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Contents
10
20
Features
Regulars
10 Fighting for positive change
8 Industry news
Master Plumbers’ 2019 Federal Election priorities
14 Snapshot around the nation
20 Open to opportunity
36 Marsh Insurance
Listening to customers and good planning are the pipeline for success
38 Member news
34 Tax tips
42 Product news
28 Australian Plumbing Industry magazine 15/306 Albert Street Brunswick VIC 3056 australianplumbingindustry.com.au
Subscription changes To change your details or to unsubscribe, call 1800 133 871 or email info@plumber.com.au
24 Protect your reputation
Print post number: PP100019076
Tips on how to guard one of your most valuable assets
Contacts
28 Invest in yourself Australia’s legendary Scott Pape provides his financial advice
32 How to get paid A new regime that could help you in the new financial year
Publisher Find out what’s happening on
World Plumbing Day
See page 38
The Master Plumbers’ and Mechanical Services Association of Australia (MPMSAA) E australianplumbing@plumber.com.au
Advertising Christine Watson T (03) 9321 0798 E christine.watson@plumber.com.au
Suppliers In autumn, people may think about cleaning the leaves out of the gutter but in our industry we start to think of the upcoming new financial year and how we should clean up our business and plan for future success. To help this process, we have filled the magazine with expert tips and tricks. Cover image by Salt Creative/Shutterstock.
Disclaimer API is published for the Plumbing industry and Master Plumbers Members by the Master Plumbers’ and Mechanical Services Association of Australia (MPMSAA) ABN: 56 296 473 997. Responsibility for comment in respect of elections in Master Plumbers is taken by Peter Daly of 15/306 Albert Street, Brunswick, VIC, 3056. Advertising: No responsibility is accepted by the publisher for accuracy of information contained in advertisements in API. Publication of any advertisements does not constitute endorsement by the publisher of any product, nor warrant its suitability. Advertisements are published as submitted by advertisers. Copyright: No part of this magazine may be produced without the publisher’s written permission Contributors: The views of external contributors and advertisers are not necessarily the views of Master Plumbers. Master Plumbers supports green printing initiatives. This magazine has been printed on FSC certified paper using vegetable based inks by Southern Colour under ISO 14001 environmental certification.
4 | Australian Plumbing Industry Magazine | Autumn 2019
saltcreative.com.au southerncolour.com.au ddmail.com.au
TFM2092 -MPA VIC 01/19
Break into the New Year with a great deal
As a Master Plumbers Victoria member, you can get a $4,500 Gold Fleet discount on any LandCruiser 200, until 31/03/2019.* It’s built to take on the toughest terrain with full-time 4WD powered by a 4.6L V8 petrol or 4.5L Turbo Diesel engine. So if you like to work hard and play even harder, you’ve met your match in a LandCruiser.
Visit your Toyota Fleet Specialist today, or call 1800 444 847 for more info *Accessories not included. Sahara model shown. Wash the exterior and underside of the vehicle with fresh water immediately after driving through seawater to prevent damage. Photo Credit: The Gall Boys. Fleet pricing excludes special edition vehicles.
toyota.com.au/fleet
Master Plumbers Victoria membership details required to redeem Gold Fleet discounts.
Water Management Solutions
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The plumbing industry will continue to evolve
Welcome
from the President and CEO
Professional passion and pride
More for members
If anyone had cause to doubt the passion and connection our members feel for their profession, it’s put to bed by two letters we received recently.
Your association continues to work hard to increase the value of your membership. We are committed to better understanding what you want and making sure we deliver products and services that are relevant.
The first, from a 98-year-old retiree, outlines his career from a 16-year-old school leaver, commencing an apprenticeship and finishing as a senior manager many years later with the same employer. The second, from an 87-year-old, professes his pride in being a plumber for more than five decades. It’s telling that both writers still proudly quote their plumbing license number. The modern plumbing profession, and the environments in which we do business, are clearly different from the past. There is no doubt that they change faster than regulation can keep up with. Governments and authorities are often forced to play catch-up. In Victoria, we have new plumbing regulations to cover the next decade. While there have been some positive moves forward, a lot still needs to be done to better capture issues inherent in complex plumbing, self-certification for commercial projects, design certification and offsite modular construction, as well as others. To its credit, the Victorian Government has undertaken to consult with industry to address these and we will be at the table to ensure this happens. The challenge for any government in regulating for the future is to not overlook the lessons from the past. And the reverence many of our now-retired colleagues have for their profession is a clear demonstration that the values of expertise, commitment and professionalism are timeless. The plumbing industry will continue to evolve, but it will do so with a workforce that remains passionate about building a better future for the industry and the community it serves. For those who haven’t seen, the World Plumbing Conference is coming to Melbourne from 11-13 September this year. Held every three years, this is an international highlight for our profession with a program built around the ‘four pillars of plumbing’; participation, products, practices and protection.
Master Plumbers has listened to members and we are now well underway in the development of a new Find-a-Plumber tool. The tool will catapult this tried and tested way of connecting consumers with our contracting members into a new league. It is a game changer for members and will provide a more effective and targeted way of promoting services to those who want to use them. Recently, as part of the evolution of our digital strategy, we launched Master Plumbers Radio; a podcast that provides insight on managing yourself and your businesses. The podcast provides interviews with experts from around the world, who discuss everything from the technical aspects of plumbing to managing finances; maintaining a healthy mind and body to understanding compliance. See more on page 28. Master Plumbers is keen to further develop our ability to have conversations with members and the broader industry. Proof of this is our social media channels, which have more than 9000 followers. Through these channels we are witnessing wonderful interaction and information sharing from across the profession. As members, supporters and industry colleagues continue to actively engage with social media, we will see an amplification of benefits for businesses and the industry as a whole. In the past month, Master Plumbers has introduced free Australian Standards for members. Already more than 100 members have accessed the standards, which are vital for members’ day-to-day work. As the year progresses, look out for a new resources and events that are developed from your feedback.
I encourage all plumbing businesses to get involved in some way with this rare opportunity to see world-best practice and share knowledge with industry experts. For more information, visit www.worldplumbingconference.com
Our new membership team will continue to reach out to members to see how we can help. If you haven’t interacted with us on one of our channels recently, please contact our membership team via email, phone or in person. We are committed to working with you to provide more for you.
Scott Dowsett President, Master Plumbers
Peter Daly CEO, Master Plumbers
www.plumber.com.au | 7
Industry news
Why celebrate plumbing? The plumbing community has celebrated the vital role of good quality plumbing in health, environmental sustainability and, increasingly, economic prosperity since World Plumbing Day was established by the World Plumbing Council in 2010.
Know the signs of illegal phoenix activity Would you know if a phoenix operator was trying to rip off your business? Know the signs and protect yourself. Illegal phoenix activity is when a new company is created to continue the business of a company that has been deliberately The cost of liquidated to avoid Phoenix to our paying its debts, community: including taxes, creditors and employee entitlements. per year This illegal phoenix activity impacts
$5.13 billion
8 | Australian Plumbing Industry Magazine | Autumn 2019
the business community, employees, contractors and the government. This activity costs the Australian community up to $5.13 billion per year. The Phoenix Taskforce, a group of 34 state and federal agencies are working together to combat it and so far they’ve returned more than $230 million to the community. If you suspect phoenix activity, report it on 1800 807 875 or www.ato.gov.au/phoenix
On March 11 the plumbing fraternity, politicians and the community come together to learn, share knowledge, build connections and find opportunities to collaborate to improve the quality of, and access to, fresh water and safe sanitation. As this date arises it is timely to remember those in the world less fortunate and advocate for further expansion of safe water and sanitation across the globe.
The number of people globally who lack adequate sanitation:
2.6
billion
More information on World Plumbing Day celebrations see page 23 and 39
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Master Plumbers’ 2019 Federal Election priorities
Fighting for positive change We’re advocating to improve safety standards for customers, for better homes and buildings, for a stronger, fairer building industry protecting the health and safety of the community.
Master Plumbers Australia, representing the associations in Australia and New Zealand, is lobbying on behalf of members to deliver positive change for our industry. We have identified five key issues where we want national action and will ensure all parties wishing to form or influence national governments are aware of these.
Lifting standards Master Plumbers Australia Chair Robert Pearshouse said this initiative was about advocating across the political spectrum to lift standards for our members and the community at large. “To build a stronger plumbing industry and a safer community we are calling on all political parties to commit to five national priorities,” Mr Pearshouse said.
10 | Australian Plumbing Industry Magazine | Autumn 2019
“These are critical changes we need to ensure the health and safety of all communities. As experts in our profession, it’s our duty to inform our political leaders of areas where we need to lift the bar nationally. This work is to the benefit of all licensed plumbers and the long-term future of our profession.”
What we want In this article Master Plumbers has outlined the five national issues we will be focussing on. We look forward to your feedback at any time on these issues and our approach as we progress this important national initiative.
1
All plumbing products sold, imported into and used in Australasia must hold WaterMark certification
WaterMark certification is the industry standard for plumbing products in Australia and is there to protect consumers – it guarantees a plumbing product is constructed to a defined quality and standard deemed safe, appropriate and acceptable for Australian use. A licensed plumber must install WaterMark certified products in their work. Yet non-conforming plumbing products are available for sale in retail and trade stores across Australia, are imported into Australia and are used in Australian homes and buildings. These non-conforming products are generally of a poorer quality and build and can pose significant risks to the health and safety of consumers because of flaws in their construction, capability and
durability. They can also include hidden dangers such as extremely high levels of lead. Compliant plumbing products sit side-by-side on the same retail shelves as non-compliant products, giving the consumer the choice of product without explaining the difference between them. This is potentially misleading the consumer and short-changing them in terms of the quality and safety of the products they are purchasing.
OUR CALL TO ACTION We want the Queensland retail model embraced and applied at a national level. In addition, we want to extend this model to make it illegal to import plumbing products that do not hold WaterMark certification into Australia and for it to be illegal to use plumbing products that do not hold WaterMark certification in Australian buildings of any type. This is to safeguard consumers and ensure the building industry delivers better and safer homes and buildings for everyone.
In Queensland, under state legislation, plumbing products can’t be sold in retail or trade stores unless they hold WaterMark certification – Queensland is the only state or territory where this is the case.
As a first step, it should be compulsory for all Australian retailers to display WaterMark certification at point-of-sale to give consumers the information they need to make an informed choice.
We wish to support the introduction of a Watermark Certification program in New Zealand that aligns to Australia.
We wish to support the introduction of a Watermark Certification program in New Zealand that aligns to Australia.
www.plumber.com.au | 11
Master Plumbers’ 2019 Federal Election priorities
2
Introduce stronger national legislation and defined processes to guarantee security of payment for construction industry contractors and sub-contractors
Plumbers, gasfitters and other trades generally work as contractors and sub-contractors in the construction industry and, as such, are down the project chain in terms of getting paid for the work and goods and services they provide. Yet, like any other Australian business, they need cash flow to maintain their operations and are entitled to get paid appropriately and in a timely fashion for the work they do. It’s only fair. This is why security of payment is such an important issue in our profession as it underpins the long-term viability of all plumbing and gasfitting businesses. Existing state legislation and processes relating to security of payment vary but still leave contractors and sub-contractors vulnerable – they focus on protecting prompt payment and fair payment but offer no protection if a company above a contractor or
3
sub-contractor goes out of business. When things go wrong on a building construction project it’s common that the contractors and subcontractors get squeezed on payment or end up not getting paid at all. This is in part why almost 1,700 construction businesses went out of business in the last financial year. Even under current state-based legislation, there are still too many occasions where buildings are constructed, on time and on budget, and yet, many years later, some contractors and sub-contractors are still to get paid. This is unacceptable practice for any worker in Australia, and the construction industry employs one in 10 of Australia’s workers directly. We need national legislation that ensures security of payment for contractors and sub-contractors. It must ensure any company collecting money on behalf of a contractor or sub-contractor must
put this money aside and cannot spend it as they wish. We also need a simple, quick, clearly defined process of recourse to enable contractors and sub-contractors to collect money they are owed in a timely way. Recent construction industry reviews have recommended the introduction of cascading statutory trust accounts to ensure payment to contractors and sub-contractors and this must be closely examined.
OUR CALL TO ACTION The Australian Government should identify the best model to ensure security of payment for construction industry contractors and sub-contractors. The Australian Government should implement legislation at a national level to ensure consistency.
Introduce a Continuing Professional Development program and mandatory minimum four-year apprenticeships across the plumbing industry
Master Plumbers Australia strongly advocates for the introduction of a nationally consistent program of Continuing Professional Development (CPD) for plumbers and gasfitters, as exists in many other professions. We believe accreditation and lifelong learning ensures the future standards of our profession and with it the health and safety of the community we serve. The program should be tied to the renewal of a plumber’s licence to provide confidence in our profession’s ongoing capability. Plumbing is regulated on a state/ territory basis and the scope of
12 | Australian Plumbing Industry Magazine | Autumn 2019
plumbing work varies across jurisdictions, so a national CPD program needs flexibility to cater for these differences. Master Plumbers Tasmania has partnered with the Tasmanian State Government to deliver a state CPD program for plumbers. Master Plumbers associations in other states such as Victoria and Western Australia are already working together to develop voluntary CPD programs based on the Tasmanian approach. The federal government can support and encourage this national cooperative approach through advocacy in all jurisdictions.
As much of our profession is learnt on the job, we also recommend the introduction of a mandatory minimum four-year apprenticeship for all plumbers under the supervision of a qualified plumber. OUR CALL TO ACTION Encouragement of a nationally consistent CPD program linked to the renewal of licensing for plumbers. Mandatory minimum four-year supervised apprenticeships for all plumbers before being eligible to apply for a licence.
4
Bring plumbing industry employment legislation into line with standard business practices
There are shortfalls in current employment legislation in Australia relating to redundancy in the plumbing industry which are unfair to those running plumbing and gasfitting businesses.
remain liable to pay for genuine redundancies, but the scope for these payments must be brought into line with standard business practice.
They fall short of standard business practice and are uncompetitive for our profession.
The Australian government should bring the whole of Section 18 of the Plumbing and Fire Sprinklers Award into line with the National Employment Scheme (NES).
Under current minimum entitlements, a plumbing business is liable to pay redundancy under a very wide range of circumstances. Employers already do and should
5
OUR CALL TO ACTION
Ensure that offsite constructed modules in the construction industry, commonly called pods, are certified by a licensed plumber if they involve plumbing works
The construction industry is evolving and one trend we have seen in recent years is the increasing use of pre-constructed modules (pods) on major building construction projects. These ‘pods’ are self-contained units such as fully fitted bathroom or kitchen units that are put together offsite and then delivered to the construction site as one module, to be fitted as a single unit into the end building. There are two problems here from a safety perspective: • The ‘pod’ must include WaterMark certified plumbing products but if they are not assembled by a licensed plumber there is no guarantee these products have been correctly and safely put together. Currently these ‘pods’ bypass critical compliance testing that an in-situ construction would require for consumer safety. • The ‘pods’ themselves are usually self-contained units,
so a licensed plumber connecting them into the end building has no ability or line of sight to assess that the ‘pods’ do indeed include WaterMark certified plumbing products, and that these products have been assembled correctly within the unit. • The installation of pipes, fittings and fixtures is plumbing and drainage work regardless of whether it is performed on or offsite.
Master Plumbers and Mechanical Services Association of Australia Across Australia and New Zealand, plumbing businesses face similar challenges. There are differences in regulation across state boundaries, but by and large plumbing and business operations remain constant – particularly for companies which work in multiple jurisdictions. Master Plumbers associations are united and working together on the critical national issues which impact our respective members no matter where they are based. We collectively will ensure that all parties wishing to influence the formation of governments are aware of our priorities for reform and improvement of the plumbing industry in Australia and New Zealand. Peter Daly CEO
Master Plumbers Australia comprises the Master Plumber associations of Victoria, Tasmania, Queensland, South Australia, Western Australia, ACT and the Northern Territory, as well as New Zealand. It develops, informs and represents the industry on national issues.
OUR CALL TO ACTION That it be a legislated national requirement that all ‘pods’ involving plumbing works used on any building construction in Australia must be certified by a licensed plumber at the point of the pod’s construction. The current ability to certify complete ‘pods’ under WaterMark must be removed.
www.plumber.com.au | 13
Snapshot
from around the nation Master Plumbers Association Victoria Victoria’s construction sector leads a strong economy Australian Bureau of Statistics recently revealed the value of Victorian building approvals for the year to November 2018 was worth $39.5 billion. For the month of November, the value of Victorian building approvals increased by 8.2 per cent to $3.49 billion. Non-residential building approvals were particularly strong, up 27.1 per cent to $1.4 billion – 14.6 per cent higher than a year ago. Victoria’s residential building sector also continues to be among the nation’s strongest performers, recording the highest value of building approvals in November 2018. Treasurer Tim Pallas said the results showed Victoria’s building sector continued to benefit from the government’s record investment in infrastructure and economic management. “Nearly 427,000 jobs have been created across the state during the Labor Government’s first term – with almost 300,000
of them full time,” he said. While these figures suggested that the current boom in construction would continue for some time, Master Plumbers CEO Peter Daly said the Association would continue to advocate for legislation that provides security of payment for all Victorians carrying out work in the industry. “A lot of construction activity is done by small enterprises and they, like everyone else working in any job, deserve to get paid on time,” Mr Daly said. “It’s critical that the government ensures that benefits of the strong current investment in infrastructure are passed on to those businesses employing workers and delivering those results. All enterprises require a solid cash flow to operate and this is particularly the case for smaller plumbing enterprises which are nearly always subcontracting to larger builders.”
Call for mandatory servicing to stop future deaths Master Plumbers is continuing its campaign to mandate regular servicing and maintenance of all gas appliances by a licensed gasfitter. Master Plumbers CEO Peter Daly said that all gas appliances that are not regularly serviced and maintained have the potential to produce deadly carbon monoxide. “Testing of gas appliances for carbon monoxide requires a complex program of work, including a full service of the appliance and consideration of factors such as the ventilation and ongoing serviceability of the appliance. “The community has the right to expect that they can safely use their heaters and stoves when they need them. Gas appliances require regular maintenance to work effectively, and when this is done by an appropriately licensed and trained professional, users can have the confidence that everything will be in order for the colder months ahead,” Mr Daly said. The call comes a year after the coronial inquest into the carbon monoxide poisoning of Sonia Sofianopoulos in her public housing unit in 2017. At the time Energy Safe Victoria urged Victorians with a Vulcan heritage or Pyrox heritage gas heater to call Climate Technologies on (03) 8795 2462. People living in DHHS housing were directed to call 1800 148 426. Victorians who hold any concerns regarding their gas appliances are urged to contact a licensed plumber who holds an endorsement in the specialised class of Type A appliance servicing.
14 | Australian Plumbing Industry Magazine | Autumn 2019
Find your local association
Master Plumbers & Gasfitters Association of Western Australia T (08) 9471 6661
Master Plumbers Victoria T (03) 9329 9622
Master Plumbers Association ACT Inc T (02) 6112 8630
Master Plumbers Association of Queensland T (07) 3273 0800
Plumbing Industry Association of SA & NT Inc T (08) 8292 4000
Master Plumbers Association of Tasmania T (03) 6272 2199
Master Plumbers & Mechanical Contractors Association of New South Wales T (02) 8789 7000
Master Plumbers and Gasfitters Association Western Australia Aboriginal communities. In addition, the intention is to promote more flexible apprenticeship training options suited to the needs of students from remote communities.
s_bukley / Shutterstock.com
Similar to the AFL SportsReady program which offers Aboriginal sporting recruits the option to complete apprenticeships over an extended period, the MPGA is pushing for more flexibility in the time allowable for remote community students to complete the standard four-year plumbing apprenticeship. This is to cater for the need for students to travel away from their communities to carry out classroom training.
Geldof to help launch remote plumbing initiative A World Plumbing Day event, organised by the Master Plumbers and Gasfitters Association of WA (MPGA) and featuring Sir Bob Geldof as keynote speaker, will be the launch pad for a major collaboration project to improve plumbing and sanitation in remote Aboriginal communities around Australia. Irish activist Sir Bob Geldof will use his keynote address at World Plumbing Day to launch the new initiative. The MPGA, in collaboration with the Indigenous Plumbing and Sanitation Foundation (IPSF), Nirrumbuk Aboriginal Corporation and NUDJ Plumbing, aims to establish a pilot project to improve the quality of plumbing infrastructure and water quality. The initiative will also incorporate a culturally sensitive education component, led by an experienced educator with decades of experience working with
Remote Aboriginal communities endure serious health and social issues related to drinking water and sanitation, not because of a lack of care or responsibility, but because the cost and effort to get plumbers to such remote locations is often excessive. The pilot project will be specifically tailored to the needs of remote communities and is intended to be: • sensitive to the cultural heritage of Aboriginal people and respectful of their beliefs • able to deliver actionable results very quickly • low-cost and innovative • scalable and replicable MPGA CEO Murray Thomas says the pilot aims to establish a practical approach to creating sustainable and permanent improvements to plumbing and sanitation infrastructure and water efficiency, reinforced with culturally appropriate education. “The pilot project will include a comprehensive independent
inspection of the community’s plumbing and sanitation infrastructure to assess fitness for purpose,” Mr Thomas said. “Plumbing and sanitation are the foundation of public health and every Australian.” Mr Thomas said the sheer size of WA and the vast distances that separate Aboriginal communities from each other, and from regional towns, mean the immediate plumbing services that urban Australians take for granted are often unavailable. Research has found that many illnesses and diseases suffered by Aboriginal people could be prevented with improved environmental health outcomes. That includes trachoma, caused by bacterial infection of the eyes and endemic among Aboriginal populations. Australia is the only developed country where endemic trachoma occurs. Middle ear infection, or otitis media, is another endemic health issue. It is thought to affect up to 90 per cent of Aboriginal and Torres Strait Islander children living in remote communities. “Clearly, one way to help would be to give communities clean drinking water and reliable sanitation, coupled with culturally appropriate education,” Mr Thomas said. “Our intention is to show the effectiveness of the program via the pilot at one community, which will serve as a proof of concept to then roll out statewide and nationally. More information can be obtained from the MPGA on mail@mpawa.asn.au www.plumber.com.au | 15
Snapshot
from around the nation Master Plumbers Association Queensland
It’s a big club In support of MPAQ’s nominated charity, Prostate Cancer Foundation of Australia, two men from the plumbing industry who were diagnosed with prostate cancer tell of their experience in the hope that anyone who is apprehensive about being tested and checked will be prompted to do so. Brad Hodgkinson Licensed plumber and drainer (41 years)
Here’s the message if you don’t read on: get your doctor to check your Prostate Specific Antigen (PSA) level. It’s a simple blood test that may save your life; it certainly saved mine.
to come back in three months with the results of another PSA blood test. Guess what? My PSA had elevated now to be a concern. I had no symptoms and would never have known that I had cancer without PSA testing. This was the start of my journey into an unknown future, hoping like hell that what I had was not a life sentence. In the back of my mind I knew I had survived major heart surgery and this one was not going to beat me. I will say that I valued the discussions and support I had from my wife Sandra, family and friends, as it provided a means of dealing with what I was facing.
Here’s my story: At the age of 51 I dodged a bullet having survived major heart surgery (another story for another day.) Given the law of averages of critical defects on the human body, who would have thought I would be faced at the age of 54 with an aggressive prostate cancer. From the age of 40 I visited my GP each year, where he checked my PSA as being normal. In the 14th consecutive year of testing, my PSA elevated only slightly from the previous year. With the slightly elevated PSA result, my GP told me
What followed was being referred to an urologist who performed many more tests, including ultrasounds, MRIs, biopsies and bone scans to find out the severity of the cancer and what type of treatment would be best for me. It will stay with me forever the emotion that Sandra and I shared after receiving the news from our urologist that I had an aggressive cancer. We both recall emotions of blind panic when we couldn’t even talk to the receptionist on the way out of the urologist’s surgery. However, as days went by, a little
Recently I caught up with Kelvin and Ray in Gladstone at a Services Trades Council Forum. We got talking after the forum and thought it would be a good idea to share our personal experience with prostate cancer. We all agreed that it would be great if we could save even just one life.
16 | Australian Plumbing Industry Magazine | Autumn 2019
bit of rationalisation and clearer thought returned, and treatment decisions were made in consultation with our urologist and reading up and understanding exactly what I had. With my Gleason score (the grading system used to determine the aggressiveness of prostate cancer) ranging at seven, there was a moderate chance that the cancer was still confined to the prostate. With the different types of prostate cancer treatments available, my decision was easy. I chose to have a radical prostatectomy (surgery to remove the prostate). All went well with the surgery, with an outcome that the cancer was contained in the prostate (localised) and that some nerves were spared. No further treatment was required. The recovery time after this type of operation is about three months. My PSA level immediately after the operation and today is 0.0 ng/ml, which is where it must stay for the rest of my life. I did return for further surgery late last year as a result of having my prostate out; however, it was nothing life threatening. I now
The only person who will ultimately look after your health, physical and mental, is YOU
understand more than ever that prostate cancer survival varies considerably dependant on early detection and chosen treatment. I know three really good people who have had prostate cancer treatment, all with different outcomes, some good, some not so good. I wish them all well and offer my support to them as a friend. Ray Smith Plumbing Inspector, Toowoomba Regional Council, Institute of Plumbing Inspectors Queensland member I had been watching my Prostate Specific Antigen (PSA) as part of a health program within Toowoomba Regional Council where I work. I was advised by my urologist that if you are active and use or ride machinery you can have a fluctuating PSA. But my father was diagnosed late in 2011 as having an aggressive form of prostate cancer and at this time he told me there was a family history. This was the first I had heard of it! So I informed my doctor and was referred for further tests, which turned out to be biopsied. I was told not to worry, that it may be nothing! You can imagine how a fit 52 year old male feels when he is informed he does have cancer, but it is small
Ask your doctor to check your (PSA) level. It’s a simple blood test that may save your life; it certainly saved mine.
and slow. The next course of action was to discuss with my urologist what I should do. I asked, “If it was you in my shoes, what would you do?” He advised that I should have it out, and I ended up going to the doctor he recommended. I spent a lot of time researching the doom and gloom on the net, sitting in doctors’ rooms, and meeting men who I knew, young and old, in my home town. In Brisbane I saw dozens more again of all ages. I underwent a robotic procedure in Brisbane and recouped over eight weeks. I had been told that I had clear margins and didn’t require chemo or radiation treatment, which in itself was a great relief, but there are many items to deal with physically and mentally with this cancer. Fortunately, I had great support from Roma my wife and my family and friends. I was recovering and discovering that so many were not as lucky as I was, so I determined that I would be open to discuss my cancer so that others may get better outcomes through early detection. The Toowoomba Council did an article within the council’s system as I fitted the demographic for most of the council’s employees and the plumbing industry. I can say that I know of four blokes personally that have thanked me for my openness
and advice to them, and I know there are more that have followed up with check-ups and treatments. For me, now six years postoperation, I have a nil reading PSA. Some things don’t work like they used to, and I have a few scars to talk about, but that’s aging. Life is great. I have travelled overseas many times, seen my grandson born and had many good times and made many memories with lots of people I call family and friends. And I haven’t finished doing that yet! The things I have learned on the way are to talk about family history and support others. Start PSA testing from late 40s, earlier if there is a family history, even if it is a history of breast cancer as that increases your chances of getting the cancer. The only person who will ultimately look after your health, physical and mental, is YOU. So look after yourself and, surprisingly, others will want to help.
For more information, Prostate Cancer Foundation of Australia is there to help. You can visit www.prostate.org.au or free call 1800 220 099.
www.plumber.com.au | 17
Snapshot
from around the nation Master Plumbers Association Tasmania Sadly, as I write this in mid-February, much of Tasmania is still facing bushfires, with some parts of our Huon region actually running out of water and unable to fight fires. In situations like this, it begs the
question of why our regulators don’t introduce legislation for new residential builds to have their own water catchment systems. So much fresh water is being lost in the wet seasons and yet we don’t have
CPD update
What causes psychological injury?
We have delivered our first CPD session for the year in Burnie. This session was focused on work-related psychological health and safety. Sadly, our industry has the third highest suicide rate by occupation. Because of the importance of this issue and the need to speak up, let’s take a look at the problem.
• Poor support
A psychological injury (previously known as ‘stress’) is a disorder diagnosed by a medical practitioner and includes a range of symptoms and to varying degrees including emotional, physical, cognitive (thinking processes) and Workbehavioural symptoms related which then negatively psychological affect the way we health and live and work; our safety relationships with others and our general well-being. How big is the problem? • 60% of psychological disorder workers’ compensation claims are awarded to workers aged 40 and over. • $543 million is paid in workers’ compensation for work-related mental health conditions. • 20 times more sick days per month taken by workers with severe depression. Source: Safe Work Australia 2018
18 | Australian Plumbing Industry Magazine | Autumn 2019
• Poor workplace relationships • Poor environmental conditions • Low role clarity • Poor organisational change management • Low recognition and reward • Poor organisation justice • High job demands • Low job demands • Low job control • Remote / isolated work • Violent or traumatic events Where to go to get help Your Association (Master Plumbers)
enough to fight life threatening fires in the dry season. We are clearly not making the best use of water resources and that has significant consequences, which we have seen this summer.
General Members meetings Friday 15 March, 2pm to 4pm Work & Training, 56 Oldaker St, Devonport Friday 19 July, 2pm to 4pm TasGas, 5 Kiln Court, St Leonards
Roofing and Cladding Division meetings Wednesday 20 March, 2pm to 4pm MPAT House, Derwent Park, Hobart Wednesday 26 June, 2pm to 4pm TasGas, 5 Kiln Court, St Leonards
Our new President and Treasurer
WorkSafe Tasmania www.worksafe.tas.gov.au Beyond Blue www.beyondblue.org.au 1300 224 636 Mates in Construction matesinconstruction.org.au 1300 642 111 Black Dog Institute www.blackdoginstitute.org.au Lifeline www.lifeline.org.au 13 11 14 SANE www.sane.org 1800 18 7263 Suicide call back service www.suicidecallbackservice.org.au 1300 659 467
MPT welcomed the new President, Anthony Balik, Twentieth Century Plumbing, and the new Treasurer, Cath McDowell, Howrah Plumbing. Both Anthony and Cath have a wealth of experience in the industry and are wonderfully committed to the Association. Master Plumbers Tasmania Executive Officer Angela Bennett
Questions on the job?
has you covered Industry experts on speed dial? That’s right! Just one of the many benefits of being a Master Plumbers Member.
Scan the code below with your phone camera to sign up today.
Open to Third generation plumber, Andrew Heath, is proof that agile business methodology, listening to customers and good planning are the pipeline for success.
Does that mean he has turned his back on what was his bread and butter business? No, but his agility has meant he now has a solid, high-margin business for nine months of the year, while keeping his quality trade running to enable him to thrive for the remaining three months.
“I did well at school and had a lot of options open, so it wasn’t the only occupation I considered,” he said.
But let’s go back to the beginning. How did Andrew start in plumbing?
Andrew Heath is in the business of evolution. The third generation plumber refuses to stand still. Since he started his own business 16 years ago, he has gone from a one-man plumbing outfit to a small business that specialises in the end-to-end delivery of gas log fireplaces.
“My dad and grandfather did it so I was always around it,” Andrew explains.
The opportunity of three generations working together in a business that was established in 1952 also appealed to Andrew. His grandfather and father both had children young, so Andrew worked in this set-up for 11 years.
20 | Australian Plumbing Industry Magazine | Autumn 2019
From the age of 10, Andrew would go onsite with his dad and give him a hand. While plumbing was a natural pathway for Andrew, he did not just “go with it”.
“In Year 10, I came to the realisation that if I had a focused mind-set, the plumbing trade would lead me into running my own small business, so I jumped out of school and into an apprenticeship.”
Andrew then decided to cut his own path in the plumbing industry. So, after some overseas travel,
During our time in business we have moved from 100% plumbing and maintenance to 80-85% gas log fireplaces, facilitating the need for The Gas Log Fire Company
opportunity he decided to “have a crack” at running his own business.
confidence does get rocked when the phones are not ringing.”
Andrew admits he and his new wife, Louise went in naively. They brainstormed a business name, Freshwater Plumbing and registered it for $70.
“It was that typical story, you are either caught with not enough work or fighting to get enough people to do that big building job.”
The next day 2000 fliers were designed and printed and together with Louise, he walked the streets putting leaflets in the letterboxes of potential clients. The next day, they got their first call. “We got that first customer and the business went from there,” Andrew remembers. “Personally in those early days, I had confidence knowing what I was doing and knowing how to do a good job. But your
The latest and longest niche for the Fresh Living Group is gas log fires. Andrew found there was no one doing end-to-end design, distribution and installation of these popular home additions.
That is why Andrew knew he needed to find a niche. Not just one niche but niches or opportunities that he would move into as they appeared.
“During our time in business we have moved from 100% plumbing and maintenance to 80-85% gas log fireplaces, facilitating the need for The Gas Log Fire Company.
There have been numerous niches over the years including a focus on rain water tanks and then a shift to solar hot water, which proved popular. These moves forced the plumbing business to be renamed Fresh Living Group. The idea: “to incorporate all the various trades”.
You have to keep moving and evolving. You can never stop learning and listening, and you have to be open to trying new ideas and systems. You can’t be expected to know everything as a small business operator – surround yourself with professionals to guide you.” www.plumber.com.au | 21
You can’t be expected to know everything as a small business operator – surround yourself with professionals to guide you
Andrew’s tips for people starting out 1 Introduce strong accounting protocols from the start “In the early days we were not tracking our money well, we didn’t really know what was coming and going. Now we have separate business accounts and strong protocols around deposits, invoicing, budgeting and forecasting.” 2 When you become a boss, learn about leadership “I’m a big believer in self-development. I left school at 16 but I’m constantly learning not only through physical learning but learning about our trade and business, which never stops changing. Every year there are new regulations, new tools, products and techniques.”
22 | Australian Plumbing Industry Magazine | Autumn 2019
3 Have a vision and a mission
5 Hire slowly, fire quickly
“Set up what you want to achieve from the start. It makes it easier to recruit if you know your purpose and your values. It also makes it easier to set systems, methodologies, expectations and training, rather than shooting in the dark.”
“It is best for everyone to move on if the relationship is not working out. The employee gets to seek new opportunities before they get committed and you don’t invest in them if it is not the right fit.”
4 Work out what marketing works and keep evolving it “In the start it was all about pamphlets and local media, now it is about building your story, being authentic, communicating who you are and what problems you can solve. Louise now gets most of our new clients through social media marketing and SEO (Search Engine Optimisation).”
6 Listen to the clients; really listen “The way we find new opportunities is by listening to the clients. When we got into rainwater tanks we heard our clients say they wanted the right colour, the right material, trees pulled out, rainwater hooked up to toilets. We found them the solutions to all of their needs and we communicated well. Now our business is 50% repeat clients.”
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I don’t give a damn ‘bout my reputation. You’re living in the past, it’s a new generation. Joan Jett
Protect your reputation 24 | Australian Plumbing Industry Magazine | Autumn 2019
Crisis communication expert Tony Jaques provides his tips on how to guard one of your most valuable assets. Way back in 1980 American rocker Joan Jett launched her career singing: “I don’t give a damn ‘bout my reputation. You’re living in the past, it’s a new generation.” It helped her become the Godmother of Punk, but it surely would be terrible advice for any company trying to succeed in business. The reality is that reputation is your greatest uninsured asset. A study by Aon, which surveyed over 1,400 risk management professionals in 60 countries, identified damage to reputation as the single biggest risk which companies face. And according to an Economist Intelligence Unit study, reputation risk is nearly three times greater than the risk of terrorism or natural disasters, and far surpasses regulator, human capital, IT network and market risks. However, a recent Deloitte report revealed the worrying fact that only 19% of executives were confident in their own organisation’s ability to protect against and respond to reputation risk.
Randy Miramontez / Shutterstock.com
Although reputation is very obviously important to global brands and sports stars and celebrities, it can be just as important to specialist businesses and small family concerns. Reputation is often measured in the value of company shares, and experts around the world believe 50-70 per cent of a company’s market value is attributable to reputation. Yet it’s also important for small organisations or companies which are not traded on the stock exchange. Their market value is not as easy to assess, but we know for sure that people want to do business with companies they like and trust, and that’s the value of reputation.
In fact that’s what reputation is. It’s the cumulative perception of all stakeholders – such as customers, suppliers, employees, regulators and the media – based on their experience and contact with you. It may even be based on a perception which is untrue or unfair. Moreover, reputation is built up over time by consistent performance and behaviour, not by short term actions or corporate advertising. But it has been proved over and again that years of positive reputation can be destroyed in days or weeks by unacceptable or improper behaviour. This brutal truth was captured by Warren Buffet, one of the world’s richest and most successful businessmen, when he famously said: “It takes 20 years to build a reputation and five minutes to ruin it. If you think about that you’ll do things differently.” Importantly, being smaller is no protection against bad reputation. Indeed, bad reputation distinguishes an organisation from the rest of the pack a lot more than a good reputation does. Reporters, customers and commentators are far more likely to focus on the bad stuff you’ve done rather than the good performance you have been working on. So you are best advised to expend effort in protecting your reputation and avoiding a bad reputation rather than setting out to create a good one. After all, brand is what you say about yourself, reputation is what others say about you.
It takes 20 years to build a reputation and five minutes to ruin it. If you think about that you’ll do things differently.
In other words your reputation is in the hands of others. You can’t control what other people think and you can’t make them like you. But you can control some of the
factors which contribute to how your reputation evolves. So, apart from running your business well and providing great products and service, how can you protect your reputation? 1 Listen to stakeholders Everyone can think of a company which ignored a legitimate concern – for example about bad service or faulty products – and found their reputation being trashed in the media or in the industry. Even if the complaint is not legitimate it shouldn’t be ignored. When a woman posted a photo on Woolworths’ Facebook page complaining about rotten avocados she claimed to have bought from a Sydney suburban store, some sharp-eyed folks in the company’s social media team recognised the photo from two years earlier. They responded; “Hey (name redacted), we think you may have taken your photo from another customer’s Facebook post” along with a link to the original complaint. The story went viral around the world, with customers and commentators applauding the company and pouring scorn on the failed scammer. While not every company can employ a full-scale social media team, even a small business needs a proper process to listen and respond to all stakeholders in all contexts, not only online. 2 Recognise that bad reputation can be contagious The recent Australian Banking Royal Commission provided stark evidence that criticism of some banks quickly damaged the reputation of every finance company. Remember that a major crisis affecting one company can damage the reputation of the whole industry. For example, the Toyota recall crisis in 2009 led to a temporary slowdown in sales of all Japanese car brands. An industry-specific problem can damage your reputation, even if your company wasn’t involved: which is a powerful reason for a strong industry association. www.plumber.com.au | 25
3 Don’t try to hide criticism It might be tempting to remove online posts which are critical or negative. But trying to cover up or remove comments can make it look as if you don’t care about customers. When a tourist coach crashed into a low bridge in Melbourne and seriously injured some passengers, the first response was to tape over the company name on the side of the damaged vehicle and, in the face of online criticism, the company temporarily shut down its Facebook page. The crash was bad enough, but the response to it was what helped inflame the headlines. 4 Manage your social media accounts carefully Although a reputation can be destroyed at the speed of a Tweet, too many companies assign social media responsibility to the most junior person in the office. Not long ago the Virgin Australia Twitter account sent an obscene message about Kanye West to its 240,000 followers. Naturally the post sparked national and international attention before it was taken down, and it later emerged that a junior staff member at their media agency accidentally posted to the wrong account. Or consider the debacle during the US election when a patriotic poster for Donald Trump showed “brave soldiers” superimposed into a picture of the American flag. Problem was that they were in Nazi uniform and it turned out to be a stock photo of SS re-enactors. Unsurprisingly Trump blamed “a young intern”. While it’s all too common to blame some un-named junior staffer – and genuine mistakes do happen – inexperienced people should not be in charge of social media and promotion. You wouldn’t appoint the admin assistant to speak to the news media on behalf of the organisation. Yet posting a Tweet is equivalent to having a news conference with the world. Most organisations have a clear policy on who can speak on its behalf when it comes to the traditional media, and the training 26 | Australian Plumbing Industry Magazine | Autumn 2019
they need. Exactly the same should apply to social media. You need very clear policies about who can post online, and who approves all posts.
A practical checklist to help protect your reputation
Even for a small company it’s important to have an effective social media presence. It doesn’t need to be sophisticated or extensive, but it does need to be appropriate for your needs. There’s nothing worse than scrambling to establish a Twitter account or Facebook page when your reputation is already under attack.
While reputation is based on what other people think about you, your products and your services, there are some steps you can take to help protect your reputation.
5 Be a reputation leader When it comes to the reputation of an organisation, a strong CEO can be a valuable asset. Recent research showed that there is a direct link between company performance and the CEO being publicly active and visible. At the same time poor executive performance or behaviour can be a costly liability.
Develop an effective mechanism for listening to customer feedback. Implement an agreed protocol for promptly responding to complaints or critical comments. Build and keep updated an appropriate social media presence. Ensure your social media officer is trained and experienced. Monitor traditional media and social media for what people are saying about you.
Think of the unimpressive showing by some of the bank executives who appeared before the Banking Royal Commission and the impact on reputation and share value. Or think of Tesla CEO Elon Musk who posted a tweet last year suggesting that one of the Thailand cave rescuers was a paedophile, and Tesla shares fell by over $2 billion. He later falsely tweeted that he had financing to take the company private. When the SEC filed a lawsuit, Tesla shares lost more than $7 billion in value, and Musk and the company each agreed to pay $20 million to resolve the case.
Make sure your employees know who to tell when they see or hear something negative.
Your organisation might not be a global brand like Tesla, but good leadership is just as important to the way people think about your business.
These steps won’t guarantee you a positive reputation. But they are a good place to start.
So, when budget time comes around and you are looking hard at your marketing budget, or the cost of social media presence, or hiring good customer service staff, ignore the advice of Rock Queen Joan Jett that reputation doesn’t matter. Instead listen to American selfimprovement guru Brian Koslow: “There is no advertisement as powerful as a positive reputation travelling fast.”
Dr Tony Jaques is a Melbournebased crisis expert and Director of Issue Outcomes Pty Ltd (www.issueoutcomes.com.au). He writes the e-newsletter Managing Outcomes and his latest book is Crisis Proofing: How to Save your Company from Disaster (Oxford University Press, 2016)
Survey customers to find out what they think about you. Foster relationships with respected third party experts who can help if needed. Actively support social responsibility beyond just day-to-day business. Designate and train spokespersons to intervene when things go wrong.
www.oup.com.au/books/highereducation/management-andmarketing/9780190303365-crisis-proofing
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www.plumber.com.au | 27 CAU0179_Press_123x185.indd 1
25/1/19 3:11 pm
Invest in
yourself
28 | Australian Plumbing Industry Magazine | Autumn 2019
Those earning the average Australian wage ($80,000) are in the top 0.28% of the richest people in the world. Yet, there are Scott Pape is Australia’s legendary financial expert best known as the Barefoot Investor. Recently, he chatted to Master Plumbers’ Daniel Carroll on the new podcast, Masters Plumbers Radio, about the importance of understanding your money. SCOTT We go through 2,300-odd
SCOTT This book was written after
days of school from prep to year 12, and really, not one of them is about financial education. Tradies can earn really good dough, they can be in a better position than a lawyer that goes to uni for five or six years but if they blow it all, they’re no better off.
I was caught in a bushfire on the farm. We lost everything that day.
DANIEL You’ve inspired what has been referred to as the biggest financial cult in Australia. When the idea for your book came about, did you have any idea how it was going to kick off? SCOTT No. I basically sketched
out how I would manage my money: I don’t like having a lot of debt, I hate paying bank fees and I think the finance industry is very good at flogging you stuff. What I wanted to try and do through the book is give everyone some financial confidence. DANIEL World-renowned marketer, Seth Godin, is quoted in the front of your book as saying that your story about the apple tree is worth the cost of the book alone. Are you able to give us a summary?
Everyone’s going to face their own financial fire at some stage, whether it is becoming an apprentice and not earning a lot of money, whether it is getting laid off from work because there’s a downturn or whether it is getting a divorce. When I faced my fire everything was burnt, it was a mess. What we decided to do was to plant an apple tree. The idea was we would give it some water, nurture it. We knew that over the long-term, that was going to grow. We kept watering it. Years on, it’s now producing really nice apples. In 30 years’ time, my grandkids are going to be swinging on that apple tree and it will last for decades and decades. The analogy is that if things are completely messed up and you don’t know where to start, you plant an apple tree – you start putting some money in savings and it will grow.
so many Aussies out there living paycheck to paycheck. What are we doing wrong? Just like compound interest is the eighth wonder of the world. You don’t expect it to grow amazing apples within the first week, but over 20 years, it does something really amazing. The stock market, your investments and your houses are just like that. If you give it enough time, it will produce amazing fruit. DANIEL The Australian Bureau of Statistics reports that those earning the average Australian wage – around $80,000 – are in the top 0.28% of the richest people in the world. Yet, there are so many Aussies out there living paycheck to paycheck. What are we doing wrong? SCOTT The problem is, we don’t
compare ourselves to people in Africa, we compare ourselves to our neighbors and our mates. Our neighbors and our mates could be financially screwed, but they look good because they’re driving a brand-new Hilux and they’ve just got a jet ski. That guy that’s got the Hilux, he may owe more money www.plumber.com.au | 29
on it than it’s worth. The jet ski could have been something that he’s borrowed for as well. So he may be all show and no dough. DANIEL Why should we be more proactive with our superannuation and is there anything that tradies can do differently to prepare themselves for life after work? SCOTT Superannuation is one of
the biggest tax lurks in Australia, right? There’s about $30 billion a year in fees that are whipped out of our super accounts and given to finance industry people, and most don’t outperform a basic benchmark. They don’t do a good job but that’s because no one gives a crap. Most people spend more time on their footy tips than their super. If you spend even a couple of days on this, or evenings, with a beer … you can save tens of thousands, if not hundreds of thousands of dollars by the time you retire. For a lot of tradies, your first super will be with Cbus. Not a recommendation, but I actually think they’re pretty good. They’re an industry fund, so they’re a not-forprofit fund. What I think is good with Cbus is they tend to have good insurance because you guys need good insurance. DANIEL You say that the goal of The Barefoot Investor can be summed up in one word – control. Yet, I see so many apprentices, friends and family, enter a trade, and they don’t understand that idea. SCOTT What I would say is having
all your pay go into one account is a recipe for disaster. Because what you will do is keep tapping your card until the point that it stops beeping. Most people do that, you know? They’ve got one bucket and it’s got a leak. One of the other things that I have suggested, again, in my book, is that idea of setting up different buckets of money. I narrowed my spending down to basically three buckets. So any dollar that comes in, I have an idea of where I put my money. One of the things that I do that I’m kind of maybe semi-famous for is 30 | Australian Plumbing Industry Magazine | Autumn 2019
to have a Mojo Bucket so that if anything bad happens, I’ve got the money there. The same thing applies to small business to cover tax obligations and GST. I always make sure that I siphon some of the money that I get paid into that account. The thing that I find, is that there’s a lot of people who’ve worked really hard in their trades that get to the age of 60 and they’ve got nothing to show for it. At that stage, it’s too hard to make back. So if you can get yourself sorted now and enjoy yourself, enjoy your money, just make sure that there are savings and trade offs and get yourself a financial plan.
Listen to the full interview by scanning the QR code below with your phone camera. If you would like to hear from other experts in future episodes of Master Plumbers Radio, email podcast@plumber.com.au
Cbus makes super easy for your business We are here to meet your business’ super needs by providing: simple and easy super administration reliable service and support a strong super fund for you and your employees Contact Daniel for your business super needs Daniel Tentser Business Superannuation Consultant, VIC
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Read the relevant Cbus Product Disclosure Statement and other related documents to decide whether Cbus is right for you. Call 1300 361 784 or visit www.cbussuper.com.au for a copy. Cbus’ Trustee: United Super Pty Ltd ABN 46 006 261 623 AFSL 233792 Cbus ABN 75 493 363 262.
www.plumber.com.au | 31
How to get paid Chasing payment takes time and costs money but there are solutions, Matt Reynolds explains a new regime that could help you in the new financial year.
Whoever has the money makes the rules and therefore has the power too, it is the golden rule of any transaction.
A plumber came to me recently concerned about the amount of money he had outstanding for the work his company had completed, and it was beginning to take its toll. If you own your own business, you probably know what I’m talking about. Firstly, I know there’s rules, including the regulations and legal rights 32 | Australian Plumbing Industry Magazine | Autumn 2019
governing payment procedures but let’s face it, they get broken all the time and there’s no joy in trying to convince crooked people to do the right thing. I’d rather refine the way I operate to avoid these stressful situations entirely and get my money. The only courtroom I want to know anything about are the ones I see on Law and Order.
Here’s what I told him about money and the business of plumbing. Whoever has the money makes the rules and therefore has the power too, it is the golden rule of any transaction. Think back to when you were a young child and wanted a skateboard, new bike or a remotecontrol car. You had to beg Mum and Dad because it was the only
If you do a job and walk away without collecting payment, the baton has been passed, the customer has the leverage and you’re in a losing position.
option, they had the money, made the rules and had all the power. Fast forward a decade or two and many of us have graduated to a higher level of begging. Substitute Mum and Dad for Client X who still hasn’t paid for their hot water service that you installed four months ago, and you quickly realise it’s the professional equivalent of the exact same problem: you need money and it can only come from one place. The game is the game and success is enjoyed as you become a better player. So, the real question for you and your business is in what position do you want to play? Do you want to write your own ticket or remain at the mercy of others? Let me explain. Simplified, and from the perspective of a business owner, the typical flow of a plumbing transaction goes something like this: a customer has a request and sends you the job, you survey the job, buy required materials, organise the labour, complete the job and send the invoice off to the customer. Then, in most cases, you pray. Let’s think about this: Does it really make sense to invest your time, energy, effort and money to solve your customer’s problem before they are required to invest in the transaction? It certainly doesn’t to me. There’s a reason you can’t go and buy a hamburger or a pair of sneakers and ask them to send you an invoice later. Retailers know some people will forget to pay or refuse to pay later, so they don’t take that risk.
Too often, plumbers get caught trying to be banks. If you are not collecting payment at the time you complete your jobs, you become a bank by default because you are funding jobs as well as completing them. Furthermore, you’re probably not charging for that financing either, its lose-lose. Someone once told me “Banks are called banks because they are banks, plumbing companies are not called banks because they are not banks!” So, how do you avoid becoming a bank? Put simply, you don’t allow yourself into a position where a customer has leverage over you. If you do a job and walk away without collecting payment, the baton has been passed, the customer has the leverage and you’re in a losing position. Even if the client does eventually pay, you still have to finance the job in the meantime. Again, you’re not a bank. You can solve this problem very easily by setting the rules of engagement BEFORE you invest in the transaction. For large jobs, that will probably involve written paperwork but for tradies in the service and maintenance sector, it’s an easy conversation. Let’s assume Client A calls on a Saturday afternoon with a leaking pipe. Instead of dropping the fishing rod and sprinting to the truck, let them know what they should expect before you head to site. Tell them what your fees are, explain that you will take payment on completion of the job and the ways in which you take payment. Then, ask which method they will be using to make payment. It’s that easy.
out all those bad people before you engage with them. For example, if a client (or potential client) calls and then questions your rates, invite them to call around and check other companies first. If Client A is worried about paying before her leaking pipe is fixed, there’s a fair chance they’re going to be questioning it a whole lot more four weeks from now when the invoice arrives, and they no longer have a pressing problem to solve. I know someone’s going to read this article and think “What the heck? This will never work for me in my business, with my customers.” And you might be right, which means you’re left with a choice; either change your ways and ditch your Banks are called non-complying customers or quit banks because they complaining, get used are banks, plumbing the stress and living companies are with money worries not called banks because it’s not going because they to change. Save your are not banks! energy and go dig another under-priced hole. In my experience, almost all payment problems originate before the job even starts. If you’re an honest person, do good work and charge accordingly, then you deserve to be paid. There’s plenty of people who want something for nothing, but you don’t have to work for them. The plumber I helped is enjoying having control over his cash flow. It’s a different game when you collect your money before you have to pay your expenses. Play a game you can win.
Now, does the method guarantee you get paid every time? In my experience, it does. Not because bad people start doing good things with their money, but because you weed
From the trenches Matt Reynolds is an award winning plumber who writes about the game as an industry insider. You can connect with him on Twitter @MrMattReynolds or find him as the Director of XRM Plumbing Services on LinkedIn. www.plumber.com.au | 33
Get finance fit H&R Block’s Mark Chapman provides tips to get your small business in shape this new financial year. Holiday periods can be a stressful time for small businesses. Cash flow often reduces substantially but costs typically stay the same, which is why so many small businesses experience severe financial difficulty in between January and March, and after the upcoming Easter break. So, as we look forward to 2019, here are my tips to surviving the business slumps and setting your business up for a prosperous new financial year.
Make sure you invoice before holiday shutdowns If you don’t want the festive cash flow drag to flow into the new financial year, make sure you invoice for all work done before the a shut-down period starts; preferably well before. If you’re lucky, customers will pay before the shutdown.
Avoid big-ticket purchases If you’re thinking of buying large items of plant or equipment for your business, avoid making the purchase until your cash flow is stable. You don’t want to be faced with a hefty bill for a new item of plant which you can’t pay until revenues picks up. 34 | Australian Plumbing Industry Magazine | Autumn 2019
Collect your debts In relation to invoices already issued, try to get as much cash in as quickly as possible. With many customers’ accounting departments closing for between two and four weeks during Christmas, and one week at Easter, you know you won’t be getting paid at any point in that period so chase your debts now and chase them hard.
Don’t raid the tax and super piggy bank With so many public and staff holidays between now and the end of April, not to mention long hours in the office, it can be easy to overlook the payment of taxes such as GST as well as superannuation. No matter how tight your cash flow, set aside adequate funds in a holding account, and don’t dip into it. The ATO does not make a friendly creditor!
the much vaunted “freedom” of running a business rather than being employed can lead to the exact opposite of freedom. Working days expand, leisure and family time disappears as weekends and evenings are spent keeping on top of the essential tasks. On top of doing what you need to do to run the business, sometimes something has to give and often that’s looking after the accounting side of your business. But failing to stay on top of your bookkeeping can have severe repercussions. Not only can it affect your ability to meet your GST and income tax obligations, it can also mean that you simply don’t have a firm handle on how well your business is actually performing. Sooner or later this can lead to trouble with creditors and banks. So, make investing in professional bookkeeping services a new financial year’s resolution for 2019. Not only will you get valuable time back which can be spent in doing the things you do best, like making a profit, you’ll have access to a qualified resource who understands the needs of your business, your reporting obligations and the technological solutions to give you the end-to-end solutions you need.
Invest in a bookkeeper Running a small business isn’t easy. In between generating turnover, purchasing supplies and managing staff, many business owners find that
Note: H&R Block’s advice is for general use. Always seek tailored information to suit your circumstances.
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www.plumber.com.au | 35
Marsh Advantage Insurance Promotion
Don’t get yourself in
hot water
Marsh Advantages explains the importance of Personal Accident and Illness Insurance to keep yourself out of trouble. In the blink of an eye, your entire world could dramatically change. You could receive a lucrative new client or even win the lottery. However, you could also find yourself in a traumatic work-related incident that has a significant impact on your ability to continue to work. We all love to dream about how our life would positively change if we did receive a new opportunity or win the lottery. But despite hearing constant stories of accidents and incidents occurring in the workplace or at home, we may think, “That won’t happen to me”. It may even surprise you that, according to Safe Work Australia, there were 4.6 fatalities per 100,000 labourers in 20171. This means that you have a better chance of experiencing a work-related incident as opposed to winning a share in the Australian Powerball Jackpot lottery at a 1 in 76,767,600 chance2. From slipping on tiles to falling from ladders, workplace injuries are sometimes unavoidable. While safe work practices can be implemented to minimise the risk of injury on the job site, many plumbers still find themselves the victim of injury. These injuries could result in a loss of income or business, should you find yourself unable to work. In fact, Safe Work Australia reported that in 2014-2015 the median compensation paid to labourers as a result of serious claims was $9,800, representing a 123% increase since 2000-20013. So, how can you avoid
finding yourself in hot water (sorry – that was too easy), should a serious injury or accident unfortunately occur? A Personal Accident and Illness policy may provide peace of mind in the event of workplace injuries or illness. Such policies could minimise the financial burden caused by a long-term absence from work. Should an incident occur, your income may be protected with a specified weekly benefit, generally equating to 75% of your normal income. Depending on your chosen policy, you also have the option of either a 52 or 104 week benefit period to provide enough coverage in the event that workplace accidents or illnesses result in long term absenteeism from the job site. Like any policy, waiting periods and exclusions may apply. It is advised that you read the PDS and discuss your individual needs with our brokers prior to taking out cover. While some individuals may think they can rely on their superannuation to help ease the financial pressure if they unexpectedly become victim to a workplace injury or illness, it is important to be aware that this is only the case under the provision that such protection is incorporated within their superannuation. If such assistance is attainable through one’s superannuation, it is mandatory to meet one of the strict conditions of release as per the Superannuation Industry (Supervision) Act 1993 in
order to qualify for payment. Comparing Expert also suggests that if these conditions are met, there is a possibility that you may be underinsured, meaning that you may not be sufficiently covered during your time off work4. Even more pertinent, as the financial year draws to an end, you may not be aware that you can generally claim the cost of the premiums that you pay for a Personal Accident and Illness Insurance policy against the loss of your income, as advised by the Australian Taxation Office5. In saying this, a deduction cannot be claimed for a policy that provides compensation for a physical injury or if the policy is taken out through superannuation. You should check with your tax agent to confirm. In the blink of an eye, your whole world could dramatically change. However, you could be covered for Personal Accident and Illness by Masters Plumbers Insurance Brokers. For more information or a quotation, please contact us on 1300 300 511. 1 https://www.safeworkaustralia.gov.au/book/ work-related-injury-fatalities-key-whsstatistics-australia-2018 2 https://www.sbs.com.au/news/one-mathslecturer-on-whether-you-should-enterpowerball 3 https://www.safeworkaustralia.gov.au and search workers compensation statistics 2015-16 4 https://www.comparingexpert.com.au/ income-protection/through-super/ 5 https://www.ato.gov.au/individuals/incomeand-deductions/deductions-you-can-claim/ other-deductions/income-protectioninsurance/
Notice: Master Plumbers Insurance Brokers (Aust) (MPIB) is a trading name of Marsh Advantage Insurance Pty Ltd (ABN 31 081 358 303, AFSL 238 369). MPIB arranges the insurance and is not the insurer. This article contains general information, does not take into account your individual objectives, financial situation or needs and may not suit your personal circumstances. Any statements concerning actuarial, tax, accounting, or legal matters are based solely on our experience as insurance brokers and risk consultants and are not to be relied upon as actuarial, accounting, tax, or legal advice, for which you should consult your own professional advisors. For full details of the terms, conditions and limitations of the covers and before making any decision about whether to acquire the product, refer to the specific policy wordings and/or Product Disclosure Statements available from Marsh Advantage on request. The Master Plumbers and Mechanical Services Association of Australia (MPMSAA) receives a financial benefit when a policy is arranged by Marsh Advantage, enabling it to continue to provide further services to the plumbing industry. LCPA: 18/0074 36 | Australian Plumbing Industry Magazine | Autumn 2019
PLUMBERS LIABILITY INSURANCE Marsh Advantage Insurance specialises in plumbers liability insurance. Over 4,000 Australian plumbers’ insurances are currently placed through us. Your cover can be arranged immediately over the phone. To get a quote, call 1300 300 511 or visit trades.marshadvantage.com.au/plumbers Marsh Advantage Insurance are endorsed by the Master Plumbers Association of Australia. Marsh Advantage Insurance Pty Ltd (ABN 31 081 358 303, AFSL 238 369) (‘Marsh Advantage’) t/a Master Plumbers Insurance Brokers (Aust) a trading name of Marsh Advantage, arranges the insurance and is not the insurer. This advertisement contains general information and does not take into account your individual objectives, financial situation or needs. For full details of the terms, conditions and limitations of the covers, refer to the Product Disclosure Statement (PDS) which is available from Marsh Advantage. Marsh Advantage uses the Master Plumbers and Mechanical Services Association of Australia (MPMSAA) logo under license from MPMSAA (ABN 56 296 473 997). MPMSAA receives a financial benefit when a policy is arranged by us, enabling it to continue to provide further services to the plumbing industry. LCPA 18/0032. S18-0843.
Member news Spotlight on World Plumbing PICAC will hold its annual World Plumbing Day Plumbing and Sprinkler Fitting Apprentice Skills Contest on 8 March. The Apprentice Skills Contest is an opportunity for third and fourth year apprentices and recently qualified plumbers to test their skills against other outstanding apprentices.
Most importantly though, the Apprentice Skills Contest gives us all an opportunity to celebrate the fantastic young talent coming into the industry. For more information, email events@picac.vic.edu.au
World Plumbing Conference 2019 The triennial World Plumbing Conference (WPC 2019) is the biggest event on the international plumbing community calendar and will be hosted in Melbourne from 11-13 September 2019. The World Plumbing Conference offers a unique opportunity for the global plumbing community to come together for knowledge sharing, networking and professional development. The conference is run by the World Plumbing Council as part of their commitment to achieving the best possible plumbing for the world through growth and development of the world’s plumbing industries. Early bird registrations for WPC 2019 close on World Plumbing Day, 11 March. So register now to take advantage of the discounted pricing. worldplumbingconference.com
Early bird registration closes 11 March World Plumbing Day, 11 March How to celebrate World Plumbing Day: • Post on your social media accounts or send out a newsletter about World Plumbing Day. • Share some facts about how plumbing improves the world. • Hold a special event, such as a breakfast or morning tea, to celebrate.
38 | Australian Plumbing Industry Magazine | Autumn 2019
Head to worldplumbing.org for more World Plumbing Day inspiration
Master Plumbers Radio Master Plumbers Victoria is making life easier for plumbers, bringing the experts to your ears through a series of new podcasts. Episode one explores ‘The financial Apprenticeship’ with Scott Pape AKA The Barefoot Investor. Scott joins MPR to discuss his million-plus selling books The Barefoot Investor and The Barefoot Investor for Families and the importance of a financial plan. Ping and Bojan Gangur from Level Playing Field join MPR for Episode Two to discuss cash flow solutions, business solutions and legal advice, all tailored to the construction industry. Learn how to manage contracts and other paperwork to cover yourself in the event of a
dispute on site and recover payments using the security of payments act. Masters Plumber Radio is available by simply searching Master Plumbers Radio or by scanning the QR code on page 28.
Gas Compliance Mark Scheme A note to all who carry out gas installation and servicing. At the start of 2019, Victoria adopted a newly developed set of guidelines that will be required for future gas appliance and component certification. For gasfitters, this will mean that any Type A gas appliances certified after 1st January will be required to display the Gas Compliance Mark.
Barefoot Investor feature page 28
www.plumber.com.au | 39
Member news Safely identify, position and manage chemicals Safe Work Australia has just released a guide for storing chemicals safely. “It is important to know which chemicals are safe to store together, where you can safely store them and which ones you should separate,” said Director of Chemicals Policy, Dr Paul Taylor. “In this guide we go into some of the common health and safety risks of storing chemicals and ways to manage those risks. We have included a handy storage checklist that sets out the standard
Fast Fact
precautions everyone should take and a detailed chart that will tell you which types of chemicals to separate and by how far,” he said. “We particularly want to help small to medium sized businesses safely store their chemicals”
groups. Remember you also have to comply with work health and safety requirements in your state. Read and download the guide at Safeworkaustralia.gov.au and search for managing chemicals in the workplace.
The guide was developed in consultation with representatives from national work health and safety regulators, unions and industry
Cool weather safety As the weather starts to cool down this autumn, don’t become a statistic. In the 12 years between 2003-15, slips, trips or falls: caused the death of 386 workers led to 23% of serious claims were caused by environmental factors 56% of the time
40 | Australian Plumbing Industry Magazine | Autumn 2019
Environmental factors can include slippery surfaces following rain or spills, poorly designed or maintained walkways, poor lighting on stairs and walkways and trip hazards for example from poorly stored materials.
Cbus Promotion
Making super easy for your business For more than 34 years Cbus has been passionate about providing strong retirement outcomes for members of the building, construction and allied industries. With around $48 billion in funds under management, Cbus invests back into your industry, creating jobs and stimulating economic growth. Our key strength is our relationships with employers and members and our commitment to working in the best interests of workers in the sector. We offer excellent administration, Superannuation expertise and continue to provide strong, long-term investment returns to members. The super environment is ever-changing making it sometimes complex to navigate. We understand your industry and will support you through these changes, leaving you to concentrate on building your business.
Choosing a ‘default’ super fund for your business All businesses need to choose a default super fund in order to make SG super contributions to employees who haven’t chosen to go with their own preferred super fund. When a new employee begins working for your business, you’re required to provide them with a ‘choice form’ within 28 days from their start date. If they don’t choose their own preferred super fund, you’ll need to pay their super contributions to your nominated ‘default’ fund. We can help make it easy for you to manage your employee super contributions through our online payment system, as well as help you to understand
legislative super changes, keeping you informed with regular updates.
If you’re interested in making Cbus the default super fund for your business, contact Cbus Business Superannuation Consultant, Daniel Tentser on 0439 372 365, call 1300 361 784 or visit www.cbussuper.com.au for more information.
This information is about Cbus and figures are correct as at 30 September 2018. It doesn’t take into account your specific business needs, so you should look at your own financial position, objectives and requirements before making any financial decisions. Read the relevant Cbus Product Disclosure Statement and related documents to decide whether Cbus is right for you. Contact 1300 361 784 or visit www.cbussuper.com.au for a copy. Cbus’ Trustee: United Super Pty Ltd ABN 46 006 261 623 AFSL 233792 Cbus ABN 75 493 363 262.
Handling requests for flexible working arrangements The Fair Work Commission (Commission) has handed down a decision that finalised the model term for requests for flexible working arrangements, which is called the Flexible Clause. The Plumbing and Fire Sprinklers Award 2010, the Clerks – Private Sector Award 2010
and the other modern awards will be varied to include the code. For more information visit plumbing.com.au and search for Flexible Clause or call Phil Eberhard 03 9321 0720, mobile 0425 790 722 or email phil.eberhard@plumber.com.au
www.plumber.com.au | 41
Product news Next generation mini excavators Caterpillar have introduced five new models of one to two tonne mini excavators – the standard tailswing 301.5, 301.6 and 301.8 mini excavators as well as compact radius 301.7CR, and 302CR for working in tight spaces. All models come with expanding undercarriage, Stick Steer with cruise control function, auto idle, a Bluetooth key with push-tostart button, operator security codes, three models with sealed-andpressurised air-conditioned cab, customisable hydraulic response and an engine that delivers more power than anything else on the market. For more information, visit www.nextgenmini.com.au
BioFicient wastewater
Don’t let lead in
Leading global Wastewater Treatment System manufacturer, Kingspan Water & Energy, is the first domestic wastewater treatment plant manufacturer in Australia to receive product certification under the new Australian Standard for its BioFicient Series 1 Wastewater Treatment Plant. The BioFicient was sampled on a daily and weekly basis for 34 weeks in an accredited, independent testing facility. Kingspan’s Gerry Quinn said: “The wastewater plant accreditation process is now one of the most stringent on the planet, designed with the environment in mind by ensuring the standard of effluent discharged is minimal.”
It is possible to select a lead free solution when choosing a drinking water piping system. Aquatechnik’s Safety System utilises a Pex/Al/Pex composite pipe in conjunction with PPSU (Polyphenylsulfone) fittings to completely eliminate lead from the piping system. PPSU is a high performance polymer, that is commonly used in avionics, automotive, medical technology (joint replacement) and plumbing. It offers chemical resistance, is biocompatible, impact resistant and completely lead free. For more information, call 1800 278 283 or visit www.aquatechnik-australia.com.au
For more information, visit kingspan.com.au/water
Fast Fact
3,000
years ago
Ancient Egyptians used copper piping. Later, the Romans used lead piping. Wooden pipes were also used in the USA in the 1800s.
34,000 litres
42 | Australian Plumbing Industry Magazine | Autumn 2019
The amount of water per household we waste every year while waiting for water to heat up in the tap.
Low cost treatment
Big block jetters
Enter the SewerCam
Tsurumi self-aspirating aerators are a low cost, simple solution to on-site wastewater treatment. “The Tsurumi TRN aerators, installed into wastewater treatment systems, are great cost cutters,” said Pump Technology Services’ Jeff Bradford who has recently installed the product. “They’re as easy to install as any submersible pump and simple to maintain.” The TRN range extends up to 40 kW versions capable of handling air flow rates of up to 528 cubic metres per hour. A built in special semi open impeller, made from cast 410 stainless steel, draws in air which is mixed with the liquid and discharged at high pressure.
The Aussie King Cobra Vanguard jetter is popular due to its combination of 5,000 psi pressure, flows of 25 lpm and 27HP industrial Vanguard engine. The King Cobra was developed by Aussie Pumps, originator of the high pressure jetter in Australia. The Vanguard engines are built especially for Briggs and Stratton by the Japanese Daihatsu company. “The extra Vanguard power and torque provides real advantages in terms of fuel efficiency and lower noise levels,” said Aussie Pumps senior engineer John Hales. The King Cobra Vanguard comes with a four year warranty and the engine is covered for three years.
Sewerquip is excited to announce the arrival of its new SewerCam drain camera, which has an option for a 60m WiFi drain camera with a 29mm self-levelling camera head. This camera has an inbuilt WiFi function that allows multiple smart devises to connect. The App (minCam Viewer) allows viewing, camera recording, live notes and snap shots. The drain camera comes with a free Samsung 10.1” tablet. Plumbers can share via SMS, Facebook, Twitter or Email – whatever your preferred share point may be. No more trying to download videos and photos from a SD card or USB drive.
For more information, call 02 8865 3500 or visit aussiepumps.com.au
For more information, call 02 8865 3500 or visit www.aussiepumps.com.au
For more information, call 02 9673 6755 or visit www.sewerquip.com.au
Aussie Pump’s Mal Patel handing over a new Vanguard powered jetter.
www.plumber.com.au | 43
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