IR SEPTEMBER 2016

ISSUE 6 | SEPTEMBER 2016

YOUR INDUSTRY NEWS PROVIDED BY MGA INDEPENDENT RETAILERS

THE 2015/16 ANNUAL REPORT

1800 888 479 • www.mga.asn.au National National SupportSupport Office •Office 1800 •888 479 • www.mga.asn.au

NEWLY RELEASED

77109T04

INSTINCT LED YOU HERE

T H E R E F I N E D F L AV O U R S O F C O O L C L I M AT E V I C T O R I A

Contents Our Mission

The mission of MGA Independent Retailers is to deliver the best possible industry specific business support services to independent grocery, liquor, hardware and associate store members.

Industry News

MGA National

13 JC’s Quality Foods – An Australian success story

Support Office Suite 5, 1 Milton Parade, Malvern, Victoria, 3144 P: 03 9824 4111 • F: 03 9824 4022 admin@mga.asn.au www.mga.asn.au Freecall: 1800 888 479

Retailer Directors Rodney Allen (President) – Victoria Andrew Bray – New South Wales Michael Daly – Victoria Gino Divitini – Western Australia Grant Hinchcliffe – Tasmania Steve Miller – Victoria Chris dos Santos – South Australia Debbie Smith – Queensland Cover: Lubna Koudos, Tony Leon, Steven Cain, Anthony Abdallah and George Argiriadis

5 CEO Welcome

6

2016 Annual GALA Ball

9 MEMBERS: Are you maximising your benefits with MGA? 10 LIDL Supermarkets: Are they coming to Australia?

15 Refrigeration firm focuses on independent supermarkets 17 The new eftpos – making CHQ and SAV payments easier for your customers 19 SPAR 2016 Trade Show 19 2016 SPAR Retailer of the Year Awards 21 Metcash announces acquisition of Home Timber and Hardware Group 21 ACCC accepts Metcash undertaking paving way for Home Timber bid 22 Supermarket fan upgrade leading to big savings 23 A notification from the ATO concerning Tax File Numbers (TFN)

Liquor News 25 No liquor license fee increase for ACT off-premise stores with purchases under $3 million 25 De Bortoli Wines hosts MGA Liquor Committee meeting 26 Around the World – liquor news 27 Growing your sales during peak selling periods 28 Michael McShane, Managing Director of Brown-Forman Australia to retire 29 CUB CEO Ari Mervis leaving business

Chief Executive Officer

29 New Minister for Consumer Affairs, Gaming & Liquor Regulation in Victoria

Jos de Bruin 03 9824 4111 jos.debruin@mga.asn.au

32 Deer Park Bottlemart wins back 2 back Victorian Store of the Year award

32 TWE doubles net profit after tax and earnings per share in financial year 2016

Legal and HR

Corporate Partnership & Media Sales

34 Shelf fillers (night fill) employees v shift workers

Steve Sellars 0407 399 240 steve.sellars@mga.asn.au

39 Changes to annual leave in the General Retail Industry Award

Editorial and Production production@independentretailer.net.au

Follow us online:

35 The fight to make casual employees permanent is on 37 Red Tape Review launched with Small Business Festival Victoria 35 Name and shame boards

Training 40 Country of origin food labelling 41 RSA training 41 Food safety training – Launceston, Tasmania 41 Safe Work Instructions (SWI)

www.facebook.com/ MGAIndependentRetailers

Annual Report

www. twitter.com/MasterGrocers

45 Annual Report 2016

MGA Corporate Partners D

Diamond British American Tobacco Australia

Platinum

Gold

Silver

Bronze

Associate

Warehouse and Brand Partners

tasmanian independent retailers

August 2016 - Edition 5

CEO Report

5

CEO Welcome Welcome to MGA’s Annual Report edition of the Independent Retailer magazine. As we go to print we can say that we have a majority Coalition Government in place that must work very hard with the crossbenchers, particularly in the Senate, to expedite its policies and election promises. MGA will work very closely with all members of parliament to ensure all members’ views are being heard and acted upon.

Contained within the magazine is MGA’s Annual Report for Financial Year 2016. Please refer to MGA’s website for the full written Annual Reports and the Financial Reports. MGA has had a challenging 2016 financial year, particularly with the Federal and State governments withdrawing employer training incentives. MGA has made the necessary structural and operational changes accordingly in preparation for the next year.

MGA is hopeful that the Harper Competition Policy Review recommendation to strengthen section 46 with an effects test, is one of the first Bills to be presented to both houses of Parliament and passed into legislation. We cannot wait for this to occur….it has been a long journey, travelled by many!

The ACCC approved the Metcash acquisition of the Home Hardware group thus further strengthening the independent hardware retail sector. MGA looks forward to working with the retail hardware industry to further grow its membership.

I would like to take this opportunity to thank the former Minister for Small Business, Hon Kelly O’Dwyer, for her tireless engagement efforts with small businesses around Australia and her strong contribution in supporting a very favourable May budget along with the competition law reforms MGA has been seeking. MGA also wishes to thank Australia’s Treasurer Scott Morrison who is also the Minister responsible for competition matters for his very positive contribution to the Competition Law reform debate.

MGA welcomes new Small Business Minister Michael McCormack. Michael is a National Party MP representing the seat of Riverina. It is unfortunate we do not have a Small Business Minister in the cabinet as has been the case for the past 4 years, however, MGA has been assured that there will be numerous cabinet members that will be very much representing Michael McCormack small businesses in the cabinet.

MGA’s Legal and HR Team continues to work hard assisting members with their day to day employment law needs. Please don’t hesitate to call the team if you have a workplace issue.

MGA is yet to hear a result from the Fair Work Commission hearings concerning the reduction in Sunday penalty rates from 100% to 50%. More cannot be done, we simply await and hope for a positive outcome.

Members are encouraged to see MGA’s new online training courses and Safe Work Instructions packages – simply log on to www.mga.asn.au.

Until next edition – good selling.

Jos de Bruin CEO – MGA Independent Retailers

MGA’s Grocery and Liquor Association Ball – August 2016

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6

Industry News

2016 Annual GALA Ball On Friday 19 August, the GALA committee hosted another hugely successful event, the annual “Rio Carnival” GALA Ball, held at the Atlantic Receptions, Docklands, Melbourne.

Over 400 independent grocery, liquor and hardware retailers, suppliers and industry stakeholders and Reach corporate guests attended.

Due to unforeseen circumstances Ian Morrice, GALA Patron & CEO Metcash Australia and Jos de Bruin, CEO of MGA Independent Retailers were unable to attend. In their absence, Rod Allen, President of MGA, warmly welcomed everyone to this unique industry event. He thanked the GALA Committee and all those in attendance and particularly thanked our industry suppliers for their generosity in supporting this event and for being an integral part of the success of this event.

Mark and Claudia Laidlaw

Melanie and Dean White

Chris Naish and Steve Sellars

Desma and Robert Harrod

Thank you to our major supporters for the evening; Lion, Holden, Bacardi, Atlantic Group, Dynamite Printing, Interhampers and Helping Hand.

We would like to take this opportunity to thank Carl Salem for his outstanding role as MC. The Brazillian Dance Troup from Just Weddings Entertainment, the band on the night, Big City Beat, were spectacular and Stephen Smith from Marshall White & Co Real Estate Brighton, raised plenty of funds in his excellent role as auctioneer.

All proceeds from the evening go to the Reach Foundation that continues to support the well-being of young people across Victoria and NSW by providing a safe space within their programs to have authentic conversations and build resilience to deal with life’s challenges.

We were lucky enough to have Reach’s new CEO Chris Naish and James ‘Jimmy’ Rogers (Reach Facilitator) take to the stage to explain what it has meant to have the support of the industry behind the foundation and why the work of Reach is, and continues to be, a need for Australian youth.

As always the raffle, silent auction and the main auction were exceptionally well supported on the night. All proceeds from the evening go to the Reach Foundation to help conduct a variety of vital youth programs and providing the professional services of a social worker. Proceeds from the evening totalled $55,000. Congratulations to all concerned, particularly the GALA Committee.

September 2016 - Edition 6

Back row: James and Angelo Giannetta Front row: Alex and Sarah Giannetta with Jonathon Zachariou

Industry News

Murray and Shelley Gniel

Dom and Igina Piperno

7

Donna Ingpen, Fred Harrison and Susan Sharp

Main auction item, Holden Spark

Pauline and Phil Ibbotson

Colin and Christine Potter

Steve Howe and Jenny Waters

Lubna Koudos, Tony Leon, Steven Cain, Anthony Abdallah, George Argiriadis Chris Burnett, Peter & Julianne Wagner, Sophie Went & Michael Henderson

Tony and Donna Ingpen

James “Jimmy� Rogers, REACH

Some of the silent auction items

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Industry News

9

MEMBERS: Are you maximising your benefits with MGA? Legal and HR

Unlimited advice when needed for your membership fee – no ongoing charges! Seven days per week, 7am to 10pm AEST. We can assist with advice on all your employment matters along with commercial leases. Documents, policies and templates are all available with your membership.

Advocacy and Representation

MGA tirelessly lobbies on behalf of the independent retail sector.

What affects you effects us! Visit our website to see the latest news and submissions.

Wins for our members: Effects test; Repeal of carbon tax; Petrol shopper dockets, Red Tape Reduction to name a few On the go: Productivity review; Modern awards; Sunday penalty rates; Trading hours; Competition laws; Tobacco; Alcohol; Red tape – fighting being a compliance business instead of a retailer; Inappropriate planning and development.

Strong associations with: Politicians – local, state and federal; FWC and ACCC

Communications

We’re your ears and eyes! MGA will let you know via e-Checkout or e-alerts all of the important news you need to know. Don’t forget our magazine that keeps you up-to-date with industry news.

Training

MGA provides accredited training in the areas that matter to you.

Certificate III and IV in retail management, along with online and face to face compliance training in RSA, Food Safety and WHS. Coupled with this is our face to face compliance training either inhouse or at nominated venues. We also have Safe Work Instructions on 15 topics. Coming soon, Customer Service, Leadership and a host of other training courses.

Don’t forget to log in to the member part of our website for your member discounts! www.mga.asn.au

Member Benefits

From electricity to insurance, mobile phone plans or banking – MGA gets the best deals for our members!

For more information call MGA on 1800 888 479 or visit www.mga.asn.au

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10

Industry News

LIDL Supermarkets: Are they coming to Australia?

Themed catalogues – Italy

For the benefit of members MGA felt it was time to give members a brief overview of the LIDL supermarket operation.

For a number of years now it has been rumored that massive German grocery and general merchandise retailer LIDL is coming to Australia.

Some commentators have said, not “if” but “when”. Insiders are claiming that the group will not open any stores in Australia until 2018/19 which will be after the rollout of their US stores.

LIDL has already trademarked 500 brand names in Australia, including its own, and there have been reports of it investigating logistics and distribution options. Like its discounting rival ALDI, LIDL is a very low cost operation, is very agile and quick to respond to the marketplace.

It is rumoured the group who has been talking to commercial real estate companies in Australia was also looking at several Masters locations where Woolworths is set to relinquish a lease.

General

Italian

Spanish

LIDL’s business model is very similar to ALDI, stocking a maximum range of private label groceries, fresh food, chilled and frozen foods and of course, general merchandise. Some would say LIDL and ALDI are the same! LIDL’s stores are larger than an ALDI site and while predominantly carrying private label products, they offer a fixed range of appliances, general merchandise, apparel and brand name products. All at very low prices.

In regard to general merchandise, both ALDI and LIDL sell house brand appliances and consumer electronic goods with both companies now holding more than 11% of the European appliance market.

LIDL store

Packaged liquor

House and national brands – confectionery

House and national brands – health and beauty

Cleaning goods

Beer

Poorly presented fresh food

Spirits

House and national brands – health and beauty

September 2016 - Edition 6

Industry News

11

The Schwarz Group, owners of LIDL, are the fourth largest retailer in the world as named by Deloitte, operating across more than 10,000 stores across 28 counties and generating more than $US100 billion in sales every year — substantially more than Australia’s Coles, Woolworths and independents put together.

Customers pack their own groceries at the cash register.

This presents a terrific opportunity for our members around Australia. Whilst we acknowledge that ALDI and soon to come LIDL are formidable competitors on price we also know they have many deficiencies.

LIDL displays stock on pallets so they can be moved in quickly.

Non-food items are sold, plenty of in-house brands are on offer and only a small handful of staff work at each store in expenditure cutting attempts.

What don’t LIDL do?

Many new stores include bakeries which make and sell fresh baked products. LIDL also sources locally made products in all of its markets, including house brands.

Weekly handbills with specials are distributed to the community and every month,LIDL has a themed “country of origin” week where all the foods of a particular country such as Spain, Italy, Holland and so on are featured in the stores.

Owing to LIDL’s low cost approach and minimal staff employed, retailing and merchandising standards and cleanliness in the stores are continually challenged.

They don’t stock major national brands which consumers want, they don’t present their fresh food offer very well, half the store is filled with nondescript cheap general merchandise, they are often out of stock of key items, they contribute very little to the communities they trade in, they don’t pride themselves on cleanliness and friendly customer service... In fact customer service does not exist – there is little or no engagement by staff with its customers.

The opportunity

Independents have a real opportunity to do what ALDI and LIDL don’t do and that is offer product range and choice, value for money, community involvement and exceptional customer service. This is a very strong point of difference the independent supermarket and liquor sectors have over their competitors.

Fresh chicken

General merchandise

Frozen food

Beer kegs next to water

Paper goods

Fresh meat

In house bakery

Pack your own groceries

General merchandise

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12

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Industry News

13

JC’s Quality Foods – An Australian success story JC’s Quality Foods founder Joe Cannatelli grew up on an apple and pear orchard in Melbourne’s south east, where his parents ran a 7-day a week fruit shop. It was during these tough beginnings that Joe developed a love of independent retailing and fresh produce, including nuts.

In 1994 Joe established the business from the rear of the fruit shop selling fruit bars out of his parents’ 1980 Commodore. Since that time Joe has gone on to establish JC’s Quality Foods as one of the nation’s largest suppliers of nuts and dried fruit to the Independent and route trade, expanding the company’s footprint both locally and across the Asia Pacific region.

Driven by a relentless commitment to his core values of product quality, customer service, and value for money, Joe is showing no signs of slowing down any time soon, with the business now building a greater

presence in export, foodservice, online and vending channels.

“Our beliefs are simple”, said Joe. “We believe that everyone should have access to wholesome nutritious food, whether they are in a supermarket, a petrol station, a convenience store or standing in front of a vending machine. Our goal has always been to create products made from natural ingredients which we source from family growers and specialist producers, something that is very important to us as a family business”.

JC’s is about to embark on a full rebrand of its entire range of nuts, dried fruit and legumes to not only deliver improved stand out in store but also communicate the company’s ethos and commitment to supporting local retailers. “Our new direction is about more than just packaging though”, said Joe, “it’s a restatement of our

core values and our ongoing commitment to providing high quality, nutritious products to our consumers, while ensuring a fair go for independent retailers.“ The new JCs packaging will start appearing in stores from early September.

www.mga.asn.au

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AUSSIE

NRG

Industry News

15

Refrigeration firm focuses on independent supermarkets The focus of a Melbourne-based refrigeration company on the independent supermarket sector is producing a positive outcome for all concerned.

profile dairy cases which gives it a nice open feel and a new section of glass door freezers for frozen seafood.”

Kristan Wood, the managing director of Allstate Refrigeration Services, said: “The aim of our company is to grow our independent supermarket client base.”

Gisborne FoodWorks store owner David Williamson, whose family has operated the business for almost 40 years, said he switched to Allstate because he was looking for a larger refrigeration firm after initially using single or two-man operations.

“We are at the forefront of the latest trends and practices working with the chain supermarkets and want to bring that knowledge to the independent market.”

“Allstate is a very professional company. They deliver when they say they will deliver and they have good quality workmanship as well,” David stated.

Allstate is a commercial refrigeration company offering a wide range of refrigeration and air-conditioning products and services for supermarkets and commercial premises in the Melbourne metropolitan area and Victorian country regions.

Gisborne FoodWorks has also adopted Allstate’s preventative maintenance program.

Their clients include supermarkets, liquor stores, fuel sites and nursing homes.

Kristan said: “We work with companies that have invested a lot of time and money on research on energy efficient equipment and the latest technology.

“We’ve never had a preventative maintenance program in the past, but when Allstate came on board they recommended that we use their program as a precaution. We now use the program every three months,” David said.

For further information or a quotation phone Kristan Wood on 0411 605 203 or 1800 44 17 18 or visit allstaterefrigeration.com.au.

By Peter Wharton.

“Most independent supermarkets don’t really have the budget to do it, so we’re trying to bring the knowledge that we have over to the independent market.”

One of the first of the independent supermarkets to take advantage of the expertise of Allstate Refrigeration is Gisborne FoodWorks, a 2000 square metre store employing 130 full-time, part-time and casual staff.

The delicatessen and bakery section comprising 200 square metres underwent a complete refurbishment early last year with the refrigeration component fully installed by Allstate.

“We installed new Arneg deli cases which are square fronted to give it more of a modern look,” Kristan said. “We’ve also installed low

David Williamson, FoodWorks and Kristan Wood, Allstate Refrigeration

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www.mga.asn.au

16

Industry News

Get Getsome someAsk dough dough your with withyour yourbread. bread. customers to & press && Press Press to get cash out and every everyday dayin-store in-store avoid ATM fees. to toget getcash cashout outand and avoid avoidATM ATMfees. fees.

CHQ CHQ

SAV SAV

eftpos is a great way to give your customers added value with their everyday purchases. The more cash they get out from your store, the less cash you will have on the premises, helping to reduce the cost and risk of doing business.

September 2016 - Edition 6

Industry News

17

The new eftpos – making CHQ and SAV payments easier for your customers eftpos has provided merchants with a safe, secure and reliable way to accept everyday payments since the mid-1980s and is now upgrading its technology to make it easier for your customers to make secure CHQ and SAV transactions on new platforms.

In 2014/15 Australians made more than 2.3 billion eftpos transactions, worth more than $140 billion. This is equivalent to an average of more than 6 million eftpos CHQ and SAV transactions a day at around 900,000 terminals.

However, in a world of mobile phones and internet browsing, Australians are changing the way they shop and pay, and eftpos is evolving its technology to meet your needs. eftpos is in the midst of a transformation which aims to deliver the infrastructure and technology needed to provide eftpos CHQ and SAV transactions to consumers and merchants on platforms such as eftpos Chip cards, Online and Mobile.

To mark these changes eftpos is also reinvigorating its brand, with a new tagline, “Helping with everyday”. You may have seen some of the new advertising on buses, bus shelters and in supermarkets, promoting key benefits such as cash out, real time and security. eftpos is also continuing to actively promote retailers as a major supporter of both MGA Independent Retailers and the Australian Retail Association.

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www.mga.asn.au

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Industry News

September 2016 - Edition 6

Industry News

19

SPAR 2016 Trade Show The SPAR Group of Australia held its annual Conference and Trade Show and the Retailer of the Year Awards evening at the Gold Coast Exhibition Centre on 28 to 30 July. This year’s theme, “The Power of Passion”, represents the next key focus area for the SPAR business.

The MC for this year was the talented Peter Thurin. Peter has owned and run several successful Melbourne pharmacies over 20 years, written a book on excellence, represented Australia twice internationally in tennis, was the chairman of the match committee of one of Australia’s largest junior Australian Rules football clubs and achieved a third Dan blackbelt in taekwondo.

The Trade Show was held over 2 days and was attended by national and local suppliers. There was a vast array of products on show and all the booths were enthusiastically visited by retailers from ACT, NSW and Queensland. There were many opportunities for retailers to make deals and obtain information about exciting new products or learn more about products that are already available on the market. Retailers also learned about exciting new developments particularly in technology and it was an opportunity for city retailers to catch up with country colleagues who came from distant parts of their states to be together at the Expo. There was an atmosphere of excitement generated by the availability of new ideas and stories of retailers who work hard in their stores and achieve success in the running of their SPAR businesses.

Marie Brown – MGA with Miles Hedge – Chairman, SPAR

Marie Brown – MGA with Lou Jardin – Managing Director, SPAR

David Grey-Smith – MGA with SPAR retailers

Lou Jardin – Managing Director, SPAR

MGA certainly enjoyed the opportunity to be with our SPAR members on these 2 days. The MGA booth was staffed by Marie Brown, National Legal Counsel and David Grey-Smith, Training Coordinator. Both Marie and David welcomed the many enquiries that were asked of them in relation to MGA’s legal and HR services and our training opportunities. But it was also a great opportunity for Marie and David to just be in contact with our SPAR members and to meet them face to face in such a relaxed and stimulating environment. MGA looks forward to attending the SPAR Expo next year and we hope our SPAR members will be as equally enthusiastic as we are about catching up with them again in 2017.

2016 SPAR Retailer of the Year Awards

Bob Little and Debbie Yates – SPAR Bob Little, Drew & Lois Westcott – 5 Maclean with Lou Jardin, MD SPAR STAR Hughenden with Lou Jardin

The prestigious SPAR Retailer of the Year Awards evening was attended by over 300 guests and celebrated the successes of SPAR Australia Retailers over the past year. Guest speakers on the night were SPAR Australia Managing Director, Lou Jardin and retiring SPAR Australia Chairman, Miles Hedge. Congratulations to all the winners!

Overall SPAR Retailer of the Year Award SPAR Maclean

Store of the Year:

5 STAR Store of the Year:

Express Store of the Year:

Affiliate Store of The Year:

SPAR Maclean

SPAR Express Terrigal

5 STAR Hughenden

Lambton Grocer

Bob Little, Jason Parrelli – SPAR Express Terrigal and Lou Jardin

Miles Hedge – Chairman, SPAR Australia Ltd

www.mga.asn.au

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Industry News

21

Metcash announces acquisition of Home Timber and Hardware Group Metcash Limited announced on the 24th August that its wholly-owned subsidiary, Mitre 10 Australia Pty Ltd, has entered into an agreement with Hydrox Brands Pty Ltd, to acquire 100% of the Home Timber & Hardware Group (HTH) for cash consideration of $165m.

HTH is an integrated hardware wholesaler and retailer, with over 1,200 stores in its network and strong retail brands including Home Timber & Hardware, Thrifty-Link, Hardings and Hudson Building Supplies.

The national store network comprises 43 company-owned stores, 363 bannered independent stores and an additional 865 unbannered stores. These are supported by four distribution centres: two in New South

Wales, and one in both Victoria and Western Australia.

Under the terms of the agreement Metcash will not acquire two loss-making stores or the Dandenong (Victoria) distribution centre, which is surplus to the requirements of the combined entity going forward.

Metcash Group CEO, Ian Morrice, said: “Both Mitre 10 and HTH are passionate about supporting independent retailers.

The combination of the two businesses will mean that Metcash’s hardware business will have a turnover of ~$2bn. This increased scale, together with the opportunity to realise significant efficiencies, will enable us to be more competitive and deliver a better outcome for both our hardware retailers and their customers.”

“The interests and values of Mitre 10 and HTH retailers are closely aligned. Our objective is to continue to build successful independent retailers and grow a vibrant independent hardware sector, for the long term.” Mr Morrice said. Source: Metcash.com

ACCC accepts Metcash undertaking paving way for Home Timber bid The Australian Competition and Consumer Commission will not oppose a bid from Metcash to acquire rival hardware wholesaler Home Timber & Hardware from Woolworths after accepting a court-enforceable undertaking from Metcash.

In response to ACCC concerns, Metcash proposed an undertaking stipulating it would not restrict independent hardware stores from acquiring products from non-Metcash sources, nor would it favour its own hardware stores over nearby independent stores.

The ACCC has accepted this undertaking as a condition for allowing the bid to proceed. The ACCC has considered responses from a broad range of hardware businesses to the undertaking, its ability to enforce it, and ultimately, the impact of the proposed acquisition on the multi-billion dollar hardware industry.

“The decision not to oppose this bid was finely balanced and one the ACCC has given deep consideration to,” ACCC Chairman Rod Sims said.

“We looked at the competition issues surrounding Metcash acquiring its only rival full-service wholesaler. We received significant feedback from independent retailers. The majority were supportive of the bid, but we also took on board feedback from others who expressed some genuine concerns.”

“Bunnings is a large, powerful retailer that is present in most local markets, which will indirectly constrain Metcash’s wholesale operations – a factor we also took into consideration,” Mr Sims said.

“We decided to accept Metcash’s undertaking, which should provide independent retailers with the ability to bypass Metcash by using buying groups or negotiating directly with manufacturers. This should also facilitate entry by any new wholesaler that may emerge,” Mr Sims said.

“Metcash has also undertaken not to discriminate against independent hardware retailers in favour of its own stores.”

An independent auditor, who will report to the ACCC, will ensure Metcash is meeting its obligations outlined in the undertaking.

Metcash will also be required to give retailers plain English information on its obligations.

Retailers can contact the ACCC if they have concerns about Metcash’s compliance with the undertaking. Retailers trading under the Home Timber & Hardware, Thrifty-Link, True Value Hardware or Mitre 10 banners can decide to leave those brands and establish themselves as an unbannered, independent retailer.

The undertaking prevents Metcash from ‘locking out’ existing or new wholesalers from supplying those retailers. Source: ACCC

www.mga.asn.au

EC U

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Industry News

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September 2016 - Edition 6

Industry News

23

A notification from the ATO concerning Tax File Numbers (TFN) The ATO has some good news for any MGA members hiring new staff.

The Tax File Number (TFN) declaration form is now available from the ATO’s website – ato.gov.au/TFNdec – where it can be downloaded or filled in online. The ATO encourages all MGA members to take advantage of the new forms.

Gone are the days of ordering and storing hard copies of the TFN form. Now employers will always have the latest version on hand.

Data security is serious business. From archiving financial records to sharing potentially game-changing innovations to contacts across the world, it is understandable why some business owners could be hesitant to move their work processes into the virtual frontier.

They can even prefill company information and email the form to new employees.

If you have any questions or would like more information about other tax-related topics, feel free to get in touch with the ATO. Website: www.ato.gov.au

to you. Protecting your data can be stressful, but through Dropbox you can keep your data safe – giving you the confidence to stay connected and competitive in the fast-changing world of small.

Cloud storage leader Dropbox have raised the bar on data security. Dropbox for Business allows you to securely sync and store an unlimited amount of business data. And have greater control as you can decide which files can be accessed by who.

Vodafone Australia is passionate about helping small businesses embrace technology and work smarter. That’s why they’ve selected a range of apps to purchase that remove the hassle of admin and enable businesses to become more agile, better connected to their employees and better engaged with their customers.

Dropbox works through layers of process designed to secure your data, even when on the move. And though an optional feature, you can add an extra layer of security by having a security code texted

To find out how you can get up to $10 a month off Access fees on selected Business Red 24 month plans, plus a 2 month free Dropbox for Business trial visit vfau.co/MGA

www.mga.asn.au

24

Industry News

Mountain Goat started out as Dave’s weekend homebrew project in a suburban Melbourne backyard when a postcard turned up from his mate Cam who was backpacking overseas.

Cam had just discovered good beer in Vancouver and decided Melbourne needed good beer too. This was back in 1997.

So Cam and Dave had a great idea but no money to build a brewery. They were knocked back from every bank they approached but

Drink Responsibly.

September 2016 - Edition 6

luckily, with a little help from friends and family, they prevailed and Mountain Goat was soon tapped at a few local pubs.

Today, almost 19 years later, Mountain Goat is now found nationally and the brewery and bar still operates in the back streets of Richmond, with a lineup of old favourites on tap and constantly changing limited releases and barrel aged beers.

From Steam Ale, one of Australia’s first organic beers, to the refreshing Summer Ale and Pale Ale, through to the complex malt characters in Hightail Ale and Fancy Pants, there is a Mountain Goat beer for everyone.

To place an order for Mountain Goat please contact your Asahi Premium Beverages representative or call our customer service team on 1800 090 378.

goatbeer.com.au

Industry News - Liquor

25

Liquor News No liquor license fee increase for ACT off-premise stores with purchases under $3 million Since the release of the ACT Government’s White Paper recommending a 25% increase in license fee for all off-premise stores with annual purchases of $1 million or more MGA Liquor has been lobbing the ACT government opposing the increase.

During the lobbying process MGA held meetings with the ACT ALP Secretary Mathew Byrnes, ALP Deputy Chief of Staff Michael Cook, ACT Attorney General Simon Corbell, Leader ACT Greens Shane Rattenbury MLA, and Leader of the Opposition Jeremy Hanson MLA detailing the consequences of imposing the additional 25% fee increase on small independent family business. The ACT already has the highest liquor license fees in Australia!

off-licenses’ with annual purchases of $3 million per annum. This means that the majority of ACT off-premise licenses will not be subject to the proposed 25% increase.

This is a great result for our members!

It was the position of MGA Liquor to continue on a consultative approach with government until a favourable result was reached, rather than a public campaign.

MGA in particular would like to Peter Karkazis thank Peter Karkazis, MGA’s ACT Liquor Advisory Board representative, for his help in addressing this matter. Peter’s analytical analysis of the liquor license fee structure in the ACT and his tireless lobbying work using that analysis was the reason Government have agreed to hold fees at their current level for our members.

MGA is now pleased to advise that ACT Chief Minister Andrew Barr MLA has confirmed to us in writing that the proposed 25% fee increase would only apply to ‘high volume, big-discount

MGA will continue to keep members updated through our e-Alerts, should you have any queries or need further clarification please do not hesitate to contact us on our national help line 1800 888 479.

De Bortoli Wines hosts MGA Liquor Committee meeting On Thursday 7th July De Bortoli Wines kindly hosted the MGA Liquor Committee meeting at their Yarra Valley Winery.

The meeting agenda covered many issues facing our members including; • Fair Work Commission Sunday Penalty Rate Submission • Liquor & Gaming NSW Liquor License Freeze extension until 19th February 2017 • ACT Liquor Reform White Paper recommendation to increase off-premise license Fees x 25% • LCAC review of alcohol advertising & promotions and RSA training in VIC • Introduction of a Container Deposit Scheme in NSW commencing 1st July 2017 • Review of the South Australian Liquor Licensing Act 1997 by Hon. TR Anderson, QC recommending to

Government; for the introduction of Packaged Liquor Licenses in SA. MGA’s Liquor Committee meets eight times a year and welcomes the attendance of members. The meeting schedule can be viewed on our website www.mga.asn.au.

Should any member have any queries on any of these issues, please contact the MGA Liquor National Support Office on 1800 888 479.

On behalf of the committee we would again like to thank our generous host De Bortoli Wines and in particular David Seymour, State Manager VIC / TAS.

www.mga.asn.au

26

Industry News

Around the World Axe-throwing club wants a liquor license Organizers of a special axe-throwing league in Canada say they’d like to make the experience even more fun – by getting a license to serve alcohol.

The Backyard Axe-Throwing League brought in a safety expert to its six locations in Ontario within recent months, the newspaper reported. “We received glowing

reviews on the safety to go ahead with the application for the liquor license,” CEO Matt Wilson said.

Wilson emphasized the club’s near-spotless safety record. “In 2014, we had 100,000 new visitors... Nothing has ever happened to any of the guests while throwing the axes.” He told the newspaper that axe throwers sign waivers, and plenty of trainers are on hand.

Over the past five years, the worst injuries were just a few cuts to the hand that came when staffers were sharpening axes, Wilson said.

The league is confident that axe throwers will be able to safely booze it up by the end of the summer. “We want people to leave with a smile, and we’re excited for the upcoming change,” Wilson said.

World’s Strangest Liquors Kvas: This Russian summertime beverage made from fermented cubes of stale black or rye bread is just as widespread as vodka, the country’s other brew of fame. Dating back to antiquity, the traditional drink transcended the classes and was consumed by both peasants and nobles alike. Made by pouring hot water over bread baked into croutons, which are then left to ferment in wooden tubs, the concoction is frequently flavoured with mint, berries, or raisins. Vendors in Russia’s residential neighbourhoods pump the amber brew into jugs from mobile yellow tanks.

The proposed law that could stop Australians going to Bali The head of the Australian Indonesia Business Council (AIBC) has warned a proposed ban on alcohol in Indonesia would be a “huge blow” to its tourism industry.

The bill, introduced by the United Development Party and the Prosperous Justic Party, proposes banning the production, sale and consumption of alcohol across the island archipelago – including Bali.

But Debnath Guharoy, who heads up the AIBC and spent 13 years as the director of Roy Morgan Asia, advised that the ban would be a “major step back” for the highly popular tourist destination.

More than one million Australians visit Bali every year, contributing $1.8 billion to the economy. Viewed by Australians as a cheap island paradise, Bali is also a hot spot for boozed filled blowouts and parties.

Mr Guharoy said a booze ban would not only kill tourism to Bali, but also affect the likelihood of people doing business in Bali.

If the ban is successful, it’s possible tourist areas will be exempt, but Mr Guharoy said the Indonesian government would send a

September 2016 - Edition 6

“conflicting message” by banning alcohol at the same time they were pushing an aggressive new tourism strategy.

“You’ve got the government trying to promote ’10 new Balis’ and wanting to promote the economy using tourism as a platform, it’s completely contradictory,” he said.

The Muslim-majority country is relatively conservative outside of tourist areas, with alcohol already banned in Papua and the port city of Surabaya in Java.

Industry News - Liquor

27

Growing your sales during peak selling periods As we approach the silly season maximising key selling periods can be the difference in having a good or an ordinary trading year for small and medium sized businesses, especially those focused on a specific product, such as liquor.

It is therefore crucial to prepare and plan ahead to ensure that you maximise sales during key trading periods during the year.

When planning, some of the major things you should consider are; 1. Inventory Start by reviewing the prior year’s sales history, and make adjustments for unusual events, such as weather, out of stocks, one

time promotions, etc. Then factor in the appropriate increase or decrease based on your current sales trend and your reading of the sales potential of the categories.

2. Discounts There are two types of discounts retailers can make, promotional discounts and clearance discounts. Planning these discounts go hand in hand with planning sales and inventory levels.

3. Stock Display Maintaining effective merchandised stock displays in the stores hot spots such as on the floor, coolroom and shelves are key to highlighting your driver products and sales.

4. Advertising A consumer promotional lead up advertising campaign is crucial in tying up the instore offer and driving foot traffic to and through your store. It is also important to take advantage of your banner group’s promotional advertising activity when planning your campaign.

Planning takes time, time you may not think you have, but invariably, those independent retailers that take the time to carefully plan their sales and inventory are far more profitable than those that don’t.

St Huberts releases “endeering” Victorian wines – The Stag Treasury Wine Estates (TWE) has unveiled a fresh new tier of quintessentially Victorian wines – The Stag by St Huberts – representing the first major innovation of its Regional Gems portfolio.

Two new elegant, cool-climate style wines with striking label designs are now available for orders nationally – The Stag Chardonnay and The Stag Shiraz.

The premium wines celebrate the noble stag and his connection to St Huberts and open up the brand to a younger generation of consumers aged 28 to 40.

These consumers are looking for quality wine as a given but with an authentic story and personality.

The Stag wines have broad appeal thanks to St Huberts’ winemaking pedigree and capitalise on the trend for cool-climate style wines in Australia – with both premium Chardonnay and Shiraz in growth*.

St Huberts was one of the first wineries established in the Yarra Valley and has an enviable history of producing award winning cool-climate Victorian wines. Established in 1862, St Huberts was named after the Patron Saint of the Hunt – a 7th century nobleman who turned his life around after an encounter with a magnificent stag carrying a shining cross between his antlers.

St Huberts winemaker Greg Jarratt said that just like the noble creature, The Stag wines represent elegance, grace and reverence.

“The Stag Shiraz is medium bodied with spicy, peppery notes and hints of red fruits with darker fruits and supple tannins. The Chardonnay is dominated by vibrant citrus notes and lively acidity – it has a fresh

and evenly textured palate with a feather dusting of oak. They are both wines of substance, however they are not big, overlyripe or oaky wines,” he said.

The release of The Stag Shiraz and The Stag Chardonnay follows the success of The Stag Pinot Noir which St Huberts has produced since 2008, forming a tier of three Stag wines. The 2016 vintage of The Stag Pinot Noir will undergo a pack refresh in the lead up to Christmas to align with the new look and feel. * Shiraz is the largest red wine varietal in Australia growing at 6%, while Chardonnay is growing at 13% in the $16-20 price tier (Aztec Australian Liquor MAT to 01/05/2016).

To speak to a TWE representative about The Stag by St Huberts call 134 893.

www.mga.asn.au

28

Industry News - Liquor

Michael McShane, Managing Director of Brown-Forman Australia to retire After 17 years at Brown-Forman Michael McShane, SVP, Managing Director of Australia, New Zealand and Southeast Asia has announced his retirement effective as of this October.

Starting out as a Financial Manager, before moving to a Marketing Director role and then onto Managing Director.

Under Michael’s leadership, the Jack Daniel’s brand has become Australia’s most valuable spirit brand, based on share and value growth.

Michael holds a deep passion for the industry and is currently Chair of the Distilled Spirits Industry Council of Australia (DISCA) and a Director of Drink Wise Australia, positions he wishes to hold until he finds his next challenge.

Michael has always been a strong supporter of industry organisations and the work they do on behalf of their members and has supported MGA Liquor over a very long period, most recently hosting the February committee meeting at the new Brown-Forman offices in Melbourne.

On behalf of the MGA members, Board and Liquor Committee we extended our thanks and very best wishes to Michael as he seeks out his next challenge.

Michael McShane

American Serve retailer catalogue ad 0816 189x120.indd 1

September 2016 - Edition 6

Brown-Forman have announced Marc Satterthwaite as Michael McShane’s replacement. Marc and his wife Vicki will be relocating to Sydney in September.

18/08/2016 6:09 pm

Industry News - Liquor

29

CUB CEO Ari Mervis leaving business Ari Mervis, the CEO of Carlton and United Breweries will leave the business when AB InBev takes over SABMiller in October.

AB InBev recently announced the details of its 17-person executive team who will run the newly formed brewing giant, Newbelco. The new team is dominated by AB InBev executives and Jan Craps, who is currently the Business Unit President of Labatt in Canada, has been appointed as the Zone President for Asia Pacific South, which includes Australia, New Zealand, India, Vietnam and other South and Southeast Asian countries.

In a letter sent to customers, Mervis said: “As a consequence of the acquisition I will relinquish my position and will be leaving the company at change of control.

“I have been most fortunate to have spent the last 27 years with SABMiller, and have enjoyed a career which has been incredibly enjoyable and rewarding, and has given me and my family the opportunity to live and work in a number of locations across four different continents.

Ari Mervis

“Without doubt, the greatest reward has been the opportunity to meet so many terrific people – colleagues, customers, business partners and peers that I will be privileged to have as friends in the future.”

There is only one SABMiller executive on AB InBev’s new top-17 team in Mauricio Leyva who is currently the MD of SABMiller South America.

So far no announcement has been made regarding the future of SABMiller CEO Alan Clark, but he along with several other key SABMiller executives are also expected to leave when the merger is completed in October.

NE

New Minister for Consumer Affairs, Gaming & Liquor Regulation in Victoria

W

On Wednesday 20th July a delegation from MGA Liquor met with the newly appointed Minister for Consumer Affairs, Gaming & Marlene Kairouz Liquor Regulations the Hon. Marlene Kairouz.

Ms Kairouz was elected to Parliament as Member for Kororoit in 2008 and served as Cabinet Secretary since the election of the Andrew’s Government in November 2014. Prior to entering Parliament, Ms Kairouz worked as a scientist specialising in histology.

Representing MGA at the meeting was MGA CEO Jos de Bruin, MGA Liquor President George Kovits, MGA Committee members and store owners Jeff Harper and Tony Leon. Representing the Minister were Chief of Staff Michael de Bruyn and Advisor Dr Elie Khalil.

The Minister was very interested in hearing about the everyday issues that impacted independent liquor retailers throughout Victoria, in particular the liquor licence fee and trading hour anomalies.

The MGA Board and MGA Liquor Committee look forward to working closely with the Minister and her department on addressing these anomalies and creating a safe and sustainable packaged liquor trading environment in Victoria.

For more information contact your De Bortoli representative or visit debortoli.com.au

www.mga.asn.au

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Industry News - Liquor

September 2016 - Edition 6

32

Industry News - Liquor

TWE doubles net profit after tax and earnings per share in financial year 2016 accelerating momentum across all regions Treasury Wine Estates Ltd (ASX:TWE) announced its annual 2016 financial result on the 18th of August, with Reported Net Profit After Tax (NPAT) and Earnings Per Share (EPS) more than double the previous corresponding period (pcp) with NPAT at $179.4m and EPS at 25.1 cents per share, respectively.

•

•

TWE reported Earnings Before Interest, Tax, SGARA and material items (EBITS) of $342.0m, up 52% on a reported currency basis and slightly ahead of guidance provided on 4 July 2016.

•

Excluding the earnings contribution of Diageo Wine in the second half of 2016 of $33.2m, TWE delivered EBITS of $308.8m in F16, up 37% on the pcp.

•

On today’s result, TWE’s Chief Executive Officer, Michael Clarke commented: “Our F16 result demonstrates that momentum across our business is accelerating. TWE is now delivering consistent earnings growth and margin accretion on a more balanced, sustainable and quality earnings basis.”

In F16, each of TWE’s regions delivered strong results, demonstrating the benefits of having repositioned the business to deliver consistent earnings growth, sustainably.

Michael Clarke, CEO, Treasury Wines

September 2016 - Edition 6

Australia & New Zealand (ANZ) reported EBITS growth of 4% to $92.3m, driven by strong volume growth of TWE’s Priority Brands, outstanding brand building execution and improved price realisation on supply constrained wines Asia reported 40% EBITS growth to $102.0m while also delivering EBITS margin broadly in line with the pcp. Strong volume growth was underpinned by continued optimisation of TWE’s routes-to-market across the region, portfolio diversification and increasing consumer demand for imported wine brands Europe reported EBITS of $47.7m; more than double the pcp. Excluding the Diageo Wine acquisition ($11.3m), Europe delivered strong EBITS growth and margin accretion, despite a reduction in volume Americas reported a 64% uplift in EBITS to $136.3m, reflecting portfolio premiumisation, continued reshaping of TWE’s portfolio, six months contribution from the Diageo Wine acquisition ($21.7m) and favourable foreign currency movements

Michael Clarke commented on TWE’s future prospects: “I am very pleased with our performance in fiscal 2016. We have a refreshed Priority Brand portfolio and momentum is continuing to build across our regions and importantly, our results are being delivered sustainably.”

Industry News - Liquor

33

Deer Park Bottlemart

Joe Marsico and Manager Lina Musico

Deer Park Bottlemart

Deer Park Bottlemart wins back 2 back Victorian Store of the Year award At the recent LMG Victorian State Conference held at the Sheraton Melbourne, and attended by over 200 store members Joe Marsico and his team were awarded the Victorian Bottlemart Store of the Year Award for the second consecutive year. In a hotly contested competion where stores are judged on 10 key performance criteria Joe and his team came out as clear winners.

Joe, this must be a very rewarding achievement for you and your team It was very rewarding receiving the award for the second consecutive year, after twenty five years in the industry and fourteen working with a chain group in varying project management roles, I have found my time in the independent sector the most challenging but also the most rewarding experience I have had in retail.

The awards would not have been achieved without my dedicated and hardworking staff, and in particular my store manager Lina Musico.

Since deregulation of liquor licenses the market is awash with stores, what have you done to differentiate yourself from the competition?

It is no secret that good retailing is all about customer service, store presentation, product ranging and what I have instilled in my team and firmly believe in, the sharing of knowledge about the products we sell. We conduct a lot of instore tastings and engage with our customers so that they understand

the characteristics of what they taste and what to look for in a well-structured wine and for that matter single malt whiskies, we are renowned for stocking the largest range of single malt premium whiskies in the North Western suburbs.

How important is it being part of a banner group for you?

There is no doubt in my mind that every independent liquor store should trade under a group banner. The benefits they provide their members through coordinated and planned advertised promotional activity, instore marketing support and the networking opportunities that they offer, allows us to spend more time on the shop floor serving and advising customers.

So, will you be striving for a 3peat next year?

I believe we have set the benchmark and we will definitely be working towards lifting the bar even higher over the next twelve months, so we will see.

www.mga.asn.au

34

Legal and HR

Legal and HR Shelf fillers (night fill) employees v shift workers Members often ask MGA for information on the difference between a shelf filler and a shift worker, as these employees work late at night. The answer will depend on the times that the employee carries out the work. Once the hours of work are established and the status of the employee is determined then the rates and penalties, if any, can also be determined.

Who is a shelf fillers (night fill) employee?

If an employee completes a shift on the same day on which they started their shift, within the span of hours when the store is open for trading, then the employee will be classified as a retail employee who stacks shelves in other words the employee would be shelf filler or night filler.

Who is a shift worker?

A shift worker is an employee who begins their shift at or after 6:00pm on one day and ends before 5:00am on the following day.

It does not include a shift that starts and finishes on the same day within the span of ordinary hours. An employee who works a shift

September 2016 - Edition 6

outside ordinary hours, that begins and ends on the same day will be regarded as a shift worker and will be entitled to shift worker penalties.

For example, a night filler who starts work at 6:00pm and works until the store closes for trading at 11:00pm, then the employee is not a shift worker but is a night filler. If the store closes at 9:00pm and the employee works 6:00pm until 11:00pm, the employee is classified as a shift worker.

Shift workers receive higher penalty rates ranging from an additional 30% for full and part time employees (an extra 55% for casual employees) for work performed from midnight Sunday to midnight Friday to an extra 50% for full and part time employees (extra 75% for casual employees) for Saturday work, and an extra 100% for full and part time employees (125% for casual employees) for work performed on Sunday.

MGA has an information sheet available on this issue and all members should call Legal and HR on 1800 888 479 (line 1) for a copy or to seek advice.

Legal and HR

35

The fight to make casual employees permanent is on The Fair Work Commission has commenced hearing the claim by several unions to allow casual employees the right to permanency after a short period of “regular” casual employment.

This claim is not just for the retail industry but would affect employees in many other industry sectors, where casuals are employed. The retail industry is one of the biggest employers of casual employees and the right in the retail sector to claim permanency will be available after 12 months “regular” employment, if the applications are successful. In other industry sectors the qualifying period to claim permanency will be after six months.

What does casual employment offer to employers and employees in the retail sector? For retail employers using casual labour provides them with flexibility. Many employers in the retail industry have to utilise their staff across a spread of hours that might be from 6.00am to midnight, and to do this successfully they cannot be bound by strict and rigid rules. For retail employees getting a higher rate of pay for casual hours of work, particularly on Sundays or on a public holiday, is a bonus.

If the employee is locked in to permanent hours then they lose that benefit. There

is also the fact that the base rate is higher than for a permanent staff member, this compensates for payment of holidays and personal leave.

The biggest impact of this proposed significant change to the awards will be on the economy. It has been estimated by the Australian Chamber of Commerce and Industry that the change would result in a loss of “19,000 jobs and a $3.7 billion loss to the economy.”

The Unions have argued that employers exploit vulnerable workers and that the introduction of the right for employees to have permanency is a means of stopping this exploitation.

It has been pointed out that the level of casual labour in Australia is not as high as is being promoted by the Unions. Casual labour in Australia is about 20% of the workforce and that has been unchanged for almost 20 years.

What does this mean for retail employers if the application is successful? It means that if a casual employee has been employed on a regular and systematic basis for at least 12 months then the employee has the right to request a

permanent position. The employer can only refuse if there is an ability to show that the employee was employed on an irregular basis over the last twelve months. Members of MGA are urged that if they want to avoid having to employ casual staff on a permanent basis then they should ensure that their casual employees are employed at different times and for various periods of time – that is, they are employed irregularly as “true casuals.”

The Fair Work Commission will be addressing this issue for the next few months and a decision is likely in early 2017.

The next scheduled Master Class will be located in Perth: Date: 5th October 2016 Time: 9.30am - 4.30pm Location: Comfort Inn Bel Eyre, 285 Great Eastern Hway, Belmont, WA

www.mga.asn.au

Legal and HR

37

Red Tape Review launched with Small Business Festival Victoria The Small Business Festival Victoria was held from 1 August to 31 August 2016 and comprised of over 400 events, workshops and seminars across metropolitan and regional Victoria. The Victorian Government coordinated the festival, through Small Business Victoria, and collaborated with industry groups, private organisations and agencies across three levels of government to deliver the events.

Coinciding with the launch of the festival, the Minister for Small Business, Innovation and Trade, Mr Philip Dalidakis announced that over the next two years there will be a government-wide review to cut red tape and reduce regulatory burden on Victoria’s almost 542,000 small businesses, with the main focus on Victoria’s retail sector. The Victorian Government aims to reduce red

tape by 25 per cent with the review being relied upon to inform decisions about red tape reduction in the future.

With the average small business in Australia spending around five hours per week on red tape, regulatory barriers are having a significant impact on the day-to-day operations of our small business community.

As 95 per cent of Victoria’s retail businesses employ 20 people or less, negotiating the regulatory steps needed for day-to-day tasks, such as putting up a sign or preparing a food safety plan, places tremendous strain on their resources.

MGA will work with the Victorian Government to remove the burdensome red tape that many members are experiencing every day. An issues paper has also been

developed by the Victorian Government and a formal submission from MGA in response to the issues paper will be provided to the Victorian Government in late September. Copies of the submission will be downloadable from our website.

MGA members are strongly encouraged to complete the survey set up by the Victorian Government to establish a baseline of the cost of regulatory compliance or respond to the questions raised in the issues paper by visiting the Business Victoria website.

www.mga.asn.au

38

Training

WHAT’S WHAT’SININSTORE STORE

for foryour yourbusiness? business?

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Legal and HR

39

Changes to annual leave in the General Retail Industry Award Following a review of the Federal Modern Awards, the Fair Work Commission has made changes to the annual leave clause contained in the General Retail Industry Award (the Award). The most notable change which is now in effect is that employees can voluntarily cash out a portion of their annual leave.

•

and the employer that outlines the amount of leave being cashed out, the amount they will be paid and the date it will be paid; and If the employee is under 18 years of age their parent or guardian must also sign it.

It is important that the agreement is retained as part of your employee records.

The decision to cash out annual leave can only be made by consent between the employee and the employer. Employers cannot force or pressure an employee to cash out annual leave and employers do not have to agree to an employee’s request to make a cashing-out agreement.

In order to cash out their annual leave, the following is required: • The employee must have at least 4 weeks of annual leave remaining after the cash out; and • A signed written agreement (cashing out agreement) between the employee

Each cashing out of a particular amount of accrued paid annual leave must be a separate agreement between you and the employee and an employee cannot cash out more than 2 weeks annual leave each 12 months.

As the Award contains leave loading, it is also necessary to ensure that the payment for cashed out annual leave is the same sum the employee would have been paid if they had taken the leave including leave loading.

If your store has an enterprise bargaining

agreement, you will need to check whether it contains a cashing out clause before you can cash out an employee’s annual leave.

The second significant change to the annual leave provisions is that the Award now allows an employee to take annual leave in advance when their employer agrees in writing. Once again a written agreement is required that is signed by both the employer and the employee, clearly states how much annual leave is being taken in advance and specifies the date the leave will start. A copy of the agreement must be kept on file.

Importantly, if an employee takes leave in advance and their employment ends before they’ve accrued it all back, the employer can deduct the amount still owing from their final pay.

Members can contact MGA for a copy of a cashing out agreement or advanced leave agreement.

Businessinnovation innovation Business OPPORTUNITIES OPPORTUNITIES

Top opportunities for SMEs in the Australian economy in the short to medium term Top opportunities for SMEs in the Australian economy in the short to medium term (% of total responses). (% of total responses).

D SOL D L O S

Rise of Asian Rise of Asian middle class middle class

Increased Increased trade with Asia trade with Asia (inc.

FTAs) (inc. FTAs)

Ageing Ageing population population

Food safety, Food safety, quality and quality and security security

Digital Digital technology technology

Housing Housing shortage shortage /affordability /affordability

NAB Special Report: A Survey of Business Innovation in Australia - September 2015.

NAB Special Report: A Survey of Business Innovation in Australia - September 2015.

www.mga.asn.au

40

Training

Training Country of origin food labelling Consumers are influenced by a number of factors when buying goods, including claims about where a product was grown, produced or made.

Businesses that supply food for retail sale in Australia (including manufacturers, processors and importers) must be aware of their obligations under the Country of Origin Food Labelling Information Standard 2016 (The Standard).

Country of Origin Food Labelling Information Standard 2016 The Standard requires most food suitable for retail sale in Australia to carry a country of origin label. This includes food that is imported into Australia but does not apply to food sold outside Australia.

Labelling requirements will vary depending on the type of food product and whether it

was grown, produced, made or packed in Australia or another country.

The Standard commenced on 1 July 2016 and has a two year transition period, during which businesses must either: • continue to label their products according to the existing requirements around country of origin labelling set out in the Australia New Zealand Food Standards Code 1 (the Food Standards Code) or • adopt the new labelling requirements of the Standard.

From 1 July 2018, food must be labelled according to the requirements of the Standard. However, food products that are packaged and labelled according to the Food Standards Code on or before 30 June 2018 can still be sold without the new labels after that date.

The Australian Consumer Law The Australian Consumer Law (ACL) is a national law that sets out specific provisions relating to the treatment of consumers and is contained in a schedule to the Competition and Consumer Act 2010.

The ACL regulates country of origin food claims by prohibiting a person from: 1. Supplying (or offering to supply), manufacturing, processing or possessing for the purpose of supply, food that does not comply with the Standard 2. Making false or misleading representations about the place of origin of goods, including food products 3. Engaging in misleading or deceptive conduct in relation to a claim about the origin of goods, including food products.

RSA training is mandatory for anyone selling, offering and serving alcohol in any state.

Make sure you and your staff members are accredited!

Check out our range of online and face to face courses today.

Visit us at www.mga.asn.au/training or free call 1800 888 479 September 2016 - Edition 6

Training

RSA training – Victoria Recently we have conducted two Responsible Service of Alcohol training sessions at the Victorian offices of Treasury Wines Estate. Some of the team members from across the company attended the training to receive their certificate for RSA. The course covered many key areas of the liquor industry and the responsible serving of alcohol.

Some of the areas covered are: • Problems associated with excessive consumption • Alcohol and the law • Whose responsibility is the responsible serving of alcohol?

• Facts about alcohol • Handling difficult customers MGA training can conduct RSA training at your place of business for a minimum of 10 participants within the Melbourne metro area. Please check that all staff that are

41

Food safety training – Launceston, Tasmania

serving or selling liquor have a current RSA certificate. Also each month there is an RSA course conducted at the Malvern office of MGA Independent Retailers.

There are heavy penalties that apply if a licensee does not ensure that any person who sells, offers for sale or serves liquor on the licensed premises has completed an approved RSA program (either refresher or initial training) within the 3 years of completing the last approved RSA program.

The maximum penalty for this infringement is $9,100.00.

For further information please contact the MGA training team on 1800 888 479.

Safe Work Instructions (SWI) What is a Safe Work Instruction?

SWI’s are a set of written instructions that identify the health and safety issues that may arise from use of the machinery and equipment or be based on a task or process.

The Safe Work Instructions do not replace the need for proper training. They may be used to supplement or guide the training process and provide reminders for staff on the correct operating and procedures for tasks throughout the business. SWI’s assist in emphasising the importance of correct procedures to reduce any risk of harm to employees and the general public.

Here at MGA we have developed SWI’s for use in stores to assist with training in a variety of areas. Some that are available at the moment are: • Deli Slicer • Bain Marie • Knife Safety • Manual Handling • Ladder Safety • Armed Hold Up • Bullying and Harassment • Rotisseries • Suspected Shoplifting – Employees • Carton Cutter Safety • Suspected Shoplifting – Managers • Moving Pallets Manually • Prevention of Robberies • Medical Emergencies • Using a Pallet Jack • Emergency Management/Evacuations • Cash Handling • Scissor lift These are just some and we are developing more as time goes on. If you wish to discuss your Safe Work Instruction needs please contact MGA Training on 1800 888 479.

The MGA training department conducted a course on Food Safety at the head office of Tasmania Independent Retailers (TIR) in Launceston. The attendance was excellent with 21 participants receiving formal training within this area. Thanks to the support from TIR this made it possible to educate the staff of independent supermarkets.

The food safety course that was facilitated by Christine is informative and educational. Even though the participants had a vast knowledge of food handling already, they felt that the course improved their knowledge and gave them a better understanding of what the food standards are.

The course covered many key areas of food safety and the correct handling procedures.

Some of the areas covered in the course are: • Personal hygiene • Cleaning, sanitation & pest control • Cross contamination • Food Safety Plan, basic monitoring and record keeping • Food storage & temperature control • Food legislation and the Food Standard Code Completing the face-to-face course covers the correct hand washing procedure by using the Glitterbug Potion, which is a fluorescent lotion that is used with a UVA lamp making it possible to see how well hands are washed. This makes learning proper hand hygiene (the most important means to prevent the spread of infections) an entertaining and illuminating experience.

All the participants that attended have received the nationally recognised unit of competency SIRFSA001A Apply Retail Food Safety Practices.

www.mga.asn.au

42

Training

National Online Training Courses MGA delivers training and compliance solutions specific to the needs of independent retailers. We have a range of training and compliance solutions readily available for members. *Log in to our website with your member login to order you courses at these member prices.

Basic Food Handling

Duration: 20-30 minutes Member Price: $25 Food Safety Supervisors

Duration: 4-8 hours Member Price: $105 Food Safety Supervisors – NSW

Duration: 4-8 hours Member Price: $150 Food Safety Supervisors Refresher Course – NSW

Duration: 2-4 hours Member Price: $100 Monitor Food Safety Program

Duration: 2-4 hours Member Price: $105 Food Safety Supervisor & Monitor Food Safety Program

Duration: 6.5 hours Member Price: $180

September 2016 - Edition 6

Responsible Service of Alcohol This course deals with the skills and knowledge required to satisfy the requirements for responsible service of alcohol under state/territory legislation. All persons involved in the serving and sale of alcohol must complete this.

WA

RSA

SA

RSA

QLD

RSA

NT

RSA

RSA – WA, QLD, SA, NT

Duration: 3 hours Member Price: $45

ACT

RSA – ACT

ACT

RSA Refresher – ACT

VIC

RSA Face to Face – VIC

RSA RSA RSA

Duration: 3-4 hours Member Price: $45

(must be completed every 3 years) Duration: 1-2 hours Member Price: $30

Duration: 4 hours Member Price: $49

See our website for regional RSA courses and prices.

RESPONSIBLE SERVICE OF ALCOHOL COURSES Do you have 10 or more staff to train in RSA? Contact us to see if we can organise an instore course. *Available in MELB Metro and surrounds.

Training

43

Visit www.mga.asn.au to purchase our training courses Health and Safety These courses aim to provide employees with information and instruction on their responsibilities and the responsibilities of management with regard to workplace health and safety.

There is a large selection to choose from:

Health & Safety Induction

Duration: 30 minutes Member Price: $25 Administer Workplace Health & Safety

Duration: 60 minutes Member Price: $40 Emergency Management

Duration: 60 minutes Member Price: $25

Updated online courses on the MGA website The system and courses have been designed to be user friendly and work on most devices, including desktops, tablets and mobile phones. As long as you’ve got internet access, you’ve got learning opportunities.

Food Safety

Food Safety Supervisor course for all states except NSW: $105 Store Security

Duration: 30 minutes Member Price: $25 Manual Handling

Duration: 60 minutes Member Price: $25

Food Safety Supervisor course for NSW: $150 *Food Safety Supervisor refresher course for NSW: $100 *Food Safety Supervisor refresher course is a new course developed for NSW. It contains the extra information on raw egg safety and allergens that the Food Authority now requires. You need to refresh NSW Food Safety Supervisor training every 5 years.

Responsible Service of Alcohol – Special introductory price Workplace Violence, Bullying & Harassment

Duration: 30 minutes Member Price: $25 Hazard Identification & Risk Management

Duration: 40 minutes Member Price: $40

RSA Online for QLD, SA, WA, NT: $45

RSA Online for ACT: $45 *RSA Online Refresher course for ACT: $30 *The ACT RSA refresher course is to be completed every 3 years after your initial qualification. You must be able to supply evidence of your original RSA certificate to do this course. The online course can be completed in around 1 to 1.5 hours.

www.mga.asn.au

2016

COSBOA continues to strengthen its advocacy position with the federal government and government departments. A COSBOA Advocacy Framework was developed in February COSBOA continues to strengthen its advocacy position 2016. with the federal government and government departments. A COSBOA Advocacy Framework was developed in February 2016.

COSBOA, led by Peter Strong and a dedicated Board of Directors, has played a large role in advocating for a variety of matters on behalf of privately owned business and family enterprises including; COSBOA, led by Peter Strong and a dedicated Board of Directors, has played a large role in advocating for a variety of matters on behalf of privately owned business and family enterprises including; • Competition Law Reform – introduction of the effects test • Competition Law Reform – introduction of the effects test • Unfair Contract Terms • Unfair Contract Terms • Sunday penalty rates • Sunday penalty rates • Superannuation administration • Superannuation administration • Good Faith dealings • Good Faith dealings • Favourable taxation policies • Favourable taxation policies The COSBOA Small Business Summit was held in Sydney on 16th & 17th July 2015 The COSBOA Small Business Summit was held in Sydney on 16th & 17th July 2015

45

PRESIDENT’S

REPORT A time of change and opportunities On behalf of MGA’s hardworking and dedicated Board of Directors I wish to commence this report by firstly congratulating all MGA members on getting through another tough and challenging year. Each year we say the market place we operate in has been worse for adversity than the previous year and yet we continue to trade and compete against the might of the 2 big giant supermarket and liquor chains as well as the fast growing German discounter.

MGA continues to be a unique and aspirational industry employer association, that we and members can be proud of. Despite some revenue challenges, owing to the withdrawal of government training incentives and members unable to avail themselves of certificate training, MGA has been able to deliver a first class legal and HR, employment law support service as well as training solutions and other membership benefits to its members.

members, who are privately owned businesses and family enterprises.

A major milestone for our industry this year was achieved on 16 March 2016 when, Prime Minister Malcolm Turnbull, the Treasurer Scott Morrison and the Minister for Small Business and Assistant Treasurer Kelly O’Dwyer announced that the recommendation by Professor Ian Harper and his panel to strengthen section 46 of the Competition and Consumer Act would be fully supported and endorsed in the parliament by the Coalition for legislation.

The political world we live in continues to be predictably difficult with the recent federal election showing that the electorate is not aligned on many day to day issues affecting their lives and the Australian economy.

MGA’s board members and staff have been heavily involved in an array of advocacy issues affecting members, none more important than Competition Law reform. Strengthening section 46 of the Competition and Consumer Act (CCA) which gives the ACCC the imprimatur to tackle large businesses misusing their market power. This is of paramount importance to maintaining a robust, diverse and competitive grocery, liquor and hardware retail market place in Australia.

MGA will continue to be vigilant to drive the Harper Panel recommendations through the Coalition party room and into the Parliament itself for the further drafting of this vital legislation. MGA’s Board knows there will be enormous pressure brought to bear by big businesses and the Labor Party, to not change section 46 (misuse of market power). However, we know we have the commitment and determination from the Prime Minister, the Treasurer and the Minister for Small business and Assistant Treasurer to follow this through the Parliament to drive productivity, employment and prosperity that are in the best interests of the Australian economy.

MGA has engaged with federal members of parliament and government agencies (ACCC, Treasury) more than ever before, building strong and positive relationships with which to further the cause for MGA

MGA’s members hear it every day, “we are in times of rapid industry change” and “digital disruption” is a way of life.

In understanding what this all means our industry is required to be agile

and resilient and able to quickly adapt through innovation to continuously engage with and stimulate a response from our customers.

The Council of Small Businesses of Australia (COSBOA) chooses one outstanding person as its champion each year and it is with great pleasure that we congratulate our CEO, Jos de Bruin, as the winner of this coveted award for 2016. I am sure all MGA members, industry colleagues and supporters, numerous politicians, MGA staff and his many friends will join me in congratulating Jos on being deservedly recognised for all the hard work and tireless effort he has expended, resulting in him receiving this award.

In 2015 Jos brought together the power of 23 industry associations, representing 900,000 businesses, to let politicians know that they were a collective, formidable force. He was the driving force that made it happen convincing the Government to adopt the vital changes covered in the Harper Review.

MGA has had a challenging year from a finance perspective largely owing to the withdrawal of federal and state government training incentives resulting in the organisation reporting a modest operational loss. According to accounting standards, MGA will also report one significant impairment to its balance sheet. The asset value of the Compliance Management System (CMS) must be written down. In addition, a “below-theline” report concerning MGA’s share portfolio at fair value (costs vs market value), as at 30 June 2016, affecting a loss, is required to be recorded in MGA’s FY 2016 financial report.

MGA‘s Board of Directors and dedicated staff continue to anticipate and embrace the many business condition changes our members are facing and has developed support service solutions that will “make life easier” for our members to take us into the new 2017 financial year.

Rodney Allen, President of MGA Independent Retailers MGA 2016 Annual Report

46

MGA INDEPENDENT RETAILERS

ANNUAL REPORT 2016 “Making Life Easier” Overview for Financial Year 15/16

In September 2015 and after conducting considerable member research and surveys, Master Grocers Australia Board made a decision to modify and launch a new trading name – MGA Independent Retailers.

It was determined that the fresher and more modern brand name, MGA Independent Retailers, has a broader capacity to attract new non supermarket and liquor retailers, opening up the opportunity to grow membership particularly, within the hardware sector.

To coincide with this brand modification MGA’s website, magazine, e-newsletters and general stationary were all modernised.

Throughout the year there were a number of very productive, team building staff workshops conducted to determine the cultural elements of a high performing industry organisation. Subsequently, in aspiring to be a high performing organisation, the group developed an overall objective, a higher purpose and a strong set of values to take MGA into the future.

MGA’s higher purpose and complete reason for being is “Making Life Easier” for our members, staff and industry stakeholders.

Objective

To be a highly respected national industry organisation led by an inspired and aligned high performing team.

OUR SERVICES

MGA’s workplace

Legal and HR

A workplace that has an enjoyable and productive culture. A team oriented workplace that values staff work performance and provides them with challenges and opportunities to grow personally and professionally.

MGA Values – C.I.R.C.L.E

Consult when decisions affect others Integrity in everything we do Respect for one another Communicate open and honestly Leadership take ownership Embrace change as a healthy part of growth

MGA’s Higher Purpose

“Making Life Easier” The MGA team are dedicated to caring for and supporting its members MGA 2016 Annual Report

Have a problem with wages or employees and don’t know where to turn? Don’t get caught... seek advice first. Call us – 7 days per week.

Training MGA can provide accredited training in the areas that matter to you. Speak to the retailer training specialist.

Advocacy

CHOOSE THE RIGHT ROAD

MGA tirelessly lobbies on behalf of the independent retail sector – what affects you, affects us! Visit our website to see the latest news and submissions.

Member Benefits From electricity to insurance, mobiles phone plans or banking – MGA gets the best deals for our members... Try us!

MGA...

“Making life easier”

Communications We’re your ears and eyes! MGA will let you know via Checkout or e-alerts all of the important news you need to know.

www.mga.asn.au Free call: 1800 888 479

47

CEO

REPORT A concentration on sustainability, relevance and outcomes MGA’s Board and staff have worked exceptionally hard this financial year in looking after the best interests of members around Australia.

Members report that the 2016 financial year was by far the most challenging year of trading that they have experienced.

Increased competitive activity from the 2 major chains, the foray by Aldi into SA and WA, as well as the cautious and increasingly frugal consumer, owing to a fragile economy, have all been factors affecting sales and profits. In some ways we say the same every year. This just demonstrates that as adverse changes around us begin to affect our members, to their credit, they are agile and quick enough to recognise the issue and adapt their businesses accordingly.

We often associate the words resilience, innovative and determined with our members. They are the attitudinal hallmarks of privately owned and family enterprise businesses in our industry.

Early in the year MGA changed its brand name from Master Grocers Australia to MGA Independent Retailers. Research that was carried out suggested that more independent retailers would join MGA if the organisation was relevant and modern. All core pillar graphics and colours have been modernised and the appearance and usability of the website, magazine, e-Alerts and checkout newsletters updated. Members have been very positive toward these changes.

MGA’s dedicated staff continue to provide members with a first class support service, particularly in the area of employment law, legal and HR services as well as compliance training and industry representation. MGA staff conducted a number of workshops to determine MGA’s higher purpose and also to develop

the type of culture in the workplace that will drive toward MGA becoming a high performing organisation.

MGA, like many other registered training organisations have experienced a severe down turn in federal and state government training incentive funding.

Not only has this meant that Certificate 3 and 4 training is becoming virtually non-existent but it has meant that MGA has had to lose some very valuable and capable training staff members including Judy O’Reilly, MGA’s National Training Coordinator, who had served our members for more than 9 years.

Independent supermarket owners and operators rely upon training staff to secure their business future. Succession planning is a very important strategy in working toward the future growth and prosperity of privately owned businesses and family enterprises.

MGA will continue to highlight this drastic deficiency to federal and state governments at every opportunity.

In response to member needs and training sustainability, MGA has invested valuable resources into developing an online compliance and professional development training suite of products. Members have indicated that this is a more flexible and affordable form of training. Innovation in this area will drive revenue that will replace Cert 3 and 4 training revenue.

Advocacy and Industry representation have been one of MGA’s functions of paramount importance. Outcomes that benefit members take an inordinate amount of time but we persevere. Specific areas including; competition law reform, the Harper Competition Policy Review report, reduction of Sunday penalty rates, Productivity Commission red tape submissions, container deposit legislation, illicit tobacco, excessive excise tax on

tobacco, tobacco regulations in states, excessive payroll tax, packaged liquor licensing in Qld, Tas and SA, opposing the deregulation of trading hours in Qld, WA and SA, food labelling and country of origin labelling are just some of the matters MGA advocates for.

After 9 years of research, surveys, reports, submissions, consultations, lobbying both sides of federal government and bringing together 23 National Industry Association CEOs representing 900,000 business and 5,000,000 employees, the Prime Minister Malcom Turnbull, together with Treasurer Scott Morrison and Assistant Treasurer and Small Business Minister Kelly O’Dwyer announced on the 16 March 2016, that the Harper Competition Policy Review Panel recommendation to strengthen section 46 of the Competition and Consumer Act by including an effects test will be fully endorsed and supported. This announcement was both historical and a milestone achievement for every MGA member and industry stakeholder who worked tirelessly to achieve this goal. For this recommendation to be legislated it must go through the Coalition party room and then pass through both houses of parliament.

This legislation must be passed through parliament in its current form to provide all small and medium businesses around Australia with assurance and certainty to invest, innovate and operate robust businesses and realise the dream of operating a business.

MGA board members and staff have fostered and grown many vital relationships at state and federal government levels with MP’s and departments that have helped to lift MGA’s profile and to engage with decision makers at a very high level. This will be continued in FY 2017.

I wish to conclude by sincerely thanking MGA’s Board for their vision and contribution toward building MGA into the best industry employer association in Australia and to all MGA’s staff who work tirelessly toward making life easier for our members.

Jos de Bruin, CEO of MGA Independent Retailers MGA 2016 Annual Report

48

INDUSTRY

LANDSCAPE Membership MGA members around Australia continue to rely upon the strong support service that MGA provides. For the price of an allinclusive membership fee, members can avail themselves of MGA’s highly skilled and capable team for advice and support pertaining to many “back of house” matters, whether they be legal and HR, training or local advocacy matters.

MGA’s total membership of over 2,450 members remains steady in all states.

There have been some ownership changes – single store owners selling their stores to multi store owners e.g. SA – Foodland Ardrossan sold to Drakes Supermarket Group. Hardware store membership increased by 10 stores. Liquor store membership continues to be challenging.

MGA 2016 Annual Report

49 MGA Board of Directors MGA’s Board of Directors continues to dedicate their time and resources to serving MGA Independent Retailers and the needs of

MGA’s Board of Directors its members. Travelling from all parts of Australia, MGA’s Board meets on a regular basis and combines these duties with state and federal politicians and industry stakeholders meetings.

Photo taken June 2015 MGA’s Board of Directors, Marie Brown and Jos de Bruin with former Minister for Small Business and Competition Matters – Hon Bruce Billson MP MGA’s Board of Directors, Marie Brown and Jos de Bruin with former Minister for

New Small Business Minister Kelly

and Competition HonSantos Bruce Billson MP.Jos Leftde to Bruin Right: Marie Treasurer Scott Morrison L toSmall R – Business Marie Brown (MGA),Matters Chris –dos (SA), )MGA), O’Dwyer Debbieand Smith (Qld), Rod Allen Brown (MGA), Chris dos Santos (SA), Jos de Bruin (MGA), Debbie Smith (QLD), Rod with Jos de Bruin, CEO MGA (Vic), Steve Miller (Vic), Grant Hinchcliffe (Tas), Gino Divitini (WA), Andrew Bray (NSW/ASCT), Mick dale Allen (VIC), Steve Miller (VIC), Grant Hinchcliffe (TAS), Gino Divitini (WA), Andrew Bray (Vic) – Former Minister Bruce Billson seated (NSW/ACT), Mick Daly (VIC), Hon Bruce Billson MP – Minister for Small Business and Competition Matters

MGA team

MGA is very fortunate to have a team of truly passionate and dedicated staff members who are committed to the well being and prosperity of MGA’s members.

Suite 5, 1 Milton Parade, Malvern VIC 3144 MGA’s staff structure (particularly training), has again been forced to change significantly over the past 12 months owing to the P 1800 888 479 | F 03 9824 4022 | www.mga.asn.au | ABN 44 004 063 263 reduction of state and federal government training incentives. MGA’s online training offer will also be a focus for the training team © Master Grocers Australia Limited with continual development of new online training products to meet the needs of members and outside business owners.

MGA 2016 Annual Report

50 Corporate Partners

MGA Corporate Partners continue to strongly support the efforts of MGA to strengthen the resilience and sustainability of MGA’s members – independent retailers around Australia. Corporate partners are able to more easily engage and build relationships with members through a variety of advertising and promotion mediums and industry events. They enable MGA to be able to provide significant members benefits that will save members money.

Finance

MGA has had a challenging year from a finance perspective largely owing to the withdrawal of federal and state government training incentives resulting in the organisation reporting a modest operational loss. MGA has been able to contain costs without compromising its excellent support services for its members.

Early in the financial year, MGA with the terrific financial assistance from members around Australia, joined other industry organisations and stakeholders to mount a strong case with the Fair Work Commission to reduce Sunday penalty rates from 100% to 50%. MGA sincerely thanks members, as a total of $90,000 was raised toward the legal and court costs associated with mounting this case. We are awaiting an outcome.

According to accounting standards MGA will also report one significant impairment to its balance sheet. The asset value of the Compliance Management System (CMS) must be written down. In addition, a below-the-line report concerning MGA’s share portfolio (costs vs market value) as at 30 June 2016 which showed a loss, will be required to be recorded in MGA’s FY 2016 financial report. This will impact MGA’s profit and loss report by showing a significant accounting loss for FY 2016.

The outlook for MGA’s operational performance from 1 July 2016 is excellent with MGA’s Board and management team having developed a robust and sustainable business plan.

Goals and Objectives

MGA’s goals for this financial year focused on further developing and delivering exceptional member support services including; Legal and HR, Training and Compliance (online and Workplace Health and Safety) and timely industry information through improved communication mediums including; website, 8 magazines, e-Alerts and fortnightly checkouts.

Affiliations and Industry Associations Number of Hours • • • • •

ACCC Small Business and Franchise Consultative Committee July 2015 - ofJuly 2016 Coalition of Small Business Organisations Australia – MGA is a Director of COSBOA Victorian Liquor Control Advisory Committee (LCAC) – statutory state liquor body ACT Liquor Advisory Consultative Committee – statutory body Industry Skills Council Australia

Number of Hours July 2015 - July 2016 Number of Hours: July 2015 – June 2016

47% - Legal and HR

Industry Stakeholders Number of Contacts •

• •

Retail brands: July 2015(SA),- FoodWorks, July 2016 Farmer Jacks (WA), Foodland Friendly Grocers, IGA, SPAR, IBA, Cellarbrations, The Bottle O, Bottlemart and Local Liquor Wholesalers: Australian Liquor Marketers, Metcash, SPAR and FoodWorks MGA partners: Adroit Insurance

Number of Contacts JulyNumber 2015 - of July 2016 July 2015 – June 2016 Contacts:

47% - Legal and HR

64% - Legal and HR

45% - Industry Representation

24% - Industry Representation

5% - Membership Services

6% - Administration

2% - Administration

4% - Training

2% - Training

3% - Membership Services

Total: 5292

64% - Legal and HR

Total: 6243

45% - Industry Representation

24% - Industry Representation

5% - Membership Services

6% - Administration

2% - Administration

4% - Training

MGA 2% 2016 Annual Report - Training

3% - Membership Services

51

2015 / 16

HIGHLIGHTS Legal & HR

Led by MGA’s National Legal Counsel for Workplace Relations, Marie Brown, the legal and HR team have played a significant role in assisting and supporting members on a day to day basis with anything from a wage enquiry to an unfair dismissal.

MGA’s legal and HR team have a significantly high level of capability and expertise which MGA is very proud of. An ongoing highlight includes; engaging with members from around Australia on a number of industry issues, including member workplace surveys, the National Wage Review and advocating for a reduction in Sunday penalty rates.

MGA’s legal and HR team continues to be a highly sought after source of information and provides insights from a number of external stakeholders including the Fair Work Commission, government departments and bureaucrats.

Training & Compliance

This year there have been many lowlights within MGA’s training and compliance pillar owing to a dramatic withdrawal in federal and state government training incentives funding. This caused MGA to lose some key highly valued members of staff. From bad comes something good, as they say, with MGA’s training team working very hard to create a new and innovative online training course offer.

A modern and engaging website has been developed offering a range of compliance based courses as well as professional development courses planned for development in FY2017.

Industry Representation & Advocacy MGA has experienced many industry representation highlights in FY2016. MGA’s board has actively engaged with the Federal Government in Canberra and a variety of politicians to advocate for Competition Law reform, a reduction in red tape and associated cost burdens and the reduction in Sunday penalty rates.

On 10 October 2015 and 3 March 2016, MGA brought 23 Industry Association CEO’s together in Parliament House, Canberra to meet with the Treasurer, Scott Morrison and Assistant Treasurer and Minister for Small Business, Kelly O’Dwyer to advocate strongly on behalf of 900,000 businesses and 5,000,000 workers to support Harper’s recommendation to strengthen Section 46 of the CCA. The major highlight for the year came on 16 March 2016 – this was the outstanding and historic announcement made by the Prime Minister Malcolm Turnbull, together with the Treasurer, Scott Morrison and Assistant Treasurer and Minister for Small Business, Kelly O’Dwyer (see photo) that the Harper Competition Policy Review Panel recommendation to strengthen Section 46 of the Competition and Compliance Act with the inclusion of an effects test, would be fully endorsed and supported in the parliament.

This announcement was the culmination and result of tireless and relentless efforts made by MGA members and industry stakeholders over many years.

Industry Community

MGA continues to be active in bringing members together in each state, along with industry stakeholders and members of parliament. These events and activities lift the profile of the independent retailer industry sector, as well as fostering goodwill and networking opportunities amongst members.

Industry breakfasts in Brisbane and Melbourne, the MGA Liquor Christmas forum as well as MGA’s GALA industry Ball were a huge success.

Assistant Treasurer and Minister for Small Business, Kelly O’Dwyer, Prime Minister Malcolm Turnbull and Treasurer Scott Morrison

Industry Community MGA continues to be active in bringing members together in each state, along with i and members of parliament. These events and activities lift the MGA profile of the indepe 2016 Annual Report sector, as well as fostering goodwill and networking opportunities amongst member

The Industry Breakfast and AGM in held in Brisbane in November 2015 was a great success with special The Industry Breakfast and AGM heldManen in Brisbane in November 2015 was Michael a great success specialthe speakers including Hon Bertin and ACCC Deputy Chairman, Schaperwith delighting The Industry Breakfast and AGM inVan held in Brisbane in November 2015 was a great success with special 52guest guest speakers including Hon Bert Van Manen and ACCC Deputy Chairman, Michael Schaper delighting the audience. guest speakers including Hon Bert Van Manen and ACCC Deputy Chairman, Michael Schaper delighting the audience. audience.

The MGA GALA Golf Day held at the Keysborough Golf Club in Melbourne was a sell out with groups The MGA Golf Day held at the Keysborough Clubattending in Melbourne was a sell outdinner. with groups playing in GALA the morning and afternoon and over 100Golf people the presentation This event The MGA GALA Golf Day held at the Keysborough Golf Club in Melbourne was a sell out with groups playing in the morning and afternoon and over 100 people attending the presentation dinner.

This event raised over $20k for the reach Foundation. playing in the morning and afternoon and over 100 people attending the presentation dinner. This event raised over $20k for the reach Foundation. raised over $20kevent, for theMC’d reachbyFoundation.

The MGA liquor Michael Reddrop, held just prior to Christmas 2015, included special The MGA liquor event, MC’d

by Michael Reddrop, heldPowell just prior to Christmas 2015, included guests such at Catherine Myers, CEO VCGLR and Mark PhilipMorris Corporate Affairs.special The MGA liquor event, MC’d by Michael Reddrop, held just prior to Christmas 2015, included special guests such at Catherine Myers, CEO VCGLR and Mark Powell Philip- Morris Corporate Affairs. guests such at Catherine Myers, CEO VCGLR and Mark Powell Philip- Morris Corporate Affairs.

MGA LIQUOR

COMMITTEE

MGA Liquor MGA Liquor MGA Liquor Brown photoCommittee (formerly LRA), led by chairman The MGABrothers National Liquor Brown Brothers photo and member’s support advocate, George Kovits, drives for outcomes Brown Brothers photo The MGA National Liquor committee (formerly LRA), that reduce red tape and lessens cost burdens for members to led do by Chairman and members support advocate, The MGA National Liquor committee (formerly LRA), led by andburdens members advocate, George Kovits, drives for outcomes that reduce red tape andChairman lessen costs forsupport members to do business.

LiquorLiquor Committee is representative of all independent The MGAMGA’s National committee (formerly LRA), led by Chairman and members support advocate, George Kovits, drives for outcomes that reduce red tape and lessen costs burdens for members to do business.

MGA’s national liquor committee is representative of all independent retailer brands and is the retailer brands and is the conduit between governments, their various George Kovits, drives for outcomes that reduce red tape and lessen costs burdens for members to do business.

MGA’s national liquor committee is representative of all independent retailer brands and is the departments regulating liquor and MGA liquor members. conduit between governments, their various departments regulating liquor and MGA Liquor members. business. MGA’s national liquor committee is representative of all independent retailer brands and is the conduit between governments, their various departments regulating liquor and MGA Liquor members. conduit between their various departments liquor and Liquor ACT, members.

More than 800 of MGA’s members have ahave packaged liquor license.

More than 800 ofgovernments, MGA’s members a packaged liquor regulating license. Members areMGA in Victoria, Tasmania Members are in Victoria, ACT, members Tasmania and NSW with workplace relations MoreNSW than 800 ofsupport MGA’s have aLSA packaged liquor license.

Members are in Victoria, ACT, Tasmania and with IR provided to the WA membership base.

This area of business is of paramount More than 800 to ofthe MGA’s members have a packaged liquor license.

Members are in Victoria, ACT, Tasmania support provided LSA WA membership base.

This area of business is and NSW with IR support provided to the LSA WA membership base.

This area of business is of paramount importance to stand aloneprovided liquor stores wellWA as membership licensed supermarkets.

The sale of liquorisisofheavily and NSW with IR support to theas LSA base. This area of business paramount of paramount importance to stand alone liquor stores asas well as licensed importance to stand faces alone liquor stores as wellstate licensed supermarkets.

The health sale oflobby liquorgroups is heavily regulated and often close scrutiny from and federal governments, as well importance to stand alone liquor stores as well as licensed supermarkets.

The sale of liquor is heavily supermarkets. The sale of liquor is heavily regulated and often faces close regulated and often faces close scrutiny from state and federal governments, health lobby groups as well as the media. scrutiny fromand state and federal governments, as well governments, health lobby groups as well regulated often faces close scrutinyhealth fromlobby stategroups and federal as the media. as the media. as the media.

It is vital all retailers selling packaged liquor are a member of an industry association such as MGA Liquor.

It is vital all retailers selling packaged liquor are a member of an industry association such as MGA Liquor.

It retailers selling packaged liquor are a member of an industry It isisvital vitalallall retailers selling packaged liquor are a member of an industry association such as MGA Liquor. association such as MGA Liquor.

P 1800 888 479 P 1800 888 479 P 1800 888 479

Suite 5, 1 Milton Parade, Malvern VIC 3144 |Suite F 03 5, 9824 4022 Parade, | www.mga.asn.au | ABN 44 004 063 263 1 Milton Malvern VIC 3144 5, 1 Milton Parade, Malvern VIC 3144 |Suite F 03 9824 4022 | www.mga.asn.au © Master Grocers Australia Limited| ABN 44 004 063 263 | F 03 9824 4022 | www.mga.asn.au | ABN 44 004 063 263 © Master Grocers Australia Limited © Master Grocers Australia Limited

MGA Liquor Committee with new committee members Tony Leon (far right) and Peter Karkazis (ACT) (fifth from left) meets at Brown-Forman.

MGA 2016 Annual Report

53

INDUSTRY REPRESENTATION

FEDERAL

In September 2015 Prime Minister Tony Abbot lost the leadership of the Liberal Party in favour of Malcolm Turnbull. As a consequence of this change, Minister for Small Business Bruce Billson was replaced by Minister Kelly O’Dwyer, Treasurer Joe Hockey was replaced by Scott Morrison and deputy leadership of the coalition transferred from Warren Truss to Barnaby Joyce.

By far the biggest industry representation matter that MGA has been advocating for is, Competition Law reform.

The Harper Competition Policy Review Panel recommended that section 46 of the Competition and Consumer Act be amended and strengthened to include an effects test.

Harper Competition Policy Review Panel’s recommendation to strengthen Sec46 of the CCA, despite the demonstrable protestations from the Business Council of Australia and many other large business corporations.

The PM announced the recommendation will be supported by the Cabinet and the Coalition Government in full. This is a major win for the entire business community in Australia – small, medium and large sized business will benefit from the strong Sec46 competition laws that will deter exclusionary behaviour, particularly those very large businesses that have substantial market power.

The entire business community, with the exception of those MGA, through its Directors and Staff, have built very close contact and relationships with a plethora of MGA has worked tirelessly with former Minister for Small very large companies who are part of oligopolies or are Ministers, backforbenchers and cross benchers theBCA), pasthave several years.

Business BruceShadow Billson andMinisters, current Minister Small Business monopolistic (andover also the applauded thisRelationships “common and the Assistant Treasurer Kelly O’Dwyer, as well as, numerous sense” decision. This has been lauded as being outstanding have never been stronger! members of parliament to have the Harper recommendations public policy that will benefit all Australians. Big business endorsed and legislated by the parliament. leaders felt there should be no change to the current Sec46 law – so they couldbig continue to dominate and crowd outcampaign smaller MGA’s members and industry stakeholders also played a very part in the success of this – On 16 March 2016 the Prime Minister of Australia, Hon businesses – this is fair competition they say! retailers and industry stakeholders have been constantly lobbying and making contact with their local MPs Malcom Turnbull, the Treasurer Hon Scott Morrison, and and Ministers advocating Competition big “Well Done” toindustry all members of CEO’s our Assistant Treasurer/Small Business for Minister Hon Kelly Law reform.

MGAA ledvery the campaign with 23 other association O’Dwyer, an historical announcement leaders. terrificmade industry for your incrediblyconcerning valuablethe efforts and in campaigning for this result. No matter how big or

small, every effort did make a difference!

What’s next?

After the election on 2nd July, providing the government is re elected, the State must be consulted, then the Bill for reform will go through the Upper House and Lower House for debate and hopefully safe passage.

MGA, its board members and many members met with numerous MP’s. For the first time in history MGA brought together 23 Industry Association CEO’s to meet with the Treasurer Scott Morrison and Assistant Treasurer and Small Business Minister Kelly O’Dwyer in Parliament House Canberra (14th Oct. 15 & 3rd 23 industry Association Heads meet with Kelly O’Dwyer, Scott Morison Former Minister for Small March to discuss asJos other matters of a common interest.

Deputy PM16) Barnaby Joyce this Competition matter as well with de Bruin Business Bruce Billson

23 Industry Associations are unified that the Harper Recommendation to amend Sec46 should occur – 900,000 businesses employing over 5,000,000 people

23 Industry Associations are unified that the Harper Recommendation to amend sec46 should occur – 900,000 business employing over 5 million people

MGA 2016 Annual Report

MGA was invited by Minister Kelly O’Dwyer to attend an historical roundtable meeting in Tamworth on th

54

Industry representation continued

After 9 years of member and consumer research, 4 major reports (and 2 NARGA reports before that) and intense lobbying with various governments a positive result has finally been delivered.

The former Minister for Small Business and Competition Matters, Hon Bruce Billson, led the charge for competition law reform – strengthening section 46, after the Coalition were successful in winning the 2013 federal election. A Root and Branch review of the Competition Act, the appointment of the Harper Competition Policy Review Panel, endless consultations and the final Harper Panel report released on 31 March 2015, led to the outstanding announcement by the PM on 16 March.

Jos de Bruin with Professor Ian Harper

Suite 5, 1 Milton Parade, Malvern VIC 3144

MGA, through its directors and staff, have built very close contact and relationships with a plethora of ministers, shadow ministers, back benchers and cross benchers over the past several years. Relationships have never been stronger!

MGA’s members and industry stakeholders also played a very big part in the success of this campaign – retailers and industry stakeholders have been constantly lobbying and making contact with their local MPs and ministers advocating for Competition Law reform. A very big “well done” to all members of our terrific industry for your incredibly valuable efforts in campaigning for this result. No matter how big or small, every effort did make a difference!

Treasurer Scott Morrison – Budget night 3 May 2016

P 1800 888 479 | F 03 9824 4022 | www.mga.asn.au | ABN 44 004 063 263 © Master Grocers Australia Limited

MGA board members, Rod Allen and Debbie Smith with Minister for Northern Australia Senator Matthew Canavan

What’s next?

Following the election on 2 July, providing the government is re-elected, the states must be consulted, then the Bill for MGA Board members Rod reform will go through the Upper House and Lower House for Allen,Rod Debbie Smith and Smith with Sen Captions above – MGA Board members Allen & Debbie debate and hopefully safe passage.

Andrew Bray with Minister for Jos de Bruin with Minister for Bruin Small Business Kelly O’Dwyer Small Business and Assistant MGA, its board members and many members met with and MGA’sSmith JosRod dewith Bruin Captions above – Rod MGA Board members Allen & Debbie Smith Treasurer Kelly O’Dwyer MGA Board members, Allen and Debbie Minister for Northe numerous MP’s. For the first time in history, MGA brought Canavan together 23 Industry Association CEO’s to meet with the Bruin Treasurer Scott Morrison and Assistant Treasurer and Small Treasurer Scott Morrison – Budget nightand 3rd May 2016 MGA Board members, Rod Allen Debbie Smith with Minister Business Minister Kelly O’Dwyer in Parliament House, Suite 5, 1 Milton Parade, Malvern VIC 3144 Jos de Bruin with Minister for Small Business and assistant Treasurer Kelly O Canberra (14 Oct 2015 & 3 March 2016) to discuss this Canavan P 1800 888 479 | F 03 9824 4022 | www.mga.asn.au | ABN 44 004 0 competition matter, as well as, other matters of a © Master Grocers Limited MGA Board members Rod Allen, Debbie Smith andAustralia Andrew Bray Minis Suite 5, 1with Milton common interest.

2016 Treasurer Scott Morrison – Budget night 3rd May O’Dwyer and MGA’s Jos de Bruin P 1800 888 479 | F 03 9824 4022 Jos de Bruin with Minister for Small Business and assistant Treasu MGA was invited by Minister Kelly O’Dwyer to attend an © Master Gro historical roundtable meeting in Tamworth on 29 January MGA Board members Rod Allen, Debbie Smith and Andrew Bray w 2016. MGA made another submission to Treasury on 12 There are many other matters MGA has pursued and continues to pur February explaining the benefits of fair competition and the O’Dwyer and MGA’s Jos de Bruin members including; opportunities the Harper Report could deliver should the recommendations be legislated.

• Unfair Contracts amendments – Thresholds increased

• Franchise Codeother of Conduct There are many matters MGA has pursued and continu MGA Board members Rod Allen & Debbie • Standards Australian – Unit PricingSmith working group members including; with Senator Nick Xenophon and Jos de Bruin • Excessive Credit Card Surcharges – Reserve Bank of Australia • Unfair Contracts amendments – Thresholds increased

•

MGA 2016 Annual Report

• •

Merchant Fees – Reserve Bank of Australia

•

Franchise Code of Conduct

•

Standards Australian – Unit Pricing working group

•

Excessive Credit Card Surcharges – Reserve Bank of Au

Tobacco – Illicit tobacco and increases in excise tax

National measurements Institute

preventing small businesses to surviv mission Inquiry – Red Tape and cost impediments toBusiness doing business - SundayOmbud Small and family Enterprise

55 announc • Federal workingKelly relationships - Austra In April 2016, Minister O’Dwyer Department, Australian Tax Office (AT former CEO of ACCI, Beyond Blue, AFGC and C

entatives Economics Committee - submissions and appearances - Barriers constructive working relationship with Kate Ca There are other matters MGA has pursued businesses tomany survive and prosper. and continues to pursue in the best interest of members including;

•

Productivity Commission Inquiry – Red Tape and cost impediments to doing business Penalty Rates• Productivity Commission Inquiry – Red Tape and cost impediments to do Penalty Rates ACCC House of Representatives Economics Committee - submissions and appearances - Bar • House of Representatives Economics preventing small businesses to survive and prosper. Committee - submissions and appe preventing small businesses to survive and prosper.

• Competition Law reform – numerous m Federal working relationships - Australian Competition and Consumer Commission (A • Federal working relationships - Australian Competition and Consumer Co Department, Australian Tax Office (ATO),Consumer Fair Work Commission • Australian Law (FWC) – 5 Year rev Department, Australian Tax Office (ATO), Fair Work Commission (FWC)

• Unfair contracts amendments –Competition thresholds increased and Consumer Commission (ACCC) Treasury relationships - Australian • • Franchise Code of Conduct Standards Australia – Unit Pricing working group Commission (FWC) tralian• Tax Office (ATO), Fair Work • • • • • • • • •

•

Excessive credit card surcharges – Reserve Bank of Australia • Merchant Fees – Reserve Bank of Australia Tobacco – illicit tobacco and increases in excise tax MGA meets Independent Senator Jacqui Lambie National Measurements Institute • Coles Supermarkets – oppose acquisiti FY 2017 Federal Budget input – Small Business thresholds- $10m/ reduction in company tax Photos • Australian Payments Clearing Associa COAG – payroll tax reform – nationally uniform Coalition government Small Business Committee – competition • Woolworths Low Prices ALWAYS – m law reform MGA meets Independent Senator Jacqui Lam Productivity Commission Inquiry – red tape and cost impediments to • Country of Origin Labelling inquiry – ne doing business – Sunday penalty rates Minister for Small Business michelle Rowland Photos Photos House of Representatives Economics Committee – submissions • Royal Auto Club Tasmania 8 cpl and Co MGA meets Independent Senator/Jacqui / Shadow Treasure Ch Senator Jacqui Lambie Shadow Treasure reassure Chrisreassure Bowen and and appearances – barriers preventing small businessesMGA frommeets Independent section 46 of the CCA /Lambie Dinner with Kelly O’D surviving and prospering formichelle Small Business michelle Rowland a meeting to discussof theaninclusio Minister for SmallMinister Business Rowland – a meeting to –discuss the inclusion effect • MGA is a member of the ACCC Small B Federal working relationships – Australian Competition and Consumer Dinner with Kelly ininKelly 46 of the CCA /O’Dwyer Dinner with O’Dwyerhouse in Parliament house Canberra section 46 of the section CCA / Dinner with Kelly O’Dwyer Parliament Canberra Commission (ACCC), Treasury Department, Australian Tax Office Parliament House Canberra (ATO), Fair Work Commission (FWC)

Small Business and Family Enterprise Ombudsman (SBFEO) National Australia Bank

MGA met with NAB Group CEO Andrew Thorb

In April 2016, Minister Kelly O’Dwyer announced the new and inaugural SBFEO as being Kate Carnell OAM – former CEO of ACCI, Beyond Blue, AFGC and Chief Minister of the ACT. MGA has a very strong and constructive working relationship with Kate Carnell.

Senator Jacqui Lambie / Shadow Treasure reassure Chris Bowen and Shadow MGA is a member of NAB Customer Service A ss michelle inclusion of anShadow effects test in ACCC Rowland – a meeting to discuss the Kelly O’Dwyer Minister for •

Competition Law reform – numerous meeting and teleconferences to Small Business Minister Kelly O’Dwyer launches the American Express sponsored Small Business Minister Kelly O’Dwyer launches the Express sponsoredof Shop Small c launches the American Small Business Michelle COSBOA – Council ofAmerican Small Business Austra discuss the Harper review Shadow Minister for Small Business Michelle Rowland also supports the campai Express sponsored Shop Rowland also supports Shadow Minister for Small Business Michelle Rowland also supports the campaign.

Australian Consumer Law – 5 Year review Small campaign. the campaign.

Coles Supermarkets – oppose acquisition of nine Supabarn COSBOA continues to strengthen its advocacy position with the federal government and government supermarkets departments. A COSBOA Advocacy Framework was developed in February 2016.

Australian Payments Clearing Association – credit card security COSBOA continues to strengthen its advocacy position with the federal government and government Small Business Minister Kelly O’Dwyer launch COSBOA, led by Peter Strong and a dedicated of Directors, has played a large role in advocating for a departments.

A COSBOA Advocacy FrameworkBoard was developed in February 2016. variety of matters on behalf of privately owned business and family enterprises including; overreach COSBOA, led by Peter Strong and a dedicated Board of Directors, has played a large role in advocating for a Woolworths Low Prices ALWAYS – misleading conduct • Competition Reform – introduction of the effects test enterprises including; variety of matters Law on behalf of privately owned business family Shadow Minister forandSmall Business Michelle Country of Origin Labelling inquiry – new regulations Competition Reform – introduction of the effects test • •Unfair ContractLaw Terms Suite 5, 1 Milton Parade, Malvern VIC 3144 Royal Auto Club Tasmania 8 cpl and Coles and Woolworths fuel discounts • •Sunday Unfairpenalty Contract Terms rates P 1800 888 479 | F 03 9824 4022 | www.mga.asn.au | ABN 44 004 0

inner with Kelly O’Dwyer in Parliament house Canberra • • • • • •

COSBOA – Council of Small Business of Australia

COSBOA continues to strengthen its advocacy position with the federal government and government departments. A COSBOA Advocacy Framework was developed in February 2016.

Suite 5, 1 Milton Parade, Malvern VIC 3144 © Master Grocers|Australia Limited | www.mga.asn.au ABN 44 004 063 263 • Superannuation administration © Master Grocers Australia Limited • Good Faith dealings Sunday penaltyadministration rates • •Superannuation P 1800 888 479 | F 03 9824 4022

•

•

Good Faith dealings

•

Favourable taxation policies

Favourable taxation policies

COSBOA’s Board of Directors – February 2016

The COSBOA Small Business Summit was held in Sydney on 16th & 17th July 2015 The COSBOA Small Business Summit was held in Sydney on 16th & 17th July 2015

COSBOA, led by Peter Strong and a dedicated board of directors, has played a large role in advocating for a variety of matters on behalf of privately owned business and family enterprises including; • Competition Law Reform – introduction of the effects test • Unfair contract terms • Sunday penalty rates • Superannuation administration • Good faith dealings • Favourable taxation policies • MGA is a member of the ACCC Small Business and Franchise Consultative Council

COSBOA’s Board of Directors – February 2016

Suite 5, 1 M

P 1800 888 479 | F 03 9824

© Mas

Minister Kelly O’Dwyer Farewell dinner for Kelly O’Dwyer launches the American Express sponsored Shop Small campaign. / and COSBOA CEO former Minister for Small Photos - Minister Kelly O’Dwyerand andCOSBOA COSBOA CEO CEO Peter received to support the the “Effects Photos - Minister Kelly O’Dwyer PeterStrong Strong- -Petitions Petitions received to support “Effects in sce46 CCA / COSBOAfarewell farewelldinner dinner for business andand Competition TestTest in sce46 of of CCA / COSBOA for former formerMinister MinisterforforSmall Small business Competition Matters Bruce Billson Matters Bruce Billson

Peter Strong

all Business Michelle Rowland also supports the campaign.

Suite 5, 1 M P 1800 888 479 | F 03 9824 4 © Maste

Business Bruce Billson

MGA 2016 Annual Report

Suite 5, 1 Milton Parade, Malvern VIC 3144

P 1800 888 479 | F 03 9824 4022 | www.mga.asn.au | ABN 44 004 063 263 Suite 5, 1 Milton Parade, Malvern VIC 3144 Master Grocers Australia Limited | ABN 44 004 063 263 P 1800 888 479 | F 03©9824 4022 | www.mga.asn.au © Master Grocers Australia Limited

56

INDUSTRY REPRESENTATION

STATES

MGA has had various meetings with state ministers and government department heads to discuss an array of matters of concern.

Several submissions have been developed and lodged by MGA in response to a variety of enquiries conducted by government departments including;

Western Australia • • • • •

Queensland

MGAQ Committee - FoodWorks – Wayne Mason – FoodWorks Qld State Manager - FoodWorks – Chris Antonieff – FoodWorks Oxley - FoodWorks – Debbie Smith – FoodWorks, 3 x Toowoomba - Friendly Grocers Group – Chris White CEO - IGA – Roz White – Whites IGA Group Sunshine Coast - IGA – Terry Slaughter – IGA Springfield Lakes - Metcash – Richard Hinson – GM Metcash Qld - Metcash – Zac Mina – Metcash Mgr Commercial and Finance - SPAR – John Costanzo – SPAR Qld State Manager - SPAR – SPAR Oxenford - Supa IGA – Peter Lee – Ritchies of stores - Supa IGA – Peter Piccone – Supa IGA Cairns

Oppose extending Sunday trading Oppose the building of Dan Murphy “Big Boxes” Payroll tax – increase threshold and decrease % State relationship – WA ERA MGA WA Committee to be formed in FY2017

Victoria • • • • • •

Oppose banning Plastic bags Food ingredient labelling – takeaway products Oppose the introduction of 2 additional public holidays – Easter Sunday and AFL grand final eve Oppose additional liquor and tobacco regulations MGA is a member of the Liquor Control Advisory Council (LCAC) statutory body State working relationships – Victorian Commission for Gambling and Liquor Relations (VCGLR) and Victorian Department of Health

• •

New South Wales • • • • • • •

•

Oppose Container Deposit Legislation Food ingredient labelling – takeaway products Payroll tax – increase threshold and decrease % Planning and zoning issues Tobacco – amend the Tobacco Act to allow more than 1 cash register to transact tobacco products Support E–Vapouriser legislation MGA is a member of the Tobacco Control Act Committee, the Small Business Commissioner Group, The NSW Planning Minister Environment and Planning Reform group State relationships – NSW Department of Health / Planning & Environment

Tasmania • •

•

• •

Liquor licensing discussion paper – liquor licenses for supermarkets – member of Attorney General’s consultative group Payroll tax – increase threshold and decrease % Tobacco – support E-Vapourisers

MGA 2016 Annual Report

MGAQ Committee meets with

MGAQ meets with Qld Small

Photos MGAQ Committee with Ipswich Paul Pisasale / MGAQ withBusiness Qld Small Business Photos MGAQ Committee meets withmeets Ipswich Mayor PaulMayor Pisasale / MGAQ meets withmeets Qld Small Minister Leeanne Enoch Minister Leeanne Enoch Ipswich Mayor Paul Pisasale Business Minister Leeanne Enoch

Tobacco – oppose lifting minimum age to purchase tobacco from 18 years, support E-Vaporisers Opposing RACT and Coles and Woolworths fuel discounts

South Australia

• • • • •

Oppose introduction of Plastic Bag bans Opposing applications from NRA to the QIRC to deregulate trading hours Food ingredient labelling – takeaway products Payroll tax – increase threshold and decrease % Tobacco – oppose licensing, Support E -Vapourisers Liquor – packaged liquor licenses for supermarkets State working relationships – Queensland Industrial Relations Commission (QIRC)

ACT •

Tobacco – oppose suggestions to restrict the sale of tobacco products to geography and times, oppose increase to tobacco license fees, support E -Vapoursiers • Planning and zoning issues • Packaged Liquor – oppose the proposed increase in MGAQ meets Qld Industrialfees Relations Minister Hon Grace R JosRoz de White, Bruin, Roz White, Grace MGAQ meets Qld liquor Industrial Relations Minister Hon Grace Grace – L toGrace R Jos–deL to Bruin, Grace license Grace, Wayne and Peter Picconne Grace, Wayne Mason andMason Peter Picconne • MGA is a member of the ACT Liquor Review Committee Oppose introduction of Plastic Bag bans • Oppose•introduction of Plastic Bag (statutory body) –bans Peter Karkazis is the representative •

• applications Opposing applications from QIRC to deregulate trading hours Opposing from NRA to the NRA QIRCtotothe deregulate trading hours

•

• Food labelling ingredient labelling –products takeaway products Food ingredient – takeaway

•

• –increase Payroll taxthreshold –increaseand threshold and%decrease % Payroll tax decrease

•

Tobaccolicensing, – OpposeSupport licensing, E - vapourisers Tobacco• – Oppose E -Support vapourisers

57

COMPLIANCE AND

TRAINING MGA Training continues to be a core pillar that is highly valued by members, particularly in compliance. MGA is a registered training organisation and plays a significant part in the development and implementation of training courses that will benefit members’ businesses.

The training team endured more staff changes, as a consequence of the continued reduction in federal and state based training incentive funding. Long serving MGA National Training Coordinator, Judy O’Reilly left MGA in May 2016.

MGA ONLINE TRAINING MGA delivers training and compliance solutions specific to the needs of independent retailers. Here are a few of our training and compliance solutions readily available for members.

Certificate 3 and 4 trainees have been significantly reduced and will be phased out by September 2016, unless new training incentives are reintroduced by governments.

MGA also ceased its arrangement with ICON Global to deliver the complete WH&S System owing to an array of logistical and managerial difficulties, in favour of developing its own online MGA training website that will specialise in Compliance Training – Food Safety, Responsible Service of Alcohol (RSA), Workplace Health and Safety and Safe Work Instructions.

Food Handling

Responsible Service of Alcohol

Legal and HR Seminars

Safe Work Instructions

Manual Handling

Work, Health and Safety

www.mga.asn.au RSA courses continue to be highly successful both online and face to face.

The ACT has been particularly robust for RSA online training. Adele Dyson’s NE Victoria regional face to face RSA courses are doing exceptionally well. During the year the ACT RSA Refresher online course was made available on the mgaonline website. The online Food Safety Supervisor (FSS) course continues to grow in sales particularly in VIC and NSW. MGA now has the NSW FSS online refresher course up and running with steady sales growth. Marketing this product will drive further growth in sales.

The suite of online training will continue to grow over the next 12 months. Food Safety Supervisor – National, Food Safety Supervisor – NSW, Food Safety Supervisor – NSW refresher course, RSA – SA, WA, QLD, ACT and ACT RSA refresher course. As well as non accredited courses such as customer service and leadership and management.

Safe Work Instructions (SWI) have been developed to sell online. At present there are 17 to choose from including; Ladder safety, Deli slicer, Manual handling, Pallet jack, Carton cutter, and Armed hold up.

ISSUE 4 | 2016

YOUR INDUSTRY NEWS PROVIDED BY MGA INDEPENDENT RETAILERS

POWER OF THE SMALL BUSINESS VOTE

1800479 888• 479 • www.mga.asn.au NationalNational SupportSupport Office •Office 1800•888 www.mga.asn.au

Communication

Together with a change to a modern brand name and style, MGA modified all its logos for its training, employment law products and support services.

The website, magazine, e-Alerts and Checkout newsletters were all modified to project an organisation to members that is modern and agile.

The new MGA website continues to provide members with vital information across a range of business streams (access via password), and industry stakeholders with an overview of MGA’s activities.

The magazine layout and design (produced 8 times per year) has been modified to appeal to a broad audience within our industry to maximise readership.

MGA 2016 Annual Report

58

LEGAL AND HR

SERVICES Sunday penalty rates

Led by Marie Brown, MGA’s Legal and HR team have had another year of addressing many Industrial relations and employment law matters. Members continue to face an increase in unfair dismissal matters which are both time consuming and costly issues to navigate through.

MGA will be conducting one day master classes in employment law in FY2017 to assist store owners, managers and department managers to handle employee workplace matters with care.

The industry was unsettled by a number of wages related news stories. Mainly to do with under payment of wages and other entitlements. The 7-Eleven group of convenience stores were particularly implicated as well as United Petroleum outlets.

Coles supermarkets were also implicated with their EBA renewal failing the BOOT test.

There are many state and federal issues and opportunities that have been addressed by way of representation, surveys or submissions. Some of these include; Federal National Wage Review, Productivity Commission Inquiries, Senate Committee Inquiries and Fair Work Commission liaison.

Staffing in MGA Legal team

MGA’s popular employment law lawyer, George Raptis left MGA early in 2016 to take up a role with the FWC. George’s professional and meticulous attention to detail will be missed

by MGA members around the country. Nikola Prestia, an employment law lawyer who has worked in a private legal firm, has replaced George. Crystal Ong, who spoke fluent Mandarin also left MGA after a short time.

Count of hours by- topic: Legal and HR Services Count of hours by topic July 2015 – June 2016 (1 July 2015 to 30 June 2016)

200

400

Total: 2462 MGA 2016 Annual Report

600

Annual Wage Review

MGA researched and surveyed its members, made a submission to the Fair Work Commission in respect of the annual review of award wages. MGA made a recommendation of no more than 1.1% ($8 per week). The FWC announced a 2.4% increase. Other matters that are being addressed include; • SDA Application for District Allowances • Casuals become permanent after 12 months of employment • Portable Long Service Leave (LSL)

Queensland – deregulation of trading hours

MGA continues to oppose applications made to the QIRC by the NRA to deregulate trading hours in QLD. The MGAQ Committee policy is to oppose all applications. Hearings of particular note include SE Queensland, Robina, Mt Isa, Goondiwindi and before and during the Christmas period. This activity to oppose applications is very costly and resource hungry.

Contacts byHR Services topic: Legal and Count of contacts by topic July 2015 – June 2016 (1 July 2015 to 30 June 2016)

Agreements Bullying Employee Issues General Leases Liquor Litigation Online Training Policies Public Holidays Qld Trading Hours Submissions Transmission of Business Wage Claims Wages & Conditions WHS Workcover 0

By far the biggest single initiative MGA has embarked upon in FY2016 is the application made to the FWC to reduce Sunday penalty rates from 100% to 50%. Final submissions have been made including the discussion concerning reduced Sunday penalty rates then work on Sunday should be voluntary. Justice Ross from the FWC intends to issue a decision sometime in Spring 2016. Should the reduction be approved then this will save our industry sector $147m per annum. We thank our MGA members who contributed $90k toward the running of this case which will cost in excess of $1.5m.

800

1000

Agreements Bullying Employee Issues General Leases Liquor Litigation Online Training Policies Public Holidays Qld Trading Hours Submissions Transmission of Business Wage Claims Wages & Conditions WHS Workcover 0

500

Total: 3970

1000

1500

2000

59

INDUSTRY

COMMUNITY MGA continues to organise high quality events for members, corporate partners, industry stakeholders and state and federal government representatives.

These opportunities are rich opportunities for members to network and share ideas with fellow industry colleagues.

The Annual MGA GALA Ball, held in August 2015 at the Docklands in Melbourne was again successful with over 400 industry people attending raising over $50k for the Reach Foundation.

Industry Community

The Industry Breakfast and AGM in held in Brisbane in November 2015 was a great success with special guest speakers including Hon Bert Van Manen and ACCC Deputy Chairman, Michael Schaper delighting the audience.

The MGA GALA Golf Day held at the Keysborough Golf Greens Senator Peter Whish Wilson, Mister Bruce Billson, HonClub in Melbourne was a sell out with groups Bernie Rippoll, Senator Nick Xenophon and Foodland SAplaying Roger in the morning and afternoon and over 100 Drake

Canberra Business breakfast

people attending the presentation dinner. This event raised over $20k for the Reach Foundation.

The MGA Liquor event, MC’d by Michael Reddrop, held just prior to Christmas 2015, included special guests such at Catherine Myers, CEO VCGLR and Mark Powell from Philip Morris Corporate Affairs.

GALA Ball 2015

Ritchies Annual Supplier update day February 2016

Insert golf day photo – March 2016

2016/17

FUTURE

MGA continues to organise high quality events for members, corporate partners, industry stakeholders and state and federal government representatives. These opportunities are rich opportunities for members to network and share ideas with fellow industry colleagues.

The Annual MGA GALA Ball, held in August 2015 at the Docklands complex in Melbourne was again successful with over 400 industry people attending raising over $50k for the Reach Foundation.

This financial year has been a difficult one for MGA, particularly with the training team having to be reduced.

It is MGA’s aim in the next 12 months to improve in the following areas: to continue to develop, grow and consolidate MGA online training and to further elevate the MGA’s legal team through the Suite 5, 1 Milton Parade, Malvern VIC 3144 P 1800 888 479 for | F 03 9824 4022 |and www.mga.asn.au | ABNbeing 44 004 063 263 MGA has prepared itself the future looks toward delivery of master classes in employment law around Australia. © Master Grocers Australia Limited a sustainable and highly effective industry organisation. MGA aims to more than adequately represent its members at local, MGA will continue member and support service discussions state and federal levels of government, as well as satisfy the with the Timber Merchants Association, and the Australian day to day needs of members with an extensive range of legal Hairdressing Council as well as an additional association yet and HR services and training solutions. to be selected.

MGA 2016 Annual Report

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