SDA News 2017 Spring

SDANEWS OFFICIAL MAGAZINE OF THE SHOP, DISTRIBUTIVE AND ALLIED EMPLOYEES’ ASSOCIATION, NEW SOUTH WALES BRANCH  SPRING 2017 RRP $10.00

Working on B oxing Day means I m iss out on our fam ily get-togethers, family that I only see that time of year. Fa mily is everything.

Wade Hipwell, NS W Riverina

a ay is to D g s n i Box r familie ether, o f og day me t ortant i t d spen ially imp rs c e espe tail work at n e e for r ave be the h n i who usiest up to b r thei s leading k wee tmas s be, Chri scom u L h bet Elizaarthur Mac

get tha tim is W

RETAIL WORKERS CHRISTMAS LIST My two days off My penalty rates Customers to keep their cool

SHOP, DISTRIBUTIVE AND ALLIED EMPLOYEES’ ASSOCIATION, NSW BRANCH

WWW.SDANSW.ORG.AU  PHONE 131 SDA

Your Union – A



STREET ADDRESS: Level 3, 8 Quay Street, Sydney NSW 2000 POSTAL ADDRESS: PO Box K230, Haymarket NSW 1240 E-MAIL: secretary@sdansw.asn.au

As we head into the busy back end of the year, the SDA remains focused on securing new Agreements for members, improving the Retail Award in a series of cases,

SDA NEWS

campaigning to reduce customer abuse, and calling on all

EDITOR:

NSW MPs to stand up for their community by restoring

Bernie Smith, Level 3, 8 Quay Street, Sydney NSW 2000 Please address all correspondence to “The Secretary”.

trading restrictions on Boxing Day and return Boxing Day

UNION OFFICERS:

to families.

SECRETARY: Bernie Smith ASSISTANT SECRETARY: Robert Tonkli PRESIDENT: Cheryl Cassell

Bargaining underway: more to do

ORGANISERS

companies in the retail industry with a view to bargaining

The SDA has resumed bargaining with a number of

LEAD ORGANISER: Angela Ghanime

across the industry.

METROPOLITAN:

Renegotiating a new Coles EBA is a very important step

Anthony Maiatico, Anthony Attard, Caroline Israel, Chris Stefanovski, Mina Papadopoulos, Tina Callaghan, Joel Tynan, Karl San Pedro, Anthony Day, Whitney Rizk, Alex del Rosario, Rayanne Li, Alison Varga, Josip Blazevic, Nathan Egan, Joe Rebbechi, Jessica Rebbechi, Ben Uphill.

in negotiating a number of retail company EBAs, as it may

REGIONAL:

Coles and the SDA have held several negotiation meetings

Lower South Coast, Southern Highlands & Canberra: Athol Williams, Narelle Atkins and Hugh McLaurin  phone 6273 2300 Riverina (Wagga/Albury): Struan Timms  phone 6921 8820 Western NSW (Orange/Dubbo): Louise Buesnell and Loretta Turner (part-time Organiser)  phone 6362 1965 Far North Coast (Ballina/Tweed): Trevor McCosker  phone 6686 4192 Wollongong & Illawarra: Vera Cavanagh and Di Dixon (part-time Organiser)  phone 4228 3611 Coffs Harbour and Armidale Region: Mariusz Werstak and Bridget Sheridan  phone 6650 9950 WAREHOUSING AND MANUFACTURING: Joseph Bourke, John Paul Sialafau, Alex Velickovic

over the past two months. There has been significant

SPECIALISTS

warehouse & online retail fulfilment site.

INDUSTRIAL OFFICERS: Bernard Govind, Mitchell Worsley, Aliscia Di Mauro, Rose Ghabache, Monica Rose WORKERS’ COMPENSATION AND OHS OFFICERS: Michael Babic, Jane Lui SENIOR OPERATIONS OFFICER: Felicity Smithson OPERATIONS OFFICER: Phil Walker COMMUNICATIONS OFFICERS: Michael Walker, Peter Frawley, Paul Farrugia INFORMATION OFFICERS: Corrine Boyle, David Uzzell, Georgina Psillis, Renee Jaajaa, Nadia Olic, Nazih Azar, Jessica Chidiac EDUCATION OFFICER: Philippe LeCompte

It is pleasing to be making progress for members in

provide a new model for agreement bargaining in the retail industry.

progress towards securing a new Agreement that delivers on the SDA bargaining position endorsed by meetings of SDA Delegates across Australia in June.

The priorities identified by Delegates were to bargain for improved penalty rates, protecting existing employees’ take-home pay and secure hard-won Union conditions.

Coles Delegates received a report back on 12 September letting them know how bargaining is progressing.

We have recently secured new Agreements with IKEA, Priceline, Harris Scarfe, St Vincent de Paul, and for Sussan’s

Agreement bargaining but much more remains to be done.

The SDA will be focusing our full attention on securing new Agreements for all members (see page 9).

Award cases conƟnue The SDA has been busy both protecting and improving conditions in the Awards that underpin all of our members’ Agreements.

– AcƟve on Many Fronts We have stopped employers seeking to get rid of all minimum shift lengths in the Fast Food Award that could have seen 15 minute shifts; we have improved pay rates for casual petrol station workers; we have won a new right for regular casuals to convert to permanent and secure work; and we have also established casual overtime rates.

While domestic violence leave will be put into Awards, it will be unpaid so more needs to be done on this issue (see pages 14-15).

We are also running cases at the moment to improve public holiday entitlements, improve casual penalty rates on weeknights and Saturdays, and of course the penalty rates appeal case is underway in the Federal Court (see pages 10-11).

Boxing Day review puts Christmas at risk The NSW Liberal Government recently set up a review into the twoyear trial of Boxing Day trading across NSW. Prior to 2015, Boxing Day was a restricted trading day which meant that shops covering over 70% of the NSW population were closed so that retail workers could enjoy a two-day break with their family and friends like the rest of the community.

The review received 1,561 submissions from the community. About 12 submissions, from retail employers and shopping centre owners, were in favour of Boxing Day trading, while the overwhelming majority of submissions called for Boxing Day to be closed again, and to return the day to the families of NSW.

The sales can start on 27 December with no lost sales for shops, and no lost family time for workers.

That is why we will be publishing open letters in newspapers across NSW calling on NSW MPs to support families on Boxing Day. See the article on pages 4-5 for how you can add your name to these public letters.

Safety Demands AcƟon and customer abuse has to stop A big thank you to all Delegates and Organisers who were involved in the SDA’s national safety activities during August.

This year, the focus was on preventing customer abuse.

Eliminating customer abuse will take a range of different approaches and we have been discussing these matters with SafeWork NSW. However, the focus of activity in August was to encourage and support members in recording and reporting incidents of customer abuse.

Thousands of “Respect” incident recording booklets were distributed, along with guides on how to report customer abuse as a safety issue in all companies.

The review findings included that:

See the article on pages 20-21 for more details.

Retail sales grew by more during December in years when shops closed on Boxing Day than when they opened;  The majority of retail shop owners do not support Boxing Day trading;  The pressure on retail workers to work on Boxing Day is increasing, with 40% feeling pressured to work, 1 in 5 actually feeling coerced to work, and 1 in 10 who refused to work suffering a negative consequence for it.

Despite the overwhelming opposition from the NSW community and these findings, the review somehow recommends continuing Boxing Day trading for all shops everywhere across NSW.

As we head into the busiest parts of the retail year, it is important to remember that customer abuse and violence is not acceptable, is not part of the job, and should always be reported.



If the review won’t listen to the people of NSW, and particularly to retail workers’ demands for time off with their families for two days at Christmas time, then we call on the NSW Parliament to listen, act and restore Boxing Day to families.

The next few months will be very busy but we will keep working with all members and Delegates to secure new Agreements, improve Award conditions, fight for Boxing Day to be returned to families, and campaign against customer abuse.

I appreciate members’ ongoing support and I will give you all my efforts in securing these objectives together.

Bernie Smith, Branch Secretary

SDA NEWS I SPRING 2017 I PAGE 3

RETAIL TRADING HOURS V Dear NSW Parliamentarians, their families this year? ss the State can spend Christmas with Will you help ensure retail workers acro that, most shops were closed. opening stores on Boxing Day. Before ed triall has NSW s, year two past the For festive period with their ers have missed out on celebrating the work il reta of s sand thou s, year two last In the families and friends. backyard cricket, head to t Australian tradition – it’s a time to play Getting together on Boxing Day is a grea see loved ones, or it’s time to family and friends. It’s time to travel to the beach and share a BBQ snag with behind cash registers be a day when workers are forced to work see both sides of your family. It shouldn’t and stock shelves.

s of trialled retail trading in the report looking at the past two year ence evid the by up ed back is f belie That be forgiven for thinking rt’s recommendations alone, you could repo the read you If .

NSW in Day ing on Box that the trial was far from in the body of the report, and it shows that the trial was a success. The truth is successful.

The findings in the report included:

years since Boxing Day growth in December dropped in the two A decrease in sales growth: retail sales ed; previous two years when shops were clos trading was allowed, compared to the work on Boxing Day. 1 in 5 retail cent of retail workers felt pressured to  Pressure on workers: 30-40 per will; workers felt coerced to work against their t to work on Boxing Day suffered retail workers who said they didn't wan  Ramifications for workers: 1 in 10 loyer; negative consequences from their emp had the right to have the day off; of retailers didn't even know their workers  Confusion among retailers: Half on Boxing Day; 41% of retailers support shops opening  Most retailers don’t want it: only to follow up workers’ complaints Government has taken over six months  No support for workers: the NSW taken any action. of being forced to work, and has still not 26 December every e legislation to allow stores to open on duc intro to s plan r sure Trea NSW the We know that onsibility - to make sure that community, have the ability – and resp year, but you, as representatives of our proposed legislation doesn’t pass. rest in your hands. s of workers and their families across NSW The Christmas celebrations of thousand t for the economy, but there is ning stores on Boxing Day is importan There’s no evidence to suggest that ope bad for workers. overwhelming evidence to show that it’s needs of families only comes around once. Please put the s stma Chri but , year a days 360½ n Shops can ope Christmas without Boxing Day. on Boxing Day. After all, Christmas isn’t first, and stop the push to open stores



Kind regards, Bernie Smith

n for retail workers

NSW Branch Secretary, SDA – the Unio

PAGE 4 I SPRING 2017 I SDA NEWS

S V SHARED FAMILY TIME Christmas is a time for family and friends. To properly



Confusion among

celebrate, retail workers need time on both Christmas

retailers: Half of retailers

Day and Boxing Day when shops are closed.

didn't even know their

Christmas time isn’t Chrismas time without Boxing Day.

workers had the right to

It’s time to travel to see loved ones, or it’s time to see both

have the day off;

sides of your family. It’s a time to play backyard cricket,



Most retailers don’t want

head to the beach and share a BBQ snag with family and

it: Only 41% of retailers

friends. It shouldn’t be a day when workers are forced

support shops opening on

back to work behind cash registers and stock shelves.

Boxing Day;

Retail trading hours in NSW are largely deregulated,



No support for workers:

permitting unrestricted trading 24 hours a day, seven

The NSW Government

days a week for 360½ days a year.

has taken over six months

Prior to 2015, Boxing Day was a restricted trading day

to follow up workers’

where shops were required to be closed except in the

complaints of being forced

Sydney CBD and designated tourist areas. That meant

to work, and has still not taken any action.

BY BERNIE SMITH, BRANCH SECRETARY

over 70% of NSW retail workers were in areas where

The evidence on Boxing Day trading is that there was no

shops closed.

increased growth in sales over the month of December

In 2015 and 2016, the Government passed laws to permit

as a whole, and there is no overwhelming public

a two-year trial of Boxing Day trading across all of NSW.

demand or need to shop on Boxing Day. However, there

After two years, it was to be reviewed.

The recent review into Boxing Day trading received 1,561 submissions. Around 12 of them supported Boxing Day

is unreasonable pressure on retail workers to work on Boxing Day who then lose valuable shared time with family and friends.

trading, while the vast majority of the submissions called

RETAIL WORKERS RIGHT TO FAMILY TIME ON BOXING DAY IS IN THE HANDS OF NSW MP.S

for an end to Boxing Day trading and a return of the day

When the Treasurer’s Boxing Day legislation comes before

to NSW families.

Parliament, we want all Members of Parliament to reject it

Despite this, the review recommends extending

and vote NO.

Boxing Day trading across all of NSW – even though

The open letter to NSW Parliamentarians on the opposite

the evidence presented, along with some of their own

page will be printed in newspapers across NSW. We thank

research found:

all members, family and friends who added their name and







A decrease in sales growth: Retail sales growth in

support to this letter.

December dropped in the two years that Boxing Day

If you haven’t added your name yet, go to

trading has been allowed, compared to the previous

takethetime.org.au/tell-our-mps-to-save-boxing-day/

two years when shops were closed;

and add your support.

Pressure on workers: 30-40% of retail workers felt

We want NSW MPs to stand

pressured to work on Boxing Day. One in five retail

up for their communities

workers felt coerced to work against their will;

and vote for the families of

Ramifications for workers: One in ten retail workers

NSW. Vote NO to Boxing

who said they didn't want to work on Boxing Day

Day trading! Give Boxing

suffered negative consequences from their employer;

Day back to families.

SDA NEWS I SPRING 2017 I PAGE 5

“

I worked last Boxing Day even though – yet again – I missed sharing the day with my five children who just wanted to go for a ride on their new bikes.

Alisha Frith, Greater Western Sydney

Public holidays are times that family and friends spend together. Working on them means missing out; not just for the person working, but for all the people who want to spend quality time with them too. My family and friends have had many an occasion without me because I was working. Don’t make this commonplace for so many other Australians - protect our public holidays.

Angie Gittus, Northern Rivers

Working on Boxing Day means I miss out on our family get togethers – family that I only see that time of year. Family is everything.”

Wade Hipwell, NSW Riverina

My husband and I both work in retail, so at Christmas time we barely see each other.

Having worked Boxing Day both years, it was very upsetting to miss out on family times. After a busy week in the lead up to Christmas, a twoday break is needed. It gives my husband and I a chance to be together and relax.

Ashleigh Payenda Flores, Greater Western Sydney

Boxing Day is a day for families to spend time together, which is especially important for retail workers who have been at their busiest in the weeks leading up to Christmas.

We work long hours in the weeks leading up to Christmas, only to get one single day (Christmas Day) to enjoy with our families. Working on Boxing Day means not being able to go away or relax and enjoy the festivities.

Linda Wright, Central Tablelands

In retail there are a very small number of days a year on which we do not trade. These days are very valuable to our families and friends. Boxing Day is one of these days. Please don’t take that away from our families.

Christmas is a time to reflect and appreciate what we have as families and as a society. Traditions shared through the generations of gathering with families are slowly being stripped away, one occasion at a time. New Year’s Day, Australia Day and even the sacred Anzac Day have been taken away from us, and our opportunity to share these traditions as families and loved ones to show appreciation for what we have as a nation. I’m sure you enjoy your Boxing Day with your loved ones, so please allow us to have that opportunity also. Leave Boxing Day as a day for all to enjoy!

Annemarie Nothelfer, South-West Sydney

PAGE 6 I SPRING 2017 I SDA NEWS

Elizabeth Luscombe, Macarthur

“With both my husband and myself working in retail, we really find it hard to enjoy Christmas with our children and eight grandchildren. We work so hard in the lead up to Christmas Day, and with only the one day to try and catch up with all our family, some of whom travel five hours to spend time with us, there’s just no time to relax before we’re back to work again.

Please, please, please give us our Christmas two-day break back!”

Sharon Foster, Hawkesbury region

“It is not fair that retail workers have to miss out on precious time with their families on a very special occasion because companies want to make more money. I say, leave our public holidays and our benefits alone. We want to spend time with our family and our friends.”

Tayla-Lee Gale, Greater Western Sydney

THE COMMUNITY OF NSW HAS SPOKEN ON BOXING DAY TRADING The evidence is clear - opening retail trading on Boxing Day serves NO benefit. It means: 

Workers are pressured by their employers into working;



Retailers do not experience an increase in business;



Families are left without being able to see loved ones;



Community time is sacrificed with little economic benefit.

Samantha Clark, a worker from Glenmore Park explains: I don’t think opening on Boxing Day has benefited the economy, retail customers and it certainly hasn’t benefi tted workers.

Many people felt pressured into working on Boxing Day, myself included. It has taken away valuable time with family and friends when it can be extremely hard for everyone to find time to spend together, especially those working in retail.

Boxing Day trading is a waste of money and takes away time that is better spent amongst loved ones.

There is no good reason to continue to allow retail trading.

It’s time to give Boxing Day back to families.

SOURCES  ‘The Economic Impact of Deregulating Boxing Day Trading in NSW’, The McKell Institute, Feb 2016  ‘Retailers hit by promotional fatigue – discounting comes back to haunt them’, Australian Financial Review, 1 Feb 2017  ‘Boxing Day Poll 2016’ Essential Research, Jan 2017

SDA NEWS I SPRING 2017 I PAGE 7

SDA Wins for Award-covered w

by Robert Tonkli, Assistant Secretary

It’s been a busy year for the SDA in the Fair Work Commission.

I am pleased to report on some wins for members, and also on some other SDA applications to improve conditions for members.

New rights for casuals CASUALS CONVERSION RIGHTS IN AWARDS AFTER 12 MONTHS’ EMPLOYMENT The SDA successfully argued that Awards should be varied to give casual workers the right to convert to permanent employment, subject to certain criteria, as follows:  The casual employee has at least 12 months’ employment;  The casual employee must have worked a pattern of hours on an ongoing basis over the 12-month period which could continue to be worked on a permanent basis without significant adjustment; and  Employers must provide casual employees with a copy of the casual conversion clause within 12 months of commencing work.

Employers can refuse the request if it would require a significant adjustment to the casual employee’s hours of work to accommodate the conversion to permanent employment, or on other reasonable grounds.

The Fair Work Commission accepted the SDA’s arguments that a casual conversion clause is needed because the unrestricted use of casual employment can undermine the safety net of the national employment standards, and that some employers indefinitely engage workers as casuals, even though they could be made permanent.

This win is an important step to address growing job insecurity in our community.

PAGE 8 I SPRING 2017 I SDA NEWS

OVERTIME FOR CASUALS IN THE RETAIL, FAST FOOD AND HAIR AND BEAUTY AWARDS The SDA successfully argued to fix a defect in these Awards.

Until now, a casual employee who worked more than 38 hours per week, or in excess of the maximum daily hours, was not paid overtime.

From now on, a casual employee covered by the Award can get overtime.

THREE-HOUR MINIMUM SHIFTS FOR CASUAL FAST FOOD WORKERS DEFENDED Three hour shifts are essential, as they provide casual workers with a minimum level of pay and work security.

Employer groups wanted to remove any minimum shift length, which could have resulted in a casual employee being rostered for 15 minutes, or even less.

Thankfully, the Fair Work Commission agreed with the SDA that the employers’ demands would open the door to the exploitation of casual workers, and rightly rejected the claim.

HIGHER RATES OF PAY ACHIEVED FOR CASUAL CONSOLE OPERATORS IN THE VEHICLE AWARD As part of the Annual Wage Review, the SDA successfully argued that the casual rates of pay for console operators in the Vehicle Award should be increased, to align its relativity with the permanent rate of pay.

Other cases CORRECTING OTHER INCONSISTENCIES IN THE RETAIL AWARD FOR CASUALS The SDA has applied to fix some other pay inconsistencies for casuals in the Retail Award.

Currently, a casual who works after 6pm on a weekday does not get a penalty in addition to their casual loading.

This means they effectively get the same rate of pay as a permanent employee.

Similarly, a casual working during ordinary hours on a Saturday only gets an additional loading of 10% on top of their casual loading, whereas a permanent gets an additional 25%.

The SDA will be arguing that the Retail Award needs further amending to provide that casuals who work on weekday evenings or on Saturdays are paid the same rate as a permanent employee in addition to their casual loading.

DomesƟc violence leave for all employees Together with the ACTU, the SDA ran a test case to vary all Awards to provide for paid domestic violence leave.

While the Fair Work Commission agreed to insert domestic violence leave into Awards, it disappointingly rejected our claim for paid leave.

Access to paid domestic violence leave is crucial for workers trying to escape abusive relationships.

For this reason, the SDA will continue to work with the ACTU to achieve paid domestic violence leave in the Awards.

See pages 14-15 for more information

Improving Public Holiday condiƟons in Awards The SDA has applied to the Fair Work Commission to vary a number of Awards to provide for the non-working-day public holiday entitlement.

Under most SDA Agreements, full-time and five-start part-time employees typically receive the benefit of a public holiday that falls on their non-rostered day. However, this entitlement is not available to Award-covered employees.

This is an important case that aims to remove the disadvantage experienced by Award covered workers that don’t work a Monday to Friday roster.

Penalty Rates Case update The SDA has applied for a judicial review of the Fair Work Commission decision to reduce penalty rates in the Retail, Fast Food and Pharmacy Awards.

The matter will be heard before a Full Bench of the Federal Court in September.

A decision is expected by the end of the year.

See pages 10-11 for details.

d workers Bargaining Update...

Coles EBA Negotiations for a new Coles EBA are a very important step in renegotiating a number of retail company EBAs. Coles and the SDA have held negotiation meetings over the past two months.

There has been significant progress towards securing a new Agreement that delivers on the SDA bargaining position, which was endorsed by meetings of SDA Delegates across Australia in June.

The priorities identified by Delegates were to bargain for improved penalty rates, protecting existing employees’ take-home pay and securing hard-won Union conditions.

Bargaining has focused around moving to a new Agreement which is based on the General Retail Industry Award.

The SDA fought for and won fair penalty rates in the Retail Award in 2009. A key objective of these negotiations has been for us to secure these rates in the new Coles Agreement.

As we move to a new Award-based Agreement model, the SDA is working to ensure that no Coles employees go backwards in pay, and that all staff receive wage increases during the Agreement.

At the time of going to print, the SDA NSW Branch had called another Coles Delegates meeting to report back on the progress of negotiations and seek Delegates’ input on key outstanding issues.

Remember, no proposed Coles Agreement can be put in place without a vote of all employees.

You will have the final say when it comes to any new Coles Agreement.

We will continue to update all members throughout negotiations.

Other retail EBAs IKEA The SDA has secured a new Agreement for all employees at IKEA. The new EBA has significant improvements to weekend pay rates, while maintaining a good base wage premium.

The higher weekend pay rates have been well received, given how busy IKEA stores are on those days.

The Agreement also provides some paid domestic violence leave.

The Agreement was strongly endorsed by members and was approved by the FWC on 15 August.

ST VINCENT DE PAUL SHOPS ACT & GOULBURN The SDA and the ASU have secured a new Agreement that covers St Vincent de Paul shop workers and social workers in the ACT & Goulburn area.

The Agreement maintains higher penalty rates, a good base rate of pay and higher superannuation payments.

The Agreement is also a first in the retail area to provide 10 days’ paid domestic violence leave.

The Agreement was strongly endorsed by members and is awaiting approval from the FWC. HARRIS SCARFE At the time of writing, Harris Scarfe members are considering and voting on a new Award-based Agreement.

The new Agreement maintains a broad range of superior SDA-negotiated conditions, particularly around public holidays, while introducing higher penalty rates.

The ballot is due to conclude before the end of September.

Pay rises The SDA has approached a number of companies to provide a pay rise to members where Agreement negotiations have stalled.

These discussions are ongoing with a variety of companies.

A range of companies have passed on pay rises, including Bunnings, Kmart and Target.

As we recommence bargaining in different companies, we will be seeking members’ input and assistance.

Sigma EBA Members at Sigma pharmaceutical warehouse stood strongly together to reject an Agreement that did not meet members’ expectations.

There were 10 key reasons that members rejected the company proposal, but key amongst them was the company’s plan to build a new warehouse that would not be covered by the proposed Agreement, despite having previously told staff there were no plans for a new site.

The company has some work to do to rebuild trust at this site.

Well done again to all SDA members for standing strong, and well done to all unions onsite for standing together in solidarity.

SDA NEWS I SPRING 2017 I PAGE 9

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Penalty R The SDA has now launched legal action in the Federal Court to appeal the Fair Work Commissionâ&#x20AC;&#x2122;s decision to cut penalty rates.

Unfair pay cuts introduced In July this year, the first of several cuts to penalty rates for retail, fast food and pharmacy workers covered

by Awards started to be phased in.

The cuts for working on Sundays will be phased in at the beginning of July each year until 2020, while public holiday penalty rate cuts were implemented in full this year.

The SDAâ&#x20AC;&#x2122;s appeal has been lodged to protect the take-home pay of workers across the country.

On July 1 2017, over 700,000 workers in the retail, fast food and hospitality industries received the first of several cuts to their take-home pay that they canâ&#x20AC;&#x2122;t afford, and donâ&#x20AC;&#x2122;t deserve.

Malcolm Turnbull has publicly supported these cuts. He has opposed any effort in Parliament to stop these pay cuts for retail and fast food workers, and restore their penalty rates.

To protect the take-home pay of workers, the SDA is taking the battle to the Federal Court by appealing the Fair Work Commissionâ&#x20AC;&#x2122;s decision on weekend penalty rates.

SDA appeal in the Federal Court The SDA seeks to reverse penalty rate cuts by appealing through a Judicial Review in the Federal Court.

The application was filed on 23 June 2017.

y Rates Appeal Begins

United Voice, the Union for hospitality workers, is also appealing the decision and the matters will be heard together.

The basis of the appeal is to examine the extent to which the decision of the Fair Work Commission is affected by fundamental jurisdictional error.

This means determining whether the Commission considered, and acted within, the proper ambit of its powers by deciding to cut penalty rates in their review of Modern Awards and, additionally, the reasonableness of the findings made by the Commission in the face of the evidence it received.

If jurisdictional error is established as part of our appeal, unions will seek to have the penalty rates decision quashed to stop cuts to take-home pay.

We are keeping the issue front and centre by talking to workers on the shop floor, getting community support and lobbying key Members of Parliament.

If we are successful, workers who received a pay cut on 1 July will have their wages restored.

At a time of record-low wages growth, Australian workers need a pay rise â&#x20AC;&#x201D; not a pay cut! The SDA will continue to fight to protect the take-home pay of our members.

The matter will be heard on 26-28 September. We hope a decision will be made by the end of the year.

All members will be kept up to date with information as our appeal progresses.

Getting behind us!

Our Protect Penalty Rates campaign has now signed up over 55,000 people right across the country.

Sign up to the SDAâ&#x20AC;&#x2122;s Protect Penalty Rates campaign at www.protectpenaltyrates.org.au.

Protect penalty rates . protectpen altyrates.org

.au

SDA NEWS I SPRING 2017 I PAGE 11

SupporƟng life-saving research The SDA continues to support life saving research funded by the NBCF: MEET NATALIE

by Georgina Psilis, Information Officer

“In 2010, I was diagnosed with

breast cancer. My daughter Allegra was only six months old.

“I had an aggressive type of breast cancer called HER2 positive, which is known to grow and spread quickly.

“I had a lumpectomy and radiotherapy every night for five weeks, and I was hopeful because it had been found early.

“Then when I was 30 weeks pregnant, I was told I had breast cancer for a second time.

“I immediately had a mastectomy and then started chemo with my eight-day-old baby in my arms. At this stage, Allegra was just four.

“I was prepared to do whatever was necessary.

“Had it not been for the drug Herceptin, my fate would have been decided for me.

her other breast and her ovaries removed, and a hysterectomy.

“I didn’t realise the significance of Herceptin in my treatment until a friend told me it had only been accepted onto the PBS a few years earlier.

“Going through early menopause in your 30s is not fun. But I wanted to do everything in my power to prevent the cancer coming back.

“It blew my mind to think that if I’d been diagnosed just 10 years earlier, it would have been a death sentence. Herceptin is a wonder drug.”

“My greatest fear is that it will come back somewhere else, and when it does there’s nothing they can do apart from trying to prolong your life.”

Another research breakthrough also made a tremendous difference for Natalie and her family: the advances in anti-nausea medication.

Despite her fears, Natalie has a great hope that her girls will never have to live with this uncertainty.

“One of my greatest fears was that the side effects of chemo would be so debilitating.

I just wanted to be there for my children.

“I still cannot believe I got through six months of chemo without one day of nausea and vomiting – it meant I could still be there for the kindy drop off and pick up.”

Because Natalie had been diagnosed twice, and had a family history, she chose to have

WITHOUT RESEARCH

there is no hope PAGE 12 I SPRING 2017 I SDA NEWS

She has even given up her career as a lawyer to work for a medical research institute herself, describing this as her ‘life’s purpose’.

“By the time they’re old enough to have a genetic test, it will be conclusive. And even if there isn’t a ‘cure’ for cancer by then, I believe it will be just a condition you can live with. Just like any other medical condition, it will be treatable.”

ch RESEARCH MAKES A REAL DIFFERENCE These are just two examples of the transformative impact research can achieve.

The Herceptin breakthrough has made a massive difference to the lives of women across the globe.

But more breakthroughs are needed to find answers for the thousands of women who are still dying each day.

According to NBCF-funded researcher Professor Matt Trau, the future of breast cancer research lies in being able to detect, monitor and use existing treatments effectively to treat each woman and each tumour successfully.

SDA CONTINUES ITS SUPPORT FOR BREAST CANCER RESEARCH

Breast cancer does not discriminate – young and old, it affects families across Australia every day.

Research is the only way to stop it.

If it wasn’t for the research, Natalie might not be here now to enjoy every precious moment with her daughters, husband and family.

The SDA has been supporting the NBCF through a Pink Ribbon campaign for almost 20 years to help fund this vital research.

He explains, “Every cancer is quite unique which is incredibly frustrating for researchers.

Professor Trau and his extensive collaborative team are making incredible progress in improving three areas: early detection, the right treatment for the right patient, and how to know if the cancer is coming back.

For each of these areas, his team hopes to discover a simple test – or biopsy – that can predict or monitor breast cancer so that major improvements can be made in the treatment and survival of those affected by breast cancer.

A note of genuine gratitude to you all.

We finally found some time to sort

by Vera Cavanagh, and package Organiser the enormous amount of goods donated by everyone for charities in Wollongong.

It was lots of fun and most gratifying to step back and take in the huge haul of goods.

We ended up with over 140 Dignity bags comprising of soap, toothbrushes, clippers, razors, deodorant, hair and face goods, perfume, aftershave, even brand new hair brushes!

“What we really need is powerful diagnostics to see these differences, and use this information to guide precision and personalised medicine for every patient.

“Our ultimate goal is for breast cancer to become a manageable disease – and I believe in the next 10 years this is what the future holds for breast cancer care.”

Thanks to all our generous members!

We were able to make up some special bags for Fathers’ Day. We also had coffee donated and recycled the old SDA crockery cups!

HOW CAN YOU HELP? HOST A PINK RIBBON BREAKFAST!

If you want to support the National Breast Cancer Foundation, simply hold your own Pink Ribbon Breakfast this October.

Registrations are now open.

Holding a Pink Ribbon Breakfast is a fun way to bring together friends, family and colleagues to raise important funds for breast cancer research.

For more information or to register, visit

Homeless Hub in Wollongong were ecstatic as times are tough at the moment as you would be well aware.

Thank you for all your donations — and continue to put them aside, as we will do a drive again just before Christmas.

A big thank you to Helen for helping and being the drop off point in Sydney.

I am so privileged to be working with such beautiful and generous people.

With much appreciation, All of us at the Gong office!

www.pinkribbonbreakfast.org.au

SDA NEWS I SPRING 2017 I PAGE 13

UPDATING WORKPLACE LAWS FOR TODAY’S CHALLENGES The SDA attended the Labor Party State Conference in late July to represent our members’ interests in shaping the Party platform should Labor be elected to government in New South Wales (for the record, we also put our views forward to the Liberal Government).

The Conference was very successful with every SDA motion accepted, including: 





Making deliberate wage theft a criminal offence – media coverage and investigation over the past several years have shown this to be an endemic problem, and existing penalties are clearly inadequate. When Luke Foley announced this would be Labor policy, it was greeted with a standing ovation; Redressing the gender superannuation gap by legislating for super payments during periods of parental leave, family payment or carer’s payment so that women do not end up with superannuation balances that are significantly lower than men’s; Shifting regulation from ‘employment’ to ‘work’ to extend workplace laws to people in non-standard forms of employment, such as food couriers or models;

PAGE 16 I WINTER 2017 I SDA NEWS













Making franchisors jointly liable for breaches of franchisees so that the head office will be liable for wrongdoing that it knew about, as was the case in the 7-Eleven scandal; Restoration of all 4½ restricted trading days including Boxing Day; Safeguarding penalty rates from cuts that reduce take-home pay; Better recognition of the role of unions in combating inequality and maintaining a fair society; Improved powers to enter and inspect workplaces where there is a legitimate reason to suspect employers are doing the wrong thing; and Clearer representation rights in meetings with management.

We also tabled an item opposing any increase to the GST, and two other items about the need to maintain far-seeing defence procurement and condemning terrorism and attacks on religious freedom generally around the world.

These items are now part of the Labor platform and should be tabled into legislation when Labor is next elected to Government at a State level.

The SDA was also successful in having similar motions on workplace laws passed at the recent ACT ALP Conference.

A Key Step i and Domes Unions, including the SDA, have been calling for paid Family and Domestic Violence Leave to be introduced in Modern Awards through a test case in the Fair Work Commission (FWC).

by Monica Rose, Industrial Officer The SDA has already secured Domestic Violence Leave in several unionnegotiated Agreements but it’s crucial for this entitlement to extend to all workers.

While our case did not secure paid leave for domestic violence, the Fair Work Commission did take an important step by recognising that family and domestic violence is a workplace issue, and leave should be provided to workers who need it.

The FWC has a view that employees should be able to access personal leave for family and domestic violence and should also have access to unpaid leave.

Unions sought 10 days’ paid Family and Domestic Violence Leave, which would have directly benefited six million Australian workers.

While we will support changes to the Awards to provide access to personal leave and unpaid leave, we will now also look for alternative ways to achieve paid Family and Domestic Violence Leave.

Why push for paid leave?

Every week in Australia, one woman dies because of domestic violence. This is a serious issue that needs to be addressed in both the community and in workplaces.

Our current workplace laws need to change because they are failing women.

Paid Family and Domestic Violence Leave provides financial and employment security which allows time off, including for attending court hearings or looking for a safe home to relocate children to.

p in Securing Family esƟc Violence Leave Access to paid leave is essential for any worker experiencing domestic violence so they are able to maintain employment and financial security to escape an abusive or violent situation.

What are the next steps?

Unions will now seek paid Family and Domestic Violence Leave as part of the National Employment Standards (NES).

While Moderns Awards set out the minimum wages and entitlements by industry, the National Employment Standards (NES) are entitlements that must be provided to all Australian employees regardless of where they work.

We will be launching our campaign to have Paid Family and Domestic Violence Leave included in the National Employments Standards to make it a universal right for workers.

Family and DomesƟc Violence Leave in Union Agreements Family and Domestic Violence Leave already applies in several Agreements negotiated by the SDA. We continue to seek leave for members when it comes to negotiating new Agreements with employers.

1.6 million Australian workers across the country have access to paid leave because of union-negotiated Agreements.

While we believe paid Family and Domestic Violence Leave is more appropriate, unions will also be making submissions to the Fair Work Commission so employees can take personal leave and unpaid leave for the purpose of family and domestic violence.

DOMESTIC VIOLENCE IS A WORKPLACE ISSUE Domestic violence not only impacts the home, it impacts all aspects of our community, including workplaces.

For those experiencing domestic/family violence, maintaining paid employment and financial independence is vital to providing choices to deal with their situation and successfully breaking the cycle of domestic violence.

The impact of domestic violence on an employee’s attendance and performance can seriously jeopardise their employment.

Domestic/family violence can affect a member’s: 

Wellbeing and safety at work, and the wellbeing and safety of co-workers.

Violence can occur in the workplace, including harassment in person or by abusive phone calls, texts and emails;



Ability to attend work;

Unions, including the SDA, will continue our efforts to ensure workers experiencing family and domestic violence receive important protections at work.



Capacity to get to work on time;



Work performance, potentially leading to disciplinary action and the loss of their job;

If you would like information about family or domestic violence impacting you at work, please contact the SDA.



Ability to juggle work and family responsibilities.

For professional help, counselling and support, call 1800-RESPECT. (1800 737 732).

SDA NEWS I SPRING 2017 I PAGE 15

union picnic day 2017 WELCOME SPRING WITH FUN AND FASHION! Melbourne Cup Day, Tuesday 7 November 2017 ers Hurry – ord close on !

20 October

Picnic Day is an additional public holiday which full-time and part-time employees may be entitled to without loss of pay.

If you are entitled to Picnic Day as a holiday, you cannot be forced to work on this day.

For exact details of your entitlement on the day, check your Enterprise Agreement or Award.

This year Picnic Day for SDA members falls on the first Tuesday in November each year which, of course, is also Melbourne Cup Day. This year, SDA Picnic Day falls on Tuesday 7 November.

What’s on in your area?

As usual, we’re hosting events in Sydney and regional areas. For information on functions in your region, or in Sydney,  see your Store Delegate,  phone the SDA Information Centre on 131 SDA (that’s 131 732), or  phone your regional SDA office (see the back of your current membership card for contact details).

Another strong year REST Industry Super has delivered another year of strong investment performance to

by Gerard Dwyer, National Secretary

its members.

The Core Strategy achieved a one-year return of 11.07% as at 30 June 2017 and retained its position as the top performing fund of its type over 10 years, according to SuperRatings.

The main drivers of return for the year were international equities (shares) and Australian equities (shares).

The Core Strategy returned 6.11% over

REST’s funds under management have grown to over $45 billion and it has around two million members.

Looking ahead, REST considers equities markets to be highly valued and debt levels quite high.

Combining your super is now just a few clicks away

Consistent with REST’s investment philosophy of managing downside risks for its members, REST has actively managed a reduction in exposure to equities and an increase in holdings of cash and long-term solid investments (such as Endeavour Energy). An increased cash balance would provide opportunities to purchase assets (like shares) at better prices if values decrease in the future.

The current asset allocations within the Core Strategy are provided here.

10 years, compared to the median fund 10 year return of only 4.78%. This is the eighth straight year of positive returns.

A list of the top performing funds over 10 years is provided on this page.

Since June 2009, following the Global Financial Crisis, the Core Strategy has grown member’s savings by 104%, at an annualised rate of 9.3% p.a.

FUND OPTION RETURN AS AT 30 JUNE 2017 REST - Core Strategy CareSuper - Balanced UniSuper Accum (1) - Balanced HOSTPLUS - Balanced Equip MyFuture - Balanced Growth Cbus - Growth (Cbus MySuper) Commonwealth Bank Group Super - Balanced AustralianSuper - Balanced BUSSQ Premium Choice - Balanced Growth Catholic Super - Balanced

ASSET TYPE Australian Shares Overseas Shares Property Infrastructure Growth Alternatives Total Growth Assets Defensive Alternatives Bond Cash Securities Total Defensive Assets

TARGET ALLOCATION 17% 26% 10% 6% 18% 77% 7% 6% 10% 23%

ROLLING 10 YEAR %

ROLLING 10 YEAR RANK

6.11 6.01 5.83 5.79 5.72 5.64 5.62 5.56 5.54 5.50

1 2 3 4 5 6 7 8 9 10

Why combine?

If you’ve been working for a while, chances are that you have more than one super account. This could mean that you’re paying multiple fees, which over time can add up to thousands of dollars!

By combining, you’ll find it easier to manage and to grow your super through savings on multiple fees.

Visit rest.com.au to get started

As we have not taken into account your circumstances, please consider whether this information meets your needs. Go online for a PDS to consider before deciding.

REST has no relationships that might influence our advice to you. REST does not pay or receive commissions. This information is provided by the issuer Retail Employees Superannuation Pty Ltd ABN 39 001 987 739 as trustee of REST (Retail Employees Superannuation Trust ABN 62 653 671 394). Issue date: August 2017

SDA NEWS I SPRING 2017 I PAGE 17

BE SMART ON FACEBOOK AND OTHER SOCIAL MEDIA Be careful what you say on social media.

Comments on Facebook pages are regarded as public comments – they are not private.

Avoid negative comments about your company, your manager or other employees on social media. Better not to mention them at all.

Some members have come to us after “official warnings” or worse following unwise comments on social media.

Be smart. When you go home, leave work behind you. Enjoy your social media for your social life, not your work life.

PAGE 18 I SPRING 2017 I SDA NEWS

Training on your own Ɵme is work Recently, we have been getting calls from members wanting to know where they stand with respect

by Bernard Govind, to compulsory Industrial Officer training that they complete outside the workplace.

Online training Ɵme is work Ɵme If you are asked to complete mandatory online training outside of your rostered hours, you are entitled to be paid.

The amount you are entitled to be paid will depend on your enterprise agreement or award.

If you are unsure, ask your SDA Delegate, SDA Organiser, or call the SDA on 131 732.

If you are unsure if your online training is mandatory, you should speak to your manager.

Ask if you will be paid for completing the training, or if you can complete the training in your work hours.

If you will not be paid, then you are not obligated to do the training.

What can you do?

If you think you may be owed payment for completing online training, or you are being required to complete online training without pay, you should raise this with your immediate manager in accordance with the grievance procedure.

If your query or dispute cannot be resolved, you should contact your SDA Delegate, SDA Organiser or the SDA information centre on 131 SDA (that’s 131 732).

ALL INJURED EMPLOYEES ARE ENTITLED TO WORKERS COMPENSATION AND REHABILITATION

WORKERS COMPENSATION: TERMINATION OF WEEKLY BENEFITS FROM 1 OCTOBER 2017 Due to changes made to the NSW Workers Compensation Act 1987 in 2012, any worker on workers compensation who is covered by this Act who has received weekly benefits for 260 weeks (5 years) or more, and who has not been assessed as having at least 21% whole body impairment, will cease to be entitled to payment.

Affected workers will start to lose their entitlement to payment from 1 October 2017.

by Rose Ghabache, Industrial Officer

If any of the following is applicable to you or an SDA member in your workplace, please contact the Union for advice:



Have you received weekly benefits for close to or more than 260 weeks (5 years)?



Have you received a notice from your workers compensation insurer advising that your weekly benefits will be terminated under section 39 of the Act?



Have you been assessed as having 20% or less whole body impairment?

If any of the above apply to you or any SDA member in your workplace, please contact the SDA Information Centre on 131 732 as soon as possible.

The SDA will refer affected members for a free consultation with a solicitor to receive legal advice about your workers compensation claim.

If you have any questions or are unsure, please contact the SDA Information Centre on 131 732 as soon as possible.

Managers – keep out of medical appointments!

All SDA members should be aware that managers and insurance companies have no right to attend your medical appointments, even if it is for a work-related injury.

This is supported by the Fair Work Ombudsman.

Medical appointments are private. Tell any manager or insurance company representative that they are not entitled to attend.

Contact the SDA if you need any help.

CONTACT THE SDA ON 131 SDA (131 732) AT ANY STAGE IF YOU NEED ANY ASSISTANCE WITH RESPECT TO YOUR WORKERS COMPENSATION CLAIM.

Customer abuse and violence i of your job – make sure you r

by Jane Lui, OHS Officer

The Union has conducted a nationwide safety focus activity annually for the last three years. This has helped us understand what our members’ key concerns are.

One consistent concern is the frequency and levels of customer abuse and violence experienced by employees at work. Earlier this year, we conducted surveys to understand these concerns further and in August we followed up, helping workers who were having issues, and providing practical tools to help members record and report customer abuse incidents.

PAGE 20 I SPRING 2017 I SDA NEWS

It is important that workers understand that this is a safety issue – often people feel that this is just part of the job or nothing can be done, so they don’t report incidents.

! To help with your record keeping, you can download a record book from tinyurl.com/sdarecordbook.

Report any incidents to your employer as a safety issue. You should report these cases like any other safety issue. Make sure you record all incidents.

Keep your own records of any incidents, including when and to whom you reported the issue. Review progress. If the incidents keep occurring and measures to help control these risks are inadequate, seek help from your Delegate, safety committee, store manager or contact the SDA immediately.

What we are doing

CUSTOMER ABUS ABUSE & VIOLENCE

RECORD

Name: ame: Date:

RECORD BOOK CUSTOMER ABUSE & VIOLENCE IS NOT PART OF THE JOB.

The SDA continues to raise these matters and other key concerns such as workload and hot and cold issues, with companies.

We have also been discussing these concerns with SafeWork NSW. Remember, if you feel your workplace is unsafe or notice a hazard, don’t wait for an injury to occur — report it to your store management and if it is not resolved, seek help from your Delegate, safety committee, or store manager, or contact the SDA immediately.

e is not part u report it!

RD

Abuse can take many forms During August, the SDA visited stores as part of ‘Safety Demands Action’ to talk about customer abuse and violence.

What you (and your employer) can do There are many things that might help reduce or deter customer abuse and violence.

Having shorter waiting times, clearer policies and more support from management can assist, as well as other measures such as surveillance cameras and barriers (such as jump wires or a higher counter).

But sometimes customers may get upset and angry and it is important to remain calm and not put yourself or others in danger.

Most companies suggest offering friendly service, such as “Can I help you, sir/madam?” But what should you do if your offer is refused? Simply, do not persist and just walk away.

If you suspect a person of stealing, report it. Never stand in the way of someone wanting to leave, even if you suspect them of taking company property. Your safety comes first.

Do not touch a person’s belongings without first obtaining clear consent. If a person refuses a bag check, even if it is clearly a condition of entry on signage, you cannot check their bag (please note, you cannot check bags if there is no signage).

Always remain respectful and call a manager for assistance immediately. Many companies have their own internal strategies for calling for assistance if there are concerns, so familiarise yourself with this process and ensure equipment such as phones and panic alarms are working.

We also believe that giving workers greater flexibility to resolve issues themselves can help by quickly de-escalating situations.

Management also plays an important role in alleviating the effects of customer abuse and violence.

It is important for management to be supportive of staff during such incidents by reacting quickly, and also supportive afterwards.

Management should also attempt to identify the causes or triggers of abuse and violence, and try to manage the cause itself to prevent issues from arising, for example, by increasing staff or having more management present at peak times.

Please call the SDA on 131 SDA (that’s 131 732) if you have any questions or you need assistance.

by Monica Rose, Industrial Officer

As you may know, we have been focusing on this issue as data from our previous ‘Safety Demands Action’ surveys has shown that this is the number one issue experienced by retail workers.

Earlier this year, we conducted an online survey to try to find out more about your experiences of customer abuse and violence.

One of the alarming statistics to come through in the survey was that 1 in 10 retail workers in NSW/ACT indicated that they had experienced customer abuse or violence that was sexual in nature.

This is sexual harassment, and it should not be tolerated.

What is sexual harassment?

Sexual harassment occurs when a reasonable person would anticipate that you are likely to be offended, humiliated or intimidated by an unwelcome sexual advance, or an unwelcome request for sexual favours, or other unwelcome conduct of a sexual nature.

Examples of sexual harassment include:  

 

Sexually suggestive comments or jokes; Intrusive questions about your private life or physical appearance; Inappropriate staring or leering; Unwelcome hugging, kissing or cornering or other types of inappropriate physical contact.

Just as it is unlawful for an employer, manager or fellow employee to sexually harass you, it is also unlawful for a customer to harass you.

If you have been sexually harassed by a customer, you should request that they stop.

You should also report it to your manager.

You can also contact the SDA if you need advice or support in dealing with this issue.

Retail workers deserve respect and to feel safe at work.

SDA NEWS I SPRING 2017 I PAGE 21

LUNA PARK FAMILY DAY 27 August 2017

PAGE 22 I SPRING 2017 I SDA NEWS

SDA NEWS I SPRING 2017 I PAGE 23

The Sydney Tower Eye

Madame Tussauds

Sydney Aquarium, Darling Harbour

SDA members and their families are entitled to a 20% discount on single adult and child entry tickets upon presentation of their current SDA membership card.

SDA members and their families are entitled to a 20% discount on single adult and child entry tickets upon presentation of their current SDA membership card.

SDA members and their families are entitled to a 20% discount on single adult and child entry tickets upon presentation of their current SDA membership card.

SDA members and their families are entitled to a 20% discount on single adult and child entry tickets upon presentation of their current SDA membership card.

t (02) 9333 9222 a sydneytowereye.com.au

t (02) 9333 9240 a madametussauds.com/sydney

t (02) 8251 7800 a sydneyaquarium.com.au

t (02) 8251 7877 a manlysealifesanctuary.com.au

WILD LIFE Sydney

Australian National Maritime Museum

Currumbin Wildlife Sanctuary, Gold Coast

Featherdale Wildlife Park, Doonside

Manly SEA LIFE Sanctuary

SDA members and their families are entitled to a 20% discount on single adult and child entry tickets upon presentation of their current SDA membership card.

SDA members and their families are entitled to a 20% discount upon presentation of their current SDA membership card.

SDA members and their families are entitled to a 20% discount upon presentation of their current SDA membership card.

SDA members and their families are entitled to a 25% discount upon presentation of their current SDA membership card.

t (02) 9333 9288 a wild-life.com.au

t (02) 9298 3777 a anmm.gov.au

t (07) 5534 1266 a cws.org.au

t (02) 9622 1644 a featherdale.com.au

Gold Coast Attractions SDA members and their families are entitled to a 15% discount at these leading Gold Coast attractions:

Movieworld*

Seaworld*

Wet’n’Wild Dreamworld White Water Skypoint Water World* t (07) 5588 1111 World t (07) 5582 2700 t 133 FUN t 133 FUN (07) 5588 1111 t (133 386) (133 386) a dreamworld. a whitewaterworld. a skypoint. t 133 FUN myfun.com.au a myfun.com.au com.au com.au com.au a a myfun.com.au *Please note: you must pre-purchase your tickets through the SDA website to access the discounts on these attractions.

Illawarra Fly Treetop Adventures

ABC Driving School

SDA members and their families are entitled to a 20% discount on single adult and child entry tickets upon presentation of their current SDA membership card.

1300 362 881. www.illawarrafly.com

SDA members and their children receive $25 off the standard cost of five lessons with ABC Driving School. For more information, go to abcdrivingschool.com.au or see the White Pages for your nearest branch.

t

a

Europcar Rentals

Trent Driving School

SDA members receive exclusive rates when they rent with Europcar. Simply quote 47699503 when making your booking. No PIN or Velocity number is required. For more information, phone Europcar on 1300 131 390 or go to europcar.com.au.

Book with Trent and receive a $10 discount on any full-priced lesson*. Use coupon code SDATrent when booking. Go to ltrent.com.au for more information.

PAGE 24 l SPRING 2017 l SDA NEWS

*offer only available to students that are new to Trent Driving School. Not valid with any other offer.

TO PURCHASE YOUR TICKETS...

t n u o c Dis ie Tix v o M

+ order online at www.sdansw.org.au, + phone the SDA on 131 SDA (131 732) with your credit card details, or + purchase them in person at the SDA Sydney Office between 8.30am

and 4.00pm Monday to Saturday (except on public holidays).

ALL TICKET OPTIONS ARE NOW AVAILABLE ONLINE! All SDA Movie Tickets are now available as e-tickets,, which you can print at home or redeem on a smartphone. Order online at sdansw.org.au.

SDA NSW BRANCH + 131 SDA (131 732) + WWW.SDANSW.ORG.AU

www.engagingmembers.com.au

More for SDA NSW members.

In the past, members have enjoyed:

A bank built for you.

Did you know that ME is a bank built to help Australians get ahead?

And as a member of SDA NSW you’re able to access exclusive benefits and special offers via our Member Benefits Program.

discounts on home loans

lower rates on credit cards

bonuses on term deposits

And the great news?

We refresh our member offers regularly.

What are you waiting for?

Take a look at what’s available to you right now at

mebank.com.au/benefitssda

Terms, conditions, fees and charges apply. Applications for credit are subject to approval. This is general information only and you should consider if these products are right for you. Members Equity Bank Ltd ABN 56 070 887 679 Australian Credit Licence 229500.

SDA NEWS I SPRING 2017 I PAGE 25

SHOP, DISTRIBUTIVE & ALLIED EMPLOYEES’ ASSOCIATION: FINANCIAL REPORTS FOR THE YEAR ENDED 30 JUNE 2017 SHOP, DISTRIBUTIVE AND ALLIED EMPLOYEES’ ASSOCIATION, ANNUAL FINANCIAL REPORT 30 JUNE 2017 OPERATING REPORT FOR THE YEAR ENDED 30 JUNE 2017 The members of the National Executive present their report together with the financial report of Shop, Distributive & Allied Employees’ Association (‘the Association’) for the financial year ended 30 June 2017 and the auditor’s report thereon.

1. Membership Membership of the Association as at 30 June 2017 was 207,037 (2016: 209,936).

Persons eligible to do so under the rules of the Association were actively encouraged to join the Association. Pursuant to s174 of the Fair Work (Registered Organisations) Act 2009 (“RO Act”) and in accordance with Rule 27 of the Association, members have the right to resign from the Association by written notice to the appropriate Branch of the Association.

2. Committee of Management The members of the National Executive of the Association at any time during or since the end of the financial year are: Name Mr Joseph de Bruyn National President Mr Michael Donovan National Vice President Mr Gerard Dwyer National Secretary-Treasurer Ms Julia Fox National Assistant Secretary Mr Ian Blandthorn (retired)

Experience National Executive Member since 1978 National Secretary-Treasurer 1978-2014 National President since 2014 National Executive Member since 1996 National Vice President since 2014 National Executive Member since 2005 National President 2008-2014 National Secretary-Treasurer since 2014 National Executive Member since 2016 Elected National Assistant Secretary in October 2016 National Executive Member (1986 – October 2016) National Assistant Secretary (1986 – October 2016) National Executive Member since 1990 National Executive Member since 2004 National Executive Member since 2016 National Executive Member since 2014 National Executive Member since 2014 National Executive Member since 2014

Mr Paul Griffin Ms Barbara Nebart Ms Sonia Romeo Mr Bernie Smith Mr Chris Gazenbeek Mr Peter O’Keeffe 3. Affiliations & Directorships The Association, through its Branches, is affiliated with the Australian Labor Party (“ALP”). Delegates were credentialed to various state and national meetings of the ALP. The National Secretary-Treasurer is a member of the ALP National Executive and the Australian Labor Advisory Council.

The Association is affiliated with the Australian Council of Trade Unions (“ACTU”). The National Secretary-Treasurer is Senior Vice President of the ACTU, and a director of ACTU Trustee companies ACTU Member Connect Pty Ltd and The Union Education Foundation Limited. Three other representatives of the Association are also members of the ACTU Executive. Officials of the Association are active on a range of ACTU Committees, including finance, tax, health and safety, women, vocational education and training, workers capital, future international and industrial legislation.

The Association is affiliated to Union Network International (“UNI”). Various officials of the Association hold elected positions within UNI. The National Secretary-Treasurer is Vice President of UNI-APRO. Ian Blandthorn is a Director of Skills IQ. 4. Principal Activities The Association maintained its industrial awards and agreements at a high, up-to-date standard, and produced a range of publications for its members.

New enterprise agreements were negotiated with a range of employers. These agreements all resulted in improved wages and working conditions for the employees covered by them.

The Association continues its defence of penalty rates in its major awards and also protects other entitlements from attack by employers.

There were no significant changes in the Association during the financial year in the nature of its activities and financial affairs. At 30 June 2017, there were 13.5 effective full-time equivalent employees of the National Office of the Association (2016: 12.5).

5. Superannuation Trustees Four representatives of the Association hold positions as Directors of the Retail Employees’ Superannuation Trust (“REST”). Below are the directors as at 30 June 2017, along with the nominated alternate Employee Directors.

Directors: Alternates: Mr Joseph de Bruyn Mr Gerard Dwyer Mr Ian Blandthorn Mr Michael Donovan Mr Geoff Williams Ms Aliscia Di Mauro Ms Sue-Anne Burnley Ms Julia Fox National Executive Member Mr Paul Griffin is a Director of the Tasplan Superannuation Fund 6. SDA Report to the Workplace Gender Equality Agency The Shop, Distributive and Allied Employees’ Association, as required by the Workplace Gender Equality Act 2012, lodged its public report for the reporting year 2016-2017, to the Workplace Gender Equality Agency, on the 25th May 2017. The report is available on the SDA National website at www.sda.org.au.

7. Information to be provided to Members or General Manager In accordance with the requirements of subsection 272(5) of the RO Act, the attention of members is drawn to the provisions of subsections (1), (2) and (3) of section 272, which states as follows: 1. A member of a reporting unit, or the Commissioner, may apply to the reporting unit for specified prescribed information in relation to the reporting unit to be made available to the person making the application.

2. The application must be in writing and must specify the period within which, and the manner in which, the information is to be made available. The period must not be less than 14 days after the application is given to the reporting unit.

3. A reporting unit must comply with an application made under subsection (1).

Dated at Melbourne this 15th day of August, 2017 Joseph de Bruyn Gerard Dwyer National President National Secretary-Treasurer

COMMITTEE OF MANAGEMENT STATEMENT We, Gerard Dwyer and Joseph de Bruyn, being two members of the National Executive of the Association, do state on behalf of the National Executive and in accordance with a resolution passed by the National Executive on 15th August 2017 in relation to the accompanying general purpose financial report that, in the opinion of the National Executive: (a) the financial statements and notes set out on pages 8 to 41 comply with the Australian Accounting Standards; (b) the financial statements and notes set out on pages 8 to 41 comply with any other requirements imposed by the Reporting Guidelines or Part 3 of Chapter 8 of the Fair Work (Registered Organisations) Act 2009 (“RO Act”); (c) the financial statements and notes present a true and fair view of the financial performance, financial position and cash flows of the Association for the financial year ended 30 June 2017; (d) there are reasonable grounds to believe that the Association will be able to pay its debts as and when they become due and payable;

(e) during the financial year ended 30 June 2017 and since the end of that year: (i) meetings of the executive were held in accordance with the rules of the Association; (ii) the financial affairs of the Association have been managed in accordance with the rules of the Association; (iii) the financial records of the Association have been kept and maintained in accordance with the RO Act; (iv) the financial records of the Association have been kept, as far as practicable, in a consistent manner for each of the branches of the Association; (v) to the knowledge of any member of the National Executive, there have been no instances of information sought in any request of a member of the Association or Commissioner duly made under section 272 of the RO Act that have not been furnished to the member or Commissioner; (vi) no orders for inspection of financial records have been made by the Registered Organisations Commission under section 273 of the RO Act. (f) no revenue has been derived from undertaking recovery of wages activity during the reporting period.

Dated at Melbourne this 15th day of August, 2017 Joseph de Bruyn Gerard Dwyer National President National Secretary -Treasurer

CERTIFICATE BY NATIONAL SECRETARY-TREASURER

I, Gerard Dwyer, being the officer responsible for keeping the accounting records of the Association certify that as at 30 June 2017 the number of members of the Association was 207,037.

In my opinion: (i) the accompanying financial report set out on pages 8 to 41 presents a true and fair view of the financial position of the Association as at 30 June 2017; (ii) a record has been kept of all monies paid by or collected from members of the Association and all monies so paid or collected have been credited to the bank account to which those monies are to be credited in accordance with the rules of the Association; (iii) before any expenditure was incurred by the Association, approval of the incurring of the expenditure was obtained in accordance with the rules of the Association; (iv) no payments were made out of funds or accounts operated by the Association in respect of compulsory levies raised by the Association or voluntary contributions collected from members of the Association or other funds, the operation of which is required by the rules of the Association for a purpose other than the purpose for which the funds or accounts were operated; (v) no loans or other financial benefits other than remuneration in respect of their full time employment with the Association were made to persons holding office in the Association; and (vi) the Register of Members of the Association was maintained in accordance with the Fair Work (Registered Organisations) Act 2009.

Dated at Melbourne this 15th day of August, 2017 Gerard Dwyer National Secretary -Treasurer

STATEMENT OF FINANCIAL POSITION AS AT 30 JUNE 2017

Note 2017 $ 2016 $ Assets

Cash and cash equivalents 9 925,867 854,503 Receivables 10 691,153 636,486 27,500,000 26,700,000 Other financial assets 11 29,117,020 28,190,989 Total current assets Investment property 12 19,750,000 18,500,000 Property, plant and equipment 13 646,434 397,530 587,644 356,591 Employee benefits 16 20,984,078 19,254,121 Total non-current assets TOTAL ASSETS 50,101,098 47,445,110 Liabilities Trade and other payables 14 318,372 397,092 768,188 762,165 Employee benefits 16 1,086,560 1,159,257 Total current liabilities Employee benefits 16 32,079 12,732 32,079 12,732 Total non-current liabilities 1,118,639 1,171,989 TOTAL LIABILITIES NET ASSETS 48,982,459 46,273,121 Equity 48,982,459 46,273,121 Retained earnings TOTAL EQUITY 48,982,459 46,273,121 The notes on pages 12 to 41 are an integral part of these financial statements.

STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME FOR THE YEAR ENDED 30 JUNE 2017 Note Income Capitation/affiliation fees

22

Other income

7

Expenditure 53 Queen St, Melbourne - direct operating expenses ACTU IR Campaign Levy Affiliation fees Audit fees Campaigning expenses Delegates expenses Depreciation Grants and donations Legal costs Meeting expenses Office & administration expenses Other expenses Personnel expenses Travel expenses Total Expenses Result from Operating Activities Finance income Interest income Income tax expense PROFIT FOR THE PERIOD

SDA 2017 FINANCIAL REPORTS  PAGE 26  SDA NEWS, SPRING 2017

22 22 8

13 15(a) 15(b)

20

11 4(k)

2017 $

6,167,282 6,167,282 3,175,714 9,342,996

2016 $

5,824,605 5,824,605 3,172,995 8,997,600

602,080 2,095,039 30,709 485,648 169,753 100,961 204,546 1,176,012 300,373 206,790 328,892 1,632,616 189,028 7,522,447 1,820,549

589,996 428,028 1,884,678 26,112 639,078 220,717 87,961 1,041,221 1,650,051 260,745 209,970 571,057 1,587,776 185,645 9,383,035 (385,435)

652,319 715,516 652,319 715,516 2,472,868 330,081 Table continued on next page

Table continued from previous page Other comprehensive income Items that will never be reclassified to profit or loss Remeasurement of defined benefit asset gain/(loss) 16 236,470 Income tax on other comprehensive income 4(k) Items that are or may be reclassified to profit or loss 236,470 Other comprehensive income/(loss), net of tax 2,709,338 TOTAL COMPREHENSIVE INCOME FOR THE PERIOD The notes on pages 12 to 41 are an integral part of these financial statements.

(257,964) (257,964) 72,117

STATEMENT OF CHANGES IN EQUITY FOR THE YEAR ENDED 30 JUNE 2017 Note

Retained earnings $ 46,273,121

Balance at 1 July 2016 Total comprehensive income for the period Profit for the period 2,472,868 Other comprehensive income Remeasurement of defined benefit asset, net of tax 16 236,470 Total comprehensive income for the period 2,709,338 Transactions with members of the Association, recognised directly in equity 48,982,459 Balance at 30 June 2017 Balance at 1 July 2015 46,201,004 Total comprehensive income for the period Profit for the period 330,081 Other comprehensive income Remeasurement of defined benefit asset, net of tax 16 (257,964) Total comprehensive income for the period 72,117 Transactions with members of the Association, recognised directly in equity 46,273,121 Balance at 30 June 2016 The notes on pages 12 to 41 are an integral part of these financial statements.

Total equity $ 46,273,121 2,472,868 236,470 2,709,338 48,982,459 46,201,004 330,081 (257,964) 72,117 46,273,121

STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 30 JUNE 2017 Note 2017 $ 2016 $

Cash flows from operating activities Cash receipts from operations 8,848,887 9,042,920 Cash paid to suppliers and employees (8,263,002) (10,173,563) Cash generated from operations 585,885 (1,130,643) Interest received 666,744 718,021 21 1,252,629 (412,622) Net cash from/(used in) operating activities Cash flows from investing activities (Acquisition)/proceeds of term deposits (800,000) 600,000 Acquisition of property, plant and equipment 13 (349,865) (63,387) Acquisition of investment property 12a (31,400) (274,095) Proceeds on sale of property, plant and equipment 2,281 Net cash (used in)/from investing activities (1,181,265) 264,799 Cash flows from financing activities Net cash from/(used in) financing activities Net increase/(decrease) in cash and cash equivalents 71,364 (147,823) Cash and cash equivalents at 1 July 854,503 1,002,326 9 925,867 854,503 CASH AND CASH EQUIVALENTS AT 30 JUNE The notes on pages 12 to 41 are an integral part of these financial statements.

NOTES TO FINANCIAL STATEMENTS

NOTE 1: REPORTING ENTITY Shop, Distributive & Allied Employees’ Association (the ‘Association’) is an Association domiciled in Australia. The address of the Association’s registered office is Level 6, 53 Queen Street, Melbourne. The financial report of the Association for the financial year ended 30 June 2017 comprises the National Account and the International Fund. The Association is a not-forprofit entity and primarily is involved in retail trade union activities.

NOTE 2: BASIS OF PREPARATION a) Statement of compliance The financial report is a general purpose financial report which has been prepared in accordance with Australian Accounting Standards (‘AASBs’) adopted by the Australian Accounting Standards Board (‘AASB’) and the Fair Work (Registered Organisations) Act 2009.

The financial statements were approved by the National Executive on 15th August 2017. b) Basis of measurement The financial report is prepared on the historical cost basis except for the following material items in the statement of financial position:  investment property is measured at fair value; and  the defined benefit asset is recognised as the net total of the plan assets, plus unrecognised past service cost and unrecognised actuarial losses, less unrecognised actuarial gains and the present value of the defined benefit obligation. c) Functional and presentation currency The financial report is presented in Australian dollars, which is the Association’s functional currency. d) Use of estimates and judgements The preparation of financial statements in conformity with AASBs requires management to make judgements, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets, liabilities, income and expenses. Actual results may differ from these estimates.

Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised and in any future periods affected. (i) Judgements Information about critical judgements in applying accounting policies that have the most significant effect on the amount recognised in the financial statements is included in the following notes:  Note 12 – Investment property. (ii) Assumptions and estimation uncertainties Information about assumptions and estimation uncertainties that have a significant risk of resulting in a material adjustment within the next financial year are included in the following note:  Note 16 – Employee benefits.

Measurement of fair values A number of the Association’s accounting policies and disclosures require the measurement of fair values, for both financial and non-financial assets and liabilities.

The Association has an established control framework with respect to the measurement of fair values. Significant fair value measurements are overseen and reviewed regularly, including unobservable inputs and valuation adjustments.

If third party information is used to measure fair values, the Association assesses the evidence obtained from the third parties to support the conclusion that such valuations meet the requirements of AASBs, including the level in the fair value hierarchy in which such valuations should be classified. Significant valuation issues are reviewed by the Association’s Audit and Risk Committee.

When measuring the fair value of an asset or a liability, the Association uses market observable data as far as possible.

Fair values are categorised into different levels in a fair value hierarchy based on the inputs used in the valuation techniques 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 (i.e. as prices) or indirectly (i.e. derived from prices).  Level 3 – inputs for the asset or liability that are not based on observable market data (unobservable inputs).

If the inputs used to measure the fair value of an asset or a liability might be categorised in different levels of the fair value hierarchy, then the fair value measurement is categorised in its entirety in the same level of the fair value hierarchy as the lowest level input that is significant to the entire measurement.

The Association recognises transfers between levels of the fair value hierarchy at the end of the reporting period during which the change has occurred.

Further information about the assumptions made in measuring fair values is included in the following notes:  Note 12 – investment property.

NOTE 3: CHANGES IN ACCOUNTING POLICIES The Association has consistently applied the accounting policies set out in Note 4 for all periods presented in these financial statements, except for the recognition timing of capitation/affiliation fees as revenue. Capitation/affiliation fees are now accounted for under AASB 118 Revenue whereas in the financial statements for the years ended 30 June 2016 and earlier, the Association has accounted for them under AASB 1004 Contributions. The change in accounting policy has no impact on the revenue recognised in the financial statements, further information is provided in Note 4 (h)(i).

NOTE 4: SIGNIFICANT ACCOUNTING POLICIES The accounting policies set out below have been applied consistently to all periods presented in these financial statements by the Association.

A) FINANCIAL INSTRUMENTS (i) Non-derivative financial assets The Association initially recognises receivables and deposits on the date that they originate. All other financial assets (including assets designated at fair value through profit and loss) are recognised initially on the trade date at which the Association becomes a party to the contractual provisions of the instrument.

The Association derecognises a financial asset when the contractual rights to the cash flows from the asset expire, or it transfers the rights to receive the contractual cash flows on the financial asset in a transaction in which substantially all the risks and rewards of ownership of the financial asset are transferred. Any interest in transferred financial assets that is created or retained by the Association is recognised as a separate asset or liability.

Financial assets and liabilities are offset and the net amount presented in the financial position when, and only when, the Association has a legal right to offset the amounts and intends either to settle on a net basis or to realise the asset and settle the liability simultaneously.

The Association has the following non-derivative financial assets: held-to maturity financial assets, receivables, and cash and cash equivalents.

Held-to-maturity financial assets Held-to-maturity financial assets are recognised initially at fair value plus any directly attributable transaction costs.

Subsequent to initial recognition held-to-maturity financial assets are measured at amortised cost using the effective interest method, less any impairment losses (see note 4e(i)). Any sale or reclassification of a more than insignificant amount of held-to-maturity investments not close to their maturity would result in the reclassification of all held-to-maturity investments as available-for-sale, and prevent the Association from classifying investment securities as held-to-maturity for the current and the following two financial years.

Held to maturity financial assets comprise Term Deposits held with the Commonwealth Bank of Australia (see note 11).

Receivables Receivables are financial assets with fixed or determinable payments that are not quoted in an active market. Such assets are recognised initially at fair value plus any directly attributable transaction costs. Subsequent to initial recognition receivables are measured at amortised cost using the effective interest method, less any impairment losses (see note 4e(i)).

Receivables comprise accrued income, prepayments and sundry debtors (see note 10).

Cash and cash equivalents Cash and cash equivalents comprise cash balances and bank bills with original maturities of three months or less from the acquisition date that are subject to an insignificant risk of changes in their fair value, and are used by the Association in the management of short-term commitments. (ii) Non-derivative financial liabilities The Association’s other financial liabilities are recognised initially on the trade date which is the date that the Association becomes a party to the contractual provisions of the instrument.

The Association derecognises a financial liability when its contractual obligations are discharged or cancelled or expire.

Financial assets and liabilities are offset and the net amount presented in the statement of financial position when, and only when, the Association has a legal right to offset the amounts and intends either to settle on a net basis or to realise the asset and settle the liability simultaneously.

The financial liabilities are recognised at fair value plus any directly attributable transaction costs. Subsequent to initial recognition these financial liabilities are measured at amortised cost using the effective interest rate method. Other financial liabilities comprise trade and other payables. (iii) Share capital The Association is an unincorporated registered organisation under the Fair Work (Registered Organisations) Act 2009 and does not have share capital.

B) FOREIGN CURRENCY (i) Foreign currency transactions Transactions in foreign currencies are translated to the functional currency of the Association at exchange rates at the dates of the transactions. Monetary assets and liabilities denominated in foreign currencies at the reporting date are retranslated to the functional currency at the exchange rate at that date. The foreign currency gain or loss on monetary items is the difference between amortised cost in the functional currency at the beginning of the period, adjusted for effective interest and payments during the period, and the amortised cost in foreign currency translated at the exchange rate at the end of the year.

Non-monetary assets and liabilities denominated in foreign currencies that are measured at fair value are retranslated to the functional currency at the exchange rate at the date that the fair value was determined. Non-monetary items in a foreign currency that are measured in terms of historical cost are translated using the exchange rate at the date of the transaction.

Foreign currency differences arising on retranslation are recognised in profit or loss.

C) PROPERTY, PLANT AND EQUIPMENT (i) Recognition and measurement Items of property, plant and equipment are measured at cost less accumulated depreciation and accumulated impairment losses. Cost includes expenditures that are directly attributable to the acquisition of the asset.

When parts of an item of property, plant and equipment have different useful lives, they are accounted for as separate items of property, plant and equipment.

The gain or loss on disposal of an item of property, plant and equipment is determined by comparing the proceeds from disposal with the carrying amount of property, plant and equipment and is recognised net within other income/other expenses in profit or loss. (ii) Subsequent costs The cost of replacing part of an item of property, plant and equipment is recognised in the carrying amount of the item if it is probable that the future economic benefits embodied within the part will flow to the Association and its cost can be measured reliably. The carrying amount of the replaced part is derecognised. The costs of the day-to-day servicing of property, plant and equipment are recognised in profit or loss as incurred. (iii) Depreciation Depreciation is calculated over the depreciable amount, which is the cost of an asset, or other amount substituted for cost, less its residual value.

Depreciation is recognised in profit or loss on a straight-line or diminishing value over the estimated useful lives of each part of an item of property, plant and equipment, to most closely reflect the expected pattern of consumption of the future economic benefits embodied in the asset. Leased assets are depreciated over the shorter of the lease term and their useful lives unless it is reasonably certain that the Association will obtain ownership by the end of the lease term.

The estimated useful lives in the current and comparative periods are as follows: 2017 2016 Leasehold improvements 5-20 years 5-20 years Fixtures and fittings 4-20 years 4-20 years Motor vehicles 8 years 8 years Depreciation methods, useful lives and residual values are reviewed at each financial year-end and adjusted if appropriate.

D) INVESTMENT PROPERTY Investment property is property held either to earn rental income or for capital appreciation or for both, but not for sale in the ordinary course of business, use in the production or supply of goods or services or for administrative purposes.

Investment property is measured at cost on initial recognition and subsequently at fair value with any change therein recognised in profit or loss. Refer to note 12(b) for details of determination of fair value.

Cost includes expenditure that is directly attributable to the acquisition of the investment property. The cost of selfconstructed investment property includes the cost of materials and direct labour, any other costs directly attributable to bringing the investment property to a working condition for their intended use and capitalised borrowing costs.

Any gain or loss on disposal of an investment property (calculated as the difference between the net proceeds from disposal and the carrying amount of the item) is recognised in profit and loss. When an investment property that was previously classified as property, plant and equipment is sold, any related amount included in the revaluation reserve is transferred to retained earnings.

When the use of a property changes such that it is reclassified as property, plant and equipment, its fair value at the date of reclassification becomes its cost for subsequent accounting.

SDA 2017 FINANCIAL REPORTS  PAGE 27  SDA NEWS, SPRING 2017

E) IMPAIRMENT (i) Non-derivative financial assets A financial asset not carried at fair value through profit or loss is assessed at each financial reporting date to determine whether there is objective evidence that it is impaired. A financial asset is impaired if objective evidence indicates that a loss event has occurred after the initial recognition of the asset, and that the loss event has a negative effect on the estimated future cash flows of that asset that can be estimated reliably.

Objective evidence that financial assets (including receivables) are impaired can include default or delinquency by a debtor, restructuring of an amount due to the Association on terms the Association would not consider otherwise, indications that a debtor or issuer will enter bankruptcy, or the disappearance of an active market for a security.

Financial asset at amortised cost The Association considers evidence of impairment for receivables at both a specific asset and collective level. All individually significant receivables are assessed for specific impairment, and those found not to be specifically impaired are then collectively assessed for any impairment that has been incurred but not yet identified. Receivables that are not individually significant are collectively assessed for impairment by grouping together those with similar risk characteristics.

In assessing collective impairment the Association uses historical trends of the probability of default, timing of recoveries and the amount of loss incurred, adjusted for management’s judgement as to whether current economic and credit conditions are such that actual losses are likely to be greater or less than suggested by historical trends.

An impairment loss in respect of a financial asset measured at amortised cost is calculated as the difference between its carrying amount and the present value of the estimated future cash flows discounted at the asset’s original effective interest rate. Losses are recognised in profit or loss and reflected in an allowance account against receivables or held-tomaturity investment securities. Interest on the impaired asset continues to be recognised. When a subsequent event (e.g. repayment by a debtor) causes the amount of impairment loss to decrease, the decrease in impairment loss is reversed through profit or loss. (ii) Non-financial assets The carrying amounts of the Association’s non-financial assets, other than investment property, are reviewed at each reporting date to determine whether there is any indication of impairment. If any such indication exists, the asset’s recoverable amount is estimated.

An impairment loss is recognised if the carrying amount of an asset or its cash-generating unit (CGU) exceeds its recoverable amount. A CGU is the smallest identifiable asset group that generates cash flows that largely are independent from other assets and groups. Impairment losses are recognised in profit or loss.

The recoverable amount of an asset or CGU is the greater of its value in use and its fair value less costs to sell. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset or CGU. Impairment losses recognised in prior periods are assessed at each reporting date for any indications that the loss has decreased or no longer exists. An impairment loss is reversed if there has been a change in the estimates used to determine the recoverable amount. An impairment loss is only reversed to the extent that the asset’s carrying amount does not exceed the carrying amount that would have been determined, net of depreciation or amortisation, if no impairment loss had been recognised.

F) EMPLOYEE BENEFITS (i) Defined benefit plans The Association’s net obligation in respect of defined benefit plans is calculated separately for each plan by estimating the amount of future benefit that employees have earned in the current and prior periods, discounting that amount and deducting the fair value of any plan assets.

The calculation of defined benefit obligations is performed annually by a qualified actuary using the projected unit credit method. When the calculation results in a potential asset for the Association, the recognised asset is limited to the present value of economic benefits available in the form of any future refunds from the plan or reductions in future contributions to the plan. To calculate the present value of economic benefits, consideration is given to any applicable minimum funding requirements.

Remeasurements of the net defined benefit liability, which comprise actuarial gains and losses, the return on plan assets (excluding interest) and the effect of the asset ceiling (if any, excluding interest), are recognised immediately in other comprehensive income. The Association determines the net interest expense (income) on the net defined benefit liability (asset) for the period by applying the discount rate used to measure the defined benefit obligation at the beginning of the annual period to the then-net defined benefit liability (asset), taking into account any changes in the net defined benefit liability (asset) during the period as a result of contributions and benefit payments. Net interest expense and other expenses related to defined benefit plans are recognised in profit or loss.

When the benefits of a plan are changed or when a plan is curtailed, the resulting change in benefit that relates to past service or the gain or loss on curtailment is recognised immediately in profit or loss. The Association recognises gains and losses on the settlement of a defined benefit plan when the settlement occurs. (ii) Other long-term employee benefits The Association’s net obligation in respect of long-term employee benefits other than defined benefit superannuation funds is the amount of future benefit that employees have earned in return for their service in the current and prior periods plus related on-costs; that benefit is discounted to determine its present value, and the fair value of any related assets is deducted. The discount rate is the yield at the reporting date on Australian Corporate bonds that have maturity dates approximating the terms of the Association’s obligations in which the benefits are expected to be paid. (iii) Short-term benefits Liabilities for employee benefits for wages, salaries and annual leave represent present obligations resulting from employees’ services provided to reporting date and are calculated at undiscounted amounts and expensed based on remuneration wage and salary rates that the Association expects to pay as at reporting date including related on-costs, such as workers compensation insurance and payroll tax. Amounts that are expected to be settled beyond 12 months are measured in accordance with long term benefits.

G) PROVISIONS A provision is recognised if, as a result of a past event, the Association has a present legal or constructive obligation that can be estimated reliably, and it is probable that an outflow of economic benefits will be required to settle the obligation.

H) REVENUE (i) Capitation/affiliation fees Capitation/affiliation fees are fees received from the Branches of the Association in accordance with the rules of the Association. Such fees are referred to as affiliation fees in the rules and are calculated as a percentage of gross Branch membership income and paid annually in March for the financial year (1 July to 30 June). Revenue (received or receivable) from affiliation fees is accounted for on an accrual basis under AASB 118 Revenue standard and is recorded as revenue in the financial year to which it relates.

In the financial statements for the years ended 30 June 2016 and earlier, the Association had accounted for affiliation fees as contributions revenue and recognised them upon receipt under AASB 1004 Contributions standard. Under AASB 1004 governing the recognition, measurement and disclosure requirements surrounding contributions to not-for-profit entities, the fees received were represented as non-reciprocal transfers (no resulting equivalent obligations to the Branch for fees paid) and recognised upon receipt. A policy change has been made to align the accounting treatment of these receipts with the recommendations of the Registered Organisations Commission that the monies must be accounted for on an accruals basis.

The change in accounting policy changes the recognition of affiliation fees receivable at year end. As there are no receivable affiliation fees in current or prior financial years, there is no impact on the financial statements. (ii) Rental income Rental income from investment property is recognised in profit or loss on a straight line basis over the term of the lease.

Lease incentives granted are recognised as an integral part of the total rental income, over the term of the lease.

I) FINANCE INCOME Finance income comprises interest income on funds invested. Interest income is recognised as it accrues in profit or loss, using the effective interest method.

Foreign currency gains and losses are reported on a net basis as either finance income or finance cost depending on whether foreign currency movements are in a net gain or net loss position.

J) LEASES (i) Lease payments Payments made under operating leases are recognised in profit or loss on a straight-line basis over the term of the lease.

Lease incentives received are recognised as an integral part of the total lease expense, over the term of the lease.

Minimum lease payments made under finance leases are apportioned between the finance expense and the reduction of the outstanding liability. The finance expense is allocated to each period during the lease term so as to produce a constant periodic rate of interest on the remaining balance of the liability. (ii) Determining whether an arrangement contains a lease At inception of an arrangement, the Association determines whether such an arrangement is or contains a lease. This will be the case if the following two criteria are met: the fulfilment of the arrangement is dependent on the use of a specific asset or assets; and the arrangement contains a right to use the asset(s).

At inception or upon reassessment of the arrangement, the Association separates payments and other consideration required by such an arrangement into those for the lease and those for other elements on the basis of their relative fair values. If the Association concludes for a finance lease that it is impracticable to separate the payments reliably, an asset and a liability are recognised at an amount equal to the fair value of the underlying asset. Subsequently the liability is reduced as payments are made and an imputed finance charge on the liability is recognised using the Association’s incremental borrowing rate.

K) INCOME TAX The Association is exempt from income tax under Division 50, section 50-15 of the Income Tax Assessment Act 1997.

L) GOODS AND SERVICES TAX Revenue, expenses and assets are recognised net of the amount of goods and services tax (GST), except where the amount of GST incurred is not recoverable from the taxation authority. In these circumstances, the GST is recognised as part of the cost of acquisition of the asset or as part of the expense.

Receivables and payables are stated with the amount of GST excluded, as the Association reports to the ATO for GST on a cash-basis. The net amount of GST recoverable from, or payable to, the ATO is included as a current asset or liability in the balance sheet.

Cash flows are included in the statement of cash flows on a gross basis. The GST components of cash flows arising from investing and financing activities which are recoverable from, or payable to, the ATO are classified as operating cash flows.

M) SEGMENT REPORTING An operating segment is a component of the Association that engages in business activities from which it may earn revenues and incur expenses, including revenues and expenses that relate to transactions with any of the other Association’s other components. All operating segments’ operating results are reviewed regularly by the Association’s office holders to make decisions about resources to be allocated to the segment and to assess its performance, and for which discrete financial information is available.

N) NEW STANDARDS AND INTERPRETATIONS NOT YET ADOPTED A number of new standards, amendments to standards and interpretations are effective for annual periods beginning after 1 July 2016, and have not been applied in preparing these financial statements. Those which may be relevant to the Association are set out below. The Association does not plan to adopt these standards early. (i) AASB 9 Financial Instruments AASB 9 Financial Instruments, published in July 2014, replaces the existing guidance in AASB 139 Financial Instruments: Recognition and Measurement. AASB 9 includes revised guidance on the classification and measurement of financial instruments, a new expected credit loss model for calculating impairment on financial instruments, and new general hedge accounting requirement. It also carries forward the guidance on recognition and derecognition of financial instruments from AASB 139. AASB 9 is effective for annual periods beginning on or after 1 January 2018 with early adoption permitted.

The adoption of this standard is not expected to have a material impact on the financial statements. (ii) AASB 15 Revenue from Contracts with Customers AASB 15 establishes a comprehensive framework for determining whether, how much, and when revenue is recognised. It replaces existing revenue recognition guidance, including AASB 118 Revenue, AASB 111 Construction Contracts and IFRIC 13 Customer Loyalty Programmes. AASB 15 is effective for annual reporting periods beginning on or after 1 January 2018. The adoption of this standard is not expected to have a material impact on the financial statements. (iii) AASB 16 Leases AASB 16 removes the lease classification test for lessees and requires all leases (including operating leases) to be brought onto the balance sheet. AASB 16 is effective for annual reporting periods beginning on or after 1 January 2019, with early adoption permitted where AASB 15 Revenue from Contracts with Customers is adopted at the same time. The adoption of this standard is not expected to have a material impact on the financial statements.

NOTE 5: SEGMENT REPORTING The Association operates in one geographical location, being Australia and in one industry, being trade union activities for the benefit of its members.

NOTE 6: FINANCIAL RISK MANAGEMENT The Association has exposure to the following risks from their use of financial instruments: a) Credit risk b) Liquidity risk c) Market risk d) Operational risk This note presents information about the Association’s exposure to each of the above risks, their objectives, policies and processes for measuring and managing risk, and their management of capital. Further quantitative disclosures are included throughout these financial statements.

Risk Management Framework The National Executive has overall responsibility for the establishment and oversight of the risk management framework.

Risk management policies are established to identify and analyse the risks faced by the Association, to set appropriate risk limits and controls, and to monitor risks and adherence to limits. Risk management policies and systems are reviewed regularly to reflect changes in market conditions and the Association’s activities. The Association, through its training and management standards and procedures, aims to develop a disciplined and constructive control environment in which all employees understand their roles and obligations.

A) CREDIT RISK Credit risk is the risk of financial loss to the Association if a customer or counterparty to a financial instrument fails to meet its contractual obligations, and arises principally from the Association’s receivables from customers and other financial assets. (i) Receivables The Association’s exposure to credit risk is influenced mainly by the individual characteristics of each customer or tenant.

Credit evaluations are performed on all tenants of the investment property prior to the signing of a lease agreement and security deposits are required by way of bank guarantees or cash, to be held for the term of all leases. None of the tenants were in arrears at the balance sheet date and there is no indication to management that any of the tenants present a significant credit risk. All receivables are with tenants in the Australian geographical region and therefore no impairment loss has been recognised at balance date (2016: no impairment loss). (ii) Cash and cash equivalents The Association held cash and cash equivalents of $925,867 at 30 June 2017 (2016: $854,503), which represents its maximum credit exposure on these assets. The cash and cash equivalents are held with bank and financial institution counterparties which are located in Australia, currently the CBA with a current long term credit rating of Aa3 (Moody’s Investor Services).

B) LIQUIDITY RISK Liquidity risk is the risk that the Association will encounter difficulty in meeting the obligations associated with its financial liabilities that are settled by delivering cash or another financial asset. The Association’s approach to managing liquidity is to ensure, as far as possible, that it will always have sufficient liquidity to meet its liabilities when due, under both normal and stressed conditions, without incurring unacceptable losses or risking damage to the Association’s reputation.

The Association prepares budgets and cash flow forecasts, which assists it in monitoring cash flow requirements and optimising its cash return on investments. Typically the Association ensures that it has sufficient cash on demand to meet expected operational expenses for a period of at least 120 days, the maximum term of its primary financial assets being term deposits. This excludes the potential impact of extreme circumstances that cannot reasonably be predicted, such as natural disasters. Refer to note 17.

C) MARKET RISK Market risk is the risk that changes in market prices, such as foreign exchange rates, interest rates and equity prices will affect the Association’s income or the value of its holdings of financial instruments. The objective of market risk management is to manage and control market risk exposures within acceptable parameters, while optimising the return. (i) Currency risk The Association has limited exposure to currency risks on International Fund transactions (international affiliation fees and donations) that are denominated in a currency other than the functional currency, being the Australian dollar (AUD). The currencies in which these transactions primarily are denominated are Swiss Francs (CHF) and Singapore dollars (SGD).

Refer to note 17 for further details.

The Association uses at its discretion forward exchange contracts (typically 1-3 months) to hedge its currency risk, with maturity dates the same as the due dates of the International Fund transactions. At reporting date there were no forward exchange contracts in place. (ii) Interest rate risk The Association’s interest rate risk arises from its investments in bank bills, term deposits and cash management accounts.

Bank bills and term deposits are issued at fixed rates for terms of between 30 and 120 days. The Association maintains a number of different bank bills and term deposits maturing at regular intervals to smooth fluctuations in interest rates being offered. The majority of cash reserves are held in term deposits, with cash management bank accounts (with variable interest rates) used to provide liquidity funds at call.

D) OPERATIONAL RISK Operational risk is the risk of direct or indirect loss arising from a wide variety of causes associated with the Association’s processes, personnel, technology and infrastructure, and from external factors other than credit, market and liquidity risks such as those arising from legal and regulatory requirements and generally accepted standards of corporate behaviour.

SDA 2017 FINANCIAL REPORTS  PAGE 28  SDA NEWS, SPRING 2017

Operational risks arise from all of the Association’s operations.

The Association’s objective is to manage operational risk so as to balance the avoidance of financial losses and damage to the Association’s reputation with overall cost effectiveness and to avoid control procedures that restrict initiative and creativity.

The primary responsibility for the development and implementation of controls to address operational risk is assigned to senior management within the Association. This responsibility is supported by the development of overall Association standards for the management of operational risk in the following areas: Requirements for appropriate segregation of duties, including the independent authorisation of transactions; Requirements for the reconciliation and monitoring of transactions; Compliance with regulatory and other legal requirements; Documentation of controls and procedures; Requirements for the periodic assessment of operational risks faced, and the adequacy of controls and procedures to address the risks identified; Requirements for the reporting of operational losses and proposed remedial action; Development of contingency plans; Training and professional development; Ethical and business standards; Risk mitigation, including insurance where this is effective.

Capital management The Association’s policy is to maintain a strong capital base so as to maintain member, creditor and market confidence and to sustain future development of the union’s activities. The National Executive monitors the return on capital and seeks to maintain a conservative position between higher returns and the advantages and security afforded by a sound capital position.

There were no changes in the Association’s approach to capital management during the year, and the Association is not subject to externally imposed capital requirements.

NOTE 7: OTHER INCOME Note 2017 $ 2016 $ 53 Queen Street, Melbourne - Rental income from investment property 18 1,412,026 1,392,477 53 Queen Street, Melbourne - Fair value increment 12 1,218,600 825,905 ACTU trust distributions 22 149,186 145,232 SDA Branch reimbursements 22 224,625 652,851 Other organisation reimbursements 4,415 Legal costs awarded 45,250 CARE director’s fees 30,184 REST director’s fees 22 126,027 121,424 Other income 507 3,175,714 3,172,995 NOTE 8: AUDITOR’S REMUNERATION

Audit services Auditors of the Association

KPMG Australia:

Audit and review of financial reports 30,709 26,112 30,709 26,112 Other services Auditors of the Association KPMG Australia: Other assurance services 2,693 2,643 2,693 2,643 TOTAL AUDITORS’ REMUNERATION 33,402 28,755 NOTE 9: CASH AND CASH EQUIVALENTS Cash at bank 98,468 129,499 Cash management accounts 768,833 626,992 Term deposits 58,566 98,012 925,867 854,503 The Association’s exposure to interest rate risk and a sensitivity analysis for financial assets is disclosed in note 17.

NOTE 10: RECEIVABLES Accrued interest income 111,941 126,366 Prepayments 63,734 74,594 Receivables from related parties 22 Sundry debtors 515,478 435,526 691,153 636,486 The Association’s exposure to credit and currency risks, and impairment losses related to receivables is disclosed in note 17.

NOTE 11: OTHER FINANCIAL ASSETS Term deposits 27,500,000 26,700,000 27,500,000 26,700,000 Term deposits have stated interest rates of 2.34 to 2.45 percent (2016: 2.65 to 2.85 percent) and mature in 120 days or more.

The Association’s exposure to credit and interest rate risk is disclosed in note 17.

During the year ended 30 June 2017, the Association received interest income of $652,319 (2016: $715,516) in respect of financial assets not at fair value through profit and loss.

NOTE 12: INVESTMENT PROPERTY (A) RECONCILIATION OF CARRYING AMOUNT

Property Balance at 1 July 18,500,000 17,400,000 Capital improvements 31,400 274,095 Fair value adjustment (refer below) 1,218,600 825,905 Balance at 30 June 19,750,000 18,500,000 Investment property comprises a commercial property located at 53 Queen Street, Melbourne. The Association retains possession of levels 6 and 7 as its registered head office and leases the remaining floors to third parties. Each of the leases contains an initial non-cancellable period of a minimum of three years, with fixed percentage annual rent increases. Some lease incentives were paid towards tenancy fit-outs and are being amortised over the period of the leases on a straight line basis. Subsequent renewals are negotiated with the lessee and on average renewal periods are 4 years. No contingent rents are paid. Further information about these leases are contained in Note 18.

(B) MEASUREMENT OF FAIR VALUE (i) Fair value hierarchy The fair value of investment property was determined by external, independent property valuers, having appropriate recognised professional qualifications and recent experience in the location and category of the property being valued.

The independent valuers provide the fair value of the Association’s investment property at least every two years. In years where external, independent valuations are not obtained, these are substituted with Association management performing internal valuations utilising publicly available market data for properties with similar characteristics to the Association’s investment property.

The fair value measurement for investment property of $19,750,000 was determined at 30 June 2017 by Gary Longden, Director and certified practising valuer of M3 Property P/L, a registered independent appraiser having an appropriate recognised professional qualification from Australian Property Institute and recent experience in the location and category of the property being valued. The fair value measurement has been categorised as a Level 3 fair value based on the inputs to the valuation technique used (see Note 2(d)). (ii) Level 3 fair value – valuation technique and significant unobservable inputs The following shows the valuation technique used in measuring the fair value of investment property, as well as the significant unobservable inputs used.

Valuation techniques: Discounted cash flow approach (2017), Discounted cash flow approach (2016) Discounted cash flow approach: The discounted cash flow approach involves formulating a projection of net income over a specified horizon, typically ten years, and discounting this cash flow including the projected terminal value at the end of the projection period at an appropriate rate. The present value of this discounted cash flow represents the Market value of the property.

Significant unobservable inputs 2017: Discount rate 7.00%, 2016: Discount rate 7.75%.

Inter-relationship between key unobservable inputs and fair value measurement The estimated fair value would increase (decrease) if: 2017: The discount rate was lower (higher), 2016: The discount rate was lower (higher) NOTE 13: PROPERTY, PLANT AND EQUIPMENT Cost Furniture and Motor Leasehold Total fittings Vehicles Improvements $ $ $ $ Balance at 1 July 2016 216,859 91,455 475,480 783,794 Acquisitions 92,268 41,039 216,558 349,865 Impairments (64,161) (64,161) Disposals Balance at 30 June 2017 244,966 132,494 692,038 1,069,498 Balance at 1 July 2015 195,639 91,455 470,870 757,964 Acquisitions 58,777 4,610 63,387 Impairments (28,161) (28,161) Disposals (9,396) (9,396) 216,859 91,455 475,480 783,794 Balance at 30 June 2016 Depreciation and impairment losses Balance at 1 July 2016 151,852 31,292 203,120 386,264 Depreciation expense for the year 34,759 22,349 43,853 100,961 Impairments (64,161) (64,161) Disposals Balance at 30 June 2017 122,450 53,641 246,973 423,064 Balance at 1 July 2015 155,677 11,237 167,172 334,086 Depreciation expense for the year 31,958 20,055 35,948 87,961 Impairments (28,161) (28,161) Disposals (7,622) (7,622) Balance at 30 June 2016 151,852 31,292 203,120 386,264 Carrying amounts At 1 July 2016 65,007 60,163 272,360 397,530 At 30 June 2017 122,516 78,853 445,065 646,434 At 1 July 2015 39,962 80,218 303,698 423,878 65,007 60,163 272,360 397,530 At 30 June 2016 NOTE 14: TRADE AND OTHER PAYABLES Note 2017 $ 2016 $ Payables to related parties 22 6,293 135,838 Sundry creditors – legal costs – litigation 35,000 Sundry creditors – legal costs – other legal matters 99,448 22,785 Sundry creditors – others 125,239 79,357 PAYG withholding tax payable 31,526 28,800 Tenant security deposits 55,866 95,312 318,372 397,092 The Association’s exposure to liquidity risk is disclosed in note 17 (b).

NOTE 15: EXPENSES

a) Grants or donations Grants that were $1,000 or less Grants that exceeded $1,000 Donations that were $1,000 or less 1,043 Donations that exceeded $1,000 204,546 1,040,178 204,546 1,041,221 b) Legal costs Litigation 120,541 47,995 Other legal matters 1,055,471 1,602,056 1,176,012 1,650,051 There were no penalties imposed on the Association under the RO Act with respect to the conduct of the Association.

NOTE 16: EMPLOYEE BENEFITS

Current liability Office holders Liability for long service leave 135,570 243,533 Liability for annual leave 41,872 75,626 177,442 319,159 Employees other than office holders Liability for long service leave 338,547 203,273 Liability for annual leave 252,199 239,733 590,746 443,006 768,188 762,165 Non-current liability Employees other than office holders Liability for long-service leave 32,079 12,732 32,079 12,732 Non-current asset Office holders and other employees Present value of funded obligations 2,728,898 2,705,058 Fair value of plan assets - funded (3,316,542) (3,061,649) Recognised (asset) for defined benefit obligations (587,644) (356,591) The Association makes contributions to the SDA (Victoria Branch) benefit superannuation plan, a sub-plan of the Retail Employees’ Superannuation Trust, that provide defined benefit amounts for office holders and other employees upon retirement.

The Association has determined that, in accordance with the terms and conditions of the defined benefit plans, and in accordance with statutory requirements (such as minimum funding requirements) of the plan of the respective jurisdictions, the present value of refunds or reductions in future contributions is not lower than the balance of the fair value of the plan assets less the total present value of obligations. As such, no decrease in the defined benefit asset is necessary at 30 June 2017 (30 June 2016: no decrease in the defined benefit asset).

The following tables analyse plan assets, present value of defined benefit obligations, expense recognised in profit or loss, actuarial assumptions and other information for the plan.

Movements in the net asset for defined benefit obligations recognised in the statement of financial position: Net (asset)/liability for defined benefit obligations at 1 July (356,591) (625,388) Contributions paid into the plan (90,327) (201,355) Amount recognised in other comprehensive income - actuarial losses/(gains) (236,470) 257,964 Expenses recognised in statement of comprehensive income within personnel expenses 95,744 212,188 Net (asset)/liability for defined benefit obligations at 30 June (587,644) (356,591) Movement in the present value of the defined benefit obligations Defined benefit obligations at 1 July 2,705,058 2,375,594 Current service cost 107,300 235,188 Interest cost 65,056 75,006 Actuarial losses/(gains) recognised in other comprehensive income (see below) (20,116) 225,434 Benefits paid by the plan (89,880) (166,589) Taxes, premium & expenses paid (38,520) (39,575) Defined benefit obligations at 30 June 2,728,898 2,705,058 All benefits are vested at the end of the reporting period.

Table continued on next page

SDA 2017 FINANCIAL REPORTS  PAGE 29  SDA NEWS, SPRING 2017

Table continued from previous page Movement in the present value of plan assets Fair value of plan assets at 1 July Expected return on plan assets at discount rate Actuarial (losses)/gains recognised in other comprehensive income (see below) Contributions paid Benefits paid Taxes and expenses Fair value of plan assets at 30 June Expense recognised in profit or loss Current service costs Net interest costs Re-measurements of net defined benefit liability/asset (Gain)/Loss on defined benefit obligation (Gain)/Loss on assets Recognised in other comprehensive expense/(income) Actuarial gains (and losses) recognised in other comprehensive income Cumulative amount at 1 July Recognised during the period Cumulative amount at 30 June The major categories of plan assets as a percentage of total fund assets are as follows:

2017 $ 3,061,649 76,612 216,354 90,327 (89,880) (38,520) 3,316,542

2016 $ 3,000,982 98,006 (32,530) 201,355 (166,589) (39,575) 3,061,649

107,300 (11,556) 95,744

235,188 (23,000) 212,188

(20,116) (216,354) (236,470)

225,434 32,530 257,964

(127,376) 236,470 109,094

130,588 (257,964) (127,376)

2017 2016 Australian Equity 19% 19% International Equity 29% 29% Fixed Income 6% 6% Property 11% 11% Cash 6% 6% Other 29% 29% Actuarial assumptions Principal actuarial assumptions at the reporting date (expressed as weighted averages): 2017 2016 Discount rate at 30 June 3.75% 3.25% Future salary increases 4.00% 4.00% Sensitivity analysis The calculation of the defined benefit obligation is sensitive to the assumptions set out above. The following table summarises how the impact on the defined benefit obligation at the end of the reporting period would have increased (decreased) as a result of a change in the respective assumptions by one percent.

2017 $ 2016 $ Additional DBO for a 1% decrease in the discount rate 173,554 176,742 Reduction in DBO for a 1% increase in the discount rate 94,588 139,446 The above sensitivities are based on the average duration of the benefit obligation determined by the actuary as at 30 June 2017 and are applied to adjust the defined benefit obligation at the end of the reporting period for the assumptions concerned. Whilst the analysis does not take account of the full distribution of cash flows expected under the plan, it does provide an approximation to the sensitivity of the assumptions shown.

Historical information 2017 $ 2016 $ 2015 $ 2014 $ 2013 $ Present value of the defined benefit obligation 2,728,898 2,705,058 2,375,594 2,463,350 2,297,379 Fair value of plan assets - funded (3,316,542) (3,061,649) (3,000,982) (2,934,258) (2,210,480) Recognised (asset)/liability for defined benefit obligation (587,644) (356,591) (625,388) (470,908) 86,899 Funding The plan is fully funded by the Association. The funding requirements are based on the plan fund’s actuarial measurement framework set out in the funding policies of the plan. The funding is based on a separate actuarial valuation for funding purposes for which the assumptions may differ from the assumptions above. Employees are not required to contribute to the plan.

The Association expects to contribute $98,821 to its defined benefit superannuation funds during the year ended 30 June 2018.

NOTE 17: FINANCIAL INSTRUMENTS (A) CREDIT RISK Exposure to credit risk The carrying amount of the Association’s financial assets represents the maximum credit exposure. The Association’s maximum exposure to credit risk at the reporting date was: Carrying amount Note 2017 $ 2016 $ Current Cash and cash equivalents 9 925,867 854,503 Receivables 10 691,153 636,486 Other financial assets 11 27,500,000 26,700,000 29,117,020 28,190,989 Impairment losses None of the Association’s receivables are past due (2016: nil) and based on historic default rates and the minimal credit risk, the Association believes no impairment allowance is necessary. The other financial assets are all bank bills and term deposits issued by the Commonwealth Bank of Australia and the Association believes no impairment allowance is necessary. At 30 June 2017 the Association does not have any collective impairments on its cash and cash equivalents, receivables or other financial assets (2016: nil). All receivables are in the Australia geographic region.

(B) LIQUIDITY RISK The carrying amount of the Association’s financial liabilities is represented by trade and other payables (note 14). The carrying amounts approximate contractual cash flows and all are due in 3 months or less (2016: 3 months or less). The Association has adequate financial assets to meet these liabilities and assesses liquidity risk as minimal.

(C) CURRENCY RISK International Fund transactions requiring settlement in foreign currencies represent the carrying amount and maximum exposure to currency risk. The Association has no contractual obligations (trade payables or receivables) or forward exchange contracts in place at reporting date (2016:nil).

(D) INTEREST RATE RISK Profile At the reporting date the interest rate profile of the Association’s interest-bearing financial instruments was: Note Effective interest rate % Carrying amount $ 2017 Financial assets Cash and cash equivalents (fixed and variable rates) 9 0.61% 925,867 Other financial assets (fixed rate) 11 2.39% 27,500,000 28,425,867 2016 Financial assets Cash and cash equivalents (fixed and variable rates) 9 0.70% 854,503 Other financial assets (fixed rate) 11 2.78% 26,700,000 27,554,503 Fair value sensitivity analysis for fixed rate instruments The Association does not account for any fixed and variable rate financial assets at fair value through profit or loss.

Therefore a change in interest rates at the reporting date would not affect profit or loss.

Fair value sensitivity analysis for variable rate instruments Variable rate instruments consist of cash management bank accounts, shown in cash and cash equivalents (note 9). A change of 100 basis points in interest rates at the reporting date would have increased (decreased) equity and profit or loss by the amounts shown below. This analysis assumes that all other variables remain constant. The analysis is performed on the same basis for 2016.

Profit or loss 100bp increase 100bp decrease

7,688 (7,688)

30 June 2017 Cash management accounts 30 June 2016 Cash management accounts 6,270 (6,270) Fair values The fair value of the Association’s assets and liabilities as at 30 June 2017 approximate their carrying amounts shown in the statement of financial position.

NOTE 18: OPERATING LEASES Leases as lessor The Association leases out its investment property under operating leases (see note 12). The future minimum lease income under non-cancellable leases are as follows: 2017 $ 2016 $ Less than one year 1,341,913 1,092,271 Between one and five years 3,026,131 1,745,954 More than five years 145,867 4,368,044 2,984,092 During the year, the Association recognised $1,412,026 as rental income in the statement of profit or loss and other comprehensive income (2016: $1,392,477).

NOTE 19: CONTROLLED ENTITIES Parent entity The Association comprises the Shop, Distributive and Allied Employees’ Association National Account and the International Fund.

2017 % 2016 % Controlled Entity Ordinary shares WT Travel Pty Ltd 100 100 WT Travel Pty Ltd, an Australian controlled entity, was purchased by the Shop Distributive and Allied Employees’ Association National Executive on 30 September 1993. It formerly traded as a travel agency, but is currently a dormant company. Given WT Travel is a dormant company and its results and financial position at 30 June 2017 are nil, consolidated accounts are not prepared.

NOTE 20: PERSONNEL EXPENSES 2017 $ 2016 $

Holders of office: Wages and salaries 262,449 259,079 Superannuation (including expenses related to defined benefit plan) 23,112 48,647 Leave and other entitlements 41,388 29,458 Separation and redundancies Other employee expenses 59,718 45,630 Subtotal employee expenses - holders of office 386,667 382,814 Employees other than office holders: Wages and salaries 938,750 869,135 Superannuation (including expenses related to defined benefit plan) 90,211 170,055 Leave and other entitlements 137,750 93,481 Separation and redundancies Other employee expenses 79,238 72,291 Subtotal employee expenses - employees other than office holders 1,245,949 1,204,962 Total employee expenses 1,632,616 1,587,776 NOTE 21: RECONCILIATION OF CASH FLOWS FROM OPERATING ACTIVITIES Profit for the period 2,472,868 330,081 Adjustment for: Depreciation 100,961 87,961 Fair value (increment) / decrement on investment property (1,218,600) (825,905) (Profit)/Loss on disposal of property, plant and equipment (507) Actuarial gains/(losses) recognised in equity on defined benefit plan 236,470 (257,964) Operating profit before changes in working capital & provisions 1,591,699 (666,334) Change in accrued interest income 14,425 2,505 Change in prepayments 10,860 (1,158) Change in sundry debtors (79,952) 61,714 Change in pension asset/(liability) (231,053) 268,797 Change in trade and other payables (78,720) (54,317) Change in provisions and employee benefits 25,370 (23,829) Net cash from/(used in) operating activities 1,252,629 (412,622) NOTE 22: RELATED PARTY DISCLOSURES BRANCHES The Association received from its branches the following capitation/affiliation fees: Capitation/affiliation fees Newcastle 389,718 368,343 New South Wales 1,705,343 1,597,611 Queensland 1,035,089 932,743 South Australia 779,899 750,908 Tasmania 173,751 170,125 Victoria 1,341,155 1,303,494 Western Australia 742,327 701,381 6,167,282 5,824,605 The Association received from its branches the following expense reimbursements: 2017 ACTU IR Penalty Rate ALP Election 100% Pay Other Intranet TOTAL Campaign Campaign Donation - Week of $ $ $ Levy $ $ $ Action $ Newcastle 15,697 164 5,994 21,855 New South Wales 15,879 4,430 25,254 45,563 Queensland 15,524 3,966 13,567 33,057 South Australia 30,736 17,949 11,926 60,611 Tasmania 139 2,276 2,415 Victoria 28,827 412 21,185 50,424 Western Australia 902 9,798 10,700 106,663 27,962 90,000 224,625 2016

ACTU IR Penalty Rate ALP Election 100% Pay Other $ Intranet $ TOTAL $ Campaign Campaign Donation $ - Week of Levy $ $ Action $ Newcastle 13,928 16,753 4,164 218 7,036 42,099 New South Wales 59,989 68,910 17,933 18,326 28,942 194,100 Queensland 31,302 38,341 9,358 109 16,103 95,213 South Australia 28,912 33,908 7,048 (135) 14,242 83,975 Tasmania 5,861 6,504 1,752 145 2,732 16,994 Victoria 50,444 58,199 15,080 264 24,443 148,430 Western Australia 23,578 27,385 8,643 932 11,502 72,040 214,014 250,000 63,978 19,859 105,000 652,851 No other compulsory levies or appeals for voluntary contributions were raised from its branches or members of the Association.

SDA 2017 FINANCIAL REPORTS  PAGE 30  SDA NEWS, SPRING 2017

The amounts paid or payable by the Association to its branches for expenses incurred on its behalf: 2017 $ 2016 $

Newcastle Meeting expenses - National Executive 775 Delegate expenses - travel 1,489 Campaigning expenses – wages 15,022 Campaigning expenses – radio & cinema ads 12,748 New South Wales Other expenses - office supplies & stationery 1,967 69 Delegate expenses – National Executive & other airfares 4,154 Publication expenses – Good Universities guide 4,750 Meeting expenses - other 640 Motor vehicle purchase & running expenses 2,367 Queensland Delegate expenses – National Executive airfares 1,595 1,689 South Australia Delegate expenses – travel 2,756 Tasmania Meeting Expenses – National Executive 8,591 Campaigning expenses - Penalty Rates advertising 7,294 Victoria Personnel expenses – reimbursement of Victorian payroll tax 73,822 72,063 Meeting Expenses – National Executive 2,737 Western Australia Delegate expenses - National Executive airfares 3,605 950 Meeting expenses – National Council 47,328 The amounts owed to its branches at 30 June 2017 by the Association, included in payables to related parties in Note 14: Newcastle 27,770 Tasmania 220 Victoria 6,293 7,848 6,293 35,838 AFFILIATES The amounts paid or payable by the Association to its affiliates for expenses incurred on its behalf: ACTU Affiliation fees paid 1,368,911 1,139,565 IR Campaign Levy 428,028 Donations - Worksite for Schools program 12,500 Legal fees reimbursed 2,000 Meeting expenses – attendance at conferences, forums & training 4,844 2,400 Campaigning - Advertising Campaigns 50,000 100,000 Union Network International (UNI) Affiliation fees paid 726,128 745,113 Donations – UNI-APRO Activities Fund 129,546 133,360 ALP National Secretariat Donation – 2016 Federal Election Campaign 530,000 Donation - Campaign Field Organiser Salaries 103,850 Other expenses - consulting – policy development project 20,000 ALP NSW Donation - Campaign Field Organiser Salaries 86,000 WA Labor Donation – 2016 Federal Election Campaign – Burt & Perth 44,469 ALP Eden Monaro Campaign Donation – 2016 Federal Election Campaign 25,000 The Association received trust distribution income of $149,186 (2016: $145,232) from the ACTU as an affiliate. In accordance with the ACTU “Constitution, Rules and Standing Orders” this was acquitted by the ACTU as additional affiliation fees and is included above.

The amounts owed to its affiliates at 30 June 2017 by the Association, included in payables to related parties in Note 14: ACTU 100,000 100,000 OTHER RELATED PARTIES Key management personnel The following were key management personnel of the Association during the financial year: Name Position Joseph de Bruyn Officer – National President Michael Donovan Officer – National Vice-President Gerard Dwyer Officer – National Secretary-Treasurer Julia Fox Officer – National Assistant Secretary (from October 2016) Ian Blandthorn (retired) Officer – National Assistant Secretary (until October 2016) Bernie Smith National Executive Member Paul Griffin National Executive Member Barbara Nebart National Executive Member Sonia Romeo National Executive Member Chris Gazenbeek National Executive Member Peter O’Keeffe National Executive Member Key management personnel remuneration The National Secretary-Treasurer and National Assistant Secretary are salaried employees of the Association with contributions made for them to a post-employment defined benefit superannuation fund. The Association also provides motor vehicles and parking to the National President, National Secretary-Treasurer and National Assistant Secretary, and accommodation to the National Secretary-Treasurer when travelling to the registered National Office in Melbourne.

The National Vice-President receives an honorarium. As the National Executive Members are not paid by the Association, there are only 4 remunerated officer holders of the Association.

The Association pays or reimburses travel, accommodation and meal allowances for the National Officers and the National Executive Members whilst attending National Council and/or National Executive meetings or performing other Association duties. The National Officers and National Executive Members are allowed to keep any frequent flyer points or rewards earned as a result of such travel, the value of which cannot be determined.

Key management personnel compensation to the National Officers comprised: 2017 $ 2016 $ Short-term employee benefits 541,927 532,165 Post-employment benefits 59,344 62,288 Other long term benefits 13,604 4,958 614,875 599,411 Note 16 discloses liabilities for annual leave and long service leave for office holders.

The remuneration by officer comprised: 2017 Gerard Dwyer Michael Joseph Julia Fox Ian Blandthorn Total $ Secretary- Donovan Vice- de Bruyn Assistant Assistant Treasurer President President Secretary Secretary (8 months) (4 months) Short-term employee benefits Salary (including annual leave taken) 153,061 89,578 40,781 283,420 Honorarium & gifts 3,500 4,000 7,500 Annual leave accrued 3,364 2 3,446 6,812 REST Director Fees 153,425 153,425 Non-monetary (accommodation, motor vehicle & parking) 42,700 25,255 15,829 6,986 90,770 199,125 3,500 178,680 105,409 55,213 541,927 Total short-term employee benefits Post-employment benefits Superannuation-Defined Benefit 22,959 13,437 6,117 42,513 14,575 2,256 16,831 Superannuation (REST SG payments) Total post-employment benefits 22,959 14,575 13,437 8,373 59,344 Other long-term benefits Long-service leave 7,380 4,953 1,271 13,604 7,380 4,953 1,271 13,604 Total other long-term benefits Total 229,464 3,500 193,255 123,799 64,857 614,875

2016 $

Gerard Dwyer Michael Joseph Secretary- Donovan Vice- de Bruyn Treasurer President President

Julia Fox Ian Blandthorn Assistant Assistant Secretary Secretary

Total

Short-term employee benefits Salary (including annual leave taken) 148,698 128,418 277,116 Honorarium & gifts 3,500 3,500 Annual leave accrued 2,468 3,994 6,462 REST Director Fees 147,298 147,298 Non-monetary (accommodation, 42,780 27,113 27,896 97,789 motor vehicle & parking) 193,946 3,500 174,411 160,308 532,165 Total short-term employee benefits Post-employment benefits Superannuation-Defined Benefit 22,305 19,263 41,568 Superannuation (REST SG payments) 13,993 6,727 20,720 Total post-employment benefits 22,305 13,993 25,990 62,288 Other long-term benefits Long-service leave 3,052 1,906 4,958 3,052 1,906 4,958 Total other long-term benefits 219,303 3,500 188,404 188,204 599,411 Total Apart from the details disclosed in this note, no officer has entered into any material transactions with the Association since the end of the previous financial year and there were no material contracts involving officers’ interests existing at year-end.

Superannuation Contributions of $90,327 (2016: $201,355) were made to a post-employment defined benefit fund managed by the Retail Employees’ Superannuation Trust (“REST”) on behalf of salaried office holders and employees other than office holders.

The Association received director fees of $126,027 (2016: $121,424) from REST for the services performed by two representatives of the Association, Mr Ian Blandthorn and Ms Sue-Anne Burnley. These director fees are included in Other Income in note 7. Mr Joe de Bruyn on being elected National President in October 2014 no longer receives a salary from the Association, therefore is entitled to personally receive director fees for services as a REST director from November 2014, these are disclosed in short-term employee benefits in key management personnel in Note 22.

The directors personally receive Superannuation Guarantee (SG) payments from REST for the above director fees, these are disclosed in post-employment benefits for key management personnel in Note 22.

NOTE 23: SUBSEQUENT EVENTS There has not arisen in the interval between the end of the financial year and the date of this report any item, transaction or event of a material and unusual nature likely, in the opinion of the officer holders of the Association, to affect significantly the operations of the Association, the results of those operations, or the state of affairs of the Association in future financial years.

NOTE 24: INFORMATION TO BE PROVIDED TO MEMBERS OR GENERAL MANAGER In accordance with the requirements of subsection 272(5) of the RO Act, the attention of members is drawn to the provisions of subsections (1), (2) and (3) of section 272, which states as follows: 1. A member of a reporting unit, or the Commissioner, may apply to the reporting unit for specified prescribed information in relation to the reporting unit to be made available to the person making the application.

2. The application must be in writing and must specify the period within which, and the manner in which, the information is to be made available. The period must not be less than 14 days after the application is given to the reporting unit.

3. A reporting unit must comply with an application made under subsection (1).

NOTE 25: ECONOMIC DEPENDENCY The Association is not reliant on the agreed financial support of another reporting unit to continue on a going concern basis (as noted in the Committee of Management Statement). The Association has not agreed to provide financial support to ensure another reporting unit, branch or affiliate has the ability to continue as a going concern.

INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF THE SHOP, DISTRIBUTIVE AND ALLIED EMPLOYEES’ ASSOCIATION OPINION We have audited the Financial Report of the Shop, Distributive and Allied Employees’ Association (the Association).

In our opinion, the accompanying Financial Report of the Association is in accordance with the Fair Work (Registered Organisations) Act 2009, including:  giving a true and fair view of the Association’s financial position as at 30 June 2017 and of its financial performance for the year ended on that date;  complying with Australian Accounting Standards; and  complying with other reporting requirements imposed by Part 3 of Chapter 8 of the Fair Work (Registered Organisations) Act 2009.

The Financial Report comprises:  Statement of financial position as at 30 June 2017  Statement of profit or loss and other comprehensive income, Statement of changes in equity and statement of cash flows for the year then ended  Notes including a summary of significant accounting policies  Other explanatory information including the Operating Report, the Committee of Management Statement and Certificate by National Secretary-Treasurer.

BASIS FOR OPINION We conducted our audit in accordance with Australian Auditing Standards and the Fair Work (Registered Organisations) Act 2009. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Our responsibilities under those standards are further described in the Auditor’s responsibilities for the audit of the Financial Report section of our report.

We are independent of the Association in accordance with the ethical requirements of the Accounting Professional and Ethical Standards Board’s APES 110 Code of Ethics for Professional Accountants (the Code) that are relevant to our audit of the Financial Report in Australia. We have fulfilled our other ethical responsibilities in accordance with the Code.

RESTRICTION ON USE The Financial Report has been prepared to assist the members of the Association in complying with the financial reporting requirements of the Fair Work (Registered Organisations) Act 2009.

As a result, the Financial Report and this Auditor’s Report may not be suitable for another purpose. Our opinion is not modified in respect of this matter. Our report is intended solely for the members of the Association and should not be used by parties other than the members of the Association. We disclaim any assumption of responsibility for any reliance on this report, or on the Financial Report to which it relates, to any person other than the members of the Association or for any other purpose than that for which it was prepared.

OTHER INFORMATION Other Information is financial and non-financial information in Shop, Distributive and Allied Employees’ Association’s annual reporting which is provided in addition to the Financial Report and the Auditor’s Report. The National Executive is responsible for the Other Information.

The Other Information we obtained prior to the date of this Auditor’s Report was the Operating Report, the Committee of Management Statement and Certificate by National Secretary-Treasurer.

Our opinion on the Financial Report does not cover the Other Information and, accordingly, we do not express any form of assurance conclusion thereon.

In connection with our audit of the Financial Report, our responsibility is to read the Other Information. In doing so, we consider whether the Other Information is materially inconsistent with the Financial Report or our knowledge obtained in the audit, or otherwise appears to be materially misstated.

We are required to report if we conclude that there is a material misstatement of this Other Information, and based on the work we have performed on the Other Information that we obtained prior to the date of this Auditor’s Report we have nothing to report.

RESPONSIBILITIES OF NATIONAL EXECUTIVE FOR THE FINANCIAL REPORT The National Executive is responsible for:  preparing the Financial Report that gives a true and fair view in accordance with Australian Accounting Standards and the Fair Work (Registered Organisations) Act 2009;  implementing necessary internal control to enable the preparation of a Financial Report that gives a true and fair view and is free from material misstatement, whether due to fraud or error; and  assessing the Association’s ability to continue as a going concern. This includes disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless they either intend to liquidate the Association or to cease operations, or have no realistic alternative but to do so.

Continued on next page

SDA 2017 FINANCIAL REPORTS  PAGE 31  SDA NEWS, SPRING 2017

AUDITOR’S RESPONSIBILITIES FOR THE AUDIT OF THE FINANCIAL REPORT Our objective is:  to obtain reasonable assurance about whether the Financial Report as a whole is free from material misstatement, whether due to fraud or error;  to issue an Auditor’s Report that includes our opinion; and  to conclude on the appropriateness of the National Executive’s use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainly exists related to events or conditions that may cast significant doubt on the Association’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the financial report or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the Association to cease to continue as a going concern.

Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with Australian Auditing Standards and the Fair Work (Registered Organisations) Act 2009 will always detect a material misstatement when it exists.

Misstatements can arise from fraud or error. They are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of this Financial Report.

A further description of our responsibilities for the audit of the Financial Report is located at the Auditing and Assurance Standards Board website at: http://www.auasb.gov.au/auditors_files/ar3.pdf. This description forms part of our Auditor’s Report.

GOING CONCERN I declare that, as part of the audit of the financial report for the financial year ended 30 June 2017, the National Executive’s use of going concern basis of accounting in the preparation of the Shop, Distributive and Allied Employees’ Association’s financial statements is appropriate.

KPMG Antoni Cinanni Partner Member of Institute of Charted Accountants #46581, dated 21 May 2002 Registered Company Auditor - #394346, dated 1 February 2011 Certificate of Public Practice with ICAA, dated 25 August 2010 Registered Auditor – Fair Work (Registered Organisations) Act 2009, #AA2017/167 15 August 2017

LEAD AUDITOR’S INDEPENDENCE DECLARATION TO THE MEMBERS OF THE SHOP, DISTRIBUTIVE AND ALLIED EMPLOYEES’ ASSOCIATION

I declare that, to the best of my knowledge and belief, in relation to the audit of Shop, Distributive and Allied Employee’s Association for the financial year ended 30 June 2017 there have been: no contraventions of any applicable code of professional conduct in relation to the audit.

KPMG Antoni Cinanni Partner 15 August 2017 KPMG, an Australian partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity.

Liability limited by a scheme approved under Professional Standards Legislation.

SHOP, DISTRIBUTIVE AND ALLIED EMPLOYEES’ ASSOCIATION, NSW BRANCH AND ITS CONTROLLED ENTITY FINANCIAL REPORT FOR THE YEAR ENDED 30 JUNE 2017 INDEPENDENT AUDITORS’ REPORT TO THE MEMBERS OF SHOP, DISTRIBUTIVE AND ALLIED EMPLOYEES’ ASSOCIATION NSW BRANCH Opinion I have audited the financial report of Shop, Distributive and Allied Employees’ Association NSW Branch and its controlled entity (the Reporting Unit), which comprises the statement of financial position as at 30 June 2017 the statement of comprehensive income, statement of changes in equity and statement of cash flows for the year ended 30 June 2017 notes to the financial statements, including a summary of significant accounting policies; and the Committee of Management Statement.

In my opinion, the accompanying financial report presents fairly, in all material aspects, the financial position of Shop, Distributive and Allied Employees’ Association NSW Branch and its controlled entity as at 30 June 2017 and its financial performance and its cash flows for the year ended on that date in accordance with: a) the Australian Accounting Standards; and b) any other requirements imposed by the Reporting Guidelines or Part 3 of Chapter 8 of the Fair Work (Registered Organisations) Act 2009 (the RO Act).

I declare that management’s use of the going concern basis in the preparation of the financial statements of the Reporting Unit is appropriate.

Basis for Opinion I conducted my audit in accordance with Australian Auditing Standards. My responsibilities under those standards are further described in the Auditor’s Responsibilities for the Audit of the Financial Report section of my report. I am independent of the Reporting Unit in accordance with the ethical requirements of the Accounting Professional and Ethical Standards Board’s APES 110 Code of Ethics for Professional Accountants (the Code) that are relevant to my audit of the financial report in Australia. I have also fulfilled my other ethical responsibilities in accordance with the Code.

I believe that the audit evidence I have obtained is sufficient and appropriate to provide a basis for my opinion.

Information Other than the Financial Report and Auditor’s Report Thereon The Committee of Management is responsible for the other information. The other information obtained at the date of this auditor’s report is in the Operating Report accompanying the financial report.

My opinion on the financial report does not cover the other information and accordingly I do not express any form of assurance conclusion thereon.

In connection with my audit of the financial report, my responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial report or my knowledge obtained in the audit or otherwise appears to be materially misstated.

If, based on the work I have performed, I conclude that there is a material misstatement of this other information, I am required to report that fact. I have nothing to report in this regard.

Responsibilities of Committee of Management for the Financial Report The Committee of Management of the Reporting Unit is responsible for the preparation of the financial report that gives a true and fair view in accordance with Australian Accounting Standards and the RO Act, and for such internal control as the Committee of Management determine is necessary to enable the preparation of the financial report that gives a true and fair view and is free from material misstatement, whether due to fraud or error.

In preparing the financial report, the Committee of Management is responsible for assessing the Reporting Unit’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the Committee of Management either intend to liquidate the Reporting Unit or to cease operations, or have no realistic alternative but to do so.

Auditor’s Responsibilities for the Audit of the Financial Report My objective is to obtain reasonable assurance about whether the financial report as a whole is free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes my opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with Australian Auditing Standards will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of the financial report.

As part of an audit in accordance with the Australian Auditing Standards, I exercise professional judgement and maintain professional scepticism throughout the audit. I also: Identify and assess the risks of material misstatement of the financial report, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for my opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.  Obtain an understanding of internal control relevant to the audit 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 Reporting Unit’s internal control.  Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the Committee of Management.  Conclude on the appropriateness of the Committee of Management’s use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Reporting Unit’s ability to continue as a going concern. If I conclude that a material uncertainty exists, I am required to draw attention in my auditor’s report to the related disclosures in the financial report or, if such disclosures are inadequate, to modify my opinion. My conclusions are based on the audit evidence obtained up to the date of my auditor’s report. However, future events or conditions may cause the Reporting Unit to cease to continue as a going concern.  Evaluate the overall presentation, structure and content of the financial report, including the disclosures, and whether the financial report represents the underlying transactions and events in a manner that achieves fair presentation.  Obtain sufficient appropriate audit evidence regarding the financial information of the entities or business activities within the Reporting Unit to express an opinion on the financial report. I am responsible for the direction, supervision and performance of the Reporting Unit audit. I remain solely responsible for my audit opinion.

I communicate with the Committee of Management regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that I identify during my audit.

Recovery of Wages The Reporting Unit does not engage in the recovery of wages activity.

Joseph Paul Grech Grech Smith Bridle Partner Chartered Accountants Registration Number: AA2017/26 (as registered by the RO Commissioner under the RO Act) Holder of Current Practicing Certificate and Member of the Chartered Accountants Australia and New Zealand Number 24310 Dated at Sydney this 15th day of August 2017 DECLARATION I, Joseph Paul Grech, being the auditor of the Shop, Distributive and Allied Employees’ Association NSW Branch and its controlled entity declare that: a) I am an approved auditor, and b) I am a person who is a member of Chartered Accountants Australia and New Zealand; and c) I hold a current Public Practice Certificate.

Joseph Paul Grech Grech Smith Bridle Partner Chartered Accountants Registration Number: AA2017/26 (as registered by the RO Commissioner under the RO Act) Holder of Current Practicing Certificate and Member of the Chartered Accountants Australia and New Zealand Number 24310 Dated at Sydney this 15th day of August 2017 

AUDITOR’S INDEPENDENCE DECLARATION FOR THE YEAR ENDED 30 JUNE 2017

I declare that, to the best of my knowledge and belief, during the year ended 30 June 2017 there has been: (i) no contraventions of the auditor independence requirements in relation to the audit; and (ii) no contravention of any applicable code of professional conduct in relation to the audit.

Joseph Paul Grech Grech Smith Bridle Partner Chartered Accountants Registration Number: AA2017/26 (as registered by the RO Commissioner under the RO Act) Holder of Current Practicing Certificate and Member of the Chartered Accountants Australia and New Zealand Number 24310 Dated at Sydney this 15th day of August 2017

OPERATING REPORT FOR THE YEAR ENDED 30 JUNE 2017

The Committee of Management presents its operating report on the reporting unit for the financial year ended 30 June 2017.

Consolidation These reports represent the consolidation of i) Shop, Distributive and Allied Employees’ Association NSW Branch ii) Shop, Distributive and Allied Employees’ Association NSW Deductions Account Office The Shop, Distributive and Allied Employees’ Association NSW Deductions Account Office has been operated and continues to operate in trust for the Shop, Distributive and Allied Employees’ NSW Branch.

In previous years each of these entities have lodged separate financial reports with the Registered Organisations Commission. The decision was made this year to present a consolidated financial report.

Review of principal activities, the results of those activities and any significant changes in the nature of those activities during the year The principal activities of the association are preserving and enhancing the wages and working conditions of its members, and the promotion of the interests and rights of workers. In addition to industrial representation, members are also provided with a range of services and benefits.

New enterprise agreements were negotiated with a wide range of employers during the year. These agreements all resulted in improved wages and working conditions for the employees covered by them.

Significant changes in financial affairs There were no significant changes in the nature of the activities and financial affairs in the Association during the financial year.

Rights of members to resign Persons eligible to do so under the rules of the Association were actively encouraged to join the Association. Pursuant to s174 of the Fair Work (Registered Organisations) Act 2009 (RO Act), members could resign from the Association by written notice to the appropriate Branch of the Association.

Officers & employees who are superannuation fund trustees or director of a company that is a superannuation fund trustee One representative of the Association holds a position as the Alternative Director of the Retail Employees’ Superannuation Trust (“REST”). Gerard Dwyer and Aliscia Di Mauro act as the alternative director for Joe De Bruyn and Geoff Williams.

Directors Alternates Mr Joe De Bruyn Mr Gerard Dwyer Mr Geoff Williams Ms Aliscia Di Mauro Mr P Griffin is also a director of Tasplan Super.

Number of Members Membership as at 30 June 2017 was 58,593 (2016: 58,882).

Number of employees At 30 June 2017, there were 63 persons (full time equivalent), employed by the NSW Deductions Account Office of the Association and its controlled entity.

Affiliations & Directorships Detailed below are the affiliations of the NSW Branch of the Association: — Australian Labor Party, NSW Branch — Australian Labor Party, ACT Branch — Unions NSW — South Coast Labor Council — Unions ACT The NSW Branch Secretary-Treasurer is on the Administrative Committee of the Australian Labor Party NSW Branch.

The NSW Branch Secretary-Treasurer of the Association is an Executive Member of Unions NSW A representative of the NSW Branch of the Association is a member of the Service Skills NSW Wholesale, Retail and Personal Services Committee.

Continued on next page

SDA 2017 FINANCIAL REPORTS  PAGE 32  SDA NEWS, SPRING 2017

Continued from previous page Names of Committee of Management members and period positions held during the financial year The members of the National Executive of the Association at any time during or since the end of the financial year were: Name Experience Position C. Cassell Member since 4 February 2003 Branch President M. Dumycz Member since 28 September 2010 Branch Vice President (Branch membership) B. Smith Member since 10 May 2005 Branch Secretary – Treasurer R. Tonkli Member since 23 September 2014 Branch Assistant Secretary – Treasurer M. Hagley Member since 9 February 1999 Branch Trustee H. Thomas Member since 4 February 2003 Branch Trustee M. Doherty Member since 12 December 2014 Branch Councillor (Retail membership) S. Sammak Member since 18 February 2014 Branch Councillor (Drug and Allied membership) D. Robins Member since 28 September 2010 Branch Councillor (Other Industries and Vocational Grouping membership) S. Barros Member since 16 February 2010 Branch Councillor (Branch membership) P. Avellino Member since 28 September 2010 Branch Councillor (Branch membership) N. Rizk Member since 28 September 2010 Branch Councillor (Branch membership) A. Apps Member since 23 September 2014 Branch Councillor (Branch membership) J. Slender Member since 23 September 2014 Branch Councillor (Branch membership) N. Atkins Member since 12 December 2014 Branch Councillor (Branch membership) M. Hackett Member since 12 December 2014 Branch Councillor (Branch membership) A. Manos Member since 12 December 2014 Branch Councillor (Branch membership) C. Williams Member since 12 December 2014 Branch Councillor (Branch membership) The Association maintained its rules and reported according to statutory requirements.

Bernie Smith Robert Tonkli Committee of Management Committee of Management Dated at Sydney this 15th day of August 2017

COMMITTEE OF MANAGEMENT STATEMENT FOR THE YEAR ENDED 30 JUNE 2017

On 15 August 2017 the Committee of Management of Shop, Distributive and Allied Employees’ Association NSW Branch passed the following resolution in relation to the general purpose financial report (GPFR) for the year ended 30 June 2017: The Committee of Management declares that in its opinion: a) The financial statements and notes comply with the Australian Accounting Standards; b) The financial statements and notes comply with any other requirements imposed by the Reporting Guidelines or Part 3 of Chapter 8 of the Fair Work (Registered Organisations) Act 2009 (the RO Act); c) The financial statements and notes give a true and fair view of the financial performance, financial position and cash flows of the reporting unit for the financial year to which they relate; d) There are reasonable grounds to believe the reporting unit will be able to pay its debts as and when they become due and payable; and e) During the financial year to which the GPFR relates and since the end of that year: i) Meetings of the Committee of Management were held in accordance with the rules of the organisation including the rules of a branch concerned; and ii) The financial affairs of the reporting unit have been managed in accordance with the rules of the organisation including the rules of a branch concerned; and iii) The financial records of the reporting unit have been kept and maintained in accordance with the RO Act; and iv) Where the organisation consists of two or more reporting units, the financial records of the reporting unit have been kept, as far as practicable, in a consistent manner with each of the other reporting units of the organisation; and v) Where information has been sought in any request by a member of the reporting unit or Commissioner duly made under section 272 of the RO Act has been provided to the member or Commissioner; and vi) Where any orders for inspection of financial records have been made by the Registered Organisations Commission under section 273 of the RO Act, there has been compliance. f) No revenue has been derived from undertaking recovery of wages activity during the reporting period.

This declaration is made in accordance with a resolution of the Committee of Management.

Name and title of designated officer: Bernie Smith, Secretary/Treasurer Dated: 15 August 2017

STATEMENT OF COMPREHENSIVE INCOME FOR THE YEAR ENDED 30 JUNE 2017 Notes

Consolidated 2017 $ 2016 $

Revenue Membership subscription 17,100,295 Capitation fees 4A Levies 4B Interest 4C 254,453 Rental revenue 4D 1,162,614 Other revenue 24,506 Total revenue 18,541,868 Other Income Grants and/or donations 4E Share of net profit from associate 7E Net gains from sale of assets 4F 23,047 23,047 Total other income 18,564,915 Total income Expenses Employee expenses 5A 7,558,569 Capitation fees 5B Affiliation fees 5C 2,115,111 Administration expenses 5D 7,503,252 Grants or donations 5E 23,117 Depreciation and amortisation 5F 810,525 Legal costs 5G 154,643 Audit fees 15 51,500 Other expenses 5H 18,216,717 Total expenses Profit (loss) for the year 348,198 Other comprehensive income Items that will not be subsequently reclassified to profit or loss Gain on revaluation of land & buildings 11,751,171 Total comprehensive income for the year 12,099,369 The above statement should be read in conjunction with the notes.

Parent

2017 $

2016 $

17,862,678 239,403 1,105,772 22,197 19,230,050

422,150 10 3,822,787 4,244,947

404,552 7 4,305,344 4,709,903

62,098 62,098 19,292,148

4,244,947

4,709,903

7,500,304 2,059,615 8,057,957 110,508 816,790 206,204 50,500 18,801,878 490,270

2,115,111 2,099,533 8,407 4,223,051 21,896

2,059,615 2,517,804 94,901 4,672,320 37,583

-

-

-

490,270

21,896

37,583

STATEMENT OF FINANCIAL POSITION AS AT 30 JUNE 2017

ASSETS Current Assets Cash and cash equivalents Trade and other receivables Other current assets Total current assets Non-Current Assets Land and buildings Plant and equipment Investment Property Other investments Other non-current assets Total non-current assets Total assets

6A 6B 6C

11,597,587 1,179,532 1,298,510 14,075,629

10,362,039 1,216,775 1,272,715 12,851,529

33,561 58,520 1,226,979 1,319,060

41,124 50,313 1,175,856 1,267,293

7A 7B 7C 7D 7E

9,416,618 998,398 29,547,625 88,707 40,051,348 54,126,977

9,722,805 1,272,083 18,123,673 100,525 29,219,086 42,070,615

1,139,060

1,267,293

LIABILITIES Current Liabilities Trade payables 8A 553,248 Other payables 8B (11,967) Employee provisions 9A 2,431,160 2,972,441 Total current liabilities Non-Current Liabilities Employee provisions 9A 19,203 Other non-current liabilities 10A 19,203 Total non-current liabilities Total liabilities 2,991,644 51,135,333 Net assets EQUITY General funds 11A 17,434,594 Retained earnings 33,700,739 Total equity 51,135,333 The above statement should be read in conjunction with the notes.

576,385 (17,554) 2,445,838 3,004,669

51,689 (2,231) 49,458

21,546 (1,959) 19,587

29,982 29,982 3,034,651 39,035,964

49,458 1,269,602

19,587 1,247,706

5,683,423 33,352,541 39,035,964

1,269,602 1,269,602

1,247,706 1,247,706

STATEMENT OF CHANGES IN EQUITY FOR THE YEAR ENDED 30 JUNE 2017

Consolidated Notes General funds $ 5,683,423 Balance as at 1 July 2015 Adjustment for errors Adjustment for changes in accounting policies Profit for the year Other comprehensive income for the year Transfer to/from Asset Revaluation Reserve 11A Transfer from retained earnings Closing balance as at 30 June 2016 5,683,423 Adjustment for errors Adjustment for changes in accounting policies Profit for the year Other comprehensive income for the year Transfer to/from Asset Revaluation Reserve 11A 11,751,171 Transfer from retained earnings Closing balance as at 30 June 2017 17,434,594 The above statement should be read in conjunction with the notes.

Parent Notes General funds $ Balance as at 1 July 2015 Adjustment for errors Adjustment for changes in accounting policies Profit for the year Other comprehensive income for the year Transfer to/from Asset Revaluation Reserve 11A Transfer from retained earnings Closing balance as at 30 June 2016 Adjustment for errors Adjustment for changes in accounting policies Profit for the year Other comprehensive income for the year Transfer to/from Asset Revaluation Reserve 11A Transfer from retained earnings Closing balance as at 30 June 2017 The above statement should be read in conjunction with the notes.

Retained earnings $ 32,862,271 490,270 33,352,541 348,198 33,700,739

Total equity $ 38,545,964 490,270 39,035,964 348,198 11,751,171 51,135,333

Retained earnings $ 1,210,123 37,583 1,247,706 21,896 1,269,602

Total equity $ 1,210,123 37,583 1,247,706 21,896 1,269,602

CASH FLOWS STATEMENT FOR THE YEAR ENDED 30 JUNE 2017

Notes Consolidated 2017 $ 2016 $ OPERATING ACTIVITIES Cash received Receipts from other reporting units/controlled entity(s) 12B 8,973 50,119 Interest 239,403 254,455 18,528,300 Other 18,677,139 Cash used Employees (7,291,086) (7,584,025) Suppliers (8,733,758) (8,569,909) Payment to other reporting units/controlled entity(s) 12B (1,791,711) (1,711,844) 960,121 12A 1,115,935 Net cash from (used by) operating activities INVESTING ACTIVITIES Cash received Proceeds from sale of plant and equipment 76,282 59,413 Proceeds from sale of land and buildings 457,922 Other 457,922 Cash used Purchase of plant and equipment (252,174) (323,347) Purchase of land and buildings Other (74,375) 282,030 Net cash from (used by) investing activities 119,613 FINANCING ACTIVITIES Cash received Contributed equity Other Cash used Repayment of borrowings Other Net cash from (used by) financing activities 1,242,151 Net increase (decrease) in cash held 1,235,548 Cash & cash equivalents at the beginning of the reporting period 9,119,888 10,362,039 Cash & cash equivalents at the end of the reporting 6A 10,362,039 period 11,597,587 The above statement should be read in conjunction with the notes.

Parent

2017 $

2016 $

3,820,133 10 782,053

4,304,439 7 394,447

(2,903,597)

(2,937,984)

(1,706,162) (7,563)

(1,726,510) 34,399

-

-

-

-

-

-

(7,563)

34,399

41,124

6,725

33,561

41,124

RECOVERY OF WAGES ACTIVITY FOR THE YEAR ENDED 30 JUNE 2017

Cash assets in respect of recovered money at beginning of year Receipts Amounts recovered from employers in respect of wages etc.

Interest received on recovered money Total receipts Payments Deductions of amounts due in respect of membership for: 12 months or less Greater than 12 months

-

-

-

-

-

-

-

-

-

-

-

-

Table continued on next page

SDA 2017 FINANCIAL REPORTS  PAGE 33  SDA NEWS, SPRING 2017

Table continued from previous page Deductions of donations or other contributions to accounts or funds of: The reporting unit: name of account name of fund Name of other reporting unit of the organisation: name of account name of fund Name of other entity: name of account name of fund Deductions of fees or reimbursement of expenses Payments to workers in respect of recovered money Total payments Cash assets in respect of recovered money at end of year Number of workers to which the monies recovered relates Aggregate payables to workers attributable to recovered monies but not yet distributed Payable balance Number of workers the payable relates to Fund or account operated for recovery of wages -

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2017

-

-

-

-

-

-

-

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NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES 1.1 BASIS OF PREPARATION OF THE FINANCIAL STATEMENTS The financial statements are general purpose financial statements and have been prepared in accordance with Australian Accounting Standards and Interpretations issued by the Australian Accounting Standards Board (AASB) that apply for the reporting period and the Fair Work (Registered Organisation) Act 2009. For the purpose of preparing the general purpose financial statements, the Shop, Distributive and Allied Employees’ Association NSW Branch is a not-for-profit entity.

The financial statements have been prepared on an accrual basis and in accordance with the historical cost, except for certain assets and liabilities at measured at fair value, as explained in the accounting policies below. Historical cost is generally based on the fair values of the consideration given in exchange for assets. Except where stated, no allowance is made for the effect of changing prices on the results or the financial position. The financial statements are presented in Australian dollars.

1.2 COMPARATIVE AMOUNTS When required by Accounting Standards, comparative figures have been adjusted to conform to changes in presentation for the current financial year.

1.3 SIGNIFICANT ACCOUNTING JUDGEMENTS AND ESTIMATES The Committee of Management 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 Association.

It has not been necessary for the Committee of Management to make any key estimates or judgements in the report.

1.4 NEW AUSTRALIAN ACCOUNTING STANDARDS Adoption of New Australian Accounting Standard Requirements No accounting standard has been adopted earlier than the application date stated in the standard.

The accounting policies adopted are consistent with those of the previous financial year.

1.5 BASIS OF CONSOLIDATION The consolidated financial statements comprise the financial statements of the Shop, Distributive and Allied Employees’ Association NSW Branch and entities controlled by the Shop, Distributive and Allied Employees’ Association NSW Branch (its subsidiaries). Control is achieved where the Shop, Distributive and Allied Employees’ Association NSW Branch is exposed, or has rights, to variable returns from its involvement with the investee and has the ability to affect those returns through its power over the Shop, Distributive and Allied Employees’ Association NSW Branch.

Specifically, the Shop, Distributive and Allied Employees’ Association NSW Branch controls an investee if and only if the Shop, Distributive and Allied Employees’ Association NSW Branch has:  Power over the investee (i.e. existing rights that give it the current ability to direct the relevant activities of the investee)  Exposure, or rights, to variable returns from its involvement with the investee  The ability to use its power over the investee to affect its returns When the Shop, Distributive and Allied Employees’ Association NSW Branch has less than a majority of the voting or similar rights of an investee, the Shop, Distributive and Allied Employees’ Association NSW Branch considers all relevant facts and circumstances in assessing whether it has power over an investee, including:  Relevant activities of the investee and who has control over them  Existing or future administrative or statutory arrangements that may give rise to rights/control (or change the previous control assessment)  Whether rights are substantive or protective in nature and whether rights presently exercisable or will be exercisable when decisions about relevant activities are being made  Exposure or rights to financial and non-financial returns (direct or indirect) and the ability to influence those returns  Whether the investor is exercising its decision-making abilities as a principal or agent  Rights arising from other contractual arrangements The Shop, Distributive and Allied Employees’ Association NSW Branch re-assesses whether or not it controls an investee if facts and circumstances indicate that there are changes to one or more of the three elements of control. Consolidation of a subsidiary begins when the Shop, Distributive and Allied Employees’ Association NSW Branch obtains control over the subsidiary and ceases when the Shop, Distributive and Allied Employees’ Association NSW Branch loses control of the subsidiary.

Assets, liabilities, income and expenses of a subsidiary acquired or disposed of during the year are included in the consolidated financial statements from the date the Shop, Distributive and Allied Employees’ Association NSW Branch gains control until the date the Shop, Distributive and Allied Employees’ Association NSW Branch ceases to control the subsidiary.

Income and expense of subsidiaries acquired or disposed of during the year are included in the consolidated statement of comprehensive income from the effective date of acquisition and up to the effective date of disposal, as appropriate.

Total comprehensive income of subsidiaries is attributed to the owners of the Shop, Distributive and Allied Employees’ Association NSW Branch and to the non-controlling interests even if this results in the non-controlling interests having a deficit balance.

Where necessary, adjustments are made to the financial statements of subsidiaries to bring their accounting policies into line with those used by the Shop, Distributive and Allied Employees’ Association NSW Branch.

All intra-group transactions, balances, income and expenses are eliminated in full on consolidation.

Changes in the Shop, Distributive and Allied Employees’ Association NSW Branch ownership interests in subsidiaries that do not result in the Shop, Distributive and Allied Employees’ Association NSW Branch losing control are accounted for as equity transactions. The carrying amounts of the Shop, Distributive and Allied Employees’ Association NSW Branch interests and the non-controlling interests are adjusted to reflect the changes in their relative interests in the subsidiaries. Any difference between the amount by which the non-controlling interests are adjusted and the fair value of the consideration paid or received is recognised directly in equity and attributed to owners of the Shop, Distributive and Allied Employees’ Association NSW Branch.

When the Shop, Distributive and Allied Employees’ Association NSW Branch loses control of a subsidiary, a gain or loss is recognised in profit or loss and is calculated as the difference between (i) the aggregate of the fair value of the consideration received and the fair value of any retained interest and (ii) the previous carrying amount of the assets (including goodwill), and liabilities of the subsidiary and any non-controlling interests. When assets of the subsidiary are carried at revalued amounts or fair values and the related cumulative gain or loss has been recognised in other comprehensive income and accumulated in equity, the amounts previously recognised in other comprehensive income and accumulated in equity are accounted for as if the Shop, Distributive and Allied Employees’ Association NSW Branch had directly disposed of the relevant assets (i.e. reclassified to profit or loss or transferred directly to retained earnings as specified by applicable Standards). The fair value of any investment retained in the former subsidiary at the date when control is lost is regarded as the fair value on initial recognition for subsequent accounting under AASB 139 ‘Financial Instruments: Recognition and Measurement’ or, when applicable, the cost on initial recognition of an investment in an associate or jointly controlled entity.

1.6 INVESTMENT IN ASSOCIATES AND JOINT ARRANGEMENT An associate is an entity over which the Shop, Distributive and Allied Employees’ Association NSW Branch has significant influence and that is neither a subsidiary nor an interest in a joint venture. Significant influence is the power to participate in the financial and operating policy decisions of the investee but is not control or joint control over those policies.

A joint venture is a type of joint arrangement whereby the parties that have joint control of the arrangement have rights to the net assets of the joint venture. Joint control is the contractually agreed sharing of control of an arrangement, which exists only when decisions about the relevant activities require unanimous consent of the parties sharing control.

A joint operation is a type of joint arrangement whereby the parties that have joint control of the arrangement have rights to the individual assets and obligations for the liabilities of the joint operation.

The Shop, Distributive and Allied Employees’ Association NSW Branch has not made any investment in an associate or entered into any joint arrangements.

1.7 BUSINESS COMBINATIONS There have been no business combinations during the year.

1.8 ACQUISITION OF ASSETS AND OR LIABILITIES THAT DO NOT CONSTITUTE A BUSINESS COMBINATION The net book value of assets and or liabilities transferred to Shop, Distributive and Allied Employees’ Association NSW Branch for no consideration is used to account for an amalgamation under Part 2 of Chapter 3 of the Fair Work (Registered Organisations) Act 2009/a restructure of the branches of the Shop, Distributive and Allied Employees’ Association NSW Branch/a determination by the Commissioner under subsections 245(1) of the Fair Work (Registered Organisations) Act 2009/a revocation by the Commissioner under subsection 249(1) of the Fair Work (Registered Organisations) Act 2009.

The assets and liabilities are recognised as at the date of transfer.

1.9 REVENUE Revenue is measured at the fair value of the consideration received or receivable.

Revenue from subscriptions is accounted for on an accrual basis and is recorded as revenue in the year to which it relates.

Revenue from the sale of goods is recognised when, the risks and rewards of ownership have been transferred to the buyer, the entity retains no managerial involvement or effective control over the goods, the revenue and transaction costs incurred can be reliably measured, and it is probable that the economic benefits associated with the transaction will flow to the entity.

Donation income is recognised when it is received.

Receivables for goods and services, which have 30 day terms, are recognised at the nominal amounts due less any impairment allowance account. Collectability of debts is reviewed at end of the reporting period. Allowances are made when collectability of the debt is no longer probable.

Interest revenue is recognised on an accrual basis using the effective interest method.

Rental revenue from operating leases is recognised on a straight-line basis over the term of the relevant lease.

1.10 GOVERNMENT GRANTS Government grants are not recognised until there is reasonable assurance that the Shop, Distributive and Allied Employees’ Association NSW Branch will comply with the conditions attaching to them and that the grants will be received.

Government grants are recognised in profit or loss on a systematic basis over the periods in which the Shop, Distributive and Allied Employees’ Association NSW Branch recognises as expenses the related costs for which the grants are intended to compensate.

Specifically, government grants whose primary condition is that the Shop, Distributive and Allied Employees’ Association NSW Branch should purchase, construct otherwise acquire non-current assets are recognised as deferred revenue in the statement of financial position and transferred to profit or loss on a systematic and rational basis over the useful lives of the related assets.

Government grants that are receivable as compensation for expenses or losses already incurred or for the purpose of giving immediate financial support to the Shop, Distributive and Allied Employees’ Association NSW Branch with no future related costs are recognised in profit or loss in the period in which they become receivable.

1.11 GAINS Sale of assets Gains and losses from disposal of assets are recognised when control of the asset has passed to the buyer.

1.12 CAPITATION FEES AND LEVIES Capitation fees and levies are to be recognised on an accrual basis and record as a revenue and/or expense in the year to which it relates.

1.13 EMPLOYEE BENEFITS A liability is recognised for benefits accruing to employees in respect of wages and salaries, annual leave, long service leave and termination benefits when it is probable that settlement will be required and they are capable of being measured reliably.

Liabilities for short-term employee benefits (as defined in AASB 119 Employee Benefits) and termination benefits which are expected to be settled within twelve months of the end of reporting period are measured at their nominal amounts.

The nominal amount is calculated with regard to the rates expected to be paid on settlement of the liability.

Other long-term employee benefits which are expected to be settled beyond twelve months are measured as the present value of the estimated future cash outflows to be made by the reporting unit in respect of services provided by employees up to reporting date.

Payments to defined contribution retirement benefit plans are recognised as an expense when employees have rendered service entitling them to the contributions.

Provision is made for separation and redundancy benefit payments. Reporting Unit recognises a provision for termination as part of a broader restructuring when it has developed a detailed formal plan for the terminations and has informed those employees affected that it will carry out the terminations. A provision for voluntary termination is recognised when the employee has accepted the offer of termination.

1.14 LEASES Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessee. All other leases are classified as operating leases.

Where an asset is acquired by means of a finance lease, the asset is capitalised at either the fair value of the lease property or, if lower, the present value of minimum lease payments at the inception of the contract and a liability is recognised at the same time and for the same amount.

The discount rate used is the interest rate implicit in the lease. Leased assets are amortised over the period of the lease.

Lease payments are allocated between the principal component and the interest expense.

Operating lease payments are expensed on a straight-line basis which is representative of the pattern of benefits derived from the leased assets.

Rental revenue from operating leases is recognised on a straight-line basis over the term of the relevant lease. Initial direct costs incurred in negotiating and arranging an operating lease are added to the carrying amount of the leased asset and recognised on a straight-line basis over the lease term.

1.15 BORROWING COSTS All borrowing costs are recognised in profit and loss in the period in which they are incurred.

1.16 CASH Cash is recognised at its nominal amount. Cash and cash equivalents includes cash on hand, deposits held at call with bank, other short-term highly liquid investments with original maturity of 3 months or less that are readily convertible to known amounts of cash and subject to insignificant risk of changes in value and bank overdrafts. Bank overdrafts are shown within short-term borrowings in current liabilities on the statement of financial position.

1.17 FINANCIAL INSTRUMENTS Financial assets and financial liabilities are recognised when Shop, Distributive and Allied Employees’ Association NSW Branch becomes a party to the contractual provisions of the instrument.

Financial assets and financial liabilities are initially measured at fair value. Transaction costs that are directly attributable to the acquisition or issue of financial assets and financial liabilities (other than financial assets and financial liabilities at fair value through profit or loss) are added to or deducted from the fair value of the financial assets or financial liabilities, as appropriate, on initial recognition. Transaction costs directly attributable to the acquisition of financial assets or financial liabilities at fair value through profit or loss are recognised immediately in profit or loss.

1.18 FINANCIAL ASSETS Financial assets are classified into the following specified categories: financial assets at fair value through profit or loss, held-to-maturity investments, available-for-sale financial assets and loans and receivables. The classification depends on the nature and purpose of the financial assets and is determined at the time of initial recognition. All regular way purchases or sales of financial assets are recognised and derecognised upon trade date basis. Regular way purchases or sales are purchases or sales of financial assets that require delivery of assets within the time frame established by regulation or convention in the marketplace.

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Available-for-sale Listed shares and listed redeemable notes held by the reporting unit that are traded in an active market are classified as available-for-sale and are stated at fair value. The reporting unit also has investments in unlisted shares that are not traded in an active market but that are also classified as available-for-sale financial assets and stated at fair value. Gains and losses arising from changes in fair value are recognised in other comprehensive income and accumulated in the investments revaluation reserve, with the exception of impairment losses, interest calculated using the effective interest method, and foreign exchange gains and losses on monetary assets, which are recognised in profit or loss. Where the investment is disposed of or is determined to be impaired, the cumulative gain or loss previously accumulated in the investments revaluation reserve is reclassified to profit or loss.

Dividends on available-for-sale equity instruments are recognised in profit or loss when the reporting unit right to receive the dividends is established. The fair value of available-for-sale monetary assets denominated in a foreign currency is determined in that foreign currency and translated at the spot rate at the end of the reporting period. The foreign exchange gains and losses that are recognised in profit or loss are determined based on the amortised cost of the monetary asset. Other foreign exchange gains and losses are recognised in other comprehensive income.

Fair value through profit or loss Financial assets are classified as at fair value through profit or loss when the financial asset is either held for trading or it is designated as at fair value through profit or loss.

A financial asset is classified as held for trading if:  it has been acquired principally for the purpose of selling it in the near term; or  on initial recognition, it is part of a portfolio of identified financial instruments that the reporting unit manages together and has a recent actual pattern of short-term profit-taking; or  it is a derivative that is not designated and effective as a hedging instrument.

A financial asset other than a financial asset held for trading may be designated as at fair value through profit or loss upon initial recognition if:  such designation eliminates or significantly reduces a measurement or recognition inconsistency that would otherwise arise; or  the financial asset forms part of a group of financial assets or financial liabilities or both, which is managed and its performance is evaluated on a fair value basis, in accordance with the reporting unit’s documented risk management or investment strategy, and information about the grouping is provided internally on that basis; or  it forms part of a contract containing one or more embedded derivatives, and AASB 139 ‘Financial Instruments: Recognition and Measurement’ permits the entire combined contract (asset or liability) to be designated as at fair value through profit or loss.

Financial assets at fair value through profit or loss are stated at fair value, with any gains or losses arising on remeasurement recognised in profit or loss. The net gain or loss recognised in profit or loss incorporates any dividend or interest earned on the financial asset and is included in the ‘other gains and losses’ line item in the statement of comprehensive income.

Held-to-maturity investments Financial assets with fixed or determinable payments and fixed maturity dates that the reporting unit has the positive intent and ability to hold to maturity are classified as held-to-maturity investments. Held-to-maturity investments are measured at amortised cost using the effective interest method less any impairment.

Loan and receivables Trade receivables, loans and other receivables that have fixed or determinable payments that are not quoted in an active market are classified as ‘loans and receivables’. Loans and receivables are measured at amortised cost using the effective interest method less impairment. Interest is recognised by applying the effective interest rate, except for shortterm receivables when the recognition of interest would be immaterial.

Effective interest method The effective interest method is a method of calculating the amortised cost of a debt instrument and of allocating interest income over the relevant period. The effective interest rate is the rate that exactly discounts estimated future cash receipts through the expected life of the financial asset, or, when appropriate, a shorter period, to the net carrying amount on initial recognition.

Income is recognised on an effective interest rate basis except for debt instruments other than those financial assets that are recognised at fair value through profit or loss.

Impairment of financial assets Financial assets, other than those at fair value through profit or loss, are assessed for impairment at the end of each reporting period. Financial assets are considered to be impaired when there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows of the investment have been affected.

For certain categories of financial asset, such as trade receivables, assets that are assessed not to be impaired individually are, in addition, assessed for impairment on a collective basis. Objective evidence of impairment for a portfolio of receivables could include the reporting units past experience of collecting payments, an increase in the number of delayed payments in the portfolio past the average credit period of 60 days, as well as observable changes in national or local economic conditions that correlate with default on receivables.

For financial assets carried at amortised cost, the amount of the impairment loss recognised is the difference between the asset’s carrying amount and the present value of estimated future cash flows, discounted at the financial asset’s original effective interest rate.

For financial assets carried at cost, the amount of the impairment loss is measured as the difference between the asset’s carrying amount and the present value of the estimated future cash flows discounted at the current market rate of return for a similar financial asset. Such impairment loss will not be reversed in subsequent periods.

The carrying amount of the financial asset is reduced by the impairment loss directly for all financial assets with the exception of trade receivables, where the carrying amount is reduced through the use of an allowance account. When a trade receivable is considered uncollectible, it is written off against the allowance account. Subsequent recoveries of amounts previously written off are credited against the allowance account. Changes in the carrying amount of the allowance account are recognised in profit or loss.

When an available-for-sale financial asset is considered to be impaired, cumulative gains or losses previously recognised in other comprehensive income are reclassified to profit or loss in the period.

For financial assets measured at amortised cost, if, in a subsequent period, the amount of the impairment loss decreases and the decrease can be related objectively to an event occurring after the impairment was recognised, the previously recognised impairment loss is reversed through profit or loss to the extent that the carrying amount of the investment at the date the impairment is reversed does not exceed what the amortised cost would have been had the impairment not been recognised.

In respect of available-for-sale equity securities, impairment losses previously recognised in profit or loss are not reversed through profit or loss. Any increase in fair value subsequent to an impairment loss is recognised in other comprehensive income and accumulated under the heading of investments revaluation reserve. In respect of available-for-sale debt securities, impairment losses are subsequently reversed through profit or loss if an increase in the fair value of the investment can be objectively related to an event occurring after the recognition of the impairment loss.

Derecognition of financial assets The reporting unit derecognises a financial asset only when the contractual rights to the cash flows from the asset expire, or when it transfers the financial asset and substantially all the risks and rewards of ownership of the asset to another entity. The difference between the asset’s carrying amount and the sum of the consideration received and receivable and the cumulative gain or loss that had been recognised in other comprehensive income and accumulated in equity is recognised in profit or loss.

1.19 FINANCIAL LIABILITIES Financial liabilities are classified as either financial liabilities ‘at fair value through profit or loss’ or other financial liabilities.

Financial liabilities are recognised and derecognised upon ‘trade date’.

Fair value through profit or loss Financial liabilities are classified as at fair value through profit or loss when the financial liability is either held for trading or it is designated as at fair value through profit or loss.

A financial liability is classified as held for trading if:  it has been acquired principally for the purpose of repurchasing it in the near term; or  on initial recognition, it is part of a portfolio of identified financial instruments that the reporting unit manages together and has a recent actual pattern of short-term profit-taking; or  it is a derivative that is not designated and effective as a hedging instrument.

A financial liability other than a financial liability held for trading may be designated as at fair value through profit or loss upon initial recognition if:  such designation eliminates or significantly reduces a measurement or recognition inconsistency that would otherwise arise; or  the financial liability forms part of a group of financial assets or financial liabilities or both, which is managed and its performance is evaluated on a fair value basis, in accordance with the reporting units documented risk management or investment strategy, and information about the grouping is provided internally on that basis; or

it forms part of a contract containing one or more embedded derivatives, and AASB 139 ‘Financial Instruments: Recognition and Measurement’ permits the entire combined contract (asset or liability) to be designated as at fair value through profit or loss.

Financial liabilities at fair value through profit or loss are stated at fair value, with any gains or losses arising on remeasurement recognised in profit or loss. The net gain or loss recognised in profit or loss incorporates any interest paid on the financial liability and is included in the ‘other gains and losses’ line item in the statement of comprehensive income.

Other financial liabilities Other financial liabilities, including borrowings and trade and other payables, are initially measured at fair value, net of transaction costs.

Other financial liabilities are subsequently measured at amortised cost using the effective interest method, with interest expense recognised on an effective yield basis.

Derecognition of financial liabilities The reporting unit’s derecognises financial liabilities when, and only when, the reporting unit’s obligations are discharged, cancelled or they expire. The difference between the carrying amounts of the financial liability derecognised and the consideration paid and payable is recognised in profit or loss.

1.20 CONTINGENT LIABILITIES AND CONTINGENT ASSETS Contingent liabilities and contingent assets are not recognised in the Statement of Financial Position but are reported in the relevant notes. They may arise from uncertainty as to the existence of a liability or asset or represent an existing liability or asset in respect of which the amount cannot be reliably measured. Contingent assets are disclosed when settlement is probable but not virtually certain, and contingent liabilities are disclosed when settlement is greater than remote.

1.21 LAND, BUILDINGS, PLANT AND EQUIPMENT Asset recognition threshold Purchases of land, buildings, plant and equipment are recognised initially at cost in the Statement of Financial Position.

The initial cost of an asset includes an estimate of the cost of dismantling and removing the item and restoring the site on which it is located.

Revaluations—land and buildings Following initial recognition at cost, land and buildings are carried at fair value less subsequent accumulated depreciation and accumulated impairment losses. Revaluations are performed with sufficient frequency such that the carrying amount of assets do not differ materially from those that would be determined using fair values as at the reporting date.

Revaluation adjustments are made on a class basis. Any revaluation increment is credited to equity under the heading of asset revaluation reserve except to the extent that it reversed a previous revaluation decrement of the same asset class that was previously recognised in the surplus/deficit. Revaluation decrements for a class of assets are recognised directly in the profit or loss except to the extent that they reverse a previous revaluation increment for that class. Any accumulated depreciation as at the revaluation date is eliminated against the gross carrying amount of the asset and the asset is restated to the revalued amount.

Depreciation Depreciable property, plant and equipment assets are written-off to their estimated residual values over their estimated useful life using, in all cases, the straight-line method of depreciation. Depreciation rates (useful lives), residual values and methods are reviewed at each reporting date and necessary adjustments are recognised in the current, or current and future reporting periods, as appropriate.

Depreciation rates applying to each class of depreciable asset are based on the following useful lives: 2017 2016 Land & Buildings 40 years 40 years Plant and equipment 4 to 40 years 4 to 40 years Derecognition An item of land, buildings, plant and equipment is derecognised upon disposal or when no future economic benefits are expected from its use or disposal. Any gain or loss arising on the disposal or retirement of an item of property, plant and equipment is determined as the difference between the sales proceeds and the carrying amount of the asset and is recognised in the profit and loss.

1.22 INVESTMENT PROPERTY Investment properties are properties held to earn rentals and/or for capital appreciation (including property under construction for such purposes). Investment properties are measured initially at its cost, including transaction costs.

Subsequent to initial recognition, investment properties are measured at fair value. Gains and losses arising from changes in the fair value of investment properties are included in profit and loss in the period in which they arise.

An investment property is derecognised upon disposal or when the investment property is permanently withdrawn from use and no future economic benefits are expected from the disposal. Any gain or loss arising on derecognition of the property (calculated as the difference between the net disposal proceeds and the carrying amount of the asset) is included in profit or loss in the period in which the property is derecognised.

1.23 IMPAIRMENT FOR NON-FINANCIAL ASSETS All assets are assessed for impairment at the end of each reporting period to the extent that there is an impairment trigger. Where indications of impairment exist, the asset’s recoverable amount is estimated and an impairment adjustment made if the asset’s recoverable amount is less than its carrying amount.

The recoverable amount of an asset is the higher of its fair value less costs to sell and its value in use. Value in use is the present value of the future cash flows expected to be derived from the asset. Where the future economic benefit of an asset is not primarily dependent on the asset’s ability to generate future cash flows, and the asset would be replaced if the Association were deprived of the asset, its value in use is taken to be its depreciated replacement cost.

1.24 NON-CURRENT ASSETS HELD FOR SALE Non-current assets are classified as held for sale if their carrying amount will be recovered principally through a sale transaction rather than through continuing use. This condition is regarded as met only when the sale is highly probable and the non-current asset is available for immediate sale in its present condition. Management must be committed to the sale, which should be expected to qualify for recognition as a completed sale within one year from the date of classification.

Non-current assets classified as held for sale are measured at the lower of their previous carrying amount and fair value less costs of disposal.

1.25 TAXATION Shop, Distributive and Allied Employees’ Association NSW Branch is exempt from income tax under section 50.1 of the Income Tax Assessment Act 1997 however still has obligation for Fringe Benefits Tax (FBT) and the Goods and Services Tax (GST).

Revenues, expenses and assets are recognised net of GST except:  where the amount of GST incurred is not recoverable from the Australian Taxation Office; and  for receivables and payables.

The net amount of GST recoverable from, or payable to, the taxation authority is included as part of receivables or payables.

Cash flows are included in the cash flow statement on a gross basis. The GST component of cash flows arising from investing and financing activities which is recoverable from, or payable to, the Australian Taxation Office is classified within operating cash flows.

Cash flows are included in the cash flow statement on a gross basis. The GST component of cash flows arising from investing and financing activities which is recoverable from, or payable to, the Australian Taxation Office is classified within operating cash flows.

1.26 FAIR VALUE MEASUREMENT Shop, Distributive and Allied Employees’ Association NSW Branch measures financial instruments, such as, financial asset as at fair value through the profit and loss, available for sale financial assets, and non-financial assets such as land and buildings and investment properties, at fair value at each balance sheet date. Also, fair values of financial instruments measured at amortised cost are disclosed in Note 16A. Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The fair value measurement is based on the presumption that the transaction to sell the asset or transfer the liability takes place either:  In the principal market for the asset or liability, or  In the absence of a principal market, in the most advantageous market for the asset or liability The principal or the most advantageous market must be accessible by the Association. The fair value of an asset or a liability is measured using the assumptions that market participants would use when pricing the asset or liability, assuming that market participants act in their economic best interest.

A fair value measurement of a non-financial asset takes into account a market participant’s ability to generate economic benefits by using the asset in its highest and best use or by selling it to another market participant that would use the asset in its highest and best use.

Shop, Distributive and Allied Employees’ Association NSW Branch uses valuation techniques that are appropriate in the circumstances and for which sufficient data are available to measure fair value, maximising the use of relevant observable inputs and minimising the use of unobservable inputs. 

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All assets and liabilities for which fair value is measured or disclosed in the financial statements are categorised within the fair value hierarchy, described as follows, based on the lowest level input that is significant to the fair value measurement as a whole:  Level 1—Quoted (unadjusted) market prices in active markets for identical assets or liabilities  Level 2—Valuation techniques for which the lowest level input that is significant to the fair value measurement is directly or indirectly observable  Level 3—Valuation techniques for which the lowest level input that is significant to the fair value measurement is unobservable For assets and liabilities that are recognised in the financial statements on a recurring basis, the Shop, Distributive and Allied Employees’ Association NSW Branch determines whether transfers have occurred between Levels in the hierarchy by re-assessing categorisation (based on the lowest level input that is significant to the fair value measurement as a whole) at the end of each reporting period.

External valuers are involved for valuation of significant assets, such as land and buildings and investment properties.

Selection criteria include market knowledge, reputation, independence and whether professional standards are maintained. For the purpose of fair value disclosures, the Shop, Distributive and Allied Employees’ Association NSW Branch has determined classes of assets and liabilities on the basis of the nature, characteristics and risks of the asset or liability and the level of the fair value hierarchy.

1.27 GOING CONCERN Shop, Distributive and Allied Employees’ Association NSW Branch is not reliant on the agreed financial support of another reporting unit to continue on a going concern basis.

Shop, Distributive and Allied Employees’ Association NSW Branch has not agreed to provide financial support to another reporting unit to ensure they can continue on a going concern basis.

NOTE 2: CHANGES TO ACCOUNTING POLICIES Due to consolidation between the Shop, Distributive and Allied Employees’ Association NSW Branch and subsidiary entity (Notes 18 & 19), new accounting policies have been applied. Consolidation has been performed under AASB10 Consolidated Financial Statements and new accounting policies have been based on this standard.

Upon applying, AASB10 Consolidated Financial Statements, it has been necessary for the Shop, Distributive and Allied Employees’ Association NSW Branch to change the presentation of the financial statements and notes to include information for both group and parent entities.

AASB108 Accounting Policies, Changes in Accounting Estimates and Errors allows retrospective application of comparative figures for prior periods. Consolidated comparative figures have been generated on a retrospective basis.

There have been no changes to the comparative figures for the parent entity.

The consolidation of entities has not resulted in any adjustments being made to comparative figures of the parent.

NOTE 3: EVENTS AFTER THE REPORTING PERIOD There were no events that occurred after 30 June 2017, and/or prior to the signing of the financial statements, that would affect the ongoing structure and financial activities of Shop, Distributive and Allied Employees’ Association NSW Branch.

NOTE 4: INCOME Consolidated Parent NOTE 4A: CAPITATION FEES 2017 $ 2016 $ 2017 $ 2016 $ Capitation fees Total capitation fees NOTE 4B: LEVIES Levies Total levies NOTE 4C: INTEREST Deposits 239,403 7 254,453 10 Loans 239,403 7 254,453 10 Total interest NOTE 4D: RENTAL REVENUE Properties 1,105,772 1,162,614 Other 1,105,772 Total rental revenue 1,162,614 NOTE 4E: GRANTS OR DONATION Grants Donations Total grants or donations NOTE 4F: NET GAINS FROM SALE OF ASSETS Land and buildings Plant and equipment 62,098 23,047 Intangibles 62,098 23,047 Total net gain from sale of assets NOTE 5: EXPENSES NOTE 5A: EMPLOYEE EXPENSES Holders of office: Wages and salaries 271,981 328,053 Superannuation 75,205 88,147 Leave and other entitlements 23,067 Separation and redundancies Other employee expenses 36,685 61,537 406,938 Subtotal employee expenses holders of office 477,737 Employees other than office holders: Wages and salaries 5,210,349 5,102,904 Superannuation 533,595 526,999 Leave and other entitlements 704,990 766,645 Separation and redundancies 644,432 Other employee expenses 684,284 7,093,366 7,080,832 Subtotal employee expenses employees other than office holders 7,500,304 7,558,569 Total employee expenses NOTE 5B: CAPITATION FEES Capitation fees Total capitation fees NOTE 5C: AFFILIATION FEES SDA National Office 1,393,869 1,393,869 1,436,067 1,436,067 SDA National Office – International Fund 209,080 209,080 215,410 215,410 ALP NSW 249,750 249,750 254,795 254,795 ALP ACT 7,878 7,878 7,186 7,186 Labor Council NSW 194,634 194,634 197,164 197,164 Labor Council ACT 1,530 1,530 1,578 1,578 2,874 2,874 Labor Council South Coast 2,911 2,911 2,059,615 2,059,615 2,115,111 2,115,111 Total affiliation fees/subscriptions NOTE 5D: ADMINISTRATION EXPENSES Consideration to employers for payroll deductions 1,550,699 1,477,589 Compulsory levies ACTU IR Campaign Levy 59,989 59,989 819 819 Fees/allowances - meeting and conferences 56,847 56,847 98,777 98,777 Conference and meeting expenses 852,243 787,094 785,916 710,688 Accommodation & Travel 192,863 149,116 Contractors & Consultants 414,688 401,946 Membership Propagation Expense 890,492 890,492 758,011 758,011 Journal Costs 466,398 466,398 352,428 352,428 Textbook, Scholarships & Teap Payments 84,871 84,874 54,696 54,696 Occupancy Expenses 1,018,716 977,478 Printing, Postage & Stationery 235,163 192,083 Telephone 169,401 169,117 Insurance 628,017 667,345 Motor Vehicle 430,992 447,445 649,438 172,110 Other 624,846 124,114 7,700,817 2,517,804 Subtotal administration expense 7,157,612 2,099,533 Operating lease rentals: 357,140 Minimum lease payments 345,640 8,057,957 2,517,804 Total administration expenses 7,503,252 2,099,533

Note: Compulsory Levy A compulsory levy of $1 per member was made by the Shop, Distributive and Allied Employees’ Association NSW Branch for Branch contribution to the ACTU IR Campaign Levy during the 2015/16 year. The purpose of the levy was to promote the aims and activities undertaken by trade unions.

NOTE 5E: GRANTS OR DONATIONS Consolidated Parent 2017 $ 2016 $ 2017 $ 2016 $ Grants: Total paid that were $1,000 or less Total paid that exceeded $1,000 Donations: Total paid that were $1,000 or less 6,272 2,173 8,905 4,164 104,236 92,728 Total paid that exceeded $1,000 14,212 4,243 110,508 94,901 Total grants or donations 23,117 8,407 NOTE 5F: DEPRECIATION AND AMORTISATION Depreciation Land & buildings 250,542 249,858 566,248 Property, plant and equipment 560,667 816,790 810,525 Total depreciation Amortisation Intangibles Total amortisation 816,790 Total depreciation and amortisation 810,525 NOTE 5G: LEGAL COSTS Litigation 1,445 8,876 Other legal matters 204,759 145,767 206,204 Total legal costs 154,643 NOTE 5H: OTHER EXPENSES Penalties - via RO Act or RO Regulations Total other expenses NOTE 6 CURRENT ASSETS NOTE 6A: CASH AND CASH EQUIVALENTS Cash on hand 1,650 1,450 200 Cash at bank 1,480,889 913,605 33,361 41,124 Short term deposits 10,115,048 9,446,984 Other 11,597,587 10,362,039 33,561 41,124 Total cash and cash equivalents NOTE 6B: TRADE AND OTHER RECEIVABLES Receivables from other reporting unit(s) Total receivables from other reporting unit(s) Less provision for doubtful debts Total provision for doubtful debts Receivable from other reporting unit(s) (net) Other receivables: GST receivable from the Australian Taxation Office 1,216,775 50,313 Other trade receivables 1,179,532 58,520 1,216,775 50,313 1,179,532 58,520 Total other receivables 1,216,775 50,313 Total trade and other receivables (net) 1,179,532 58,520 NOTE 6C: OTHER CURRENT ASSETS Prepayments 1,272,715 1,175,856 1,298,510 1,226,979 1,272,715 1,175,856 Total other current assets 1,298,510 1,226,979 NOTE 7: NON-CURRENT ASSETS NOTE 7A: LAND AND BUILDINGS Land and buildings: fair value 9,994,305 9,874,600 accumulated depreciation (271,500) (457,982) 9,722,805 Total land and buildings 9,416,618 Reconciliation of the Opening and Closing Balances of Land and Buildings As at 1 July Gross book value 9,994,305 9,994,305 Accumulated depreciation and impairment (20,958) (271,500) 9,973,347 Net book value 1 July 9,722,805 Additions: By purchase From acquisition of entities (including restructuring) Revaluations (119,705) Impairments Depreciation expense (250,542) (186,482) Other movement: Disposals: From disposal of entities (including restructuring) Other 9,722,805 Net book value 30 June 9,416,618 Net book value as of 30 June represented by: Gross book value 9,994,305 9,874,600 Accumulated depreciation and impairment (271,500) (457,982) Net book value 30 June 9,722,805 9,416,618 The fair value of land and buildings is included within level 2.

The revalued land and buildings consist of commercial property and carparking spaces held within NSW and the ACT Management determined that these constitute one class of asset under AASB 13, based on the nature, characteristics and risks of the property.

Fair value of the properties was determined by using direct comparison on a rate per square metre of lettable area supported by the capitalisation of net income method. This means that it utilises sales that have been analysed on a rate/m2 of strata area basis and compares the equivalent rates to the subject to establish the property’s current market value. As at the date of revaluation, 30 June 2017, the properties’ fair values are based on valuations performed by; Mark Willers of LandMark White and Timothy Heaton if CBRE Valuation & Advisory Services, an accredited independent valuer with a recognised professional qualification in Australian Property Institute and with recent experience in the location and category of the investment property being valued.

A significant increase (decrease) in estimated price per square metre in isolation would result in a significantly higher (lower) fair value.

NOTE 7B: PLANT AND EQUIPMENT Plant and equipment: at cost 3,781,152 3,796,694 accumulated depreciation (2,509,069) (2,798,296) 1,272,083 998,398 Total plant and equipment

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SDA 2017 FINANCIAL REPORTS  PAGE 36  SDA NEWS, SPRING 2017

NOTE 11: EQUITY NOTE 11A: GENERAL FUNDS

Table continued from previous page Reconciliation of the Opening and Closing Balances of Plant and Equipment Consolidated Parent 2017 $ 2016 $ 2017 $ 2016 $ As at 1 July Gross book value 3,890,125 3,781,152 Accumulated depreciation and impairment (2,289,784) (2,509,069) 1,600,341 Net book value 1 July 1,272,083 Additions: By purchase 252,174 323,347 From acquisition of entities (including restructuring) Impairments Depreciation expense (561,969) (556,127) Other movement: Disposals: From disposal of entities (including restructuring) Other (18,463) (40,905) 1,272,083 Net book value 30 June 998,398 Net book value as of 30 June represented by: Gross book value 3,781,152 3,796,694 Accumulated depreciation and impairment (2,509,069) (2,798,296) 1,272,083 Net book value 30 June 998,398 NOTE 7C: INVESTMENT PROPERTY Property Opening balances as at 1 July 16,102,000 16,102,000 Additions Net gain/(Loss) from fair value adjustment 11,807,500 Closing balance as at 30 June 16,102,000 27,909,500 Lease Incentive Opening balances as at 1 July 4,579,223 4,579,223 Additions 74,375 (2,557,550) Amortisation of lease incentive (3,015,473) Closing balance as at 30 June 2,021,673 1,638,125 18,123,673 29,547,625 Total Investment Property Property valuations were performed by Mark Willers of LandMark White, an accredited independent valuer with a recognised and relevant professional qualification and with recent experience in the location and category of the investment property being valued.

The fair value of completed investment property has been determined on a market value basis in accordance with International Valuation Standards (IVS), as set out by the International Valuation Standards Council (IVSC). In arriving at their estimates of market values, the valuers have used their market knowledge and professional judgement and not only relied on historical transactional comparables.

The highest and best use of the investment properties is not considered to be different from its current use.

Additions during the year relate to improvements on commercial property. This forms part of the lease incentive.

Rental income earned and received from the investment properties during the year was $1,615,202 (2016: $1,556,090).

Direct expenses incurred in relation to the investment properties that generated rental income during the year was $517,358 (2016: $544,848). During the year and as at the year-end, no restrictions on the realisability of investment property or the remittance of income and proceeds of disposal were present. The Association does not have any contractual obligations to purchase, construct or develop investment property or for repairs, maintenance or enhancements.

The fair value of the investment property is included within level 2.

NOTE 7D: OTHER INVESTMENTS Deposits Other Total other investments NOTE 7E: OTHER NON-CURRENT ASSETS Prepayments 100,525 88,707 Other 100,525 88,707 Total other non-financial assets NOTE 8: CURRENT LIABILITIES NOTE 8A: TRADE PAYABLES Trade creditors and accruals 576,385 21,546 553,248 51,689 Operating lease rentals 576,385 21,546 Subtotal trade creditors 553,248 51,689 Payables to other reporting unit(s) Subtotal payables to other reporting unit(s) 576,385 21,546 553,248 51,689 Total trade payables NOTE 8B: OTHER PAYABLES Wages and salaries Superannuation Consideration to employers for payroll deductions Legal costs Prepayments received/unearned revenue GST payable (17,554) (1,959) (11,967) (2,231) Other (17,554) (1,959) Total other payables (11,967) (2,231) Total other payables are expected to be settled in: No more than 12 months (17,554) (1,959) (11,967) (2,231) More than 12 months (17,554) (1,959) (11,967) (2,231) Total other payables NOTE 9: PROVISIONS NOTE 9A: EMPLOYEE PROVISIONS Office Holders: Annual leave 63,301 71,270 Long service leave 145,275 133,725 Separations and redundancies Other 208,576 204,995 Subtotal employee provisions—office holders Employees other than office holders: Annual leave 841,046 767,267 Long service leave 1,426,198 1,478,102 Separations and redundancies Other 2,267,244 Subtotal employee provisions—employees other 2,245,369 than office holders 2,475,820 2,450,364 Total employee provisions Current 2,445,838 2,431,161 29,982 Non-Current 19,203 2,475,820 Total employee provisions 2,450,364 NOTE 10: NON-CURRENT LIABILITIES NOTE 10A: OTHER NON-CURRENT LIABILITIES Total other non-current liabilities -

Consolidated 2017 $

Parent 2016 $

2017 $

2016 $ Asset Revaluation Reserve 5,683,423 Balance as at start of year 5,683,423 Transferred to reserve 11,751,171 Transferred out of reserve 5,683,423 17,434,594 Balance as at end of year 5,683,423 17,434,594 Total Reserves NOTE 11B: OTHER SPECIFIC DISCLOSURES - FUNDS Compulsory levy/voluntary contribution fund – if invested in assets Other fund(s) required by rules Balance as at start of year Transferred to reserve Transferred out of reserve Balance as at end of year NOTE 12: CASH FLOW NOTE 12A: CASH FLOW RECONCILIATION Reconciliation of cash and cash equivalents as per Balance Sheet to Cash Flow Statement: Cash and cash equivalents as per: Cash flow statement 10,362,039 41,124 11,597,587 33,561 10,362,039 41,124 Balance sheet 11,597,587 33,561 Difference Reconciliation of profit/(deficit) to net cash from operating activities: 490,270 37,583 348,198 21,896 Profit/(deficit) for the year Adjustments for non-cash items 816,790 810,525 Depreciation/amortisation Net write-down of non-financial assets Fair value movements in investment property (62,098) (23,047) Gain on disposal of assets Changes in assets/liabilities (346,380) 103,073 36,971 (8,478) (Increase)/decrease in net receivables (106,995) (114,084) (13,978) (51,124) (Increase)/decrease in prepayments (40,684) 7,827 (17,277) 30,143 Increase/(decrease) in supplier payables Increase/(decrease) in other payables 209,218 (25,457) Increase/(decrease) in employee provisions Increase/(decrease) in other provisions 960,121 34,399 1,115,935 (7,563) Net cash from (used by) operating activities NOTE 12B: CASH FLOW INFORMATION Cash inflows Shop, Distributive & Allied Employees’ Association National Office 8,973 50,119 Shop, Distributive & Allied Employee’s 4,304,439 NSW Deductions Account Office 3,820,133 19,310,880 4,698,893 19,499,048 4,602,196 Total cash inflows Cash outflows Shop, Distributive & Allied Employees’ Association National Office 1,791,711 1,726,510 1,711,844 1,706,162 Shop, Distributive & Allied Employee’s NSW Deductions Account Office 18,068,729 4,664,494 Total cash outflows 18,263,500 4,609,759 NOTE 13: CONTINGENT LIABILITIES, ASSETS AND COMMITMENTS NOTE 13A: COMMITMENTS AND CONTINGENCIES Operating lease commitments—as lessee The operating leases (property, plant, equipment and a membership hosting system) are non-cancellable with terms of three to six years. Operating leases are paid quarterly or monthly in advance. The leases provide a right of renewal at which time all terms are renegotiated.

Future minimum rentals payable under non-cancellable operating leases as at 30 June are as follows: Within one year 305,872 344,694 After one year but not more than five years 644,244 541,555 More than five years 950,116 886,249 Operating lease commitments—as lessor The association leases out its investment properties under operating leases (see note 7C). The future minimum lease income under non-cancellable leases are as follows: Future minimum rentals receivable under non-cancellable operating leases as at 30 June are as follows: Within one year 1,295,305 1,238,060 After one year but not more than five years 3,287,966 2,497,425 After five years 4,583,271 3,735,485 During the year, $1,162,614 was recognised as rental income in profit or loss (2016: $1,105,772) Capital commitments The Association is currently renovating an investment property. Total renovation costs are budgeted at $200,000, with completion expected within a year. Currently the Association has incurred costs of $74,375 (Note 7C). These costs are added to the lease incentive and will be amortised on a straight-line basis over the balance of the lease when renovations are completed.

Other contingent assets or liabilities (i.e. legal claims) The Association is not aware of any contingent asset or liability.

NOTE 14: RELATED PARTY DISCLOSURES NOTE 14A: RELATED PARTY TRANSACTIONS FOR THE REPORTING PERIOD The following table provides the total amount of transactions that have been entered into with related parties for the relevant year.

Revenue received from Shop, Distributive & Allied Employees’ Association National Office includes the following: Reimbursements – Publication expenses 4,750 Reimbursements - Other 4,223 50,119 Revenue received from Shop, Distributive & Allied Employees’ Association NSW Deductions Account Office includes the following: Transfer of surplus 4,304,439 3,820,113 Expenses paid to Shop, Distributive & Allied Employees’ Association National Office includes the following includes the following: Affiliation fees 1,393,869 1,393,869 1,436,067 1,436,067 Donation – 2017 Election campaign levy 68,910 68,910 100% Pay week of action campaign 17,933 Intranet service costs 28,326 ACTU IR Campaign levy 59,989 59,989 819 819 Other 18,326 5,682 -

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SDA 2017 FINANCIAL REPORTS  PAGE 37  SDA NEWS, SPRING 2017

Table continued from previous page Consolidated

Parent

2017 $ 2016 $ 2017 $ 2016 $ Expenses paid to Shop, Distributive & Allied Employees’ Association National Office – International Fund includes the following: Affiliation Fees – International Fund 209,080 209,080 215,410 215,410 Expenses paid to Australian Labor Party NSW includes the following includes the following: Affiliation fees 249,750 249,750 254,795 254,795 Donations – 2017 Election campaign 24,637 24,637 Donations – Campaign lunches / dinners 900 900 2,118 2,118 Donations – Other 2,188 2,188 Expenses paid to Australian Labor Party ACT includes the following: Affiliation fees 7,878 7,878 7,185 7,185 Donations – campaign levy 3,080 3,080 Expenses paid Labor Council NSW includes the following: Affiliation fees 197,164 194,634 197,164 197,164 Expenses paid Labor Council ACT includes the following: Affiliation fees 1,530 1,530 1,578 1,578 Expenses paid Labor Council South Coast includes the following: Affiliation fees 2,874 2,874 2,911 2,911 The sales to and purchases from related parties are made on terms equivalent to those that prevail in arm’s length transactions. Outstanding balances for sales and purchases at the year-end are unsecured and interest free and settlement occurs in cash. There have been no guarantees provided or received for any related party receivables or payables. For the year ended 30 June 2017, the Shop, Distributive and Allied Employees’ Association NSW Deductions Account Office has not recorded any impairment of receivables relating to amounts owed by related parties and declared person or body (2016: $Nil). This assessment is undertaken each financial year through examining the financial position of the related party and the market in which the related party operates.

NOTE 14B: KEY MANAGEMENT PERSONNEL REMUNERATION FOR THE REPORTING PERIOD Short-term employee benefits Salary (including annual leave taken) 279,210 319,772 Annual leave accrued 11,941 16,163 Performance bonus 36,684 Non-Monetary (Motor vehicle & parking) 31,384 327,835 Total short-term employee benefits 367,319 Post-employment benefits: Superannuation 75,205 88,147 75,205 Total post-employment benefits 88,147 Other long-term benefits: 11,126 Long-service leave 9,855 11,126 9,855 Total other long-term benefits Termination benefits 414,166 465,321 Total Key Management Personnel Bernie Smith Robert Tonkli Narelle Corrine Boyle Total Remuneration for 2017 Secretary $ Assistant Atkins Information Secretary $ Organiser $ Officer $ Short-term employee benefits Salary (including annual leave taken) 115,129 108,035 37,862 58,746 319,772 Honorarium Annual leave accrued 5,535 5,185 3,470 1,973 16,163 14,226 17,158 31,384 Non-monetary (motor vehicle and parking) Total short-term employee benefits 134,890 130,378 41,332 60,719 367,319 Post-employment benefits: Superannuation 24,944 20,298 6,098 36,807 88,147 24,944 20,298 6,098 36,807 88,147 Total post-employment benefits Other long-term benefits: Long-service leave 4,974 1,055 900 2,926 9,855 Total other long-term benefits 4,974 1,055 900 2,926 9,855 Total 164,808 151,731 48,330 100,452 465,321 Key Management Personnel Bernie Smith Robert Tonkli Corrine Boyle Total Remuneration for 2016 Secretary $ Assistant Information Secretary $ Officer $ Short-term employee benefits Salary (including annual leave taken) 112,090 102,402 64,718 279,210 Honorarium Annual leave accrued 5,581 5,719 641 11,941 Non-monetary (motor vehicle and parking) 14,320 17,115 5,249 36,684 131,991 125,236 70,609 327,835 Total short-term employee benefits Post-employment benefits: 24,190 22,377 28,638 75,205 Superannuation 24,190 22,377 28,638 75,205 Total post-employment benefits Other long-term benefits: Long-service leave 4,607 3,796 2,723 11,126 4,607 3,796 2,723 11,126 Total other long-term benefits Total 160,788 151,409 101,970 414,166 NOTE 15: REMUNERATION OF AUDITOR Consolidated Parent 2017 $ 2016 $ 2017 $ 2016 $ Value of the services provided Financial statement audit services 50,500 51,500 Other services 50,500 Total remuneration of auditors 51,500 No other services were provided by the auditors of the financial statements.

NOTE 16: FINANCIAL INSTRUMENTS The Shop, Distributive and Allied Employees’ Association NSW financial instruments consist primarily of deposits with banks, short term investments, accounts receivable and accounts payable. The totals for each category of financial Instruments are summarised in note 16A. The Committee of Management has overall responsibility for the establishment and oversight of risk management policies. Main policies aim to minimise potential risk exposure by actively securing short to medium term cash flows through minimising exposure to financial markets. The Association currently does not hold any long term financial instruments. The Association does not actively engage in the trading of financial assets for speculative purposes.

The main risks faced by the Association consist of; credit risk, liquidity risk and market risk, which are outlined below. a) Credit risk Credit risk is the risk of financial loss to the Association if a counterparty to a financial instrument fails to meet its contractual obligations, and arises primarily from the Association’s receivables and other financial assets. i) Receivables The Association’s exposure to credit risk is influenced mainly by the individual characteristics of each customer or tenant. The Association takes reasonable steps to ensure the credit worthiness of tenants. None of the tenants were in arrears at balance sheet date and there is no indication that any present significant credit risk. The Association continuously monitors defaults of customers and incorporates this information into its credit risk policies. ii) Cash and cash equivalents The maximum exposure of these assets is shown in note 16D. The cash and cash equivalents are held with bank counterparties, all of which are located in Australia. b) Liquidity risk Liquidity risk is the risk that the Association will encounter difficulty in meeting the obligations associated with its financial liabilities that are settled by delivering cash or another financial asset. The Association manages liquidity risk by monitoring forecast cash flows and ensuring that adequate cash facilities are maintained to meet liabilities when due under both normal and stress conditions, without incurring any unacceptable losses. See note 16E

c) Market Risk Market risk is the risk that changes in the market prices, such as foreign exchange rates, interest rates and equity prices will affect the Association’s income or the value of its holdings of financial instruments. The Association aims to control and manage market risk exposures to acceptable levels, while optimising return. See note 16F d) Interest rate risk The Association’s interest rate risk arises primarily from investments in term deposits which are issued at fixed rates for 30-day and 90-day terms. Term deposits mature at regular intervals to smooth fluctuations in interest rates being offered.

The majority of cash reserves are held in term deposits with the remainder held in variable rate at call cash accounts used to provide liquidity of funds.

Capital Management In conjunction with the above risk policies, specifically those relating to financial instruments, the Association’s policy is to maintain a strong capital base so as to sustain member, creditor and market confidence and to sustain future development of the unions activities. The Committee of Management monitors the return on capital and seeks to maintain a conservative position. There were no changes in the Association’s approach to capital management during the year.

NOTE 16A: CATEGORIES OF FINANCIAL INSTRUMENTS Consolidated Parent Financial Assets 2017 $ 2016 $ 2017 $ 2016 $ Fair value through profit or loss: Cash & Cash equivalents 10,362,039 41,124 11,597,587 33,561 10,362,039 41,124 Total 11,597,587 33,561 Held-to-maturity investments: Total Available-for-sale assets: Total Loans and receivables: Trade & other receivables 1,216,775 50,313 1,179,532 58,520 1,216,775 50,313 Total 1,179,532 58,520 11,578,814 91,437 12,777,119 92,081 Carrying amount of financial assets Financial Liabilities Fair value through profit or loss: Total Other financial liabilities: Trade & other payables 558,831 19,587 541,281 49,458 558,831 19,587 Total 541,281 49,458 558,831 19,587 Carrying amount of financial liabilities 541,281 49,458 NOTE 16B: NET INCOME AND EXPENSE FROM FINANCIAL ASSETS Held-to-maturity Interest revenue Exchange gains/(loss) Impairment Gain/loss on disposal Net gain/(loss) held-to-maturity Loans and receivables Interest revenue Exchange gains/(loss) Impairment Gain/loss on disposal Net gain/(loss) from loans and receivables Available for sale Interest revenue Dividend revenue Exchange gains/(loss) Gain/loss recognised in equity Amounts reversed from equity: Impairment Fair value changes reversed on disposal Gain/loss on disposal Net gain/(loss) from available for sale Fair value through profit and loss Held for trading: Change in fair value Interest revenue 239,403 7 254,453 10 Dividend revenue Exchange gains/(loss) Total held for trading Designated as fair value through profit and loss: Change in fair value Dividend revenue Exchange gains/(loss) Total designated as fair value through profit and loss Net gain/(loss) at fair value through 239,403 7 profit and loss 254,453 10 239,403 7 Net gain/(loss) from financial assets 254,453 10 The net income/expense from financial assets not at fair value from profit and loss is $0 (2016: $0).

NOTE 16C: NET INCOME AND EXPENSE FROM FINANCIAL LIABILITIES At amortised cost Interest expense Exchange gains/(loss) Gain/loss on disposal Net gain/(loss) financial liabilities - at amortised cost Fair value through profit and loss Held for trading: Change in fair value Interest expense Exchange gains/(loss) Total held for trading Designated as fair value through profit and loss: Change in fair value Interest expense Total designated as fair value through profit and loss Net gain/(loss) at fair value through profit and loss Net gain/(loss) from financial liabilities The net income/expense from financial liabilities not at fair value from profit and loss is $0 (2016: $0).

NOTE 16D: CREDIT RISK The Association is not exposed to any material credit risk.

The following table illustrates the entity’s gross exposure to credit risk, excluding any collateral or credit enhancements.

Financial assets Cash & cash equivalents 10,362,039 41,124 11,597,587 33,561 1,216,775 50,313 Trade receivables 1,179,532 58,520 11,578,814 91,437 Total 12,777,119 92,081 Financial liabilities 558,831 19,587 Trade payables 541,281 49,458 558,831 19,587 Total 541,281 49,458 In relation to the entity’s gross credit risk the following collateral is held: nil Table continued on next page

SDA 2017 FINANCIAL REPORTS  PAGE 38  SDA NEWS, SPRING 2017

Table continued from previous page Credit quality of financial instruments not past due or individually determined as impaired – Consolidated Not Past Due Nor Past due or impaired Not Past Due Nor Past due or impaired Impaired 2016 $ 2016 $ Impaired 2017 $ 2017 $ Cash & cash equivalents 10,362,039 11,597,587 1,216,775 Trade receivables 1,179,532 11,578,814 Total 12,777,119 Credit quality of financial instruments not past due or individually determined as impaired - Parent Not Past Due Nor Past due or impaired Not Past Due Nor Past due or impaired Impaired 2016 $ 2016 $ Impaired 2017 $ 2017 $ Cash & cash equivalents 41,124 33,561 Trade receivables 50,313 58,520 91,437 Total 92,081 Ageing of financial assets that were past due but not impaired for 2017 None of the Shop, Distributive and Allied Employees’ NSW Branch’s receivables were past due, and based on past default rates and minimal credit risk, the Association believes no impairment allowance is necessary.

Other financial assets consist of term deposits and at call accounts, held with the Commonwealth Bank of Australia, thus the Association believes no impairment allowance is necessary.

As at 30 June 2017 the Association does not have any collective impairments on its cash and cash equivalents or receivables.

None of the receivables lie outside Australia.

Ageing of financial assets that were past due but not impaired for 2016 None of the Shop, Distributive and Allied Employees’ NSW Branch’s were past due, and based on past default rates and minimal credit risk, the Association believes no impairment allowance is necessary.

Other financial assets consist of term deposits and at call accounts, held with the Commonwealth Bank of Australia, thus the Association believes no impairment allowance is necessary.

As at 30 June 2016 the Association does not have any collective impairments on its cash and cash equivalents or receivables.

None of the receivables lie outside Australia.

NOTE 16E: LIQUIDITY RISK The Association manages liquidity risk by monitoring forecast cash flows and ensuring that adequate cash facilities are maintained. The Association assess the liquidity risk as minimal as it holds sufficient financial assets to cover the expected contractual outflows.

On Demand < 1 year $ 1– 2 years $ 2– 5 years $ >5 years $ Total $ Contractual maturities for financial liabilities 2017 - Consolidated Trade Payables 541,281 541,281 Total 541,281 541,281 Maturities for financial liabilities 2016 – Consolidated Trade Payables 558,831 558,831 Total 558,831 558,831 Contractual maturities for financial liabilities 2017 - Parent Trade Payables 49,458 49,458 Total 49,458 49,458 Maturities for financial liabilities 2016 – Parent Trade Payables 19,587 19,587 Total 19,587 19,587 NOTE 16F: MARKET RISK Interest Rate Risk Interest rate risk is managed with a mixture of fixed and floating rate cash balances. At 30 June 2017, approximately 87.47% of the Association’s cash balance is fixed.

The fixed rate instruments consist of 30 & 90-day term deposits and money market call account, shown in cash and cash equivalents (Note 6A). A one percent (1.0%) change in interest rates at the reporting date would have increased (decreased) equity and profit or loss by the amounts shown below. This analysis assumes that all other variables remain constant. This analysis is performed on the same basis for 2016.

Risk variable Change in risk variable % Effect on Sensitivity analysis of the risk that the entity is exposed to for 2017 Profit and loss $ Equity $ Interest rate risk Increase 101,150 101,150 1.0% Interest rate risk Decrease (101,150) (101,150) -1.0% Sensitivity analysis of the risk that the entity is exposed to for 2016 Interest rate risk Increase 94,470 94,470 1.0% Interest rate risk Decrease (94,470) (94,470) -1.0% Price Risk The Association is not exposed to any price risk.

Foreign Currency Risk The Association is not exposed to fluctuations in foreign currencies.

NOTE 17: FAIR VALUE MEASUREMENT NOTE 17A: FINANCIAL ASSETS AND LIABILITIES Management of the reporting unit assessed that cash, trade receivables, trade payables, and other current liabilities approximate their carrying amounts largely due to the short-term maturities of these instruments.

The fair value of financial assets and liabilities is included at the amount which the instrument could be exchanged in a current transaction between willing parties. The following methods and assumptions were used to estimate the fair values:  Fair values of the reporting unit’s interest-bearing borrowings and loans are determined by using a discounted cash flow method. The discount rate used reflects the issuer’s borrowing rate as at the end of the reporting period. The own performance risk as at 30 June 2017 was assessed to be insignificant.  Fair value of available-for-sale financial assets is derived from quoted market prices in active markets.  Long-term fixed-rate and variable-rate receivables/borrowings are evaluated by the Group based on parameters such as interest rates and individual credit worthiness of the customer. Based on this evaluation, allowances are taken into account for the expected losses of these receivables. As at 30 June 2017 the carrying amounts of such receivables, net of allowances, were not materially different from their calculated fair values.

The Association measures and recognises the following assets at their fair value on a recurring basis after initial recognition:  Available-for-sale financial assets; and  Freehold land and building The following table contains the carrying amounts and related fair values for the Shop, Distributive and Allied Employees’ Association NSW Branch financial assets and liabilities: Carrying amount Fair value Carrying amount Fair value 2017 $ 2017 $ 2016 $ 2016 $ Consolidated Financial Assets Cash & cash equivalents 10,362,039 10,362,039 11,597,587 11,597,587 1,216,775 1,216,775 Receivables 1,179,532 1,179,532 11,578,814 11,578,814 Total 12,777,119 12,777,119 Financial Liabilities Payables 558,831 558,831 541,281 541,281 558,831 558,831 Total 541,281 541,281 Parent Financial Assets Cash & cash equivalents 41,124 41,124 33,561 33,561 50,313 50,313 Receivables 58,520 58,520 91,437 91,437 Total 92,081 92,081 Financial Liabilities 19,587 19,587 Payables 49,458 49,458 19,587 19,587 Total 49,458 49,458 NOTE 17B: FAIR VALUE HIERARCHY The following table provide an analysis of financial and non-financial assets and liabilities that are measured at fair value, by fair value hierarchy.

Fair value hierarchy 30 June 2017 Fair value hierarchy – Consolidated 30 June 2017 Assets measured at fair value Date of valuation Level 1 $ Level 2 $ Level 3 $ Non-Financial Assets Land & Buildings 30 June 2017 9,416,618 27,909,500 Investment Property 30 June 2017 Total 37,326,118 Liabilities measured at fair value Total

Fair value hierarchy – Consolidated 30 June 2016 Assets measured at fair value Date of valuation Level 1 $ Level 2 $ Level 3 $ Non-Financial Assets Land & Buildings 30 June 2016 9,722,805 16,102,000 Investment Property 30 June 2014 25,824,805 Total Liabilities measured at fair value Total Fair value hierarchy – Parent 30 June 2017 Assets measured at fair value Total Liabilities measured at fair value Total Fair value hierarchy – Parent 30 June 2016 Assets measured at fair value Total Liabilities measured at fair value Total NOTE 17C: FAIR VALUE HIERARCHY Total amount disclosed in 2016 consolidated comparative figures was $18,123,673 (parent: $0). This comprised of investment property at fair value $16,102,000 and carrying amount of lease incentive $2,021,673.

In 2017 the fair value of investment property (consolidated) was $27,909,500 and carrying amount of lease incentive was $1,638,125 giving a total of $29,547,625 (parent: $0).

All investment properties held by the Shop, Distributive and Allied Employees’ Association NSW Branch were revalued in 2017 as per internal policy. No revaluations took place in year 2016 NOTE 18: BUSINESS COMBINATIONS Subsidiaries acquired Name of entity Principal activity Date of Control acquired Consideration acquisition % transferred 2017: Shop, Distributive and Allied Preserving and enhancing the Refer to 100 Employees’ Association NSW wages and working conditions of its Note 19 Deductions Account Office members, and the promotion of the interests and rights of workers 2016: No acquisitions Consideration transferred Shop, Distributive and Allied Employees’ Association 2017: NSW Deductions Account Office Cash Total No acquisitions 2016: Cash Total Assets acquired and liabilities assumed at the date of acquisition Shop, Distributive and Allied Employees’ Total 2017: Association NSW Deductions Account Office Current assets Cash and cash equivalents 10,320,915 10,320,915 Trade and other receivables 1,166,462 1,166,462 Other current assets 96,859 96,859 Non-current assets Land & buildings 9,722,805 9,722,805 Plant & equipment 1,272,083 1,272,083 Investment property 18,123,673 18,123,673 Other non-current assets 100,525 100,525 Current liabilities Trade and other payables (539,243) (539,243) Employee provisions (2,445,838) (2,445,838) Non-current liabilities (29,982) (29,982) Employee provisions 37,788,259 37,788,259 Total 2016: Current assets Non-current assets Current liabilities Non-current liabilities Goodwill arising on acquisition No goodwill was recorded on the acquisition of the Shop, Distributive and Allied Employees’ NSW Deductions Account Office.

NOTE 19: INFORMATION ABOUT SUBSIDIARIES The consolidated financial statements of the Shop, Distributive and Allied Employees’ Association NSW Branch include: Name of entity Principal activity Country of Control Control origin 2017 2016 % % Shop, Distributive and Allied Preserving and enhancing the wages and Australia 100 100 Employees’ Association NSW working conditions of its members, and the Deductions Account Office promotion of the interests and rights of workers There are no other subsidiaries nor is there any non-controlling interests held by other parties.

As mentioned in the operating report, these reports represent the consolidation of; i) Shop, Distributive and Allied Employees’ Association NSW Branch ii) Shop, Distributive and Allied Employees’ Association NSW Deductions account Office The Shop, Distributive and Allied Employees’ Association NSW Deductions Account office was established on 29 September 1981 to act in trust for, and continues to operate in trust for, the Shop, Distributive and Allied Employees’ Association NSW Branch.

In previous years each of these entities have lodged separate financial reports with the Registered Organisations Commission or its predecessor. The decision was made this year following consultation with the Registered Organisations Commission, to present a consolidated financial report, to ensure compliance with the request of the Registered Organisations Commission.

For the purposes of AASB10 Consolidated Financial Statements, the Shop, Distributive and Allied Employees’ Association NSW Branch considered whether it had control over its subsidiary entity before consolidation was performed. It was determined that effective control exists.

The Shop, Distributive and Allied Employees’ Association NSW Branch does not have any significant restrictions over the Group’s ability to access or use the assets, and settle liabilities of the Group.

NOTE 20: SECTION 272 FAIR WORK (REGISTERED ORGANISATIONS) ACT 2009 In accordance with the requirements of the Fair Work (Registered Organisations) Act 2009, the attention of members is drawn to the provisions of subsections (1) to (3) of section 272, which reads as follows: Information to be provided to members or Commissioner: 1) A member of a reporting unit, or the Commissioner, may apply to the reporting unit for specified prescribed information in relation to the reporting unit to be made available to the person making the application.

2) The application must be in writing and must specify the period within which, and the manner in which, the information is to be made available. The period must not be less than 14 days after the application is given to the reporting unit.

3) A reporting unit must comply with an application made under subsection (1).

SDA 2017 FINANCIAL REPORTS  PAGE 39  SDA NEWS, SPRING 2017

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