Whilst introducing the presenters at the recent Carmageddon – Leading the Way symposium on digital and technological change, my mind shifted to the leadership invested in services and benefits to help members with business costs. A constant theme common at each of MTA Queensland’s divisional meetings is the ‘cost of doing business’. Our response is to advocate these views to government, agencies and work with corporate partners on benefits to assist members with their business endeavours.
In July’s Viewpoint, I drew attention to our leadership in establishing a corporate partnership with Gambit Solutions which acts as a vendor neutral broker specialising in procuring electricity and gas rates on behalf of groups and businesses. Under the arrangement, some members have achieved significant power cost savings. The latest report to me indicates that, increasingly, members with diverse energy needs are contacting Gambit Solutions to discuss their power requirements and costs, and have achieved savings. Additionally, we’ve been discussing the provision of a similar scheme for printing outlays for members. Initial consultations indicate that there can be substantial printing savings. I’ll have more to say about this initiative in next month’s Viewpoint.
Similarly, corporate partner OurAuto has an offer for members on its Scan-Tool, with savings in upfront costs coupled with special purchasing arrangements. The OurAuto Scan-Tool is an automotive fault diagnostic tool based on the android system. It is software-enabled, and provides auto-detection; top range health reports and has regular monthly updates. Members interested in the Scan-Tool can go to OurAuto’s details are on our member’s benefit’s web page.
At the invitation of Senator James McGrath, Group Chief Executive Officer Dr Brett Dale and I met with him to confer on red tape and economic regulation. In particular, the Senator was keen to discuss practical and achievable suggestions for regulatory reform. We were pleased to do so as it provided an advocacy opportunity on issues important to members. One of these was to detail MTA Queensland’s leadership on the digital and technological transformations through the Carmageddon symposiums.
We stressed the need for harmonisation of regulations across all jurisdictions in the context of new generation of technology being introduced such as plug-in electric and autonomous vehicles and associated infrastructure.
We highlighted member’s frustration and time consumed with the Australian Taxation Office’s (ATO) regulatory and compliance requirements. We did acknowledge the ATO’s simplification of the tax and superannuation reporting obligations through Single Touch Payroll, myDeductions, and Superstream
but on-going reforms was needed.
On the issue of unfair dismissals under the Fair Work Act, we advised the Senator that this was an issue for members both in time and cost.
We advocated that the process should be streamlined. We proposed that unfair dismissal claims, where a jurisdictional objective is made on the basis that the dismissal complied with the Small Business Code, should be dealt with in the first instance by the Small Business and Family Enterprise Ombudsman (SB&FEO). This would require the SB&FEO to be delegated the responsibility for unfair dispute mediation. This discussion was well received. The feedback provided will contribute to ideas that ultimately will incentivise State and Territory Government to work with the Commonwealth to cut red tape.
The Federal budget included $300 million for this purpose.
Here at MTA Queensland, I’ve noted the considerable increase in domestic parcel post costs and it appears so have small/medium enterprises (SMEs) which provide online shopping to customers. It seems Australia Post provides volume discounts to big customers which send large amounts of parcel mail. This disadvantages SMEs and is a barrier to competition. I note that the SB&FEO is considering options to level the playing field for small businesses to compete fairly with big business when sending/posting goods in Australia.
Members would have received July’s Tax and Super bulletin which includes the ATO’s target areas that
it will focus on in tax returns. It is on the website, if you missed it. Additionally, notification has been received that the Federal Government will introduce a Bill into Parliament that will ensure an individual’s salary sacrifice contributions do not reduce their employer’s superannuation guarantee obligation. Essentially, it is to improve employer’s compliance with their superannuation guarantee obligations. In 2015-16, employers paid over $89 billion in superannuation contributions for their employees.
To re-emphasise some previous good news, the corporate tax rate for businesses with an aggregated turnover threshold of $10 million is now 27.5 per cent – the lowest it’s been since 1940. And don’t forget the instant asset write-off has been extended by 12 months – the continuation of which we sought in our 2017 pre-budget submission to the Australian Treasury.
Divisional News
Each of MTA Queensland’s eleven divisions is attending to its constitutional requirements with scheduled annual general meetings, report preparation and election of office bearers. Nominations for office bearers – Chairman, Vice Chairman and Secretary for the Divisions of Automotive Remarketing, Engine Re-Conditioners, Service Stations, Rental Vehicles and Auto Parts Recyclers – opened on 26 July with mid-day, 9 August as the closing date. The ballot of election bearers is under the auspices of the Queensland Electoral Commission.
Advocacy
Office of Fair Trading (OFT) personnel have been moving office, hence some delay in our scheduled meetings, but with their move complete, liaison has recommenced. For a pleasant change, OFT officers came to the Sir Jack Brabham Automotive Centre of Excellence. Brett and I warmly welcomed them and we had a comprehensive agenda on matters important to members. These included the ongoing issue of motor dealers requiring a second-hand dealer’s licence to sell all-terrain vehicles, which includes used farm vehicles and used competition or adult/child trail bikes that have not been registered for use. The OFT advised that whilst the regulatory requirement is ‘black and white’, a relaxed compliance approach to the regulatory requirement will apply whilst we continue discussions on the subject. We are appreciative of the friendly consultations.
The long-term agenda item of fuel price boards has now been resolved. The fuel price boards’ regulation will take effect from 1 January 2018 – to allow time for fuel retailers to make the necessary adjustments to bowsers and price boards to comply with the regulations. I draw members’ attention to the OFT’s Executive Director Brian Bauer’s feature article in this Motor Trader edition reminding motor dealers to ensure that their current and prospective employees are appropriately licensed or registered. We can provide all your training requirements for Sales and Dealers licenses for your business.
Recently, members will have observed the news stories that ‘Australia’s popular cars face the carbon axe’ with the government considering hardline carbon-emission rules. The Federal Government, on being asked about the possibility of a carbon tax, immediately ruled it out. The basis of the news stories was a Department of Infrastructure and Transport consultation paper which proposed this and other options.
It was disappointing that the paper was the subject of comment before all the options could be considered by all stakeholders. We would have liked to have continued the conversation on measures to reduce vehicle emissions and fuel efficiency. We have been active participants by way of submissions which included new fuel efficiency standards for light vehicles (draft Regulation Impact Statement (RIS); tighter noxious emissions standards for light and heavy vehicles (RIS); and improved fuel quality standards.
Presidents Ball
I undertook not to mention the President’s Ball until August! Members, there are only three Motor Trader editions left to remind you that MTA Queensland’s social and celebratory highlight is on Saturday, 28 October 2017 at the Brisbane Hilton Hotel. I urge you to reserve your tickets! Again, it will be a night of fun with the talented Shane Jacobson as master of ceremonies and a celebration of achievement with awards to industry champions and the apprentice of year.
Finally
As a practice, I monitor the new motor vehicle sales. In May and June 2017, in seasonally adjusted
terms, sales broke through the elusive 20,000 benchmark (20,742 June 2017 and 20,121 May 2017) for the first time since March 2016 (20,388). Over the last 10 years, the highest number of sales in a single month was in November 2012 with 20,858. Until September, take care and stay safe.