MTA Queensland five-rings logo

October 2018

I’ve been preparing my report for the 9th November Annual General Meeting. This has caused me to think about the core responsibilities detailed in the MTA Queensland’s rules for which I’m accountable. In a nut shell these are neatly summarised as Service and Support for members.

‘Service’ has several meanings and many standards apply to its delivery. Here at the Corporate Office, pride is taken in putting members first, delivering quality advice or product and providing courteous and professional service. That is the standard we aspire to achieve.

Being a consumer myself, I know there are differing service standards. Generally, my experience is queuing, being ignored, holding the line through interminable renditions of Mozart’s Little Night Music, casual indifference or sometimes enthusiastic and courteous helpfulness! I never complain, but many consumers do so – to the Office of Fair Trading as illustrated by analysis (see below) indicating that motor vehicle sales and motor vehicle repairs are a source for consumer angst.

Advocacy
Similar to service, advocacy is a core responsibility and is ongoing. A long-established advocacy practice is to meet with Office of Fair Trading (OFT) personnel to discuss compliance issues relative to the automotive value chain.

Group Chief Executive Dr Brett Dale and I met with the Deputy Director General and Commissioner for Fair Trading David Ford and senior officers for a comprehensive discussion. We raised matters referred to us by members including: auction house compliance activity in relation to licences; and the cross-border issue of online platforms’ ‘drive away prices’ not reflecting differing State on-road costs or in some instances any on road costs at all.

OFT officers overviewed their planned proactive compliance schedule for the coming months which included unlicensed motor dealers and education for new license holders. The comment was made that the MTA Queensland’s ‘Dob in a Backyarder’ continued to be a source for excellent information. Compliance trends analysis for 2017-18 indicated that 41 per cent of non-compliance in the motor vehicle industry related to administration and bookwork type issues. Complaints about the industry continue the trend similar to that of previous years. Motor vehicle sales and motor vehicle repairs and servicing both continue to be in the ‘top 5’ most complained about industries.

Over the past month I’ve finalised submissions on: Fuel price reporting: Consultation Regulatory Impact Statement to the Queensland Department of Energy and Mines; the Top ten issues impacting business for the inquiry into impediments to business investment to the House of Representatives Standing Committee on Economics (the Standing Committee); and the Inquiry into Transport Technology to the Queensland Parliamentary Transport and Public Works Committee.

The fuel price reporting submission was on behalf of our Service Station and Convenience Store Association, providing comments on the Queensland Government’s commitment to a two-year trial of the fuel price reporting scheme to be followed by an evaluation.

The underlying reasonings for the Government’s preparedness to act in relation to fuel price reporting with the intention of assisting Queensland motorists were acknowledged. Our views related to the regulatory compliance regime and the compliance and enforcement strategies. In particular, we requested that the Association, as the peak automotive organisation in the State representing the majority of the state’s fuel retailers, to be included in the Working Group for the trial period to provide greater balance. At present it comprises two national fuel organisations and one local motoring group.

The ‘top ten issues impacting businesses’ was a supplementary submission and a consequence of Brett’s evidence before the Standing Committee. With the help of MTA Queensland Board members, who I thank for their responses, an instructive and comprehensive ‘top ten’ was compiled. It includes the compliance obligations, registrations, selling of products permits and licences, insurance cover requirements, legal expenses, labour market regulations, platform inconsistencies between agencies, and the differing agency portals for the lodgment of documents. A consistent issue was impediments associated with unfair dismissal regulations. The MTA Queensland has advocated that small and medium business need flexibility with staffing when an employment relationship is not working. It is our view unfair dismissal requirements should be reviewed.

Our contribution to the Queensland Parliamentary transport technology inquiry related to the challenges and opportunities which technology will bring to the transport sector in coming years. The submissions are on the website for your perusal. Pending is a response to the Skills for Queensland discussion paper.

The MTA Institute General Manager Paul Kulpa will guide the substance of our contribution to this important subject.

Industry news
The Australian Tax Office (ATO) will be active on tax avoidance in the black economy following the Senate’s approval of legislation that introduces penalties on persons and businesses using sales suppression software. The ‘zapper’ software allows businesses to delete a transaction from point of sales systems to fudge earnings data and avoid tax. Persons found creating or distributing the software will face fines of more than $1 million, while those using it could be penalised more than $100,000.

To curtail cash payment opportunities, courier and cleaning companies will be required to report to the ATO payments to contractors. This measure alone is expected to return $132 million into the Commonwealth budget by 2020-21.

Another ATO activity is its new data-matching technology which means Australians leaving cash payments and foreign income off annual tax returns face the potential of being caught. This forms part of effort to recover an annual shortfall of up to $1.4 billion in undeclared income. The ATO will be assisted in this process by new analytic tools to examine masses of government data to identify inconsistencies.

Referring to ATO advices again, the most common mistake by taxpayers is leaving out cash wages such as failing to include income from second jobs, capital gains on cryptocurrency, the sharing economy, the gig economy, and foreign-sourced income. More than 112,000 tax returns have been auto-adjusted using compliance systems in July and August, recouping $53 million.

Finally
Seriously, if you haven’t given thought to attending the prestigious Annual Industry Dinner, now is the time to do so. It’s easy to obtain tickets. Simply go to our website or click on the link below and the details are there.

It is on Saturday 10th November at the new W Brisbane – 81 North Quay – and dress is semi-formal. It is the one occasion of the year when we coalesce to enjoy the special common bond of being engaged in the motor trades and to celebrate the achievements of our apprentices and members. I look forward to seeing you there.

Until next month, take care and stay safe.