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FROM THE EXECUTIVE DIRECTOR'S DESK 
As this E-News goes to air you would all be aware of the changes that have occurred since our last major E-News. The major shift of course has been after 3.5 years as Executive Director; Phillip McGilvray has decided to concentrate his energies where as he puts it, into training where his true aspirations lay.
It was both a pleasure and an honor that the Board of Directors on your behalf offered me the position and I was very proud to accept. I have been in the Automotive Industry in this city for over 45 years having started as an apprentice in 1965. Having been the Deputy Executive Director since June last year I have felt I can put something back into an industry that has treated me well, moving forward I feel I can do more and return in some small way to the members of the Association.
It now becomes a matter of where to from here, all the requirements of the position that Phil so ably completed will have to be continued with the same vigor and enthusiasm, it won’t be a case of a new broom sweeping clean. Many of the major projects I was tasked with in the middle of last year continue as they are in various states of completion and there will of course be new challenges set every day. One of the hard parts of the position is much of what is done has to be reactive not proactive but that doesn’t mean we can’t plan for the future.
Going forward I would like to concentrate some time and energy to enhancing the brand MTA. Members of MTA ACT are justifiably very proud of their businesses and this Association. It is my endeavor to market the brand to the Motoring Public of Canberra and surrounding districts. A simple effective strategy to value add to your membership of this Association, to tell your customers why being a member of MTA ACT should really count for them and why they should do business with a Dealer, Repairer, Panel Beater, Painter etc who is proud enough to hang the MTA Logo over his door.
In a world full of litigation any strength that can be added to a members business however subtle must in my opinion be a positive for all. I would like to build trust into the organisation where a consumer even having a perceived issue will understand that being a member of MTA ACT gives the business a sense of credibility they may otherwise not enjoy.
It is not an exaggeration that this office would deal with a consumer issue at least once a week. Although members are probably not aware most of these situations if not handled to a conclusion are handled to a point where the fire and brimstone is removed from the consumer issue. We can’t and wouldn’t be presumptuous enough to make a decision for a member but unseeing unknowing we do try and ease the way.
To make things happen I need and invite your feedback.
Is the idea to lift the brand what you the members would like to see?
If yes how do you feel it can be done?
I have ideas but your input as members will be appreciated, at all times we have to be aware of the budget we are not a wealthy Association but careful planning and astute buying will allow us to proceed.
Please feed back your thoughts and ideas to our office and we will go from there.
Again I thank all members for the opportunity to serve and look forward to working with all into the future.
Missing in action
It is our intention to be more interactive and proactive for the Members of MTA.ACT.
From time to time members may find the office phone may go unanswered as both myself and Helen will be away from our desks. Unfortunately we no longer have the support of the staff from Regional Group Training as a temporary back up.
At all times the answering machine will be switched on and or the phone diverted to one of our mobile phones. Please be assured your enquiries will be responded to in a timely manner.
EMPLOYMENT RELATIONS UPDATE
More Features of the New Awards and National Employment Standards
Important changes to award entitlements were introduced on 1 January 2010 with the commencement of the new Vehicle Manufacturing, Repair, Services and Retail Award 2010 and the Clerks - Private Sector Award 2010.
The 10 uniform national conditions of employment contained in the new National Employment Standards (NES) also commenced operating on 1 January 2010. It is important members are aware of the following changes which apply to both existing and new employees from1 January 2010. Annual leave and Personal/carer's leave were covered in the January issue of the MTA E-News.
Unfair Dismissals
Employees with more than 6 months service with large employers (more than 15 employees) or 12 months service with small employers will be entitled to make unfair dismissal claims.
Small business should access the use of the new Fair Dismissal Code Checklist to ensure that they are meeting their obligations whenever they terminate the employment of a worker.
Redundancies will be far more strongly scrutinised, and could be held to be unfair if employers have not at least explored and where feasible, offered redeployment opportunities.
Deduction from Wages
The Fair Work Act provides that an employer may deduct from any monies due (including from annual leave accrued) an amount from which an employee who does not give the appropriate period of notice of termination, so long as there is provision in the modern award or NES. Note: that in the case of award/agreement free employees payment of annual leave on termination cannot be withheld because it is not provided for under the NES, regardless of the circumstances surrounding the employee's termination.
Part-time employment
There is no 'minimum hours per day' requirement, whereas the previous award provided for a minimum of three hours per day.
Casual employment
A casual employee other than an irregular casual (that is, one who has been engaged to perform work on an occasional, non-systematic or irregular basis) working for a sequence of periods of employment for six months (after the commencement of the new award on 1 January 2010) has the right to elect to convert to full-time or part-time employment (depending on the new or regular casual hours being worked during the preceding six-month period).
Existing casual employees must have worked for a period of six months after 1 January 2010 before an employer is required to advise an employee of their entitlement to elect to convert. Every employer must give notice in writing, within fours weeks of employee having worked a period of six months, giving a casual employee notice of their right to elect to convert from casual to full-time weekly or permanent part-time employment.
Having been given notice, the employee has four weeks to elect to convert to weekly full-time or permanent part-time employment. If the employee does not formally advise the employer in writing to take up the option to convert from casual employment, the employee is regarded as having elected against any conversion.
If the employee confirms in writing that they wish to convert to full-time or permanent part-time employment the employer then has four weeks to consent or refuse, but must not unreasonably refuse. The employer and majority of employees can agree to the six months conversion period being extended to 12 months. Ths can only occur with respect to a current employee or a group of employees.
Motor Vehicle salesperson definition
Definition includes motorcycle salesperson for purposes of wage rates. This change means that motorcycle salespersons now come under the special provisions in the new award which apply to vehicle salespersons.
A part-time motorcycle salesperson will now work a regular number of days not less than two per week.
Superannuation
When an employee is on workers' compensation (that is, for new claims from 1 January 2010) the employer is required to make superannuation contributions on the basis of 9 percent for a period of up to 52 weeks.
Previous award entitlement of 3 percent for employees earning between $200 and $450 no longer applies.
ABANDONMENT OF EMPLOYMENT
Members are sometimes faced with a situation where an employee leaves their employment without intending to return to the job and fails to communicate this intention to their employer.
Abandonment of employment can occur at any time but tends to occur when an employee takes annual leave, particularly during Christmas, and then simply fails to return to their job, at the end of the annual leave period.
Under the federal Vehicle Industry Repair, Services and Retail Award 2002, where an employee absents himself/herself from work for a continuous period exceeding three working days without the consent of the employer and without notification to the employer of the absence as required under the Award, this constitutes prima facie evidence that the employee has abandoned his/her employment.
If within a period of fourteen days from the employees last attendance at work or the date of his/her last absence in respect of which notification has been given or consent has been granted, the employee has not established to the satisfaction of the employer that the absence was for reasonable cause, the employee shall be deemed to have abandoned his/her employment.
MTA recommends that pursuant to the abandonment clause in the Award, after the three working days has elapsed, the employer should send a registered letter to the employee’s last known residential address indicating that the employee’s absence for more than three working days constitutes prima facie evidence of abandonment of employment and that unless the employee responds within 14 days from the date of the Letter justifying the absence to the satisfaction of the employer, he/she shall be deemed to have abandoned their employment.
If no response has been forthcoming at the end of the 14 day period the employer should send a second registered letter to the employee indicating that the employee has deemed to have abandoned his/her employment and that the employment has been terminated. Note that termination of employment by abandonment under the terms of the Award operates from the date of the last attendance at work or the last day’s absence in respect of which consent was granted, or the date of the last absence in respect of which notification was given to the employer, whichever is the later.
Members are advised that from 1 January 2010, the new federal Vehicle Manufacturing, Repair, Services and Retail Award 2010 became operative and that under the new modern Award, the abandonment of employment clause has been removed.
From 1 January 2010, abandonment of employment will therefore have to be dealt with under the common law. The basis of a termination for abandonment of employment under the common law includes frustration of the employment contract or a willful refusal to carry out the duties of employment.
In terms of the process for dealing with abandonment of employment from 1 January 2010, MTA advises that Members use the three day absence as indicated above and thereafter send one registered letter to the employee indicating that the employee’s absence for more than three days constitutes prima facie evidence of abandonment and that unless the employee responds within one week justifying the absence to the employer’s satisfaction, the employee will be deemed to have abandoned his/her employment and will be terminated forthwith.
In relation to advice on abandonment of employment, members are urged to contact the MTA for assistance in providing strategies to manage abandonment issues in your individual circumstances.
DON'T DELAY IN REGISTERING APPRENTICES
Delay in registering apprentices could cost employers thousands in back-pay and fines
In the past three months, the Fair Work Ombudsman issued a number of media releases about the consequences of employers delaying the registration of new apprentices. In a December 2009 statement, the Office of the Fair Work Ombudsman described several cases in which employers, who paid their young employees apprentice rates without registering them as apprentices, had to reimburse the apprentices wages in excess of several thousands dollars and were likely to face legal action. The fines for underpaying a potential apprentice can be as high as $33,000.
In some of the above mentioned cases, the Fair Work Inspectors identified during their random site visits that employers were paying apprentice rates to their young workers erroneously. In other reported instances, Fair Work Inspectors acted in response to underpayment complaints from apprentices in industries including electrical trades, construction and hairdressing. The absence of a signed and registered training contract was the major source of problems in all of the reported cases. A training contract is different from an employment agreement. An employment agreement is a contract of service between an employer and a worker (who may or may not be an apprentice). It may set out the terms and conditions of employment.
A training contract is an agreement signed by an employer, the potential apprentice and a parent or guardian (if applicable) specifying the type of apprenticeship or traineeship that will be undertaken. It details the training obligations of employers and apprentices. The training contract also contains details of the commencement date for the training, the duration of the training period and which Registered Training Organisation will provide the off-the-job training.
A training contract must be signed within 14 days of the apprentice being employed
as an apprentice. Once a training contract has been signed by the relevant parties it has to be forwarded immediately to the relevant training authority for registration. Only employees who are registered apprentices can be paid apprentice rates. The delay in registering an apprentice by employing them as a junior employee could also disqualify both the employer and employee from their respective benefits (incentive payments for employers and reduced training expenses, tool kits for apprentices) that they gain through a formalised apprenticeship. For example, if an employer had a person working with them for five months and then decided to have them signed up as an apprentice, the employer may be able to claim Government subsidies but the full training costs at a TAFE college must be paid for by the employee or employer.
The important point for members to remember is that only registered apprentices can be paid apprentices wage rates.
MTAA SUPERANNUATION 
New Year (financial) resolutions!
Why not make it a new year’s resolution to get your financial affairs in order and start working towards achieving your financial goals. The start of a new year is a great time to take stock of where you are at financially and where you would like to be.
Consider the following financial issues and whether or not you would benefit from taking some action.
Consolidate your super funds
Your super is your money so don’t ignore it! If you have had more than one job you may have more than one super fund and that means more than one set of fees and charges. If you roll over your other super accounts into MTAA Super you can benefit by saving on costs and reduce the chances of losing track of your super, BUT, before you close any other existing super accounts make sure you check for any disadvantages in leaving such as exit fees and the possible loss of insurance cover. You should make sure your insurance arrangements with MTAA Super are adequate before you close your other super accounts. This is easily done by applying to MTAA Super for pre-approval of your required level of cover.
Topping up your super with salary sacrifice
Superannuation is widely regarded as the most efficient and tax effective way of investing for your retirement. Contributing a little extra now could significantly boost your end retirement benefit. The key is to take advantage of compound interest (earning interest on your interest) by starting early. You may be able to negotiate with your employer to pay a portion of your salary directly to your super account from your gross income. This is called salary sacrifice and may reduce your tax bill as well as boost your super.
Taking advantage of the Super Co-contribution
If you have a total income of less than $61,920 before tax and also make personal, after tax contributions to your super account, you may be eligible to benefit from the super co-contribution scheme. This is the Federal Government’s initiative to assist eligible low to middle income earners save for their retirement. To see if you qualify and for more information on this scheme you can download our fact sheet on making extra contributions from www.mtaasuper.com.au
Insurance
Having the right level of insurance cover for your personal circumstances will help provide peace of mind for you and your dependants and it’s a good idea to review your insurance needs from time to time to make sure your cover takes into account any changes in your circumstances.
Consider the following:
• Do you have a regular mortgage payment to meet?
• Are you the owner of a small business?
• Do you have or are you about to have children
• Do you have people who are financially dependant on you?
If you answer yes to any of these questions you may need to consider applying for additional insurance. MTAA Super members can apply for up to five million dollars of death only cover, two million dollars of total and permanent disability cover and income protection cover of up to 85% of salary with a maximum benefit of $20,000 per month.
Financial planning
In order to maximise your financial outcomes, you really need to have a financial plan. This will help you make the most of all your financial decisions, including super investment choices and contributions, tax benefits, retirement arrangements and estate planning. MTAA Super members have access to fee-for-service financial planning through Industry Fund Financial Planning (IFFP). Call our Customer Service Centre on 1300 362 415 to be put in touch with an IFFP planner in your area.
Do you understand how your super works?
MTAA Super holds presentations across Australia that are open to anyone, free of charge - you don't even have to be a member to attend, so bring your partner or a friend. We offer the kind of general information that everyone needs to know.
You should come away from the seminar with a better understanding of salary sacrificing, voluntary contributions and how tax affects super.
MTAA Super workplace presentations
For employers, it's easy to arrange a presentation in your own workplace, and each presentation is tailored specifically to your staff. Just tell your Business Development Manager (BDM) the subjects you would like to see covered, and they will put together a special presentation for you. It might include for example, insurance, making extra contributions and consolidating super - there are a range of topics that can be discussed, so talk to you Business Development Manager about what your employees are interested in. Call us on 1300 362 415 to be put in touch with your local BDM.
The information in this article is provided by Motor Trades Association of Australia Superannuation Fund Pty Ltd (ABN 14 008 650 628 AFSL 238718), Trustee of the MTAA Superannuation Fund (MTAA Super) (ABN 74 559 365 913). Any advice contained in this article is of a general nature and does not take into account your objectives, financial situation or needs. The MTAA Super Product Disclosure Statement (PDS), an important document containing all the information you need to make a decision about MTAA Super, can be obtained by calling MTAA Super on 1300 362 415 or from www.mtaasuper.com.au. You should consider the PDS in making any decision about MTAA Super.
OFFICE OF REGULATORY SERVICES UPDATE 
WORKCOVER
Workers Compensation Act 1951
On 10 December 2009, the ACT Legislative Assembly passed the Workers Compensation Amendment Bill 2009, which introduced amendments to the workers’ compensation framework created by the Workers Compensation Act 1951 (the Act). In essence, the amendments:
- reduce the administrative burden on employers in connection with meeting their workers compensation obligations;
- provide for the fair and equal distribution of workers’ compensation expenses across all Territory employers; and
- implement the National Framework for the Approval of Workplace Rehabilitation Providers (the National Framework).
The amendments commence in two stages.
From 1 January 2010:
- Insurers are no longer compelled to involve the services of an approved rehabilitation provider as part of an injured worker’s personal injury plan unless the worker has been unable to return to their pre-injury hours and duties within 4 weeks of injury.
- Employers are no longer required to provide either a statutory declaration or a certificate from a recognised auditor in connection with the provision of wage related information to insurers. Instead, employers are required to provide a statement setting out the relevant wage related information.
- A revised hierarchy of offences and penalties applies in relation to an employer’s failure to maintain a workers’ compensation policy, the under declaration of wages and the provision of false or misleading information. Non-compliant employers may face criminal prosecution and/or a cease business order that would prevent them from conducting business until such time as a workers’ compensation policy with the correct declaration of wages is maintained.
- Employers will face a civil penalty of up to double the premium avoided premium through their failure to either obtain a policy of insurance or to provide correct wages information to insurers.
From 1 July 2010:
- Provisions commence relating to the definition of a worker and total wages.
- Applications for approval for an organisation seeking to operate as approved rehabilitation providers must comply with the requirements under the National Framework.
The Office of Regulatory Services will be providing additional information to relevant parties, particularly in relation to applications under the National Framework, prior to 1 July 2010 to inform them of their
new obligations under the Act.
To find out more about the changes to the Act please contact the Workers Compensation Unit on
6207 3000 or WorkersComp@act.gov.au
FAIR TRADING
Protect Yourselves from Online Scammers
Remember: If it sounds too good to be true, it probably is!
The Commissioner for Fair Trading has issued a warning to the ACT community to be aware of a recent online scam involving the sale of goods over the internet.
The scam involves luring people in with fantastic offers too good to refuse, only for the consumer to lose their money without delivery of the goods or to potentially have their identity stolen.
The Office of Regulatory Services has recently been informed of a scam involving the advertising of a motor vehicle via an online website. The seller advertised the vehicle at a below market value price with very favourable conditions and offered a 10 day cooling off period. The seller then claimed to be living in the UK and needed to sell the car cheaply due to personal circumstances. When a potential customer expressed interest in the vehicle the seller then requested the consumer release personal information before any further steps were taken.
The scam works by luring individuals in with enticing offers and convincing them to give out personal information and pay large sums of money via unsecure methods. Once the consumer realises it is a scam, the money is often gone and the goods never arrive.
This is one of many scams which may involve different goods or even rental properties, but they work in the same manner and leave unsuspecting consumers without the goods they purchased and with little recourse.
There are a number of things a consumer can do to increase protection from this kind of scam:
- Do your own research into what protection the website offers; don't just believe the seller.
- Read through a website's trading policy to see if the seller is complying with safe methods of trade.
- Do you own research into the goods you want to buy.
- Use a safe and secure payment method that offers you a record of purchase, is traceable and is refundable if a dispute arises.
- Approach requests for payment via a money transfer service with caution as the transaction is not reversible and cannot be traced.
The Commissioner urges all consumers to protect themselves as much as possible. Remember, do not hand over money or personal details to someone you do not trust, and if it sounds too good to be true, it probably is!
Any consumers wishing to report a local scam may contact the Officer of Regulatory Services Advice & Complaints Unit on 02 6207 0400 or for an interstate or national scam contact SCAMwatch on 1300 302 502.
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