Master Plumber Western Australia - Issue 22 - Summer 2018-2019

PLUMBER T H E O F F I C I A L M A G A Z I N E O F T H E M A S T E R P L U M B E R S & G A S F I T T E R S A S S O C I AT I O N O F WA

MASTER

ISSUE 22 | SUMMER 2018/19

WESTERN AUSTRALIA

Health & Safety: New penalties explained Driving the industry forward

WORLD PLUMBING DAY 2019 Sir Bob Geldof to visit Perth

MASTER PLUMBER | SUMMER 2018

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MASTER PLUMBER MAGAZINE | Issue 22 | Summer 2018/19

CONTENTS 7 8

6

5

2 1

3

4

16

State of states

21

Beat the heat

24 Remote plumbing

WA the poorest performer

Stay safe over summer

Geldof to help launch new initiative

6 Editorial

BUSINESS ESSENTIALS

VEHICLE REVIEW

26 Being the boss

33 Toyota Corolla

28 New FBT rules on vehicles

MEMBER PAGE

PRODUCTS & SERVICES

35 Brett’s Peek

Member advantages

8

President’s Report

10

From the CEO

NEWS & VIEWS 12

Pipe problems

30 Aussie Jetters for hire

14 Unfair trading 18

Security of payments

HEALTH & SAFETY 19 Silicosis risk 20 New safety penalties

INDUSTRY FEATURE 22 Driving the industry forward

Health & Safety

ProChoice eye protection

31

Viega expansion

Honeywell earplug dispenser

32 ACO Australia hygienic bakery design Rig Dog gloves Ridge tool C-cutter

Products & Services

Vehicle review

MASTER PLUMBER | SUMMER 2018

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Infinitely Better The All New Infinity 12L Continuous Flow Hot Water

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MASTER PLUMBER | SUMMER 2018

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Infinity 12L Continuous Flow Hot Water The newest offering to our market leading range, the Infinity 12L offers all the features and benefits of its larger counterparts but aimed at smaller dwellings and the replacement mechanical instantaneous market. This unit utilises 240V power to deliver unparalleled water temperature stability, energy efficiency and reliability. The Infinity 12L comes with a status monitor that displays the set temperature, assists with servicing and fine tuning.

Controller options also ensure that energy efficiency and user comfort is maximised, controllers can be either wireless or hard-wired. For installations that require a minimum footprint or an unobtrusive aesthetic look, our recess box and pipe cover options are the perfect solution.

Specification / Accessories Factory pre-set temps

50/60

Min operating water flow (L/min)

1.5

Min water pressure (kPa) Max 1000 (kPa) 120

Gas rate (mg/h)

Flow rate (L/Min)

NG (Min)

NG (Max)

LPG (Max)

LPG (Min)

25°C Rise

20°C Rise

16

92

16

92

12

15

Star rating

Width (mm)

Depth (mm)

Height (mm)

Weight (kg)

6.2

356

202

571

13.5

Controller

Pipe Cover

Recess Box

Our new Universal Controller is designed for user comfort and reduced water wastage.

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DPS Rinnai Features and Benefits • Quality Japanese Continuous Flow product • Infinity hot water systems have over 28 years of proven reliability.

• Only 92mj, makes it a prefect replacement for old instantaneous hot water units • Very low minimum flow rate: compatible with water saving low flow fixtures • Compact size • High Efficiency over 6 stars • Warranty of up to 25 years** • Built in Status Monitor that displays the set temperature, assists with servicing and fine tuning.

• Available in 50°C & 60°C models • 50 degree models are adjustable* so that temperature loss in the pipes can be overcome • Available in LP & NG *Adjustable though 5 incremental steps. For 60°C plus installations a tempering valve in accordance with AS 3500.4 is required **Made from premium materials and built to last, Rinnai provides a standard 3 year (12 Year Heat exchanger) parts and labour warranty on all Rinnai Infinity Continuous Flow Hot Water systems plus an optional 13 years extended heat exchanger warranty.

MASTER PLUMBER | SUMMER 2018

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EDITORIAL

LEAVE THE TOUGH TIMES BEHIND As another year comes to an end, there’s a hint of quiet optimism in the air.

I

f we had to pick an overarching sentiment for 2018, many of us are likely to say: “Glad that’s over.”

But nobody has ever achieved much by focusing on what’s behind us, so looking ahead, the general consensus, while reserved, is that things are on the up.

Whether that comes from a position of “can’t get any worse” or one based on the projections of economists and industry commentators really doesn’t matter. What does matter is that 2019 should be an improvement on the past few years.

While it’s been tough, it has also been a year of change – or more precisely, of planning for change.

You can read all about that in the President’s Report (page 8) and From The CEO (page 10). There are also news pieces regarding the proposed changes to plumbing regulation and overcoming some of the issues on security of payment (page 18).

The MPGA has pulled off somewhat of a coup for 2019 with Sir Bob Geldof headlining our World Plumbing Day event.

We’ve elected to run the event a few days early because 11 March is a Monday and we all know Sir Bob doesn’t

like Mondays. But there’s a very serious side to his keynote address and the campaign tied to it.

The MPGA will be launching a pilot program to introduce long-term solutions for plumbing in remote communities – read all about it on pages 24-25.

We’ve also taken the opportunity to spell out our wishes and demands in Driving the plumbing industry forward (pages 22-23).

Plus we cover a range of other issues, provide the usual mix of Health and Safety (pages 19-21), Business Essentials (pages 26-28) and Product information (pages 30-32).

We had the opportunity to get behind the wheel of the sporty little Toyota Corolla (page 33) and have been busy lining up more member deals (page 35).

We look forward to continuing our work for the good of the industry and public health next year and wish everyone a very happy festive season and all the best for 2019.

Until next time!

Ed

PUBLISHER: Master Plumbers & Gasfitters Association of Western Australia EDITING & DESIGN: Spoke Public Relations E: hello@spokepr.com.au ADVERTISING INQUIRIES: advertising@mpawa.asn.au EDITORIAL INQUIRIES: newsroom@mpawa.asn.au Master Plumbers and Gasfitters Association of Western Australia POSTAL ADDRESS: PO Box 5218, East Victoria Park, WA 6981 PHYSICAL ADDRESS: Level 3, 353 Shepperton Rd, East Victoria Park, WA 6101 PH: (08) 9471 6661 FAX: (08) 9471 6663 WEB: www.masterplumbers.asn.au MPGA OFFICE BEARERS: President: Geoff Kelly Vice President: Ron Grant Immediate Past President: Bill Busby CEO: Murray Thomas

The Editor

YOUR EXECUTIVE COMMITTEE TEAM

EXECUTIVE COMMITTEE: Derek Rowe, Paul O’Leary, Paul Manifis, Matt Johnson, Max Jones, Michael Harley, Peter Dawe, Mark Sadler GEOFF KELLY

RON GRANT

BILL BUSBY

MURRAY THOMAS

President

Vice President

Past President

CEO

MATT JOHNSON

MAX JONES

Committee Member Committee Member

ISSN 2208-2256 (online)

Disclaimer:

MIKE HARLEY

MARK SADLER

PAUL MANIFIS

Committee Member Committee Member Committee Member

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MASTER PLUMBER | SUMMER 2018

PAUL O’LEARY

PETER DAWE

DEREK ROWE

Committee Member Committee Member Committee Member

While all care has been taken to ensure the accuracy of the information included in this publication, no responsibility is taken, unless expressly indicated, by the Master Plumbers & Gasfitters Association of WA for any inaccuracies.

Inclusion of opinions, statements and comments does not constitute endorsement by the MPGA or related entities of such content.

Content within this publication is protected

by Australian copyright law and may not be reproduced without express written permission by an office bearer or delegate of the MPGA.

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MASTER PLUMBER | SUMMER 2018

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PRESIDENT’S REPORT

By Geoff Kelly

A tough year ends but positive signs ahead I t’s fair to say 2018 has been a tough year for many.

Noises of a recovery in the WA economy have rumbled about for some time but the fact is that every downturn has a very long tail. And unfortunately, small businesses are often caught at the end of that tail.

That means while big industry talks of new opportunities, many plumbers are left waiting and wanting.

It has not been helped by the sudden closure of a number of major contracting companies, which left numerous subcontractors out of pocket and unlikely to be paid at all.

The new housing market has slumped to its lowest point since records began more than 30 years ago.

But there are some brighter lights, however faint, on the horizon with the overall economy improving and population growth forecast as a result.

When population grows, demand for established properties follows. That drives established home prices up until they once

again overtake the cost of new builds and then we see increased demand for new homes. There is likely to be a shift from a strong renovation market at present to more focus on new builds.

At the commercial and industrial end of the market, the outlook is increasingly positive, with more than $17b in new major projects slated to commence in WA. That applies particularly in mining, oil and gas, and infrastructure as commodity prices start to improve.

In spite of the ongoing lull, the Master Plumbers and Gasfitters Association has kept its foot on the pedal over the year, lobbying governments to influence proposed changes that will impact our members and the broader industry.

We attended meetings with various departments and stakeholders in Canberra and Perth throughout the year to continue pushing for better regulation of the industry, particularly when it comes to fit-for-purpose products and point of sale legislation.

The Association might be sounding

like a broken record on these issues, but that’s because they are vital to the continual improvement of our industry and the benefit of public health.

In developed countries like Australia, it is simply not acceptable for members of the public to be exposed to preventable issues such as lead contamination, asbestos or waterborne diseases.Yet it still happens.

That’s why it is absolutely imperative that we have controls in place through the entire product supply chain to ensure fittings used in the delivery of drinking water are safe. And it’s why we need to maintain tight regulation on the profession of plumbing, with a focus on effective and up-to-date training, ongoing development and tight control over work standards.

On behalf of the Master Plumbers and Gasfitters Association of WA executive team, I thank you for your ongoing support of your Association and your industry. We wish you all the best for the festive season and look forward to working for you and with you in 2019.

Because public health matters.

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FROM THE CEO

TIME FOR ACTION ON UNACCEPTABLE HEALTH RISKS

By MURRAY THOMAS, CEO

Australia punches above its weight in terms of global economic performance.

I

n fact, in spite of a relatively small population, at the end of 2017 we ranked 11th on the World Economic League Table – in other words, we are the 11th richest nation on earth.

Perhaps that is why our standard of training in areas such as plumbing is world class.

But there are some factors that bely our position.

One of them is the unacceptable risk to public health presented by avoidable and easily manageable situations.

As plumbers, we have a responsibility to the communities in which we work to ensure delivery of clean drinking water and effective sanitation.

Those two things are the foundation on which good health is built.

But we face hurdles on a daily basis that make it exceptionally difficult to fulfill our responsibilities.

Throughout 2018, we’ve seen a spate of issues around lead contamination of drinking water, not least of which was the Perth Children’s Hospital debacle, found to be due to plumbing fittings.

The ongoing issues culminated in late November with media reporting that Australian households had been advised to run taps for 30 seconds before drinking water in order to reduce the risk of lead consumption.

Lead is contained in brass fittings and

depending on manufacturing quality, can leach into water, particularly when that water sits idle in contact with those fittings.

Australia’s WaterMark Certification Scheme is designed to ensure products meet the required standards.

But there’s an even bigger issue. World Health Organisation guidelines state that no level of lead exposure is safe.

Despite WHO guidelines, in the US and Canada, 0.25 per cent lead content is allowable in brass fittings. In Australia, it’s currently 4.5 per cent.

We also need to enforce adherence to the required Australian Standard at every level of the supply chain, from manufacture, to wholesale, to retail and beyond.

As plumbers, we are effectively the front line of defence for product compliance and can be penalised for installing noncompliant products.

But the responsibility needs to start at the beginning of the chain.

A recent report suggests other variables such as increased chlorine, pressure fluctuations and heat are having an adverse effect on the piping systems that reticulate water. This needs further investigation.

These are all things that can be prevented or alleviated. But while governments focus on short-term economic growth, public health remains at risk. A unified, concerted and long-term approach to addressing and maintaining

“ ... we face hurdles on a daily basis that make it exceptionally difficult to fulfill our responsibilities.”

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MASTER PLUMBER | SUMMER 2018

INDUSTRY RALLIES IN TIME OF NEED IN OCTOBER, YOUNG plumber Ryan Duffus was tragically killed in a worksite accident at Mosman Park.

Hailing from the Eastern States, Ryan’s fiancée and family faced significant costs to return his body home to NSW and pay for his funeral. The MPGA and Ryan’s employer, Vivian Plumbing, set up a crowdfunding campaign to seek support for Ryan’s loved ones.

With an initial target of $20,000 being sought, the generosity of the plumbing industry, friends, family members and complete strangers was overwhelming. In the end, more than $36,000 was raised to help provide some comfort in the family’s time of mourning.

We thank everyone for their generosity and caring spirit, and offer our deepest condolences to Ryan’s family and friends.

appropriate standards is vital. Fortunately, there are moves afoot to introduce measures to improve health and safety.

In 2019, the Master Plumbers and Gasfitters Association will continue to lobby for change and work to action a broad range of issues to improve public health and safety.

MASTER PLUMBER | SUMMER 2018

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NEWS & VIEWS

Reports link hot weather to pipe failures THE MASTER PLUMBERS and gasfitters Association is aware of a number of recent reports of poly pipe failures which have been linked to high daily temperatures and the use of certain chlorine dioxide.

Master Plumbers was recently contacted by a member who conducts plumbing services in the remote north of WA regarding the use of poly pipes in areas that are subject to high temperatures.

He said he had been required to carry out repair work as a consequence of alleged failures of poly pipes. Because they were often laid under concrete slabs, repair works often required excavation and re-concreting, which could be very expensive for customers.

The alleged failure of the poly pipes has been attributed to their use in areas which experience very high temperatures.

How hot is hot?

The Pilbara records some of the highest temperatures in Western Australia. During summer and early autumn (December to March), average daily temperatures exceed

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30C across the region, with average daily maximums exceeding 35C from October to March. In northern inland areas, such as Marble Bar, average maximums exceed 40C during summer and temperatures exceeding 45C are common.

The Plastics Industry Pipe Association of Australia released a paper titled Chlorine Dioxide Disinfectant for Drinking Water – Effect on pipe and seal materials. The paper stated: “Chlorine dioxide has been shown to be more aggressive towards polyolefins such as polyethylene than the other water treatment chemicals. Especially at service temperatures above 20C, chlorine dioxide will shorten the service life of polyethylene pipes.”

installations of internal plumbing in homes across the Australind area.

Australind is located about 12km north of Bunbury. Highest average temperatures are recorded in February with an average range from 15.9C to 30.1C. The hottest temperature for 2018 was recorded on 14 January when the mercury reached 40.6C. Water Corp’s communication acknowledges the use of chlorine as a safe and effective disinfectant and advises that tests to the drinking water it supplies to Australind (for metals including copper) show that it is well below the maximum level of 2 milligrams per litre, as outlined in the Australian Drinking Water Guidelines.

Pipes in Australind

Opportunity for Feedback

Master Plumbers is also aware of an online advisory from the Water Corporation responding to Iplex Pipelines’ allegation that chlorine and deposits of copper ions from the water supply caused the degradation of pipes it supplied for the

Master Plumbers is seeking industry feedback regarding any products in the water supply that show failures.

If you have any details to contribute, please contact Master Plumbers on 9471 6661 or office@mpawa.asn.au

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NEWS & VIEWS

PLUMBING GROUP IN HOT WATER OVER “MISLEADING” ADVERTISING

A A Canberra-based plumbing group is facing Supreme Court action over allegations of misleading advertising.

CT Fair Trading Commissioner David Snowden launched the court action against Your Local Plumbing Group Co Pty Ltd due to advertisements published under different business names.

He alleges the advertising created the impression that the 11 businesses were separate when they were in fact linked. Advertising ran more than 100 times online and in the Yellow Pages between 2016 and 2018.

Mr Snowden also alleges the company misrepresented the number of years it may have been operating.

Advertising is deemed to breach

Australian consumer law if it misleads or deceives consumers.

The commissioner is alleging that Your Local Plumbing Group Co’s sole director, Shameer Khan, was “knowingly concerned in the alleged conduct”.

“This case highlights the need for all licensed individuals and companies to ensure that advertisements are accurate and not misleading,” Mr Snowden said.

The commissioner is seeking declarations, injunctions, pecuniary penalties, corrective advertising, and costs through the proceedings.

Companies can be fined a maximum of $1.1 million for making false or misleading claims, under consumer laws.

If you need advice on legal and industrial relations matters, as a Master Plumbers and Gasfitters Association of WA member you can access services through the Association.

Contact us on for more information – see www.masterplumbers.asn.au for contact details.

PLUMBING REFORM – the next steps Did you have your say on proposed reforms to Western Australia’s plumbing laws? The State Government’s Building and Energy team shares an update on the regulatory impact process.

M

ore than 1,000 people have shared their thoughts on the final round of reforms arising from the 2013-14 review of plumbing regulation in Western Australia.

Public comment was invited between 1 May and 31 July this year through a Consultation Regulatory Impact Statement (CRIS) released by the Department of Mines, Industry Regulation and Safety’s Building and Energy.

The CRIS contained 21 proposals, including: • The introduction of a new funding model to enable the plumbing regulator to carry out its compliance and enforcement functions more effectively • Expanding the scope of ‘water supply plumbing work’ to include nonmetered supply and the supply of non-drinking water • New requirements on owners of certain high-risk buildings to ensure that plumbing safety devices – such as backflow prevention devices and

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MASTER PLUMBER | SUMMER 2018

thermostatic mixing valves – are regularly tested and maintained in proper working order • Amendments to the scope of “minor plumbing work” and type of work permitted to be carried out by holders of a Restricted Plumbing Permit The CRIS also sought comment on other issues, such as: • Whether there should be a registration requirement for designers of complex plumbing installations and for those who design and/or verify performance solutions under the Plumbing Code of Australia • Whether there is a case for introducing a licence category for those who carry out fire-fighting water services (Part B4 of the Plumbing Code of Australia) • Whether the scope of drainage plumbing work should be expanded to also include the construction/ installation of on-site wastewater treatment systems such as septic tanks and aerobic treatment units

A total of 1,064 people responded to the CRIS. Of those, 816 wrote in support of a combined submission developed by members of the Master Plumbers and Gasfitters Association of Western Australia gathered during a series of state-wide consultation sessions organised by the Association.

Building and Energy is analysing the comments contained in the submissions before preparing a Decision Regulatory Impact Statement (DRIS) – the final stage in the regulatory impact assessment process.

The DRIS will examine the impacts of the proposed reforms in the light of the comments received during the consultation period and will set out the State Government’s final position.

It is expected to be published in the first quarter of 2019. Work will then commence on developing the regulatory and legislative amendments required to implement the decisions contained in the DRIS. For more information, contact Building and Energy at bcinfo@dmirs.wa.gov.au or (08) 6251 1377.

MASTER PLUMBER | SUMMER 2018

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NEWS & VIEWS

WA TRAILS OTHER STATES ON ECONOMIC INDICATORS Western Australia was the nation’s worst performing state in three of eight economic indicators and second worst on the other five, according to the most recent State of the States report by CommSec.

T

he October 2018 report showed that the only vaguely positive outcome for WA was growth in equipment spending, which had reached its highest point in 3.5 years. But it was still the second worst performing state with overall spend down 11 per cent on WA’s 10-year average.

Of course, the decline needs to be considered in relation to the extended boom period when equipment spending in the mining, energy and construction sectors hit record highs. But the impact of the boom ending continues across many indicators.

It is no surprise that WA fared worst of all states for economic growth, however we did record slight growth (0.9 per cent) compared with our rolling decade average, while the Northern Territory saw a decline compared to its average performance (down 0.5 per cent). South Australia and Queensland were the next poorest performers on economic growth.

On a 20-year average, WA still has the weakest job market of all states and territories. The jobless rate of 6.1 per cent is more than 20 per cent higher than the 5.1 per cent decade-average jobless rate.

WA construction work carried out in the June quarter was 38.2 per cent below the decade-average and down 0.8 per cent on a year ago, although the rate of decline has slowed over the past 18 months.

Other factors measured included retail spending, population growth, housing finance and dwelling starts.

CommSec put many of the poorer performing states’ fortunes down to the transition of resource sector projects from the construction phase to production.

Commenting on the report, Master Plumbers and Gasfitters of WA CEO Murray Thomas said it came as no surprise to many in the plumbing industry.

“There’s no great secrets being revealed in the latest State of the States quarterly

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MASTER PLUMBER | SUMMER 2018

7 8

6

5

2 3

1 • How the states rate •

4 report,” Mr Thomas said.

“Few in the plumbing sector will deny we’ve faced some tough years and it’s taking time for the cycle to pick up again.”

Mr Thomas also said it was important to note that the measurement was relative to the economies of other states and that was not always a true reflection of the situation.

“Being so reliant on the resources sector, WA is always going to be more susceptible to the peaks and troughs,” he said.

“When we head into boom times, there’s inevitably a big spike in jobs, which brings people into the State so we see strong growth in population, demand for housing and increased retail spending.

“That has knock-on effects on just about every part of the economy, including lending,

new home starts and vehicle registrations.

“But there’s a flipside to it when the cycle ends and many of those that came to the State lured by employment will return home or go elsewhere chasing work, so all the same indicators are affected.

“But what the report does indicate is that WA appears to have hit the bottom on many indicators and we are therefore likely to see improved conditions ahead.

“That includes a recent reduction in the unemployment trend and a slight lift in recent months of new home approvals.

“It has been a long time between drinks for many in the plumbing game but we can be slightly more confident that the signs are now pointing to an upswing.”

MPA SKILLS PLUMBING APPRENTICE OF THE YEAR 2018 MPA Skills Plumbing Apprentice of the Year 2018 was held at Burswood on Swan on Friday 9th November 2018. The Plumbing Apprentice of the Year award was presented to Bailey Ullrich who is employed by MPA Skills Apprentice Employment and is hosted by ITC Plumbing Solutions. Joint 2nd place was awarded to Brent Marsh employed by Johnson & Co and Graedyn Hazell employed by MI Plumbers, both train with MPA Skills. MPA Skills is excited to see them all win and this is testament to their hard work and the quality of training received on-the-job with their employer and off-the-job with MPA Skills.

MPA Skills Winners: Top Left - PLUMBING APPRENTICE OF THE YEAR 2018 [sponsored by Caroma] Bailey Ullrich (Winner), Top Middle - MPA Skills Plumbing Apprentice of the Year Trophy, Top Right - 1st YEAR PLUMBING ACHIEVEMENT AWARD [sponsored by AMA] L to R Peter Keenan (AMA) Shona Powell-Hastie (2nd Place) Jacob Hosking (1st Place) Samuel Rix (2nd Place), Middle Right - 2nd YEAR PLUMBING ACHIEVEMENT AWARD [sponsored

by Dial Before You Dig] L to R Justin Scotchbrook (Dial Before You Dig) Cole Veness (2nd Place) Richard Finn (1st Place) Curtis James (3rd Place), Bottom Right - 3rd YEAR PLUMBING ACHIEVEMENT AWARD [sponsored by Galvins] L to R Michael Perry (Galvins) Garikai Tutisai (2nd Place) Oliver Naughton (1st Place) James Elias (3rd Place), Bottom Middle - VET IN SCHOOLS AWARD [sponsored by CTF] L to R Alan Jackson (CTF) Bethany Headen (MPA Skills) Jake Lee (Winner), Bottom Left - MPA SKILLS PLUMBING APPRENTICE OF THE YEAR 2018 [sponsored by Caroma] L to R Steve Williams (Finalist) Bailey Ullrich (Winner) Jack Boyle (Finalist) Richard Finn (Finalist) Graedyn Hazell (Joint 2nd Place) Brent Marsh (Joint 2nd Place

For more information, please call 08 9471 6600 or visit mpaskills.com.au RTO 1892

MASTER PLUMBER | SUMMER 2018

17

NEWS & VIEWS

Project Bank Accounts set for expansion in 2019

Subcontractors in the building and construction industry will have increased payment protection for Government works projects under changes to be introduced in 2019.

T

he State Government has announced plans to significantly expand Project Bank Accounts (PBAs) from July 1, 2019.

PBAs will apply to a wide range of Government projects where the total value of works exceeds $1.5 million.

A Subcontractor Support Unit will also be established and overseen by the Small Business Commissioner. The Commissioner will have the power to: • Compel head contractors on Government projects to prove payment to subcontractors • Shield subcontractors from retribution for lodging complaints by allowing them to be anonymous • Conduct random and targeted audits, based on intelligence and tip-offs • Make recommendations to Government to sanction head contractors, ultimately impacting on their future procurement opportunities in WA • Showcase best practice contractors in the State The unit is expected to be operating in the first half of next year.

PBAs are designed to provide better protection to subcontractors, reducing potential financial stress on them, their employees, suppliers and families brought

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MASTER PLUMBER | SUMMER 2018

about by late or non-payment.

Small Business Minister Paul Papalia said building and construction was a highrisk industry for small businesses, with subcontractors exposed to high levels of late payments, non-payments and insolvencies.

“As Minister, it disturbed me how little was done under the previous government to step in to protect subcontractors - some of our most vulnerable small businesses in the State,” he said.

“It will no longer be acceptable for a head contractor on Government-led projects to fob off their responsibilities.

The McGowan Government will set an example for the private sector by ensuring all subcontractors are rightfully paid.

“I look forward to the Commissioner being empowered to receive proof of payment and to showcase our most deserving, best practice contractors.”

Finance Minister Ben Wyatt said the Government would begin to rollout the Project Bank Account arrangements, which currently apply to the majority of projects administered by the Department of Finance, to as many projects as practicable.

The State Government will provide a definitive guide to which projects will be covered in early 2019.

Master Plumbers and Gasfitters Association of WA CEO Murray Thomas said the association welcomed the move to increase protections for small business owners and hoped it would set a precedent for prime contractors across all areas of the construction sector.

There has been a number of highprofile collapse of contracting companies over the past few years that have had a big impact on plumbers and other trades and services,” Mr Thomas said.

“But it’s not only restricted to Government projects and the next step is to ensure legislation and regulatory procedures are put in place to protect subcontractors working on commercial and non-government projects.

“We’d also like to see more robust protections available for subcontractors working on projects with a value less than $1.5 million, such as residential housing and small commercial builds.

“These sorts of situations can often exceed the dollar value handled by the Small Claims Tribunal, meaning the only course of action for small business owners is to pursue payment through the courts, and the time and legal expenses involved can often be crippling.”

HEALTH & SAFETY

Silicosis: The ‘forgotten’ silent killer PLUMBERS are being urged to take extra precautions when it comes to working with products that contain crystalline silica due to an alarming increase in the rates of the deadly lung disease, silicosis.

Master Plumbers and Gasfitters Association of WA CEO Murray Thomas said while many plumbers understood the dangers of working around asbestos, silicosis was another very real occupational risk. “There has been a lot of valuable publicity about the dangers of asbestos and we’ve seen a big increase in the number of plumbers and other trades proactively being tested,� Mr Thomas said. “But medical professionals are seeing a dramatic increase in the number of cases of silicosis, caused by exposure to unsafe levels of crystalline silica which is commonly generated when dry cutting or drilling various types of natural and

engineered stone.�

According to Safe Work Australia, “crystalline silica is found in sand, stone, concrete and mortar. It is also used to make a variety of products including composite stone used to fabricate kitchen and bathroom benchtops, bricks, tiles and some plastics. When workers cut, crush, drill, polish, saw or grind products that contain silica, dust particles are generated that are small enough to lodge deep in the lungs and cause illness or disease including silicosis.�

A recent report by the ABC’s 7.30 program indicated that doctors believe Australia is facing the worst occupational lung disease crisis since the peak of the asbestos disaster.

Like asbestos, silica can cause a range of respiratory diseases which are generally incurable and often life threatening.

The Queensland Government

Master Plumbers and Gasfi ers Association of WA is now part of something bigger at Officeworks.

OWO3835_MPAWA_180x125mm.indd 1

recently issued an urgent warning after 22 silicosis claims were lodged. The practice of dry cutting stone benchtops has been banned in Queensland.

Mr Thomas said the risks of exposure could be controlled through use of correct personal protective equipment and by utilising safe techniques. “As with any activity that generates excessive dust, it is vital to use the right mask and to ensure it fits properly, as well as ensuring there is adequate ventilation and that dust generation is limited through wet cutting or drilling where possible,� Mr Thomas said. “As with many activities undertaken on work sites, taking a bit of extra time to ensure your safety and that of other people around you is an absolute life saver.�

For more information on silicosis, see www.safeworkaustralia.gov.au/silica or talk to a medical professional.

Officeworks has partnered with Master Plumbers and Gasfi ers Association of WA to provide you with the best products, services and solutions to help make bigger things happen for your business.

Register now for a 30 Day Business Account at officeworks.com.au/mpawa

9/11/18 10:24 am

MASTER PLUMBER | SUMMER 2018

19

HEALTH & SAFETY

Penalties get tough for health and safety breaches

T

he McGowan Government has increased penalties for workplace health and safety offences to bring Western Australia into line with other states.

For the first time since 2004, the amendments have increased penalties for businesses that commit health and safety offences under the Occupational Health and Safety Act. The McGowan government made a commitment at the last election to modernise health and safety legislation, and the increase in the penalties is the first step in delivering that promise.

In addition to the harsher penalties, the Government is looking to consolidate the current health and safety legislation and align that with the Model Work Health and Safety (WHS) Act. The modernised legislation has a focus of using a risk-based approach to the management and control of hazards which will allow companies to implement fit-forpurpose solutions.

THE SCARY REALITY • Two employees are injured every hour seriously enough to take 1 or more days of work1 • One person is fatally injured at a workplace every 22 days2 • 13 Traumatic injury fatalities in WA in 2017-2018 • 1 in 78 employees had a loss time injury • 5002 employees were hurt to the extent that they needed more than 60 days off work 1 Based on workers compensation claim data – source Worksafe Key OHS Stats 2 Five-year average – source Worksafe Key OHS Stats.

PENALTIES Level 1 - applies to failure to comply with WHS duty Level 2 - applies when there is a contravention, but it does not cause death or serious harm Level 3 - applies when the contravention results in death or serious harm Level 4 - applies if gross negligence is involved

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MASTER PLUMBER | SUMMER 2018

Penalty Level 1

Duty Holder Employee

1 1

Individual

1 1

Individual

2 2

3

Individual

3 3

4

4 4 4

$50,000

Subsequent

$6,250

$60,000

First

$25,000

$100,000

Subsequent

$31,500

$120,000

$50,000

$450,000

Subsequent

$62,500

$570,000

First

$100,000

$250,000

Subsequent

$125,000

$350,000

$200,000

$1,500,000

Subsequent

$250,000

$1,800,000

First

$200,000

Subsequent

$250,000

Body Corporate First

3 Individual

New OHS Penalty

$5,000

Body Corporate First

2

Old OHS Penalty

First

Body Corporate First

1 2

Offence

$400,000

Subsequent

$500,000

First

$250,000 and 2 years imprisonment

$550,000 and 5 years imprisonment

Subsequent

$312,500 and 2 years imprisonment

$680,000 and 5 years imprisonment

$500,000

$2,700,000

$625,000

$3,500,000

Body Corporate First Subsequent

FIVE STEPS TO HELP PROTECT YOUR BUSINESS AND EMPLOYEES There are five simple steps that can help you ensure you are doing what you should to comply with the legislation and more importantly, to allow your team members to go home in the same state that they presented to work.

1. Identify all hazards associated with your work activities 2. Make sure you have safe work processes in place 3. Make sure your team are trained and competent to perform their work 4. Report and investigate incidents, hazards and near misses 5. Make sure your tools and equipment are maintained There is a misconception that you need lots of complicated procedures and systems

to manage your risks when in reality, good health and safety programs should be simple and fit for purpose.

The Master Plumbers and Gasfitters Association and SafeX have worked together to develop a product which assists plumbing businesses to work consistently and efficiently. The SafeX product provides proactive solutions to risk exposures.

If you would like to know more please call the MPGA on (08) 9471 6661 or email anita@ussaglobal.com ANITA SLIGHT is the Managing Director of safety consultancy USSA Global and founder of SafeX, a safety management solution for small and medium-sized businesses.

HEALTH & SAFETY

1. ICE CONSUMPTION: Crushed ice consumption acts as a “heat sink” in the body and is a proven method to effectively lower core body temperatures.

2. COOLING: Onsite, reasonable airflow is essential and PPE-free areas should be available to allow workers to cool off during breaks or when required. Providing additional options such as cooling vests and fans are also highly effective methods of minimising or eradicating heat stress.

3. HYDRATION: Workers should be supplied with a bottle of water or electrolyte drink before their shift to drink then fill up for further consumption. Water refilling stations should be made available for easy access during shifts. Pre-shift and post-shift hydration testing is also recommended.

4. WORK RATE: The harder people work the more body heat they produce. Work rates need to match individual workers by allowing them to self-pace and adjust their workloads based on how they are feeling.

5. NUTRITION: Loss of appetite is common in the heat, but workers should go no more than six – eight hours without food when sweat rates are high.

6. SLEEP: Sleep is a major part of postshift recovery and quality, uninterrupted sleep in a cool environment is important.

Beat workplace heat stress this summer Summer is fast approaching and that means long days in the heat for lots of trade workers.

T

he outcome of heat exposure can be loss of productivity at best, and potentially dangerous heat stress at worst.

While staying out of the heat altogether may not be an option, here are nine steps you can take for yourself and your workers to help minimise these risks.

7. EDUCATION: Training workers about heat stress will ensure they can recognise the signs and symptoms in co-workers who may be suffering and equip them to provide assistance. Topics should include lifestyle factors that contribute to heat tolerance.

8. MONITORING OF WORKERS: Examination of skin and core body temperatures combined with pre and post-shift hydration monitoring can assist workers in fine tuning their hydration to match requirements.

9. HEAT STRESS MANAGEMENT POLICY: A policy detailing the responsibilities required to prevent and manage heat stress in staff is an essential document for organisations that operate in hot conditions.

MASTER PLUMBER | SUMMER 2018

21

DRIVING THE PLUMBING INDUSTRY FORWARD We enjoy a high standard of professionalism in plumbing in Western Australia. However, there is still much room for improvement and as 2018 comes to an end, the Master Plumbers and Gasfitters Association of Western Australia reiterates calls on State and Federal governments and regulatory authorities to implement the changes required so public health and safety is protected and enhanced.

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MASTER PLUMBER | SUMMER 2018

T

he past year has been significant in terms of plumbing regulation and moves for reforms in Western Australia.

The Department of Mines, Industry Regulation and Safety’s Consultation Regulatory Impact Statement drew a significant number of responses from around the State, more than 75 per cent of them in support of a combined submission by the MPGA. But the CRIS only addressed 21 of 51 proposals contained in the original ACIL Allen Final Report into plumbing reform.

While a small number had been previously dealt with by changes in regulations, the MPGA’s preferred position is adopting the current version (2016) of the Plumbing Code of Australia in its entirety.

To that end, there are some major initiatives the MPGA would like to see implemented for the better of the industry and the benefit of public health and safety.

1. Maintaining an unequivocal focus on public health and safety The work carried out by plumbers is vital to developing and maintaining the health and safety of all people in the communities in which we work. This is due to provision of clean water, effective sanitation and

safe installation of gas and hot water infrastructure.

But vigilance and thorough regulation is required to ensure standards are maintained, products are 100 per cent compliant and work practices are safe and fit for purpose.

WHAT’S NEEDED • A more rigorous and mandatory audit process, including the appointment of more plumbing inspectors, for public buildings such as healthcare facilities, schools and other high-traffic facilities • Introduce mandatory testing of potable water, backflow and cooling towers, and immediate remediation procedures, for all schools, healthcare facilities, apartment complexes and other high-traffic public buildings • Introduce legislation on WaterMark Certification at point of sale, ensuring product compliance is enforced at every step of the supply chain • Mandate gas appliance servicing for public buildings as described above • Run public awareness campaigns on the risks of asbestos, lead, carbon

monoxide and legionella to promote the vital role of effective plumbing and ongoing maintenance 2. Plumbing product compliance The growing availability and popularity of online sales, coupled with changes in the way industry procures plumbing products, has led to increasing issues of non-compliant plumbing products not only reaching Australian shores, but also being used in high-profile public buildings such as the Perth Children’s Hospital.

WHAT’S NEEDED • Legislation to enforce point-ofsale WaterMark Certification of all plumbing products to be displayed for retail, trade and online sales to Australian customers • Complete modules constructed offsite to be supplied with a manufacturer’s assurance and subject to mandatory inspection and issue of a certificate of compliance by the licensed plumber responsible for installation 3. Improved services for remote communities Quality of drinking water and waste management in remote indigenous communities is in some cases below World Health Organisation recommended standards.

WHAT’S NEEDED • A formalised process for inspecting current infrastructure and fittings, and immediate remediation of issues deemed to be unsafe • Targeted training programs to encourage members of communities to pursue plumbing careers with a focus on the needs of their own communities • See pages 24-25 for more information 4. Fit-for-purpose training and compliance for increasing complexity of projects Plumbing today has evolved to include a vast range of requirements, particularly with the increase in large commercial and industrial projects. In line with that evolution, training and regulation requirements must also evolve.

WHAT’S NEEDED • Introduce training/certification programs to recognise specialist skills required for plumbing works specific to projects such as healthcare, large commercial and residential developments and education facilities.

• Adapt compliance requirements and audit procedures to cater for specialised installations 5. Update, enhance and promote apprentice training programs While demand for plumbers is forecast to grow, government funding for apprentice training does not align to that projected growth. Likewise, training requirements have not necessarily evolved in line with the changing nature and greater diversity of plumbing work.

WHAT’S NEEDED • Government commitment to funding more plumbing preapprenticeship and apprenticeship training places • A comprehensive review of current training/competency requirements and commitment by training providers to adopt recommended updates • Better collaboration between schools, TAFE colleges and Registered Training Organisations to ensure pathways into plumbing match projected industry demands 6. Commitment to Continuing Professional Development (CPD) While plumbers have always had access to a range of learning opportunities through industry organisations and private providers, there is no formal, industry-based CPD program.

WHAT’S NEEDED • Development of an industry-based program focused on maintaining proficiency, awareness of changes in legislation and regulation, and upgrading knowledge and qualification in line with new technology or processes

7. Security of payments With the collapse of a number of major contracting companies, many plumbers and other tradespeople who often sub-contract to larger organisations have been left in serious financial difficulties because they have not been paid for their services.

While some inroads have been made with the establishment of an Industry Advisory Group, there is still a long way to go to ensure plumbers are paid on time and in full.

WHAT’S NEEDED • Specific legislation to enforce prime contractors to have project bank accounts, with an independent controller, to cover all agreed sub-contracting work • A fast and effective process to resolve payment disputes • A system and processes that do not compromise commercial relationships between head contractors and sub-contractors • An education program for all contractors to align thinking on payment terms and conditions 8. Reduced red tape to enable more efficient business There are multiple legislative, regulatory and commercial drivers involved in carrying out the business of plumbing. Much of the MPGA’s work is to help members navigate the complexities involved and we strongly support a reduction in red tape to make doing business a simpler and more rewarding process.

WHAT’S NEEDED • Practical engagement between governments, regulatory authorities and industry associations on any proposed changes that are likely to impact small business owners/ operators • A seat at the table not only to provide comment on but to help drive decisions and implementation of plumbing reforms • A unified, national approach to implementing training, certification, regulation and improvement of the plumbing industry.

MASTER PLUMBER | SUMMER 2018

23

Geldof to help launch remote plumbing initiative A World Plumbing Day event, organised by the Master Plumbers and Gasfitters Association and featuring Sir Bob Geldof as keynote speaker, will be the launch pad for a major collaboration project to improve plumbing and sanitation in remote Aboriginal communities around Australia.

I

rish activist Sir Bob Geldof will visit Perth in March 2019 for a very special World Plumbing Day event organised by the Master Plumbers and Gasfitters Association of WA. Sir Bob will use his keynote address at the event to help launch a new initiative to improve the health and wellbeing of people living in remote Aboriginal communities.

The MPGA, in collaboration with the Indigenous Plumbing and Sanitation Foundation (IPSF), Nirrumbuk Aboriginal Corporation and NUDJ Plumbing, aims to establish a pilot project to improve the

24

MASTER PLUMBER | SUMMER 2018

quality of plumbing infrastructure and water quality.

The initiative will also incorporate a culturally sensitive education component, led by an experienced educator with decades of experience working with Aboriginal communities.

The use of storytelling, music and other forms of messaging that resonate well with young Aboriginal people form a key component of the education objectives.

In addition, the intention is to promote more flexible apprenticeship training options that are better suited to the needs

of students from remote communities.

Similar to the AFL SportsReady program which offers Aboriginal sporting recruits the option to complete apprenticeships over an extended period, the MPGA is pushing for more flexibility in the time allowed for remote community students to complete the standard four-year plumbing apprenticeship.

This is to cater for the need for students to travel away from their communities to carry out classroom training.

The pilot is intended to establish a model that will complement and strengthen

existing government and private sector initiatives.

Remote Aboriginal communities endure serious health and social issues related to drinking water and sanitation, not because of a lack of care or responsibility, but because the cost and effort to get plumbers to such remote locations is often excessive.

The pilot project will be specifically tailored to the needs of remote communities and is intended to be: • sensitive to the cultural heritage of Aboriginal people and respectful of their beliefs • able to deliver actionable results very quickly • low-cost and innovative • scalable and replicable MPGA CEO Murray Thomas says the pilot aims to establish a practical approach to creating sustainable and permanent improvements to plumbing and sanitation infrastructure and water efficiency, reinforced with culturally appropriate education.

“The pilot project will include a comprehensive independent inspection of the community’s plumbing and sanitation infrastructure to assess fitness for purpose,” Mr Thomas said.

“Plumbing and sanitation are the foundation of public health and every Australian, regardless of where they live, has a right to those basic but vital things.

“In practical terms, it means our quality of life depends on the knowledge and skills of qualified plumbers, and fittings and fixtures that are fit for purpose.”

Mr Thomas said the sheer size of WA and the vast distances that separate

Aboriginal communities from each other, and from regional towns, mean the immediate plumbing services that urban Australians take for granted are often unavailable.

“Essential plumbing repairs may be left unattended, not because of deliberate neglect but because of the time it takes to get a plumber out to do the work,” he said.

“This applies whether the problem is a simple one, such as a dripping tap, or an emergency like a broken water pipe or blocked toilet.

“Inevitably, there are public health consequences and serious knock-on effects from them.

“Water-borne diseases and poor hygiene result in health issues that in turn affect educational outcomes, life choices and quality of life from childhood to old age.”

Research has found that many illnesses and diseases suffered by Aboriginal people could be prevented with improved environmental health outcomes.

That includes trachoma, caused by bacterial infection of the eyes and endemic among Aboriginal populations. Australia is the only developed country where endemic trachoma occurs.

Middle ear infection, or otitis media, is another endemic health issue. It is thought to affect up to 90 per cent of Aboriginal and Torres Strait Islander children living in remote communities. Left untreated, otitis media can cause permanent hearing damage, which in turn leads to problems with speech, language acquisition and learning.

Cases of severe dehydration in children have also been reported due to a range of hygiene-related health issues.

Such diseases could be all but eradicated

with simple plumbing and sanitation infrastructure that most Australians take for granted.

One of the main areas of focus for the Federal Government’s Closing the Gap initiative is ‘Healthy Lives’.

“Clearly, one way to help close the gap would be to give communities clean drinking water and reliable sanitation, coupled with culturally appropriate education,” Mr Thomas said.

“Our intention is to show the effectiveness of the program via the pilot at one community, which will serve as a proof of concept to then roll out statewide and nationally.

“We are in discussions with relevant State and Federal Government agencies, and hope to also get support from manufacturers and suppliers to help roll out the pilot program and make it sustainable into the future.

“It’s a major boost that we’ve been able to secure Sir Bob Geldof as keynote speaker to help officially launch the program through the MPGA’s 2019 World Plumbing Day celebrations.”: The launch of the pilot and keynote address by Sir Bob will take place at a lunch at Crown Ballroom, Perth on Friday, 8 March 2019.

Sir Bob, who is well-known for his interest in social justice, will talk about the importance of clean drinking water and sanitation, and the need to conserve the precious resource on which life depends.

Tickets to the launch are $154 per person including GST and more information can be obtained from the MPGA on mail@mpawa.asn.au.

It’s a major boost that we’ve been able to secure Sir Bob Geldof as keynote speaker ~ MPGA CEO Murray Thomas

MASTER PLUMBER | SUMMER 2018

25

BUSINESS ESSENTIALS

Now you’re the boss – know your responsibilities

F

OR many plumbers and gasfitters running their own businesses, the time comes to expand and become an employer.

“When you take on employees, you not only take on more work – you take on more responsibility,” explained EBM Executive General Manager Ryan Cameron.

“You need to comply with legislation and regulations relating to your workers, such as salaries and wages, leave entitlements, superannuation, WHS, fair working conditions, discrimination – in addition to your existing obligations as a business owner.

“With this comes the corresponding liability risks, like workers’ compensation and employment practices liability. Basically, if you or others who work for you do the wrong thing, you can find yourself being sued for mismanagement.”

Any legal action against your company could not only threaten the survival and cash flow of your business, but also impact your personal assets. Even if the claim is not successful, you could end up flushed with legal bills that could threaten to blow your finances sky-high if you aren’t covered.

It is essential to have the right Management Liability insurance covers in place to safeguard your assets and the assets of the business.

These protect directors, officers, trustees and employees against claims for negligence in the performance of their duties.

Management Liability insurances offer cover for a range of managerial risks: • Directors’ and Officers’ (D&O) – protects against damages following a wrongful act committed by the directors or officers of a company • Company Liability – provides protection for claims made against the entity (e.g.

OH&S breaches, breach of contract, pollution caused by your business) • Employment Practices Liability – cover against liability for employment-related issues such as wrongful dismissal, sexual harassment, discrimination • Workers’ Compensation – provides cover for employers’ liability for injury to employees, Act benefits and at common law • Statutory Liability – protects companies and individuals against liability for statutory fines and penalties which result from unintentional or accidental breaches of legislation

Protecting vulnerable parties

T

he WA Government’s new measures to provide more security for payment of subcontractors are designed to protect vulnerable parties when companies collapse owing debts they are incapable of repaying.

One example is RCR Tomlinson, which collapsed in November this year owing debts in the hundreds of millions of dollars.

The new measures propose to introduce a Subcontractor Support Unit under the supervision of the Small Business Commissioner and to expand Project Bank Accounts to apply to a range of government projects which exceed $1.5 million.

The changes come just two years after the previous Government passed amendments to the Construction Contracts Act 2004.

Some of the key changes made in 2016 to assist subcontractors included: • requiring payment to be made within 42 days instead of within 50 days after payment is claimed • increasing the time frame in which a party to a dispute can apply for adjudication from 28 days to 90 business days • decreasing the amount of time in which the other party may respond to such an application from 14 days to 10 business days

26

MASTER PLUMBER | SUMMER 2018

• Trustee Liability – protects against damages following mismanagement of superannuation funds by trustees • Criminal Losses – protects against employee theft and direct financial losses (including investigation expenses) • Fidelity Guarantee – provides protection for the company for loss of money or money equivalents due to any dishonesty or fraudulent act or omission of employees • Legal Expenses – indemnifies against legal fees, expenses and disbursements in relation to attendance at any prosecution, inquiry, investigation, examination or other proceedings before a court or tribunal As the boss, you owe it to yourself and your workers to make sure your liability risks are covered. Speak with an insurance broker who knows your trade and can help you arrange the right Management Liability insurances for your plumbing or gasfitting business.

Our advice about insurance is provided for your general information and does not take into account your individual needs. You should read the Product Disclosure Statement and Policy Wording prior to making a decision, these can be obtained directly from EBM. See www.ebm.com.au for more.

By Aaron McDonald, Principal

The overall effect of the 2016 changes was to make it easier for a party to a construction contract dispute – usually the subcontractor seeking payment – to access adjudication and resolve the situation faster.

However, for the changes to be effective, the party seeking adjudication had to be proactive and pursue the matter itself.

Under the most recent proposed changes, it is the Small Business Commissioner who will have greater responsibility for enforcing payments to subcontractors, and the power to penalise head contractors who do not pay.

Consequently, subcontractors can still apply for adjudication if they have claimed payment from head contractors but not received it, and head contractors will also be held to account by the Government.

These ongoing changes to the law in regards to construction contracts show that the Government is aware there are real issues in the industry. While the planned changes still only apply to Government projects, they provide a further layer of protection for subcontractors as the Government takes a more active role in regulating the systems through which they are paid.

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Benefits

MATES IN CONSTRUCTION WA

Benefits

Employee Member

Journey Cover Travel Cover Death & Funeral Cover Ambulance Cover Childcare Cover

Benefits

Redundancy Benefits

• Professional support when a worker or family member needs it • 24/7 Helpline available • Training available so worker can assist other co workers.

• Help to identify early warning signs

Major Sponsor

• Provides various training for your staff to assist other staff in need.

• Provides support for your staff to return back to work earlier.

• 24/7 Helpline available • Potential reduction in Injuries at work

Redundancy Benefits

• • • • •

Mutual Benefit Fund

Benefits

Employee engagement Staff retention Employer of first choice Improvement in productivity

Employer Member

• • • •

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Provides financial security HBF Health Insurance discount up to 12% HIF Health Insurance discount 12% No administration costs Easy access to your account Great Discounts on all Safety Wear & Protective Clothing from Pacific Safety Wear in Malaga WA

27

MASTER PLUMBER | SUMMER 2018

BUSINESS ESSENTIALS

Taking the pain out of lump sum insurance premiums Cash flow is king for most business owners, particularly those operating as sole traders or managing small enterprises.

M

any plumbers will be all too familiar with the issues of clients that are slow to pay while the daily costs associated with doing the job continue to mount.

Then when big lump sum costs such as annual insurance premiums arrive, the situation can become crippling.

It’s the reason that premium funding provider Elantis is seeing an ever increasing demand for services.

“Essentially, premium funding is a cash flow solution for small business owners,” explains Elantis CEO Nicholas Cunningham.

“It allows business owners to deal with annual insurance premiums through more manageable instalment options.”

Nicholas says since joining Elantis five years ago, he’s witnessed big changes for small business owners when it comes to insurance.

“Small businesses these days are having to insure against much greater risk and that’s driving premiums up substantially,” he said.

“At the same time, we’re seeing a lot of traditional lenders tightening their lending criteria which makes it harder for small businesses to access operating capital.”

Elantis provides solutions to businesses of all sizes, from sole traders to multinational corporations and in many cases, Nicholas says it takes a few seconds to run a background check and approve finance.

“In most cases, business owners don’t have to do anything other than provide us with some business details,” he said.

“There’s none of the comprehensive evaluation you’d typically see with mainstream lenders, so business owners can stay focused on running their businesses.”

MEMBER OFFER Elantis is a preferred supplier to the Master Plumbers & Gasfitters Association of WA members. Contact the MPGA for more information.

28

MASTER PLUMBER | SUMMER 2018

NEW RULES FOR TRADIES AND THEIR UTES

By REBECCA CUTLER ~ Industrial Relations Manager The Australian Tax Office (ATO) has made a change to the Fringe Benefits Tax (FBT) guidelines, set to take effect for the 2019 FBT year and beyond, that will give businesses that supply employees with utes and vans a prescriptive method to apply to get an exemption to FBT. It is a change from the previous “minor, infrequent and irregular use” test that has been in place.

WHAT IS FBT? FBT is a tax payable by employers for benefits paid to an employee (or an employee’s associate such as a family member) in place of salary or wages.

This is separate to income tax and is calculated on the taxable value of the fringe benefits provided.

Fringe benefits are an important part of business and can be a useful way of attracting quality employees. However, if you’re going to provide any fringe benefit to your employees, you need to be aware of your taxation obligations.

Generally, a fringe benefit arises where an employer makes a vehicle they hold available for the private use of an employee. Under subsection 8(2) and subsection 47(6) of the Fringe Benefits Tax Assessment Act 1986 (the car-related exemptions), a fringe benefit is an exempt benefit where the private use of vehicles is limited to work-related travel and other private use that is “minor, infrequent and irregular”.

If you provide fringe benefits to your employees, the ATO recommends that you register for FBT.

WHAT THE CHANGES MEAN FOR YOU Essentially, commercial vehicles (think ute or van) will now attract fringe benefits tax, unless: • Your employee only uses the vehicle to travel between home and work – with no diversion that adds more than 2km to the trip • Multiple journeys for private use account for no more than 1,000km for each FBT year (15km per week on average) • No single return journey for a private purpose exceeds 200km

CASE STUDY Bob works for Colossal Plumbing as a maintenance plumber and is provided a dual-cab work ute in order to do his job.

The ute is garaged at the employee’s home and the employee uses the ute to travel between their home and the work site. The employer has a strict policy about limiting the private use of the vehicle and the ute is not provided as part of the employee’s salary package.

The employee usually stops to pick up a newspaper on their way to work, adding no more than two kilometres to the total trip from home to work.

On 20 occasions during the FBT year, Bob took his kids to school in the work ute during his journey from home to work. The journeys from home to work generally do not exceed 20km (over the course of the FBT year these journeys totalled 400km).

At the end of the 2019 FBT year, the employer receives an email from the employee stating that multiple journeys were undertaken in the FBT year for a wholly private purpose and these journeys did not exceed 1,000km in total.

The email also explains that while driving to and from work, no diversions were undertaken that exceeded 2km.

The employer is satisfied that the employee has adhered to their policy about limited private use and does not have to pay FBT tax on the work ute for this employee.

If you haven’t been calculating FBT for work utes and vans up until now, it’s time to start! At the very least, you will require an employee declaration to confirm any private use did not exceed the thresholds detailed in the latest ATO guideline.

This email contains general advice only and is prepared without taking into account your particular objectives, financial circumstances and needs. The information provided is not a substitute for legal, tax and financial product advice. Before making any decision based on this information, you should speak to your tax accountant who should assess its relevance to your individual circumstances. While the MPGA believes this information is accurate, no warranty is given as to its accuracy and persons who rely on this information do so at their own risk.

HOW MUCH IS YOUR APPRENTICE REALLY COSTING YOU? When you hire an apprentice through MPA Skills Apprentice Employment, you do not have the extra costs associated with employing an apprentice direct and all the administration is done for you.

MPA apprentices have access to all the work required to complete their apprenticeship such as Water, Sanitary, Drainage and Gas.

MPA Skills pays for:

 Superannuation  Annual Leave / RDO’s / Public Holidays  Workers Compensation / Sick Leave  PPE / Uniform / Boots  Training Costs  Full Mentoring & Pastoral Care

“The extra hourly cost of taking an Apprentice through MPA Skills Apprentice Employment is less than the price of a coffee”

FACT! Local Perth contact: North – Dom 0406 412 877 South – Malcolm 0424 162 862

And when the work runs out, you can return the apprentice to MPA Skills

You only pay for the hours the apprentice is working, apprentices are available for hire from 1 day to 4 years - from

$780.80 per week + GST * MPA Skills Apprentices are work-ready and ready to work so call today on 08 9471 6600 For more information, email mail@mpaskills.com.au or visit mpaskills.com.au *price based upon a junior plumbing apprentice without any overtime or travel allowance In the metro area

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PRODUCTS & SERVICES

IMPACT PROTECTION VITAL FOR SAFETY EYEWEAR

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AUSSIE JETTERS NOW FOR HIRE ON DEMAND

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lumbers don’t have to buy a drain cleaning high pressure jetter now that Kennards Hire branches are renting Aussie Cobra A jetters.

The Class A jetters do not require operator certification under AS/NZS4233.01.

Aussie Pumps recently launched its Cobra A Safe Jetting training program to Kennards Hire staff to ensure they were fully conversant with jetter application, safety and maintenance. The program started in Queensland and is being rolled out across the country.

The new Aussie Cobra A jetter offers fast, efficient drain cleaning with the ability to clear chokes in drains up to six inches. It is powered by a Honda GX630 23hp electric start petrol engine. The heart of the system is a “Big Berty” Bertolini triplex pump that delivers a whopping 20 lpm flow at 275 bars (4,000 psi).

The powerful unit also doubles as a very efficient pressure cleaner. It is rented with a wash down gun that enables the operator to use the machine as a clean-up tool after the job.

The Aussie Cobra A jetter is available from Kennards Hire branches throughout Australia.

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ustralians suffer a staggering 50,000 eye injuries a year, with construction, mining and primary production sectors accounting for 60 per cent.

Often injuries occur even though many sufferers are wearing eye protection at the time.

According to a 2008 Safe Work Australia report, safety eyewear is often incorrectly fitted, is not rated appropriately for the task or does not provide adequate protection.

Ordinary eyewear such as prescription glasses, sunglasses or contact lenses do not offer appropriate protection. It is therefore critical to use fit-for-purpose equipment, which means knowing the impact rating required for a particular task and when to use safety glasses, safety goggles, face shields or a combination of these.

Eye protection impact ratings are determined by the product’s ability to withstand an impact from a specifically-weighted ball without cracking, detaching or dislodging, breaking or coming into contact with the eye or the head.

The following table indicates impact rating and tasks for which each type is available.

You should also consider whether you need safety glasses, safety goggles, a face shield, or a combination of these.

Safety glasses allow air in and around the eye area while safety goggles fit tight against the face, offering protection against dust and splashes. Face shields provide further protection and can also be worn over spectacles or goggles.

Also consider the type of lense, the shape of your head and if anti-fog lenses for use in humid conditions are required. UV protection is also important if working outdoors.

ProChoice Safety Gear protective eyewear is all rated medium impact or higher, has polycarbonate lenses; 99.9% UV protection and is Certified to AS/NZS1337.1:2010 Standards.

See www.prochoice.com.au for more information.

IMPACT RATING

RATING REQUIREMENT

SUITABLE TASKS

Low:

Withstand impact from an object moving at 12m/ second

Chipping, riveting, spalling, hammering and managing a strap under tension.

Choose safety glasses with a Standards mark.

Medium:

Withstand impact from an object moving up to 45m/ second

Scaling, grinding and machining metals, some woodworking tasks, stone dressing, wire handling and brick cutting. Choose safety glasses with a Standards mark I or F.

High (visor only)

Withstand impact from an object moving up to 120m/second

Metal chipping, hydraulic nailing or any mechanical procedure involving high velocity machinery.

Extra High (visor only)

Withstand impact from an object moving up to 190m/second

Any mechanical procedure involving very high velocity machinery.

PRODUCTS & SERVICES

VIEGA FOCUSES ON AUSTRALIAN GROWTH

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iega, one of the pioneers of copper press-fit technology, has embarked on a concerted effort to grow its Australian presence.

The company first introduced its Propress system to the Australian market in 2006 and according to ANZ Country Manager Phil Jackson, a range of new product and service initiatives are being introduced.

Viega is best known for its innovative press technology systems for industrial, commercial and residential plumbing projects.

The Propress system completely eliminates the need for brazing and soldering, allowing joints to be completed in a matter of seconds without the need for heat, gas and flame from the worksite.

This results in improved worksite safety and massive savings in installation time.

One of the key service initiatives is the opening of the Australian market to all

HEAR NO EVIL WITH HONEYWELL DISPENSER

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ut safety first by allowing employees easy access to hearing protection.

Placing Honeywell earplug dispensers on worksites means your employees and subcontractors can access a new pair of earplugs each time they enter.

The Honeywell HL400 Earplug Dispenser is built for convenience, with a simple twist of the knob dispensing disposable foam earplugs. It can be placed on a table top or wall mounted.

The dispenser is made to work with all Howard Leight disposable earplugs.

That means you can ensure the choices are specifically matched to each work environment.

Howard Leight provides a range of options suited to different noise levels and applications.

See www.honeywellsafety.com for more information.

merchants, serviced by a new distribution facility in Melbourne.

The company is also expanding its sales team as well as product and logistical support staff.

Viega systems have been utilised in healthcare facilities as well as Australia’s most famous sporting venues, including Perth’s Optus Stadium and Rod Laver Arena in Melbourne.

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PRODUCTS & SERVICES

Hygienic bakery design from the ground up

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he work of commercial bakeriesinvolves the storage and handling of large quantities of dry goods and as such, water or any moisture poses a danger.

But food production areas must be clean and safe for both the food being manufactured and the staff preparing it. While some items can be moved for cleaning, other permanent fixtures and heavy items must be cleaned within the production area.

This is usually handled with controlled, low volume, low pressure wet cleaning devices to minimise the amount of moisture created.

Likewise, any controlled wet areas, such as those used for decorating cakes, require wet floor cleaning to ensure the complete removal of residues.

In these situations, effective drainage design and appropriate fittings are vital.

ACO Australia’s commercial drainage solutions are made from stainless steel for corrosion resistance and easy cleaning. Grates, floor gullies and channels are constructed with rounded edges for safe and easy handling and smooth contours that won’t trap contaminants.

To minimise the risk of injury in the workplace, ACO grates are slip resistant and also strong enough to withstand the movement of pallet jacks, mobile ovens and trolleys, all of which have different wheel profiles and weight distribution.

All fittings are designed for superior performance, safety and easy cleaning.

For further information see www.acoaust.com.au.

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You’re in safe hands with Rig Dog gloves HONEYWELL SAFETY PRODUCTS has released its new impact-resistant gloves to provide added cut protection.

The Honeywell Rig Dog CR gloves feature moulded thermoplastic rubber impact pads that are ergonomically placed to provide optimal protection in impact situations. The gloves also have ANSI A7 cut-resistant palms to enhance protection against cuts and slashes.

The spandex fabric stretches easily,

helping reduce hand fatigue, while the slip-resistant palm and EVA foam pads add comfort and some vibration relief.

Bright orange colouring and reflective silver piping add visual awareness for working in low light.

The Rig Dog CR gloves are washable, adding longevity and limiting bacterial growth.

See www.honeywellsafety.com for more information.

Cut two tube sizes with new C-cutter

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idge Tool Australia has released its new C-style close quarters copper tube cutter.

The new C34-AU C-cutter cuts both half and three-quarter –inch copper tube with a flick of a switch.

Screwdriver slots in the housing provide extra leverage for making cuts in extreme tight spaces.

There’s a snap-on feature for quick pipe connections and the spring-loaded cutter wheel provides a constant pressure on pipe, providing fast and straight cuts every time.

The RIDGID X-CEL Wheel Pin allows quick wheel replacement with no need for tools or disassembly of the housing required.

For more information see www.ridgid.com.au.

VEHICLE REVIEW

Sporting it in the new Corolla SINCE commencing reviews of the Toyota range, we’ve understandably focused on the workhorses suited to the rigours of plumbing.

But having worked through the bigger beasts in the range, SIMON SHEPHERDSON turns his attention to the smaller but by no means limited new Corolla.

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ome months ago, between the LandCruisers, Prados and HiLuxes, Toyota stuck me behind the wheel of a Camry.

Admittedly, I had my reservations up front, but within no time at all I was loving it.

It was exactly the same for Toyota’s new model Hybrid Corolla.

In my experience, the Corolla was a great first car or a good downsize option for parents when the kids got their own Corollas.

But I was wrong again. What I should have known is that the Corolla is Australia’s best-selling passenger car and that’s surely due to more than P-platers and empty nesters. Or if not, it will be when the word gets out.

The new Corolla is a sporty little number to say the least. There are three grades and seven variants in total, all with hybrid technology now available.

The Corolla has a multitude of features and new styling that make driving a bit of a dream, even in traffic. In fact, having stepped from a big Toyota into a small one, it was downright fun in the traffic.

That was largely due to the Toyota New Global Architecture platform which includes “driveability” features such as a lower centre of gravity, new multi-link rear

SPORTY The new Corolla packs some punch both in looks and performance

suspension, 60 per cent more rigid body and improved weight balance.

There’s a lot more going on below the surface too.

New powertrains add to the improved performance and handling. The new 2.0-litre four-cylinder Toyota Dynamic Force petrol engine delivers 21 per cent more power (125kW) and 15 per cent more torque (200Nm) than its 1.8-litre predecessor while using less fuel.

A new Direct Shift continuously variable transmission (CVT), available in petrol models, offers a 10-speed sequential shift mode and mechanical launch gear - the first in the world for a passenger-car CVT. That helps get away from a standstill but retains good fuel efficiency while accelerating.

All hybrid models feature three driving modes - ECO, Normal and Sport. Sport mode is understandably lots of fun. Petrol models feature Normal and Power modes.

The hybrid system is also lighter and more compact due to advances in engine, electric motor and battery technologies.

If you’re so inclined, a new six-speed intelligent manual transmission is available on the Ascent Sport petrol model, providing rev-matching control for smoother and more responsive gear shifts.

The entire range also benefits from an active cornering assist system that applies brake force to the left or right wheels

during high-speed cornering to reduce understeer and improve steering response.

Safety is everything and Toyota has achieved a five-star ANCAP rating for its new Corolla range - the first passenger car to do so under tougher 2018 standards.

A pre-collision safety system incorporates pedestrian detection, including at night, as well as cyclist detection during the day, autonomous emergency braking and emergency brake assist. Active cruise control and lane departure alert with steering assist and sway warning are also standard.

On CVT and hybrid models, active cruise operates at all speeds while the lane departure technology is upgraded to lane trace assist, providing steering assistance to ensure the car stays centred in the lane.

Corolla’s windscreen-mounted camera recognises speed-limit signs - a first for a Toyota model in Australia. Other standard safety features include automatic high beam, reversing camera, while SX and ZR also have blind-spot monitor.

I admit it – I was driving like the sort of idiot that typically drives me and everyone else insane, ducking and weaving from lane to lane. So I’ve made a conscious decision not to show my outward aggravation at Corolla drivers who do the same from now on.

MPGA members benefit from Toyota’s Gold Fleet Discount. Contact your nearest Toyota dealer for more details.

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At least you can rely on a HiAce, come Monday.

TFM2077 MPA WA 09/18 T2018-010919

With its reputation for dependability, the Toyota HiAce is the one part of your plumbing business that will never let you down. Buy a Toyota HiAce through your Master Plumbers and Gasfitters Association membership today and get a Gold Fleet discount of $3,450 on any HiAce.

Master Plumbers and Gasfi tters Association membership details required to redeem Gold Fleet Discounts.

toyota.com.au/fleet 34

MASTER PLUMBER | SUMMER 2018

BRETT’S PEEK

Member news with Brett Peake, Business Development Manager

LET’S PUT THE TOUGH TIMES BEHIND US AS I WRITE this, I am in the midst of contacting all members to find out how the year has panned out and what’s forecast for 2019.

While most plumbers admit conditions continue to be challenging, many are also talking of positive signs ahead. As MPGA President Geoff Kelly has indicated in his column (page 8), there are some green shoots appearing across a number of areas.

We all have our fingers crossed that those green shoots continue to grow into

healthy trees with lots of foliage.

But that said, crossed fingers are not the secret to success. Hard work and a decent amount of belief that you know what you’re doing - and do it well - are the things that distinguish real winners.

In the words of Olympic champion Carl Lewis: “If you don’t have confidence, you’ll always find a way not to win.”

That said, of course we can’t exert much control over broader economic conditions and as plumbers, we are at the mercy of the

inevitable ups and downs that occur across the construction sector.

Just remember that if you’ve got this far, you have probably ridden out the roughest of it and things will surely start to pick up once the Silly Season is out of the way.

On that note, I’d like to thank you for your support over the past year and look forward to working with you and for you in 2019.

Have a very Merry Christmas and a fun, safe and prosperous New Year.

MEMBER BENEFITS

Need a super-fast website and online search boost?

ALL MEMBERS HAVE an opportunity to raise the profile of their business across multiple online business directories thanks to a partnership with Perth-based digital specialist Moboom Limited.

Benefits: • Higher ranking on Google without the need to spend on AdWords or Search Engine Optimisation • Free listing on both the Hotfrog directory and a new specialist plumbing directory, Perth.Plumbing (to be launched early in 2019) • Once you confirm your participation, an instant push of accurate business data across 36 different online directories including Facebook, Amazon, Google My Business and more • Central dashboard to manage online reputation, source reviews and ratings from customers, and manage your social media profile • Significant discount to move to Moboom hosted website – fast, secure and adaptable to any mobile, desktop or other device Contact the MPGA for more details.

Get the power of the Tyrepower card MEMBERS CAN TAKE advantage of Tyrepower’s Fleet Card, which can be used for purchases of any Tyrepower products and services nationwide. It also provides fuel discounts at multiple outlets.

The card includes a single monthly fee with no transaction charges, plus provides detailed monthly statements.

To find out more, log in to the member area of the MPGA website at www.masterplumbers.asn.au/members-login and check the Member Advantages booklet.

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