MTA Queensland five-rings logo

July, 2017

Under our Constitution’s Objects, we have the authority ‘to consider and deal with any questions relevant to the motor vehicle industry and associated trades or businesses’. And we do. I’ve been involved with the automotive value chain for morea long time – starting with dealerships and motor vehicle finance and lease companies before joining MTA Queensland.

For the entire time with the Association, I’ve worked with the membership in various roles. Across the years, diverse matters have risen, been resolved and queries answered. Now there is the challenge of digital transformation to which we must respond. The upcoming Carmageddon – Leading the Way is for that purpose as Group Chief Executive Office Dr Brett Dale tells in From the Desk of the CEO.

On a daily basis, we deal with a whole canvas of issues that derive from the membership, stakeholders, divisions, corporate partners, government departments and agencies. Consistently, member’s inquiries to us relate predominantly to industrial relations, ranging from award payments, superannuation, workers’ compensation, dismissals, termination and redundancy payments, public holidays etc. In all, our industrial relations specialists Ted Kowalski and Dr Paul Murray fielded and have responded to some 1,600 queries from members in the third quarter. There are some issues, such as consumer matters or contracts, that are referred to solicitors for resolution.

A priority is connecting with members at their sites by our business development managers John Robinson and Andrew Bear and Divisional Executive Andy O’Hearn. These visits are to discuss issues relevant to the business and may focus on services, policy, the professional circle or members’ benefits. In the coming months, I intend to accompany Andy, John and Andrew to meet members at their businesses to hear their views about the Association and business issues.

Over the last financial year, the MTA Queensland’s public profile has risen exponentially due to an effective communications and social media strategy. Interactions with national, state and local stakeholders on training, strategic industry and policy matters have increased our standing as contributors of merit. Recently, our stakeholder interactions expanded to include the MTA New Zealand whose senior executives visited us at the Sir Jack Brabham Automotive Centre of Excellence. With Brett, I met with Member Services Manager Ruth Cook on issues including membership approvals, corporate partners, customer relationship administration and data management. In the coming financial year, as the motor trades undergo profound transformation, the intention is to be proactive in stakeholder interactions to ensure that we leverage from these the best procedures and policies to meet the needs and expectations of members.

Our corporate partners are vital to the provision of specific programs and services to benefit members. On a regular basis, we liaise with each to ensure that there are mutual outcomes from the unique relationship. Corporate partners of longstanding are Capricorn, MTAA Super, Dun & Bradstreet and Commonwealth Bank. More recently Guard, Our Auto Tech-Centre and Our Auto Digital, Gambit and Safety Help have joined as corporate partners.

In our advocacy role, we network with relevant government departments and agencies. We have sound working relationships with the Office Fair Trading, specific divisions in the Departments of Transport and Main Roads; Innovation, Science and the Digital Economy; Energy, Biofuels and Water Supply; Training and Skills and Office of Small Business. Additionally, we interact with Ministers and Shadow Ministers and their staff as required.

ADVOCACY

The Australian Competition and Consumer Commission (ACCC) requested views on the proposed acquisition of Woolworths Limited’s (Woolworths) network of retail service station sites by BP Australia Pty Ltd (BP). Following consultations with the Service Station and Convenience Store Association Division, as an interested party we forwarded views for the ACCC’s consideration. For almost a decade we have engaged in the discussions on the unprecedented market power of the major supermarkets to dominate the fuel retail markets and the entire fuel automotive value chain. This has prevailed with the assistance of shopper-docket fuel price discounts subsidised by the supermarket’s grocery retail operations. Our submission was consistent with our long-held policy position that the proposed acquisition would extend the market distortions and continue the inequities that are inherent in the shopper docket business model.

To date the ACCC has not made a decision on the proposed acquisition.

On behalf of our small to medium business members with spare parts and apparel divisions, we’ve supported, since 2011, the application of the Goods and Services Tax (GST) to low-value imported goods.

The hope was that the Exposure Draft Treasury Laws Amendment (2017 Measures No. 1) Bill 2017 (the Bill) would be passed by the Senate. Disappointingly, the Senate agreed to delay start of the Bill until 1 July 2018. Further, the Productivity Commission will undertake a short inquiry on implementation and the best method for collecting the tax.

Whilst thinking of the GST, I’m reminded of the Australian Taxation Office advice that from 1 July 2017, the GST will apply to imported services and digital products. The good news is that an Australian GST registered business will not be charged GST on purchases from a non-resident supplier. That is if the ABN is provided to the non-resident supplier and it is stated that the business is registered for the GST.

Examples of imported services and digital products from overseas include digital products such as streaming or downloading of movies, music, apps, games, e-books and services such as architectural, educational and legal.

The Trading (Allowable Hours) Amendment Bill (the Bill) is still on the Queensland Parliament’s Notice Paper for debate at the next sitting of Parliament commencing 8 August. The Minister for Employment and Industrial Relations Grace Grace has informed that the Bill will be amended to exclude the application of the changes to motor vehicles and caravans.

Corporate partner Gambit Solutions has provided a preliminary report on the early stages of our partnership and it shows amazing savings in power costs. For example, across 24 business sites, savings of $10,978 were achieved. One paint and panel repair business with three sites had savings of $3,600 per year. Members interested in getting an assessment of their current power bill can send it in directly to our member services team at [email protected].

Our advocacy role was expanded by business development managers John Robinson and Andrew Bear at the 2017 Brisbane Truck Show and the Burson (Auto Parts) trade shows at Mackay, Townsville and Cairns.

These events provid the opportunity to build relationships and increase awareness of the MTA Queensland brand and the benefits of membership.

DIVISIONAL NEWS

The long-standing Chair of the Rental Vehicle Industry Division Chris Ching has relinquished the role due to his exit from the industry. Chris provided positive leadership to the division and was a valued member of the MTA Queensland board. Thank you for your service to the MTA Queensland Chris, and best wishes for your future endeavours.

FINALLY

The Motor Trader, after 83 years as a printed magazine has embraced the information age and is now a digital-only publication. Going digital has many advantages – advantages that you can see in this, the first digital-only edition. The magazine has a much greater reach, carries more news and features (including video), has hyperlinks built into stories and adverts meaning readers can immediately access the websites of member businesses or advertisers and, of course, readers can access it at any time through a smartphone, tablet or computer – as you are doing right now!

Until August, take care and stay safe.