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FEDERAL GOVERNMENT'S $145.6 MILLION PACKAGE
Securing Apprenticeships and Traineeships
With the current national unemployment rate expected to rise, Deputy Prime Minister Julia Gillard has announced a $145.6 million package, called Securing Apprenticeships and Traineeships, offering employers further payments on top of the existing training subsidies. This package is pre-empting the expectation that many apprentices will be laid off in times of economic difficulty, as training is often the first to be reduced in times of low cash flows. Julia Gillard made note of the statistic from the economic downturn in the early 1990s where the number of Australian apprentices reduced by 20,000. Securing Apprenticeships and Traineeships attempts to ensure the past will not repeat itself by taking action to secure Australian apprentice jobs.
Under the $145.6 million package, employers or group training organisations can receive up to $2800 for recruiting apprentices who have been "laid-off" before completing their apprenticeship. This will include a payment of $1800 as long as the employer keeps the apprentice for 12 weeks - equivalent to a $150 weekly subsidy, and paid at the 12 week point after recommencement.
In a strategy to encourage employers to retain their apprentices, an additional payment of $1000 will be provided on the successful completion of an eligible apprentice. The Australian Apprentices government website states that qualifications at the Certificate III/IV leading to an occupation in skills shortage are eligible. These are listed on the National Skills Needs List, which can be accessed here: http://www.australianapprenticeships.gov.au/whatsnew/NSNL_announced.asp
Some occupations listed on the National Skills Needs List that may be of interest to our members include:
Automotive Electrician, Fitter, Metal Machinist (First Class), Motor Mechanic, Panel beater, Vehicle Body Maker, Vehicle Painter, Vehicle Trimmer and Welder (First Class).
The payments will be backdated to 1 January 2009 and will continue until 31 December 2010. These payments are on top of the existing incentives, including the $4000 paid to employers with apprentices completing Certificate III and IV qualifications.
EMPLOYMENT RELATIONS UPDATE
Overtime and Crib Breaks
Subclause 24 (j) Crib Time in the Federal Vehicle Industry Repair, Services and Retail Award 2002 relates to employer obligations regarding breaks when they require employees to work overtime. Please note that the overtime clause does not apply to vehicle salespeople.
Depending on the amount of overtime that is worked, the Award states that employers may be obligated to provide a paid crib break to the employee:
- Less than 1.5 hours overtime worked - no entitlement to a crib break.
- More than 1.5 hours overtime worked after working ordinary hours - entitled to a crib break of twenty minutes paid at the ordinary rate.
- After each 4 hours of overtime worked - entitled to a crib break of twenty minutes without deduction of pay, provided that the employee continues work after such crib break. However, if employers require any employees to work over four hours overtime after working ordinary hours, we recommend that you contact the MTA to discuss the broader context and issues with having employees working these hours.
Crib breaks also apply to day workers who work overtime hours on a Saturday after not more than 4 hours worked. The first crib break for Saturday employees, if occurring between 10.00am and 1.00pm., will be paid for at the ordinary rate.
The timing of the crib break does not necessarily have to be at the beginning of the overtime period. The Award states that an employer and employee may agree to any variation of this subclause to meet the circumstances of the work, on the condition that the employer shall not be required to make payments for crib time in excess of twenty minutes.
For example, an employee working two hours overtime after ordinary hours may agree to work through until the end of his/her overtime period without taking a crib break and leave - but the employer will still be obligated to pay the employee, at the ordinary rate of pay, an extra twenty minutes for the crib break. In other words, the employee takes the paid 20 minutes crib break after working the required period of overtime.
OFFICE OF REGULATORY SERVICES UPDATE
FAIR TRADING
The Motor Vehicle Service and Repair Industry Code of Practice regulates the motor vehicle service and repair industry in the ACT. The Code was introduced in 1999 with the aim of:
- promoting fair trading in the marketplace
- improving the quality of motor vehicle repairs
- letting consumers and traders know clearly what is expected of them.
You can obtain a free copy of the Code from the ORS’ website at www.ors.act.gov.au.
Repairs include:
- examining or assessing a vehicle
- detecting faults, dismantling or assembling a vehicle
- servicing or maintenance of a vehicle
- replacing, adjusting or painting parts of a vehicle
- towing to premises in anticipation of performing any of these repairs.
The Code requires principals (owners) of the service and repair industries to register with the ORS.
Registered businesses can be identified by the ORS registered repairer decals and certificates.
The Motor Vehicle Service and Repair Industry imposes the following obligations on principals registered
under the Code:
- all work must be performed in a safe, ethical and professional manner
- the work must be completed in a reasonable period of time, having regard to the circumstances
- appropriate components, systems and parts are to be used
- repairs are only undertaken where the principal has the equipment and expertise necessary to carry out the work satisfactorily
- employees are capable of performing the repairs they undertake
- the principal is personally responsible for the quality of the repairs performed by an employee or by
- a subcontractor
- the customer should be provided with a signed copy of the rights and responsibilities of both parties
- as set out in Schedule A of the Code, if the cost of repairs is expected to exceed $150 (only needs to
- be provided once)
- the customer should be given a written estimate of the cost of repairs, if the cost of those repairs is
- over $150
- the customer’s written authority to perform repairs must be obtained, if the cost of repairs is over $150
- arrangements must be made as to how both parties may be contacted during the course of the repairs, if the cost of the repairs is over $150
- a sign must be displayed on the premises alerting the customer to the Code and that the business is registered under the Code.
Advice to Consumers
To prevent problems from arising, the ORS recommends that a repairer is carefully chosen. Where possible, seek recommendations from trusted sources.
Consumers need to consider that repairers can be very busy. If you need to discuss a repair issue, call the repairer to find a convenient time.
Ask the repairer to explain any faults clearly without using technical jargon, and check the terms of payment before committing to a repair.
Keep a record of repairs and services carried out on your vehicle as these may support any warranty or repair disputes.
Customers should also note that a written estimate is not a quote or a diagnosis.
- Consumers’ Responsibilities Under the Code
- consumers should leave their contact details with repairers so they can be kept informed of the work status and authorise any further repairs
- consumers should read the provisions of Schedule A of the Code on display at registered repairer businesses. A signed copy can be obtained from the repairer by request.
- consumers should describe to the repairer any known problems and faults of the vehicle, as some repairers may charge for work undertaken to ascertain the full extent of the required repairs
- if authorised repairs are agreed to and performed but not paid for, the repairer has a legal right to hold the vehicle until full payment is made
- the repairer may charge reasonable storage fees if the vehicle is not collected within an agreedperiod of time. The consumer should be made aware of these possible fees before they enter into an agreement for repairs
- consumers can withdraw their consent to repairs being performed or not authorise further work after a diagnosis has been done. In this case repairers may charge reasonable costs for the diagnosis and reassembling of the vehicle
- consumers should be aware there may be delays, beyond the control of the repairer, in obtaining parts particularly for specialised or uncommon vehicles.
The Code has been designed to reduce confusion related to the cost or adequacy of repairs. By following the procedures set out in the Code the chances of confusion or misunderstandings will be minimised.
If a dispute about a repair does arise, the Code requires the principal to make every reasonable effort
to quickly and fairly resolve any consumer complaint.
Further advice about the responsibilities of repairers and consumers under the Code can be obtained from the Office of Regulatory Services on phone 6207 3000 email fair.trading@act.gov.au or visit the
ORS website at www.ors.act.gov.au.
IMMIGRATION UPDATE
Changes to the Migration Program and processing of General Skilled Migration Processing
In December 2008 the Minister for Immigration and Citizenship announced a more targeted approach for the 2008-2009 Skilled Migration Program which took effect on 1 January 2009.
On 16 March 2009, the Minister announced a cut of 14% to the permanent skilled migration intake for the 08/09 program year, from 133,500 to 115,000 places. Numerous trades were removed from the Critical Skills List (CSL) including motor mechanic, the only motor trade occupation included on the original list.
What does this mean for the Motor Trade Industry?
Employers who cannot find skilled workers locally are still able to sponsor workers for permanent skilled migration visa such as the Employer Nomination Scheme or the Regional Skilled Migration Scheme and will receive priority processing of their applications even if the occupation is not listed on the CSL. Therefore, employers in the motor industry looking to permanently nominate workers with motor trade skills can continue to do so.
The Federal Government has announced changes to the subclass 457 visa program with the aim of continuing to provide industry with skills while not undermining local training and employment opportunities. Seven measures have been announced and more information about the measures and changes is available from: http://www.immi.gov.au/skilled/general-skilled-migration/what-new.htm
On the statistical side, motor mechanic is still one of the top 15 occupations for visa grants in the subclass 457 program with 710 visa granted as at 28 February 2009. This compares to 560 visa grants as at 29 February 2008. A total of 38,920 subclass 457 visas were granted to primary applicants as at 28 February 2009.
MTAA SUPERANNUATION 
Learn about your Super this Year
Make this the year in which you gain a full understanding of how super works- come to an MTAA Super Seminar near you.
With everything that’s happened in the economy over the past year, have you ever thought to yourself, I don’t know how investments work- but I wish I did? Super has a reputation of being difficult to understand, but it really doesn’t have to be. The seminars will help you understand everything you need to know about saving for your retirement.
This year MTAA Super are again holding presentations across Australia, explaining how investments work and offering tips on making the most of your own situation at any age to maximize your superannuation in retirement. The seminars 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.
The seminars also explain the features and benefits of MTAA Super’s Two Portfolio Strategy. You should come away from the seminar with a better understanding of how taxation works on super and how you can make your savings even more effective through salary sacrificing or voluntary contributions.
You’ll also gain an understanding of how investment markets ‘cycle’ and how the construction of an investment portfolio can affect returns over the long term. Plus, you’ll learn about the opportunities available to you to maximize your super when you retire.
Its up to you how you live during the years after you stop working- and the earlier you start planning, the easier it will be to get where you want to be. There has never been a better time to book yourself into one of MTAA Super’s easy to understand seminars.
You can find out more about the dates and content of the MTAA Super seminars by visiting www.mtaasuper.com.au or by calling 1300 362 415.
MTAA Super Workplace Presentations
For employers, MTAA Super Business Development Managers (BDMs) would like to better appreciate what your employees want to know about super. More than even before our members are hearing about financial markets on the news, so making sure they understand how super works is a priority for us as your workplace Fund.
It’s easy to arrange a presentation in your own workplace, and each presentation is tailored specifically to your staff. Just tell your 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 is a range of topics that can be discussed, so talk to your BDM about what your employees are interested in.
We believe that information about super is more important than ever, and we are at your service to make it as easy as possible for you and your employees.
For more information or to obtain contact details for the BDM in your area, please visit the website www.mtaasuper.com.au or contact us on 1300 362 415.
The information in this article is provided by Motor Trades Association of Australia Superannuation Fund Pty Ltd (ABN 145 008 650 628 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. 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.
ATO UPDATE - FUEL TAX CREDITS
Make the most of your fuel tax credits entitlements
Do you claim fuel tax credits for your business fuel expenses?
There are different rates that apply depending on how you use fuel in your business. Follow these steps to correctly claim fuel tax credits on your business activity statement (BAS).
Step 1: Claim for eligible fuel types, usage and business activities
Work out how many eligible litres of fuel you have acquired for each business activity that has a different fuel tax credit rate.
Step 2: Apply the correct rate
The correct rate is:
- 17.143 cents per litre for fuel acquired on or after 1 January 2009 and used in vehicles with a GVM greater than 4.5 tonne travelling on a public road
- 38.143 cents per litre for fuel used in specified activities that have been eligible since 1 July 2006
- 19.0715 cents per litre for fuel used in other activities, machinery, plant and equipment.
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- Step 3: Calculate your fuel tax credit amount
You can work out your fuel tax credits using the fuel tax credit calculator or manually using this formula:
Litres of eligible fuel x Relevant fuel tax credit rate = Fuel tax credits
Fuel tax credit calculator
The fuel tax credit calculator is an easy online tool that calculates your entitlement. You can find this tool on our website under ’Rates, calculators and tools’ or at www.ato.gov.au/fuelschemes
Write your calculated amount at label 7D on your BAS.
Heavy diesel vehicles and environmental criteria
If you use a heavy diesel vehicle on a public road and your vehicle is manufactured before 1 January 1996, you must meet one of the environmental criteria to claim fuel tax credits. For example, you can do this by servicing your vehicle in line with the manufacturer’s maintenance schedule or endorsed generic schedules and keeping your records.
Keep good records
Keep accurate records of your fuel acquisitions and how the fuel is used in your business activities, also keep records of your calculations.
For more information
To check the current rates or for more information on calculating fuel tax credits visit www.ato.gov.au or phone 13 28 66 between 8.00am and 6.00pm Monday to Friday.
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