EMPLOYMENT RELATIONS UPDATE
Job Interview - do it wrong and you will face problems
Some members seem to believe that they can now be less cautious when engaging new employees, or terminating the employment of existing staff, owing to recent changes to workplace laws which make it harder for aggrieved employees to sue their employers for unfair dismissal.
WorkChoices, the Equal Employment Opportunity ("EEO"), and Trade Practice ("TP") legislation however, provide other avenues for prospective and current employees to seek unlawful treatment from an employer.
Members maybe unaware of legislation that prevents them asking questions at job interviews on subjects such as age, place of birth, marital status and responsibility for children.
Unless a prospective employee is applying for an apprenticeship or a junior position where the award prescribes age based pay rates, it is unlawful to ask their age because age is a specific ground for discrimination under both State and Federal legislation. Under EEO legislation, age discrimination is a denial of equal employment opportunities as it involves making assumptions about a person's physical and mental capacity, and the impact of their appearance on customers' perception of services provided or products sold by the employer.
Asking a person's place of birth can be considered as an attempt to find out the racial origin of an employee. State and federal legislation renders discrimination in employment on the ground of race unlawful. Questions about a person's ability to speak other languages fluently are only permitted where language skills are a pre-requisite of employment.
Questions relating to criminal records are only aceptable where having no conviction is essential to the job. Examples of such jobs in the Retail Motor Industry include Vehicle Sales persons, and Finance and Insurance sales persons' position.
Employers are free to ask questions on prospective employees' availability for work on weekends or about their capacity to travel extensively.
It is acceptable for employers to query whether an employee has any impairment (physical or mental) which interferes with their ability to perform any part of the job safely.
Employers are not prevented from asking questions about candidcates' work history and reasons for changing jobs.
When interviewing prospective employees, members must be careful not to mislead candidates about the natue of and/or benefits of a particular position. If an employee's remuneration package consists of a bonus or commission component, employers must not exaggerate about the earning potentials of the position. Unless a contract is for a fixed term, there should bo no promises on the possible length of the employment. To prevent a claim under TP legislation for misleading conduct, employers should not tell candidates that a newly created job is "secure and long term".
AUSTRALIAN TAX OFFICE UPDATE
Commissioner's super myths, facts and tips
Since the announcement of changes to super we have seen a great deal of media reporting and other information circulating in the community.
While most of it is excellent and is helping the community understand the changes, we have identified some areas of confusion.
Here are some myths, facts and tips to help you better understand the changes to super.
As new myths or issues emerge we will update this page.
If you hear of any other super myths please email us at supermyths@ato.gov.au
The myths, facts and tips
Myth: Until 30 June this year an individual can borrow $1 million to put into their super and claim the interest as a deduction.
Fact: Interest is not deductible for individuals.
However, employers can continue to claim a deduction for interest on money they borrow to pay into super funds for their employees under the special business expense deduction rules.
Tip: If you are considering borrowing money to put into your own super we suggest you seek financial advice.
Tax file numbers
Myth: I don’t need to worry about giving my super fund my tax file number because my employer has already given it to them.
Fact: Some employers may not have passed on tax file numbers to their employees’ super funds.
Tip: To avoid paying extra tax on your contributions check your super fund statement to see if they have your tax file number.
Age rules
Myth: Everybody over 60 can take their money out of their super fund tax free and keep working.
Fact: This is only true for money taken out of taxed funds. It also depends on the type of fund and how you take the money out. See Moving from work to retirement.
Tip: If you are over 60 and considering taking money out of your super but continuing to work seek financial advice or talk to your super fund.
Myth: I am over 60 and on a pension so I don’t have to lodge a tax return.
Fact: People getting a pension from taxed funds – which is most funds – and who have no other source of income will not need to lodge a tax return.
However, people with pensions from an untaxed fund, or who have income from other sources will still need to lodge a tax return.
Limits on how much you put into super
Myth: I’m turning 50 soon after 1 July 2007 so I miss out on making the $100,000 contribution to my super fund until after June 2008.
Fact: You can contribute $100,000 in the year you turn 50 and future years until 30 June 2012.
This cap applies to contributions made from your employer. Employer contributions include contributions they make to meet their Superannuation Guarantee obligations as well as any salary sacrifice amounts (that is, amounts you have agreed with your employer to take out of your salary or wages before they deduct any tax). Your employer sends this money directly to your fund.
The most common contributions this cap applies to for the self employed are personal contributions they make for which they claim a tax deduction.
Tip: From 1 July 2007 most employers can claim a full tax deduction for money contributed to funds for their employees. Also from that date the self-employed may also be able to claim a full tax deduction for their personal superannuation contributions. At the moment it is limited for these people.
Super Co-contributions
Myth: Contributions that come out of my salary or wages before tax has been taken out count towards getting the Super Co-contribution.
Fact: One of the rules for the Super Co-contribution is that you have to make personal contributions and do not claim an income tax deduction for the contribution. Most employees will not be able to claim a deduction for personal contributions they make. From 1 July 2007 the Super Co-contribution is being extended to the self employed.
Tip: You don’t need to wait until the end of the financial year to make one big contribution. You can also make small regular contributions to take advantage of the Super Co-contribution.
Myth: I never have $1,000 to contribute at any one time so I miss out on the Super Co-contribution.
Fact: You can contribute small amounts of personal contributions over the whole year.
Tip: If you are eligible, Super Co-contributions are paid into your super fund automatically once you do your tax return.
Last Modified: Monday, 16 April 2007
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HOW TO MOTIVATE & REWARD EMPLOYEES
Motivated employees are more productive and can be a significant factor in the success of a small to medium sized business. Rewarding employees is one way to increase motivation, but how can managers and business owners do it fairly and effectively?
Here are some basic principles to consider:
Motivating employees starts with motivating yourself. The attitude of the employer is almost always reflected in a business's employees. If you are stressed out, it's most likely everyone else will be too. If you're enthusiastic about your job, it's much easier for others to be also.
Another key to motivating employees is, to understand what motivates each of them, because everyone is motivated by different things. You can find this out by asking them. Make a list of three to five things that motivate each of your employees and have each of your fill out the list for themselves. Compare your answers to theirs. Recognise the difference between your impression of what you think is important to them, and what they think is important to to them.
Use reliable and comprehensive systems in the workplace to help motivate employees. For example, establish compensation systems, employee performance systems, organisational policies and procedures, etc., to support employee motivation. Also, establishing various systems and structures helps ensure clear understanding and equitable treatment of employees.
How can you create a program that motivates employees, results in a more productive staff and is administered fairly and effectively? Here are a few steps to follow:
- Establish an Action Plan
- Be Creative in Determining Rewards
- Give Employee Rewards Your Personal Touch
Article courtesy Capricorn Ignition
MTAA SUPERANNUATION UPDATE
Destination: Retirement
The story so far: Most Australian retirees currently depend upon the Age Pension for a significant proportion of their income and, for the most part, they need it. Even though the government pension system is aimed at providing benefits for those in need, up until September 2004 it was possible to place large sums into long-term complying income streams and not have this money counted under the Age Pension assets test. Many wealthy people were able to qualify for a substantial Age Pension. Since September 2004 a partial (50%) exemption from the assets has applied to complying income streams. This year, things will change again.
What changes? The value of all superannuation pensions and other income streams commenced from 20 September 2007 will be fully assessable under the Age Pension assets test.
To compensate for this, the rate at which the pension is reduced by assets above the threshold for full pensions will be halved.
Income streams that are already in place on 20 September 2007 will retain their current level of assets test exemption.
When does it apply? From 20 September 2007.
Who will be affected? Everyone starting a retirement income stream from September 2007 who has assessable assets within the future limits shown on the table below
Eligibility for part Age Pension Current assets limits Future assets limit*
Homeowner Single $334,250 $ 507,000
Partnered (combined) $516,500 $804,000
Non-homeowner Single $451,250 $624,000
Partnered (combined) $633,500 $921,000
*Approximate amount, and subject to indexation prior to September 2007.
What does it mean? There is a brief window of opportunity for people nearing retirement to commence a complying income stream before September 2007. Upon reaching Age Pension age, they will benefit from the current 50% exemption from the assets test.
This is a strategy for the long term. For example, a 55-year-old could commence a Term Allocated Pension today, even if they are still working, and pick up the benefits of the partial assets test exemption when they reach Age Pension age in 10 years’ time.
After September 2007 the choice of a retirement income stream will become easier, and it is likely many of today’s retirement income stream products will disappear from the market.
The changes to the assets test mean, that after September 2007, many more people will qualify for a part Age Pension. In addition, people who currently have their Age Pension reduced due to the assets test should receive an increase in payments.
What do I do now?
If you are nearing or already in retirement you need to assess your situation. If you are already 55, or will turn 55 before September 2007, you should seek advice now regarding the avenues that are now open to you.
To make an appointment for a free initial consultation with a financial planner, call MTAA Super on 1300 362 415.
This information was supplied by Industry Fund Financial Planning (IFFP).
Past investment performance should not be taken as an indication of future performance. This information has been prepared by the Motor Trades Association of Australia Superannuation Fund Pty Ltd (ABN 14 008 650 628, AFSL 238718), an Approved Trustee company engaged solely in managing MTAA Super for the benefits of its members. All care has been taken to ensure that the information contained in this article is correct at the time of this publication, however, neither the Trustee of MTAA Super nor its advisors accept responsibility for any error or misprint, nor for anyone acting on this information. MTAA Super provided this information as part of its ongoing commitment to educating their members and employers ________________________________________________________________
MTAA Super - Find out out more - Local representative
Mr Graham Millar
Telephone: 02 9213 4237 Facsimile: 02 9212 6889
Mobile: 0419 410 436 Email: grahamm@mtaa.com.au
Website: www.mtaasuper.com.au
FROM OUR BANKERS - mecu
climate change isn't cool There’s been a lot of talk recently regarding ‘climate change’, particularly with Earth Hour being run across Australia on the 31st March 2007. So as part of mecu's sustainability initiative we are running a series on small ways you can reduce your individual impact. Remember, one person CAN make a difference.
mulch your garden and save
Mulch protects your watered garden from evaporation by holding water in the soil, it cuts water waste by 70%. Additionally, you’ll weed your garden less, and add nutrients to the soil. If you don’t want to purchase mulch from a nursery or garden supplier, you can make your own mulch from leaves, grass clippings, newspapers, bark, wood, straw or just about any other organic matter. It can save you up to $50 a year on your water bill.
Just one dripping tap wastes more than 20,000 litres of water a year, and leaky toilets can waste from 4,000 to 96,000 litres a year. Replacing a tap washer is a straightforward process, but remember to turn the water off at the mains first or you could end up wasting a lot of water. You can check your toilets for leaks by putting food dye in the cistern. Wait half an hour and if there’s any colour in the bowl, it’s leaking. A licensed plumber can help fix this. Also, remember to try to always use the ‘half flush’ on your toilet, it can save 20,000 litres a year – that’s up to $200 off your water bill!
short, efficient showers
From as little as $15, you can purchase a AAA rated showerhead, which will save between 50,000 – 100,000 litres and hundreds of dollars on your water bill each year.
aerating taps cut wasted water in half
Washing your hands uses up to 20 litres at a time, tap aerators will cut this to 10 litres or less. They simply reduce water flow without losing pressure. You can find them
at your local hardware store, and they are easy to install yourself.
And finally, make sure you keep up the good work and continue to comply with your region’s water restrictions!
Find more tips on how to save water at acfonline.org.au and savewater.com.au.
(Source: ACF’s The Greenhome Guide [Victorian Edition] www.acfonline.org.au)
To find out what mecu is doing to help combat climate change please contact Lynda Marsden on 02 6246 5405 or visit us on the web http://www.mecu.com.au
CAMP QUALITY ESCARPADE 2007
Camp Quality's longest and most successful fundraising event - esCARpade is preparing for another massive year of celebrations, get togethers and adventures. The first event for the year is an esCARpade starting in Bathurst and crossing Bass Straight touring the Apple Isle, with a final dash to Devonport for a ride home on the Spirit of Tasmania.
For more information, please clink on the following link. http://www.campquality.org.au/help/fundraising.cfm?section=cqrally
Variety Bash 2007
Temora Aviation Museum
“Flying there on a famous
DC3 Aircraft”
Sat 30th June 2007
Cost is $495.00 per person for the day.
Which includes DC3 flight from Bankstown Airport departing at 8.30am. Tea, coffee and muffins are served prior to takeoff, with light refreshments served during flight. Entry into the Temora Aviation Museum and airshow. Returning from Temora at approx 4.30pm arriving at Bankstown airport at approx6.00pm.Food and beverages are available at Temora Aviation Museum.The DC3 has just two seats on either side of the aisle so everyone gets outstanding views and seating is limited to 28people.
People are asked to tell their friends and get a group together for a fantastic day. If unable to attend the day perhaps you might like to make a $100 donation to car 357 an entrant in this years Bash. All proceeds go towards Variety the Children’s Charity.
A non refundable deposit of $100 is required by the 4th of May and full payment must be received by the 30th of May
Enquiries can be made by contacting Phil Sargent on 0412256669 or Denis Sargent on 0418627713.
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