STAGE 4 WATER RESTRICTIONS
Currently ACTEW has requested submissions from each industry affected by the implementation of Stage 4 restrictions. Final outcomes will not be known until 22 June 2007 and a special E-News will be published specifically to advise members of ACTEW's decisions and means of receiving an exemption. Hopefully MTA-ACT will be permitted to collate members information as in Stage 2 and 3.
SUPERANNUATION CHANGES FROM 1 JULY 2008
The law has been amended to change the earnings base arrangement for superannuation. If you are using an earnings base other than ordinary time earnings (see below) to calculate superannuation contributions, you will have to start using ordinary time earnings for all eligible employees from 1 July 2008 when the new law comes into effect. For MTA members this will primarily affect two classes of employees (where members are currently not contributing superannuation based on commissions):
those covered by the Vehicle Industry - Repair, Services and Retail Award 2002, or
those in management positions who are currently not receiving superannuation contributions on commissions.
From 1 July 2008, you must use ordinary time earnings as the earnings base for all your eligible employees.
Until 30 June 2008, some employers can continue to use valid earnings bases as provided by the existing law, such as those contained in industrial awards, existing agreements with employees or fund trust deeds.
What are ordinary time earnings?
Ordinary time earnings are simply the salary or wages you pay your employees for ordinary hours of work, not including overtime. It includes over-award payments, shift allowances, commissions, and paid leave up to the maximum contributionss base for the quarter. The maximum contributions base is a maximum limit on the amount of superannuation contributions you're expected to pay for any employee, and it's subject to annual indexation.
The maximum contribution an employer has to make for any quarter in the 2006-07 year is $3,171.60. This is 9% of the quarterly maximum contributions base of $35,240.
As you can see from the above definition, commissions are the major inclusion in the area of coverage for superannuation contributions.
How can I make these changes?
There are two relatively simple ways of making the changes:
- simply make contributions of 9% on existing commissions, but of course this increases your remuneration costs. This will increase your WorkCover premium costs, as superannuation contributions are 'remuneration' for these purposes; or
- split the existing commission into 109 parts, and pay 100 parts to the employee, and contribute the other 9 parts to the employee's superannuation fund. Putting this another way, calculate the new superannuation amount due to an employee using the formula 100/109 of the current superannuation amount.
What do I need to do?
Before 1 July 2008 you will need to:
review the earnings base that you are using for superannuation contributions;
if you are not currently making superannuation contributions on commissions, then you will need to make changes to ensure that this happens on or before 1 July 2008.
Although the changes take effect f rom 1 July 2008, you can introduce the changes ay any time. However, you will need to give your employees covered by the Vehicle Industry - Repair, Services and Retail Award 2002 at least one week's notice of any change (cl 42(g)), or any longer period provided by the employee's commission agreement or contract of employment.
MTA acknowledges the ATO's article at http://www.ato.gov.au/atp/content.asp?doc=/content/19818.htm&page=27 as a source for this article.
EMPLOYMENT RELATIONS UPDATE
Members FAQ - ANNUAL LEAVE LOADING
Annual leave loading is paid at the rate of 17.5% on eligible payments of annual leave to employees engaged under awards. Below are responses to the most commonly asked question about annual leave loading and how it applies to your employees.
Annual leave loading and termination
Those members who terminate an employee who is under the Clerks (ACT) Award for any reason other than serious and willful misconduct who has not taken all of the annual leave to which the employee has become entitled then the employee shall be paid a loading of 17.5% for the period not taken. Where an employee resigns it is not necessary to pay annual leave loading.
Those members who terminate employees, or where the employee resigns under the Vehicle Industry Repair Services and Retail Award shall not be liable to pay a loading on any portion of unused annual leave.
Annual leave loading and superannuation
Superannuation does not need to be paid on annual leave loading.
Annual leave and redundancy
When a position held by an employee who is employed under the Vehicle Industry Repair Services and Retail Award is made redundant, there is no entitlement for annual leave loading to be paid on any unused annual leave.
For clerical employees whose position has been made redundant, members are required to pay annual leave loading for an accrued leave to which the employee has become entitled - not on pro-rata annual leave.
Annual leave loading and taxation
The first $320 of annual leave loading in any financial year is tax free. Tax should be withheld from annual leave loading for any amounts paid to the employee above $320 or if the employee is not claiming the tax free threshold.
Annual leave loading and award free staff
There is no mandate for members to pay their award free staff (i.e. managers) annual leave loading, however, it is possible to negotiate annual leave loading to be included in the contract of employment as part of the total remuneration package.
OFFICE OF FAIR TRADING UPDATE
Be vigilant at the Checkout
The ACT fared better in the 2007 National Electronic Scanning Audit than it did in 2006.
A spokeman for Fair Trading said that of all the items scanned by Fair Trading Inspectors, 89 per cent scanned correctly. In 2006, 87 per cent of items scanned correctly.
All State and Territories participated in the audit which is conducted annually and, overall, the ACT fell within the middle range. Unfortunately, the greatest discrepancy between the scanned price and the shelf price occurred in the ACT where an item was overcharged by $40.
Similarly to last year, the 2007 audit focused on service stations, pharmacies, hardware stores and sicount and variety stores. Variety stores across Australia had the lowest level of compliance.
Inspectors found that errors did not appear to deliberate. In fact, while some inaccuracies were against the consumer, many were also in the consumer's favour. Nonetheless, consumers are urged to check their dockets carefully and let the trader know if there has been a scanning error.
Sometimes consumers may not check their docket until they get home from shopping and then it is often inconvenient to go back to the store. If possible, consumers should check their docket after they leave the checkout so they can have the error rectified immediately. This will also send the message to stores that Canberra Consumers are shop savvy by, quite rightly, expecting to pruchase goods at correct prices.
If a store is unwilling to rectify a scanning error, or a consumer encouters a store with consistent errors, they should contact Fair Trading on 6207 0400.
MTAA SUPER - Find 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
STRONGER LAWS FOR THE SAFER RESTRAINT OF CHILDREN
Draft new laws will provide a safe pathway from rear child seats to boosters and adult seatbelts.
Under a draft proposal released today by the National Transport Commission (NTC), children up to 6 months old must be restrained in a rearward facing infant capsule; then a forward facing child seat until the age of 4; and a booster seat from 4 to 7 years old.
The review responds to calls from road safety experts and the community for tougher minimum standards.
Current laws require children to use a suitable approved child restraint or adult seatbelt that is properly fastened and adjusted. Compliance generally relies on the interpretation of educational guides.
According to Dr Jeff Potter, the NTC’s Senior Manager–Safety, 500 children up to the age of 10 are killed or seriously injured every year in car accidents, with 2,300 sustaining minor injuries. He said new age-based minimum standards, if approved, would improve public understanding and reduce injuries.
“While many parents and carers strive to do the right thing, the research shows children are moving to bigger seats too early. The new laws will provide better guidance informed by the latest available technology, research and world’s best practice,” Dr Potter said.
Public comment on the draft proposal closes on 29 June, 2007. You can download the report here: Recent Reports Issued for Comment
The report also includes proposed Australian Road Rules amendments clarifying give-way provisions at roundabouts and pedestrian safety at level crossings.
NEW ONLINE CONSULTATION SITE FOR SMALL BUSINESS
Members are advised of a new website designed to improve consultation between the Government and small business. The site was launched at the National Small Business Forum held in Canberra in March.
The site allows businesses to be consulted about new or existing regulations and is aimed at reducing the burden of red tape through early consultation. The site advises businesses about proposed regulations and if there's a problem with a regulation, or there's a better way to do it, small business can consult with the Government.
The new site is part of the Government's E-business strategy and is at www.consultation.business.gov.au
ISS FACILITY SERVICES
- ISS is located in the ACT and surrounding areas. We have just introduced rental floorcare into the range of products we are offering alongside Pest Control and Washroom services .
- ISS have an exclusive range of Floorcare offering company logo mats, that we are now offering with our complete range of Washroom and Pest Control Services.
- ISS is offering MTA customers a 15% discount on over all packege for the month of June & July.
- For a free quote on any of our services please call Brad Sibraa on 0413 122960 or Nina Sandow on 0413 122986
AUTO TEAM AUSTRALIA
The new force in Motor Industry Accounting
Auto Team Australia is a group of independent accountancy firms servicing the motor industry in Australia.
Our network enables us to service single site operators through to major multiple site dealerships nationally. Shared experience with regular affiliate updates ensures quality service delivery, personalised local service and the most up-to-date advice.
Contact Secretariat
Level 21, Riverside Centre
123 Eagle Street
Brisbane, QLD 4001
Telephone: 07 3211 9500
Email: enquiries@autoteamaustralia.com.au
www.autoteamaustralia.com.au
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