RESPONDING to the Reserve Bank of Australia's 0.5 percent rise in interest rates Master Builders Australia’s CEO Denita Wawn said the decision "to further increase interest rates is more evidence of the need for monetary policy to return to more normalised settings to combat inflation".

“However, while acknowledging the need to tackle the dire effects of inflation, we are concerned that a continuing regime of steep rate rises risks turning the economic dial too far in the opposition direction and stalling economic growth needed to for the continuing recovery from COVID,” Ms Wawn said.

“Time should be given to observe the impact of the monetary policy changes in the economy.

“Our industry is disproportionately affected by interest rises and a hard economic landing would put at risk the viability of many building and construction businesses who have managed to come through the pandemic but whose resilience has been eroded by severe supply chain pressures. Many now lack the resilience to withstand more sharp economic shocks,” she said.

“The building and construction industry has shouldered much of the responsibility for underpinning the economic recovery. Suppressing construction activity would counteract the efforts of governments and the expenditure of billions in taxpayer’s funds to shepherd the economy through the pandemic and protect growth,” Ms Wawn said.

“Today’s decision reinforces the need for the Federal Government to ensure that its fiscal policies, indeed all economic levers, must be tested against their ability to drive down inflation and increase productivity."

www.masterbuilders.com.au

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ROAD WORKERS, construction crews and other Transport for NSW workers will walk off the job for the first time in decades on Thursday, as frustrations over the NSW Government's "effective pay cut" boil over.

Workers are outraged their important contributions are being rewarded by the NSW Government with a pay offer that would represent a significant step backward in living standards, according to the Australian Workers Union.

Transport for NSW workers will down tools at 6am Thursday and not resume work again until 6am Friday. The workers, spread across 69 depots throughout the state, will gather outside the front gates of major depots at 9am, including the Sydney Harbour Bridge depot and Civic Park in Newcastle.

The Australian Workers' Union (AWU), which represents the striking workers, has committed to supporting ongoing industrial action until change is achieved.

"These men and women worked tirelessly to keep our state moving during recent bushfires and flood catastrophes," AWU NSW branch organiser Cameron Wright said.

"During the pandemic they put on their work gear and went out into an uncertain world while the rest of us were locked down.

"And now (NSW Premier)Dom Perrottet wants to tell them all to cop a pay cut. It's just not going to fly.

"The Premier likes to talk about his '3 percent' wage increase offer, but in reality it's 2.5, because he's counting the mandated increase in superannuation.

"So with inflation running at over 5 percent, the average road worker is being told to feed their family with significantly less.

"These workers don't take industrial action lightly – in fact they haven’t been on strike in a generation. But you can only be pushed so far and this state government has done that pushing.

"If Dom Perrottet and his government doesn't return to the negotiating table in a more reasonable state of mind there's going to be a lot more days like today."

Unions have given TfNSW management a commitment members will make themselves available to respond to genuine emergency situations to keep the general public safe given recent weather events.

www.awu.net.au

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THE Asbestos Safety and Eradication Agency has launched a new information campaign informing residential property buyers, sellers, renters and landlords of their responsibilities and rights when it comes to asbestos when buying or renting a home.

If a home was built before 1990, it can contain asbestos both inside and outside. Asbestos is still found in one in three Australian homes.

Asbestos is known to cause cancer. Asbestos is dangerous when damaged, disturbed during renovation or repairs or deteriorating. But by knowing where asbestos can be in a residential property, we can all keep safe.

The Asbestos Safety and Eradication Agency CEO Justine Ross said it was vital buyers, sellers, renters and landlords are aware of their rights and obligations, when buying, selling or renting a home.

“The campaign will encourage sellers to disclose the presence of asbestos in their properties, to minimise the health risks for buyers. In some states and territories, they may be legally obligated to do this” Ms Ross said.

“Similarly, we want landlords to identify, disclose and manage the presence of asbestos in their properties, to minimise the health risks for renters. Landlords may also be eligible for tax deductions for asbestos testing and removal.”

“The outcome we are hoping to achieve is to educate buyers and renters about how to stay safe around asbestos, by understanding where it might be in a home and how to manage it appropriately.”

A pre-purchase building inspection is not required to include whether asbestos is present in the property. It is recommended that for homes built before 1990 an asbestos professional is engaged to conduct an assessment to identify whether asbestos-containing materials are present, their location and condition. Asbestos professionals can also provide guidance on how to manage asbestos risks.

There is also a simple Asbestos in residential property disclosure tool that includes this diagram and some warnings about when asbestos is dangerous. This tool can be downloaded and printed, so if you’re a seller, agent or landlord you can provide a copy to buyers and renters.

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EMPLOYERS still battling through chronic staff shortages, record inflation of 5.1 percent and rising costs will be soon hit with another financial blow with the standard minimum wage set to rise by 5.2 percent and the award minimum wage increasing by 4.6 percent.

From July 1, the standard minimum wage will rise to $21.38 per hour ($812.60 per week) with the award minimum wage subject to a minimum increase of $40 per week, depending on the award. This represents a large impact for all employers with small and medium size enterprises (SME’s) that make up over 95 percent of Australian businesses particularly exposed according to business advisory group Employsure.

Employment relations experts Employsure, representing more than 32,000 businesses within Australia, reacted to the announcement negatively.

“The impact of this change cannot be understated, businesses are already doing it tough and with this announcement from the Fair Work Commission, it feels like business owners just can’t catch a break,” Employsure CEO, David Price said.

“We are anticipating an influx of calls in the thousands from concerned employers seeking help around how they will implement and afford these changes. It is an unfortunate reality that some businesses who are already on the edge will simply no longer be able to operate.”

While the overall effect of this change has yet to be seen, there are concerns this may create a domino effect with increased staff expenses to be passed on to the consumer compounding already high cost of living pressures.

“We recommend any business seeking help around interpreting these changes to seek advice, get informed, and prepare to update their payroll systems to avoid underpayment when the increase comes into effect.” Mr. Price said.

www.employsure.com.au

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