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August 2020

At this time of the year, under the MTA Queensland’s Rules the conduct of elections for office for the Board Divisions and Districts is completed. The onset of the coronavirus caused the process to be paused. The Australian Electoral Commission (AEC), as one of its responsibilities, oversees the conduct of elections for office for industrial organisations registered under the Fair Work (Registered Organisations) Act 2009 (RO ACT). The Commission was concerned that relevant stakeholders may not have a full opportunity to participate in the elections, either as candidates, nominators, voters, or scrutineers. Equally, the health and wellbeing of participants in the election process was a significant consideration. For that reason, the AEC determined that from 24 March, all industrial elections would be ceased and re-run in three months’ time.

The Registered Organisations Commission (ROC) followed up the AEC determination with a Guidance Note on the conduct of elections during the coronavirus (COVID-19) restrictions. It emphasised that the RO Act and the Rules of Registered Organisations provided for the regular election of office holders as important elements for ensuring democratic control. To date there has been no further communication and, currently, we are awaiting advice on the new timetable for commencing the election-for-office process.

The decision to cease the election process during the height of the COVID-19 crisis was welcome as it would have been a significant disruption for members whose focus was on business sustainability. Additionally, the cessation of the election process ensured that corporate office resources were concentrated on membership support. The delay may be helpful to members considering nominating for a position on an industry divisional committee in which their business aligns. I encourage members to consider a representative role. It is essential we have voices to advocate for their respective sectors at a time when the automotive value chain is on the cusp of dramatic change. I would welcome indications from members aspiring to a representative or leadership role on a divisional committee. Under the Rules, each division has a minimum of five and a maximum of 12 members.

Membership

An interesting observation is the increasing interest from non-members in MTA Queensland’s role as the peak industry body representing the automotive value chain, and the provision of training, services, and support to members. Over the last few months, there has been an impressive number of new applications for membership. It would seem the value of membership with MTA Queensland is being broadly recognised by industry, particularly during the COVID-19 crisis.

Advocacy

Pending is a facilitated Shaping the Queensland Small Business Commission (QSBC) post-Covid workshop. The QSBC was temporarily established until 31 December 2020 under the COVID-19 Emergency Response Act 2020. The purpose of the workshop is to provide views and ideas regarding the ideal role and function of the QSBC going forward, that will serve the needs of the small business community.

We have an abundance of views to contribute to the workshop gleaned from the Member Engagement Strategy conversations and from the recent MTA Queensland COVID-19 Automotive Industry Survey and Report. One issue that is a constant preoccupation for members is the cost of red tape. Current research indicates that a quarter of small businesses spend 11 hours a week or more on compliance and close to half estimate the annual cost of compliance is more than $10,000.

The Small Business and Family Enterprise Ombudsman has advised of the emergence of ‘regtech’ which uses information technology to simplify regulatory processes for the end user and minimises the need to navigate complex regulatory systems. We will suggest that the QSBC investigate ‘regtech ’as it would be an effective way
to cut red tape for small business.

Industry News – Luxury Car Tax

The Australian Taxation Office (ATO) advised for the 2020-2021 financial year that the luxury car tax (LCT) would increase from $67,525 to $68,740, and for fuel-efficient vehicles from $75,526 to $77,565. Fuel-efficient vehicles are defined as vehicles that consume less than seven litres of fuel per 100 km. The increase was the first time in five years that the threshold rose for such vehicles. Vehicles with a value over these thresholds attract an LCT rate of 33 per cent. MTA Queensland’s long-held policy is that the LCT should be abolished.

Currently there is a Change.org petition which proposes the abolition of the LCT for electric and hybrid vehicles as a direct incentive to purchase more environmentally friendly vehicles. The last time I looked, the petition was tracking towards 9,000 petitioners, with the aim of securing 10,000. It is unlikely the Federal Government will be influenced by the petition or other calls for the LCT’s removal which would cost the budget $670 million annually in revenue. With an estimated underlying cash balance shortfall of $184.5 billion for the 12months through to June 2021 due to COVID-19 stimulus and support measures, it is probable the LCT may remain for some time.
However, MTA Queensland, in a recent submission to the Productivity Commission’s National Agreement for Skills Workforce Development Review, suggested an alternative approach – notwithstanding the policy the LCT should be abolished. The revenue from the LCT should be applied to support the new employer incentives for Australian Apprenticeships to take effect from 1 January 2020 and other related programs.

Industry news – number plates

A new series of number plates will appear later this year and feature a combination of three numbers followed by two letters and a number. The current number plate series started in 1977 and but for a colour change in 2001, looks largely the same. The new series will provide more than 16 million new combinations and is expected to last more than 25 years at current rates.

The first number plate – is 000-AA0 and will be issued to a ‘local hero’ who has been nominated for community work.

Finally

Throughout the COVID-19 crisis, the Office of Fair Trading (OFT) has been assisting many thousands of Queensland consumers and businesses with advice on issues that have arisen due to the pandemic. Specifically, the OFT handled 1,400 consumer complaints about matters impacted by COVID-19. Of these, 90 per cent related to goods or services which had been cancelled or could no longer be provided, with the vast majority – 970 – relating to travel and holiday bookings. The preoccupation with COVID-19 matters did not prevent the OFT from its compliance investigatory role which includes motor car dealers. In one instance, the OFT investigated a complaint and found a motor dealer was selling used motor vehicles from a residential address. Although licensed as a motor dealer, the person was conducting transactions via private sales to try and circumvent the consumer protection provisions set out in in law. The dealer was fined for not complying with the law. It is timely, to remind members of the dob-in-a-backyarder facility on our website.

Until the next Viewpoint, take care and stay safe.

11 August 2020