Motor Trader May 2011

motor trader

motor trader queensland | vol. 82 | issue 4 | may 2011

Motor Traders and the ACL FBT deadline looms First quarter sales results

MTA Queensland Elections!

Variety Bash in August Influenza season

Don’t become a Queensland test case. Make sure you are up to date on the new Australian Consumer Law.

Official Publication of the Motor Trades Association of Queensland

Head Office 1000 Wynnum Road, Cannon Hill, Qld 4170 P.O. Box 560, Morningside, Qld 4170 Tel: 07 3237 8777 Fax: 07 3844 4488 Toll Free: 1800 177 951 Email: publications@mtaq.com.au Website: www.mtaq.com.au

contents 2. From the editor Industrial Relations 3. Wage movements for 2011

Policy/Viewpoint

Managing Editor

4. Queensland Automotive Market – 1st Quarter Snapshot

Editor in Chief

5. Australian Consumer Law – Consumer Credit

Art Director

Industry Update

Kellie Dewar

Michael Taylor

Peter Richardson

6. Fringe Benefits Tax – it’s time!

Advertising Enquiries

7. Fined for misleading representation

Jillian Anfield Mobile: 0414 473 944 Facsimile: 07 3844 4488 Email: jilliana@mtaq.com.au

Editorial

Editorial submissions are welcomed but cannot be guaranteed placement. For more information telephone the Editor 07 3237 8777

Subscription Rates (including GST) Australia: $72.60 annually Overseas: $110 annually Motor Trader Publishing Policy Motor Trader is the official publication of the Motor Trades Association of Queensland. The role of Motor Trader is to inform members of current issues and legislation affecting the industry. As such it can be regarded as the business magazine for the Queensland motor industry. The role of Motor Trader is not to be in competition with the technical magazines already on the market. It will advise of new vehicles being released and of the latest technology incorporated into them; it will advise of latest technology affecting members in each of the MTA Queensland Divisions; it will keep members abreast of the latest in motor industry training and industrial affairs; and it will keep members informed of the latest technical aids available through MTA Queensland Member Services, which will assist members in staying ahead of the technological revolution presently being encountered within the motor industry. The publisher reserves the right to omit or alter any advertisement and the advertiser agrees to indemnify the publisher for all damages or liabilities arising from the published material.

MTA Queensland ABN: 74 028 933 848

Corporate Partners

FBT deconstructed, p. 6

8. Safety program offers many benefits 9. Surfs up with Suzuki 10. Gear up for big Bash

Honda’s community focus

12. Competition drives manufacturing processes

Variety Bash in August, p. 10

Proactive, customer-focused dealers stay strong

Feature 14. Motor traders beware consumer guarantees and lay-by agreements

Innovation 17. Ford’s award winning seat

Easy access

19. New lab bolsters safety

Members Profile

Queenslander wins ARC opening round, p. 20

20. Attention to detail 21. New members

Health 24. Do you need the flu vaccine?

Sport 26. Smart winner 27. Interest lacking in Button’s auction offer

Automobile news 30. LEAFs have landed

Fast, efficient and a whole lot more

Feedback essential

32. KEV2 in the electric mix

Ford Ranger: less drag

Veloster launch by year end

New ACL rules affecting our industry, p. 14

from the editor

Michael Taylor, Editor

M Our new facility at Eight Mile Plains continues to take shape and will, according to MIT managing director Brett Dale, “include the latest in technology and will provide world class simulation of multiple automotive workshops.”

TA Queensland Members would have already been sent the Election Notice and Nomination Form that appear on pages 22 and 23; please let this serve as a reminder that nominations close by midday Wednesday, 1st of June.

Please give your attention in the few short minutes that it takes to participate in this process, which serves as an important part of what makes our Association a success.

Our new facility at Eight Mile Plains continues to take shape and will, according to MIT managing director Brett Dale, “include the latest in technology and will provide world class simulation of multiple automotive workshops”. This Centre of Automotive Excellence is scheduled to be operational by the start of 2012. Motor Trader will continue to provide updates on this exciting venture.

Brian Smith of Bennet and Philp lawyers gives us an excellent, in-depth explanation of how the ACL (Australian Consumer Law) specifically affects our

MTAQ’s state of the art facility well under way

industry on pages 14 to 16.

Some very interesting reading can also be found on pages 4 and 5 as Richard Payne gives us a rundown on 2011’s first quarter automotive sales results. He also includes a snippet about more stringent ACL ‘Responsible Lending’ policies and how this may affect dealers’ ability to assist marginal ‘credit worthy’ customers in obtaining finance.

What information should appear on your company’s payslips and when should your employees receive it?

Ted Kowalski clearly lays out pay slip obligations on page 3, as well as

informing us that Fair Work Australia will soon be making an announcement with regards to possible wage movements in the new financial year.

Have you had the ‘flu’ shot this year? Have you ever had it? Do you think you need it? What’s the difference between a ‘cold’ and the ‘flu’? Does the flu shot give you the flu? No, it doesn’t. Have a read of pages 24 and 25 and learn some more about flu myths that have been debunked.

Most importantly, try to have a chat with your GP soon and make a decision that best supports your health this flu season.

Queensland’s Automotive Centre of Excellence INST IT UT E OF T ECHNO LOGY

Queensland’s Peak Automotive Industry Body

Automotive Training Specialists

Free call 1800 177 951 phone. 07 3722 3000

fax. 07 3722 3030

1000 Wynnum Road, Cannon Hill Q 4170 2

motor trader queensland

web. www.mtaq.com.au

PO Box 560, Morningside Q 4170

industrial relations Wage movements for 2011

U

nder the Fair Work industrial relations system, across-theboard wage movements will occur once a year and take effect from the first full pay period on or after 1st July each year. Fair Work Australia is currently conducting nation-wide consultations with all interested parties to determine if a wage rise is warranted, and if so, how much. Final written submissions were accepted up to 29th April and mid-May was set for final consultations in Melbourne.

The unions have called for a $28 per week increase up to the base tradesman’s level and a 4.2% increase to award rates above trade level.

Most employer organisations concede that some increase is warranted but that it should be between $10 and $14 per week.

Ted Kowalski, Industrial Relations Manager

• The gross and net amount of pay • Any loadings, monetary allowances, bonuses, incentive-based payments, penalty rates or other entitlements that can be singled out • If the employee is paid an hourly rate – the ordinary hourly pay rate and the number of hours worked at that rate and the amount of pay at that rate • If the employee is paid an annual rate (salary), the rate as at the last day in the pay period

• Any deductions made from the employee’s pay, including the amount and details of each deduction (including superannuation) including the name and number of the fund or account the deductions are paid into • If you are required to pay superannuation contributions for your employee’s benefit you should include; - The amount of each superannuation contribution made during the period to

which the pay slip relates, or the amount of the contributions that you are liable to make; and - The name or the names and number of the superannuation fund you put or will put superannuation contributions into.

The Fair Work Ombudsman has template pay slips available at www.fairwork. gov.au/resources/templates/ pages/pay-slips-and-recordkeeping.aspx

Pay slips must be issued within one working day of the employee’s payday in either hard copy or electronic form.

It is expected that a decision will be handed down in late May/early June to take effect from 1st July.

Pay slip obligations Pay slips must be issued within one working day of the employee’s payday and can be issued in either hard copy or in electronic form. If issued electronically they should be in an easily printable format and must be secure and confidential.

The following information must be included on the pay slip: • The name of the employer and the Australian Business Number (ABN) • The employee’s name • The date of payment • The pay period the pay slip covers motor trader queensland

3

policy/viewpoint Queensland Automotive Market – 1st Quarter Snapshot

Richard Payne, Principal Policy Director

new and used products will continue through the 2nd quarter as the economy improves further on the back of mining and rural factors although recent events in Japan will put pressure on supply. The market is being driven by increased demand in the “private” sector (+1.7%), particularly with Compact SUV’s and 4x4 derivatives.

A

s Queensland recovers from the new-year weather disasters, automotive sales are in “catch-up” mode as reflected in results for March:

1st Quarter sales trends with the pace setters are shown below, together with year over year trends - the big improvers so far this year are Nissan and Subaru, both experiencing double digit increases; while small cars and 4x4’s lead the charge with individual model sales. Of concern to local manufacturers is the drop in demand for large cars,

New Vehicle Sales The March result was the 2nd best March ever for Queensland, exceeded only by 2007 (pre-GFC).

Notwithstanding the March result, the 1st Quarter is slightly down (-2.9%) on the corresponding quarter last year however, we expect that increased demand for

which are down 33% from last year (see figures 1&2 and Tables 1&2)

Used Vehicle Sales As with new cars, the market “kicked” in March to record the best March Table 1

1

Toyota

10,258

2

Holden

4,950

-1,235

-20.0%

9.9

3

Mazda

4,720

230

5.1%

9.4

4

Nissan

4,426

753

20.5%

8.9

5

Hyundai

4,334

-227

-5.0%

8.7

6

Ford

4,095

-15

-0.4%

8.2

7

Mitsubishi

3,715

253

7.3%

7.4

8

Subaru

1,894

223

13.3%

3.8

9

Honda

1,387

-456

-24.7%

2.8

10

Suzuki

1,384

-78

-5.3%

2.8

49,978

-1,499

-2.9%

100.0

Rank

16283

20395

10000 5000 January

Febuary

March

Figure 2:QLD Full year NVS Trends 240000 230000 220000 210000 200000

202476 215752 212431 234551 214870 199306 207919 212800

190000 180000 2004 2005 2006 2007 2008 2009 2010 2011

F'Cast 4

motor trader queensland

Sales -827

%

Market Share%

Sales

20000

13300

+/- YTD 2010

Total Market

Table 2

15000

YTD Mar. 2011

Rank

25000

0

YTD Mar. 2011

Total

Figure 1: NVS 2011

result since 2004. For the 1st Quarter 2011, “Dealer to Private” sales are up 0.5% on the corresponding Quarter last year, while “Private to Private” sales are down 3.1%. Preference for dealers as the source of purchase is strongest with

-7.5%

20.5

YTD March 2011

YTD March 2011

Sales

Segment Share%

1 Mazda3

2,088

19.6%

2 Toyota Corolla

1,812

17.0%

3 Nissan Navara 4X4

1,689

23.7%

4 Toyota Hilux 4X4

1,610

22.6%

5 Hyundai i30

1,457

13.6%

6 Holden Commodore

1,310

53.9%

7 Holden Cruze

1,214

11.4%

8 Mitsubishi Lancer

1,148

10.7%

9 Toyota Prado

1,120

27.5%

10 Hyundai Getz

1,082

15.1%

11 Toyota Hilux 4X2

908

27.5%

12 Mazda2

897

12.5%

13 Toyota Yaris

855

11.9%

14 Ford Fiesta

833

11.6%

15 Subaru Impreza

774

7.2%

16 Toyota RAV4

769

12.0%

17 Toyota Camry (4 cyl)

764

34.7%

18 Holden Colorado 4X4

757

10.6%

19 Mitsubishi Triton 4X4

754

10.6%

733

10.3%

20 Ford Ranger 4X4 Total

49,978

As Queensland recovers from the new-year weather disasters, automotive sales are in “catch-up” mode. over $10,000 value vehicles (74% “dealer” preference), while private sales are favoured with under $10,000 value vehicles (70% “private” preference). The convenience of sales via the internet remains a challenge in the market place!

YTD and full year trends are shown in figures 3&4:

dealer to private

30000 25000 20000

11642

14001

16193

10000 11350

12544

14448

Febuary

March

15000

5000 0

January

Figure 4: UVS Average Month Transfers dealer to private

30000

Figure 5: MCYC 2011

20000

12940 12803 13132 14010 13898 14373 14374 14247

15000 10000 14969 14485 14319 14928 13832 13122 12930 12330 5000 0

2004 2005 2006 2007 2008 2009 2010 2011

proj

dealer to private

1600 1400 1200 1000 800 600 630 200 0

841

1119

362

457

495

January

Febuary

March

Figure 6: MCYC Average Month Transfers dealer to private

- Conduct reasonable inquiries about requirements and objectives - Verify the customer’s financial situation - Assess the customer’s capacity to repay without substantial hardship - Do not offer or suggest credit products that are unsuitable”

private to private

1800

400

M

embers involved with selling major products may have noticed more stringent lending practices by financiers. New “Responsible Lending” legislation under the ACL has resulted in quite a few changes about how financial institutions can lend: • “Responsible Lending

Motorcycle Sales

Motorcycle sales trends for the 1st quarter and year-over-year are shown in figures 5&6.

private to private

35000

Used car members may request a summary of the most recent month’s transfers for their particular prime market area (PMA) by emailing relevant post codes for their PMA (in numeric order) to Emma Pires (emmap@mtaq.com.au).

For the 1st Qtr. in total, “Dealer to Private” sales are at the same level as the corresponding Qtr. last, while “private to Private” sales are down 10.2%.

As with used cars there is a strong preference for dealer purchases with higher value motorcycles, but the vast majority of motorcycles are sold for less than $10,000 (83% of total sales), where some 76% are purchased from private sellers.

private to private

35000

25000

Motorcycle sales achieved the double whammy in March to not only be the 2nd best March result on record (only exceeded marginally in March 2007), but to also be the best monthly result of any month since July 2009.

Australian Consumer Law (ACL) – Consumer Credit

Figure: 3 UVS 2011

private to private

Financiers are feeling their way with the new legislation - each will have their own interpretation of the legislation and apply their own policies.

Applicable members should be aware that new lending practices may impact on the ability of some marginal “credit worthy” customers to obtain finance.

1800 1600 1400 1200 1000 800 600

697 722 833 941 1024 1002 942 914

400 524 537 551 555 562 498 447 488 200 0 2004 2005 2006 2007 2008 2009 2010 2011 proj motor trader queensland

5

industry update Fringe Benefits Tax – it’s time!

T

he end of the Fringe Benefits Tax (FBT) year (31 March 2011) has now passed and as we turn our mind to the FBT return lodgment deadline of 21 May 2011, it is appropriate to question compliance in terms of the tax liability and the substantiation we have kept.

The Australian Taxation Office (ATO) has specifically identified FBT as an area around which it intends to increase its level of compliance activity.

According to the ATO’s 2011 compliance program, it conducted 27,845 reviews (whether audits or desk reviews) of employer obligations (including FBT) for businesses with an annual turnover of up to $250 million, raising revenue of $659 million.

As such, the average audit adjustment for businesses with a turnover of up to $250 million was just under $25,000.

Unfortunately, the nature of this tax means many taxpayers will only focus on it once a year, unlike income tax and GST that are constantly “in the frame”.

It is therefore appropriate that we review a few of the principles.

What is a fringe benefit?

A benefit that is provided to an employee or an associate of an employee in respect of an employee’s employment 6

motor trader queensland

by either: • The employee’s employer, • An associate of the employer, or • A third party under an arrangement with the employer or an associate of the employer

Calculate the taxable value - the GST inclusive cost of the benefit less any reductions e.g. private use, statutory fraction, employee contributions, otherwise deductible rule.

1.8692) c) Calculate the FBT expense, by multiplying the grossed up taxable value by 46.5 per cent (FBT rate).

What do I need to know about the more significant and common fringe benefits provided?

• Car benefits – the most common type of benefit, accounting for approximately 80 per cent of FBT revenue • Do not assume that if the vehicle does not meet the definition of a “car” that it will be

expenses, and restricting access to vehicles of higher values.

• Entertainment – the most difficult benefit to value • Where the 50/50 method of valuation is used, the benefit is recorded as meal entertainment.

Where the actual method is elected, the benefit is recorded as either a property, expense or residual benefit • The method used to value entertainment is normally elected at the end of the FBT year, however the method determines the eligibility for GST input tax credits and also income tax deductions.

Some other points to remember: • GST inclusive amounts are used to calculate the taxable value • Remit 1/11th of employee contributions as GST

How is the fringe benefit valued?

exempt for FBT purposes. The exemption will only apply where the work related use tests are met or the benefit is minor and infrequent

a) Calculate the taxable value. This is the GST inclusive cost of the benefit less any reductions e.g. private use, statutory fraction, employee contributions, otherwise deductible rule

• You can elect to value the benefit by either the operating cost method or the statutory formula method (which includes pooling for motor dealers)

b) Calculate the grossed up taxable value, by multiplying the taxable value by the FBT gross up rate (either Type 1 @ 2.0647 or Type 2 @

• Contain your liability by tracking days not available, collecting employee contributions from after tax dollars, tracking un-reimbursed

• Keep accurate log books, odometer readings, and days not available • The minor benefits exemption is useful for benefits that are less than $300 including GST and provided infrequently • Reportable fringe benefits should be recorded on an employee’s payment summaries where the taxable value of the benefits provided for a particular employee are $2,000 or greater • Substantiation, substantiation, substantiation!

BDO automotive FBT reporting package on CD We have developed an FBT reporting package tailored to the motor trades. The reporting package, available on CD, will not only help you calculate the FBT liability of all benefits, but it also allocates your reportable fringe benefit amounts to employees. The summary page mirrors the paper copy of the FBT return to enable you to transfer the numbers with ease. The reporting package also contains documents that should ensure your compliance from a substantiation perspective.

If you have any questions in regard to your FBT compliance or the FBT Reporting Package, please contact either Mark Ward, Darren Crothers, Damian Wright or Randall Bryson from the BDO Automotive team on 07 3237 5999.

Fined for misleading representation

A

Victorian dealership recently paid two infringement notices totaling $13,200 following an ACCC (Australian Competition and Consumer Commission) investigation into its promotional offer of a ‘Free Extended Lifetime Mechanical Warranty’.

The ACCC raised concerns as limitations applied to the warranty which effectively negated the ‘lifetime’ offer. The warranty offer only operated until either the vehicle had reached 175,000 kilometers or the consumer made $3,000 worth of claims.

Patterson Cheney Pty ACCC’s Graeme Ltd, trading as Patterson Samuel Cheney Holden, advertised on 15 October 2010 in The Herald Sun and 16 October 2010 in The Age that during a three-day sale In addition to the it was offering consumers infringement notices, a ‘Free Extended Lifetime Patterson Cheney Mechanical Warranty’ for Holden provided a court new and used vehicles enforceable undertaking purchased at its Vermont to the ACCC to provide dealership. affected customers with the

“This matter is a warning to the motor vehicle industry that dealerships need to be truthful in their advertising and avoid exaggeration when promoting vehicles.” option of switching to its premium warranty product.

It will also implement and maintain a trade practices compliance program and publish corrective notices on its website and in The Herald Sun and The Age. Patterson Cheney Holden operates motor vehicle dealerships in Victoria, selling new and used vehicles. The dealership admits that it made a misleading representation when making the ‘Lifetime Mechanical Warranty’ continued p8

For more information call 1300 362 287 or visit www.centurybatteries.com.au

motor trader queensland

7

industry update statement, as the warranty was subject to significant limitations.

“This matter is a warning to the motor vehicle industry that dealerships need to be truthful in their advertising and avoid exaggeration when promoting vehicles,” ACCC chairman Graeme Samuel said.

“While dealerships are free to offer extended warranties to customers, their advertising of such warranties must be accurate.

Misleading statements must not be used to bait consumers,” he added.

Samuel said the ACCC considered that the representation by Patterson Cheney Holden contravened section 53(g) of the Trade Practices Act 1974.* This provision prohibits false or misleading representations about the existence, exclusion or effect of any condition, warranty, guarantee, right or remedy.

Information about the ACCC powers to issue infringement, substantiation and public warning notices is available via: www.accc. gov.au/notices The infringement notices are listed and the undertaking will be available on the public register section of the ACCC’s website: http://www.accc.gov. au/content/index.phtml/ itemId/977501. *On 1 January 2011 as part of the Australian Consumer Law amendments, the Trade Practices Act 1974 was renamed the Competition and Consumer Act 2010.

8

motor trader queensland

Safety program offers many benefits

T

he highly successful Monroe Safety Specialist Program is set for further growth in 2011 with an even more attractive marketing package designed to maximise the competitive edge of automotive repairers and resellers nationwide.

Featuring Monroe V8 Supercar driver and Safety Ambassador Mark “Frosty” Winterbottom as the face of the Monroe Safety Specialist Program, the 2011 program rewards new and long term members with outstanding value for the low $150 annual joining fee.

All Monroe Safety Specialist Program members receive a welcome pack option worth $300. The first option suits the general repairer, with one pair of Holden rear shock absorbers and one pair of Ford rear shock absorbers, two Monroe polo shirts, two Monroe Safety Specialist signs, one Monroe cap and Monroe tape measure key ring, three Monroe pens, one Monroe aluminium flask, ten Monroe brochures and one Monroe Safety Specialist Program certificate.

The second welcome pack is more suited to the 4WD specialist repairer or reseller, with one pair of Landcruiser Gas Magnum TDT shock absorbers, one Monroe Gas Magnum TDT Cap and the same Monroe merchandise products as in Option 1.

While the welcome packs provide excellent value, (simply on sell the shock absorbers in your welcome pack and the Monroe Safety Specialist Program marketing investment is recouped), the marketing advantages to be gained for your business by becoming a Monroe Safety Specialist Program member are outstanding.

Your business is directly linked to the heavily advertised and promoted Monroe Safety Specialist 1800 hotline which links customers who are actively seeking shock absorber replacement in

Everyone has the chance to win a subscription to V8X, the V8 Supercar magazine. These subscriptions automatically place the member in the running to win Mark Winterbottom’s actual racing helmet from the 2010 season. your area directly to you. Your business is also directly linked to Monroe’s on line dealer locator at www.monroe.com.au, and you also gain your own dedicated web page that includes your business details, location, services and a photo.

Advertising and marketing support services are also provided to Monroe Safety

Specialist Program members including point of sale material, brochures, posters and signage.

Monroe is also offering everyone who joins the 2011 Monroe Safety Specialist Program the chance to win one of 100 twelve-month subscriptions to V8X, Australia’s most popular V8 Supercar magazine. These subscriptions automatically place the member in the running to win Mark Winterbottom’s actual racing helmet from the 2010 season.

All Monroe Safety Specialist Program members also receive the quarterly Monroe Drive and Lukey Growl newsletters to keep informed of the latest product additions and news from Tenneco.

According to Tenneco Aftermarket Director, Roger Lassen, the program is wellproven and keeps improving each year.

“We look forward to attracting new members who will directly benefit from our detailed marketing strategies to attract customers to their businesses.

With our additional benefits included for 2011, we look forward to delivering even more to our network of Monroe Safety Specialists across the country,” said Lassen.

with Suzuki’s Way of Life product philosophy, according to Suzuki Auto Co. General Manager, Adam Le Fevre.

While Cantor will be driving and promoting all vehicles in the Suzuki range, she currently is seeking out waves and information from behind the wheel of a Suzuki Grand Vitara four-wheeldrive.

“Liz represents the best attributes of a healthy, fun, active lifestyle and that is what Suzuki delivers every day with its entire range of vehicles,” Le Fevre said.

“The Grand Vitara models like Liz is driving now, give people access to great off road destinations by delivering real four wheel drive performance – Liz will be telling them what they can expect when they get

there,” he added.

The Suzuki Grand Vitara is one of the most popular four-wheel-drive vehicles in Australia - last year Queenslanders purchased almost a third of all Grand Vitaras sold in Australia despite representing just on 20 percent on the national population.

“I do a lot of driving around south-east Queensland for Channel 7 and for my beach reports,” Cantor said.

“The Grand Vita is the perfect vehicle for that – I’m already in love with it,” she added.

And it’s also big enough to allow her favourite surfboard - a JS six-foot roundtail securely inside the Grand Vitara.

“That way it’s also always

ready for a quick dash into the water,” Cantor said.

The Channel Seven journalist has been a presenter with the network’s The Great South East and Creek to Coast since 2005 and has been filing beach and surf reports for Queensland’s Seven Nightly News since 2005.

Cantor has also been the summer fill-in and weekend weather presenter since 2006 and also has hosted The Gold Lotto Draw in Queensland.

A keen surfer, Cantor was one of the first ever female surf judges to travel at an international level to destinations including Fiji, Hawaii, Europe as well as events near her home on the Gold Coast.

“Liz represents the best attributes of a healthy, fun, active lifestyle and that is what Suzuki delivers every day with its entire range of vehicles.”

To become a Monroe Safety Specialist call 1800 088 205.

Surfs up with Suzuki

I

conic surf reporter, weather presenter and television personality, Liz Cantor has been appointed as the first brand ambassador for Suzuki Queensland.

Liz’s outdoor and active lifestyle is a perfect match

Ready to ride – Suzuki brand ambassador, Liz Cantor can secure her surfboard safely inside a Suzuki Grand Vitara.

motor trader queensland

9

industry update

Gear up for big Bash

T

he most novel and colourful event on the calendar for the past 26 years, the NSW Variety Bash is set to make its August departure from Baulkham Hills (Sydney) for an 11-day trek to Buccaneer Rock (Broome).

Given that since its inception in 1985, it has been tradition for the Bash to start and finish at a destination starting with the letter B, this year the Variety Bash will leave from Baulkham Hills at 8:30am on Saturday August 6th and

finish at Buccaneer Rock on August 17th, travelling 5,423 kilometres. Participants will travel through some of the most remote regions of Australia.

Vehicles are limited to two-wheel drive only, meaning that no caravans, omnibuses, motorbikes or motorised wheelbarrows will be permitted to take part.

The Bash is not a race or a rally but rather a drive in the Outback with like-minded fundraisers, driving the miles for the smiles, enjoying travelling to parts of Australia that they may not otherwise see, at the same time as raising money to support children in need.

The Bashers will stop in various remote towns along their journey, seeing the sites and helping out the local community. As well as raising the much-needed funds for children in need, many entrants view the Bash as simply a holiday with good friends, with the added benefit of raising money for a good cause.

While there are few rules, blatant cheating and bribery are not only allowed - they are encouraged - and Bashers must be in a pre 1974 vehicle, decorated as weird and wonderfully as possible.

to begin fundraising in advance of the Bash and get their family, friends and work colleagues involved. There are no trophies for speeding or special timed sections, as they don’t exist on the Bash.

Trophies are rewarded for the highest fundraisers.

Last year, more than 138 vehicles took part in the Variety Bash and raised $1.76 million. The Variety Bash is the focal point of the fundraising efforts by many hundreds of supporters of Variety.

A fully tax deductible donation of $8,500 to Variety is required to take part in the Bash and any amount raised above this may be used for the purpose of bribing and corrupting officials during the event.

The Bash was originated by businessman, explorer and philanthropist Dick Smith in June 1985 when he organised a group of people to travel from Sydney to Bourke in Far West New South Wales, and from there to Burketown in Northern Queensland.

Participants are encouraged

During Variety’s vibrant

while there are few rules, blatant

cheating and bribery are not only allowed - but encouraged

10

motor trader queensland

35-year history in Australia, it has granted over $160 million in specialised medical equipment and services to individual children, children’s medical facilities, children’s emergency transport services, schools and support organisations. Survival, independence, self-esteem, mobility, communication, education, achievement, hope, joy and smiles are only some of the immeasurable life long differences that Variety, the Children’s Charity continues to make.

Kindergarten and Preschool, providing for the installation of a wheelchairfriendly bathroom for their special needs children.

The donation of $25,464 will ensure the kindy can continue to provide quality and

“The new bathroom will allow the kindergarten to accept all children, regardless of their capabilities. The kindergarten is making a positive difference in the lives of its students and their families,” Mr. Smalley said.

children regardless of ability.

For further information visit: www.varietynsw.org.au/bash inclusive education and care for all children.

Honda’s community focus

T

he Honda Foundation and Sunshine Coast Honda have made a large donation to Nambour Community

The Honda Foundation aims to provide assistance to local communities and foster goodwill among Honda Australia, Honda Motor Vehicle Dealers and the public.

Mr. Lindsay Smalley, Chairman of The Honda Foundation commended the Nambour Community Kindergarten and Preschool for their dedication to providing its pupils with equal opportunities.

Grants Officer at the kindy Ms. Jo Jones said that the school’s curriculum has a strong emphasis on diversity that strives for an environment that allows total inclusiveness for all

“The funding of this project will benefit all future students for many years to come and will enrich the lives of local children and their families,” said Jones.

“Special needs children will now feel welcome to enrol at our kindy and use the bathroom facilities with the dignity they deserve,” she added.

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3208 2522

TOOWOOMBA

519 BOUNDARY ROAD

4634 0444

WARWICK

145 MCEVOY STREET

4667 1668

motor trader queensland

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industry update Dealer Principal of Sunshine Coast Honda, Mr. Phil Drinnan, praised the Nambour Community Kindergarten and Preschool for their work in the community and said the donation was well deserved.

The Honda Foundation aims to provide assistance to local communities and foster goodwill among Honda Australia, Honda Motor Vehicle Dealers and the public. It draws funding from Honda Dealers and Honda Australia who donate $15 ($5 and $10 respectively) for every Honda car sold.

For more information on The Honda Foundation and the organisations it supports, please visit www. hondafoundation.org.au

Competition drives manufacturing processes

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he commercial vehicle market is enjoying low cost truck pricing on new products being manufactured in Asia.

This in turn has western manufacturers rethinking production strategy.

Business research and consulting firm, Frost & Sullivan, recently said that the global

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motor trader queensland

commercial vehicle market is experiencing a “growing invasion of low-cost trucks”.

These trucks, mostly from Asian OEMs, are priced approximately 20-25 percent lower than conventional trucks and are penetrating markets all over the world.

“The demand for low-cost trucks is set to experience a steady and robust growth over the next five years,” said research analyst, Ryan Carmichael.

“Asian OEMs, particularly those based in China and India are creating lowcost truck platforms to target global markets.

OEMs in developed markets have not as yet pushed costreduction strategies domestically, but will be challenged to, when these vehicles begin to arrive."

“Asian OEMs, particularly those based in China and India are creating low-cost truck platforms to target global markets. OEMs in developed markets have not as yet pushed cost-reduction strategies domestically, but will be challenged to, when these vehicles begin to arrive.

In addressing this threat, OEMs in developed markets will not only need to defend market share at home, but will also need to push products into developing markets in order to establish a more diversified global presence,” he explained.

The cost saving strategies, relative to other commercial vehicles available in a given segment, include powertrain downsizing, chassis reductions, amongst others.

“Some of the greatest potential sales of low-cost vehicles will happen in segments of the freight market which are currently using vehicles that are actually over-engineered to suit the actual work requirements,” Carmichael said.

Proactive, customerfocused dealers stay strong

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he annual 2010 Deloitte Motor Industry Overview has highlighted how the motor industry experienced startlingly different results during 2010.

Results from the first six months of the year benefited from the flow on effect of the investment allowance, production slowdown and lower interest rate, with record sales across the industry.

However according to the report’s author, Danny Rezek, Deloitte Motor Industry Services partner, the second half of 2010 was a different game. Incentives were gone and interest rates started to increase causing a net profit decline of 30% over the last six months of the year for the average dealer.

Rezek highlighted that despite Australian motor vehicle sales for 2010 eclipsing the million mark for the third time in history, dealerships experienced a decline in profitability for new vehicle sales, due to leaner margins, a competitive market, and

higher overhead expenses.

The report attributes a range of factors including the government stimulus package ending, rising interest rates, fewer tax incentives, lower levels of inventory and tightening of expenses which produced declining growth profit margins for new and used vehicles.

According to Rezek, 2010 was a challenging period for the automotive industry. Average dealers suffered with a profit margin decline of 30% over the last six months, from a high of 2.5% to around 1.8% for the most recent six months.

“It is the top 5% of performers who actually plan to make a 5% net profit on sales and these dealers commit to this target in writing and it is often agreed by the management team,” said Rezek.

“It is clear from the report that management across the motor industry must focus their monthly management meetings on factors such as the non financial KPI’s like service retention, showroom statistics and client satisfaction so that better actions and processes can take place,” he explained.

“Also the better performing dealers in the report focus on the customer and create sustainable and valuable customer interactions, which often lead to repeat business.

It appears that training and coaching of staff is critical during this time in order to keep the customer in the client relationship management funnel,” Rezek added.

Key highlights of the 2011 report were: • Overall market leadership went once again to Toyota for the eighth consecutive year, selling 214,718 vehicles, up 6.8% on the previous year with a 20.7% market share

• Holden finished a distant second behind Toyota and the Holden Commodore achieved the title of Australia’s top selling model for the 15th consecutive year • As economy and fuel considerations became more important for the consumer, the small and light car segments have significantly grown and now represents close to a quarter of total sales • The USA was eclipsed

by China for the first time in 2009 relinquishing their title as the world’s largest automotive retail market and sales in the USA fell from 16.1 million in 2007 to just 11.5 million in 2010.

• China overtook the USA to claim the title of the world’s largest automotive market in 2010 with 18.1 million

vehicles sold, ahead of the best market the USA has ever achieved

it challenging for exporters over recent times The report also detailed how successful dealers have had to change their work culture, cull inefficiencies, improve staff retention, tighten expenses and negotiate more competitive deals from suppliers.

• Only 14% of vehicles sold in the Australian market in 2010 were locally produced. In the mid 1990s it was around 50% • It is anticipated the Chinese domestic market will exceed more than that of the USA and European markets combined with over 35 million units by 2020

“The Global Financial Crisis has hit the industry hard and production has been dramatically pulled back to more realistic inventory levels across the industry. The gap between the average and Top 5% best performing dealers has widened, which highlights how these dealers do not become complacent during good times and have effective recruitment practices which incorporates staff development,” Rezek said.

• The strong Australian dollar has helped importers and the Australian market is now one of the most open and competitive in the world • The long term future of the Australian automotive industry rests in successful export programs and the strong Australian dollar has made

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13

motor trader consumer guarantees Australian Consumer Law (“the ACL”) has reformed the rules relating to consumer guarantees, warranties, refunds and lay-by agreements by providing a single set of consistent, statutory consumer guarantees and rules that are both simple and clear. The ACL is contained within Schedule 2 of the Competition and Consumer Act 2010 (“the CCA”).

The CCA has replaced the Trade Practices Act 1974.

By Brian Smith, Commercial Director Bennett & Philp Lawyers

A

ustralian Consumer Law (“the ACL”) has reformed the rules relating to consumer guarantees, warranties, refunds and lay-by agreements by providing a single set of consistent, statutory consumer guarantees and rules that are both simple and clear.

The ACL is contained within Schedule 2 of the Competition and Consumer Act 2010 (“the CCA”). The CCA has replaced the Trade Practices Act 1974.

Any customer who has bought any product or service anywhere in Australia since 1 January 2011 has automatically acquired certain rights which are now known as consumer guarantees. These consumer guarantees give customers rights to remedy problems with goods or services they purchased after 1 January 2011.

The ACL have produced various guides for businesses which, unhelpfully for you, do not provide any examples specific to the motor industry.

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motor trader queensland

This article aims to highlight some everyday examples relating to the motor industry.

We hope this article will encourage motor traders to review their sales practices to ensure that the people giving (or the documentation making) assurances to, and agreements with, customers comply with the ACL. In today’s marketplace sales of goods and services often occur without parties appreciating that a contract is being made, performed and representations relied on.

Following the changes in the ACL, customers are beginning to understand their consumer rights to a much greater degree than previously under the Trade Practices Act 1974.

There are not yet any reported cases testing the ambits of consumer guarantees but that is bound to change soon and you do not want one of your customers being the Queensland ‘test case’.

Please note for the purposes of this article the example used to explain scenarios

is for the purchase of a motor vehicle for personal or domestic use.

Below are some scenarios in which motor traders should beware of: Lay-by or bye bye – When can a customer walk away from a deal?

Lay-by style agreements are created everyday by motor dealerships to allow customers to pay for a motor vehicle over a period of time.

However, under Section 96 of the CCA, there are certain criteria which must be satisfied in order to constitute a “lay-by agreement” within the provisions of the CCA. Under Section 96 of the CCA a lay-by agreement is a written agreement between a motor trader and a customer which provides that: 1. A motor vehicle will not be delivered to the customer until the total price has been paid; and 2. All the terms and

conditions must be clearly specified in the written agreement including the details of any termination charge; and 3. A copy of the agreement has been given to the customer; and 4. The price is to be paid by 3 or more instalments; or 5. If the agreement specifies that it is a lay-by agreement the price is to be paid by 2 or more instalments.

Motor dealers are encouraged to check the wording of their written agreements to ascertain whether or not their written agreement actually specifies whether it is: a) “A lay-by agreement” (meaning it is a lay by agreement within Section 96 of the CCA if a customer is paying in 2 or more instalments) or b) Just a written agreement for payments over a period of time (meaning it is a lay by agreement under Section 96 of the CCA if a customer is paying in 3 or more instalments).

In both the agreements described above the deposit is counted as the first instalment.

rs beware

and lay-by agreements If an agreement is a lay-by agreement under Section 96 of the CCA then a customer can terminate a lay-by agreement at any time before the motor vehicle is delivered to the customer.

This means that if a customer pays a deposit to secure a motor vehicle and enters into a written agreement to pay the balance by a further 2 instalments, then changes their mind the day before delivery, the customer is entitled to terminate the agreement and receive a full refund (less a termination charge). This is not good news for the motor trader.

The maximum civil pecuniary penalty for bodies corporate who do not comply with the provisions under the ACL relating to lay-by agreements can be as high as $30,000.

In respect of the termination charge motor traders should note the following: 1. The termination charge must be specified in the written agreement; and 2. The amount of the termination charge cannot be more than your reasonable costs in relation to the agreement.

We cannot find any examples or guidance as to what may be deemed a “reasonable� termination charge amount. motor trader queensland

15

In our opinion a motor trader should consider the issue of proportionality when calculating a termination charge, in that, the same charge cannot be deemed reasonable if it is applied to a lay by agreement to purchase a $30,000 motor vehicle as compared to a $500 spare part. Perhaps a charge calculated at 1% of the total purchase price could be deemed reasonable?

Motor Trader: “Would you like to purchase our extended warranty?”

What may have once been considered an encouraging sales pitch may now be worthless under the new ACL. Customers now have the benefit of consumer guarantees which afford them protection regardless of any warranty they may have purchased or been given.

If you are offering an extended warranty then it must offer some protection over and above what the ACL consumer guarantees provide for. In reality it is likely that extended warranties will become a thing of the past as no motor trader is going to want to offer a full repair warranty for an excessively long period of time.

Motor Trader: “It’s covered by the manufacturer’s warranty” This is a perfectly usual statement to be told when purchasing many motor vehicles. Often a customer will have the benefit of a warranty against defects in a motor vehicle. In the case of brand new or nearly new vehicle, such a warranty is often provided by the manufacturer of the vehicle. In the case of older, second hand motor vehicles it is sometimes the dealership itself who offers a manufacturer’s style warranty.

Any manufacturer’s warranty 16

motor trader queensland

will need to comply with the following: a) Be in writing and contain clear terms and conditions; b) Specify the contact details of the company giving the warranty; c) Set out the claim periods or procedures for making a claim;

Customer: “The sign outside shows a different price” Motor traders will be committing an offence if they have more than one price displayed for a motor vehicle and they proceed to sell the motor vehicle for a price that is not the lowest of the displayed prices.

d) Specify that the manufacturer’s warranty does not seek to exclude any consumer guarantees under the ACL.

Under Section 165 of the ACL a motor trader could be subjected to a $5,000 penalty if they do not comply with this Section.

Motor Trader: “That car’s a beauty it’ll last you for 10 years”

What to do if a customer makes a complaint relating to a consumer guarantee:

Motor traders must now exercise extra caution in making statements (such as the above) to prospective customers. Customers can now, under the ACL, seek to rely on such assertions at a later date if they experience problems with their motor vehicle. Such promises are known as “express guarantees”.

1. Make a detailed note of the complaint being made and locate any documents on file for the customer.

For example, if a customer purchased a motor vehicle which has engine failure after 5 years then the customer can seek a remedy from you on the basis that they relied on your guarantee that the motor vehicle would last for 10 years. This could prove very costly for your business.

Customer: “That’s not the same as the car I test drove” As a motor trader you are guaranteeing to a customer that when buying a motor vehicle it matches a demonstration model.

If the motor vehicle being purchased will be different to the demonstration model (for example in colour and specification) this should be drawn to a customer’s attention and clearly stated on the agreement to purchase.

2. Check your records to ascertain whether or not the motor vehicle was purchased after 1 January 2011. (If it was not then the ACL will not apply and regard will have to be had to the old Trade Practices Act 1974 which is not covered in this article).

3. What is the complaint/ problem with the motor vehicle? a) If the problem is minor then you can choose whether to repair the motor vehicle or offer the customer a replacement or a refund. In this instance the customer will require the remedy within a reasonable time. You will have to assess what is a reasonable time based on staff/part availability etc; b) If the problem is major failure then the customer can reject the goods and choose a refund or replacement or keep the goods and ask for compensation for any drop in value of the goods.

Please note that a customer simply changing their mind on a motor vehicle does not constitute the above.

It is also difficult at present to provide you with a gauge of examples of minor and major failures and much will depend on the nature of the failure having regard to the motor vehicle purchased and your industry opinion on the problem.

4. How much time has elapsed since the date the customer took delivery of the motor vehicle? In the case of a motor vehicle this will be up to you to assess based on the type of motor vehicle, the age, the kilometres on the clock and the nature of the fault.

There is no doubt that the ACL has made the laws relating to consumer guarantees “pro customer” with severe penalties for suppliers who fail to comply. However, the ACL is easy to follow and understand and it is now up to you and your business to ensure the ACL are being followed and your staff understand the importance of consumer guarantees.

At Bennett & Philp Lawyers we advise many businesses on all issues relating to consumer law. We would happily advise you or your business should you have any queries as a result of this article.

This article provides a general overview of some relevant topics regarding the ACL and related issues. Please note this article is not intended to provide nor does it constitute legal advice. You should seek legal advice before acting on or using the content of this article. Should you require legal advice on matters raised in this article please contact Bennett & Philp Lawyers on 07 3001 2999.

innovation Ford’s award winning seat

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he high-quality leather detailed seats in the special 50th anniversary Ford Falcon won the professional division in the Product Design – Automotive and Transport category of the 2010 Melbourne Design Awards.

“It’s a significant achievement for our talented design team to have won against such a high-calibre of entrants,” said Ford’s Melbournebased Asia, Pacific and Africa Design Director, Chris Svensson.

Under Svensson’s supervision the project

brief for the Falcon’s 50th Anniversary seats was to create a premium seat that captured the imagination of customers befitting a true collectors’ edition.

Ford Colour and Materials Design Manager, Emily Lai, said Falcon’s high-grade leather detailed seat not only had to look good but had to stand the test of time, both physically and visually.

and character of the seats.

“Importantly, there is a strong connection to our brand as well.”

Svensson said that from a marketing point-of-view the 50th Anniversary seat design had to appeal to traditional Falcon customers but also attract potential buyers not yet connected to the brand.

“We also had to take into consideration important safety, volume manufacturing and cost parameters for the seat design,” she said.

Apart from the Falcon’s 50th Anniversary seats, the rugged Australian-designed and engineered nextgeneration Ranger pickup was a finalist in the Product Design – Automotive and Transport category.

“We also employed a new strategy of embossing as well as unique sew styles to alter the proportions, look

Ford’s APA Research Centre was among several leading design studios to feature in this year’s awards.

“It’s a significant achievement for our talented design team to have won against such a high-calibre of entrants.”

Easy access

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he BMW Group and Sixt AG are planning a unique and innovative car-sharing venture.

Begun in April - initially in Munich and later in Berlin - the two companies have joined forces to offer a modern mobility concept under the brand name DriveNow. This new product will combine vehicles and service of the highest quality with simple, flexible usage.

DriveNow is the first carsharing concept to place an emphasis on efficient premium vehicles and comprehensive service.

Vehicles may be hired and dropped off wherever the customer needs them, thus clearly differentiating DriveNow from products offered by other competitors.

Sixt AG and the BMW Group have bundled their car sharing activities in the DriveNow joint venture, in which each company holds a 50 percent stake. The BMW Group provides the premium vehicles and the technology within the cars, while Sixt AG contributes premium services, car-hire know-how, IT systems and a comprehensive customer registration network.

The BMW Group is offering DriveNow under the new sub-trademark BMW i, which stands for innovative mobility services and which will reinforce the position of the original BMW brand as a sustainable and forwardlooking brand.

Ian Robertson, Member of the Board of Management of the BMW AG for Sales and Marketing said that as a mobility provider, the motor trader queensland

17

innovation BMW Group is not simply an automobile manufacturer.

“There is a growing demand for flexible mobility products in urban areas. DriveNow’s premium car sharing services are aimed precisely at this gap in the market. We are aiming to launch a profitable new line of business while at the same time introducing potential new customers to our brands,” said Robertson.

“Car sharing also has a role to play in cutting down traffic volumes, by reducing the time spent searching for parking spaces and in providing an alternative replacement for little-used, old and inefficient vehicles,” he added.

Detlev Pätsch, Member of the Sixt AG Board of Management responsible for Operations, said that in the middle of 2008, Sixt pioneered innovative car sharing when it started up its SIXTI Car Club in Berlin.

“Together with BMW, we have now taken this concept a stage further to become DriveNow. The wealth of experience which we have already gained in car rental processes and fleet management systems will enable us from the outset to offer our DriveNow customers complicationfree mobility combined with excellent customer service, the basis for a sustainable and profitable business model,” he explained.

DriveNow is a car-sharing scheme that is not dependent on car hire stations. Fixed pick-up and drop-off points are not necessary. Customers will be able to find available vehicles via the internet under www.drive-now.com, via a smartphone app or simply at the roadside. Vehicles can be used immediately without advance reservation or they may be booked in advance via internet or smartphone app. The system is “keyless”: a conventional car key is not necessary. DriveNow vehicles can be opened and closed with a chip on the driving license and activated by pressing the start button.

Having completed an application under www. drive-now.com, it is then only necessary to carry out a one-off registration at a Sixt station in order to check driving license details and enter the chip onto the driving license. Registration can also be carried out at Sixt stations in selected BMW or MINI branches.

Beginner drivers can also become active DriveNow members if they have

already participated successfully in an approved driving safety-training course.

The BMW Group also offers such training courses.

DriveNow is a car-sharing scheme that is not dependent on car hire stations.

Fixed pick-up and drop-off points are not necessary. Customers will be able to find available vehicles via the internet under www.drive-now.com, via a smartphone app or simply at the roadside. Vehicles can be used immediately without advance reservation or they may be booked in advance via internet or smartphone app.

The DriveNow price model will be simple, transparent and all-inclusive. Users pay a one-off registration fee of AUD$39. The charge for using vehicles is 40 cents (including sales tax) per minute. This rate per minute covers all costs, including parking fees and fuel.

For the MINI Cooper there is a maximum hourly charge of $20.30. If the customer wants to interrupt the journey but keep the DriveNow vehicle, it only costs 14 cents per minute. In this way, DriveNow combines the benefits of this innovative mobility concept that does not necessarily involve hire-stations with the functionality of traditional, stationary car sharing.

DriveNow is also made a special introductory offer for the first 1,000 members. The one-off registration fee was reduced to $26 and they also receive 90 minutes free of charge.

In addition to free parking in public areas in the centre of town, DriveNow will also make spaces available in selected multi-storey car parks as required.

Subject to approval by the anti-trust authorities, additional European cities will be added in the coming years. The long-term plan is to introduce DriveNow on other continents as well.

Both the product and the brand have global appeal.

By the year 2020, the plan is for DriveNow to have one million members worldwide.

The plan is also to use electric vehicles in the future.

Depending on demand, other models can be added to the car sharing fleet at a later stage. The cars are all premium vehicles with at least four seats, luxury fittings (e.g. parking assistance, air conditioning, heated seats,

pedestrians make up

a significant

of all proportion etc.) and fitted with extremely efficient engines. The cars are all easily recognisable with the DriveNow logo.

New lab bolsters safety

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new University of Adelaide laboratory to help pedestrian and road vehicle safety was opened in April.

The Centre for Automotive Safety Research’s (CASR) new Vehicle Safety Laboratory has been purpose-built in Kent Town and is the only facility of its kind in Australia.

The Laboratory will focus on pedestrian crash impact testing and will be the official testing facility for the pedestrian component of the Australasian New

Car Assessment Program (ANCAP).

CASR director, professor Mary Lydon, said that pedestrians make up a significant proportion of all road casualties, accounting within Australia for 16.5% of all road fatalities and 8.5% of all serious injuries.

“This testing will assist the design of more pedestrian friendly vehicles. It puts the spotlight on protection offered to pedestrians by different vehicle structures and means we can measure improvements and differences in safety,” said Lydon.

ANCAP Chair Lauchlan McIntosh said the opening of the new CASR facility in Adelaide would improve ANCAP’s internationally recognised crash testing regime in the interests of

road casualties

all Australian road users, including pedestrians and other vulnerable users.

“Pedestrian testing is a major part of ANCAP’s crash testing process, and these new CASR facilities will provide a better amenity for the pedestrian tests which form a part of the overall ANCAP safety rating,” McIntosh said.

“ANCAP has worked closely with CASR for some years now in testing and providing vehicle safety ratings, and these new premises will only strengthen our relationship.”

Mr Tom Phillips, Chair of the CASR Reference Board said that CASR appreciates the support provided by ANCAP in setting up the new laboratory and is looking forward to continuing

to support ANCAP in its excellent work.

The laboratory testing meets global and European regulations, directives and protocols and includes bull bar testing and development, impact testing of energy absorbing materials, vehicle interior impact testing, crash reconstruction, high-speed film capture and high resolution data acquisition.

The University of Adelaide’s Centre for Automotive Safety Research is a world-renowned specialised centre for road safety research, carrying out multidisciplinary research into all aspects of road safety with the aim of reducing the human and social costs of road trauma. motor trader queensland

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members profile Attention to detail

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magine starting a new career at age 42 and still going at it forty years later.

Looking forward to his 82nd birthday in September, full-time worker Bill Reinicke works as a detailer in the AP Eagers pre-delivery department at the company’s extensive property at Curtin Avenue East, Eagle Farm.

Brisbane-born Reinicke was employed by Eagers in 1971 at the Newstead location and worked in the pre-war sheds that the Australian government had leased out to the American military during World War II. Throughout his career, Reinicke has undertaken a variety of jobs at the company including reconditioning vehicles for leasing, preparing ex-Council cars for resale, working with insurance companies and managing the body shop.

The oldest active member of the Vehicle Builders Union (later merged in to what is now the AFMEU), Reinicke recalls a time when “all the clients were my friends”.

(l to r) Bill Reinicke, Garry Walker

The oldest active member of the Vehicle Builders Union (later merged in to what is now the AFMEU), Reinicke recalls a time when “all the clients were my friends."

“Eagers is a really good place to work. We have good management and a nice crowd here,” he added.

he gives very good advice on prep work. We are very fortunate to have him on board,” he said.

Reinicke’s manager Garry Walker has been with the company for 20 years and said that his oldest employee has the type of valuable experience that is appreciated by everyone on the team.

In his spare time Reinicke enjoys fishing and the surf, a passion he acquired long ago when he was a lifeguard at Kirra.

“He’s an expert,” said Walker.

“Bill has vast experience and

Retirement is not on the agenda. With the body of a fit 50 year old, this detailer is enjoying every day and is inspiration to all.

A.P. Eagers: an overview A.P. Eagers Limited is a pure automotive retail group with main operations in southeast Queensland, Adelaide, Darwin, Melbourne, Sydney and the Newcastle/Hunter Valley region of New South Wales.

The company represents all ten of the top ten selling car brands in Australia, and 31 car brands in total. They also represent 12 truck and bus brands.

A.P. Eagers’ core business consists of the ownership and operation of motor vehicle dealerships, which provide full facilities covering new motor vehicle sales, used motor vehicle sales, service, spare parts and the facilitation of allied consumer finance.

To complement their vehicle

dealerships, the company also operates a substantial motor vehicle auction business, Brisbane Motor Auctions, based at Eagle Farm, Queensland.

AP Eagers’ operations are provided through strategically clustered dealerships, 65% of which are situated on properties fully owned.

The company owns more than 70 acres of prime real estate supporting their dealership network. These properties are largely positioned in high profile, main road locations in Brisbane, Sydney, Adelaide, Newcastle and Darwin, with a book value of $321 million as at December 2010.

With approximately 2,900 employees and 4,000 shareholders, sales revenue is running at close to $2.4 billion per annum.

The years teach much which the days never knew - Ralph Waldo Emerson 20

motor trader queensland

A.P. Eagers Limited originated with the company E.G. Eager & Son Pty Ltd, which was a family automotive business established by Edward Eager and his son, Frederick, in Brisbane in 1913 and which continues today as a wholly-owned subsidiary of A.P. Eagers Limited.

After establishing the first motor vehicle assembly plant in Queensland in 1922, the company became the distributor of General Motors’ products in Queensland and northern New South Wales in 1930 and listed as a public company in April 1957.

A merger in 1992 with A.P. Group Ltd, which owned a number of new vehicle franchises, saw the name change to A.P. Eagers Limited. Since that time further motor vehicle franchises have been added

and growth has continued.

Operations expanded into the Northern Territory with the acquisition of Bridge Toyota in 2005 and Hidden Valley Ford and the Stuart Motor Group in 2006.

In 2007, A.P. Eagers established itself on the Gold Coast with the acquisition of Surfers City Holden, Saab and Hummer.

The addition of the Kloster Motor Group in the Newcastle/Hunter Valley region in 2007 heralded the company’s advance into New South Wales. Operations in that state were extended with the acquisition of the Bill Buckle Auto Group in the Northern Beaches region of Sydney in 2008.

In early 2010, A.P. Eagers acquired the Caloundra City Autos Group, representing

(correction from April Motor Trader, p. 23) Evan Sides won Ford’s Apprentice of the Year Award

five car brands on two prime sites in Queensland’s growing Sunshine Coast region.

The company acquired 100% ownership of the publicly listed Adtrans Group Limited in late 2010. This represented direct entry into the South Australian and Victorian markets, with Adtrans being the premier automotive

retailer in South Australia and, at the time of announcing our acquisition, operating seven car brands and eight truck and bus brands across three states - South Australia, Victoria and New South Wales. Following that acquisition, Adtrans now represents ten car brands and twelve truck and bus brands.

MTA Queensland welcomes the following new members Business Name

Principal/s

Street/Postal Address

Division

Boot to Bonnet Autos Pty Ltd

Shane Walker

515 Alice St Maryborough Q 4650

Right Price Panel N Paint

Lance Seccombe

436 Sheridan St Cairns North Q 4870

NACA

Bridgestone Select Zillmere

Peter Poli & Glenn Ferguson

1/260 Zillmere Rd Zillmere Q 4034

TUDQ

Mikes Tyres

MIcheal Rogers & Linda Rogers

Cnr Bayswater & Dalrymple Rds Garbutt Q 4814

TUDQ

Tyrepower Townsville

Anthony & Kathleen Thomson

7 Yarrowee St Currajong Q 4812

TUDQ

Goodyear Autocare Currajong

William Horwood

188-190 Hugh St Currajong Q 4812

TUDQ

St Pauls Smash Repairs

John Murphy

184 Abbotsford Rd Bowen Hills Q 4006

NACA

Chaser Automotive

Ian Challenor

17 Griffith St South Townsville Q 4810

AED

Townsville Car Doctor

Geoff Towner

74 Charles St Aitkenvale Q 4814

AED

Ace Automatics

Darren Booth

5/63 Moss St Slacks Creek

AED

Dynolink

Vernon Crawford

16 Civil Rd Garbutt Q 4814

AED

ABS Caboolture

Darryl Porter

48 Beerburrum Road Caboolture Q 4510

AED

John Conroy Classic Cars

John & Lynne Conroy

194 Breakfast Creek Rd Newstead Q 4006

UCD

Air Repair NQ

Rodney Paringa

1231 Riveryway Drive Rasmussen Q 4815

AED

Scoot2Commute

David McGain

86 St Pauls Terrace Fortitude Valley Q 4006

QMID

Moorooka Chery, Isuzu Ute, Used Cars

Craig Kibsguard

1071 Ipswich Rd Moorooka Q 4105

AADA

Yeppoon Motorcycles

Shaun Coughlin

1/4 McBean St Yeppon Q 4703

QMID

Happy Spanners

Daniel Williams

7 Brolga St Kewarra Q 4879

AED

Battery Traders Auto Electrics

Robert Eldred

82 Moss St Slacks Creek Q 4127

AED

AED

motor trader queensland

21

health Do you need the flu vaccine?

I

nfluenza (the flu) is caused by a highly contagious virus that is spread by coughs and sneezes and annual immunisation is strongly recommended for older people and those ‘at risk’.

This is important to avoid serious complications, such as pneumonia, which may arise as a result of contracting the virus.

Immunisation should occur between March and May, before the onset of the flu season. Protection develops about two weeks after the injection and lasts for up to one year.

If someone contracts the virus, the flu symptoms develop one to three days after infection and include: • High fever, chills and sweating • Sore throat

• Colds cause a runny nose, while the flu usually starts with a dry sensation in the nose and throat.

People with an underlying medical condition or reduced immunity are most at risk. They include: • Everyone aged 65 years and older • Aboriginal and Torres Strait Islander people aged 15 years and over • All public hospital outpatients and inpatients with high risk factors.

• Anyone from six months of age with heart disease, chronic lung disease, chronic neurological conditions, impaired immunity and other chronic illnesses such as diabetes, kidney disease and haemoglobinopathies • Residents in nursing homes or other long-term care facilities • Homeless people

• Headache

• Severe asthmatics who require frequent hospital visits

• General muscle and joint pains (legs and back)

• Pregnant women during any stage of pregnancy

• A non-productive cough that can later become more severe and productive

• Children on long-term aspirin therapy

• Weakness

Treatment includes bed rest, paracetamol and drinking plenty of fluids.

Differences between the flu and a bad cold include: • Cold symptoms last one to two days while the flu can last up to a week.

• The flu causes a high fever. A cold sometimes causes a mild fever.

• Muscular pains and shivering attacks occur with the flu but not with a cold.

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motor trader queensland

Influenza season: debunking the myths Myths about the flu are everywhere. According to many experts, misconceptions and rumors about the flu are as hard to contain and as hard to fight as the virus itself.

Flu Myth #1: The seasonal flu is annoying but harmless.

There has been a lot of focus on swine flu, but it’s important to remember that the run-of-the-mill seasonal flu can be a serious condition itself. A lot of people just think of the flu as a very bad cold but it’s much worse than that.

For one, you usually feel terrible. In addition to the congestion and cough, you’re apt to have nasty body aches and fever, which are less likely with a garden-variety cold. When you get the flu, you know it.

Aside from the short-term misery and lost workdays, flu can have more serious implications. Sure, most people who get the

• Other chronic illnesses requiring regular medical follow-up or hospitalisation.

• People who work with or live in close contact with people who have an underlying medical condition or reduced immunity are also recommended to be vaccinated to avoid spreading the virus and to protect themselves and their family.

seasonal flu recover just fine. But the seasonal flu also kills hundreds of thousands of people worldwide each year Flu Myth #2: Swine flu is transmitted by pork products.

Lots of people reacted to the swine flu outbreaks by swearing off bacon – just as some countries reacted by banning pork or slaughtering

pigs. But experts say that despite the name, there’s no reason to worry about pork products spreading swine flu. You can’t get the flu from eating pork.

Flu Myth #3: The flu vaccine can give you the flu.

This is the flu myth most likely to drive experts bonkers. It is imposible that the flu vaccine can give you the flu. Why? Injected flu vaccines only contain dead virus, and a dead virus is, well, dead: it can’t infect you. Despite the scientific impossibility of getting the flu from the flu vaccines, this widespread flu myth won’t die. Experts suspect two reasons for its persistence. One, people mistake the side effects of the vaccine for flu. While side effects to the vaccine these days tend to be a sore arm, in the

past, side effects often felt like mild symptoms of the flu. Two, flu season coincides with a time of year when bugs causing colds and other respiratory illnesses are in the air. Many people get the vaccine and then, within a few days, get sick with an unrelated cold virus. However, they blame the flu vaccine, rather than their co-worker with a runny nose and cough.

Flu Myth #4: There is no treatment for the flu.

Two antiviral drugs are highly effective against the flu: Tamiflu, in pill form, and

Relenza, which is inhaled.

These drugs are most effective if taken within 48 hours of your first flu symptoms. But the drugs are beneficial even if taken 48 hours after symptom onset.

Neither Tamiflu nor Relenza cures the flu. But they can reduce the amount of time you’re sick by one or two days and make you less contagious to others. These drugs work with both the typical strains of seasonal flu as well as swine flu.

ill or die from the seasonal flu are over age 65. But flu can become risky for anyone, even healthy young adults. Some of the most susceptible people to seasonal influenza are young children. Ninety percent of H1N1 swine flu deaths have been in people under age 65, while 90% of seasonal flu deaths are in the elderly. And both seasonal and pandemic flu are particularly dangerous for very young children.

Flu Myth #5: Antibiotics can fight the flu.

Antibiotics only fight bacterial infections.

Flu - whether it’s typical

Flu Myth #7: “Stomach flu” is a form of influenza. seasonal flu or swine flu - is not caused by bacteria, but by a virus. So antibiotics have absolutely no effect on any kind of flu. But this message just won’t sink in for some people.

However, there are instances of flu complications that involve bacterial infection. The flu virus can weaken your body and allow bacterial invaders to infect you. Secondary bacterial infections to the flu include bronchitis, ear infections, sinusitis, and most often, pneumonia.

If your flu symptoms are getting better and then suddenly get worse, call your GP. This may be a sign of a bacterial co-infection.

Flu Myth #6: The flu is only dangerous for the elderly.

It’s true that the people most likely to become seriously

The word ‘flu’ is so overused that it’s lost much of its actual meaning.

Gastrointestinal viruses are called the ‘stomach flu’ but they have no connection to the actual influenza virus.

If you suffer vomiting and diarrhea, but no fever or body ache, you probably do not have the flu.

Keep in mind: in children, the influenza virus can sometimes cause vomiting and diarrhea. And these symptoms have also been associated with some cases of swine flu.

But when it comes to typical seasonal flu, vomiting and diarrhea are rare in adults.

Flu Myth #8: If you get the flu, you can’t get it again during that flu season.

Many people assume that if they’ve had the flu recently, they can’t get it again and thus don’t need to get the vaccine. That’s not the case because flu infection can

happen from more than one strain of virus.

Flu Myth #9: If you’re young and healthy, you don’t need to worry about getting the vaccine.

First of all, we should all get the seasonal flu vaccine. Sure, if you’re in good health, you’ll

probably recover from the seasonal flu just fine. But why suffer through the flu if you can avoid it? Second, protecting yourself isn’t the only reason to get vaccinated.

Healthy adults forget that while they themselves might be at low risk for getting serious flu complications, other people in their family might not. People with the weakest defenses, like children under 6 months, can’t get the flu vaccine. Their safety depends on the rest of us getting immunized.

Flu Myth #10: You can skip years between flu vaccinations.

Experts say that some of us don’t understand that we need a new seasonal flu vaccine every year. It’s confusing, since the flu vaccine is different from most vaccines, which offer longer-lasting protection. With the measles vaccine, you get two injections and then you don’t have to worry about it for the rest of your life. The flu vaccine isn’t like that.

Why? The particular strains of flu that are dominant change every single year. So every single year, researchers have to develop a brand new vaccine.

Flu Myth #11: Vaccines are dangerous.

In recent years, there’s

been growing mistrust of vaccines, including the flu vaccine. Some believe that there could be a link between vaccines - specifically the ingredient thimerosal - and developmental disorders in children, like autism.

However, there is no evidence that vaccines cause autism, and experts say that we’re losing sight of how important vaccines are.

Vaccines are, arguably, the greatest medical advance in history.They’ve prevented more illness and death than any treatment.

Flu Myth #12: Cold weather causes the flu.

No matter what your grandmother may have said, going outside in the winter hatless does not increase your risk of flu. While there might seem to be a connection - since flu season typically coincides with colder months - there isn’t. After all, flu season is the same throughout the whole country: even if it’s frigid in Melbourne, it’s still warm in Darwin. The rise and fall of flu season each year has more to do with the natural cycle of the virus, although experts aren’t exactly sure how it works.

Flu Myth #13: If you haven’t gotten the seasonal flu vaccine by July, there’s no point getting vaccinated.

The flu often doesn’t hit its peak until August or sometimes as late as September.

So no matter the month, if you haven’t had your flu vaccine yet, go get it. You could spare yourself - and your family - a lot of misery. motor trader queensland

25

sport Smart winner

Q

ueensland Toyota driver Ryan Smart dominated the opening round of the Bosch Australian Rally Championship taking victory in the Quit Forest Rally after winning both heats in his Toyota Corolla Sportivo in the forests around Nannup in South Western WA. Smart, a 29 year old motor mechanic from Yandina on the Sunshine Coast, tackled the second day of the rally with the same fast and aggressive style as he displayed on day one to complete another flawless drive to win the heat by 29.1 seconds from Victorian Mitsubishi driver, Mark Pedder.

It was the first rally to be run under the new unrestricted formula for the championship with the leading turbo cars not running turbo restrictors with up to 400 horsepower.

Steven Shepheard led the heat after taking the first two tarmac stages around Busselton on Saturday evening but a turbocharger failure mid way through the final day’s stages forced the Mitsubishi Evo 10 driver out of the rally leaving Smart to battle Pedder and the Mitsubishi of Justin Dowell, also from Victoria.

Smart was fastest on four of the ten stages in the final round and was always in command in the dry and dusty forests around Nannup - 60 km inland from Busselton on the West Australian coast.

The victory for Smart, who

26

motor trader queensland

Queensland driver Ryan Smart charging to his first win in round one of the Bosch ARC at the wheel of his Toyota Corolla Sportivo Group N P.

“Once we were in the forests we knew we had the goods, my new co -driver John Allen has kept me level headed all weekend and we’re stoked at the win, it is really exciting and I am looking forward to Rally Queensland where we can really show some speed.” was runner up in the 2010 Australian Championship, means he takes the series lead to his home rally in the Sunshine Coast Hinterland in May. “It was a bit nerve wracking into the last one but we did it,” said an elated Smart.

“We’re over the moon, it was a lot of hard work

Mark Pedder slides his Mitsubishi Lancer Evo 9 to second place on the Quit Forest Rally

in the off season and we didn’t know what to expect coming into this event.

“I was disappointed on Friday evening being off the pace but once we were in the forests we knew we had the goods, my new co -driver John Allen has kept me level headed all weekend and we’re stoked at the win, it is really exciting and I am looking forward to Rally Queensland where we can really show some speed,” he added.

“I am very confident heading to our home event, being familiar with the roads and terrain so we’re very confident of a win and bagging some more championship points to extend our lead,” said Smart.

Mark Pedder tried hard to match the pace of Smart but was unable to consistently take time from the Toyota driver in the dry and challenging forests.

Pedder had his own battles

Stewart Reid comprehensively won the Classic section in his newly built Ford Escort RS1800 coming home 2 mins 27 secs in front of the Holden Commodore V8 of former Australian Rally Champion Barry Lowe.

Round two of the five round Bosch Australian Rally Championship will be the International Rally Of Queensland on May 13-15.

Rally winner Ryan Smart (centre left) and co driver John Allen (centre right) on the podium with Mark Pedder (far left) and Lee Tierney (2nd from left) with 3rd place Justin Dowel (2nd form right) and co driver Matt Lee with Bosch ARC mascot ‘Archie’

FINAL RESULTS 1. Ryan Smart/John Allen (QLD) Toyota Corolla Sportivo, 1hr 6min 12.8 sec 2. Mark Pedder/Lee Tierney (VIC) Mitsubishi Lancer Evo 9, + 29.1 secs 3. Justin Dowel/Matt Lee (VIC) Mitsubishi Lancer Evo 9, +32.0 secs 4. Alex Stone/Hanna Drury (WA) Subaru WRX STi, +2min5secs 5. Tom Wilde/Neralie Wilde (WA) Subaru WRX STi, +2min 36.1secs 6. Chris Anderson/Ben Searcy (WA) Subaru WRX STi, +3min 57.0secs

to fight, fending off the hard charging fellow Victorian Mitsubishi driver Justin Dowell. Despite nursing an ailing gearbox all rally, Dowell managed to close to within three seconds of Pedder, crossing the finishing line 2.9 seconds behind in third.

Local WA Subaru driver Alex Stone brought his car home in a fourth place ahead of fellow West Australian Subaru WRX drivers Tom Wilde in fifth and Chris Anderson in sixth.

Australia in Coffs Harbour in September.

The rally took its toll with eight cars forced out in the final day’s second heat including the Shepheard Mitsubishi and the Honda of Eli Evans that broke a drive shaft just three stages from home, while the local Subaru of Andrew McDonald exited with a spectacular rollover.

Interest lacking in Button’s auction offer

A

1978 Ferrari 512BB Berlinetta Boxer owned by British Formula One driver, Jenson Button, was unable to be sold by Bonhams at its sale of Collectors’ Motor Cars at the RAF Museum, Hendon, on 11th April.

The car, which was bought last year by Button, the then reigning Formula One World Champion, had attracted a pre-sale estimate of AUD$139,000 - $170,000, but it failed to attract enough interest amongst bidders to see Button part with the keys.

Due to a busy schedule as Britain’s number one Formula One

point-scorer, Button has decided to part with the car.

“I’ve had a great time driving the Boxer, however my F1 commitments will not enable me to enjoy the car to its fullest. It has had a thorough service that has addressed all the usual issues of an older Ferrari,” said Button.

The car, which Bonhams’ Tim Schofield (Head of Motor Cars) described as “a wonderful example with important provenance and exceptionally good value when compared to its nemesis the Lamborghini Miura”, was ordered new in December 1977 and was delivered to its first owner, Stafford Pemberton, in April 1978.

It has had $145,000 spent on it over the past 33 years, which includes a bodywork refurbishment and an all-new interior conducted by renowned marque specialist, Nick Cartwright, in the 1980s. It has recently undergone a major service at JD Classics, which was completed in September 2010.

With approximately 80,000 kilometres on the odometer, the car is in excellent original condition and comes finished in black with a light oatmeal leather interior.

Wilde took the Rallyschool. com.au Junior Australian Rally Challenge for four wheel drive cars while Victorian Will Orders took the two wheel drive honours in his Nissan Silvia, the pair qualifying for the Junior challenge shootout at Rally motor trader queensland

27

Insurance As You Grow If you were to visit a financial planner today, one of the first things they may ask you to do is to list the insurance you currently have and compare it with your income, your lifestyle, and the number of children or other dependants you support.

This is because one of the most important things you can do to plan wisely for your future is to have appropriate insurance, ‘just in case’.

MTAA Super members have access to insurance cover through the Fund’s group insurance policy with MetLife.

So how much do you need?

When you are thinking about how much insurance you need, there is no ‘one-size fits- all’ solution. A young, single, debt free person would have very different needs to a married‑with‑children person paying a mortgage and with

a long-term plan. However, we may transition from the ‘young single’ to the ‘mortgage belt’ without even considering changing our insurance. Has that been the case with you?

If you have never applied to increase your cover and you work for an employer that pays Superannuation Guarantee contributions into MTAA Super, your current cover is probably three units of death plus total and permanent disability (TPD) cover, which is the default cover provided to employersponsored members. If you’re a personal member, for example if you work for yourself or are a contractor, your default cover will be three units of death-only cover.

event of your death.

• Death and total and permanent disability cover also pays a benefit if you become permanently and totally disabled or the insurer agrees you have become terminally ill.

• Income protection cover may be one of the most neglected of insurance covers, but is worthwhile for all working people with families. It enables you to receive a monthly payment (based on how many units of cover you have taken) in the event of you becoming injured or seriously ill. This cover can help protect your family’s way of life while you recover from a serious illness or injury.

Is it time to apply for more cover?

Take a moment to watch the video on insurance

When your circumstances change, for example you’ve had a pay rise, taken on a home or car loan, married or started a family, you may want to increase your cover.

There are three ways to insure yourself: • Death-only cover pays a lump-sum benefit in the

To learn more about insurance, visit the MTAA Super website at www. mtaasuper.com.au/ membereducation/insurance/, to watch the video on insurance and to download the MTAA Super Insurance Handbook. Alternatively, you can call us on 1300 362 415

to speak to a member of the Financial Education and Advice Team (FEAT).

Match your insurance cover from another fund If you currently have insurance with another fund and want to match it by switching to MTAA Super, we can talk to you about applying to match your current insurance cover. Matching your cover is generally a very easy thing to apply for, however we suggest that you do not cancel your existing insurance cover until you have written confirmation from MTAA Super that your new insurance cover has been accepted.

If you want to speak to a member of the Financial Education and Advice Team (FEAT) about matching your insurance cover, call MTAA Super on 1300 362 415.

Or you can download the ‘Matching insurance cover’ form from the website at www. mtaasuper.com.au/forms/ members/memberformsmtaa-super/ and complete the form before returning it to MTAA Super.

To find out more about MTAA Super, you can contact your local representative: • Peter 0419 655 254 • Diedre 0407 732 660 • Lynne 0409 995 868 Email: mtaasuper@mtaasuper.com.au Phone: 1300 362 415 Visit: www.mtaasuper.com.au.

Lynne Wilkinson

Diedre Bell

Peter Jones

This document is issued by the Motor Trades Association of Australia Superannuation Fund Pty Limited (ABN 14 008 650 628, AFSL 238 718) of Level 3, 39 This information has been prepared by the Motor Trades Association of Australia Superannuation Fund Pty Ltd (ABN 14 008 650 628,AFSL 238718, FSEL0001069), an Approved Trustee company engaged Brisbane Avenue Barton ACT 2600, Trustee of the MTAA Superannuation Fund (ABN 74 559 365 913, SPIN MTA0100AU). Motor Trades Association of Australia solely in managing MTAA Super for the benefit of its members. All care has been taken to ensure that the information contained in this article is correct at the time of this publication, however, neither the Superannuation Limited hasresponsibility ownershipfor interests Super Holdings Pty ME Bank Pty LtdSuper and(ABN Superpartners Ltd. Trustee of MTAA SuperFund nor itsPty advisors accept any errorinorIndustry misprint, nor for anyone acting onLtd, this information.

MTAA 74559365913,Pty RSER10004373) The information provided is of a general nature and does not take into account your specific financial needs or personal situation. You should assess your financial position and personal objectives before making any decision based on this information. We also recommend that you seek advice from a licensed financial adviser.

The MTAA Super Product Disclosure Statement (PDS), an important document containing all the information you need to make a decision about MTAA Super, can be obtained by calling MTAA Super on 1300 362 415. You should consider the PDS in making a decision.

Does your super fund tick all the right boxes?

Low fees No commissions Run only to benefit members

MTAA Super is the Industry SuperFund for the Motor Industry and anyone can join.

For more information visit www.mtaasuper.com.au Motor Trades Association of Australia Superannuation Fund Pty Ltd (ABN 14 008 650 628, AFSL 238 718) is the Trustee of MTAA Superannuation Fund (ABN 74 559 365 913). You should consider whether or not MTAA Super is appropriate for you. The MTAA Super Product Disclosure Statement (PDS) can be obtained by calling us on 1300 362 415. You should consider the PDS in making a decision.

automobile news LEAFs have landed Zero Emission battery-powered Nissan LEAF hatchbacks have arrived Melbourne, the first to arrive in Australia. These family-sized, five door passenger vehicles are undergoing field tests in the hands of Nissan engineers, acquiring real world driving data, as part of the Victorian government’s five-year electric vehicle trial. The two Ocean Blue examples of the 2011 European Car of the Year offer a good indication of the regular Australian market vehicles that are expected to be available for sale here within a year.

Fast, efficient and a whole lot more The Audi A7 is being offered with two V6 engines in Australia. The first is a powerful yet incredibly efficient V6 TDI engine, which produces 180kW and 500Nm, catapulting the A7 Sportback from 0-100km/h in just 6.5 seconds, yet consuming just 6.0 litres per 100km. The second V6 is the 3.0 TFSI petrol engine. Employing supercharging technology, this world-class engine develops 220kW and 440Nm, endowing the A7 Sportback with a 0-100km/h sprint time of only 5.6 seconds – firmly in sports car territory. Audi A7 Sportback Manufacturers List Price: (MLP excludes dealer delivery and government statutory charges) Audi A7 Sportback 3.0 TDI quattro at $142,750; Audi A7 Sportback 3.0 TFSI quattro at $147,800

Feedback essential The Prius c Concept, unveiled at this year’s Detroit auto show, provides a surprisingly spacious interior in a compact package. The car was inspired for a future small hybrid with an entry price point and superior fuel economy.

Toyota Australia will seek local consumer reactions to a Prius-based city car during the Australian International Motor Show in July. Feedback from show patrons will help determine whether the production version of the Prius c Concept is headed to Australia. The production car is due to be launched in the US during the first half of 2012.

30

motor trader queensland

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KEV2 in the electric mix Ssangyong has reiterated its future strategy for environmentally friendly electric vehicles by unveiling a new electric prototype vehicle at the recent Seoul Motor Show.

The KEV2 is a pure electric concept model based on the recently launched Korando, combining Ssangyong’s specialized SUV design DNA, and the future identity of electric SUVs. Power comes from a 120kW electric motor, which provides a maximum driving range of 180km from the 35kWh lithium-ion battery pack, with a top speed of 150km/h.

KEV2 tips the scales at 1750kg overall weight.

Ford Ranger: less drag The same Formula One techniques – and engineers – that make race cars go faster are now helping the all-new Ford Ranger slice through the air cleaner. Their work is helping ensure the compact pickup delivers one of the best fuel economy figures in the segment. The biggest drag reduction comes from a front air dam, which limits the amount of flow that goes under the vehicle and sends more air over and around the vehicle body. This chin spoiler effectively cuts the drag by about 7% while improving vehicle stability and helping to cool the engine.

Veloster launch by year end Hyundai Motor Company Australia has announced Veloster will be launched in late 2011 and will be powered by a new 1.6-litre direct-injected four-cylinder engine, mated to either a six-speed manual transmission or Hyundai’s first dual-clutch six-speed automatic transmission. Australian specification Velosters will be fitted with the highest standards of safety equipment, including a new sophisticated Vehicle Stability Management (VSM) system and full complement of airbags. Pricing and specification will be available closer to launch 32

motor trader queensland

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Self-Confe PASSION:

FBT

Fringe Benefits Tips FRinge BeneFiTs TAx (FBT) The Australian Taxation Office (ATO) has specifically identified FBT as an area around which it intends to increase its level of compliance activity.

Considering this, and with the next deadline for FBT return lodgement looming (21 May 2011), it’s timely to consider some tips to ensure you get the most value out of the FBT process.

Mark Ward, Partner Ph: 07 3237 5744

Darren Crothers, Partner Ph: 07 3237 5990

Top FBT tips • When determining car benefits do not assume that if the vehicle does not meet the definition of a “car” that it will be exempt for FBT purposes • Ensure you use GST inclusive amounts when calculating the taxable value • Remit 1/11th of employee contributions as GST • Keep accurate log books, odometer readings, and days not available records

• Consider the minor benefits exemption for benefits that are less than $300 including GST and provided infrequently • Record reportable fringe benefits on an employee’s payment summaries where the taxable value of the benefits provided for a particular employee are $2,000 or greater • Substantiation, substantiation, substantiation!

BDO Automotive FBT Reporting Package on CD We have developed an FBT reporting package tailored to the motor trades.

Damian Wright, Partner Ph: 07 3237 5750

Randall Bryson, Associate Director Ph: 07 3237 5792

The reporting package, available on CD, will help you: • Calculate the FBT liability of all benefits • Allocates your reportable fringe benefit amounts to employees • Transfer numbers with ease, as the summary page mirrors the paper copy of the FBT return • Ensure your compliance from a substantiation perspective.

If you have any questions in regard to your FBT compliance or the FBT Reporting Package, please contact either Mark Ward, Darren Crothers, Damian Wright or Randall Bryson from the BDO Automotive team on 07 3237 5999.

Distinctively different – it’s how we see you www.bdo.com.au

Audit • tAx • Advisory