Business News Releases

Helping builders and tradies staring down barrel of destruction

Master Builders Australia has commended the Federal Government’s expansion of the First Home Loan Deposit Scheme.

Denita Wawn, CEO of Master Builders Australia said, “The scheme is a proven success story. Expanding it for new homes ticks all the right boxes to help us build our way to economic recovery.

“Thousands of small builders and tradies are staring down the barrel of destruction. This move by the government is going to help save jobs and keep businesses afloat.

“Boosting home ownership and residential building activity are among the most effective ways to fire up aggregate demand, which is exactly what we need right now,” Ms Wawn said.

“Helping people overcome the deposit gap so they can achieve home ownership is important now more than ever.

“It is the single most effective way of building financial security which is fundamental to people’s mental and physical wellbeing,” Ms Wawn said.

“Master Builders Australia called for the government to make this move it in its Pre-Budget Submission and today’s announcement proves that they are listening.

“That’s because expanding this scheme, particularly when combined with HomeBuilder and less restrictive mortgage lending rules, can help the country build its way out of recession,” Ms Wawn said.

“Home building has the second largest multiplier effect in the economy through its supply chain. The building industry is deeply integrated into the economic fabric of this country, more building means more growth and more jobs."

www.masterbuilders.com.au

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Builders back apprentice wage subsidy boost

THE Federal Government’s $1.2 billion commitment to support 100,000 new apprentices or trainees will boost opportunities for young people and business confidence in the building and construction industry, according to Master Builders Australia CEO Denita Wawn.

"Young people and building and construction businesses will be big winners from this new 50 percent wage subsidy,” Ms Wawn said.

“The confidence of building and construction businesses to take on apprentices has been further shaken by the COVID crisis and the Federal Government’s move help will sure up their commitment to invest in the future of their business and the future building industry workforce.

“We know that the building and construction industry takes substantially longer than the rest of the economy to recover from economic down turn and this 50 percent wage subsidy will give confidence to our sector that it can sustainably continue training its future workforce,” Ms Wawn said.

“Our members need confidence that they can and should continue to invest in the future capacity of their businesses despite the dramatic collapse in demand that we currently witnessing, and anticipate will worsen, particularly over the next 12 months.

“This $1.2 billion investment by the Government is undoubtedly good news but its effectiveness will be blunted without further stimulus to support and activate demand for building and construction services,” Ms Wawn said.

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CFMMEU officials penalised $282k over Palmerston Police Station intimidation

THE Federal Court has penalised the CFMMEU and three of its officials $282,200 for attempting to shut down construction at the Palmerston Police Station site in May 2018.

At the time, the three CFMMEU officials demanded work stop on the $30 million law and order and community safety facility.

The Court found that when NT Worksafe officers arrived at the site, two of the CFMMEU officials – Arturo Menon and Roland Cummins – behaved in an improper manner towards the officers.

In attempting to shut the site down Mr Menon falsely told workers they were entitled to go home on full pay.

In commenting on Mr Menon’s improper conduct towards the WorkSafe inspectors, Justice White said, “Such officers should be able to discharge their duties without being subject to aggression or any form of intimidation.” 

Justice White also aaid of the three CFMMEU officials, "They could have addressed those safety concerns with civility, without engaging in foul-mouthed language, without making threats, and without making statements which were false or misleading. Their improper conduct arises from the way in which they chose to deal with the matters of concern.

“There is no evidence of any contrition or regret by any of the respondents for their conduct. Apart from the formal admissions in the pleadings, there has been no acknowledgement by any of the respondents of the wrongfulness of their conduct.”

Justice White also commented on the behaviour of the CFMMEU, “…The very persistence of the CFMMEU in the course of conduct indicates that its contraventions should be viewed seriously. This is reinforced by the fact that it sought by its course of conduct to achieve its objective of closing the site by multiple means over an extended period. In addition, for the reasons given earlier, account is to be taken of the additional gravity of the conduct of the CFMMEU by reason of the increased culpability of its contraventions indicated by its long history of prior contraventions."

ABCC commissioner Stephen McBurney said it was imperative that independent WorkSafe inspectors who had responsibility to regulate the health and safety on building and construction sites were permitted to carry out their important work free from aggression and intimidation.

“The facts in this case highlight just how inappropriate it is for union officials to threaten the contractor and its employees in an attempt to force their will upon them,” Mr McBurney said. 

“Regrettably, this is not an isolated case, it is the continuation of a pattern of behaviour replicated now in every State and Territory in Australia. Since the commencement of the current iteration of the ABCC on 2 December 2016, the courts have imposed penalties of $10,682,595 on the CFMMEU, its officials and representatives for 1459 contraventions of the law. [see below table]

“Many of these cases have been characterised by a lack of contrition and remorse, with no indication of an intention to address or rectify this unlawful behaviour.

“The obvious conclusion to be drawn from the history of contravening is that the unlawful conduct has occurred with the sanction and endorsement of the leadership of the CFMMEU across the country.”

State

Contraventions Found

Penalties Imposed

VIC

200

$2,999,200

NSW

148

$2,866,200

QLD

906

$2,768,505

WA

34

$573,600

TAS

18

$394,500

SA

30

$384,040

ACT

28

$361,100

NT

95

$335,450

Total

1459

$10,682,595

 

Penalties

CFMMEU

$260,000

Arturo Menon

$10,700

Roland Cummins

$6,300

Paul Taylor

$5,200

Total

$282,200

 

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Contact Harald trace technology supports fight against large COVID-19 outbreaks

WITH NEWS this week that the Victorian State Government is keen to return Melbourne to COVID-normal, a quarter of the workforce in high-risk industries such as abattoirs and supermarkets will be tested for COVID-19 regardless of whether they have symptoms or not[i].

With the Victorian Government wanting to drive up testing rates as case numbers decline, it’s an important opportunity for businesses to consider how they will manage their staff – and their ongoing health and wellbeing - and the potential risk of Coronavirus as the country moves through the second wave of the pandemic.

“Using a business based contact tracing system delivers a greater level of confidence for both the employer and its employees to feel safe within their working environment, to know that should a positive case of COVID-19 be detected, its impact and spread will be managed and minimised,” said Elissa Reid, director of product and safety at Contact Harald.

She said contact tracing solution Contact Harald provides this simple line of defence for Australian businesses operating in high-risk industries, allowing them to manage infections swiftly, and prevent an entire business closure in the event that a staff member becomes unwell.

“At a tipping point in time, where we aim to return the country to a place of normality, what matters most isn’t just the amount of testing, but the speed of communication and tracing to minimise further spread,” Ms Reid said.

When Melbourne was forced into lockdown again in late June, Melbourne business Koko Black felt the pinch immediately, and went on the lookout for technology that would help it operate more safely for staff and safeguard its business continuity.

CEO Nick Georges went on the hunt for a product that would ensure they could manage any outbreak in the lead up to their busiest time of the year, after trialling several devices, they landed on Contact Harald.

Contact Harald gave us the confidence that as we get closer to Christmas, we’re not going to have an event that pushes us off the rails. Even the staff have more confidence; seeing this tool and the company’s diligence has had a very positive impact,” Mr Georges said.

Using wearable, stand-alone card technology and operating on low-energy Bluetooth technology, Contact Harald provides businesses with the confidence to safely manage their staff’s health by recording card-to-card interactions within a defined facility, Ms Reid said. Contact Harald cleverly determines when two people have been in close proximity of each other within certain set time limits, allowing for easier, faster detection.

Should an individual become unwell, the data stored on the card issued to them while on-site is flagged within the system, automatically matching data to other cards active in the worksite active at the same time. This allows businesses to manage potential health risks, and immediately identify and alert staff to take swift action to isolate, get tested and better manage the health of their own immediate contacts outside of the business.

“Naturally, privacy is a major issue for both businesses and their staff members, so confidentiality was a key focus in the development of Contact Harald,” Ms Reid said. No personal information is stored on a Contact Harald card, giving both businesses and staff members peace of mind that both their health and their privacy is being protected.”

[i] Ref 1: https://www.theage.com.au/national/victoria/one-in-four-workers-in-supermarkets-abattoirs-to-be-tested-each-week-20200929-p560bm.html

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Loss carry back scheme would boost otherwise profitable businesses

THE Australian Small Business and Family Enterprise Ombudsman Kate Carnell said formerly profitable small businesses impacted by the COVID crisis would get a much-needed cash flow boost if loss carry-back tax provisions were re-introduced.

The Ombudsman’s comments follow media reports the Federal Government is considering an OECD recommendation to implement a loss carry-back provision for usually profitable businesses that will report a loss this year due to the pandemic-induced economic downturn.

“This is a tax initiative that would result in tangible benefits for small businesses that would have otherwise been profitable if not for harsh trading restrictions and lockdowns,” Ms Carnell said.

“It effectively allows a small business that has paid tax on profits in previous years to claim back that tax offset a loss in the current year.

“This has been adopted by other countries such as the US, Japan, New Zealand, Germany and Belgium and was previously introduced for a short time by the Gillard Government.

“When it was first introduced in 2012, the Institute of Public Accountants (IPA) said the loss carry-back measure would benefit 110,000 Australian businesses.

“Unfortunately the provision was scrapped in 2013 with the repeal of the Mineral Resource Rent Tax, despite being recommended by the Henry Tax Review.

“While we haven’t seen the detail on this proposal as yet, the OECD is recommending Australia introduce the loss carry-back provision to mitigate the damage inflicted on businesses that were previously profitable," Ms Carnell said.

“Generally speaking, the Federal Government has an opportunity to implement tax reforms now that will support the small business sector grow and hire to restart the economy.

“Our COVID-19 Recovery Plan outlines a number of additional recommendations to build economic confidence, including a range of taxation reforms.”

www.asbfeo.gov.au

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