NEWS FROM OUR PRESIDENT
For the past 9 months, the board has been extremely busy in developing a strategic business plan for the association. One of the items identified relates to the continued skills shortage and how best to develop, manage and foster the recruitment of apprentices within all areas of our industry.
Many of you may not realise that the association was instrumental back in 1988 when the then Executive Director Mr Bruce Livingstone together with Mr. Brian O’Connor (MTA-ACT member) and the AMWU, created a company called Automotive Training Board which then established a separate company called Automotive Group Scheme Inc. In 1993 the scheme then became known as Regional Group Training (RGT). RGT looked to offer the motor industry a real training alternative to that offered by the government TAFE system. Unfortunately for various reasons, MTA-ACT withdrew from RGT’s board following it’s amalgamation with South East Region Group Training.
In September this year, the association instigated open and frank discussions with the directors of RGT, that outlined MTA-ACT board’s future plans and proposed a way forward as to how both MTA-ACT and RGT could work together to achieve the goals of both organisations.
I’m pleased to advise members, that at the recent annual general meeting of RGT the board passed a motion which installed MTA-ACT as the Chief Executive Officer of RGT. Further, it was announced that the Executive Director of MTA-ACT, Phil McGilvray would be the nominated representative to that position, whilst continuing in the role of Executive Director of MTA-ACT. The board of directors of both organisations unanimously supports this appointment.
This appointment will not detract from the day to day running of the MTA-ACT, as Phil will be ably assisted by the experienced managers of each division of RGT namely, Automotive Skills Centre, Employment ACT and Retail and Office Training.
The potential for further growth is strengthened by Phil’s involvement in the motor industry for the past 23 years and particularly his ‘hands-on’ approach to recruiting apprentices to the industry.
Both boards see this appointment will only further enhance both organisations that have enjoyed a very close working relationship in the past.
FROM THE EXECUTIVE DIRECTOR
With Christmas only weeks away, most people's thoughts are turning towards good cheer, parties and presents. Many businesses will be considering how to thank their customers and reward their employees for their efforts during the year. Yet many businesses are unaware that these gestures of goodwill may have tax implications. So what are the tax implications of that staff party or gifts for employees or for valued customers and clients?
Entertainment provided to an employee or an associate of an employee may be subject to Fringe Benefits Tax. Depending on the circumstances the business may or may not be able to claim an income tax deduction for the cost of the entertainment or any FBT liability. Entertainment provided to customers or clients are neither tax deductible or subject to FBT.
However, there is some good news! Businesses using the actual method for the calcuation of FBT can triple their expense per employee this year without incurring fringe benefits tax. That's right - the minor fringe benefits threshold went up from $100 to $300 from 1 April this year. The ATO has also changed its view to the application of the minor benefits exemption to Christmas parties and gifts. The $300 threshold now applies to each benefit provided - not to the total value of all associated benefits.
Employee Gifts
As a general rule, any gifts provided to an employee or an associate of the employee (ie family members) give rise to an FBT liability in the hands of the employer. However, minor benefits are exempt from FBT if provided infrequently and irregularly, and the value of the benefit is less than $300. It is important there is no pattern of regularity.
Customer Gifts
Thanking customers who contributed to your bottom line, you decide to give each of them two bottles of port worth $299. This gift is not subject to FBT and is fully tax deductible to you. Your customers will also not be taxed on the value of the gift.
The cost of gifts such as calendars, coffee mugs etc with your logo imprinted are not only tax deductible but they are also a great marketing too.
Christmas Parties
If you hold a party for all your employees at your business premises on a working day before Christmas there is no FBT liability but you cannot claim a tax deduction for the cost. If this party is also attended by your employee's spouses and the cost per head is less than $300, there are no FBT implications. This qualifies as a minor benefit.
If you decide to host a party for your employees at a restaurant, and the cost per head, including alcohol is below $300, there is no FBT liability. If the cost is equal to or exceeds $300 per head a taxable benefit will arise for each spouse or associate attending.
MTA OFFICE CHRISTMAS HOLIDAY CLOSURE
The MTA office will be closed for the Christmas/New Year period from 12 noon Friday 21 December 2007 and reopening Monday 7 January 2008.
Members are advised to check their stationery levels and purchase their requirements before the Christmas closure.
Helen and I wish each and everyone a very Merry Christmas and a Happy and prosperous New Year. For those traveling interstate please drive carefully and remember "STOP REVIVE and SURVIVE. We both look forward to again assisting you to meet the issues facing your business and the industry.
MTAA SUPER
Mr Graham Millar - Business Development Manager
Telephone: 02 9213 4237
Facsimile: 02 9212 6889
Mobile: 0419 410 436
Email: grahamm@mtaa.com.au
Website: mtaasuper.com.au
MTA-ACT GOLF DAY
The 19th annual MTA Golf Day was held on Thursday 15th November 2007 at the Gold Creek Country Club, and what a huge success it was!
It was a very hot and thirsty day, with the refreshments cart being the most popular cart on the course. Craig Cregan, Commonwealth Bank's Manager of Group Deals ably supported MTA's office manager, Helen Jones with the distribution of liquid refreshments and driving of the cart.
80 players took to the field and thoroughly enjoyed their golf game, sausage sizzle and dinner presentation at the conclusion of the day.
MTA-ACT would like to sincerely thank the following sponsors for their generous support on the day, especially our two major sponsors - Commonwealth Bank and CGU Motor Trades.
AAMI, ACT Office of Fair Trading, Automotive Skills Centre, Automotive Training Board, Canberra Toyota, Capricorn Society, Commonwealth Motors, Goodyear AutoCare, Lennock Phillip, OzSafe, PPG Industries, Rolfe Motor Group, Swann Insurance and TransAct.
AMENDMENTS TO THE HOLIDAYS ACT
A recent change to the Act was an amendment to the observance of Canberra Day 2008. In the past Canberra Day has been observed on the 3rd Monday in March, however as it often falls a week after the actual birthday of Canberra. it was put to the community and businesses last year to see what they thought about an amendment to change this to the 2nd Monday in March and therefore closer to Canberra's actual birthday.
It was indicated during the public consultation process that there was large support for the amendment to take place. A bill was presented to the Legislative Assembly on 8 March 2007. This bill was agreed to by the Legislative Assembly on 25 September and was effective from 3 October 2007. Therefore Canberra Day 2008 will be held on Monday 10 March.
COMMONWEALTH BANK OFFER
Are you getting 0.67% on your EFTPOS? Special EFTPOS offer for MTA members.
MTA.ACT and Commonwealth Bank are pleased to make an exclusive offer to MTA members for their EFTPOS merchant fees of 0.67% on credit card transactions, $0.12 on debit cards.
MTA has entered into an arrangement with the Commonwealth Bank to provide members with an exclusive member only deal for their credit card merchant fees.
To take advantage of this deal, please contact the MTA on 6241 6266 for an application form to be forwarded to you.
Note: You do not have to be a Commonwealth Bank customer to take up this offer.
OFFICE OF REGULATORY SERVICES UPDATE
FAIR TRADING
The ACT Commissioner for Fair Trading, Brett Phillips, has welcomed the decision of the ACT Magistrates Court to fine Fyshwick car dealer, ACT Motor Traders $2559 for displaying vehicles for sale outside their licensed area.
“This is a decision that will bring a strong warning to people and companies trading in all types of business across the ACT.
“ACT Motor Traders have been warned numerous times that the practice of displaying vehicles for sale outside their licensed area was illegal. Despite these warnings they continued the practice.
“The first reason for applauding this decision is that ACT Motor Traders have been totally disrespectful to other motor vehicle dealers. While those dealers are limited to carrying stock levels that can be accommodated in their licensed area, ACT Motor Traders were carrying extra stock that were moved off the lot.
“The other thing I like about this is that public parking to provide convenient access to surrounding traders will be freed up, and this should help a number of small businesses in the area.
“I know every business expects competition, but they do not expect to - and should not have to – compete on a playing field that is anything but level.
“Additionally, there are myriad pedestrian and traffic safety issues that can arise from illegally placed vehicles and equipment.
“A recent audit conducted by ORS found that most motor vehicle dealers continue to operate within licensed areas and that this decision of the ACT Magistrates Court reinforces that breaches of the Sale of Motor Vehicles Act are treated seriously and will attract heavy penalties.
“Any business conducting business outside their licensed or approved area should immediately look at changing their arrangements to bring their activity within their approved selling areas.”
The Executive Director of the ACT branch of the Motor Trades Association, Phil McGilvray, endorsed the sentiments of the Commissioner. “Mixed business precincts such as Fyshwick frequently generate large numbers of people and high volumes of traffic”.
“The Motor Trades Association is working with the government to ensure that all businesses operate within approved areas, as conduct in unapproved areas can lead to risky pedestrian behaviour and potentially dangerous traffic activity. I hope this decision of the ACT Magistrates Court is acknowledged and acted upon by all sorts of businesses in these areas.”
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