, the federal electoral turmoil that we have experienced over the last 12 months has also meant that much needed legislative changes to the Fair Work Act have not been addressed. We can only hope that the coming year will bring some resolution of the outstanding matters so that businesses can expect a period of stability and certainty.

Setting of Annual National Award Wage rates The Fair Work Commission continues to conduct its annual wage reviews - a process that commences in late September and runs to late May of the following year. This year saw a 2.4 per cent across-the-board increase to all adult award rates - which applied from the 1st July 2016. This was a marginal drop from the 2.5 per cent increase that been awarded in 2015. The annual reviews have seen the tradesman’s rate go from $17.46/hr from 1st July 2010 to $20.61/hr from 1st July 2016. This represents an 18 per cent increase in the award rate over that time.

Unfair dismissal claims have been, thankfully, less prevalent this year and every matter in which we have assisted members has been settled at the informal conference stage.

Courses MTA Queensland runs regular courses throughout the state on topics that cover: • Understanding The Fair Work Awards applicable to the motor industry and the National Employment Standards • Employment record keeping obligations • Handling a dismissal – correct process for termination and how to handle a claim that has been lodged • What to do about workplace bullying, harassment and discrimination • Employer Workplace Health and Safety obligations Material on all the above topics is available in the members-only portal on the MTA Queensland website.

Approved Governance and Financial Management Training The Association has complied with the Fair Work Registered Organisations Act requirement that Board members and officers undergo approved training in governance and financial management. Previously, the MTA Queensland had to rely on external

Motor Trades Association of Queensland Industrial Organisation of Employers 15

Member Services and Support continued

service providers for this training.

A specific program has been instituted that can be accessed by new Board members and can be provided to other Registered Organisations.

Deregistration of State Association The MTA Queensland has been representing its members, and the motor industry, for more than seven decades. For the greater part of that time the majority of its members were covered by state awards and, consequently, most of its work was conducted through the state industrial relations system.

With the advent of the Work Choices and then the Fair Work system, all members are now in the federal industrial relations system. Currently, the Association has registration as an employer organisation under both the Queensland and federal industrial legislation. There is no longer a necessity for the Association to retain its state registration. In fact, having registration in both the state and federal systems is unnecessarily cumbersome and time consuming – two sets of rules need to be maintained as well as ensuring that all activities meet the often different requirements of state and federal industrial laws.

The Queensland Industrial Relations Act allows a state-registered employer organisation to seek deregistration as long as a certain process is followed.

We are now in the final stage of making our application for deregistration.

We sincerely thank all members who registered their vote. This forms a key part of the application process as the Full Bench needs to be satisfied that the majority of members have agreed.

Ted Kowalski Industrial Relations Manager, MTA Queensland 16 Motor Trades Association of Queensland Industrial Organisation of Employers

Australian Automotive Dealer Association (Qld) For all issues regarding local and state-based legislation, it is the MTA Queensland that represents your interests.

Garth Madill Chairman Australian Automotive Dealer Association (Qld)

I encourage everyone to give continued support to the Motor Trades Association of Queensland (MTA Queensland) and to share with other dealers the great benefits of membership. The value offered to new car dealers is exceptional: whether it is access to the industrial relations advice given by Ted Kowalski and Paul Murray, representation through advocacy, or keeping us up to date with changes in our industry, membership of MTA Queensland offers peace of mind.

For all issues regarding local and state-based legislation, it is the MTA Queensland that represents your interests. The Association complements the advocacy work being delivered by the Australian Automotive Dealer Association (AADA) national body with their own representations and submissions.

I suggest that if you haven’t taken the opportunity, you access the submissions on the MTA Queensland website as there are many that impact our industry directly including Lemon Laws, Australian Consumer Law, Motor Accident Insurance Commission – CTP review, Worker’s Compensation and Rehabilitation, Automated Vehicles and more. The detail and quality of the submissions reflect MTA Queensland’s capability to represent our industry effectively. In addition to a written submission, the MTA Queensland represented our division as a witness at the Parliamentary hearing on Lemon Laws.

I would like to thank Kellie Dewar and her team for their incredible assistance during the year, and also thank the Board for their commitment to making our industry a better one.

The past year has been a continual consolidation of our national body, AADA, as it grows from strength to strength and receives recognition from

the dealer network, government and manufacturers. It is very comforting for dealers to know their concerns and issues on a national level are being handled by some of the most experienced dealers in Australia.

For those achievements to date, I compliment them and thank them for their strong representation.

I would like to thank Geoff Pickering for his time on the national board and wish Mark Woelders the best as Geoff’s replacement as AADA Queensland’s representative. I would like to offer our support to Ian Field on his nomination for re-election by the sitting Board.

I would encourage all dealers to read their Motor Trader and Automotive Dealer magazines to keep abreast of the ongoing issues facing the industry and the progress AADA and MTA Queensland are making in addressing those issues, e.g.

• ASIC Review of F&I Income • Office of Fair Trading “Lemon Laws” • Parallel Imports – by no means dead yet • Australian Consumer Tax Review • Luxury Car Tax Exemption There are many more issues that are currently impacting motor dealers and issues that are potential threats in the future.

Also, congratulations to Len Daddow for his MTA Queensland life membership honour in recognition of his involvement with AADA (Qld) and MTA Queensland.

Good on you Len. I welcome James Sturges as the incoming Chairman for AADA (Qld) and look forward to supporting him and the Industry in my role as Vice Chairman.

Finally, I would like to encourage other dealers to get involved with MTA Queensland through AADA (Qld).

Motor Trades Association of Queensland Industrial Organisation of Employers 17

Australian Automotive Dealer Association continued

The committee plays an important role in shaping the future of the industry.

The AADA (Qld) Committee will have an upcoming casual vacancy and I encourage all of you to consider nominating for this position. Remember, it is your business and your future that MTA Queensland represents and I encourage you to be part of the process in any way you can.

Garth Madill Chairman, AADA (Qld)

18 Motor Trades Association of Queensland Industrial Organisation of Employers

Automotive Engineers Division To be a leader, you need to have the vision and the ability to adapt and innovate. Doing this will allow you to ride the wave of change instead of being left behind to play catch-up whilst others are reaping the benefits.

2016 has been a very positive year for the Automotive Engineers Division (AED), the committee and the division’s members.

Mark Dodge Chairman Automotive Engineers Division

New and reinvigorated members of the AED have helped to create an air of confidence and enthusiasm and the effect of this is creating improved communication and realistic expectation amongst members of the division as to the services available and offered.

Ours is a constantly evolving industry and it never ceases to amaze me the speed that automotive technology changes. With this speed of change comes the need for revised and updated data and we are very fortunate that, as members of the MTA Queensland, we have access to Russell Sticklen and what appears to be a never-ending source of technical information.

We need to be aware of the changes to our industry and adapt to them. To be a leader, you need to have the vision and the ability to adapt and innovate. Doing this will allow you to ride the wave of change instead of being left behind to play catch-up whilst others are reaping the benefits.

The resources industry is still winding down, resulting in tradespeople both returning to towns and cities looking for work and leaving communities because they are unable to find work.

When people are unsettled they do not spend money. Given one of the longest lead-ups to a federal election has just passed, I would now hope to see a period of stability and growth within our economy that will encourage spending.

Confidence builds confidence.

is an investment - an investment not only in your future but our industry as a whole, and we need to be constantly training to be able to accommodate the requirements for skilled technicians in our evolving industry.

Your customers are, of course, an integral part of your business. Without them, you don’t have a business.

As a service provider we need to understand that, thanks to the internet and the growth of social media, the consumers’ expectations are higher now than a decade ago. It is important that, as a service provider, we not only meet but exceed our customer expectations. This can be achieved by good communication - something as simple as a follow-up phone call to ask about their experience. It is important to remember that should a customer use the services of another repairer, that repairer did not necessarily take your customer, it may be that you lost that customer. Food for thought.

With the assistance of Ian Cole, the AED is actively seeking to engage with authorities such as the Department of Transport and Main Roads on a more regular basis.

It is important that all members understand the MTA Queensland exists as their organisation and positive input from our divisional members will see MTA Queensland go from strength to strength.

Mark Dodge Chairman, AED

The automotive industry has always struggled to get a good balance of both qualified tradespeople and apprentices completing their training. An apprentice Motor Trades Association of Queensland Industrial Organisation of Employers 19

Automotive Parts Recyclers Division The Professional Circle campaign, acceptance and profile should entice any thinking business leader to want to be part of the peak body representing them in Queensland.

Lawrie Beecham Chairman Automotive Parts Recyclers Division

I accepted this role in August last year and I am honoured to represent the wonderful individuals and businesses in my industry. I have been involved with this industry for about 50 years and now more than ever I can see change will revolutionise or destroy the industry as we know it today, albeit it may take 20 years or so for that to happen. The APRD Committee will continue to focus on growing the membership base by speaking with all recycling businesses about the benefits of being a member of MTA Queensland. I believe, with the tremendous support we have had from staff at MTA Queensland, we have been relevant and pertinent to our members.

Are you aware of pressure vessel calculations to determine inspection requirements and vehicle hoists no longer needing to be registered with the Division of Workplace Health and Safety? MTA Queensland provided clarification on these as a result of them being raised at our committee meetings.

The information distributed was very comprehensive. If you wish to check your current details to ensure you are receiving all the information, then please call member services.

The Professional Circle campaign, acceptance and profile should entice any thinking business leader to want to be part of the peak body representing them in Queensland. Do not miss the opportunity to promote your business as being “in the Professional Circle” by clearly displaying the material that has been produced and using the logo on your website and business documentation.

It is totally against my grain to infer negative issues impacting us but I have noted recently the banks are starting to tighten their lending criteria and this augurs for some restraint and careful planning with business infrastructure and finances.

20 Motor Trades Association of Queensland Industrial Organisation of Employers

Automotive recycling companies are an important source of salvaged car parts for consumers, providing them with a significantly more affordable alternative to new parts. Likewise, selling scrap metal from end-of-life vehicles (ELV) has historically been a good support business. However, today’s lower scrap prices have spurred reduced scrap volume. I have always advocated that legitimate automotive recyclers should never rely on scrap value but use it as a bonus when values are up.

I am currently contributing information to a project to analyse the costs associated with legitimate processing of ELVs. The aim is to determine some benchmark figures reflecting the approximate true costs associated with dismantling any vehicle.

I also see the influence that advancement in autonomous vehicles has had and which may well create one of the biggest issues for our industry.

Along with this technology advancement is the ability for the vehicle to assess its own damage after an accident and to forward the parts supply quote directly to the manufacturer or manufacturer’s supplier, by-passing the automotive recyclers inventory and removing them from the supply chain. It could just as easily, of course, be the radiator or glass or repair industry. Businesses need to continue to develop innovative ways to adapt to a constantly changing market and economic environment.

This applies to all businesses, big and small.

Effective representation, advocacy and support that our own industry deserves and requires must be done with a whole-of-industry approach which is exactly what the MTA Queensland does.

The APRD committee is committed to keeping you informed of relevant industry topics (be they good or bad), current and proposed legislation, news

We know change is the only constant in business and you cannot grow and adapt if you are not recognising those factors that are impacting on your business, your lifestyle, profitability and market relevance. items, conferences, training and any topic that may support or have an impact upon your chosen automotive recycling ventures.

Reports from the sector are quite varied with the specialist type entities suggesting increased enquiries, sales and growth, and many of the smaller operators claiming a decline.

Where customers have choice they look for high quality, good product knowledge, range and service so make sure your business sets and maintains these high standards.

This may not be considered positive to industry growth and profitability but it is a timely reminder to be on your game and participate in seminars, training and YOUR industry association to remain abreast and aware of changes.

We know change is the only constant in business and you cannot grow and adapt if you are not recognising those factors that are impacting on your business, your lifestyle, profitability and market relevance.

Lawrie Beecham Chairman, APRD

Profitability seems to be down but many operators seem reluctant to give out information in this area. Personally, I believe there are myriad factors that can and do influence this, such as: • Some entities openly displaying prices on the internet • Advancement of technology: Electronic Roll Mitigation, Adaptive Cruise Control, Lane Avoidance Technology, Automatic Vehicle Location Data, On Board Diagnostics, ABS, Forward Collision Warning, Rear View Camera, Electronic Stability Control, Trailer Sway Control, Vehicle Monitoring System (Tyre Pressures) and Traction Control to name a few • E-call: protocols to access SRS deployment and GPS location (via Smart Phones) • Autonomous vehicles • Manufacturers declaring use of recycled parts puts you and your safety at risk • Increased industry sector involvement of minor entities importing cheap product from China and selling via the internet in an environment that is not a level playing field • Easier importing/exporting protocols by overseas parts suppliers • Carsales.com.au moving into parts selling Motor Trades Association of Queensland Industrial Organisation of Employers 21

Engine Reconditioners Association of Queensland The ERAQ Committee understands and appreciates that our members are based throughout Queensland and has been discussing ways we can increase member participation either through technology or in person.

Member participation

Mark Bryers Chairman Engine Reconditioners Association of Queensland

This year has seen the ERAQ have four meetings: two meetings at the Motor Trades Association of Queensland (MTA Queensland) offices and two external meetings. It is clear members are interested and keen to attend meetings that add to their training and skill sets.

During the year, about 40 members and staff visited MTQ Engine Systems for a trade night where they were shown aspects of the business ranging from fuel pump injectors to turbo charging.

There was a display installed and staff were available to address attendees regarding their fuel program and diagnostics for injector and turbo failures. We also had more than 50 members and staff attend the KRE Engines night. KRE build race engines for sprint cars and V8 Supercars teams such as Red Bull. Ken and the staff showed the attendees all the elements and techniques of how they build race engines and also ran one of the V8 engines on the dyno.

The ERAQ Committee understands our members are based throughout Queensland and has been discussing ways we can increase member participation either through technology or in person. If you have any ideas on how to make this a reality, please let us know.

Change to ERAQ By-Laws The MTA Queensland Board approved our request to change the criteria for membership to the ERAQ. The change was voted on at our Annual General Meeting held on 31st August 2016 and was carried unanimously to be effective immediately.

ERAQ, as a division of MTA Queensland, has an equipment list requirement as part of their existing membership eligibility criteria. This requirement is a by-law of the ERAQ division so an 22 Motor Trades Association of Queensland Industrial Organisation of Employers

application is declined if the applicant is unable to meet the set criteria.

After recent assessment of the criteria, the division’s committee agreed the by-law should be removed so that anyone who makes their livelihood working with engines can be a member of the ERAQ. The by-law will be replaced with a simple checklist to identify the sector of the industry the applicant represents and to confirm this fits with the scope of the division. The change will not be implemented as a by-law which means there will be no restrictions on amendment of the list at any future point.

This will allow the ERAQ to have members from associated businesses that help or support our industry. These would include businesses such as engine assemblers and fuel, turbo, performance and parts suppliers.

In my last report, I referenced information on consumers supplying parts and the implications of this to industry.

This is a topic that continues to be raised. If a problem arises with a part supplied by the consumer and fitted by your business, under the Australian Consumer Law (ACL) the customer may have the right to a remedy from either the manufacturer or retailer of the part. If a problem arises as a result of installation of the part by your business, the customer may have the right to a remedy from your business. All suppliers guarantee that services are provided with due skill and care. This means, as a business, you must use an appropriate level of skill or knowledge based on your technical ability when providing services (including fitment) to avoid damage or loss. This may include advising the customer of the risks associated with installing an inferior part or that the part is not suitable for their purpose.

The committee looks forward to growing the membership, increasing participation and being a united voice for our industry.

Mark Bryers Chairman, ERAQ

National Auto Collision Alliance The NACA Committee is involved in member needs for policy, shop grading and aspects of collision repair training through the MTA Institute (MTAI).

Thank you for the opportunity to present this 2016 National Auto Collision Alliance (NACA) AGM Chairman Report. The NACA has approximately 180 collision repair members in 19 locations and the division is growing.

Steve Eaton Chairman National Auto Collision Alliance

The NACA Committee, along with the Motor Trades Association of Queensland (MTA Queensland) General Manager Kellie Dewar and MTA Queensland staff, work hard to help and assist members and their associates.

NACA has various working relationships with other MTAs and national bodies.

The NACA Committee is involved in member needs for policy, shop grading and aspects of collision repair training through the MTA Institute (MTAI). All committee enquires and responses are directed through the MTA Queensland Member Services department. Dr Brett Dale, Group CEO of MTA Queensland, and the MTAI Board work closely with Kellie and NACA to ensure members get maximum support.

NACA newly elected Committee 2016-17 2016 NACA Committee Member Elections Results (8) Candidates Election Results: Steve Eaton Chris Manteit Andrea McCarthy Ben Chesterfield Nick Contarino Steve Davies (new elected committee member 2016) Paul Dawson (new elected committee member 2016) Antony Savva (new elected committee member 2016) Outgoing 2015-16 NACA Committee members are Roy Wackwitz, Chris Agnew and Rod Ward. I would like to thank Roy, Chris and Rod for the work they have done in 2015-16.

NACA News 2016 RACQ Repairer Shop Grading Update The process is ongoing and involves a partnership between MTA Queensland, NACA, RACQ and the Australian Motor Body Repairers Association (AMBRA) for RACQ Qld Repairers who require RACQ Shop Grading Certification.

Kellie Dewar and the MTA Queensland Member Services team have worked tirelessly with RACQ and AMBRA to roll out the first group of certified repairers. A number of shops have completed the auditing process with more expected this year. There are a total of 70 participants in the RACQ Shop Grading Program.

Other MTAs, States and National Issues Dr Brett Dale, Kellie Dewar and the NACA Committee are in various working relationships with other state MTAs and AMBRA. NACA Committee members want national representation and Dr Dale is working towards strong relationships with MTA Queensland’s national counterparts. NACA Committee member Ben Chesterfield, from Car Craft Qld, attended the recent AMBRA national meeting in Melbourne and will report back to MTA Queensland at the next NACA meeting.

NACA: Major Issues for 2016 2016 Agenda items for discussion are based around the current changes in the auto repair industry structure. These include the right to repair, accreditation, insurer network estimating programs and ‘real times, real money’ as opposed to ‘funny times and funny money’. Things have changed for all collision repairers and many independent operators are struggling.

Motor Trades Association of Queensland Industrial Organisation of Employers 23

National Auto Collision Alliance continued While autonomous car trials have begun in South Australia, the small population and size of the country will mean that Australia will be slow to adopt the infrastructure needed for fully autonomous transport.

Summary of Industry in 2016 2015-16 has seen many changes within the collision repair industry.

Less motor vehicle accident claims and safer vehicles have impacted on the amount of work available. Industry has changed the way motor vehicle repairs are managed. We now have large repair groups merging and consolidating to form mega-groups which can partner with industry leaders. Vehicle manufacturers, motor dealers, insurance companies and fleet management companies (including banks) are currently leading the automotive industry. Emerging leaders are coming from the MTAs, including MTA Queensland, and from large consolidators within the industry.

Examples of consolidators include Manufacturer Dealer Network Groups, Franchise (Independent Joint Groups), Group Multi-Site Operators (MSO) and Network Insurer Approved Repair Groups.

In Queensland, consolidation in the industry has expanded into two major groups. They are AMA Group, a listed company incorporating Gemini AU & NZ and Capital S.M.A.R.T, an insurer/bankowned group with shops in AU and NZ.

distances (leading to driving fatigue and accidents) people travel and road hazards such as wildlife – as well as the biblical weather conditions which can prevail. While autonomous car trials have begun in South Australia, the small population and size of the country will mean that Australia will be slow to adopt the infrastructure needed for fully autonomous transport.

The industry is at a crossroads with a number of directions possible which will depend on insurance industry trends, the success of affiliation groups and whether the relatively newly consolidated businesses can integrate, thrive and continue to influence market forces.

Summary I wish to thank Kellie Dewar and the MTA Queensland staff for their help and generosity over the past few years.

I look forward to working with the new NACA Committee in 2016-17 and thank the current and past committee for their assistance over the past two years.

Thank you for the opportunity to present this report.

Steve Eaton Chairman, NACA

A third, independently-owned group, Car Craft, is currently expanding to 20 shops in Queensland and 80 nationally.

Standalone independent operators are struggling to compete with the larger, stronger repairer groups.

Report from IBIS 2016 Global Focus Repair Report Australia Likely trends/developments Australia Industry consolidation will continue to gallop ahead and the number of independent repairers will decline.

While accident rates will continue to fall, repairers are slightly shielded by the older vehicle market, the vast 24 Motor Trades Association of Queensland Industrial Organisation of Employers

Queensland Farm and Industrial Machinery Dealers Division A trade-recognised Certification Level Three qualification is now available which has specifically been designed for farm machinery technicians and is a great benefit to our division.

David K Fraser, (JP Qualified) Chairman Queensland Farm and Industrial Machinery Dealers Division

Agricultural Sector

Training

The majority of Queensland’s eastern seaboard, including most farming areas, with the exception of the inner central Darling Downs, have well advanced crops and are on their way to achieve above average winter crop yields. Although the Central Darling Downs has received extremely late rain, it is unlikely that crops will break any records due to the shortened growing time.

Apprentice training remains a high priority for farm machinery dealerships.

I congratulate Paul Kulpa, General Manager for MTA Institute, in his tireless efforts for the development of a course dedicated to agricultural farm machinery service technicians.

A trade-recognised Certification Level Three qualification is now available which has specifically been designed for farm machinery technicians and is a great benefit to our division.

Strong chick pea hectare pricing contracts have seen increased farming of the legume. This, coupled with a good season, has lifted expectations for a high on farm return. This should result in maintaining agricultural machine sales at an above average level again through to the end of 2016.

Last season’s summer crops of both grain and cotton yielded well above average and returns held firm, with many farmers reporting the best year ever, in yield and farm income.

The availability of qualified diesel fitters is continuing to be good in the agricultural sector. This is a direct result of the mining and gas sector downturn over the past 12 to 18 months.

We are continuing our work in lobbying government for the supply of farm produce as aid to foreign countries in times of need, rather than cash handouts.

The QFIMDD Committee has had a successful year with many issues tabled, discussed and actioned with the assistance of MTA Queensland staff. I congratulate Kellie Dewar, General Manager for MTA Queensland, and her dedicated staff for the ongoing support to the QFIMDD members during the year.

Industrial Machinery Sector It appears the industrial machinery sector has plateaued but may be on the rise. Industrial machinery dealers are reporting increasing sales numbers of construction and earthmoving machines with the release of state government-funded road and infrastructure projects and grants. During the lull, the industrial dealers made comment that they shifted the focus of their businesses to machine parts and repair sales as it became important for business survival. Industrial dealers have also commented on the ease of finding qualified diesel fitters as a result of staff returning from the mining sectors.

MTA Queensland/MTA Institute During 2016, MTA Queensland appointed Dr Brett Dale as Group Chief Executive. Brett is well known to most dealers within the industry as he was formerly Managing Director of the MTA Institute some four years ago. Brett’s return sees the business taking on its new phase in bringing both divisions of the business, MTA Queensland Member Services and MTA Institute, under his leadership. I am sure Brett’s dedication and new leadership will see MTA Queensland appropriately positioned for our members well into the future.

Motor Trades Association of Queensland Industrial Organisation of Employers 25

Queensland Farm and Industrial Machinery Dealers Division continued

Networking Dates to remember: 1. AGM: MTA Queensland Annual General Meeting 10.00am, 28th October 2016 2. MTA Queensland Presidents Ball: The annual MTA Queensland Presidents Ball, 19th November 2016 at the Hilton Brisbane In closing, I would like to extend a thank you to the QFIMDD committee, Bruce Sommerfeld (Vice Chairman), Rob Vandersee (Secretary) and Graham Lawson (committee member) for their assistance throughout the past year. I look forward to working with the new QFIMDD committee during 2017. I am pleased to advise the only change for 2017 is the appointment of Hector McInnes as Secretary, with Rob Vandersee and Graham Lawson continuing their roles as committee members.

I also wish to extend a thank you to everyone at MTA Queensland and MTA Institute for their dedication and excellent efforts in supporting the motor industry in Queensland throughout the past year.

David K Fraser, (JP Qualified) Chairman, QFIMDD

26 Motor Trades Association of Queensland Industrial Organisation of Employers

Queensland Motorcycle Industry Division Outcomes from the licensing review are now finalised for implementation on 1st October 2016. The amendments include changes to the time each stage of a licence is to be held, as well as the training delivery and hours.

It has been a busy year for the QMID Committee and associated government activity within our industry which I have detailed in my report.

Lane splitting awareness Paul Peterson Chairman Queensland Motorcycle Industry Division

Raising awareness of changes to lane splitting was a key topic of discussion for our committee. We were pleased to see the government investing in some consumer education and awareness on these changes as we had extensive feedback that the public seemed unaware of the developments. Recent registration renewals included a flyer on lane splitting. This was a result of a suggestion raised at our QMID Committee meeting.

Mandatory Standards for Motorcycle helmets Removal of mandatory standards that limited the range of motorcycle helmets available for sale by Australian retailers was another key topic for our committee. The national standard restricted motorcycle retailers from selling helmets other than those meeting the Australian standards.

However, the same helmet could be purchased online and used on the roads.

Licensing review for Motorcycles The results of the motorcycle licensing discussion paper and accompanying online survey were released in December 2015. 1,740 responses were received.

The feedback supported changes to the motorcycle licensing system in the following areas: • Over 65 per cent support for introducing an off-road pre-learner practical training and assessment course.

• Over 60 per cent considered a minimum learner licence period important.

• Over 80 per cent considered new riders holding an RE license for at least one year before progressing to an R licence as important.

• Over 85 per cent considered a standardised Q-Ride course curriculum important and supported the course incorporating a stronger emphasis on behavioural factors and higher order skills.

Outcomes from the licensing review are now finalised for implementation on 1st October 2016. The amendments include changes to the time each stage of a licence is to be held, as well as the training delivery and hours.

Thank you to all members who took the time to provide feedback by participating in the online survey.

Requirements for AIS for brake testing motorcycles Information issued directly from the Department of Transport and Main Roads on requirements for the AIS to test and capture the ‘peak deceleration’ and either the ‘average deceleration’ or ‘ total stopping distance’ as part of the Safety Certificate caused some confusion with members.

The information certainly prompted many calls to myself and the MTA Queensland office.

On investigation, this wasn’t a change in requirement but highlighted a very low level of awareness of this requirement as part of the Safety Certificate. The immediate issue was that members, and industry in general, did not have adequate equipment to perform the tests and that the devices appeared very expensive and not suitable or practical for our industry.

Motor Trades Association of Queensland Industrial Organisation of Employers 27

Queensland Motorcycle Industry Division continued The Qld Government released its plan to improve quad bike safety - ‘The Statewide Plan for Improving Quad Bike Safety in Queensland 2016-2019’. The plan is a key initiative to raise awareness of the risks associated with quad bike use and enhance operator skill and safety.

We met with the Department of Transport and Main Roads on numerous occasions to reach a cost-effective, safe and suitable solution that would meet compliance requirements. I thank the Department for their co-operation and proactive approach to the concerns and matters we raised.

At the meeting, we took the opportunity to discuss noise emissions and motorcycle exhausts and we will continue to work with the Department of Transport and Main Roads on these issues. In the meantime, we did issue information that gives clarification around the current requirements under Vehicle Standards and Safety Certifications in relation to both topics.

Quad bike safety plan 2016-2019

information to your business.

Please check current details with MTA Queensland.

Participate in our Division Meetings All QMID members are welcome at our meetings and we have teleconference facilities available for members in regional areas.

In closing, I thank both my committee for investing their time to ensure policy and feedback are provided by our industry directly, and the MTA Queensland for their work representing us on these important issues and keeping us informed of changes.

Paul Peterson Chairman, QMID

The Queensland Government released its plan to improve quad bike safety ‘The Statewide Plan for Improving Quad Bike Safety in Queensland 2016-2019’.

The plan is a key initiative to raise awareness of the risks associated with quad bike use and enhance operator skill and safety. The plan is to focus on three key priorities: • Community education and awareness about quad bike safety risks • Improve quad bike operator safety • Government leadership in promoting quad bike safety

Communication with MTA Queensland If the above topics are not on your radar, you need to make sure you are receiving emails or keeping yourself up to date via the MTA Queensland Facebook account and website. Are you the person in your business who is the main contact, or is it your administration person or similar? This could be why you are not receiving relevant 28 Motor Trades Association of Queensland Industrial Organisation of Employers

Rental Vehicle Industry Division This prolonged period of difficult trading conditions has seen several large licensees go out of business . . . On the upside, the continuing low interest rates and fuel prices have assisted in keeping down costs.

Chris Ching Chairman Rental Vehicle Industry Division

The 2015-2016 financial year has exhibited patchy trading conditions throughout the rental car industry.

Second is the increasing emergence of the ‘car sharing’ phenomenon. This is based on two quite distinct business models.

Factors that affected profitability in 20142015 continue to play out this year.

The first involves established operators making a vehicle available to a registered pool of renters. Examples of this are Hertz 24/7 and Flexicar (also owned by Hertz). Renters can book the car in short or long increments of time to suit their needs and then use their smartphone or a personal swipe card to access the vehicle. This could be likened to the Brisbane City Council bicycle hire stands.

The system has a number of potential flaws (unreported damage being the biggest concern) but appears to be the way of the future and will need to be further refined to create a product that is suited to both the renter and the hirer.

The most obvious of these are: • Lack of consumer confidence leading to a decline in leisure spending • General downturn in the economy and reduced spending, combined with the relatively high Australian dollar, has led to a marked decrease in commercial (truck and van) rentals • State and federal governments lagging behind with infrastructure and general government expenditure • Continued decline in the resources sector and no new projects mooted to start in the immediate future. Now that the federal election has been finalised, it is to be hoped that confidence will be restored and business in general will see an upturn This prolonged period of difficult trading conditions has seen several large licensees go out of business, particularly in the areas most affected by the mining downturn.

On the upside, the continuing low interest rates and fuel prices have assisted in keeping down costs.

Several new situations are emerging which also have the potential to impact severely on the profitability of those rental companies following the traditional business model.

The first of these is the increasing dominance of third-party websites (e.g.

Vroomvroomvroom, Rental Cars.com etc.). Whilst this offers convenience and transparency of pricing to the consumer, it also involves a commission to the website taking the booking, further eroding profitability. With this in mind, the importance of the internet and social media must be addressed and mastered by all operators who wish to survive and thrive in the modern day rental market.

The second business model is the so-called ‘peer-to-peer’ sharing. This is the one that is of most concern to current legitimate rental companies and involves private individuals renting their own vehicles to another person, sometimes facilitated by a third party such as Car Next Door or Drive My Car who advertise the service and take a commission on each rental. Here we have the situation where the vehicles are highly unlikely to have the correct CTP insurance/standards of age/roadworthiness etc. In other words – the Uber of car rental. It is my intention to liaise with MTA Queensland and the necessary authorities to ensure that these companies/individuals are forced to operate on a level playing field with those of us who have made considerable investment in the industry and adhere to all government guidelines.

In closing, I would like to take this opportunity to thank both the MTA Queensland team for their tireless efforts and my fellow committee members for their input throughout the past year.

Chris Ching Chairman, RVID

Motor Trades Association of Queensland Industrial Organisation of Employers 29

Service Station and Convenience Store Association of Queensland The subject of fuel price boards has been a long-running issue with, as yet, no resolution. Both Kellie Dewar and Dr Brett Dale continue to meet with government and feel this issue may be resolved in the next 12 months.

Each year, without fail, I am surprised at the issues confronting our industry and our ability to navigate them. Indeed, the 2015/16 FY has been one of the busiest and challenging years in my 15 years as Chairman of the SSCSAQ. Tim Kane Chairman Service Station and Convenience Store Association of Queensland

Although there have been many challenges, I hope this report is able to demonstrate that through perseverance, hard work and collaboration, some of our long-running issues have been, or are well on their way to being, resolved. This report aims to reflect on the past year and update members on the challenges and successes of the SSCSAQ.

National Representation At the meeting of the SSCSAQ on the 17th February 2016, a motion was passed that a letter be drafted to the Board stating that our division believed we may be disadvantaged by not having national representation and the necessary relationships with other relevant industry bodies, and requested new arrangements be considered.

At the MTA Queensland Board meeting on the 12th May 2016, I submitted a detailed proposal for consideration that MTA Queensland commit to establishing strategic partnerships similar to other states to enhance the level of access and representation on key issues.

During this consideration, we discussed the structural changes to the Association, new appointments and the development of the Strategic Plan. In this plan, the Board ensured that greater focus be placed on the industry body’s role and responsibilities, and that a commitment be made to build on both state and national consultation and collaboration.

Since this meeting, Dr Brett Dale (MTA Queensland CEO), Ms Kellie Dewar (MTA Queensland General Manager), members of the committee and I 30 Motor Trades Association of Queensland Industrial Organisation of Employers

have vigorously pursued issues of importance to our division. At our last Board meeting, we agreed that the new focus was welcomed by the committee and that, as Chair, I would continue to provide timely feedback to the Board, committee members and the executive team to ensure our representation remains active and relevant.

Queensland Fuel Price Summit On 2 March 2016 the Queensland Government conducted the Queensland Fuel Price Summit.

The summit was called in response to fuel price data produced by the Australian Competition and Consumer Commission (ACCC) that showed petrol prices in Brisbane had been consistently higher than most other capital city markets over recent years.

The summit was chaired by the Hon. Mark Bailey MP (Minister for Main Roads, Road Safety and Ports and Minister for Energy, Water Supply and Biofuels) who explained that the Queensland Government wanted to first understand the reasons for the difference in average petrol prices and then discuss what could be done to lower these prices into the future. Unfortunately, MTA Queensland did not participate due to a human error acknowledged by the Hon Mark Bailey. The Minister provided direct feedback regarding the initiatives considered at the summit.

Fuel Price boards The subject of fuel price boards has been a long-running issue with, as yet, no resolution. Both Kellie Dewar and Dr Brett Dale continue to meet with government and feel this issue may be resolved in the next 12 months.

Underpayment of Wages We witnessed serious claims of

We have made extensive representations to government regarding the Biofuels Mandate and its impact on members. underpayment of wages to employees as well as the alleged use of illegal workers in the industry, both of which may be considered to favour financial margins in offending businesses. This was a difficult situation for government agencies as complaints from industry were considered third-party and possibly anticompetitive. The Office of Fair Trading and Fair Work Australia were not being approached by workers with complaints or evidence. This limited the level of intervention.

MTA Queensland continued to raise the issue on behalf of members and this has resulted in a new feature on the Fair Work Australia website (www.fairwork. gov.au). The feature is an anonymous tip-off service where members can provide information about businesses or individuals that may be doing the wrong thing. This is a positive step forward to addressing our long-running concerns.

I acknowledge that without the tireless efforts of Michael Carr, Vice Chairman of SSCSAQ, we may not have achieved the same results for our members. Well done Michael.

Biofuels Mandate Much work has been done regarding this issue. We have made extensive representations to government regarding the Biofuels Mandate and its impact on members. These representations include: • Submissions: »» The Liquid Fuel Supply (Ethanol and Other Biofuels Mandate) Amendment Bill »» Queensland Biofutures 10-Year Roadmap »» Biofuel Mandate Implementation Paper 1 - Retail Threshold »» Biofuels Exemption Criteria »» Biofuels Sustainability Criteria

• Meetings and other engagement: »» Divisional Executive Colin Fitzpatrick, a number of SSCSAQ committee members and I participated in a meeting held with the marketing company engaged by the government to scope a brief for a consumer education campaign on biofuels. »» Kellie Dewar and I appeared as witnesses at the public hearing on biofuels »» We attended a briefing session on consumer education for biofuels to view the finalised campaign and advertising schedule and provide feedback. We also attended public forums for consultation on biofuels »» We engaged with the Department on the Fuel Seller Register by giving members direct access to the website for user acceptance testing and to provide feedback on the reporting requirements and system »» Dr Brett Dale and Kellie Dewar met with Michael Hart Shadow Minister for Energy, Biofuels and Water Supply to discuss issues surrounding biofuels »» Dr Brett Dale, Kellie Dewar and I attended a targeted stakeholder engagement meeting with DEWS on the implementation issues of the Biofuels Mandate This effort to represent members has paid off. In August the government announced that small fuel businesses could be exempt from meeting the proposed biofuels mandate under certain conditions and the threshold for retailer liability for the mandate has been risen from 250,000 litres to 500,000 litres.

Such a result does highlight that a strong and consistent message presented to government by the MTA Queensland can bring about sensible and considered change for the benefit of everyone.

Tim Kane Chairman, SSCSAQ Motor Trades Association of Queensland Industrial Organisation of Employers 31

Tyre and Undercar Division of Queensland . . . like it or not, online tyre retailing is here to stay and you need a strategy to maximise every opportunity that comes your way from this ever-growing marketing channel.

Your committee has met three times over the 2015/2016 financial year and while we’ve covered a range of topics at each meeting it was a relatively uneventful year for the division.

John Ruddick Chairman Tyre and Undercar Division of Queensland

Our meeting in August 2015 was attended by Marcello Riotto, MTA Institute Operations Manager, who addressed the committee and requested feedback about the Institute’s objectives for the Industry Validation – Training and Assessment criteria.

Scrap tyres are an ongoing discussion point and despite the introduction of the Tyre Stewardship Australia scheme in July 2014, there are still shonky collectors. It’s disappointing to see that our government is ineffective in stopping the stockpiling of tyres by these collectors. Unfortunately, it looks more and more likely that it will take an environmental disaster before anything will be done about these operators.

The online retail tyre market has also been discussed at our meetings and continues to grow within the tyre sector.

As I mentioned in my report last year, many of our traditional ‘bricks and mortar’ businesses are struggling with the future viability of their businesses if consumers continue to shop online to buy their tyres. While I understand these concerns, and I agree that there is definitely lost revenue through the online tyre sales channel, there is also an opportunity for you to service these customers through becoming an authorised tyre fitting centre. The advantage for tyre dealers (compared to other ‘bricks and mortar’ businesses faced with competition from online sales) is that the consumer must go to a tyre service centre, or dealership, to have their tyres fitted and that’s where there is a unique opportunity. I believe that the modern tyre service centre needs to embrace the online marketing channel and that you should welcome

32 Motor Trades Association of Queensland Industrial Organisation of Employers

these consumers into your stores (as hard as that might be). This will be your opportunity to provide these customers with a level of service they can’t buy online and you can potentially acquire a lifelong customer. Let’s say that the average driver needs to replace a set of tyres every three years. That translates to potentially six opportunities to have that vehicle back into your business for various tyre checks and wheel alignments etc. That’s six more visits from a customer who would have gone somewhere else if you weren’t an authorised tyre fitting centre for an online retailer.

Don’t get me wrong, I’m not saying that you have to agree with the online retail channel but, like it or not, online tyre retailing is here to stay and you need a strategy to maximise every opportunity that comes your way from this evergrowing marketing channel.

Modifications to vehicles with Electronic Stability Control (ESC) was a topic at a recent meeting. The MTA Queensland attended a meeting at the Department of Transport and Main Roads regarding the modification of rims and tyres on vehicles that are fitted with ESC. The message from the meeting was clear businesses and consumers who modify OE wheels and/or tyres need to be very careful that these aftermarket fitments (especially on 4x4 vehicles) don’t cause any vehicle warranty issues and/ or make their ESC system inoperable or incompatible with the aftermarket fitments. To cover yourself and your business, you should check with the vehicle manufacturer to ensure any modifications you make are within the vehicle’s specifications.

After 12 years as divisional chairman, I have decided to step down and I have encouraged a tyre dealer to take the helm for your division and its members.

I would like to take this opportunity

to thank all of the existing and former committee members who have assisted me during my time as divisional chairman. I would also like to thank the fantastic team at the MTA Queensland for their support of myself and the division.

In closing, I remind all members that the MTA Queensland and this committee are here for you. I would urge all members to get involved, voice your opinion and provide feedback on the issues that are affecting your industry. This can be done directly through your divisional committee members or make contact with your divisional executive, Colin Fitzpatrick.

As always, if you would like any further information on any issues that are discussed at our committee meetings, please log onto the MTA Queensland website to view and download Member Bulletins or contact the MTA Queensland directly for a copy to be sent to you.

John Ruddick Chairman, TUDQ

Motor Trades Association of Queensland Industrial Organisation of Employers 33

Automotive Remarketing Division Repairable write-offs are recorded on the PPSR even after the restriction is removed but more work needs to be done on customer awareness so buyers are taking advantage of consumer protections available.

Michael Kennedy Chairman Automotive Remarketing Division

Our activity as a Committee centred around making government aware of our issues on an individual/business level through a targeted campaign. This was facilitated through MTA Queensland with a drafted letter to encourage and enable industry to make contact with their local Member of Parliament urging them to raise the issues with the appropriate minister and department.

Over several years the Association, on behalf of members, advocated for standalone motor dealer legislation and was pleased with what was achieved in 2014. Since then, a growing concern prevailing in the industry, on a statewide basis, is the inadequacy of the legislation to address key issues.

There were three areas of concern raised which affect the consumer, risk the investment we have made in our family business and threaten current employment in our community and the opportunities for growth now and in the future: • Licensed premises for motor dealers • Repairable write-offs and issues with quality of repair • Annual inspections I thank the members that participated in this campaign and I assure you it did get the issues raised at Department level. I know some of you received a response to your letter and I have summarised some of the information below.

• Licensed Premises: the concern is acknowledged and Office of Fair Trading (OFT) focuses considerable efforts on curbing unlicensed motor dealing and licensed dealers avoiding their disclosure or consumer protection obligations by posing as private sellers.

• Repairable write-offs are recorded on the PPSR even after the

34 Motor Trades Association of Queensland Industrial Organisation of Employers

restriction is removed but more work needs to be done on customer awareness so buyers are taking advantage of consumer protections available. We are keen to work with the Department on a review of policy on the quality of repairs for written off vehicles.

• Annual Inspections: recent studies indicate annual safety inspections on the effectiveness of mandatory inspections did not find that the benefits outweighed the costs.

Subsequent reviews of vehicle inspection schemes in some other states found there is not sufficient road safety evidence to justify the ongoing cost.

The issue that overarches each concern raised is linked to consumer education and awareness of protections and risks. The legislation that addresses these issues is quite complex for consumers under the ACL, Motor Dealer and Chattel Auctioneers Act and the PPSR. We are still finding awareness is a major concern and although we acknowledge there are facilities in place to run checks (PPSR) or gather information on your rights under warranty (ACL) it would appear that consumers are not aware or don’t understand the risks and consequences of not accessing the information.

Statutory warranty is currently under consideration, driven by an e-petition to reinstate the Class B warranty under the Motor Dealer and Chattel Auctioneers Act. As an industry, we would always like more enforcement activity on those doing the wrong thing that directly impacts our business and the reputation of our industry.

Unlicensed traders and licensed traders posing as private sellers have long been a problem for the

used car industry. They are thriving at the expense of dealers who observe the law. We believe there needs to be increased targeted resources and heavy compliance action to deter this illegal activity.

We acknowledge the efforts of the recent OFT operation that resulted in enforcement action being taken against 32 businesses trading illegally. This operation was conducted with the assistance of MTA Queensland and our ‘Dob in a Backyarder’ portal.

I encourage you to take the time to check that you are using your MTA Queensland membership to its full value including displaying the Professional Circle material. This gives you a clear point of difference and lets the public know that if they are seeking professional and high quality service they will find it with your business - an MTA Queensland member.

I thank my fellow committee members for their time and contributions. Our industry division meets quarterly and I welcome members to make contact with MTA Queensland Member Services if you would like to attend a meeting either in person or via teleconference.

Final thanks goes to the Member Services team and all the staff at MTA Queensland for the great work they do to support the automotive industry and to all members for your continued support of our industry association.

Michael Kennedy Chairman, ARD

Motor Trades Association of Queensland Industrial Organisation of Employers 35

MTA Institute MTA Institute has again achieved good results and recognition as a training provider committed to excellence and industry engagement.

Paul Kulpa General Manager MTA Institute

MTA Institute continues to maintain its position as the largest automotive private training provider in Queensland.

As at June 2016, MTA Institute had more than 30 per cent of the automotive apprenticeship market, delivering qualifications all over Queensland.

Whilst the apprenticeship system remains the industry’s preferred model of skills formation, the overall numbers have declined over recent years. However, the automotive industry continues to put apprentices and trainees into employment despite the tough economic climate for business.

MTA Institute still continues to service and support the industry through its high quality training delivery. Our overall satisfaction from learners and employers was an impressive 88 per cent. Furthermore, 86 per cent of employers agreed the quality of our trainers was excellent. Our trainers, who come directly from industry, know what it takes to make an apprentice a good tradesperson.

We have also seen the endorsement of the new AUR training package, which is the basis of all apprentice/ trainee training. This represents a critical milestone in the review of the AUR qualifications to meet the skills needs of the automotive industry. It will be our continued commitment to deliver high quality training and assessment against the new training package rules.

Operations MTA Institute remains the largest training provider to deliver on-site training in light vehicle, auto electrical, and collision repair and refinishing apprentices. This model of delivery allows employers and students the flexibility and consistency of one-on-one training to maximise learning outcomes.

36 Motor Trades Association of Queensland Industrial Organisation of Employers

We have also delivered automotive training to international students.

MTA Institute has a strong relationship with South Korea and has provided high quality training to a variety of international students to enable them to increase the depth of their automotive knowledge and transfer these newly acquired skills back home.

MTA Institute, supported by MTA Queensland, developed and implemented its Auto Initiation program. This program provided participants with the fundamental skills required to work in the automotive industry and the opportunity to gain a Certificate II in Automotive Vocational Preparation. Whilst offering comprehensive training in the basics of the automotive mechanical trade, the Auto Initiation program also provided coaching in ‘life skills’ – employability elements crucial to move successfully into full-time work.

MTA Institute deployed its new Learning Management System (LMS) for our Automotive Sales and Dealers course. This has provided an innovative approach to deliver on-line training otherwise inaccessible to regional and remote learners. The LMS development is an important step for MTA Institute as it will provide the basis for further enhancements of our flexible training delivery model.

Achievements MTA Institute has again achieved good results and recognition as a training provider committed to excellence and industry engagement. We have worked hard to expand our training products and services to ensure we contribute to the sustainability of the automotive industry. These achievements include the following in 2015/16: • MTA Institute remains on the Queensland State Government’s

The demand to fill skill shortages will continue to drive the direction of MTA Institute to ensure that industry is provided optimum training products. preferred supplier list and holds contracts for User Choice and Certificate III Guarantee.

• Issued over 400 certificates across Queensland to learners who had finalised their apprenticeship or traineeship.

• Successfully delivered Trade Recognition to over 100 learners.

This involved having learners’ skills and work experience formally assessed against industry and educational requirements for the purpose of gaining a formal trade qualification.

• Successfully delivered the Auto Initiation program to over 260 participants in Townsville, Mackay, Mt Isa, Rockhampton, Gladstone, Bundaberg, Hervey Bay, Sunshine Coast, Brisbane and Gold Coast.

• Completion of National Workforce Development Fund (NWDF) projects, including Structural Repair Skill Set for the Collision Repair industry.

The finalisation of the NWDF will see more than 70 students complete upskill training to improve their productivity in the workplace.

• Delivered the AccelR8 program to assist the transition of grade 12 students to an apprenticeship after completing their final school year.

This program aims to help successful students acquire the necessary points towards their QCE and go straight into the workforce once they have completed grade 12.

• Recognition of our apprentices through their nominations as Apprentice of the Month, culminating with the winner of the MTA Queensland Apprentice of the Year.

• Increased our non-accredited training portfolio to include training in hybrid technology, paintless dent repair and welding.

Objectives MTA Institute’s key focus is to remain flexible and responsive in order to adapt to the changing demands of industry.

The demand to fill skill shortages will continue to drive the direction of MTA Institute to ensure that industry is provided optimum training products.

We constantly monitor the changing political environment and its impact on the automotive industry. We actively advocate to government agencies to ensure they remain committed to skilling Queenslanders and in particular the automotive industry.

Governance The Board of Directors of MTA Institute ensure the strategic plan and corporate governance of MTA Institute is aligned with the Association’s expectations.

The Board of Directors over the 2015/16 financial year consisted of: • Mr Ian Lawrence - Chairman • Mr David Fraser - Deputy Chairman and Director • Mr Alan Bonsall - Director • Mr Mark Brady - Director • Mr Tom Mangan - Director I would like to take the opportunity to thank MTA Institute’s Board for their support and direction over the last 12 months.

I acknowledge the service of former director Steve Ghost and welcome MTA Secretary and QMID Chair Paul Peterson as a director.

Furthermore, a big thank you to all MTA Institute staff for their hard work and effort to continue to make us the training provider of choice for the automotive industry.

Paul Kulpa General Manager, MTA Institute Motor Trades Association of Queensland Industrial Organisation of Employers 37

Motorcontinued Trades Association of Queensland Financial Report XXXX

XXXX.

Financial Report For The Year Ended 30 June 2016

Kathy Winkcup Chief Financial Officer

Contents 39 Statement of Comprehensive Income

40 Statement of Financial Position 41 Statement of Cash Flows 42 Statement of Changes In Equity 43 Notes to and forming part of the Financial Statements 63 Declaration by Members of the Board of MTA Queensland 64 Independent Auditor’s Report 66 Accounting Officer’s Certificate 67 Certificate by Members of the Board of MTA Queensland

38 Motor Trades Association of Queensland Industrial Organisation of Employers

Statement of Comprehensive Income For the year ended 30 June 2016

Note

Revenues

2

2016 2015 $ $

9,061,310 9,887,438

EXPENSES Employee benefits expense

3

(5,789,400)

(5,985,644)

Freight and cartage

3

(48,719)

(43,401)

Depreciation and amortisation expenses

3

(472,680)

(493,447)

Commissions paid

3

(20,475)

(6,879)

Impairment expense

3

-

(474,585)

Other expenses

3

(3,301,246)

(3,558,987)

Total Expenses

(9,632,520)

(10,562,943)

PROFIT/(LOSS) BEFORE INCOME TAX INCOME TAX EXPENSE

1(b)

PROFIT/(LOSS) FOR THE YEAR

(571,210) (675,505) - (571,210) (675,505)

OTHER COMPREHENSIVE INCOME Items that may be reclassified subsequently to profit or loss Revaluation of available for sale investments

15

Total comprehensive income/(loss) for the year

(50,703)

(16,841)

(50,703) (16,841) (621,913)

(692,346)

Profit attributable to: Members of the Organisation

(571,210)

(675,505)

Total Comprehensive Income attributable to: Members of the Organisation

(621,913)

(692,346)

The accompanying notes form part of the financial report Motor Trades Association of Queensland Industrial Organisation of Employers 39

Statement of Financial Position As at 30 June 2016

Note

2016 2015 $ $

ASSETS Current assets Cash and cash equivalents

4

1,187,836

431,175

Short Term Deposit

5

754,116

1,690,019

Trade and other receivables

6

1,785,305

1,444,751

Inventories

7

104,588 91,773

Other

8

152,645 316,375

Total Current Assets

3,984,490

3,974,093

Non-current assets Intangible asset

9

1,089,861

1,079,704

Other financial assets

10

3,516,128

3,468,494

Property, plant & equipment

11

8,976,126

9,269,285

Total non-current assets

13,582,115

13,817,483

TOTAL ASSETS

17,566,605 17,791,576

LIABILITIES Current liabilities Trade and other payables

12

913,900

Provisions

13

225,910 160,519

Other liability

14

Total current liabilities

856,994

1,132,771

881,704

2,272,581

1,899,217

Non-current liabilities Provisions

13

Total non-current liabilities

112,074 88,496 112,074

88,496

TOTAL LIABILITIES

2,384,655 1,987,713

NET ASSETS

15,181,950 15,803,863

MEMBERS’ FUNDS Reserves

15

Retained Earnings

16

TOTAL MEMBERS’ FUNDS

The accompanying notes form part of the financial report 40 Motor Trades Association of Queensland Industrial Organisation of Employers

55,762 106,465 15,126,188

15,697,398

15,181,950 15,803,863

Statement of Cash Flows For the year ended 30 June 2016

Note 2016 2015 $ $ Cash Flows From Operating Activities Receipts from customers

9,738,354

9,920,200

Dividends received

47,500

51,039

Interest received

43,619

51,819

Payments to suppliers and employees

(9,751,749)

(10,282,486)

NET CASH INFLOW/(OUTFLOW) FROM OPERATING ACTIVITIES

19 (b)

77,724 (259,428)

Cash Flows From Investing Activities Proceeds from sale of property, plant and equipment

-

9,090

Proceeds from sale of investments

-

720,686

Payment for property, plant and equipment

(222,710)

(133,618)

Payments for investments

(34,256)

(757,961)

NET CASH INFLOW/(OUTFLOW) FROM INVESTING ACTIVITIES

(256,966) (161,803)

Net Increase / (Decrease) in cash and cash equivalents

(179,242)

(421,231)

Cash and cash equivalents at the beginning of the period

2,121,194

2,542,425

CASH AND CASH EQUIVALENTS AT THE END OF THE PERIOD

1,941,952 2,121,194

19 (a)

The accompanying notes form part of the financial report Motor Trades Association of Queensland Industrial Organisation of Employers 41

Statement of Changes In Equity For the year ended 30 June 2016

Note Asset Retained Total

Revaluation Earnings Reserve

$ $ $

BALANCE AT 1 JULY 2014

123,306 16,372,903 16,496,209

Comprehensive Income Net profit for the year attributable to the Members of the entity - (675,505) (675,505) Transfer of retained earnings Other comprehensive income

15

-

-

-

(16,841)

-

(16,841)

Total comprehensive income for the year attributable to the members of the entity (16,841) (675,505) (692,346) BALANCE AT 30 JUNE 2015

15,16

106,465 15,697,398 15,803,863

Comprehensive Income Net profit/ (loss) for the year attributable to the Members of the entity - (571,210) (571,210) Transfer to retained earnings Other comprehensive income

15

-

-

-

(50,703)

-

(50,703)

Total comprehensive income for the year attributable to the members of the entity (50,703) (571,210) (621,913) BALANCE AT 30 JUNE 2016

15,16

55,762 15,126,188 15,181,950

The accompanying notes form part of the financial report 42 Motor Trades Association of Queensland Industrial Organisation of Employers

Notes to and forming part of the Financial Statements For the year ended 30 June 2016

NOTE 1: STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES The financial report is a general purpose financial report that has been prepared in accordance with Accounting Standards, including Australian Accounting Interpretations and other authoritative pronouncements of the Australian Accounting Standards.

The Motor Trades Association of Queensland is a not-for-profit entity for financial reporting purposes under Australian Accounting Standards.

The financial report covers the Motor Trades Association of Queensland as an individual entity. Motor Trades Association of Queensland is a Union of Employers governed by the Industrial Relations Act 1999 within Queensland and the Fair Work (Registered Organisations) Act 2009 at a national level.

The financial report of Motor Trades Association of Queensland complies with all Australian equivalents to International Financial Reporting Standards (IFRS) in their entirety.

The following is a summary of the material accounting policies adopted by the Association in the preparation of the financial report. The accounting policies have been consistently applied, unless otherwise stated.

Basis of Preparation The accounting policies set out below have been consistently applied to all years presented.

Reporting Basis and Conventions The financial report, except for the cash flow information, has been prepared on an accruals basis and is based on historical costs modified by the revaluation of selected non-current assets, financial assets and financial liabilities for which the fair value basis of accounting has been applied. The amounts presented in the financial statements are presented in AUD and have been rounded to the nearest dollar.

Accounting Policies a. Associated Entities Motor Trades Association of Queensland owns and controls a number of associated entities.

The following are the associated entities: MTAQ Ltd MTA Institute of Technology Pty Ltd MTAQ Management Pty Ltd All entities have a June financial year end. Transactions which relate to these entities are conducted on trust for Motor Trades Association of Queensland and are brought to account by the Motor Trades Association of Queensland. b. Income Tax The Association is exempt from income tax under section 50-40 of the Australian Income Tax assessment Act 1999. c. Inventories Inventories are measured at the lower of cost and net realisable value. Costs are assigned on the basis of weighted average costs.

Motor Trades Association of Queensland Industrial Organisation of Employers 43

Notes to and forming part of the Financial Statements continued For the year ended 30 June 2016

NOTE 1: STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES CONTINUED d. Business Combinations The acquisition method of accounting is used to account for all business combinations. Consideration is measured at the fair value of the assets transferred, liabilities incurred and equity interests issued by the group on acquisition date. Consideration also includes the acquisition date, fair values of any contingent consideration arrangements, any pre-existing equity interests in the acquiree and share-based payment awards of the acquiree that are required to be replaced in a business combination.

The acquisition date is the date on which the group obtains control of the acquiree. Where equity instruments are issued as part of the consideration, the value of the equity instruments is their published market price at the acquisition date unless, in rare circumstances, it can be demonstrated that the published price at acquisition date is not fair value and that other evidence and valuation methods provide a more reliable measure of fair value.

Identifiable assets acquired and liabilities and contingent liabilities assumed in business combinations are, with limited exceptions, initially measured at their fair values at acquisition date. Goodwill represents the excess of the consideration transferred and the amount of the non-controlling interest in the acquiree over fair value of the identifiable net assets acquired.

If the consideration and non-controlling interest of the acquiree is less than the fair value of the net identifiable assets acquired, the difference is recognised in profit or loss as a bargain purchase price, but only after a reassessment of the identification and measurement of the net assets acquired.

Acquisition-related costs are expensed when incurred. Transaction costs arising on the issue of equity instruments are recognised directly in equity and transaction costs arising on the issue of debt as part of the consideration are accounted for in accordance with note 1(m). e. Intangible Assets Goodwill Goodwill is measured as described in note 1(d). Goodwill on acquisitions of subsidiaries is included in goodwill as intangible assets and on acquisitions of associates is included in the investment in associate. Goodwill is not amortised but is measured at cost less any accumulated impairment losses. Goodwill is reviewed for impairment annually or more frequently if events or changes in circumstances indicate that the carrying value may be impaired. Gains and losses on the disposal of an entity include the carrying amount of goodwill relating to the entity sold.

Goodwill acquired is allocated to each of the cash-generating units expected to benefit from the combination’s synergies.

Impairment is determined by assessing the recoverable amount of the cash-generating unit to which the goodwill relates.

Impairment losses on goodwill cannot be reversed. f. Property, Plant and Equipment Each class of property, plant and equipment is carried at cost less any accumulated depreciation and impairment losses.

Property, plant and equipment Property, plant and equipment are measured on the cost basis less depreciation and impairment losses.

The carrying amount of property, plant and equipment is reviewed annually by directors to ensure it is not in excess of the recoverable amount from these assets. The recoverable amount is assessed on the basis of the expected net cash flows that will be received from the assets’ employment and subsequent disposal. The expected net cash flows have been discounted to their present values in determining recoverable amounts.

Subsequent costs are included in the asset’s carrying amount or recognised as a separate asset, as appropriate, only when it is probable that future economic benefits associated with the item will flow to the group and the cost of the item can be measured reliably. All other repairs and maintenance are charged to the income statement during the financial period in which they are incurred.

44 Motor Trades Association of Queensland Industrial Organisation of Employers

Depreciation The depreciable amount of buildings is depreciated on a straight-line basis with all other fixed assets and capitalised lease assets, but excluding freehold land, is depreciated on a diminishing value basis over their useful lives to the Association commencing from the time the asset is held ready for use. Leased assets are depreciated over the shorter of either the unexpired period of the lease or the estimated useful lives of the assets.

The depreciation rates used for each class of depreciable assets are: Class of Fixed Asset Buildings Plant and equipment

Depreciation Rate 2.5% 15 – 60%

Motor vehicles

30%

Leased assets

20%

Fixtures and fittings

20%

The assets’ residual values and useful lives are reviewed, and adjusted if appropriate, at each balance sheet date.

An asset’s carrying amount is written down immediately to its recoverable amount if the asset’s carrying amount is greater than its estimated recoverable amount.

Gains and losses on disposals are determined by comparing proceeds with the carrying amount. These gains or losses are included in the income statement.

The balance of capital works in progress is carried at cost and upon completion will be transferred to the appropriate class of assets. g. Financial Instruments Recognition Financial instruments are initially measured at cost on trade date, which includes transaction costs, when the related contractual rights or obligations exist. Subsequent to initial recognition these instruments are measured as set out below.

Financial assets at fair value through profit and loss A financial asset is classified in this category if acquired principally for the purpose of selling in the short term or if so designated by management and within the requirements of AASB 139: Financial Instruments: Recognition and Measurement.

Realised and unrealised gains and losses arising from changes in the fair value of these assets are included in the income statement in the period in which they arise.

Loans and receivables Loans and receivables are non-derivative financial assets with fixed or determinable payments that are not quoted in an active market and are stated at amortised cost using the effective interest rate method.

Held-to-maturity investments These investments have fixed maturities and it is the group’s intention to hold these investments to maturity. Any held-tomaturity investments held by the group are stated at amortised cost using the effective interest rate method.

Available-for-sale financial assets

Available-for-sale financial assets include any financial assets not included in the above categories. Available-for-sale financial assets are reflected at fair value. Unrealised gains and losses arising from changes in fair value are taken directly to equity.

Motor Trades Association of Queensland Industrial Organisation of Employers 45

Notes to and forming part of the Financial Statements continued For the year ended 30 June 2016

NOTE 1: STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES CONTINUED Financial liabilities Non-derivative financial liabilities are recognised at amortised cost, comprising original debt less principal payments and amortisation.

Fair value Fair value is determined based on current bid prices for all quoted investments. Valuation techniques are applied to determine the fair value for all unlisted securities, including recent arm’s length transactions, reference to similar instruments and option pricing models.

Impairment At each reporting date, the group assesses whether there is objective evidence that a financial instrument has been impaired.

In the case of available-for-sale financial instruments, a prolonged decline in the value of the instrument is considered to determine whether an impairment has arisen. Impairment losses are recognised in the income statement. h. Impairment of Assets At each reporting date, the group reviews the carrying values of its tangible and intangible assets to determine whether there is any indication that those assets have been impaired. If such an indication exists the recoverable amount of the asset, being the higher of the asset’s fair value less costs to sell and value in use, is compared to the asset’s carrying value.

Any excess of the asset’s carrying value over its recoverable amount is expensed to the income statement.

Where it is not possible to estimate the recoverable amount of an individual asset, the group estimates the recoverable amount of the cash-generating unit to which the asset belongs. i. Employee Benefits Short–term employee benefit obligations Liabilities for wages and salaries, including non-monetary benefits, annual leave and accumulating sick leave expected to be settled wholly within 12 months after the end of the reporting period, are recognised in other liabilities in respect of employees’ services rendered up to the end of the reporting period and are measured at amounts expected to be paid when the liabilities are settled. Liabilities for non-accumulating sick leave are recognised when leave is taken and measured at the actual rates paid or payable.

Other long-term employee benefit obligations Liabilities for long service leave and annual leave are not expected to be settled wholly within 12 months after the end of the reporting period. They are recognised as part of the provision for employee benefits and measured as the present value of expected future payments to be made in respect of services provided by employees to the end of the reporting period using the projected unit credit method. Consideration is given to expected future salaries and wages levels, experience of employee departures and periods of service. Expected future payments are discounted using national government bond rates at the end of the reporting period with terms to maturity and currency that match, as closely as possible, the estimated future cash outflows.

Regardless of when settlement is expected to occur, liabilities for long service and annual leave are presented as current liabilities in the statement of financial position if the entity does not have an unconditional right to defer settlement for at least 12 months after the end of the reporting period. j. Provisions Provisions are recognised when the group has a legal or constructive obligation, as a result of past events, for which it is probable that an outflow of economic benefits will result and that outflow can be reliably measured. k. Cash and Cash Equivalents Cash and cash equivalents include cash on hand, deposits held at call with banks, other short-term highly liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within short-term borrowings in current liabilities on the balance sheet.

46 Motor Trades Association of Queensland Industrial Organisation of Employers

l. Revenue Revenue from the sale of goods is recognised upon the delivery of goods to customers. Interest revenue is recognised on a proportional basis taking into account the interest rates applicable to the financial assets. Dividend revenue is recognised when the right to receive a dividend has been established. Dividends received from associates and joint venture entities are accounted for in accordance with the equity method of accounting. Revenue from the rendering of a service is recognised upon the delivery of the service to the customers. All revenue is stated net of the amount of goods and services tax (GST). m. Borrowing Costs Borrowing costs directly attributable to the acquisition, construction or production of assets that necessarily take a substantial period of time to prepare for their intended use or sale, are added to the cost of those assets until such time as the assets are substantially ready for their intended use of sale.

All other borrowing costs are recognised in income in the period in which they are incurred. n. Goods and Services Tax (GST) Revenues, expenses and assets are recognised net of the amount of GST except where the amount of GST incurred is not recoverable from the Tax Office. In these circumstances, the GST is recognised as part of the cost of acquisition of the asset or as part of an item of the expense. Receivables and payables in the balance sheet are shown inclusive of GST. Cash flows are presented in the cash flow statement on a gross basis, except for the GST component of investing and financing activities which are disclosed as operating cash flows. o. Leases Leases of fixed assets where substantially all the risks and benefits incidental to the ownership of the asset, but not the legal ownership that are transferred to entities in the Association, are classified as finance leases. Finance leases are capitalised by recording an asset and a liability at the lower of the amounts equal to the fair value of the leased property or the present value of the minimum lease payments, including any guaranteed residual values. Lease payments are allocated between the reduction of the lease liability and the lease interest expense for the period. Leased assets are depreciated on a straight-line basis over the shorter of their estimated useful lives or the lease term. p. Comparative Figures When required by Accounting Standards, comparative figures have been adjusted to conform to changes in presentation for the current financial year. q. Capital Management The Directors of the Association control the capital to ensure that the association can fund its operations and continue as a going concern. The Association manages capital primarily through receipt of membership and training revenue and profits generated from business activities. There has been no change in the current year to this approach. r. Critical Accounting Estimates and Judgments The directors evaluate estimates and judgments incorporated into the financial report based on historical knowledge and best available current information. Estimates assume a reasonable expectation of future events and are based on current trends and economic data, obtained both externally and within the group.

Key estimates — Impairment The group assesses impairment at each reporting date by evaluating conditions specific to the group that may lead to impairment of assets. Where an impairment trigger exists, the recoverable amount of the asset is determined. Value-in-use calculations performed in assessing recoverable amounts incorporate a number of key estimates.

The financial report was authorised for issue on 28th October 2016 by the Board of Directors.

Motor Trades Association of Queensland Industrial Organisation of Employers 47

Notes to and forming part of the Financial Statements continued For the year ended 30 June 2016

NOTE 2: REVENUES

2016 2015 $ $

Revenues From Operating Activities Commissions received

41,535

883

Industrial services income

29,823

27,674

Training services

7,199,750

7,376,455

Grant income

-

632,428

Sale of publications

134,225

161,764

Sale of stationery

236,185

258,875

Interest from other persons

43,619

50,240

Members subscriptions & entrance fees

1,025,295

1,031,543

MTAA House dividend

47,500

163,400

Rent 3,173 4,009 Sundry income

328,496

179,487

NET REVENUE FROM OPERATING ACTIVITIES

9,089,601 9,886,758

Gain/(loss) on disposal of asset

(28,291) 680

TOTAL REVENUE FROM OPERATING ACTIVITIES

9,061,310 9,887,438

48 Motor Trades Association of Queensland Industrial Organisation of Employers

NOTE 3: EXPENSES 2016 2015 $ $

Expenses From Operating Activities Accounting & Audit Fees

39,112

38,527

Advertising & Promotion

89,490

245,657

Accommodation/Travel Staff

75,139

132,674

Bad & Doubtful Debts

(3,001)

-

Bank Charges

10,316

9,842

Building Fees

-

5,890

Body Corporate

22,437

18,672

Cleaning 59,197 47,816 Cost of goods sold – Publications

115,948

117,096

Cost of goods sold – Stationery

102,725

128,433

Cost of goods sold - Training

647,382

734,366

Commissions 20,475 6,879 Computer Upgrades

95,806

100,999

Consultants fees

612,103

445,271

Depreciation & Amortisation

472,680

493,447

Director Fees

236,109

248,136

Donations* Divisional Expenses

949 200,500 11,465

14,074

Entertainment 5,404 5,835 Fees 22,109 20,420 Fringe Benefits Tax

66,080

59,386

Insurance 66,023 61,958 Interest 73 Impairment of MTAA House Unit Trust

-

474,585

Legal Costs

36,678

25,152

Light & Power

51,865

45,148

Meetings – Catering Staff

3,998

5,666

Meetings – Catering Board

6,261

7,699

Travel Board – Airfares/Accommodation

12,619

8,105

Motor Vehicle

226,222

297,901

Management Fee

15,524

13,762

Office Supplies

39,646

26,883

Motor Trades Association of Queensland Industrial Organisation of Employers 49

Notes to and forming part of the Financial Statements continued For the year ended 30 June 2016

NOTE 3: EXPENSES CONTINUED

2016 2015 $ $

Freight & Cartage

48,719

43,401

Payroll Tax

283,426

272,041

Personnel – Engagement

22,595

3,510

Personnel – Long Service

88,969

(11,737)

Personnel – Salaries & Wages

4,710,396

4,945,907

Personnel – Salary Sacrifice

38,693

73,772

Personnel – Superannuation

667,915

705,661

Personnel – Uniforms

2,963

194

Personnel – Training

27,410

20,446

Printing & Stationery

14,951

18,482

Rates & Taxes

56,399

19,989

Rental on operating leases

74,606

96,750

Repairs & Maintenance Other

36,229

21,716

Security 600 1,062 Sponsorships 3,890 4,845 Staff Amenities

23,472

16,239

Subscriptions 57,775 53,545 Technical Journals

-

150

Telecommunications 160,759 171,669 Web Site

127,306

40,581

Workers Compensation

24,613

23,941

TOTAL EXPENSES FOR OPERATING ACTIVITIES

9,632,520 10,562,943

*Donation of $200,000 was made to AADA Limited at 30 June 2015

NOTE 4: CASH AND CASH EQUIVALENTS Cash on hand

700

700

Cash at Bank

1,187,136

430,475

TOTAL 1,187,836 431,175

NOTE 5: SHORT TERM DEPOSIT TERM DEPOSITS GREATER THAN 3 MONTHS

50 Motor Trades Association of Queensland Industrial Organisation of Employers

754,116 1,690,019

NOTE 6: TRADE AND OTHER RECEIVABLES

2016 2015 $ $

Current Accounts Receivable

692,073

674,281

Less: Provision for impairment of trade receivables

(51,758)

(62,689)

640,315 611,592 Sundry Debtors

1,144,990

833,159

TOTAL RECEIVABLES

1,785,305 1,444,751

2016 2015

Amount Amount Amount Amount

Total impaired not impaired Total impaired not impaired

$ $ $ $ $ $ Not past due

584,551

-

Past due [30] days

27,676

-

Past due [30-60] days

13,540

Past due [60-90] days Past due [>90] days TOTAL

584,551

316,954

-

316,954

27,676

145,556

-

145,556

-

13,540

54,550

-

54,550

14,548

-

14,548

32,859

-

32,859

51,758

51,758

-

124,362

62,689

61,673

692,073

51,758

640,315

674,281

62,689

611,592

Analysis of Impairment Account

2016 2015 $ $

Opening Balance

62,689

79,986

Provisions for doubtful receivables

(3,004)

-

Receivables written off during the year

(7,927)

(17,297)

CLOSING BALANCE

51,758 62,689

NOTE 7: INVENTORIES FINISHED GOODS – STATIONERY

104,588 91,773

NOTE 8: OTHER ASSETS General Prepayments

152,645

316,375

152,645 316,375

Motor Trades Association of Queensland Industrial Organisation of Employers 51

Notes to and forming part of the Financial Statements continued For the year ended 30 June 2016

NOTE 9: INTANGIBLE ASSETS 2016 2015 $ $

Goodwill 1,020,143 1,020,143 Less: Accumulated Impairment Loss WRITTEN DOWN VALUE

-

-

1,020,143 1,020,143

Software 116,947 139,274 Less: Accumulated Amortisation

(47,229)

(79,713)

WRITTEN DOWN VALUE

69,718 59,561

TOTAL WRITTEN DOWN VALUE OF INTANGIBLE ASSETS

1,089,861 1,079,704

(a) Movement in carrying amounts Goodwill Balance at the beginning of the year

1,020,143

1,020,143

Acquisitions through business combinations (refer note 26)

-

-

Impairment Losses

-

-

CARRYING AMOUNT AT THE END OF THE YEAR

1,020,143 1,020,143

Software Balance at the beginning of the year

59,561

55,002

Additions 80,423 50,250 Disposals (28,291)

-

Amortisation/Write-offs (41,975) (45,691) CARRYING AMOUNT AT THE END OF THE YEAR

69,718 59,561

(b) Impairment Testing of Cash-generating Units Containing Goodwill with Indefinite Useful Lives Goodwill has been allocated to the following cash-generating unit Carrying amounts of goodwill Paint and Panel Training

1,020,143

1,020,143

1,020,143 1,020,143

52 Motor Trades Association of Queensland Industrial Organisation of Employers

2016 2015 $ $

The recoverable amount of all cash-generating units is based on value-in-use calculations which use cash flow projections based on budgets approved by management covering a 5-year period. The growth rate used in these budgets does not exceed the long-term average growth rate for the business in which cash-generating units operate.

Recoverable amounts of goodwill Paint and Panel Training

1,021,651

1,389,098

1,021,651 1,389,098 Key assumptions used for value-in-use calculations are as follows: The value-in-use calculation assumes that 40% of the Paint and Panel Training cash flows relate to the goodwill on the purchase of the Auto Trade College. A discount rate of 10% has been applied to the value-in-use calculation for budgeted revenues and expenditure greater than one year after reporting date, as well as a growth rate of 2.7% in determining future year projected cash flows.

Management determined budgeted gross margins based on past performance and its expectations for the future. The weighted average growth rates used are consistent with those used in industry reports. Discount rates used are pre-tax and are specific to relevant segments and countries in which they operate.

The recoverable amount of the goodwill of $1,020,143 is estimated to be $1,021,651 which exceeds the carrying amount at 30 June 2016 by $1,508. If a discount rate of 11.5% was used instead of 10%, the recoverable amount of goodwill would equal the carrying amount.

NOTE 10: OTHER FINANCIAL ASSETS

Non-Current

2016 2015 $ $

Investments in Listed & Unlisted Entities classified as available for sale Units in MTAA House Unit Trust at directors’ valuation

2,181,084

2,181,084

Dalton Nicol Reid Portfolio

1,335,044

1,287,410

3,516,128 3,468,494 The basis of valuation of Units Held in MTAA House is at fair value based on the latest sale of the units in the Trust made during the 30 June 2016 financial year. MTAQ Ltd holds 19 units of a total 115 units.

The Dalton Nicol Reid portfolio comprise of investments in ordinary shares listed on the Australian Securities Exchange.

This investment portfolio has been valued at 30 June 2016.

Motor Trades Association of Queensland Industrial Organisation of Employers 53

Notes to and forming part of the Financial Statements continued For the year ended 30 June 2016

NOTE 11: PROPERTY, PLANT & EQUIPMENT 2016 2015 $ $

Land & Buildings

8,981,209

8,981,209

Less: Accumulated Depreciation

(850,630)

(665,159)

WRITTEN-DOWN VALUE

8,130,579 8,316,050

Fixtures & Fittings at cost Less: Accumulated Depreciation WRITTEN-DOWN VALUE

95,644

95,644

(50,087)

(37,781)

45,557 57,863

Plant & Equipment at cost

1,624,026

1,563,672

Less: Accumulated Depreciation

(944,432)

(737,271)

WRITTEN-DOWN VALUE

679,594 826,401

Motor Vehicles at cost

176,621

94,687

Less: Accumulated Depreciation

(56,225)

(25,716)

WRITTEN-DOWN VALUE

120,396 68,971

Total Property, Plant & Equipment

10,877,500

10,735,212

Less: Accumulated Depreciation

(1,901,374)

(1,465,927)

TOTAL WRITTEN-DOWN VALUE OF PROPERTY, PLANT & EQUIP.

8,976,126 9,269,285

a) Movement in carrying amounts.

Movement in the carrying amounts for each class of property, plant and equipment between the beginning and the end of the current financial year.

2016

Land and Buildings

Fixtures and Fittings

Plant and Equipment

Motor Vehicles

Total

Opening Balance

8,316,050

57,863

826,401

68,971

9,269,285

Additions

-

Disposals

- - - - -

Transfers

- - - - -

Revaluations

- - - - -

Depreciation Carrying amount at the end of the year

- 60,353 81,934 142,287

(185,471) (12,306) (207,160) (30,509) (435,446) 8,130,579

45,557

54 Motor Trades Association of Queensland Industrial Organisation of Employers

679,594

120,396

8,976,126

2015

Land and Buildings

Fixtures and Fittings

Plant and Equipment

Motor Vehicles

Total

Opening Balance

8,501,520

72,605

993,680

74,240

9,642,045

Additions

-

Disposals

- (1,450) (6,922)

Transfers

- - - - -

Revaluations

- - - - -

Depreciation Carrying amount at the end of the year

- 64,472 18,896 83,368 - (8,372)

(185,470) (13,292) (224,829) (24,165) (447,756) 8,316,050

57,863

826,401

NOTE 12: TRADE AND OTHER PAYABLES

68,971

9,269,285

2016 2015 $ $

Current Accounts Payable 224,091 280,575 Accrued Expenses 272,053 158,851 GST Payable

33,100

49,707

Provision for Employee Benefits

384,656

367,861

913,900 856,994

NOTE 13: EMPLOYEE BENEFIT PROVISION

Current Provision for Long Service Leave

225,910 160,519

Non-Current Provision for Long Service Leave

112,074 88,496

NOTE 14: OTHER LIABILITIES

Current Other Payables 1,619 1,510 Subscriptions and Unearned Income Received in advance

1,131,152

880,194

1,132,771 881,704

Motor Trades Association of Queensland Industrial Organisation of Employers 55

Notes to and forming part of the Financial Statements continued For the year ended 30 June 2016

NOTE 15: RESERVES 2016 2015 $ $

Balance at beginning of financial year Transfer to accumulated surplus upon sale of held for sale asset Revaluation decrements - Dalton Nicol Reid Portfolio Revaluation decrements – MTAA House Unit Trust ASSET REVALUATION RESERVE

106,465

123,306

-

-

(50,703)

34,801

-

(51,642)

55,762 106,465

NOTE 16 ACCUMULATED SURPLUSES / (DEFICIT) Accumulated surpluses at the beginning of the year

15,697,398

16,372,903

-

-

(571,210)

(675,505)

Transfers from reserves Net profit/(loss) attributable to the association

ACCUMULATED SURPLUSES AT THE END OF THE YEAR 15,126,188 15,697,398

NOTE 17: CONTINGENT ASSETS/LIABILITIES Contingent Liabilities There are no contingent liabilities at 30 June 2016 (2015: nil).

Commitments Capital Expenditure The entity has no capital expenditure commitments at 30 June 2016 (2015: nil).

NOTE 18: CONTINGENT ASSETS/LIABILITIES continued Operating lease commitments Non-cancellable operating leases contracted for but not capitalised in the financial statements:

Within one year

191,511

192,403

After one year, but not more than five years

138,838

170,352

330,349 362,755 The computer and motor vehicle lease commitments are non-cancellable operating leases contracted for but not recognised in the financial statement with a three-year term.

56 Motor Trades Association of Queensland Industrial Organisation of Employers

NOTE 19: CASH FLOW INFORMATION

2016 2015 $ $

a) Reconciliation of Cash Cash on hand

700

700

Cash at bank

714,732

430,475

Cash on deposit

1,226,520

1,690,019

1,941,952

2,121,194

b) Reconciliation of net cash provided by operating activities to operating surplus after income tax: Operating Surplus / (Deficit)

571,010

(675,505)

Non-cash flows in operating profit: Impairment

-

Depreciation

474,585

477,421

493,447

28,291

(718)

Loss/(Profit) on sale of Investments

64,081

(33,224)

Loss/(Profit) on sale of assets

Changes in assets and liabilities: Decrease/(Increase) in trade and other receivables

176,824

48,174

Decrease/(Increase) in inventory

12,815

(9,012)

Decrease/(Increase) in interest receivable

-

1,585

73,091

78,582

Increase/(decrease) in provisions

105,764

(60,455)

Increase/(decrease) in unearned income

251,067

(417,258)

Increase/(decrease) in other liabilities

113,202

(159,629)

Increase/(decrease) in payables

NET CASH PROVIDED BY / (USED IN) OPERATING ACTIVITIES

77,924 (259,428)

c) Credit-Standby Arrangement & Loan Facilities MTA Queensland has a bank overdraft facility amounting to $2,500,000. At 30 June 2016 the facility remained unused.

The facility is renewed annually and interest rates are variable.

Motor Trades Association of Queensland Industrial Organisation of Employers 57

Notes to and forming part of the Financial Statements continued For the year ended 30 June 2016

NOTE 20: RELATED PARTIES a) Officers’ Remuneration and Other Transactions The Board members’ businesses are all current members of the Association and also purchase stationery from the Association which are on standard terms.

Director fees paid during the financial year were $236,109 (2015: $248,136).

Apart from the above, there was no other Related Party Transaction during the financial year ended 30 June 2016.

Names of Officers who held office during the year are:

David Fraser James Robertson Mark Dodge Tim Kane Paul Peterson Chris Ching Mark Brady

John Ruddick Lawrie Beachman Rod Pether Steve Eaton Mark Bryers Michael Kennedy Garth Madill

NOTE 21: FAIR VALUE MEASUREMENT a) The following assets and liabilities are recognised and measured at fair value on a recurring basis: • Available for sale financial assets Fair value hierarchy All assets and liabilities for which fair value is measured or disclosed are categorised according to the fair value hierarchy as follows: • Level 1 - Quoted prices (unadjusted) in active markets for identical assets or liabilities • Level 2 - Inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly or indirectly • Level 3 - Inputs for the assets or liability that are not based on observable market data (unobservable inputs).

Recognised fair value measurements The following table sets out the group’s assets and liabilities that are measured and recognised at fair value in the financial statements.

30 June 2016

Note

Level 1

Level 2

Level 3

Total

Recurring fair value measurements Available-for-sale financial assets - Units in MTAA House Unit Trust - Dalton Nicol Reid Share Portfolio

-

-

1,335,044

-

TOTAL FINANCIAL ASSETS 1,335,044

-

58 Motor Trades Association of Queensland Industrial Organisation of Employers

2,181,084 - 2,181,084

2,181,084 1,335,044 3,516,128

30 June 2015

Note

Level 1

Level 2

Level 3

Total

Recurring fair value measurements Available-for-sale financial assets - Units in MTAA House Unit Trust

-

- Dalton Nicol Reid Share Portfolio TOTAL FINANCIAL ASSETS

-

1,287,410

-

1,287,410

-

2,181,084 - 2,181,084

2,181,084 1,287,410 3,468,494

There were no transfers during the year between Level 1 and Level 3 for recurring fair value measurements. The group’s policy is to recognise transfers into and out of the different fair value hierarchy levels at the date the event or change in circumstances that caused the transfer occurred.

Disclosed fair values The group also has assets and liabilities which are not measured at fair value but for which fair values are disclosed in the notes to the financial statements. The fair value of short-term deposits as disclosed in note 5 were determined by reference to published price quotations in an active market (Level 1). Due to their short-term nature, the carrying amount of trade receivables and payables are assumed to approximate their fair values. The carrying amount of current trade and other payables disclosed in note 12 are assumed to approximate their fair values because the impact of discounting is not significant.

Reconciliation of Level 3 fair value movements The following table sets out the movements in Level 3 fair values for recurring measurements.

Units in MTAA House Unit Trust Total $’000 $’000

Opening balance 1 July 2015 Revaluation Decrements – MTAA House Unit Trust Impairment of MTAA House Unit Trust

2,181,084 - -

2,181,084 -

Closing balance 30 June 2016

2,181,084

2,181,084

Valuation processes for Level 3 fair values MTA Queensland’s investment in the MTAA House Unit Trust is valued by reference to the latest sale of units in the Trust made during the 30 June 2016 financial year. The majority of the net assets within the MTAA House Unit Trust relate to investment property, of which the Unit trust regularly engages external, independent and qualified valuers to determine the fair value of the investment property.

Motor Trades Association of Queensland Industrial Organisation of Employers 59

Notes to and forming part of the Financial Statements continued For the year ended 30 June 2016

NOTE 22: FINANCIAL RISK MANAGEMENT a. General objectives, policies and processes Motor Trades Association of Queensland (MTA Queensland) is exposed to risks that arise from its use of financial instruments.

This note describes the company’s objectives, policies and processes for managing those risks and the methods used to measure them. Further quantitative information in respect of these risks is presented throughout these financial statements.

There have been no substantive changes in the entity’s exposure to financial instrument risks, its objectives, policies and processes for managing those risks or the methods used to measure them from previous periods unless otherwise stated in this note.

The maximum exposure to credit risk at balance date is as follows: 2016 2015 $ $

Receivables 692,073 674,281 b. Liquidity Risk Liquidity risk is the risk that the entity may encounter difficulties raising funds to meet commitments associated with financial instruments. It is the policy of the Board of Directors of MTA Queensland to maintain adequate committed credit facilities.

The unused bank overdraft credit facility at balance date was $2,500,000. The bank overdraft facilities may be drawn down at any time but may be terminated by the bank without notice. c. Maturity Analysis – 2016

Carrying Contractual

Amount Cash flows < 6 mths 6- 12 mths 1-3 years $ $ $ $ $

Financial Liabilities Trade and other payables

692,073

692,073

692,073

-

-

Lease liability

- - - - -

Bank Loan

- - - - -

TOTAL

692,073 692,073 692,073

-

-

Maturity Analysis – 2015

Carrying Contractual

Amount Cash flows < 6 mths 6- 12 mths 1-3 years $ $ $ $ $

Financial Liabilities Trade and other payables

674,281

674,281

674,281

-

-

Lease liability

- - - - -

Bank loan

- - - - -

TOTAL

674,281 674,281 674,281

60 Motor Trades Association of Queensland Industrial Organisation of Employers

-

-

d. Interest Rate Risk

The companyâ&#x20AC;&#x2122;s exposure to interest rate risk, which is the risk that a financial instrumentâ&#x20AC;&#x2122;s value will fluctuate as a result of changes in market interest rates and the effective weighted average interest rates on those financial assets and financial liabilities, is as follows:

Foating Interest Rate

2016 2015

$ $

Non-Interest Bearing 2016 2015 $ $

Total 2016 $

2015 $

Financial Assets Cash & deposits

1,941,952

Receivables TOTAL FINANCIAL ASSETS

-

2,121,194 -

-

-

1,941,952

1,785,305 1,444,751

2,121,194

1,785,305 1,444,751

1,941,952 2,121,194 1,785,305 1,444,751 3,727,257 3,565,945

Financial Liabilities Trade & other payables

-

-

913,900

856,994

913,900

856,994

Lease liability

-

-

-

-

-

-

Bank Loan

-

-

-

-

-

-

TOTAL FINANCIAL LIABILITIES

-

-

913,900 856,994 913,900 856,994

e. Sensitivity Analysis Management has performed a sensitivity analysis relating to its exposure to interest rate risk at balance date.

NOTE 23: KEY MANAGEMENT PERSONNEL COMPENSATION

Short-term Post employment benefits benefits $ $

2016 TOTAL COMPENSATION 637,511 89,323

2015 TOTAL COMPENSATION 681,946 134,002

Motor Trades Association of Queensland Industrial Organisation of Employers 61

Notes to and forming part of the Financial Statements continued For the year ended 30 June 2016

NOTE 24: ACCOUNTING STANDARDS ISSUED NOT YET EFFECTIVE There are a number of accounting standards that have been issued but are not yet effective. The organisation does not expect any material impact on financial statements from the impending changes. However, various additional disclosures will be required in the financial statements in future periods.

NOTE 25: EVENTS AFTER BALANCE SHEET DATE The directors are not aware of any significant event since the end of the reporting period.

NOTE 26: REGISTERED OFFICE Building 8 2728 Logan Road Eight Mile Plains QLD 4113

62 Motor Trades Association of Queensland Industrial Organisation of Employers

Declaration by Members of the Board of MTA Queensland

In the opinion of the Board of MTA Queensland the financial report as set out on pages 38 to 67.

1. Presents fairly the financial position of the Motor Trades Association of Queensland Industrial Organisation of Employers as at 30 June 2016 and the results and cash flows of the association for the year ended on that date in accordance with Australian Accounting Standards and other mandatory professional reporting requirements.

2. Confirms that, at the date of this statement, there are reasonable grounds to believe that Motor Trades Association of Queensland Industrial Organisation of Employers will be able to pay its debts as and when they fall due.

This statement is made in accordance with a resolution of the Board of MTA Queensland and is signed for and on behalf of the committee by:

Chairman David Fraser

Treasurer Paul Peterson Dated this 6th October 2016

Motor Trades Association of Queensland Industrial Organisation of Employers 63

Independent Auditor’s Report

To the members of Motor Trades Association Queensland Industrial Organisation of Employers (MTA Queensland)

Report on the Financial Report We have audited the accompanying financial report of MTA Queensland which comprises the statement of financial position as at 30 June 2016, the statement of comprehensive income, the statement of changes in equity and the statement of cash flows for the year then ended, notes comprising a summary of significant accounting policies and other explanatory information, and declaration by the Members of the Board.

The Members of the Board’s Responsibility for the Financial Report The Members of the Board are responsible for the preparation and fair presentation of the financial report in accordance with Australian Accounting Standards and the Industrial Relations Act 1999, and for such internal control as the Board determine is necessary to enable the preparation of the financial report that is free from material misstatement, whether due to fraud or error.

In Note 1, the Board also state, in accordance with Accounting Standard AASB 101 Presentation of Financial Statements, that the financial statements comply with International Financial Reporting Standards.

Auditor’s Responsibility Our responsibility is to express an opinion on the financial report based on our audit. We conducted our audit in accordance with Australian Auditing Standards. Those standards require that we comply with relevant ethical requirements relating to audit engagements and plan and perform the audit to obtain reasonable assurance about whether the financial report is free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial report.

The procedures selected depend on the auditor’s judgement, including the assessment of the risks of material misstatement of the financial report, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the association’s preparation and fair presentation of the financial report in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by the Board, as well as evaluating the overall presentation of the financial report.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.

Independence In conducting our audit, we have complied with the independence requirements of the Australian professional accounting bodies.

Opinion In our opinion the financial report presents fairly, in all material respects, the financial position of MTA Queensland as of 30 June 2016 and of its financial performance and cash flows for the year then ended in accordance with Australian Accounting Standards to the extent described in Note 1 to the financial report.

64 Motor Trades Association of Queensland Industrial Organisation of Employers

Report on Other Legal and Regulatory Requirements In our opinion: (a) the organisation has kept satisfactory accounting records for the financial period ended 30 June 2016, including records of:

(i) the sources and nature of the organisationâ&#x20AC;&#x2122;s income including membership subscriptions and other income from members; and

(ii) the nature of and reasons for the organisationâ&#x20AC;&#x2122;s expenditure;

(b) the financial report for the year ended 30 June 2016 is properly drawn up to give a true and fair view of the organisationâ&#x20AC;&#x2122;s:

(i) financial affairs as at the end of the year; and

(ii) the income and expenditure and surplus or deficit for the year;

(c) the financial report has been prepared in accordance with Industrial Relations Act 1999, Australian Accounting Standards and other mandatory professional reporting requirements; (d) the financial disclosure statement and mid-year financial disclosure statement for the year were prepared under this Act; and (e) the organisation has the policies it is required to have under section 553A(1).

Where necessary, we have obtained all the information and explanations which, to the best of our knowledge and belief, were necessary for the purposes of our audit.

Basis of Accounting Without modifying our opinion, we draw attention to Note 1 to the financial report which describes the basis of accounting.

The financial report has been prepared for the purpose of fulfilling the Industrial Relations Act 1999 financial reporting requirements. As a result, the financial report may not be suitable for another purpose.

BDO Audit Pty Ltd

D P Wright Director Brisbane, 6th October 2016

Motor Trades Association of Queensland Industrial Organisation of Employers 65

Accounting Officerâ&#x20AC;&#x2122;s Certificate

I, Kathy Winkcup, being the officer responsible for keeping the accounting records of the Motor Trades Association of Queensland Industrial Organisation of Employers, certify that as at 30 June 2016 the number of financial members of the Association was 1,206 and the number of non-financial members was nil.

In my opinion: (i) the attached financial report shows a true and fair view of the financial affairs of the Association as at 30 June 2016; (ii) a record has been kept of all moneys paid by, or collected from, members and all moneys so paid and collected have been credited to the bank account to which those moneys are to be credited, in accordance with the rules of the Association; (iii) expenditure incurred by the Association was approved under the Associationâ&#x20AC;&#x2122;s Rules before it was incurred; (iv) with regard to the funds of the Association raised by compulsory levies from members, or funds other than the General Fund operated in accordance with the rules, no payments were made of any such fund for purposes other than those for which the fund was operated; (v) all financial benefits granted to employees were allowed under the Associations rules. There were no loans or financial benefits given to persons holding office in the Association; (vi) the register of members of the Association was maintained in accordance with the Act.

Kathy Winkcup Chief Financial Officer Dated this 6th October 2016

66 Motor Trades Association of Queensland Industrial Organisation of Employers

Certificate by Members of the Board of MTA Queensland

In the opinion of the Board of Management the financial report: 1. Presents fairly the financial position of the Motor Trades Association of Queensland Industrial Organisation of Employers as at 30 June 2016 and the results and cash flows of the Association for the year ended on that date in accordance with Australian Accounting Standards and the Industrial Relations Act 1999.

2. Confirms that, at the date of this statement, there are reasonable grounds to believe that Motor Trades Association Queensland Industrial Organisation of Employers will be able to pay its debts as and when they fall due.

3. Confirms that meetings of the Board of MTA Queensland were held during the year ended 30 June 2016, in accordance with the rules of the Association.

4. Has, to the knowledge of the Board of Management, no instances where records, rules or copies of them have not been given to the Associationâ&#x20AC;&#x2122;s members under the Act. 5. Confirms that the Audit report and accounts for the Associationâ&#x20AC;&#x2122;s financial year ended 30 June 2015 have been presented to an annual general meeting of the Association and given to all financial members at that time.

This statement is made in accordance with a resolution of the Board of MTA Queensland and is signed for and on behalf of the Committee by:

President David Fraser

Treasurer Paul Peterson Dated this 6th October 2016

Motor Trades Association of Queensland Industrial Organisation of Employers 67

Board Members 2015 - 2016

MTA Queensland

MTAI Board members

David Fraser Chairman, MTA Queensland Chairman, Queensland Farm and Industrial Machinery Dealer Division (QFIMDD)

Ian Lawrence Chairman

Mark Bryers Vice Chairman, MTA Queensland Chairman, Engine Reconditioners Association Qld (ERAQ) Paul Peterson Secretary, MTA Queensland Chairman, Queensland Motorcycle Industry Division (QMID) Steve Eaton Chairman, National Auto Collision Alliance (NACA) Garth Madill Chairman, Australian Automotive Dealer Association (Qld) (AADA (Qld)) Lawrie Beecham Chairman, Auto Parts Recyclers Division (APRD) Tim Kane Chairman, Service Station & Convenience Store Association Queensland (SSCSAQ) John Ruddick Chairman, Tyre & Undercar Division of Queensland (TUDQ) Mark Dodge Chairman, Automotive Engineers Division (AED) Representative Far North Queensland Michael Kennedy Chairman, Automotive Remarketing Division (ARD) Chris Ching Chairman, Rental Vehicle Industry Division (RVID) Rod Pether Representative, North Queensland region James Robertson Representative, Central Queensland region

68 Motor Trades Association of Queensland Industrial Organisation of Employers

David Fraser Deputy Chairman/Director Mark Brady Director Allan Bonsall Director Tom Mangan Director Paul Peterson Director

Motor Trades Association of Queensland Industrial Organisation of Employers 69

20160406

Address Freeway Office Park, Building 8, 2728 Logan Road Eight Mile Plains Qld 4113 Postal PO Box 4530 Eight Mile Plains Qld 4113 Tel (07) 3237 8777 Fax (07) 3844 4488 Toll Free 1800 177 951 www.mtaq.com.au