|
FROM THE EXECUTIVE DIRECTOR'S DESK 
This will be my last E-News contribution before I finish with MTA. Although already said, I again take the opportunity to thank each and every member of MTA.ACT for the kindness and support they have shown me over my time in the chair.
A very special thanks must go to Helen who has been both workmate and friend and I can not express in words how grateful I have been to have her as a sounding block.
At the time of writing, the MTA Board has not made a decision on a replacement, but I am confident they will do so in the very near future and to that end I have reviewed on behalf of President, Peter Taylor, a number of candidates and have made a recommendation accordingly.
The day to day operations may be slower for a couple of weeks, but the overall operation of MTA will not suffer. As some of you would be aware Helen has been kind enough to work a couple of short days during the week and she has agreed to do so for a few more weeks. She has made it clear this is not a long term commitment because as she says 'getting up when you like is great'!
With regards to representation at MTAA, your President, Peter Taylor has always been the appointed officer, so as such things won't change.
I willl remain on a number of committees and boards that the Executive Director normally sits on until such time as my replacement starts. Your new Executive Director will be fully briefed and I will remain available to provide all the help needed.
Long term MTA members will need to develop a greater understanding of HR and Industrial Relations, with this in mind, I have been working with Arthur Spottiswood of Chamberlains Law to provide training and development for members by way of industrial seminars. In coming months, Arthur will be providing and presenting a seminar on Workplace Relations and the new Fair Work Act. These seminars have been run very successfully for the HIA and are recommended to all members of the MTA.
I commend the new members of the Board to you, they are a dymanic group with a genuine interest in your industry and will bring new blood to the boardroom. Again, many thanks.
BREAKING NEWS!!
As members would be aware, earlier this year we were advised that there would be a need to relocate the MTA offices due to redevelopment of the Downer site. Recently we were advised that the decision to redevelop had been put on hold for some time.
RGT had offered us space in their new complex at Wanniassa, an offer that was not only timely, but generous. Given there is now no need to relocate for sime time, the MTA Board has decided to stay at Downer for the near future. Although RGT had agreed to very favourable terms and conditions for the relocation, there was still to be a considerable cost to MTA. Removal costs and infrastructure costs are now eliminated - why spend money if the need is not there.
Over the coming weeks there will be minor changes (ie fax number) but in general nothing else will change.
It is appropriate to thank Phil McGilvray and the Board of RGT for their original offer.
Mobile phones in the workforce
Mobile phones are so much the norm nowadays that few think about the impact on their business or life style until something goes wrong. We have all been in a supermarket or shop where either the customer or the salesperson is talking on their phone. The customer we don’t care about other than we don’t really want to know who did what with whom and where and when.
We tend to get a little annoyed when we want to be served and the same conversation is taking place with the salesperson and who knows, all we know is we would like some service. Ever thought what is happening in your business if your staff are the ones who are discussing the football, a night out or who shot through.
The use of mobile phones in the workplace is possibly costing industry unknown thousands of dollars in unproductive time and lost customers. Many larger and some smaller organisations are now considering the on-going use of mobile phones in the workplace by the employee.
Ever thought where a staff member's mind is when they are on the phone, one thing is for sure it’s not on the job. Imagine a forklift driver who takes a call whilst lifting a pallet into place or the mechanic who is bolting a wheel on. It’s not the immediate problem but the potential one and the accident that could and will happen later that should be your concern. Can you afford to not review the use of mobile phones in your workplace? Many workplaces are now working on a mobile phone policy, it will be how you implement and enforce it that will decide the success or failure.
To walk in one morning and telling the workforce “NO MORE PHONES” will probably court disaster to simply suggest that there may be an issue will receive no support either.
To work, you will need to explain to your staff why you are introducing the policy, expand on the potential issues and why as a business you can’t afford the risk. Highlight to staff their duty of care, and, the potential impact on them should an accident occur as a result of their lack of concentration. Most of all, put a firm policy in place and put it in writing explaining the ramifications of staff not adhering to the policy, it may appear tough but when an employee is sent blind because he answered his phone instead of looking at what he was doing and received a major flash burn it won’t be so tough.
You can’t stop staff using their phones in their time but in your time it must be considered. From companies that have stopped mobile phones on the shop floor the general feedback is that it wasn’t popular to start with but when staff understood why, they were happy. It is important to explain to staff that you will fulfill the requirements to ensure that they are not in any way disadvantaged should an emergency arise, family can still reach them through your office phone but point out picking up a pint of milk on the way home is not an emergency.
A copy of a workplace policy is available from the MTA on request.
CAN YOU CLAIM TRAINING INCENTIVES?
Many members have over recent years invested in training for apprentices and have qualified for financial subsidies.
It came as a surprise to find out that many employers have never claimed the fees owed to them and a considerable amount of money is sitting in limbo.
When we asked why, the simple answers appeared to be that employers had either forgotten they had qualified, had just not bothered or in bigger organisations had left it with the payroll office to claim.
Unless you have an over abundance of spare money it would pay you all to check if you can claim.
EMPLOYMENT RELATIONS UPDATE
Discipline Procedure - Role of the Support Person
Failure to allow a support person can lead to an unfair dismissal claim.
An employer must ensure that an employee is offered a 'support person' when instituting a formal disciplinary procedure. Formal disciplinary procedures are used to manage issues such as poor performance or misconduct of employees. Disciplinary meetings with employees may lead to formal written warnings or termination of employment. At these stages in the disciplinary procedure a support person should be offered to an employee irrespective of whether or not a business employs more than 15 employees.
Who can be a support person?
Whilst this list is not intended to be exhaustive, a support person can be a shop steward, union official, workplace employee representative, lawyer, family member, friend, relative or work colleague. A support person cannot act as a spokesperson or advocate for an employee during a disciplinary/termination meeting or answer questions on behalf of an employee. However, the employer should allow breaks, if requested, so that an employee and the support person can discuss any issues that arise during the meeting.
If it can be domonstrated that an employer unreasonably refused an employee the opportunity to have a support person during a formal disciplinary/termination interview, then there will have been a failure to comply with the procedural process under the new unfair dismissal regime. It would be difficult to defend an unfair dismissal claim in these circumstances.
Availability of hard copy of Vehicle Manufacturing, Repair, Services & Retail Award 2010
Members are advised the MTA finally received hard copies of the above award. A copy will be available to all members on request.
Employers must ensure that copies of this award and the National Employment Standards are available to all employees to whom they apply either on a notice board which is conveniently located at or near the workplace or through electronic means, whichever makes them more accessible.
Payroll and Record Keeping Requirements
The 2010-2011 financial year has now begun, so this month provides a perfect opportunity to check that payslips and employee records are in order. Below is an outline of what must appear within employee records and employee pay slips. A payslip and record keeping checklist is also available on ERIS for subscribed members.
Employee Time and Wage Records
The following must be included within employee records that detail their type of employment, hours, rates of pay, leave, superannuation and (if applicable) termination details. Members must ensure that they keep these records for a period of at least 7 years.
Type of Employment, Hours and Rates of Pay
Employers need to include the following:
• The name of the employer and employee;
• The start date of the employee;
• Whether the employee is employed on a full time, part time or casual basis;
• Whether the employee is engaged on a permanent or temporary basis;
• Applicable bonuses, loadings, allowances, penalties, incentives and any other entitlements that apply to the employee;
• Overtime hours worked, any relevant overtime penalty rates or loadings that apply and when they started and finished working overtime;
• Hours worked if engaged on a casual or part time basis and guaranteed a basic periodic rate of pay;
• If the employee’s work hours have been agreed to be averaged by the employer and employee, a copy of the agreement must be kept;
• Any electronic or printed copies of payslips issued to the employee whilst employed.
Leave
Employers need to include the following:
• The employee’s leave accrued and details of any leave taken;
• The employee’s current balance of leave;
• The details of any leave that was or will be cashed out, including the written agreement to do so.
Superannuation
Employers need to include the following:
• The amount of superannuation paid;
• The pay period for which superannuation was paid;
• The date superannuation was paid;
• The name of the employee’s superannuation fund.
Termination
Employers need to include the following:
• Whether the employer or employee terminated the employment contract;
• The name of the person who terminated the contract of employment;
• Whether the termination took place by consent, with notice, summarily or in another way.
Employee Payslip Requirements
The following must be included on an employee’s payslip. A copy of payslips issued to the employee should be kept by the employer for at least 7 years and must be issued to employees within 1 working day of their pay day. The payslip must include the:
• Employer’s name (eg. trading/company name);
• Name of the employee;
• Payment date;
• Amount of gross and net wages paid;
• Applicable loadings, allowances, bonuses, incentive-based payments, penalty rates or other separately identifiable entitlements paid;
• Hourly pay rate (if paid an hourly rate) and the number of hours worked;
• Salary paid (if the employee is on an annual rate) and the rate paid as at the last day of the pay period;
• Applicable deductions made (if any), including the details of the deduction and the amount. For example, if an amount was deducted for the purposes of superannuation, details on the payslip should outline the name, number, fund and account the deductions were paid into.
ATO UPDATE
ATO - Compliance Program 2010-11
On 8 July 2010, Tax Commissioner Michael D'Ascenzo released the Australian Tax Office (ATO) Compliance Program for 2010-11. The Commissioner annnounced that refund fraud, the cash economy, employer obligations, wealthy Australians and tax secrecy havens will become some of the top priorities for the ATO ths financial year.
Commissioner D'Ascenzo also made specific references to small businesses that may be of interest to Members. He announced that the ATO will focus heavily on employers to sensure they lodge their business activity statements on time, meet their pay as you go withholding obligations and make correct super contributions to employees. In addition, the ATO will undertake 800 compliance reviews of business in industries showing a pattern of non-compliance,k including the automotive repair services sector.
The Commission reaffirmed the ATO's commitment to assist some businesses that are still experiencing financial hardship as a result of the economic downturn. He stated that the ATO will extend the measures announced last yeat that help small businesses, including arranging flexible payment arrangements or interest-free payments deferrals for business having difficulty meeting their tax debts.
To view a full copy of the Report, please see http://www.ato.gov.au/content/downloads/cor00248103_NAT7769.pdf
MTAA SUPERANNUATION 
MTAA Super Pensions
Whether you’re looking forward to a comfortable retirement or you’re planning to work forever, there are smarter ways to manage your savings once you reach age 55 or over. It’s never too early to start planning.
With the MTAA Super pension products, you can simply transfer your super into an MTAA Super Transition to Retirement Pension or an MTAA Super Pension.
HOW DOES AN MTAA SUPER PENSION WORK?
Once you reach your ‘preservation age’- which is 55 for people born before 1 July 1960- you are able to transfer your savings into a pension account that is invested by the Fund in the same way as your super. This means you have the choice about where your pension is invested.
A major difference between a super account and a pension account is that any earnings on your pension account are tax free. Once you reach the age of 60 your pension payments and lump sums from your pension are also completely tax free. If you are under 60 your pension payments receive concessional tax treatment.
Once you begin a pension you cannot add to the initial capital with contributions, although you can maintain a super account for contributions (if you are eligible to make them) as long as your account balance is more than $2,000.
ARE YOU OVER 55 AND STILL WORKING?
If you are over 55 and still working, a Transition to Retirement Pension could offer you a very tax-effective income stream from your retirement savings while you continue to contribute to your super account.
These contributions can be Superannuation Guarantee contributions made by your employer, as well as salary sacrifice contributions, which are both taxed at the concessional rate of 15 per cent (within limits). You can also make your own voluntary after-tax contributions. This means you can either reduce the number of hours you are currently working and augment your income with a Transition to Retirement Pension, or step up your retirement savings by salary sacrificing more, which offers tax benefits for your savings.
The Transition to Retirement Pension has restrictions on how much you can withdraw- you can’t take more than 10 per cent of your account balance as payments in any financial year. However, you can cease this pension account and roll it back into your super account at any time. Plus, when you turn 65 or retire from the workforce, your Transition to Retirement Pension converts to an MTAA Super Pension.
THE MTAA SUPER PENSION
Once you have either reached your preservation age and retired from the workforce completely, or reached 65 (even if you are still working), you become eligible for an MTAA Super Pension.
You can choose the frequency and amount of your payment as long as the amount is above the government-set minimum withdrawal. In response to the global financial crisis the government halved the minimum withdrawal amount for the 2009-10 financial year. This drawdown relief has now been extended for 2010-11. You can also take as many lump sums as you like, provided the minimum is $5,000 and at least $10,000 remains in your account. You can even commute (close) your pension account and take it as a lump sum- unlike the Transition to Retirement Pension.
On your death your pension can continue to be paid to a dependant, subject to government- prescribed restrictions, or be paid as a lump sum from your pension account.
PLAN FOR A SMARTER RETIREMENT TODAY
For more information about MTAA Super’s pension products, please visit the MTAA Super website, www.mtaasuper.com.au, or call our Customer Service Centre on 1300 362 415 and ask for a copy of the MTAA Super Pensions Handbook.
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.
|
