MGA TMA 2022 Annual Report

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Financial Year 2022 Annual Report.

22 Financial Year 21

MGA NATIONAL SUPPORT OFFICE Suite 5, 1 Milton Parade, Malvern, Victoria, 3144 P: 03 9824 4111 E: admin@mga.asn.au www.mga.asn.au

Contents

OUR MISSION

The trusted leading voice of industry that is responsive to member needs in a competitive environment. We employ people of exceptional expertise and determination to deliver valuable service and solutions for our members.

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3 MGA values and key priorities 4 Benefits of membership 5 Staff as of 30 June 2022 6 MGA Board of directors 7 President’s report 9 CEO’s report 12 Finance and member engagement 13 Employment law and industrial relations 15 Industry stakeholders and colleagues 16 Advocacy and industry representation 22 COSBOA 23 MGA National Liquor 25 Marketing and communications 26 Member communications 27 MGA TMA brand rejuvenation 27 Occupational health and safety 28 Corporate partners 30 Industry sustainability - a war on waste 32 MGA Industry training 33 GALA Industry community 34 MGA TMA Timber and Hardware 36 Federick O’Connell Scholarship 36 MGA TMA Industry breakfast 37 MGA TMA Advocacy - Maritime Union Australia strike 37 MGA TMA Committee 38 MGA TMA - Russian timber imports

Financial Year 2022 Annual Report

For family enterprises and privately owned businesses

MGA VALUES

Integrity in everything we do

Respect for one another Innovate & embrace change

Teamwork by supporting each other

Accountable for our actions

MGA TMA’s Key Priorities

MGA TMA’s HIGHER PURPOSE

“Making Life Easier” – MGA TMA’s team dedicated to caring for, and supporting, members.

MGA TMA’s OBJECTIVE

A highly respected national industry organisation led by an inspired and aligned high performing team.

MGA TMA’s MISSION

Deliver support services that enhance members’ business health and prosperity.

MGA TMA’s VISION

A robust, competitive and profitable independent retailer and business sector.

RELATIONS

TRAINING ADVOCACY

THE CIRCULAR ECONOMY

COMMUNITY

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INDUSTRIAL
Employment Law –Workplace relations Compliance Specialists State and Federal levels Reduce industry carbon footprint Professional development events and networking opportunities

Benefits of membership

WE KNOW THE INDUSTRY – MGA TMA has been an employer organisation for the independent grocery, liquor and timber and hardware industries since the 1890’s; over 100 years of experience. Registered with FWC and ASIC.

WE ARE YOUR VOICE – MGA TMA represents member views - fighting for member’s sustainability and prosperity at federal, state and local levels, evidenced by our work on industrial relations reform: casuals, part time flexibility, annual wage reviews, competition law reform, least cost routing, trading hours, packaged liquor, illicit tobacco waste management and energy costs. Your views are our mission.

FREE UNLIMITED LEGAL ADVICE – MGA TMA offers advice on all Employment Law, IR and HR matters, Workplace Health and Safety and Consumer Laws; saves members significant costs and provides peace of mind.

SUPPORT WITH YOUR BUSINESS – MGA TMA provides members with access to policies and templates to help them manage their business and concentrate on other priorities. As a member, access our website for members portal for wage rates, public holidays and more.

INDUSTRY TRAINING – Food Safety, RSA, Customer Service, Tobacco, Leadership and much more. Industry specific, member discounts, bulk buys – talk to the experts in grocery, liquor and timber and hardware retail industry training. Member training rates.

EXCLUSIVE DEALS – Member only specials on big ticket items, such as electricity and insurance - check them out at www.mga.asn.au

STAY INFORMED – Our fortnightly MGA e-checkout and monthly MGA TMA newsletters keep members up to date with the latest employment law news, including e-alerts on the latest, time-critical industry news and events. Additionally, our regular magazine provides the latest news.

COMMUNITY – An opportunity to network at our industry business breakfasts, lunches, golf days and GALA ball. Join our industry events that help those in need. MGA and MGA TMA have a long history of assisting various community organisations.

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1. 2. 3. 4. 5. 6. 7. 8.

Staff as at 30 June 2022

Jos de Bruin CEO

SENIOR EMPLOYMENT LAWYER

Angeline Lee

LAWYER

Jenny Nguyen

LAWYER

Aimee Lyons

LAWYER

Cindi Damian GRAPHIC DESIGN & COMMUNICATION

Isabel Nyondo ADMINISTRATION

Nick de Bruin ADMINISTRATION

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Bronwyn Thorpe FINANCE Jane Berkley ADMINSTRATION & COMMUNICATION Mark Paladino BUSINESS DEVELOPMENT TRADE MARKETING Marie-Claire McKiernan NATIONAL MGA TMA MEMBERSHIP George Kovits NATIONAL LIQUOR MEMBERSHIP
EMPLOYMENT
EMPLOYMENT
EMPLOYMENT
MGA TMA staff celebrate with an end of year tour and Christmas 2021 lunch at corporate partner, De Bortoli winery and restaurant

Bronwyn Thorpe

Debbie Smith Queensland President MGA Board - 2 x FoodWorks Toowoomba

Terry Slaughter Queensland IGA Springfields Lakes, IGA State Board Member & MGA Director

Grant Hinchcliffe Tasmania Vice President MGA Board CEO Tasmanian Independent Retailers (92 stores)

Ripple Parekh New South Wales & Queensland 6 x IGA & 2 FoodWorks stores, Director ILG & MGA Director

Graeme Gough New South Wales Former SPAR Ballina, MGA Director

Ross Anile Western Australia IGA Fresh Roleystone & MGA Director

Chris Dos Santos South Australia IGA Henley Beach Former Foodland Valley View & MGA Director

Jeff Harper Victoria 2 x IGA stores, IGA State Board Chair & MGA Director

Lincoln Wymer Victoria & New South Wales

Reddrops Food & Grocery Group (22 stores), Chief Operating Officer & MGA Director

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President’s R eport

For the third year in a row, the President’s Report starts with COVID-19, the Global Pandemic leading us to ask: Will this ever end?

The answer is not yet, but we are learning to live with COVID-19.

The beginning of the year was horrendous for members and their communities. Massive lock downs in NSW and Victoria combined with flooding rains in Queensland, New South Wales, and South Australia made life difficult.

Members looked to MGA to get answers for the questions confronting them every day:

• What if I have staff who will not vaccinate?

• What if I have staff who get COVID-19?

• How do I keep my business open when I have staff absenteeism?

• How do I keep my supply lines going?

Jos and the team continuously monitored every state and federal government advice and edict – every state acknowledged the health advice differently. A massive job every week to distil the information and communicate to members. COVID-19 matters and issues globally and locally have caused tumultuous times for the MGA and members alike.

• Labour Shortages

• COVID Absenteeism

• Migration Intake Stopped

• Temporary Visa Complexities

• Increase Cost of doing Business- rent, wages,

• Pallet Shortages/ Container Shortages

• Freight increases

• Delivery Drivers / Warehouse Labour Shortage

What we achieved

» Strongly advocated and succeeded in labelling all members - food and grocery, liquor, timber, and hardware –as essential businesses to open during lock down. All members were able to trade.

Special thank you to our CEO Jos de Bruin. Jos’s job to keep the MGA TMA relevant, meant he needed to be available 24/7 for Government Ministers, Government Round Tables, Union Negotiations, Small Business Cohorts, members, and staff. It is a tribute to Jos’s leadership that members continue to support the MGA TMA. It is said that tough times breed resilience, MGA TMA managed COVID-19 – what’s next?

Floods

• Members’ businesses were inundated with flood water

• Supply Chains were cut off from East to West and North to South

War

Russia invaded Ukraine 24 February 2022 significantly impacting our TMA members supply chains.

While this malaise has a familiar feeling for our members, it represented an enormous workload for Jos and staff at MGA. Advocacy at all levels of state and federal government was heightened by regulatory reform forums.

What we achieved

» IR Reform with the ACTU

A change to the General Retail Award to provide for Flexible Part Time Employment

For the MGA Board, the era of remoteness and video conference was frustrating and isolating. The Board has been navigating the MGA in times of massive change. It was sad to see Carmel Goldsmith retire at the last AGM and we acknowledged her service and commitment to the MGA, and welcomed Terry Slaughter from Queensland. Terry has significant experience on our MGAQ committee. The MGA Board provides the strategic direction for the MGA. We know retailing in Australia is changing, and are committed to facilitating security and advocacy for members.

Thank you to the Directors for their commitment and support during a challenging 2021/22. It was great to finally start face to face meetings, the first in South Australia in March 2022,

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MGA President Debbie Smith

followed by the Sunshine Coast in Queensland in June 2022.

The MGA partners with members for advice and support through our committee structures. Thank you to members and partners who help and support us on the MGATMA Management Committee, National Liquor Committee, MGAQ and MGAWA Committees.

Thank you to our Corporate Partners who have stuck with us and members during the tough times. It is vital we work with you to springboard the MGA and members into our next ten-year growth plan.

The MGA has contained costs in 2021/22 and is financially stable. We have deliberately focused on trying to keep fees for our members below inflation to assist them into the future.

I announced in last year’s Annual Report a joint venture with ImFree to develop a digital consumer platform that rewards consumers for planet friendly choices while shopping at independent stores. I am pleased to announce we have now partnered with Sunshine Coast University and other industry partners to deliver MiPlanet to all members. It has been an inspiration working with Cris Dawes from ImFree towards this outcome.

In every Annual Report it is essential to analyse the past and plan for the future. The task has been complicated this year by the impending retirement of our CEO Jos De Bruin. Jos has led

the MGA, steered the MGA, guided, and advocated for members for over 16 years. It is impossible to recognise his achievements fully in this report. Jos knows members by name, where their stores are, and always answers a member who calls him. His tireless work to create a national MGA beginning in 2006, contributed massively to independent supermarkets having a voice in Canberra. Jos took the MGA into the Fair Work Commission, The ACCC, The Small Business Ombudsman and into all state governments. It will be hard to visualise a Board meeting without Jos. I would like to thank Jude de Bruin and the whole de Bruin Family for supporting Jos and MGA over the past 16 years.

I would like to welcome our new CEO David Inall, former CEO of the National Dairy Farmers Association. David has enormous experience and will work with Jos in the coming weeks as part of his induction to the MGA. The Board believe David’s skills will make a significant

contribution to our organisation and look forward to working with him.

In conclusion I wish to affirm your Board’s commitment to you, the members, and assure you that we will continue to represent you as we have always done, while exploring and developing new ideas and innovative solutions to promote our industry. The MGA Board belief in innovation through technology and analysis underscores the confidence we have in the future of independent retaining in Australia. Thank you for the trust you have placed in myself and fellow directors.

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Debbie Smith | MGA Board President David Inall, incoming MGA TMA CEO

CEO’s Report

The FY2022 trading year was one of MGA TMA’s most challenging ever. COVID-19 caused every state and territory in the country to adopt their own lock down rules and movement restrictions to disallow the COVID-19 disease from spreading.

MGA TMA’s members are to be congratulated for the incredible manner in which all business owners took on the COVID-19 challenges and were able to resiliently drive for results by providing exceptional customer shopping experiences in very difficult trading circumstances.

The recent flooding events particularly in Sydney, Northern New South Wales (Lismore) and Southeast Queensland were particularly catastrophic and has left those communities in a state of devastation that will take many years foe these communities to recover. The flooding events in South Australia and Western Australia caused unexpected damage to railway bridges preventing freight from being shipped via rail to and from Western Australia for a 6-week period. This impost in turn, causing supply to be limited, causing road freight prices to escalate to unaffordable levels which affected the rise in costs of food, groceries, and many other essential items. MGA sends best wishes to those members and communities for a quick and speedy recovery back to some form of normality.

The year was broken up into two parts. COVID-19 half and “working towards normality” half.

The first half of FY2022 (June 2021 – December 2021) witnessed some of the harshest population and business lockdown, isolation, and movement restrictions in the world. These included Western Australia, South Australia, Victoria, Northern Territory, and Queensland border closures, curfews, movement and isolation restrictions in all states and territories, as well as the introduction of Rapid Antigen Tests (RAT) to help supplement the PCR testing regime and better self-monitor COVID-19 symptoms to limit movement within the community.

Several (without consultation) lock down and isolation restriction decisions made by various Governments caused fear within the community, with the knock on effect being consumers panic buying in many jurisdictions.

Members’ businesses were ravaged by consumers for staple items such as toilet paper, paper goods, pasta, and various other cooking ingredients. In Western Australia, liquor stores found their shelves empty of many packaged liquor products.

Members’ businesses, be it food and grocery, liquor or timber and hardware, through the vigilant work of MGA TMA, were all regarded as essential businesses and so could trade and be open for local customers.

This was a unique time when consumers rediscovered their local community business hubs and shopping centres and supported their local family-owned businesses. Despite all the COVID-19 restrictions and compliance constraints, our members benefitted greatly from consumers changing their shopping needs and habits to a local level. During this period, we experienced severe timber and building supply shortages, labour and skills shortages and dramatic cost to do business increases placing enormous pressure on our members to open their doors every day to serve their customers.

The second half of FY2022 (January – June 2022) COVID-19 restrictions began to relax and local, state and the national economy began to “open up”. Boarders began to open; restrictions began to relax at different levels across the state. Victoria being the most impacted by restrictions and Western Australia the least. Members across Australia experienced solid trading as consumers stayed close to home and did not travel as they did prior to the COVID-19 period.

Chronic labour shortages were reported by members in the eastern states during the year owing to the quantum of staff having to isolate for seven days after being in close

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contact with a COVID-19 positive person or contracting COVID-19 themselves. These employees could not be replaced causing businesses to open later, close earlier and close down various departments such as delicatessen, bakery meat and other departments that could not be staffed. Some members reported up to 45% absenteeism in some weeks of trading.

Cost to do business pressures further increased in this half of trading caused by shortages of labour, freight drivers, pallets, shipping containers, add bue for diesel, as well as basic fuel prices, energy, and waste management costs.

Increased costs have been reflected at the petrol bowser, food, and grocery shelves and all which in turn caused the FWC to respond by lifting the minimum wage rate by 5.2% and 4.6% for award wages.

MGA TMA was heavily involved in many virtual state and federal forums during this time to enable the safe opening of various economies around Australia.

This coupled with the breadth of other matters being addressed by MGA TMA at the same time including industrial relations and employment law matters, food supply and food security, unfair competition matters, least cost routing, illicit tobacco, liquor matters, state trading hours, unfair planning and zoning, tobacco regulations, sustainability – waste and energy.

MGA TMA was involved in many discussions with the Federal Government in regard to various business support measures including, the Cash Flow Boost grant, Job Keeper, Job Seeker, Job Maker and Job Saver programmes - all of which have been very effective to keep businesses afloat and employees attached to their employers when locked down.

MGA TMA’s team members have shown outstanding leadership, dedication and have done a great job keeping our member and industry stakeholder community best interests in the fore front of all its activities during

the FY2022 year. After having to cope with personal COVID-19 restrictions by working from home and then a staggered approach to returning to work, MGATMA’s team is to be congratulated for the flexibility, agility and very hard work dealing with day to day matters where members required support. MGA TMA’s staff have not missed a beat.

Whilst we farewelled our wonderful colleague Marie Brown, MGA’s National Legal Counsel after 15 years of impeccable service back in June 2021, Marie still continued to be a source of support and mentoring for out Employment Law team. Thank you, Marie.

I wish to personally thank everyone of MGA’s Board members and MGA TMA Management Committee President Peter Alexander, for their tremendous support of MGA TMA through these very difficult times. The Board managed these times, whether it be video meetings or face to face meetings, with positivity and aplomb. The Board’s greatest wish was to meet face to face which it finally did in Adelaide in March 2022 and then on the Sunshine Coast Queensland in June2022.

It is pleasing to report that once again MGA’s financial position is strong and sustainable. I thank all staff and the Board for managing our expenses at a frugal level whilst maximizing our revenue through strong membership participation. Thank you to former Finance Manager, Sue MacLeavy, who left the finance role in November 2021.

Thank you to our former NSW Director Carmel Goldsmith who was a driving force for family and privately owned business members. Carmel stood down from the board in November 2021. Carmel’s enthusiasm and deep retail insights will be missed, and we

wish Carmel well in her business and personal pursuits.

A warm welcome to incoming Director Terry Slaughter, whose family owns community grocery and supermarket businesses in the Brisbane suburb of Springfield Lakes Queensland. Terry brings several skills and capabilities to the Board, particularly knowledge acquired through the many years of being a retailer in the food and grocery sector at a corporate level and now in his own business with wife Francis and son Mitch.

A special thanks must be extended to Peter Alexander, President of the MGA TMA Management Committee and Vice President Richard Hill - together with Committee members - for their dedication and support in developing and growing MGA TMA into a truly national timber and hardware organisation.

Thank you to members, MGA’s Board, national and state committees and all industry stakeholders for a great year of resilience considering the many unforeseen challenges, circumstances and uncertainty caused by the COVID-19 pandemic and the flooding disasters.

A highlight in the 2021 calendar year was MGA TMA’s involvement with Federal Attorney General Christian Porter’s IR Reform Working Groups. The Attorney General and the Federal Government recognised MGA TMA as an organisation with a high profile and deep credibility and integrity, in the family and private business sector.

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In early 2021, MGA TMA and the ACTU jointly applied to the FWC to insert a schedule in the GRA to enable parttime employees to work additional hours at ordinary rates of pay. This has now become available to members for implementation into their businesses

MGA TMA’s Board, together with staff, have committed to focussing on the next urgent issue facing our members - reducing members carbon footprint. Introducing the principle of a Circular Economy to members around Australia is a key focus for the MGA TMA team, behind industrial relations.

Significant savings can be derived by reducing, or eradicating, crippling waste management costs and avoiding landfill by implementing a range of sustainable solutions in members’ businesses. The aim is for members to earn carbon credits and actually make money from their waste.

MGA has embarked upon a joint venture with ImFree to form a company named MiPlanet to share in a vision to develop a digital consumer platform that rewards consumers for planet

friendly choices while shopping at independent stores.

The purpose of this initiative is to secure our customers into the future with a unique competitive point of difference which is to provide a tool that empowers and enables consumers when shopping in our members businesses to make their conscious contribution to reducing their carbon footprint within their communities and the Australian community. Consumers will be rewarded with a unique loyalty program involving carbon offset points earned by purchasing planet friendly products and services that will be sequestered once used, by redeeming planet friendly items for the carbon offset points earned. There is an exciting year of MiPlanet development ahead.

This exciting and defining sustainability initiative designed to enable the growth in customer foot traffic in our members businesses and lift MGA members to a standing of being sustainability leaders within the communities in which they trade.

Many other matters have been addressed in the various States and Territories as can be seen further on in this report. We are privileged as an organisation to be invited to meetings and forums, representing our members, for consultation on a breadth of issues and matters.

The future is exceptionally bright for MGA TMA with exciting plans afoot to refresh and reposition the MGA TMA branding and to further lift the organisation into an aspirational association that family and private business owners are proud to be a member of.

Next year is the year of member engagement driving to maintain, retain, and grow membership for MGATMA.

Thank you for the privilege of leading this terrific organisation.

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Jos de Bruin | CEO MGA TMA Back Row. L-R: Jos de Bruin CEO MGA TMA, MGA Board members: Grant Hinchcliffe, Ripple Parekh, Jeff Harper, Lincoln Wymer. Front Row. L-R: Ross Anile, Graeme Gough, Chris dos Santos, Terry Slaughter, Debbie Smith (President) and Peter Alexander (MGA TMA Management Committee President)

Finance and Member Engagement

FINANCE REPORT

MGA TMA has recorded Total Revenue of $2.208m which was $16k higher than the prior year and Total Expenses of $2.218m which were $58k lower than the prior year.

However, due to the unfavourable movement in the fair value of MGA TMA’s managed investment portfolio of $217k, MGA TMA recorded a Net Deficit for the year of $89k.

Total Expenses were lower partly due to savings in operating costs associated with the Covid-19 lockdowns during the first half of the financial year.

With the reopening of the Australian economy in January 2022, MGA TMA resumed face to face meetings for advocacy, industry representation and two meetings of the Board held in Adelaide and the Sunshine Coast.

MEMBER ENGAGEMENT

The MGA TMA team of professional support staff have again excelled in a difficult year of uncertainty, driven by COVID-19, lockdowns, food supply and massive labour shortages. We have continued our strong communications to our members so that they may keep pace with rapid state and federal changes. Our team continues to deliver superior services to all MGA TMA members around Australia. For the all-inclusive membership fee, members can avail themselves to MGA TMA’s experienced, knowledgeable, and professional highly skilled team for any advice and support in Legal and IR, Advocacy matters to relieve those ‘back of house’ pressures, so members can get on with doing what they do well, serving their many 100’s of thousands of customers each and every week. Our members are the hub of their communities and rely heavily on the support and services MGA TMA provides.

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TOTAL MEMBERS 2669 436 15 463 294 761 106 44 550

Employment Law and Industrial Relations

CONTACTS

MGA TMA’s Employment Law team continues to deliver IR support services well above members’ expectations. The first half of the financial year, the Employment Law team mentor Marie Brown, former National Legal Counsel and four qualified Employment Law lawyers were fully dedicated to resolving members’ employment-related queries.

In January 2022 Catherine Flannery-Sweet departed MGA TMA and Marie Brown reduced her time.

The second half of 2022 was quite challenging for our IR team being down one colleague and the issues and matters of concern faced by members seem to escalate. Our IR team was under considerable pressure to assist and support members at a very busy and demanding time. We thank the team for their dedication and commitment to getting the job done for our members.

Not only were members facing severe labour shortages so too was MGA TMA, owing to the very tight labour market.

Our members have faced much challenge, change, uncertainty and unpredictability over the past 2 years owing to the COVID-19 restrictions imposed upon communities around Australia. MGA TMA’s team of Employment Lawyers has served members from around Australia with aplomb. MGA TMA’s Employment Law team has provided quality and timely advice, delivering Employment Law Webinars, submissions to State and Federal governments.

HOURS

IR Team Activities

MGA TMA’s Employment Law team comprises of legal practitioners that provide members with timely and effective legal and IR advice and legal representation. Members are supported through our advocacy work in preparing submissions to government bodies and tribunals.

The Employment Law team has become more important than ever to members in the wake of COVID-19, as we continue to assist members with understanding and complying with complex legal obligations.

Major workstreams

The Employment Law team has been involved in the following key advocacy projects in the 2021-2022 financial year:

2021-2022

Annual Wage Review

The 2021-2022 financial year finished on a somewhat sour note for our members, given the challenges, changes and increased costs to do business. In June, after extensive MGA TMA advocacy work, the lodging of a facts, evidence and data based annual wage review submission and further consultation, Justice Iain Ross from the FWC delivered a 5.2% minimum wage increase and a 4.6% award based wage increase.

Extensive economic research and member consultation was undertaken for our submissions. In light of heavy economic and financial pressures on our members, created by significant previous wage and superannuation contribution increases, the

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IR Topics by Total Hours: 4285
IR Topics by Total Contacts: 9479

lingering impact of COVID-19 MGA TMA advocated for a 0% increase to the award rates for FY2023.

This increase has shocked our members and will create significant cost pressures for our members not to mention the difficulties they will face when considering additional employees to be recruited.

It is acknowledged that there was significant political pressure exerted upon the FWC to increase wages owing to the post Covid significant cost of living figures which were produced to the public since February 2022.

Family and Domestic Violence Leave Review 2021

MGA TMA has been engaged in a number of forums and lodged two submissions advocating against the inclusion of 10 paid days of leave in the GRA for reason of family and domestic violence, as this would result in an extremely burdensome cost for businesses. MGA TMA is of the view that any paid leave for the purpose of family and domestic violence should not come from the pockets of independent retailers and should be considered in the same way as Government funded paid parental leave.

The Attorney-General’s Department Statutory

Review of casual employment legislation

After extensive work done by MGA TMA, and in a bid to support Australia’s Jobs and Economic Recovery, the Fair Work Act 2009 (FWA) was amended with changes taking effect on 27 March 2021.

The recent amendments have altered both the obligations and the entitlements for casual employees. The main amendments to the FWA include the following:

• all casual employees must receive a casual employment information statement.

• a definition of casual employment; and

• new pathways for casual employees to become permanent employees.

The establishment of a casual definition has given members greater confidence in employing casuals now that the risk of double dipping for annual leave entitlements has been alleviated.

Loaded rates in the General Industry Award (GRA)

As previously reported, in late 2020, amidst the COVID-19 madness, the former Attorney-General Christian Porter wrote to the FWC expressing the need for the introduction of simplified pay arrangements in the form of loaded rates in Awards. This was proposed by MGA TMA and COSBOA in the IR Reform Groups, a part of a Small Business Award discussion, hosted by Christian Porter.

In response to Christian Porter’s request, the FWC invited MGA TMA to work closely and constructively with the FWC team to produce a draft determination scheduling a detailed loaded rate arrangement.

MGA TMA has been working closely with the FWC team to work through a number of loaded rates scenarios that may suite small businesses

The purpose of the working group is to simply and reduce wages complexities – to arrive at a weekday and weekend

rate that is all encompassing rather than navigating through a myriad of penalties, and overtime rates creating risk and uncertainty. This is a work in progress.

Other submissions include

NSW Workers Compensation with respect to employees contracting COVID-19

Qld - Inquiry into the operation of the Trading (Allowable Hours) Act 1990 (QLD)

Qld - Committee Secretary Education, Employment and Training Committee with respect to a permanent Small Business Commissioner in Queensland

WA - 2022-23 Christmas/New Year Retail Trading Extensions for the Perth Metropolitan Area

ACCC - Proposed acquisition of SUPA IGA Karabar by Woolworths Group Limited

The Employment Law team continues to remain abreast and inform members of developments in the employment law framework and other legislation that impacts members.

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Industry Stakeholders and Colleagues

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MGA Board members visit Drake Supermarkets state of the art warehouse located in Edinburgh South Australia. L-R: Peter Daly, Donna Daly, Mick Daly, Nathan Lovell, Barb Daly of Daly’s IGA Koroit.

Advocacy and Industry Representation

Advocacy and Industry Representation issues MGA has addressed at Federal and State Government levels on behalf of members:

Federal

Industrial Relations

Annual wage review 2022

Family Violence and Domestic Leave –MGA opposes Employer paid 10 days FVDL

Permanent part time flexibility –MGA is promoting this to replace casualisation

COVID-19 - Mental health for family and private businesses

Wage theft

members being constantly reminded of their

Casual employee definition – adopted

FWC loaded rates project – owing to the reconciliation differences this

Federal

has engaged with Federal Ministers and Shadow Ministers about the following matters:

COVID-19 Pandemic

• Since Treasurer Frydenburg announced the $2B for Mental Health support in the Federal Budget in May 2021 MGA has embraced support for mental health groups to develop programs for family and small businesses. MGA is waiting to adopt such a program for members to undertake.

A. Industrial Relations

a. The FWC Annual Wage Review Panel – on 16 June 2022 the FWC handed down its decision to award a 5.2% minimum wage increase and a 4.6% awards based wage increase.

on

Temporary Visa – COVID-19 408 –Hospitality and Tourism only

Least cost routing -

State

State COVID-19

• From July 2021 to January 2022, Australians have been plagued by lockdowns, shutdowns and movement restrictions around Australia - MGA is a member of several Federal Government forums. MGA has advocated for borders to be opened and for restrictions to be eased.

Department of Home Affairs Supermarket Task Force / Food Security Group.

• Based upon an extensive member survey MGA sought a zero / nil increase or a small, delayed increase. The arguments for this recommendation centred on the need for the economy to recover from COVID-19 effects.

• There will be a 0.5% superannuation guaranteed contribution increase from 10% to 10.5% from 1 July 2022.

• The ACTU sought a 5.5% increase to all awards and the Catholic Council of Australia a

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A.
a.
b.
c.
d.
obligations e.
much to the relief of members f. Sexual harassment – on going matter g.
is
hold B.
C. Illicit tobacco D.
reduce merchant payment fees E. ACCC - competition matters
1.
business economic recovery committees 2. Sustainable supermarkets – waste management 3. Planning, zoning and development 4. Trading hours 5. Container deposit schemes / single use plastic item bans 6. Tobacco laws 7. Packaged liquor 8. Debilitating energy costs 9. Payroll tax 10. Small business advisory councils
MGA
Industry Assoc Leaders meet AG Michaelia Cash IR Reform discussion Sept 2021 Federal Govt Industry Leaders Test & Isolation National Protocols mtg Jan 2022 Minister for Home Affairs Karen Andrews COVID Recovery Feb 2022

6.5% increase – “because we can afford it”

• The past 5 years has seen a 19.1% increase in wages - the last wage increase of 2.5% was on 1 July 2021. The newly announced 4.6% increase plus the past 5 years of increases = 18.6% - plus an additional 0.5% SCG increase to 10.5% (1% increase in 21/22) = Total increase = 19.1%.

b. Permanent part time (PPT) flexibility (work in progress)

• A PPT schedule has been inserted into the Award to allow PPT flexibility. Justice Iain Ross from the FWC determined the GRA will be varied – (not a schedule).

• This is a breakthrough for MGA members as employers will be able to offer additional hours of work to a part time employee and will not pay for the additional hours of work at overtime rates. It is hoped this initiative will lead to decasualisation in favour of Permanent Part Time employment.

c. Wage theft

• MGA is constantly advocating for the words “wage theft” not to be used. The award system is far too complex and difficult to interpret hence causing a spate of under payment issues. It is just too complicated

d. Casual employee definition (work in progress)

• Members are greatly relieved to know that MGA and other groups were successful in amending. The definition of a casual employee. This great win will allay members fears of having a casual employee “double dipping” - paying annual leave for consistent and systematic hours of work.

• After 12 months of working as a casual an employer must offer a casual employee permanent

working conditions – this was law as from mid-September 2021

e. Sexual harassment (work in progress)

• Proposed inclusion of an offence in the Fair Work Act that provides for termination of employment on the grounds of sexual harassment. Complaints were previously made under the Human Rights Act.

• Members are being encouraged to have their policy on sexual harassment available to all employees and conduct training annually.

f. Domestic family violence leave (DFVL)

• The Fair Work Commission has completed a review of Family and Domestic Violence Leave. MGA has researched its members and received responses from over 100 stores. MGA lodged two short submissions opposing the

suggestion that employers should pay for 10 FVDL days per annum. MGA proposed that FVDL be treated in a similar manner to Government funded carers leave.

g. FWC loaded rates project (work in progress)

• As reported in FY2021 report, MGA together with the FWC is working on a simplified loaded rates model to help smaller businesses comply with onerous Award compliance and make it easier for them to employ more staff. MGA is modelling a loaded rate for weekdays and one for weekends.

• This has been a long drawn out project owing to the complexity of spread of working hours and the quantum of penalties applicable to employees working at various time at each end of the day.

Other Matters

B. Labour shortages - Temporary Visa Regulations – promoting simplicity and flexibility

a. With members experiencing current extreme labour shortages which is having a diabolical effect on MGA TMA’s members, Visa applications must be simple to apply for and enduring. MGA submits that all non-effective rules, such as moving to a regional town for 2 years in order to qualify for permanent residency must be removed.

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FWC and Industry Leaders Forum Award Flexibility discussions Oct 2021 IR Working Group Industry & Unions July 2021 IR Working Group 2 Industry & Unions July 2021

b. MGA has suggested that Temporary Visa holders work unlimited hours rather than be restricted to working 20 hours per week.

c. MGA is engaging with Minister for Immigration and Minister for Small Business to drive for a commonsense outcome – this is on hold now after the May election ousted the previous government.

May-80May-81May-82May-83May-84May-85May-86May-87May-88May-89May-90May-91May-92May-93May-94May-95May-96May-97May-98May-99May-00May-01May-02May-03May-04May-05May-06May-07May-08May-09May-10May-11May-12May-13May-14May-15May-16May-17May-18May-19May-20May-21May-22

Worker shortages in Australia - COVID-19

Source ABS

i. Independent food and grocery supermarkets, liquor stores and timber and hardware businesses have never before experienced worker shortages as we have seen in the past 12 months.

ii. The situation is diabolical as members struggle with increased wages costs and costs of doing business coupled with insufficient staff to help run their stores.

iii. Our industry sector has traditionally relied upon local workers in the first instance and then new migrant workers, temporary visa holders and back packers to work in their stores.

iv. MGA has strongly encouraged the Federal Government to allow older

workers currently not wishing to risk their pension payments, to work in our members stores as well as significantly increasing migration levels and simplifying Temporary Visa conditions to allow temporary visa

holders to work longer hours, extend their visa and apply for permanent residency.

18 ANNUAL REPORT mga.asn.au | 2022 | Annual Report
COSBOA & MGA meets Sml Bus Minister Stuart Robert and ASBFEO Bruce Billson Oct 2021
'000 Job vacancies, seasonally adjusted The Job Vacancies Survey was suspended between August 2008 to August 2009 (inclusive). Source: Australian Bureau of Statistics, Job Vacancies, Australia May 2022 Job vacancies
100 200 300 400 500 600 % Proportion of businesses reporting vacancies, Australia Source: Australian Bureau of Statistics, Job Vacancies, Australia May 2022 11.0 6.5 12.1 14.7 18.1 22.0 20.3 20.7 23.5 25.2 Proportion Feb-20 May-20 Aug-20 Nov-20 Feb-21 May-21 Aug-21 Nov-21 Feb-22 May-22 0 5 10 15 20 25 30 30k 190k 140k 480k NUMBER OF VACANCIES ‘000 JOB VACANCIES, SEASONALLY ADJUSTED PROPORTION OF BUSINESSES REPORTING VACANCIES, AUSTRALIA
ASBFEO Bruce Billson and Mark Paladino COSBOA summit April 2022 COSBOA Council meets with Shadow IR Minister Tony Burke Aug 2021

C. Illicit tobacco (work in progress)

a. This is a huge issue for our members particularly in Queensland, New South Wales, and Victoria. It is costing our industry sector $300m in sales per annum – MGA is a member of the Illicit Tobacco Advisory Group and has been actively engaging with the Minister for Borders and Minister for Home Affairs, the Federal Government Black Economy Task Force, Treasury and other government and regulator levels to strengthen laws and increase enforcement resources.

b Severe illicit tobacco issues have been reported from Queensland. Small store Members report losing more than 25K per week in Tobacco sales. MGA is advocating the Queensland Government to introduce a tobacco licence so as to help police enforce the law, eradicate illicit tobacco and charge the perpetrators to stamp out illicit tobacco. State Governments have also been engaged to put upward pressure on the Federal Government.

D. Least cost routing – reduce merchant payment fees

a. This continues to be a very big concern for members given the escalation in costs since the COVID-19 pandemic commenced in March 2020.

b. MGA is engaging with the Federal Government, RBA, ACCC and eftpos to introduce least cost routing as a default mechanism and not risk losing dual network cards (eftpos and global card). The four banks must look to significantly reduce increasing merchant payment fee costs

c. MGA is a member of a Fair Merchant Payment Fees Alliance with other employer organisations.

E. ACCC matters currently being addressed:

a. MGA is an active Member of ACCC Small Business and Franchise Consultative

Council.

b. ACCC Chairman Rod Sims, after 11 years at the helm of the ACCC has stepped down from the Chairmans role in June 2022. A new Chairperson has been announced - Gina Cass Gottlieb with whom MGA looks forward to working with now and into the future.

c. Oppose Woolworths acquisition of Supa IGA Karabar (just outside of the ACT) – MGA made a submission to the ACCC to oppose the takeover of Supa IGA Karabar on the grounds of a large corporate exercising their market power to acquire this store which will substantially lessen competition and will be a further blow to the independent sector market share.

d. ACCC Authorisation allowing food and grocery retailers a to collaborate on similar Covid-19 restriction matters – sharing information in confidence to search for safest and best operational outcomes.

e. Shopper dockets - “4 cents per litre enforceable undertaking” will continue as per new ACCC Chairperson.

f. Unsustainable merchant payment fees and least cost routing for members –continues to be an issue and is constantly raised with the ACCC

g. Employsure was successfully charged by the ACCC and fined $1m by the courts with misrepresentation and unconscionable conductmisleading marketing, promotional & contract behaviours that appeared to that of the FWC.

F. Unfair Contract Terms / Unfair Trading Practices / Unfair Business Practices

a. The strengthening of contract terms to remove

any unfairness and hidden implications such as automatic renewals, additional charges etc. to better protect family and private businesses. Lift the contract value threshold to $10m..

G. Country of Origin Labelling (CoL)

a. Constantly being reviewed by National Measurements Institute and the ACCC. MGA has been involved with the review of CoL since 2021.

H. Company Tax reductions

a. Company Tax has been reduced to 25% in FY2022 for small businesses with $50m or less in sales in FY2022.

I. Small Business Advisory Councils

a. NSW: MGA a member of the SBC, Treasury and Small BusinessAdvisory Round Table.

b. NSW: MGA is a member of the Small Business Commissioner Industry Leaders Group

c. MGA is a member of the Australian Small Business and Family Enterprise Ombudsman’s (ASBFEO) working groups.

d. MGA is a member (and Director) of the Council of Small Business

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ACCC Chair Rod Sims Meets with MGA and COSBOA Oct 2021 NSW Small Bus Minister Damian Tudehope and SBC Chris Lamont meets COSBOA Oct 2021

Organisations of Australia (COSBOA)

e. QLD: MGA continues to be an active member of the Small Business Commissioner’s Small Business Round Table.

and assistance, payroll tax relief, return to business opening strategies, Job Keeper, Job Maker, Job Seeker, Job Saver matters, COVID-19 work practises, restrictions and business information tools, industry training and development.

c. Queensland Premier and Small Business Commissioners’ COVID-19 Business Economic Recovery Committee.

e. Victorian Small Business Minister and Small Business Commissioners’ COVID-19 Small Business Recovery Committee.

f. VIC: MGA is a member of the Small Business Commissioner’s Small Business Commercial Tenancy Relief Scheme & Business Support Group.

State matters

A. State COVID-19 business economic recovery committees and task forces

Waste Management

Planning, zoning and development

Trading hours

Container deposit schemes / single use plastic item bans

Tobacco laws

Debilitating energy costs

Payroll tax

Small business advisory councils

A. State COVID-19 business recovery committees

MGA continued to be an active member of a number of State and Territory COVID-19 business economic recovery committees and task forces the most recent being WA.

a. Meetings, workshops and information sessions were held weekly and fortnightly during the financial year.

b. Many issues and opportunities discussed included: removing red tape for members to home deliver, rental relief schemes

d. New South Wales Treasurer and Small Business Commissioners’ COVID-19 Small Business Economic Stimulus Committee.

f. Western Australia Premier’s and Small Business Minister’s COVID-19 Economic Recovery Group.

B. Waste Management

a. MGA continues to strongly advocate Federal and State Governments:

i. To support members with their waste management practices embracing principles of the circular economy as enormous waste disposal business costs continue to significantly escalate.

ii. To help communicate opportunities in our industry sector to assist members reduce their waste costs and avoid landfill.

iii. To assist MGA to apply for various grants to assist members.

C. Planning, zoning and development

a. Affecting fair competition

20 ANNUAL REPORT mga.asn.au | 2022 | Annual Report
B.
C.
D.
E.
F.
G.
H.
I.
Queensland Covid Business Recovery Meeting Small Business Minsiter Di Farmer Dec 2021 Queensland Small Business Commissioner Maree Adshead Industry Leaders Dec 2021 NSW Treasury COVID-19 ndustry Leaders Briefing Oct 2021 NSW Small Bus Minister Eleni Petinos, SBC Chris Lamont meets Jos de Bruin MGA June 2022 VIC Sml Bus Minsiter Jaala Pulford COVID-19 Industry Leaders meeting Oct 2021 WA Govt & Industry Leadrs Covid briefingSuperintendent Steve Post SBC David Eaton Jan 2022

continue to be a major concern. MGA strongly advocates state governments to

i. Establish Council consistency –require and follow state planning and development guidelines to give family businesses the confidence to invest back into their businesses and to innovate.

ii. Stop unfair crowding out of our members by the Chains –reducing consumer choice and stifling competition.

D. Trading hours - liberalisation and deregulation

• A major concern for members in Western Australia, South Australia, and Queensland.

• Western Australia Christmas and New Year - MGA lodged a submission with Western Australia Attorney General John Quigly to maintain the status quo for Christmas 2021 and the New Year 2022 – no change 2020/2021.

• Queensland 5 Year Trading Hours Moratorium commenced August 2017. The Trading Hours Review was completed in early 2022 with a number of favourable recommendations forthcoming along with a one year extension of the trading hours moratorium to August 2023. MGA made a number of recommendations including:

» Extending the trading hours moratorium for an additional 5 years

» Changing the definition of an independent retailers to lift the staff on floor from 30 to 40 and the multiple store owners from 100 to 50 staff

» Disallow the large Corporates from trading on public holidays in nonexempt jurisdictions

• In essence one more year remains for MGA and the Palaszczuk Government to seek a solution to “future proof” Queensland independents – allowing locally produced alcohol to be stocked by local family food and grocery business.

• South Australia Christmas and New Year trading hours – MGA will

advocate for no changes to last year.

E. Container Deposit Schemes (CDS) and Single Use Plastic Item bans

a. Tasmania

i. Member of the Tasmanian Department Environment CDS Task Force with TIR a. Likely to implement in 2023 to coincide with Victoria.

b. New South Wales

i. Launched December 2017 –Members have adapted very messy and costly system. A relationship has been established with Tomra to place additional RVMs with members.

ii. New South Wales / Victoria border issues – MGA continues to secure additional temporary relief support for new South Wales members along the border - 37 outlets. This will continue until Victoria implements its CDS.

c. Victoria

i. A CDS will not be introduced into Victoria until 2023.

a. MGA is a member of the Victorian CDS taskforce.

b. Once implemented, a relief for all members on the New South Wales side of the Murray River.

d. Western Australia

i. WA CDS was launched in November 2020.

1. MGA is a member of the WA CDS taskforce.

2. The implementation of the scheme has had no effect on members.

ii. MGA member of Western Australia Single Use Plastic Item Ban Taskforce

1. Banning of single use plastic bags and items (cups, plates, cutlery, straws) – next banning of all single use plastic items.

e. Queensland i. Queensland CDS – launched November 2018

1. MGA is a member of the QLD CDS Taskforce.

2. Working well with little cost

or red tape impact on members. This is a not-for-profit model.

ii. MGA is a committee member of the Queensland Single Use Plastic Item Ban Taskforce led by Department for the Environment Director.

1. Banning of single use plastic bags and items (cups, plates, cutlery, straws) – next banning of all single use plastic items.

F. Tobacco laws

a. MGA’s Tobacco Training module for all states and territories is free for members and has been endorsed by state governments and territories.

b. E Vapourisers / E Cigarettes:

i. MGA has been advocating for uniform and consistent federal and state government policies concerning E Vapourisersc.

NSW: MGA is a member of the NSW Tobacco Control Committee. No imminent changes.

ii. Currently sold online or from pop up outlets – Governments must regulate, and members must be able to stock, market and sell Vapourisers.

iii. MGA has opposed recent Federal Government Legislation that requires E Vapourises to be prescribed by a doctor and then obtained from a chemist.

c. New South Wales: MGA is a member of the New South Wales Tobacco Control Committee. No imminent changes.

d. Victoria: MGA is a member of the Consultation Committee Presiding Over the Tobacco Control Act – no imminent changes.

e. Queensland: MGA regularly engages with the Department of Health (Minister for Health). There are no imminent changes and particularly nothing new in regard to tobacco licences.

i. MGA is working very closely with the Ministers for Police, Health and Small Business to review the Tobacco Act to

21ANNUAL REPORT

introduce a Tobacco licence to help eradicate illicit tobacco from being sold.

f. Western Australia: MGA engages with the Department of Health (Minister for Health). There are no imminent changes – particularly nothing new in regard to signage.

G. Energy costs

Addressed with relevant state ministers and their departments at every opportunity. Each state has a different system and ownership structure for electricity generation and electricity retailing adding complexity, confusion and costs.

a. Energy costs have lifted substantially in 2022 for members, particularly those coming out of contract. With coal fired generators closing and the slowness of renewable energy coming available there are supply issues causing major price increases.

H. Payroll Tax

As a debilitating tax on employment, MGA continues to voice strong concerns that this tax is a handbrake on employment growth, particularly, as we emerge from COVID-19.

a. Payroll tax relief or deferment was given by some state governments during COVID-19 in 2020/2021.

i. States and territories raise $22B per in revenue from payroll tax.

I. Small Business Advisory Councils

a. Queensland: Debbie Smith, Foodworks Toowoomba was a member of Qld Small Business Advisory Council until late 2021

b. New South Wales: MGA is a member of Small Business Commissioner Small Business Round Table.

c. Victoria: MGA and Tony Ingpen, Supa IGA Mount Evelyn, is a member of the statutory Small Business Advisory Council.

COSBOA – Council of Small Business Organisations of Australia

MGA’s Jos de Bruin was reappointed as COSBOA Director for another six year term in December 2021.

COSBOA played an enormous leadership role on behalf of its members and all small businesses around Australia by being a beacon of light and hope during the COVID-19 Pandemic and Post the pandemic.

Under new CEO Alexi Boyd and new Chairman Matthew Addison, COSBOA continued the heavy lifting to safeguard and to advocate for the Federal Government and regulators to support small businesses.

COSABOA has become the “go to” organisation for Governments and Regulators when determining small business policies and budget settings. COSBOA continues to stand behind and support small and family-owned businesses at all levels of government and key regulators, ensuring they receive the

support needed during challenging times such as COVID-19.

COSBOA hosted a weekly industry association leaders, ministers and regulators COVID-19 meeting at which all issues and matters affecting small businesses were discussed including cash flow boosts, Job Saver and Job seeker programmes.

MGA TMA is a very active Council member, participating in many workstreams, including IR reform, COVID-19 business recovery and related groups, merchant payment fees and much more.

As the beacon for small, family and privately owned businesses around Australia COSBOA continued to create, develop and implement the highly recognisable “Go Local” campaign, encouraging locals to shop at their local businesses. This campaign has been an outstanding success.

22 ANNUAL REPORT mga.asn.au | 2022 | Annual Report
WA Single Use Plastic Ban Meetings Sep 2021 Bruce Bilson with MGA President, Debbie Smith Small Business and Family Enterprise Ombudsman Bruce Billson Dec 2021 COSBOA Chair Matthew Addison Dec 2021

MGA National Liquor

The COVID-19 pandemic crisis continued to wreak havoc with the Australian economy until January 2022 when the Western Australia and Queensland borders were opened, and COVID-19 movement restrictions began to ease.

Fortunately, throughout COVID-19 the sale of packaged liquor, as with groceries, remained an essential service and members continued trading. As per FY2021, Victorian members in the CBD and regional resort areas were impacted most as the state suffered through over 250 days of lockdowns in the 2021 calendar year.

National Liquor Committee

During the uncertainty brought about by COVID-19, the voluntary National Liquor Committee continued meeting monthly, focusing on addressing and advocating on issues potentially impacting the prosperity and viability of the independent packaged liquor sector.

Australia’s recoveries were widespread and although some industry sectors remain constrained the food and packaged liquor sector continued to maintain solid growth resulting from strong consumer spending. The strong consumer confidence can be also contributed to the revival in the jobs market and hours worked as reported by the ABS, which saw the number of people employed recover to prepandemic levels by March 2021 and the unemployment rate fall from a high of 7.5% in mid-2020 to 5.1% in May 2021.

Supply chain problems and staffing issues have been the biggest concerns for members and continue to be today as members increasingly find it difficult to hire new staff to fill vacancies, this Coupled with intense business cost pressures resulting from increased energy costs, insurance premiums, fuel costs and with the Fair Work Commission awarding all workers an increases to the National Minimum Wage of 5.2% and the Award Minimum Wage increase of 4.6%, have made it harder for SME to trade profitably.

During all this uncertainty your voluntary National Liquor Committee continued to remain focused on advocating on issues that could further impact the prosperity and viability of the independent packaged liquor sector.

23ANNUAL REPORT
L-R: Jos de Bruin, CEO MGA Independent Retailers. Kim Satterthwaite, FoodWorks Nat. Business Manager Liquor. George Kovits, President MGA National Liquor Committee. Tony Leon, Director Steve’s Liquor. Jeremy Goodale, ALM General Manager Vic & Tas Michael Reddrop, CEO Reddrop Group. Angelo Giannetta, Independent Retailer - IGA Express.
Karl
Loh, Ritchies Liquor General Manager.
Tony
Bongiovanni, Independent Retailer Cellarbrations. Nick Cook, Independent Retailer FoodWorks
(missing:
Adrian Ricci, IBA NSW State Manager: Tony Ingpen, IGA
National
Liquor Board Chairman: Peter Karkazis, Director Local Liquor ACT)

KEY INDUSTRY NEWS 2021

July

• Accolade Wines Announces Jack Glover as the new Marketing Director

• TWE restructures to combat China loss & accelerate growth in luxury market

• CUB CEO Peter Filipovic retires after 25 years

August

• Woolworths prepares for the demerge Endeavour Drinks with the appointment of the inaugural CFO Shane Gannon

• Coca Cola Europacific will be led by Peter West as Vice President and General Manager for the newly created Australian Pacific and Indonesia Business Unit, he will also join the executive leadership team of CocaCola European Partners (CCEP)

• TWE returns to profit and has reported an EBIT of $510.3m even after a $77.3m decline in China sales

September

• Lion announces David Smith will be replacing James Brindley as MD at the end of 2021

• Calabria Family Wines doubles in size with the acquisition of Mc Williams Wine Brand and Hanwood Winery, Deakin Estate and La La Land Wines

• Lion acquires the entire Fermentum family of businesses, including Stone & Wood, Two Birds, Fixation, Little Dragon and Sunly Seltzer

October

• Western Australia’s Feral Brewing CoOp was put up for sale as Coca- Cola Europacific announces that they will be exiting from production, sale and distribution of beer and cider products

• Peter Gago Penfolds Chief Winemaker who is recognised as one of the New Worlds foremost winemakers is the newest member of Decanter’s Hall of Fame

2022 February

• Lion announced Sam Fisher as the new Lion Group CEO, commencing in July 2022

• Industry celebrates Chuck Hahn 50 years in brewing at Squire’s Landing in Circular Quay. Hahn is widely considered the forefather of craft brewing in Australia

• Yalumba has appointed Karl Martin as the new MD, replacing the retiring Nick Waterman after almost twenty years of service to the company

March

• Tobacco - Victorian Minister for Regulatory Reform Hon. Danny Pearson requests the Commissioner for Better Regulation, Anna Cronin, to undertake a full review of Victoria’s approach to illicit tobacco regulation

• Tobacco - Queensland Health Minister calls for submissions on Reducing the negative effects of smoking in Queensland / Consultation Regulatory Impact Statement

May

• Yellowtail has been crowned the world’s most powerful brand by the 2022 Wine Intelligence Wine Brand Power Index

• TWE opens the largest premium wine making site in the Southern Hemisphere. The $165m state of the art production facility in Nuriootpa in the Barossa Valley will be the wine makers largest bottling operation in the world, packing 216 million bottles per year

• Cellabrations named Australia’s best retailer by the Roy Morgan Customer Satisfaction ‘Best of the Best’ Award for 2021. Cellabrations is the first liquor store to win this prestigious ‘Best of the Best’ award

July

• •The Victorian Gambling and Casino Control Commission (VGCCC) announced the appointment of Annette Kimmitt AM as its new CEO

• Russell Hooper has been appointed as the new Victorian Director, PolicyGaming and Liquor Department of Justice and Community Safety

Queensland

a. Entrepreneurial Pipeline Project – locally produced beers, wines, spirits and ciders for independent food and grocery stores.

i. The MGAQ Committee has liaised and worked with the Queensland Government for over six years to drive for locally produced Queensland wines, beers and spirits to be stocked by MGA members, as a part of a whole of meal solution, to help boost Queensland made products and increase employment. Similar to the Tasmanian model.

ii. MGA Board members met with Sunshine Coast distillers, wine makers and beer brewers to seek alignment to stock local products as a part of a food and beverage eco system in MGA’s members stores.

iii. MGA will lobby the Queensland government for legislative Liquor Act change in the meantime a selected few food and grocery businesses will be selected to take on a Special “local” liquor licence similar to a Cellar Door Licence.

iv. MGA and the MGAQ Committee has the support for the Entrepreneurial Pipeline Programme Queensland Small Business Commissioner, Treasurer Cameron Dick, AG Minister Shannon Fentiman, Minister for Small Business Di Farmer and Minister for health Yvette D’Ath, as well as various Department Heads, including Queensland Small Business Executive Director, Warwick Agnew.

v. Queensland Boutique Brewers Association, the Queensland Distillers Association and the Queensland Wine Industry association fully support the program.

24 ANNUAL REPORT mga.asn.au | 2022 | Annual Report

Marketing and Communications

The overall goal of MGA TMA’s communication activities is to ensure members are provided with crucial information across each operational area in an efficient, timely and comprehensive manner. The aims of MGA TMA are to protect and empower our members by providing resources that guide compliance, business operations, and sustainability, and formulate clear, consistent messages delivered as one unified voice of members.

MGA TMA played a major communications role during and post COVID-19.

As there were rule, regulation and law changes as a consequence of the covid pandemic MGA TMA, which was a member of each state and territory COVID-19 business recovery task force, would immediately relay the newest information to members via an efficient, simple and clear E communication. Members became reliant upon their weekly and fortnightly E correspondence from MGA TMA.

MGA TMA’s higher purpose ‘Making Life Easier’ is at the centre of everything we do. Building on a strong foundation, MGA TMA’s communications team continued to deliver exceptional visuals and content to assist members with important information. MGA and MGA TMA websites continue to reflect the latest information, news and details for members.

MGA TMA’s communication’s team developed a dedicated COVID -19 compliance section, that provides members with up to date restriction and compliance reference tools to help better manage their businesses.

The importance of our digital channels became highlighted over the last couple of years, by the impacts of COVID-19. Our communications have needed to be agile, cost-effective, and timely when reaching our range of small business members.

25ANNUAL REPORT

Member Communications

MGA’s magazine continues to be a source of information and truth for members. With 7 editions per annum being delivered to members there is a vast amount of industry, member and corporate member news that is shared with members. The magazine is a professional development publication to help inform owners, managers and staff of what is going on in the industry at a given point in time.

MGA continues to deliver a fortnightly E-Checkout newsletter, to members. Information contained covers a wide range of important compliance and professional development topics that address members’ business needs.

E-alerts, continue to be a vital communication tool providing members with immediate information, such as, COVID-19 restriction updates, wages increases, public holidays, and trading hours changes.

MGA and MGA TMA, combined, sent over 268k electronic communications to members, up from 177k in FY 2021 (an avg of 5,154 p/wk).

These communications have been primarily driven by COVID-19 lockdowns and changing COVID-19 restrictions which impacted members and their employees, supermarkets, bottle shops and timber and hardware businesses across the country.

26 ANNUAL REPORT mga.asn.au | 2022 | Annual Report

MGA TMA Brand rejuvenation

Our existing brand has been in place for some time and a refreshed brand identity has been in preliminary development since March 2020. The new style modernises MGA’s appeal while maintaining connection with our past and conveying inclusivity with our industry diversification. The master brand, MGA National Industry Group, will comprise of sub brands: Grocery and Supermarkets Australia, Liquor Retailers Australia, and Timber and Hardware Australia.

The new branding assets will be business ready with the implementation of our website and customer relationship management (CRM) systems upgrade.

MGA TMA Website revitalisation

A review of the website has identified several concerns with the existing website infrastructure. The built integration of the website and CRM has presented significant limitations, making it difficult to deliver an engaging valuable experience to members and visitors.

The website is an integral element to energising our brand and with this insight, MGA has commenced a major project to substantially enhance this very important platform. The new website will advance the site navigation and search function, improve the way content is presented, evolve member resources in an upgraded Member Portal, and implement our new brand design. The upgrade will also improve backend functionality and provide insight to how users are engaging and searching for content.

The invigorated website is expected to go live in late 2022.

Operations

CUSTOMER RELATIONSHIP MANAGEMENT SYSTEM

MGA TMA’s customer relationship management system (CRM) helps us manage our relationships and interactions with members, prospects, and other stakeholders. Our existing CRM, integrated with the website, is outdated, and not fulfilling our needs as MGA has grown and evolved. In a dynamic business landscape MGA needs to overhaul our method of operation and implement a CRM that will meet our

new business goals and internal processes that our old CRM has not been designed to realise.

The key functionalities that will support and improve how MGA performs our business are:

» Configured to gather a large amount of critical data, organised, and connected in ways that drive actionable insights.

» Seamless integration with other software and plugins to assist our membership, communications, marketing, and customer service teams perform their jobs efficiently and effectively.

» Connect data centrally with the CRM platform as a single system of truth. Eliminate conflicting or duplicate data, redundant manual entry, and inefficient workflows.

» Deliver reporting and short and long-term pipeline forecasting visibility through accurate and user-friendly tools. Member activities and interactions are easily analysed for MGA TMA leadership to make informed decisions.

» Workflow automation capabilities for key tasks to streamline processes.

» Remote access to the system quickly, easily, and securely, through mobile, email, and web-based channels.

» MGA TMA’s new CRM solution will be tailor designed with the right fields, entities, and workflows in place to drive impact for our business and enable us to best serve members.

Occupational Health and Safety

MGA TMA is committed to the health, safety and wellbeing of our employees, contractors and the public and safeguards related operational activities. OHS is now a standard agenda item at all management meetings and an OHS Committee has been established. We recognise that consultation, communication and cooperation between managers and employees is essential to securing a safe working environment.

In June, MGA TMA successfully completed the closure visit of the WorkSafe OHS Essentials Program, fulfilling OHS documentation and compliance requirements.

27ANNUAL REPORT

Corporate

MGA TMA’s Corporate Partnership program, has continued to deliver strong support for our members and partners alike.

Our Corporate Partners have been through a very changing and uncertain landscape but remain extremely committed to providing support to our industry, which in turn, ensures that MGA TMA can continue to provide the exceptional Legal & IR, Advocacy, Training and support services to our members and stakeholders.

Our Corporate Partner program remains strong, with greater interaction and communication, during this busy, but difficult trading year.

MGA TMA’s Board of Directors, MGA National Liquor Committee and MGA TMA National Timber and Hardware Management Committee, thank our Corporate Partners for their ongoing commitment and unwavering support, which allows our members, small business, and family enterprise to continue to be the ‘hub’ of their community, servicing their customers in a fashion that sets them apart from the opposition in a very competitive retail sector.

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28 ANNUAL REPORT mga.asn.au | 2022 | Annual Report
John Paul Drake with MGA CEO Jos de Bruin in Drakes Warehouse – Nov
2019
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MGA Corporate Partners

DIAMOND GOLD

PLATINUM

SILVER

BRONZE

ASSOCIATE

WAREHOUSE AND BRAND PARTNERS

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tasmanian independent retailers

Industry Sustainability –“A war on waste”

Circular Economy – Waste Management Solutions

a. MGA’s historical joint venture with corporate partner, Aussie Energy to form a “Social Enterprise” company, Australian Circular Economy Solutions Pty Ltd. (ACES) was abandoned by MGA. MGA withdrew from the Joint Venture because of unexpected significant burdensome operational expectations placed upon the MGA team.

b. MGA will continue to educate members on environmental and socially responsible management solutions to help them reduce cost of waste pickups and negative consequences associated with waste being sent to landfills and generally reducing annual quantities of CO2 equivalent gasses into the atmosphere.

c. MGA will continue to share insights with members to help reduce their waste impact on the environment.

d. There are 2 types of waste members experience

i. Organic waste

1. Vegetables and produce - Out of code dairy products (yoghurts, dips & cheeses), meats, chicken, bakery, paper toweling, delicatessen items coffee grinds and cooking oil, wood saw dust, timber off cuts and shavings.

ii. Non-organic waste

1. Plastic soft and hard (pallet shrink wrapping), cardboard, rubber gloves, paper towels, foam vegetable and fruit trays, Styrofoam, plastic punnets, foil etc.

NSW Bin Trim programme

a. The Bin Trim programme ceased in the first half of FY2021 - MGA has been conducting Waste and Energy Audits & Assessments in more than 120 NSW IGA stores, with NSW Government support.

MGA MiPlanet - Planet Friendly Choices Platform

Launched in late 2021, MGA and ImFree formed a joint venture partnership to enable consumers to make planet friendly choices.

The purpose of MGA’s involvement in this world class breakthrough technology initiative is to drive for a competitive point of difference between the giant corporates and the family and private food and grocery, liquor and timber and hardware sectors by attracting conscious consumers to their local family and privately owned businesses. In other wordsDifferentiate then activate Australia’s Independent Grocery Network.

With 56% of Australian Grocery shoppers categorised as Conscious Consumers, MGA undertook a multi-year investigation to develop a differentiated consumer facing program focusing on Sustainability for our membership base of 2,700

national independent retailers delivering over 15 million weekly customer transactions.

MiPlanet is the world’s first Scientifically gamified Carbon Rewards Platform that shifts manufacturers’ back of packet and retailers’ back of store Environmental investments to front of mind consumer purchase discriminators to drive sales and loyalty.

Value Proposition: Planet Friendly Choices that reward you, your family, and mother nature.

MiPlanet is a free to download mobile application that navigates consumers to Planet Friendly Choices on participating products at their local independent food and grocery retailer - and rewards them financially, socially, and emotionally with Carbon Rewards which are micro-measures of authenticated carbon credits credited to, redeemed, and then sequestered by the consumer.

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Consumer Method:

Gamify Carbon Rewards with Prizes and Promotions so everything is Rewarding.

The platform publishes and promotes a scientifically quantified rewards score for the Kyoto and Paris agreement aligned activities, memberships, subscriptions, and efforts made by the product manufacturer and the local retailer which empower consumer knowledge and are attributed in the App as Eco Labels.

MiPlanet has also been engineered to accommodate other community based independent category businesses from Sustainable Hair Salons to Health and Fitness providers.

The MiRewards screen acts as a consumer wallet with direct attribution to Carbon Rewards earned by Eco Label (organisation or activity) as well as aggregated Carbon Rewards earned by product attribution to the manufacturer’s activities, efforts and memberships activating a ‘do good to get good’ gamification and reward for the customer.

The Vouchers sub tab redeems Carbon Rewards for promotional vouchers and competitions which are verified as extinguished from the system and sequestered back to the planet.

MIPlanet Partnerships

MiPlanet has partnerships and collaboration underway with University of the Sunshine Coast (USC), the Food and Agriculture Network, Sunshine Coast Council Economic Development Department, and the Queensland State Government Advance Queensland initiative.

Summary: Actually it is just the beginning.

The MGA has been on a long and deeply committed journey to define our unique role and responsibility to our members, customers and producing partners in line with global sustainability targets.

Whilst we recognise there is no single perfect solution, we believe our role with MiPlanet is to bring our millions of customers together with great independent retailers and world class products and brands whom all share an authentic, quantifiable ambition to contribute positively to arresting climate change for the next generations of our planet.

MiPlanet is our Carbon-based solution that attends to the tough consumer decisions made every day around price, habit, discretion, and household pressures to gamify a financially, emotionally, and socially rewarding experience at our members stores with products and brands that openly and honestly support our customers who seek to make Planet Friendly Choices.

We look forward to all our members, industry friends and stakeholders and the wider local community eco system joining us for this exciting initiative that will securitize the future of independents.

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Industry Training

MGA Industry training is an approved online provider of accredited and non-accredited training in all states and territories. The team manages many member and non-member connections delivering industry-leading, specifically dedicated courses.

COVID-19 presented many challenges for the MGA Training team, including not being able to visit stores to conduct group sessions as is MGA TMA’s usual practice. Through lockdowns and restrictions, MGA Training pivoted and continued to provide quality engagements and sales of courses online. The courses provided flexibility with study online and rapidly increased in popularity

Compliance Corner, a monthly EDM newsletter, provided an essential update in an easy-to-read format, supplying MGA TMA members with ease in navigating the sometimes complex area concerning compliance.

MGA Industry Training will have an exciting announcement soon. Stay tuned.

32 ANNUAL REPORT mga.asn.au | 2022 | Annual Report

Industry Community

Grocery and Liquor Association (GALA)

MGA can report that with COVID-19’s ever changing restrictions and the lockdowns proving challenging for members, supplier partners and the wider industry gathering together in early in 2022 for the MGA GALA Golf Day, was a welcomed event.

The inaugural 2022 Rod Allen Memorial Golf Day was held on the 25 February at the Greenacres Golf Club, Kew, Victoria. This day honours Rod Allen, a prominent Victorian Independent Grocery and Liquor retailer and long serving MGA Board Director (20yrs) and its President (16yrs).

Rod sadly passed away on the 19 September 2019 and led MGA’s Board of Directors to inspire and transform the MGA from a Victorian state-based employer organisation, with 375 members in 2005, into the high-profile national industry employer organisation we know today with over 2650 members.

This year’s event raised over $19,960.00 which was donated to the PANCARE Foundation, one of Australia’s leading charities committed to raising awareness, supporting families and funding research into upper GI cancers including pancreatic, liver, stomach, biliary and oesophageal cancers.

A big thank you to the MGA GALA Committee led by George Kovits MGA and supported by Mark Paladino MGA, Michael Potenza Browns Family Wines, Simon Archer TWE, Peter Wagner ALM AND Helen Maxwell Ritchie’s for all their hard work in making the event the success that it was with over 130 golfers participating.

Thank you to our GALA Committee Patron Fed Harrison who never fails to be passionate about the prosperity of the independent food, grocery and liquor industries.

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Fred Harrison GALA Patron Billy Brownless & George Samios having fun CEO PANCARE Doug Hawkins Heather Allen Fred Harrison presenting 1st Prize Rod Allen Memorial Trophy to CUB Team Heather Allen & Fred Harrison Present 2nd Prize to de Bortoli Team The room looks brilliant 132 people Participants in the Rod Allen Memorial Golf Day February 2022 Green Acres Golf Club Kew Grocery and Liquor AssociationInc.

Timber & Hardware

Timber Product Knowledge Training

MGA TMA has held two Access and Provide Timber and Wood product information courses this year. The training was facilitated by Rob Rule of Timber Training Creswick.

The intense 2-Day course takes participates through the theory in Day 1 and on Day 2, they put theory into practice by attendin a field trip.

Both courses sold out in record time, and the first one was oversold.

The feedback received from participants has been excellent with all being able to apply the practices learned within their workplaces.

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Walking the yard at A.B. Brown Sawmill Drouin West (June course)
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June course participants Course content Visiting Drouin West Timber & Truss (June course) Visiting Drouin West Timber & Truss (June course) March course participants Learning the theory (March course)

Frederick O’Connell Scholarship

Frederick Richard O’Connell was Executive Director of the Timber Merchants’ Association (Vic) in the 1950’s. In his will, he left a sum of money to be used for scholarships for the children of TMA members or children of their employees – thus, the Frederick O’Connell scholarship was established.

The scholarship’s intention is to promote industrial harmony in Australia and to improve relationships between employers and employees within the timber industry. Applications were open to students who have enrolled in or who have already commenced a degree, certificate or diploma course conducted by a Victorian university.

Scholarships are awarded on the basis of good character, personality, academic achievement, and proficiency at sport. The calibre of applications for the 2022 program were very high which made the job of the selection committee tough. Our successful applicants represented the following members:

A.G Brown Sawmill, Bayswood Timber, Bendigo Truss Plant, Dahlsens, Davids Timber, Drouin West Timber and Truss, Lamcal, Mathews Timber

On behalf of MGA TMA, congratulations to all those who were awarded scholarships.

MGA TMA Industry Breakfast

After two and a half years of COVID lockdowns and restrictions, it was great that MGA TMA could return to face-to-face events and host our industry breakfast on June 22.

Members and industry connections attended the event which was held at ‘The Views’ function centre in Port Melbourne. It provided a picturesque venue as delegates arrived just in time to see the sun rise over Port Phillip Bay while enjoying their breakfast. It was fantastic to see everyone warmly greet familiar faces and have in person introductions to new connections. There were handshakes a plenty around the room – much better than the online platforms we’ve adjusted to using.

Attendees heard from Marie-Claire McKiernan, MGA TMA’s National Membership Manager, President of the MGA TMA Management Committee, Peter Alexander, and First Super’s Tony Papantoniou before the presentations from our two guest speakers.

We were lucky to have Tim Woods from Industry Edge and Craig Kay of Tilling Timber present.

Tim covered Australia’s current demand and supply issues, how inflation suppresses demand, the impact of low population on the

36 ANNUAL REPORT mga.asn.au | 2022 | Annual Report
Tim Woods from Industry Edge

industry, finding the bottom of the market and finished off with the outlook on timber supply and pricing.

Craig’s content addressed LVL Australian Standards and National Construction Code (NCC) compliance.

After a significant hiatus from events thanks to COVID-19, it was great to be back together in a face-to-face setting, and we are excited about further networking opportunities for members in the future.

Advocacy: MUA Strikes

In late 2021, we were contacted by a member who expressed their concerns with the Maritime Union Australia (MUA) strike actions affecting Australia’s wharves. With conditions already difficult enough for our members, this was creating another level of complexity for them to address supply issues.

We contacted a number of federal and state government ministers with our concerns and the vast majority replied back saying that they were monitoring the situation.

In particular, Senator Michaela Cash noted how important maritime transport is to the Australian economy and our businesses. She said that if she needed to personally get involved to resolve the situation, she would. Thankfully it did not come to that.

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Craig Kay presentation Breakfast before the presentations Guest speaker, Craig Kay from Tilling Timber

Advocacy: Russian Timber Imports

Whilst it has been horrible to hear the news and see the images coming out of Ukraine with Russia’s invasion, there was concerns from one of our large timber members, of the impact that potential sanctions against Russian timber imports may mean for their business and their customers.

We contacted a number of federal and state government ministers with our concerns and the vast majority replied back saying that they were monitoring the situation.

Our first involvement was to ensure that timber imports from Russia were not banned. This was successful.

The next announcement made was that a 35% tariff would be imposed on Russian timber imports. The Government’s decision was due to come into effect quite quickly. As our member already had stock on the water and orders in the system, this would have affected them significantly.

With our connections to the then Treasurers office, we had discussions with key staffers and said that we were not opposed to the tariff but requested that it exclude orders already placed and in transit. We were advised shortly after, that the tariff would come into effect at a later date and existing confirmed orders would not be impacted. A great result for our member and the customers they serve as costs were able to be kept to a minimum.

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MGA TMA Management Committee L-R Front Row : David Caroselli, Clive Dossetor, Mike Drew. Second Row: Peter Bennett, Marie-Claire McKiernan (MGA TMA Membership Manager). Top Row: Richard Hill, Peter Alexander (President)

Notes:

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NATIONAL mga.asn.au | October 2022 | Edition 5 40 LIQUOR NEWS CONNECT WITH US mga.asn.au | admin@mga.asn.au | 1800 888 479 © 2021 Master Grocers Australia Ltd.
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