SDA News 2014 Spring

SDANEWS OFFICIAL MAGAZINE OF THE SHOP, DISTRIBUTIVE AND ALLIED EMPLOYEES’ ASSOCIATION, NEW SOUTH WALES BRANCH I SPRING 2014 I RRP $8.00

WORKING TO WIN!

SHOP, DISTRIBUTIVE AND ALLIED EMPLOYEES’ ASSOCIATION, NSW BRANCH

WWW.SDANSW.ORG.AU I PHONE 131 SDA STREET ADDRESS: POSTAL ADDRESS: E-MAIL: SDA NEWS EDITOR:

Level 3, 8 Quay Street, Sydney NSW 2000 PO Box K230, Haymarket NSW 1240 secretary@sdansw.asn.au

Bernie Smith, Level 3, 8 Quay Street, Sydney NSW 2000 Please address all correspondence to “The Secretary”.

UNION OFFICERS: SECRETARY: Bernie Smith ASSISTANT SECRETARY: Robert Tonkli PRESIDENT: Greg Donnelly ORGANISERS METROPOLITAN: Lena Adam, Mark Gronowski, Anthony Maiatico, Anthony Attard, Jakub Werstak, Alex Velickovic, Sarah Moody, Caroline Israel, Chris Stefanovski, Angela Ghanime, Mina Papadopoulos, Rose Ghabache, Tina Callaghan, Joel Tynan, Adriana Moore, Karl San Pedro, Hugh McLaurin, Stephen Noone, Anthony Day, Joanne Jammal, Chris Khalil, Whitney Rizk, Alex del Rosario.

REGIONAL: Lower South Coast, Southern Highlands & Canberra: Athol Williams and Julie Myers  phone 6273 2300 Riverina (Wagga/Albury): Struan Timms  phone 6921 8820 Western NSW (Orange/Dubbo): Louise Buesnell and Loretta Turner (part-time Organiser)  phone 6362 1965 Far North Coast (Ballina/Tweed): Trevor McCosker  phone 6686 4192 Wollongong & Illawarra: Vera Cavanagh and Di Dixon (part-time Organiser)  phone 4228 3611 Port Macquarie and Tamworth Region: Paul Mitchell  phone 6583 8837 Coffs Harbour and Armidale Region: Mariusz Werstak and Bridget Sheridan (casual Organiser)  phone 6650 9950 WAREHOUSING AND MANUFACTURING: Joseph Bourke, John Paul Sialafau SPECIALISTS INDUSTRIAL OFFICERS: Phil Walker, Bernard Govind, Mitchell Worsley, Aliscia Di Mauro WORKERS’ COMPENSATION AND OHS OFFICERS: Michael Babic, Jane Lui SENIOR OPERATIONS OFFICER: Felicity Smithson OPERATIONS OFFICER: Paul Hangan COMMUNICATIONS OFFICERS: Michael Walker, Tim Leong INFORMATION OFFICERS: Corrine Boyle, Elizabeth Cody, David Uzzell, Georgina Psillis, Renee Jaajaa, Monica Rose EDUCATION OFFICER: Philippe LeCompte

PAGE 2 l SPRING 2014 l SDA NEWS

Change Over Dear Members, On 24 August 2014, I stepped down from the position of NSW Branch Secretary/Treasurer and commenced duties with the SDA National Office. The Assistant Secretary, Bernie Smith, became the new Branch Secretary/Treasurer on 25 August.

Bernie was unanimously endorsed in March this year to take on the role of Branch Secretary by some 1,000 Delegates who attended Delegates meetings at ten locations across NSW and the ACT. He has now been formally appointed to this position by the SDA NSW Branch Council.

A Team Effort Just under 27 years ago, I commenced duties with the NSW Branch as an Organiser and since that time have served the Branch as an Organiser, Workers’ Compensation Officer, Industrial Officer, Senior Industrial Officer, Assistant Secretary and – since 2005 – as Branch Secretary/Treasurer.

In all these roles, I have sought to represent the interests of our members to the best of my abilities. However, my contribution has always been as part of a team and it is through our combined efforts that the SDA NSW Branch has been able to deliver meaningful outcomes for its members.

The collective efforts of the NSW Branch has seen it play a critical role in advancing wages and conditions in the industries we cover, and in Australia generally as an active participant in the broader trade union and labour movement. The collective achievements over the decades have been monumental and include: 

Annual leave (1944);



Long service leave (1955);



Equal pay for women (1973);



Four weeks’ annual leave (1975);



Compulsory superannuation (1989/91);



Retention of the Award system/defeat of WorkChoices (2007);



Paid maternity leave (2010);



Additional public holidays when Christmas and New Year fall on a weekend (2010 in NSW and 2014 in the ACT); and



Easter Sunday being made a public holiday (NSW 2010).

These achievements, along with the continuous improvements in wages and conditions are a credit to the NSW Branch, the SDA nationally and the entire trade union movement in Australia.

Debt of Gra tude All of us owe a debt of gratitude to those who came before us and we also owe it to future members and citizens to continue to vigorously advocate on behalf of retail, fast food, warehouse and pharmaceutical employees in a modern Australian economy.

I want to acknowledge the tremendous dedication and efforts of the two previous Branch Secretaries that I had the privilege of serving – Joe de Bruyn and Greg Donnelly. Both made an enormous contribution to the success of the NSW Branch and provided outstanding examples for the Officials, Delegates and members who worked with them.

Bright Future I also want to specifically thank Bernie Smith for his support and outstanding contribution as Assistant Secretary since 2005. Bernie’s loyalty, intelligence and passion to serve our members has been priceless in my time as Secretary, and it is because of these qualities that I know Bernie Smith will be a great Branch Secretary. It has been an honour to work so closely with a person of such integrity and capacity.

These are challenging times for working people and their families, but the SDA will continue to provide a strong voice for greater fairness in the Australian economy and for the dignity of each individual member.

The important work of the Branch relies on the key elements of membership, active Delegates, dedicated Officials and leadership. Again, I thank you for your contribution as an SDA member and for your support of the Union’s ongoing objective to build better working lives for SDA members in NSW. I wish all members and the new Branch leadership every success in the years ahead.

Gerard Dwyer, SDA National President

SDA NEWS I SPRING 2014 I PAGE 3

FOR OVER 100,000 NSW AND ACT RETAIL WORKERS

In the past three months, over 100,000 NSW and ACT retail workers received pay rises fought for them by their Union.

SDA NEGOTIATED PAY RISES FROM JUNE TO AUGUST 2014

That’s over $25 million going to hard-working employees this year to spend in our economy to help it grow.

At the SDA, we understand that a strong economy is underpinned by an expanding middle class, not a shrinking one. Wages must keep up as the cost of living rises, and the pressure on working families grows. That’s why the SDA works hard to make sure members get fair and decent wage increases.

BE PART OF A UNION THAT WORKS FOR RETAIL WAGES TO GO UP. BECOME AN SDA MEMBER TODAY.

sdansw.org.au

EMPLOYER

MONTH

WEEKLY INCREASE

Coles Liquor Group

June

$10.94

Coles Supermarkets

July

$10.80

Best and Less

July

$21.56

Bunnings

July

$24.75

BWS

July

$11.32

Coles Express

July

$27.21

Dan Murphy’s

July

$11.28

McDonald’s

July

$25.00

Sanity Super Retail Group (Supercheap Auto, BCF, Gold Cross Cycles, Ray’s Outdoors, Rebel Sport and Amart) Speciality Fashion Group (Katies, Millers, Cross Roads, Autograph, City Chic)

July

$21.37

July

$22.05

July

$10.00

Woolworths

July

$11.76

Woolworths Petrol

July

$19.05

KFC

July

$21.40

Freedom Retail

July

$22.37

Betts

July

$28.38

Bras N Things

July

$22.11

Lovisa

July

$22.11

Noni B

July

$20.59

Big W

August

$11.15

David Jones

August

$12.00

Target

August

$10.60

Myer

August

$10.00

Together, We Work To Win Firstly, thank you Gerard Dwyer for your strong leadership of the Union in NSW. From the Your Rights at Work campaign to fighting for work/life balance in the Take The Time campaign, Gerard showed us that together we can work to win.

By Bernie Smith, I know members and Delegates across Branch Secretary the Branch wish Gerard well in his new national SDA role. I am also looking forward to continuing to work closely with Gerard in his new role.

I would like to thank all Delegates from across NSW and ACT for your unanimous support earlier this year when you voted at meetings throughout the State and Territory to endorse me as the new SDA NSW Secretary-Treasurer. Delegates are the backbone of our Union, and your support means so much to me.

It seems a long way from when at 15 I started working at Woolies Mawson 1137, where I joined the SDA and later become a Delegate.

Yet in many ways we still face the same challenges as when I started on the shop floor.

I believe the top three issues for retail, fast food and warehouse workers are: 

work you can live off



work that respects family time



work that is safe and treats you with respect Work you can live off Securing wage rises is the Union’s number one priority. The more members in the SDA at your workplace, the stronger our bargaining position is.

Across July and August, thousands and thousands of retail, fast food and warehouse workers got a pay rise fought for by your Union, the SDA (see opposite). Fighting for better pay is never finished and we are currently bargaining for better pay, or preparing for bargaining by surveying members in many companies including Coles Supermarkets and Woolworths Supermarkets.

We are also fighting to protect penalty rates from attacks by some retail employer associations and some Coalition MPs. We will campaign hard to protect penalty rates for people working unsociable hours like Sundays and public holidays.

Work that respects family me Whether it’s having a stable roster or the right to refuse to work on public holidays, SDA members deserve rights that guarantee some family time in your busy lives. It’s only fair. That is what the Take The Time campaign is all about.

SDA members in the ACT had a big win recently when the ACT Government modernised public holidays legislation to declare Christmas Day, Boxing Day and New Year’s Day a public holiday if they fall on a weekend. This is a great result for all weekend workers (see page 6). Thank you to all Delegates who wrote to the Minister, attended our meeting or went to the Legislative Assembly to show your support. Easter Sunday as a public holiday in the ACT is next.

The campaign continues.

In NSW, the fight to protect our trading laws has not let up either, with a large group of retail and warehouse workers presenting John Robertson, Leader of the Opposition, with over 10,000 signatures on a petition calling on the Coalition Government to leave trading laws alone and let our members take the time with family, friends and community on these special days.

Work that is safe Safety is always amongst our members’ top concerns. Recently, we held the first nationally co-ordinated SDA Safety Week with the theme “Safety Demands Action”.

Across NSW and the ACT, Organisers and Delegates took the safety chat onto the shop floor to ask members for their input. They conducted over 500 safety audits and over 2,000 safety surveys (see page 25).

Our next priority is to educate our members, and many companies, that if you are injured at work you have a right to be treated by a doctor of your choice. Don’t feel pressured to go to the company doctor. It’s your choice – you can choose your own doctor for your own private appointment.

Don’t Forget On the way to and from work, SDA NSW members are covered by our renewed Journey Claim Insurance. You have to be in the SDA to have this protection. If you’re not in the SDA, you’re not covered.

Much to do There is much to do, but together with strong membership and Delegates in all workplaces, we will continue to fight for work you can live off, work that respects family time and work that is safer. SDA members deserve nothing less.

SDA NEWS I SPRING 2014 I PAGE 5

Christmas/New Year Win in the ACT commitments on these special days, they are fairly compensated with public holiday penalty rates on the day.

The SDA congratulates the ACT ALP Government, and Minister Gentleman for

By Robert Tonkli, Assistant Secretary

It’s encouraging to see our politicians fight

have the freedom to spend Christmas

for what they know is fair.

Day, Boxing Day and New Year’s Day with

More to be done

day of the week the holidays fall on, after the ACT Government passed legislation

PAGE 6 l SPRING 2014 l SDA NEWS

holidays in the ACT.

Weekend workers in the ACT will finally

family and friends, regardless of which

introducing this Bill to modernise public

modernising the public holidays.

The status of Easter Sunday remains the next issue to address.

Unlike NSW, it is not a declared public holiday in the ACT. This means weekend

The legislation means that public holidays

workers don’t have public holiday

are now automatically declared for years

protections or access to public holiday

when Christmas, Boxing Day and New

penalty rates.

Year’s Day fall on either a Saturday or

The SDA welcomes Minister Gentleman’s

Sunday – previously, workers couldn’t plan

comment in the Legislative Assembly on

their time off until the Government formally

the need for Easter Sunday to be a public

declared the holidays each year.

holiday in the near future.

In the past, we have seen workers unable

We have a petition addressed to the ACT

to exercise their right to reasonably refuse

Assembly asking them to bring this day

to work on important days such as Boxing

into line with Christmas, Boxing Day and

Day or New Year’s Day when they fell on

New Year’s Day as it is in neighbouring

a weekend, because they were not official

towns such as Queanbeyan.

public holidays.

You can download a copy at:

Win for weekend workers in the ACT

http://www.sdansw.org.au/wp-content/

This change is important to ensure that if

Ask your friends to add their support and

weekend workers miss out on spending

then return it to the SDA so we can keep

time with their loved ones due to work

up the pressure.

uploads/2014/08/SDANSW_signup_ACT_ PRINT.pdf

Penalty Rate Cuts Would Hit Hard That’s an average loss for a retail worker of about 4.6% to 16.5% of their take home pay.

Cutting penalty rates would also have a harmful ripple effect in regional and rural communities.

By Bernie Smith, Branch Secretary

The money not paid to workers would be retained by the business head office; if it is not a local business that means the money will leave the local community.

Local economies across rural NSW would be up to $111 million worse off each year if penalty rates for regional retail workers were cut, new research has found.

It will be discretionary retail spending that will be among the first to feel the pinch as people spend less in their local community.

Penalty rates compensate people for working at unsociable times late at night, on weekends or on public holidays.

The Economic Impact of Penalty Rate Cuts on Rural NSW study conducted by the McKell Institute found that if penalty rates for retail workers were cut – entirely or partially – rural retail workers would lose between $89 million and $315 million each year in take home pay.

About one in eight rural workers are in retail so if they tighten their belts, the flow-on will hit local businesses and economies hard.

Whichever way you look at it the families, communities and local economies of regional and rural NSW will lose if retail penalty rates are cut.

Retail workers should be given a fair go and retain penalty rates for working long hours, weekends and public holidays.

Over the last several years, the SDA has been fighting hard against repeated attacks by employer groups to reduce or remove penalty rates.

The Union will continue to defend this blatant attack on members’ pay packets and their way of life.

Stay up to date on our work/life balance campaign site at www.takethetime.org.au.

Christmas just isn’t Christmas without Boxing Day In August, Santa was joined by SDA NSW Secretary Bernie Smith and a delegation of retail and warehouse workers who presented Opposition Leader John Robertson with a petition of over ten thousand signatures calling on Parliament to protect the last four and a half public holidays when trading is restricted.

With Christmas drawing near, workers - including Santa - are becoming increasingly worried about the Liberal State Government’s refusal to rule out extending the number of retail trading days across the State.

Retail and warehouse workers work hard in the lead up to Christmas. You might have to travel long distances to see family. Maybe you spend Christmas Day at Mum’s, and Boxing Day at Dad’s. With today’s busy schedules, having both days to properly celebrate, relax and spend time together is more important than ever.

We can already shop 360½ days a year. We don’t need to rob families of their time together in order to keep the marketing departments of a few vocal businesses happy.

We’re calling on our MPs to guarantee no further changes to the existing retail trading laws in NSW. Christmas just isn’t Christmas without Boxing Day.

SCAN THIS IMAGE WITH YOUR QR-ENABLED SMARTPHONE TO FIND OUT MORE

OR USE YOUR WEB BROWSER TO GO TO http://bit.ly/1rCTNVe

SDA NEWS I SPRING 2014 I PAGE 7

Your Right to Request a Flexible Work Arran If an employee is returning to work after taking parental or adoption leave, they may request to return to work on a parttime basis to help them care for the child.

By Corrine Boyle, Information Officer The National Employment Standards (NES) in the Fair Work Act 2009 (the Act) provide rights for SDA members to request flexible working arrangements.

A number of SDA-negotiated enterprise agreements also contain provisions regarding flexible work arrangements.

To be eligible to make a request for flexible work arrangements under the Act, an employee (including a casual employee) must have completed at least 12 months of continuous service with their employer immediately before making the request.

Employees should talk to their employer about a change in work arrangements even if they are not eligible to make a request for a flexible work arrangement under the Act.

What is a flexible work arrangement?

A flexible work arrangement may include (but is not limited to) changes to starting/ finishing times, changes to days on which work is performed, a reduction in hours worked, job sharing arrangements or changes to the location of work.

Company Response Employers must give employees a written response to the request within 21 days, stating whether they grant or refuse the request.

If the employer refuses the request, the written response must include the reasons for the refusal. Employers may refuse the request only on reasonable business grounds.

Reasonable business grounds for refusing a request for flexible working arrangements include but are not limited to: 

the arrangements requested by the employee would be too costly for the employer;



there is no capacity to change the working arrangements of other employees to accommodate the new working arrangements requested by the employee;



it would be impractical to change the working arrangements of other employees, or recruit new employees, to accommodate the new working arrangements requested by the employee;



the new working arrangements requested by the employee would be likely to result in significant loss of efficiency or productivity;



the new working arrangements requested by the employee would be likely to have a significant negative impact on customer service.

Who is eligible to make a request?

SDA members may request a change in their working arrangements from their employer if they require flexibility because they:  are the parent or have responsibility for the care of a child who is of school age or younger;  are a carer (within the meaning of the Carer Recognition Act 2010);  have a disability;  are 55 or older;  are experiencing violence from a member of their family; or  provide care or support to a member of their immediate family or household, who requires care or support because they are experiencing violence from their family.

PAGE 8 l SPRING 2014 l SDA NEWS

How do I make a request?

The request must be made in writing and set out details of the change sought and reasons for the change.

The Union will assist SDA members in drafting a written request for flexible work arrangements.

Should you wish to make a request for a flexible work arrangement and would like the SDA to assist you, please contact the SDA Information Centre on 131 SDA (that’s 131 732).

Role of the Union Your Union, the SDA, has been successful in assisting many SDA members to obtain flexible work arrangements.

angement The Union can assist you in drafting a written request for a flexible work arrangement as well as engage in discussions and negotiate with the company to try to come to an arrangement that balances both the needs of the SDA member and the employer.

One example Recently, the Union assisted Suzie,* an SDA member employed by a discount department store to obtain a change to both her work location and roster.

The flexible work arrangement enables her to take better care of her young son who suffers from respiratory issues.

Suzie’s previous request for a transfer had been knocked back by the company. The Union helped her to put the request in writing, and then negotiated on her behalf with the company to find a positive outcome.

Suzie now works at a store that is within a 15 minute walk from her home, as opposed to one and half hours on public transport. She also works a roster that assists with her childcare arrangements.

A win/win situaĆ&#x;on Flexible work arrangements can be a win/win for both employees and employers.

If you are an SDA member and would like further advice and assistance in relation to flexible work arrangements, please contact the SDA on 131 SDA (131 732). *Name has been changed for privacy reasons

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SDA NEWS I SPRING 2014 I PAGE 5

P c D 2014 l sp w F a Fas Đž!

Picnic Day is an additional public holiday which full-time and part-time employees may be entitled to without loss of pay.

â&#x20AC;&#x2122;s Đž a a?

If you are entitled to Picnic Day as a holiday, you cannot be forced to work on this day.

As usual, weâ&#x20AC;&#x2122;re

For exact details of your entitlement on the day, check your Enterprise Agreement or Award.

areas.

Picnic Day for NSW shop assistants falls on the first Tuesday in November each year which, of course, is also Melbourne Cup Day. This year, NSW shop assistants Picnic Day falls on Tuesday 4 November.

hosting events in Sydney and regional

H rsâ&#x20AC;&#x201C; c se Đž 20 O r!

For information on functions in your region, or in Sydney, ď ľ see your Store Delegate, ď ľ phone the SDA Information Centre on

131 SDA (thatâ&#x20AC;&#x2122;s 131 732), or ď ľ phone your regional SDA office (see the

back of your current membership card for contact details).

Receiving the Rolls Royce Treatment Simply being in the Union means you have access to professional representation in workplace disputes.

The SDA assists members daily with workplace grievances such as:

By Jakub Werstak, Organiser Recently I assisted a member in my area who had been having issues getting her correct sick leave paid. The member, let’s call her Mary, had been trying for over two years to resolve an issue with unpaid sick and annual leave.

Mary went on leave in 2011 and found, on her return, that her annual leave balance was several hundred hours in the negative and her sick leave balance 269 hours in negative. She raised the issue with her employer in February 2012 and was told that it would be fixed. She persisted patiently without making any headway until finally losing patience and contacting the Union in May this year.

Mary was referred to me as I look after the part of the city where she works. I already had an appointment to see her store manager about another matter so I was able to discuss it with him very quickly and get it sorted out. Mary’s annual leave and sick leave balances were corrected by the time she received her next payslip.

She was very grateful to receive the SDA’s assistance after hanging in limbo for all that time.

No need to DIY We can learn a lesson from Mary’s experience: Union members should never feel like they have to ‘go it alone’ with an issue at work.



Incorrect pay or not getting allowances



Rosters that clash with family commitments



Being asked to work through breaks or to work back without pay

Sometimes members can solve these matters themselves, once they have advice from the SDA on where they stand, or by the member with his or her SDA Delegate.

If need be, an SDA Organiser like myself can become involved to help, or in especially complex matters the member is referred to one of the Union’s specialist Industrial Officers.

If you are not in the SDA, you are by yourself with questions about pay, work hours and other entitlements.

Mary found out what can often happen when you go it alone: diversions and delays.

Her issue was a pretty straightforward one, too – imagine if it was complicated.

Employees without assistance really don’t have a great chance of receiving a fair go.

Grievances: Geƫng past that first hurdle Enterprise Agreements negotiated by the SDA contain a grievance procedure, as do our Modern Awards.

This means that employees have a legally protected right to raise issues in the workplace.

Where this goes astray is when a member lodges a grievance with a lower-level manager who gets caught up with other work and does not act on it. It can require a little courage to continue to push the issue, and that is where Mary in the story on this page saw the benefit of involving the Union.

Sometimes this ‘resistance’ can take more subtle forms.

Beware of being brushed-off.

Grievance procedures are not overly complicated and they are there to get matters resolved quickly.

If that’s not happening in a timely fashion, it’s time to take things to the next level.

SDA NEWS I SPRING 2014 I PAGE 11

HOYTS BLACK CARD HOYTS is offering SDA members the opportunity to WIN a HOYTS Black Card, the most exclusive accessory for movie-lovers.

The HOYTS BLACK CARD is the ultimate accessory for movie-lovers, entitling the Cardholder access to one complimentary ticket to each of five different scheduled general admission movie sessions each day within the 12-month validity period of the card.

To go into the draw to win, all you need to do is purchase any 2 x HOYTS CineVouchers through SDA either online, over the phone or in person- from September 22nd through until November 21st 2014.

Conditions apply. Open to all Shop, Distributive & Allied Employees’ Association members, New South Wales Branch. Starts 22/09/2014 & Ends 11.59pm AEST 21/11/2014. Draw at 10.30am AEST on the 25/11/14 at 680 George St Sydney NSW 2000. Total prize pool is $1000. Promoter is The Hoyts Corporation Pty Ltd (ABN 29 988 911 859), Level 50, 680 George St, Sydney NSW 2000. NSW Permit No. LTPM/14/00699, ACT Permit No. TP14/02207. *Prize is 1 HOYTS BLACKCARD. Any ancillary costs associated with redeeming the HOYTS BLACKCARD are not included. Any unused balance of the HOYTS BLACKCARD will not be awarded as cash. Redemption of the HOYTS BLACKCARD is subject to any terms and conditions of the issuer including those specified on the HOYTS BLACKCARD.

SDA Members can...

Go to the Movies at Discounted Prices!

Everyone loves going to the movies! And thanks to the SDA’s Discount Movie Tickets scheme, financial members of the Union can go to the movies for as little as $10.50 for adults and $8.00 for children* at these cinemas: + Hoyts and Palace + Events, Village and Birch Carroll & Coyle + Reading + IMAX Darling Harbour + Dendy + Chauvel + Independent cinemas in Ballina, Batemans Bay, Byron Bay, Glenbrook, Griffith, Inverell, Manly, Merimbula, Nambucca Heads, Narooma, Orange, Port Macquarie, Randwick, Tamworth, Taree, Tuggeranong, Tuncurry, Ulladulla, Wagga Wagga, Warrawong, and Yamba.

To Purchase your SDA Movie Tickets... + order online – www.sdansw.org.au, + phone the SDA on 131 SDA (131 732) with your credit card details, + purchase them in person at the SDA Sydney Office between 8.30am

and 4.30pm Monday to Saturday (except on public holidays).

Ticket Prices* + Events**, Village and Birch Carroll & Coyle: Adult $10.50^/Child $8.00^ + Hoyts**: Adult $10.50/Child $9.00 + Reading: Adult $11.00/Child $11.00 + IMAX: Adult $12.75/Child $12.75 + Dendy, Chauvel, Majestic, and selected Independent cinemas:

Adult $10.75/Child $10.75 Please note: All tickets are issued with an expiry date. *Prices are subject to change without notice. +Children’s tickets only available at Hoyts (valid for children aged 4-15 years), Village, Events, and Birch Carroll & Coyle Cinemas (valid for children aged 4-14 years). **Events (formerly Greater Union) and Hoyts vouchers are not valid for sessions after Saturdays at 5pm, VMAX, Gold Class, 3D/Real D, group bookings, movie marathons and special events or in conjunction with any other offer or promotion. ^From 1 July 2014

immediately prior to the termination, and had over 23 years of service with the company.

While waiting for the unfair dismissal case, we continued discussions with the company.

Rhonda began working at Myer Sydney City in June 1990. She immediately joined the SDA because she wanted the reassurance she would be protected at work.

Over the years, Rhonda has not needed to call the SDA about work issues all that much, but that suddenly and unexpectedly changed for Rhonda.

Rhonda was devastated by the news.

She immediately contacted the SDA. The SDA took immediate steps to engage the company and prepare unfair dismissal proceedings before the Fair Work Commission.

The SDA continued to have discussions with the company, arguing that Rhonda’s termination was unfair in that she had been asking for shifts over the three-month period

Rhonda was delighted when she received the news that she would be returning to work. She has now returned to work and is making a great contribution and continues to be a proud member of the SDA. After going through a difficult experience, Rhonda said, “You must be in the Union – it’s so worth it.

“One day you will run into trouble and the Union will be there to look after you; to help you.”

Choosing the right home loan can be a little daunting, plus if you’re a part time or casual employee it can be difficult to be approved for a home loan. ME Bank may be able to help you.

If you can supply us with the following, in addition to our standard home loan application requirements, we would be pleased to consider an application from you.

PART TIME EMPLOYMENT.

࠮ Proof of 6 months in your current job; or ࠮ Proof of 12 months in the same field/ line of employment

CASUAL EMPLOYMENT.

࠮ Proof of 12 months in the same field/line of employment If you’d like to talk about home loan options, one of our Mobile Banking Managers can visit you at home or work at a time convenient to you.

ENDING IAN L AW AL A TR

At the same time, I heard of another casual employee, Perla, who worked at the same store. She received a letter terminating her employment.

Unfortunately for Perla, she was not able to get her job back. Why was this?

The answer is simple: Rhonda was a member of the SDA and Perla wasn’t.

We can only help people if they’re members, so make sure you and your workmates are members of the SDA – it certainly pays to belong, as Rhonda found out.

BE

S RD

On 31 March this year she received a letter from the company. The letter stated that as she was a casual employee and had not worked for three months, she had been terminated from her employment.

She was asked to return her badge, discount card and uniform.

Following these discussions with the SDA, the company agreed to reinstate Rhonda. Shortly after that, Rhonda returned to work.

WE CAN HELP YOU FIND A HOME LOAN TO SUIT YOUR NEEDS.

AU S

By Bernard Govind, Industrial Officer

FINDING A HOME LOAN JUST GOT EASIER.

ST

WINNER 2014 CUS

TOMER EXPE

C

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Why Rhonda Got Her Job Back, and Perla Didn’t

N RIE

2014 Australian Lending Awards, Best Customer Experience.

2013 Australian Home Loan Awards, Lender of the Year.

FIND OUT MORE TODAY. CALL 13 15 63 OR VISIT MEBANK.COM.AU/HOMELOANS

Fees and charges apply. Terms and conditions available on request.

Applications are subject to credit approval. Members Equity Bank Limited ABN 56 070 887 679. Australian Credit Licence 229500.

213729/0714

SDA NEWS I SPRING 2014 I PAGE 13

Taking the Time for Othe The Clock is Ticking There’s nothing more precious than time. Most of us feel like we don’t have enough hours in the day, but spare a thought for women diagnosed with breast cancer. For them, time takes on a whole new meaning.

When Tracey was diagnosed with breast cancer in 2010, she opted for a double mastectomy and reconstruction. Sadly, this didn’t stop her cancer from spreading throughout her body. This means Tracey now has only a limited time remaining to spend with her family – but she’s decided to live it to the fullest. “When my cancer returned and continued to spread, the news hit me like a tonne of bricks,” says Tracey. “But I didn’t fall to pieces; instead I made a bucket list – including skydiving.”

With the loving support of her family, Tracey’s already ticked off three major items on her list, and she’s determined to outlive her doctor’s prognosis. “I believe that only research can help me do this,” says Tracey. “Only research can find a cure.”

Time is also a precious commodity for breast cancer researchers. Associate Professor Robin Anderson has been receiving vital research grants from NBCF to fund her important studies into advanced breast cancer since 2007. These grants, and other research funding, have enabled her to keep her research going.

But the work is far from over. Every minute NBCF-funded researchers spend in a lab, or investigating the needs of people with breast cancer, is another minute closer to NBCF’s aspirational goal of zero deaths from breast cancer by 2030.

Finding a cure is only a matter of time, and time for research depends on your support.

Every dollar you raise will help NBCF fund vital research into prevention and cure.

Pink Ribbon Day will be held on Monday 27th October this year. Purchase your Pink Ribbon to help the NBCF raise funds to support their vital research, or consider hosting a Pink Ribbon Breakfast this October.

The SDA is a proud supporter of this cause, and last year we raised over $33,000 – let’s beat that total this year!

The Facts about Advanced Breast Cancer Advanced breast cancer may also be called secondary breast cancer or metastatic breast cancer. The most common places that breast cancer spreads are the bones, liver, lungs and brain.

Every Pink Ribbon Breakfast helps save another life This October host a Pink Ribbon Breakfast to give researchers more time in the fight against breast cancer. Register now to host a Pink Ribbon Breakfast – just visit www.pinkribbonbreakfast.org.au

PAGE 14 l SPRING 2014 l SDA NEWS

SupporƟng Com

By Bernie Smith, Branch Secretary In June, I participated in the Vinnies CEO Sleepout, along with Gerard Dwyer and, from the SDA’s Newcastle Branch, Secretary Barbara Nebart and Assistant Secretary David Bliss.

We spent the night with other business and community leaders sleeping rough at the Eveleigh Rail Yard to help raise awareness of the plight of thousands of homeless Australians.

There are many misconceptions about homelessness. The long-term homeless people we encounter sleeping in train stations or under overpasses are the exception. Most of the people who will spend tonight sleeping rough will do so on a short-term basis caused by a sudden, drastic change in their circumstances.

Loss of income through retrenchment or injury, abandonment by a spouse, failure of a business venture: these are calamities that no one expects will happen to them. What most homeless people need is assistance to get back on their feet.

SupporƟng the Children’s Hospita SDA members have supported the Children’s Hospital at Westmead for many years through an annual raffle on SDA Picnic Day (Melbourne Cup Day).

In the last couple of years, the total amount we have raised has broken through the $100,000 barrier.

The Children’s Hospital at Westmead depends on fundraising to support its efforts as one of two dedicated Children’s Hospitals providing specialised care to kids from around New South Wales, and occasionally from other parts of Australia and the Pacific region as well.

hers ompassion Altogether, the New South Wales event raised $2.1 million which included over $10,000 from the SDA team and $30,000 from the whole union leader team. Best & Less CEO Holly Kramer was a star performer, raising over $200,000 mostly from Best & Less customers.

Here’s where the money goes: 

Supporting Our Lady of the Way refuge for older, female victims of family violence in the Western Sydney area, providing running costs of seven crisis and two transitional beds.



Continuing support of The Matthew Talbot Food program, serving three hot nutritious meals to over 500 men every day from our largest service in Woolloomooloo. They aim to reduce the street mortality rate by maintaining a standard of health for people experiencing homelessness. The program cannot survive on donated ingredients alone and relies on funds raised through the Vinnies CEO Sleepout to continue its important work.

spital at Westmead tal

Bernie and Gerard at Carriageworks



Bringing the Ozanam Learning Centre learning model to Wagga Wagga and Armidale.



Providing support to regions outside the metropolitan area to support their work with people experiencing homelessness in local communities.

Ongoing support for outreach services to assist clients in the community including counselling and material aid packages for families experiencing homelessness.

Thank you to all members and Delegates who contributed to our appeal for sponsors. 

it’s a fact...

Maccas is doing their part too

ve

d

The job market news has been pretty bad over the last year, with unemployment now at its highest level since 2002.

McDonald’s and the Salvation Army’s Employment Plus agency have partnered to create “Going for Gold” an initiative to help formerly homeless people back into work and also provide them with appropriate training and support.

The SDA applauds McDonald’s for this initiative to tackle unemployment and offer a helping hand back into the dignity of work.

SDA NEWS I SPRING 2014 I PAGE 15

Supporters Take to the Streets

100% Pay at 18+ supporters took the call for fair pay to the streets in August as part of the second annual National 100% Pay Week.

Thousands of people right across the country took part in events as part of the week – from movie nights and BBQs through to family fun days and market stalls.

There was even a 100% Pay at 18+ team in Sydney’s famous City2Surf, and a lane in Melbourne was transformed into a work of street art to mark the week.

“The issue of fair pay for younger workers is something that people of all ages and from all walks of life feel passionate about.

“It’s amazing how passionate people are

“We’ve seen huge turnouts at all the National 100% Pay Week events rights across the country, which is absolutely fantastic.

said.

“Weeks like National 100% Pay Week are important to help get the word out to those people who may not realise that the practice of paying 18 and 19 year olds less than other workers still exists.

pleasure scrolling through the website

“Many people assume that junior rates for adults ended decades ago, but the unfortunate fact is that the injustice is still occurring.

about fair pay and how willing people are to get involved in events like this,” Mr de Bruyn “The entries in the National 100% Pay Week competition were outstanding. It’s a real looking at all the effort people have gone to to help raise awareness of the need for full adult pay at 18.

“The campaign for fair pay for younger workers is clearly resonating with SDA members and the general community alike – and it’s still heating up.”

“Even during the week we saw the National Retailers’ Association attempt to have the fair pay we won for 20 year olds overturned in court.

You can see all the entries in the National

SDA National Secretary Joe de Bruyn said the National 100% Pay Week highlights just how much passion there is among the community for fair pay for 18 and 19 year old retail workers.

“There is a vocal minority who don’t believe in paying younger workers properly, which is why we need to continue to fight for fair pay.”

the need for fair pay during the week at

“It’s heartening to see so many people from right across the country take part in this important event and help raise awareness about the fact that 18 and 19 year old workers covered by the General Retail Award are paid up to 30% less than the full adult rate,” Mr de Bruyn said.

Mr de Bruyn said that the National 100% Pay Week competition, in which people were asked to creatively represent ‘100% Pay’, was a particular highlight.

THREE THINGS YOU CAN DO TO SUPPORT 100% PAY AT 18+!

a Sign up at www.100percentpay.com.au to show your support. f Like us on Facebook – www.facebook.com/100percentpay m Ask your friends, workmates and family members to sign up too

– the more people who get behind the campaign, the more likely it is that we’ll achieve 100% pay for people aged 18 and above.

PAGE 16 l SPRING 2014 l SDA NEWS

100% Pay Week competition, and read about the events that took place to celebrate www.100percentpay.com.au.

Campaign supporter Achok signing the petition

100% Pay City2Surf team

SDA NEWS I SPRING 2014 I PAGE 17

WORKERS’ COMPENSATION

Designed to Fail

PAGE 18 l SPRING 2014 l SDA NEWS

This second of three articles

However, Workcover insurance

about Workers Compensation

is usually provided by companies

matters looks at some potential

whose first concern is to return a

conflicts of interest between

profit to their shareholders.

parties.

These companies have no

What is a conflict of interest?

incentive to pay out more than

A conflict of interest occurs

So would you be surprised if

where a person has one

insurance companies looked at

interest that can be negatively

ways to avoid making or reducing

influenced by another interest.

insurance payments?

Conflict of Interests and Workers Compensation Insurers

Here are some real life

the minimum on insurance claims.

examples: 

A worker is given inadequate

The Workers Compensation

explanation about how

scheme is provided for the

to lodge a claim and

public interest.

consequently doesn’t;





A claims manager needlessly

In addition to this conflict of interest,

creates a dispute, causing

WorkCover is not given enough funds

payment of benefits to cease until

to adequately enforce the law.

it is resolved; and

If the Government genuinely wanted

A claims manager harasses an

to reduce workplace injuries (rather

injured worker by requiring him or her to attend a doctor’s appointment hundreds of kilometres away or with as little as 2-3 hours notice; if they fail to do so their payments can be terminated for non-attendance.

Sadly, these examples are not uncommon.

an average of about 600 a year to 350.

need to be provided to allow

Unfortunately, the current WorkCover scheme gives more importance to reducing insurance payments instead of reducing workplace injuries. No wonder workers are missing out.

Workcover to vigorously prosecute

Next time...

unsafe workplaces. This should result

In the final instalment of this series we will look at the real life impact the current system is having on injured workers.

than just reducing compensation payments), then more resources

in a decline of workplace injuries.

Instead, the number of Workcover inspectors has been reduced.

Now, only 12% of WorkCover’s budget is allocated to enforcement,

Issues with independent medical examiners

compared to 43% in Victoria.

Independent medical examiners and

notices actually fell dramatically from

In 2012, the number of infringement

By Mitchell Worsley, Industrial Officer

rehabilitation providers are paid by the insurers, and may be given incentives to minimise expenditures for services and payments to injured workers who come to them as patients.

Issues with WorkCover itself WorkCover is both the nominal insurer (all the other insurers are technically “Agents”) and the regulator under the scheme.

As the insurer, it wants to keep costs under control. As the regulator, it wants claims to be paid.

Free Accident Insurance for SDA Members Every SDA member gets free accident insurance (including journey insurance*) as part of their Union membership. And it’s absolutely free for every financial member of the Union.

If you had to insure yourself with a similar policy, it would cost you about $450 each year.

the questions can be asked: how can

This insurance is intended to cover you at all times when you are not covered by workers’ compensation. And you’re covered by the policy worldwide, irrespective of where the accident occurs.

the same organisation adequately

*in NSW only (ACT members are covered for journey claims under workers’ compensation laws).

As these are competing objectives,

perform both roles?

SDA NEWS I SPRING 2014 I PAGE 19

“Widespread and Systemic” Discrim Following a national review of workplace discrimination during pregnancy, while on parental leave and on returning to work, the Australian Human Rights Commission (AHRC) launched its Supporting Working Parents: Pregnancy and Return to Work National Review report on 25 July 2014.

to occur both at legislative and workplace levels to support working parents.

Retail Workers’ Experiences

If these recommendations are accepted, we hope to see a big improvement in the rights, entitlements and treatment of women who are pregnant and parents returning to work after parental leave.

The experience of workers in retail during pregnancy was worse compared to the experience of women across all other industries, with 35% in retail experiencing discrimination compared to 27% of all women.

The SDA was acknowledged at the launch of the landmark AHRC report for its contribution and effort throughout the review process and in particular for the work involved in our submission.

We would like to thank all of our SDA members who made an invaluable and brave contribution to the submission, by sharing their stories and experiences.

When returning to work after pregnancy, 27% of retail workers experienced discrimination.

The inclusion of our members’ experiences assisted in providing the AHRC with an accurate and powerful representation of what really happens on the shop floor.

Your Stories Made a Difference Our members’ experiences helped to provide the basis for a broad set of recommendations on what changes need

Evidence of Discrimina on The review found that that there is indisputable evidence that pregnancy, parental leave and return to work discrimination is widespread and systemic.

The report made clear that pregnancy, parental leave and return to work discrimination is preventing the full participation of working parents, and in particular, women, in the workforce.

The Sta s cs 

Discrimination ranges from negative attitudes right through to dismissal.

Pregnancy, parental leave and return to work discrimination also has consequences for workplaces and the national economy generally.

Discrimination has a significant negative impact on women’s participation in the workforce and their attachment to their employer.

during parental leave or when returning to work.

Of those, it was experienced by:

Recommenda ons

– 27% while pregnant,

The AHRC report Supporting Working Parents: Pregnancy and Return to Work National Review issued a broad range of recommendations including:

One in two mothers (49%) experienced

– 32% when they requested or took parental leave, – 35% when returning to work.

Over a quarter of fathers and partners (27%) experienced discrimination in the workplace when requesting or taking parental leave or when returning to work.

PAGE 20 l SPRING 2014 l SDA NEWS

The review found that discrimination has an impact on the physical and mental health of individuals, on their career and job opportunities, on their financial situations and on their families.

Those who experienced discrimination were much less likely to return to work after parental leave, and if they did, were less likely to return to their previous employer.

discrimination in the workplace during pregnancy,



Findings of the AHRC Review



changes to the Sex Discrimination Act and the Fair Work Act in order to strengthen the protection of employee rights during pregnancy, parental leave and returning to work

riminaƟon 

the development of guidance material for employers (with a view to introducing an enforceable ‘code of practice’) in relation to; 





On the Road with Julie!

Organiser Julie Myers has recently been travelling to some distant workplaces to visit members...

their legal obligations towards employees during pregnancy, parental leave and returning to work the Work Health and Safety needs of pregnant employees undergoing IVF and employees returning to work after miscarriage or childbirth

Coles Bega

conducting a national education campaign and conducting regular surveys to review levels of discrimination into the future

The SDA supports the recommendations.

However, we will be advocating for stronger rights to request flexible working arrangement provisions with a full right of appeal and for an enforceable ‘code of practice’ in addition to the guidance material.

Coles Eden

Need more InformaƟon?

The full report can be found at humanrights.gov.au/publications/ supporting-working-parents-pregnancyand-return-work-national-review-report.

A copy of the Community Guide which provides a brief summary for the report is also available at humanrights.gov. au/publications/supporting-workingparents-pregnancy-and-return-worknational-review-report.

Woolworths Bega

If you are experiencing any difficulties during pregnancy, parental leave or returning to work after parental leave, please contact the SDA on 131 SDA (that’s 131 732).

SDA NEWS I SPRING 2014 I PAGE 21

ANOTHER GREAT LUNA PARK FAMILY DAY Our annual Luna Park Family Day was held on 31 August. Over 1,200 SDA members, their families and friends took advantage of the great discount on entry. They were entertained with face pain ng, raďŹ&#x201E;e draws and, of course, the rides!

PAGE 22 l SPRING 2014 l SDA NEWS

SDA NEWS I SPRING 2014 I PAGE 23

Being Sick on the Job is No Good for Anyone Your sick leave and personal leave are entitlements negotiated into your enterprise agreement for your benefit.

The leave allows you to access paid leave if you or a family member is sick or injured and it accrues throughout the year for you.

There may be requirements on you under certain circumstances to produce either a medical certificate or statutory declaration to verify your claim for leave.

You are better off staying home to recover and return sooner in full health.

Usually they get told to wait until the next person comes in.

Also, you won’t be spreading infection amongst your workmates or to customers.

In one case, a member was having an attack of diarrhoea and asked her supervisor if she could go home. The supervisor told her to wait, which was another three hours. Our poor member, unaware of her rights, stayed for two hours before being unable to bear it and had to go home.

Yes, it is inconvenient to have to find a replacement at short notice but in the longer term, it’s better for everybody.

Companies should operate with reasonable staffing levels that minimise the impact on others when a staff member is ill.

It is YOUR entitlement, for you to access when it is necessary due to illness or injury.

What if I become ill during my shiŌ?

However, it seems that many members feel timid about accessing their entitlement to sick leave.

SDA Organisers and Delegates also encounter a recurring problem with members who start feeling ill after they have arrived for work.

In a survey* undertaken in 2011, nearly half of SDA members said that they had turned up to a shift when sick because they felt pressured by their manager. This is very disturbing.

People needlessly make things difficult for themselves by asking if it is okay for them to go home.

There is a term for this: ‘presenteeism’, meaning being present when you shouldn’t (i.e. the opposite of absenteeism).

You don’t do anyone any favours attending work while sick.

PPAGE AGE 2244 l SSPRING PRING 22014 014 l SSDA DA NNEWS EWS

You don’t need to ask to leave when you are ill – just say that you’re going!

And, of course, contact the SDA if you are having any difficulties accessing your sick or personal leave. *Source: Working Australia Census 2011

Focus on Safety They also had short safety chats with employees, focusing on a few key points such as what they found to be hazards in their workplaces, training and also participation in emergency fire drills.

By Jane Lui, WHS Officer The first Safety Demands Action – SDA national safety focus started on 16 June and ended on 7 July.

Safety is one of – if not the – most important considerations for workers because without a safe workplace, an employee’s most important asset, their health, is at risk.

This year, the SDA conducted our first ever national safety focus, putting safety first, for three weeks in June and July.

We decided to focus first on Coles, Bunnings and Woolworths. We also visited other companies, such as Target, Big W, David Jones and Kmart, in other selected areas.

SDA Organisers and Delegates conducted short audits of workplaces, focusing on consultation.

This was all done to get a true picture of how safety is going in these companies.

During this period, we conducted over 500 safety audits and over 2,000 safety chat surveys in NSW and the ACT. We will update you over coming weeks and months as we process and amalgamate all this information.

Safer workplaces are unionised, have genuine worker representation and have Health and Safety Representatives.

If you have any questions about the safety in your workplace or would like to learn more about safety focuses in your company, please call the information centre on 131 SDA.

Managers – keep out of medical appointments!

All SDA members should be aware that managers and insurance companies have no right to attend your medical appointments, even if it is for a work-related injury.

This is supported by the Fair Work Ombudsman.

Medical appointments are private. Tell any manager or insurance company representative that they are not entitled to attend.

Contact the SDA if you need any help.

THE RESULTS ARE IN! Thanks to SDA members for their enthusiastic participation in our inaugural national safety week, Safety Demands Action.

Launched on 16 June 2014, SDA Organisers, Delegates, Health and Safety Representatives (HSRs), as well as Information Officers had more than 6,000 conversations across Australia with workers about safety through a Safety Chat, and conducted safety audits in almost 1,000 workplaces using the SDA Safety Scorecard.

Safety week was also an opportunity for the SDA to highlight member concerns around the treatment of ill and injured workers. Over 1,500 workers have already requested more information about their rights in this area.

We know how important safety is to SDA members and this was reinforced by the fact that around 50% of workers we spoke with during Safety Demands Action week said they were concerned about health and safety in their workplace.

It was fantastic to see that about 70% of workers we spoke to during safety week identified themselves as SDA members.

Safety Demands Action week also presented the SDA with a great opportunity to encourage new members to join our Union and support our efforts in health and safety.

WHAT’S NEXT?

An analysis of all feedback from 2014 Safety Demands Action week is expected to be completed by September 2014.

The SDA will continue to talk with members through Delegates, HSRs and Organisers about next steps and plans for 2015.

We will continue working together to make sure that workplace health and safety remains an SDA priority that demands action!

SDA NEWS I SPRING 2014 I PAGE 25

The Sydney Tower Eye

Madame Tussauds

SDA members and their families are entitled to a 15% discount on single adult and child entry tickets upon presentation of their current SDA membership card.

SDA members and their families are entitled to a 15% discount on single adult and child entry tickets upon presentation of their current SDA membership card.

t (02) 9333 9222 a sydneytowereye.com.au

t (02) 9333 9240 a madametussauds.com/sydney

WILD LIFE Sydney

Australian National Maritime Museum

Sydney Aquarium, Darling Harbour

Manly SEA LIFE Sanctuary

SDA members and their families are entitled to a 15% discount on single adult and child entry tickets upon presentation of their current SDA membership card.

SDA members and their families are entitled to a 15% discount on single adult and child entry tickets upon presentation of their current SDA membership card.

t (02) 8251 7800 a sydneyaquarium.com.au

t (02) 8251 7877 a manlysealifesanctuary.com.au

Currumbin Wildlife Sanctuary, Gold Coast

Featherdale Wildlife Park, Doonside

SDA members and their families are entitled to a 15% discount on single adult and child entry tickets upon presentation of their current SDA membership card.

SDA members and their families are entitled to a 20% discount upon presentation of their current SDA membership card.

SDA members and their families are entitled to a 20% discount upon presentation of their current SDA membership card.

SDA members and their families are entitled to a 25% discount upon presentation of their current SDA membership card.

t (02) 9333 9288 a wild-life.com.au

t (02) 9298 3777 a anmm.gov.au

t (07) 5534 1266 a cws.org.au

t (02) 9622 1644 a featherdale.com.au

Gold Coast Attractions

Please note:

SDA members and their families are entitled to a 15% discount at these leading Gold Coast attractions:

The Edge Cinema Katoomba no longer offers

Movieworld*

Seaworld*

a discount

t 133 FUN (133 386) a myfun.com.au

t 133 FUN (133 386) a myfun.com.au

specifically for SDA members.

com.au *Please note: you must pre-purchase your tickets though the SDA website to access the discounts on these attractions.

Discount New Cars is a unique online car buying service, offering discounted prices on a range of the most popular makes and models of new cars through a select group of authorised new car dealers throughout Australia. With over 600 new car franchise dealerships supporting their pre-negotiated offers, together with the friendly customer service team, Discount New Cars aims to provide exceptional advice, service and pricing for SDA members. = Discount New Cars allows you to price and build your next new car from over 36 different manufacturers. = View technical specifications, features, options, trade-in-prices, finance, insurance, as well as up-front drive away pricing. = Exclusive savings and specials for SDA Union Members updated monthly – beyond what is on offer to the general public. = FREE, No obligation enquiry.

With Discount New Cars also providing additional support for SDA members FREE of charge, visit www.discountnewcars.com.au/sda or speak with one of the Union Affiliation Representatives by calling toll free on 1800 146 666 to find out how much you can save today!

PAGE 26 l SPRING 2014 l SDA NEWS

Wet’n’Wild Dreamworld White Water Skypoint Water World* t (07) 5588 1111 World (07) t 5582 2700 (07) 5588 1111 t dreamworld. t 133 FUN a a skypoint. com.au com.au a whitewaterworld. a myfun.com.au

Europcar Rentals SDA members receive exclusive rates when they rent with Europcar. Simply quote 47699503 when making your booking. No PIN or Velocity number is required. For more information, phone Europcar on 1300 131 390 or go to europcar.com.au.

Coffs Harbour Driving School Get five one-hour lessons for just $275 – that’s a saving of $5 per lesson.

Phone (02) 6652 1096 and speak to Julian or Kaye for more information.

ABC Driving School SDA members and their children receive $25 off the standard cost of five lessons with ABC Driving School. For more information, go to abcdrivingschool.com.au or see the White Pages for your nearest branch.

Offer valid to 31 December 2014

REST Earns 13.3% In the table below, REST is compared to the median of other comparable super funds as published by the Super Ratings Fund Crediting Survey.

By Joe de Bruyn, National Secretary The Retail Employees Superannuation Trust (REST) earned 13.3% on its investments in the 12 months to 30 June 2014.

This followed the remarkable investment earnings of 18.4% in the year to 30 June 2013.

Despite continuing uncertainty and volatility in world financial markets, REST’s earnings are boosting the superannuation savings of members in REST. The result comes from continuing careful investment decisions made over the years which have placed REST among the leaders of super funds in Australia.

Solid Performance Over Time REST has provided competitive investment returns over all time periods compared to its peers.

REST’s Ranking In the Super Ratings Survey, REST is ranked among its peers over various time periods as the table shows:

Fund of the Year 2014

Period to REST’s Ranking 30 June 2014 1 year 13th out of 47 funds 3 years 2nd out of 47 funds 5 years 2nd out of 47 funds 7 years 1st out of 44 funds 10 years 1st out of 39 funds The Global Financial Crisis hit world financial markets in September 2008.

Taking this period into account in the 7 year and 10 year comparison, REST is the top performing fund in investment earnings over these time periods.

Secure InvesƟng Superannuation is saving for retirement and is separate to the age pension.

It is an opportunity for low income workers to accumulate REST’s Performance to 30 June 2014 additional funds for their retirement years so that they REST Median REST OutPeriod to are not totally reliant on the % p.a. % p.a. Performance 30 June pension. % p.a.

2014 1 year 13.29% 12.66% 0.63% The earnings of your 3 years 10.60% 9.06% 1.54% superannuation fund are 5 years 10.55% 9.21% 1.34% therefore vital in maximising 7 years 5.58% 3.65% 1.93% your account balance.

10 years 8.08% 6.78% 1.30% REST has now reached 25 years of investment performance for its members in the retail and associated industries. It has earned 9.5% per annum over the 20 years to 31 March 2014.

REST will continue to invest wisely and carefully in the future, seeking to combine secure investments and good earning rates.

You’re with the winning team.

REST Industry Super makes your super work harder and it has been recognised by Money magazine, SuperRatings and Chant West as Fund of the Year 2014.

It’s a good thing you’re with REST.

rest.com.au 1800 737 878

(8am-8pm weekdays)

Product issued by Retail Employees Superannuation Pty Ltd. Call us on 1800 737 878 or visit rest.com.au for a REST PDS to consider if it is right for you. Awards and ratings are only one factor to consider when deciding how to invest your super. SuperRatings Pty Limited does not issue, sell, guarantee or underwrite this product. Go to www.superratings.com.au for details of its ratings criteria. For further information about the methodology used by Chant West, see www.chantwest.com.au RES5174_SDA

SDA NEWS I SPRING 2014 I PAGE 27

SDA FINANCIAL REPORTS 2014

SHOP, DISTRIBUTIVE & ALLIED EMPLOYEES’ ASSOCIATION ANNUAL FINANCIAL REPORT AS AT 30 JUNE 2014 OPERATING REPORT FOR THE YEAR ENDED 30 JUNE 2014 The members of the National Executive present their report together with the Ànancial report of Shop, Distributive & Allied Employees’ Association (‘the Association’) for the Ànancial year ended 30 June 2014 and the auditor’s report thereon.

1. Membership Membership of the Association as at 30 June 2014 was 209,838 (2013: 213,075).

Persons eligible to do so under the rules of the Association were actively encouraged to join the Association. Pursuant to s174 of the Fair Work (Registered Organisations) Act 2009 (“RO Act”) and in accordance with Rule 27 of the Association, members have the right to resign from the Association by written notice to the appropriate Branch of the Association.

2. Committee of Management The members of the National Executive of the Association at any time during or since the end of the Ànancial year are: Name Experience Mr Gerard Dwyer National Executive Member since 2005 National President Elected National President 2008 Mr Joseph Bullock National Executive Member since 1996 National Vice President Elected National Vice President 2004 Mr Joseph de Bruyn National Executive Member since 1978 National Secretary-Treasurer Elected National Secretary-Treasurer 1978 Mr Ian Blandthorn National Executive Member since 1986 National Assistant Secretary Elected National Assistant Secretary 1986 Mr Michael Donovan National Executive Member since 1996 Mr Paul GrifÀn National Executive Member since 1990 Mr Chris Ketter National Executive Member since 1996 Ms Barbara Nebart National Executive Member since 2004 Mr Peter Malinauskas National Executive Member since 2008 3. AfÀliations & Directorships The Association, through its Branches, is afÀliated with the Australian Labor Party (“ALP”). Delegates were credentialed to various state and national meetings of the ALP. The National Secretary-Treasurer is a member of the ALP National Executive and the Australian Labor Advisory Council.

The Association is afÀliated with the Australian Council of Trade Unions (“ACTU”). The National Secretary-Treasurer is Senior Vice President of the ACTU. Four other representatives of the Association are also members of the ACTU Executive. OfÀcials of the Association are active on a range of ACTU Committees, including Ànance, health and safety, women, vocational education and training, future strategies, international and award modernisation.

The Association is afÀliated to Union Network International (“UNI”). Various ofÀcials of the Association hold elected positions within UNI. The National Secretary-Treasurer is the President of UNI. Two representatives of the Association are Directors of the Service Industries Skills Council.

4. Principal Activities The Association maintained its industrial awards and agreements at a high, up-to-date standard, and produced a range of publications for its members.

New enterprise agreements were negotiated with a wide range of employers including Hungry Jack’s, the Just Group, Villeroy & Boch, Domino’s Pizza, Myer, Priceline, Noni B, Dulux, Red Rooster, Chicken Treat, Bras N Things, Lovisa, Masters, Coles Liquor and Specialty Fashion Group. These agreements all resulted in improved wages and working conditions for the employees covered by them.

The Association continues its defence of penalty rates in its major awards and also protects other entitlements from attack by employers. The Association also ran a major test case in support of the principle of the adult rate of pay at 18 years of age, and was successful in achieving the adult rate at 20 years in the General Retail Industry Award.

The Association has also actively opposed legislation by the Abbott Government to take away basic entitlements of workers since its election to ofÀce on 7 September, 2013 and, particularly, various regressive provisions aimed against low paid workers in the 2014/2015 Federal Budget.

There were no signiÀcant changes in the Association during the Ànancial year in the nature of its activities and Ànancial affairs. At 30 June 2014, there were 14 persons employed by the national ofÀce of the Association (2013: 16).

5. Superannuation Trustees Four representatives of the Association hold positions as Directors of the Retail Employees’ Superannuation Trust (“REST”). Below are the directors as at 30 June 2014, along with the nominated alternate Employee Directors. Ms S Burnley is also a Director of CARE Super Pty Ltd. Directors: Alternates: Mr Joseph de Bruyn Ms Gerard Dwyer Mr Ian Blandthorn Mr Michael Donovan Mr Geoff Williams Mr Peter Malinauskas Ms Sue-Anne Burnley Ms Julia Fox 6. SDA Report to the Workplace Gender Equality Agency The Shop, Distributive and Allied Employees’ Association, as required by the Workplace Gender Equality Act 2012, lodged its public report for the reporting year 2013-2014, to the Workplace Gender Equality Agency, on the 29th May 2014. The report is available on the SDA National website at www.sda.org.au 7. Information to be provided to Members or General Manager In accordance with the requirements of subsection 272(5) of the RO Act, the attention of members is drawn to the provisions of subsections (1), (2) and (3) of section 272, which states as follows: 1. A member of a reporting unit, or the General Manager, may apply to the reporting unit for speciÀed prescribed information in relation to the reporting unit to be made available to the person making the application.

2. The application must be in writing and must specify the period within which, and the manner in which, the information is to be made available. The period must not be less than 14 days after the application is given to the reporting unit.

3. A reporting unit must comply with an application made under subsection (1).

Dated at the Gold Coast this 18th day of August 2014 GERARD DWYER, JOSEPH DE BRUYN, NATIONAL PRESIDENT NATIONAL SECRETARY-TREASURER

COMMITTEE OF MANAGEMENT STATEMENT We, Gerard Dwyer and Joseph de Bruyn, being two members of the National Executive of the Association, do state on behalf of the National Executive and in accordance with a resolution passed by the National Executive on 18th August 2014 in relation to the accompanying general purpose Ànancial report that, in the opinion of the National Executive: (a) the Ànancial statements and notes set out on pages 8 to 41 comply with the Australian Accounting Standards; (b) the Ànancial statements and notes set out on pages 8 to 41 comply with the reporting guidelines of Fair Work Australia (“FWA”); (c) the Ànancial statements and notes present a true and fair view of the Ànancial performance, Ànancial position and cash Áows of the Association for the Ànancial year ended 30 June 2014; (d) there are reasonable grounds to believe that the Association will be able to pay its debts as and when they become due and payable;

(e) during the Ànancial year ended 30 June 2014 and since the end of that year: (i) meetings of the executive were held in accordance with the rules of the Association; (ii) the Ànancial affairs of the Association have been managed in accordance with the rules of the Association; (iii) the Ànancial records of the Association have been kept and maintained in accordance with the Fair Work (Registered Organisations) Act 2009 (“RO Act”) and the RO Regulations; (iv) the Ànancial records of the Association have been kept, as far as practicable, in a consistent manner for each of the branches of the Association; (v) to the knowledge of any member of the National Executive, there have been no instances of information sought in any request of a member of the Association or FWA duly made under section 272 of the RO Act that have not been furnished to the member or FWA; (vi) no orders for inspection of Ànancial records have been made by FWA under section 273 of the RO Act; and (vii) in relation to the recovery of wages activity, there has been no such activity undertaken by the Association and no revenue derived.

Dated at the Gold Coast this 18th day of August 2014 GERARD DWYER, JOSEPH DE BRUYN, NATIONAL PRESIDENT NATIONAL SECRETARY-TREASURER

CERTIFICATE BY NATIONAL SECRETARY-TREASURER I, Joseph de Bruyn, being the ofÀcer responsible for keeping the accounting records of the Association certify that as at 30 June 2014 the number of members of the Association was 209,838.

In my opinion: (i) the accompanying Ànancial report set out on pages 8 to 41 presents a true and fair view of the Ànancial position of the Association as at 30 June 2014; (ii) a record has been kept of all monies paid by or collected from members of the Association and all monies so paid or collected have been credited to the bank account to which those monies are to be credited in accordance with the rules of the Association; (iii) before any expenditure was incurred by the Association, approval of the incurring of the expenditure was obtained in accordance with the rules of the Association; (iv) no payments were made out of funds or accounts operated by the Association in respect of compulsory levies raised by the Association or voluntary contributions collected from members of the Association or other funds, the operation of which is required by the rules of the Association for a purpose other than the purpose for which the funds or accounts were operated; (v) no loans or other Ànancial beneÀts other than remuneration in respect of their full time employment with the Association were made to persons holding ofÀce in the Association; and (vi) the Register of Members of the Association was maintained in accordance with the Fair Work (Registered Organisations) Act 2009.

Dated at the Gold Coast this 18th day of August 2014 JOSEPH DE BRUYN, NATIONAL SECRETARY-TREASURER

STATEMENT OF FINANCIAL POSITION As at 30 June 2014 Assets Cash and cash equivalents Receivables Other Ànancial assets Total current assets Investment property Property, plant and equipment Employee beneÀts Total non-current assets TOTAL ASSETS Liabilities Trade and other payables Employee beneÀts Total current liabilities Employee beneÀts Total non-current liabilities TOTAL LIABILITIES NET ASSETS Equity Retained earnings TOTAL EQUITY

Note

2014 $

2013 $

9 10 11

1,460,407 428,286 25,300,000 27,188,693 15,300,000 316,199 470,908 16,087,107 43,275,800

1,042,785 348,125 25,100,000 26,490,910 15,301,973 289,366 15,591,339 42,082,249

406,915 878,835 1,285,750 13,870 13,870 1,299,620 41,976,180

352,839 815,398 1,168,237 93,507 93,507 1,261,744 40,820,505

41,976,180 41,976,180

40,820,505 40,820,505

12 13 15

14 15 15

The notes on pages 12 to 41 are an integral part of these Ànancial statements.

STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME For the year ended 30 June 2014 Income AfÀliation fee contributions Other income Expenditure 53 Queen St, Melbourne - direct operating expenses ACTU IR Campaign Levy AfÀliation fees Auditors’ remuneration Campaigning expenses Delegates expenses Depreciation Donations Legal expenses Meeting expenses OfÀce & administration expenses Other expenses Personnel expenses Travel expenses Total Expenses Result from Operating Activities Finance income Interest income Income tax expense PROFIT FOR THE PERIOD Other comprehensive income DeÀned beneÀt plan actuarial gains (losses) Income tax on other comprehensive income TOTAL COMPREHENSIVE INCOME FOR THE PERIOD

Note

2014 $

2013 $

21

4,852,875 4,852,875 1,966,088 6,818,963

6,208,699 6,208,699 2,410,754 8,619,453

532,405 431,178 1,491,938 24,284 560,657 360,213 42,462 792,094 150,078 225,594 133,604 540,338 1,542,686 155,172 6,982,703 (163,740)

480,541 424,158 1,251,062 27,465 231,249 205,334 36,797 222,039 479,654 199,130 127,566 564,437 1,404,181 158,498 5,812,111 2,807,342

812,098 812,098 648,358

959,317 959,317 3,766,659

507,317 507,317 1,155,675

103,565 103,565 3,870,224

7

21 21 8 13

19

11 4(k) 15 4(k)

The notes on pages 12 to 41 are an integral part of these Ànancial statements.

SDA NEWS SPRING 2014 – PAGE 28

SDA FINANCIAL REPORTS 2014 STATEMENT OF CHANGES IN EQUITY Note Retained For the year ended 30 June 2014 earnings $ Balance at 1 July 2012 36,950,281 Total comprehensive income for the period ProÀt for the period 3,766,659 Other comprehensive income DeÀned beneÀt plan actuarial (losses), net of tax 15 103,565 Total comprehensive income for the period 3,870,224 Transactions with members of the Association, recognised directly in equity Balance at 30 June 2013 40,820,505 Balance at 1 July 2013 40,820,505 Total comprehensive income for the period ProÀt for the period 648,358 Other comprehensive income DeÀned beneÀt plan actuarial gains, net of tax 15 507,317 Total comprehensive income for the period 1,155,675 Transactions with members of the Association, recognised directly in equity Balance at 30 June 2014 41,976,180 The notes on pages 12 to 41 are an integral part of these Ànancial statements.

Total equity $ 36,950,281 3,766,659 103,565 3,870,224 40,820,505 40,820,505 648,358 507,317 1,155,675 41,976,180

STATEMENT OF CASH FLOWS For the year ended 30 June 2014 Note 2014 $ Cash Áows from operating activities Cash receipts from operations 7,385,454 Cash paid to suppliers and employees (7,545,670) Cash generated from operations (160,216) Interest received 845,748 Net cash from operating activities 20 685,532 Cash Áows from investing activities Acquisition of term deposits (200,000) Acquisition of property, plant and equipment 13 (69,295) Proceeds on sale of property, plant and equipment 1,385 Net cash from/(used in) investing activities (267,910) Cash Áows from Ànancing activities Net cash from/(used in) Ànancing activities Net increases/(decreases) in cash and cash equivalents 417,622 Cash and cash equivalents at 1 July 1,042,785 CASH AND CASH EQUIVALENTS AT 30 JUNE 9 1,460,407 The notes on pages 12 to 41 are an integral part of these Ànancial statements.

2013 $ 8,306,120 (6,242,298) 2,063,822 917,593 2,981,415 (3,000,000) (10,671) (3,010,671) (29,256) 1,072,041 1,042,785

NOTES TO FINANCIAL STATEMENTS 1. Reporting Entity Shop, Distributive & Allied Employees’ Association (the ‘Association’) is an Association domiciled in Australia. The address of the Association’s registered ofÀce is Level 6, 53 Queen Street, Melbourne. The Ànancial report of the Association for the Ànancial year ended 30 June 2014 comprises the National Account and the International Fund. The Association is a not-for-proÀt entity and primarily is involved in retail trade union activities.

2. Basis of Preparation a) Statement of compliance The Ànancial report is a general purpose Ànancial report which has been prepared in accordance with Australian Accounting Standards (‘AASBs’) adopted by the Australian Accounting Standards Board (‘AASB’) and the Fair Work (Registered Organisations) Act 2009.

The Ànancial statements were approved by the National Executive on 18th August 2014. b) Basis of measurement The Ànancial report is prepared on the historical cost basis except for the following material items in the statement of Ànancial position: • investment property is measured at fair value; and • the deÀned beneÀt asset is recognised as the net total of the plan assets, plus unrecognised past service cost and unrecognised actuarial losses, less unrecognised actuarial gains and the present value of the deÀned beneÀt obligation. c) Functional and presentation currency The Ànancial report is presented in Australian dollars, which is the Association’s functional currency. d) Use of estimates and judgements The preparation of Ànancial statements in conformity with AASBs requires management to make judgements, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets, liabilities, income and expenses. Actual results may differ from these estimates.

Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised and in any future periods affected. (i) Judgements Information about critical judgements in applying accounting policies that have the most signiÀcant effect on the amount recognised in the Ànancial statements is included in the following note: • Note 12 – valuation and classiÀcation of investment property.

• Note 17 – lease classiÀcation. (ii) Assumptions and estimation uncertainties Information about assumptions and estimation uncertainties that have a signiÀcant risk of resulting in a material adjustment within the next Ànancial year are included in the following note: • Note 15 – measurement of deÀned beneÀt obligations: key actuarial assumptions.

Measurement of fair values A number of the Association’s accounting policies and disclosures require the measurement of fair values, for both Ànancial and non-Ànancial assets and liabilities.

The Association has an established control framework with respect to the measurement of fair values. SigniÀcant fair value measurements are overseen and reviewed regularly, including unobservable inputs and valuation adjustments. If third party information is used to measure fair values, the Association assesses the evidence obtained from the third parties to support the conclusion that such valuations meet the requirements of AASBs, including the level in the fair value hierarchy in which such valuations should be classiÀed. SigniÀcant valuation issues are reviewed by the Association’s Audit and Risk Committee.

When measuring the fair value of an asset or a liability, the Association uses market observable data as far as possible. Fair values are categorised into different levels in a fair value hierarchy based on the inputs used in the valuation techniques as follows.

• Level 1 – quoted prices (unadjusted) in active markets for identical assets or liabilities.

• Level 2 – inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly (i.e. as prices) or indirectly (i.e. derived from prices).

• Level 3 – inputs for the asset or liability that are not based on observable market data (unobservable inputs).

If the inputs used to measure the fair value of an asset or a liability might be categorised in different levels of the fair value hierarchy, then the fair value measurement is categorised in its entirety in the same level of the fair value hierarchy as the lowest level input that is signiÀcant to the entire measurement.

The Association recognises transfers between levels of the fair value hierarchy at the end of the reporting period during which the change has occurred.

Further information about the assumptions made in measuring fair values is included in the following notes: • Note 12 – investment property.

3. Changes in accounting policies Except for the changes below, the Association has consistently applied the accounting policies set out in Note 4 for all periods presented in these Ànancial statements. The Association has adopted the following new standards and amendments to standards, including any consequential amendments to other standards, with a date of initial application of 1 July 2013. (i) Employee beneÀts In the current year, the Association adopted AASB 119 Employee beneÀts (2011), which revised the deÀnition of short-term employee beneÀts to beneÀts that are expected to be settled wholly within 12 months after the end of the annual reporting period in which the employees render the related service. As a result of the change, the annual leave liability for certain of the Association’s employees is now considered to be another long-term employee beneÀt, when previously it was a short-term beneÀt.

The Association’s obligation is determined as the amount of future beneÀt that employees have earned in return for their service in the current and prior periods, applying actuarial assumptions, discounted to determine its present value. Re-measurements are recognised in proÀt or loss in the period in which they arise. The Association has applied the new policy retrospectively in accordance with the transitional provision of the standard. The impact on the comparative Àgures and opening statement of Ànancial position of the earliest comparative period presented (1 July 2012) is not material.

The Association early adopted the changes in respect of the deÀned beneÀt plan accounting policy in the prior Ànancial year and as a result there are no further changes to accounting policy required. (ii) Fair value measurement AASB 13 establishes a single framework for measuring fair value and making disclosures about fair value measurements when such measurements are required or permitted by others AASBs. It uniÀes the deÀnition of fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. It replaces and expands the disclosure requirements about fair value measurements in other AASBs, including AASB 7. As a result, the Association has included additional disclosures in this regard (see Notes 12 and 16).

In accordance with the transitional provisions of AASB 13, the Association has applied the new fair value measurement guidance prospectively and has not provided any comparative information for new disclosures.

Notwithstanding the above, the changes had no signiÀcant impact on the measurements of the Association’s assets and liabilities.

4. SigniÀcant Accounting Policies The accounting policies set out below have been applied consistently to all periods presented in these Ànancial statements, and have been applied consistently by the Association, except for the changes in accounting policies as explained in Note 3.

Certain comparative amounts have been reclassiÀed to conform with the current year’s presentation. a) Financial instruments (i) Non-derivative Ànancial assets The Association initially recognises receivables and deposits on the date that they originate. All other Ànancial assets (including assets designated at fair value through proÀt and loss) are recognised initially on the trade date at which the Association becomes a party to the contractual provisions of the instrument.

The Association derecognises a Ànancial asset when the contractual rights to the cash Áows from the asset expire, or it transfers the rights to receive the contractual cash Áows on the Ànancial asset in a transaction in which substantially all the risks and rewards of ownership of the Ànancial asset are transferred. Any interest in transferred Ànancial assets that is created or retained by the Association is recognised as a separate asset or liability.

Financial assets and liabilities are offset and the net amount presented in the Ànancial position when, and only when, the Association has a legal right to offset the amounts and intends either to settle on a net basis or to realise the asset and settle the liability simultaneously.

The Association has the following non-derivative Ànancial assets: held-to maturity Ànancial assets, receivables, and cash and cash equivalents.

Held-to-maturity Ànancial assets Held-to-maturity Ànancial assets are recognised initially at fair value plus any directly attributable transaction costs. Subsequent to initial recognition held-to-maturity Ànancial assets are measured at amortised cost using the effective interest method, less any impairment losses (see note 4e(i)). Any sale or reclassiÀcation of a more than insigniÀcant amount of held-to-maturity investments not close to their maturity would result in the reclassiÀcation of all held-to-maturity investments as available-for-sale, and prevent the Association from classifying investment securities as held-to-maturity for the current and the following two Ànancial years.

Held to maturity Ànancial assets comprise Term Deposits held with the Commonwealth Bank of Australia (see note 11).

Receivables Receivables are Ànancial assets with Àxed or determinable payments that are not quoted in an active market. Such assets are recognised initially at fair value plus any directly attributable transaction costs. Subsequent to initial recognition receivables are measured at amortised cost using the effective interest method, less any impairment losses (see note 4e(i)).

Receivables comprise accrued income, prepayments and sundry debtors (see note 10).

Cash and cash equivalents Cash and cash equivalents comprise cash balances and bank bills with original maturities of three months or less from the acquisition date that are subject to an insigniÀcant risk of changes in their fair value, and are used by the Association in the management of short-term commitments. (ii) Non-derivative Ànancial liabilities The Association’s other Ànancial liabilities are recognised initially on the trade date which is the date that the Association becomes a party to the contractual provisions of the instrument.

The Association derecognises a Ànancial liability when its contractual obligations are discharged or cancelled or expire.

Financial assets and liabilities are offset and the net amount presented in the statement of Ànancial position when, and only when, the Association has a legal right to offset the amounts and intends either to settle on a net basis or to realise the asset and settle the liability simultaneously.

The Ànancial liabilities are recognised at fair value plus any directly attributable transaction costs. Subsequent to initial recognition these Ànancial liabilities are measured at amortised cost using the effective interest rate method.

Other Ànancial liabilities comprise trade and other payables. (iii) Share capital The Association is an unincorporated registered organisation under the Fair Work (Registered Organisations) Act 2009 and does not have share capital. (b) Foreign currency (i) Foreign currency transactions Transactions in foreign currencies are translated to the functional currency of the Association at exchange rates at the dates of the transactions. Monetary assets and liabilities denominated in foreign currencies at the reporting date are retranslated to the functional currency at the exchange rate at that date. The foreign currency gain or loss on monetary items is the difference between amortised cost in the functional currency at the beginning of the period, adjusted for effective interest and payments during the period, and the amortised cost in foreign currency translated at the exchange rate at the end of the year.

Non-monetary assets and liabilities denominated in foreign currencies that are measured at fair value are retranslated to the functional currency at the exchange rate at the date that the fair value was determined. Nonmonetary items in a foreign currency that are measured in terms of historical cost are translated using the exchange rate at the date of the transaction.

Foreign currency differences arising on retranslation are recognised in proÀt or loss. c) Property, plant and equipment (i) Recognition and measurement Items of property, plant and equipment are measured at cost less accumulated depreciation and accumulated impairment losses. Cost includes expenditures that are directly attributable to the acquisition of the asset.

When parts of an item of property, plant and equipment have different useful lives, they are accounted for as separate items of property, plant and equipment.

The gain or loss on disposal of an item of property, plant and equipment is determined by comparing the proceeds from disposal with the carrying amount of property, plant and equipment and is recognised net within other income/other expenses in proÀt or loss.

SDA NEWS SPRING 2014 – PAGE 29

SDA FINANCIAL REPORTS 2014 (ii) Subsequent costs The cost of replacing part of an item of property, plant and equipment is recognised in the carrying amount of the item if it is probable that the future economic beneÀts embodied within the part will Áow to the Association and its cost can be measured reliably. The carrying amount of the replaced part is derecognised. The costs of the day-today servicing of property, plant and equipment are recognised in proÀt or loss as incurred. (iii) Depreciation Depreciation is calculated over the depreciable amount, which is the cost of an asset, or other amount substituted for cost, less its residual value.

Depreciation is recognised in proÀt or loss on a straight-line or diminishing value over the estimated useful lives of each part of an item of property, plant and equipment, to most closely reÁect the expected pattern of consumption of the future economic beneÀts embodied in the asset. Leased assets are depreciated over the shorter of the lease term and their useful lives unless it is reasonably certain that the Association will obtain ownership by the end of the lease term.

The estimated useful lives in the current and comparative periods are as follows: • Leasehold improvements 6-20 years • Fixtures and Àttings 4-20 years • Motor vehicles 8 years Depreciation methods, useful lives and residual values are reviewed at each Ànancial year-end and adjusted if appropriate. d) Investment property Investment property is property held either to earn rental income or for capital appreciation or for both, but not for sale in the ordinary course of business, use in the production or supply of goods or services or for administrative purposes. Investment property is measured at cost on initial recognition and subsequently at fair value with any change therein recognised in proÀt or loss.

Cost includes expenditure that is directly attributable to the acquisition of the investment property. The cost of self-constructed investment property includes the cost of materials and direct labour, any other costs directly attributable to bringing the investment property to a working condition for their intended use and capitalised borrowing costs.

Any gain or loss on disposal of an investment property (calculated as the difference between the net proceeds from disposal and the carrying amount of the item) is recognised in proÀt and loss. When an investment property that was previously classiÀed as property, plant and equipment is sold, any related amount included in the revaluation reserve is transferred to retained earnings.

When the use of a property changes such that it is reclassiÀed as property, plant and equipment, its fair value at the date of reclassiÀcation becomes its cost for subsequent accounting. e) Impairment (i) Non-derivative Ànancial assets A Ànancial asset not carried at fair value through proÀt or loss is assessed at each Ànancial reporting date to determine whether there is objective evidence that it is impaired. A Ànancial asset is impaired if objective evidence indicates that a loss event has occurred after the initial recognition of the asset, and that the loss event has a negative effect on the estimated future cash Áows of that asset that can be estimated reliably.

Objective evidence that Ànancial assets (including receivables) are impaired can include default or delinquency by a debtor, restructuring of an amount due to the Association on terms the Association would not consider otherwise, indications that a debtor or issuer will enter bankruptcy, or the disappearance of an active market for a security.

Financial asset at amortised cost The Association considers evidence of impairment for receivables at both a speciÀc asset and collective level. All individually signiÀcant receivables are assessed for speciÀc impairment, and those found not to be speciÀcally impaired are then collectively assessed for any impairment that has been incurred but not yet identiÀed.

Receivables that are not individually signiÀcant are collectively assessed for impairment by grouping together those with similar risk characteristics.

In assessing collective impairment the Association uses historical trends of the probability of default, timing of recoveries and the amount of loss incurred, adjusted for management’s judgement as to whether current economic and credit conditions are such that actual losses are likely to be greater or less than suggested by historical trends.

An impairment loss in respect of a Ànancial asset measured at amortised cost is calculated as the difference between its carrying amount and the present value of the estimated future cash Áows discounted at the asset’s original effective interest rate. Losses are recognised in proÀt or loss and reÁected in an allowance account against receivables or held-to-maturity investment securities. Interest on the impaired asset continues to be recognised.

When a subsequent event (e.g. repayment by a debtor) causes the amount of impairment loss to decrease, the decrease in impairment loss is reversed through proÀt or loss. (ii) Non-Ànancial assets The carrying amounts of the Association’s non-Ànancial assets, other than investment property, are reviewed at each reporting date to determine whether there is any indication of impairment. If any such indication exists, the asset’s recoverable amount is estimated.

An impairment loss is recognised if the carrying amount of an asset or its cash-generating unit (CGU) exceeds its recoverable amount. A CGU is the smallest identiÀable asset group that generates cash Áows that largely are independent from other assets and groups. Impairment losses are recognised in proÀt or loss.

The recoverable amount of an asset or CGU is the greater of its value in use and its fair value less costs to sell.

In assessing value in use, the estimated future cash Áows are discounted to their present value using a pre-tax discount rate that reÁects current market assessments of the time value of money and the risks speciÀc to the asset or CGU. Impairment losses recognised in prior periods are assessed at each reporting date for any indications that the loss has decreased or no longer exists. An impairment loss is reversed if there has been a change in the estimates used to determine the recoverable amount. An impairment loss is only reversed to the extent that the asset’s carrying amount does not exceed the carrying amount that would have been determined, net of depreciation or amortisation, if no impairment loss had been recognised. f) Employee beneÀts (i) DeÀned beneÀt plans The Association’s net obligation in respect of deÀned beneÀt plans is calculated separately for each plan by estimating the amount of future beneÀt that employees have earned in the current and prior periods, discounting that amount and deducting the fair value of any plan assets.

The calculation of deÀned beneÀt obligations is performed annually by a qualiÀed actuary using the projected unit credit method. When the calculation results in a potential asset for the Association, the recognised asset is limited to the present value of economic beneÀts available in the form of any future refunds from the plan or reductions in future contributions to the plan. To calculate the present value of economic beneÀts, consideration is given to any applicable minimum funding requirements.

Remeasurements of the net deÀned beneÀt liability, which comprise actuarial gains and losses, the return on plan assets (excluding interest) and the effect of the asset ceiling (if any, excluding interest), are recognised immediately in OCI. The Association determines the net interest expense (income) on the net deÀned beneÀt liability (asset) for the period by applying the discount rate used to measure the deÀned beneÀt obligation at the beginning of the annual period to the then-net deÀned beneÀt liability (asset), taking into account any changes in the net deÀned beneÀt liability (asset) during the period as a result of contributions and beneÀt payments. Net interest expense and other expenses related to deÀned beneÀt plans are recognised in proÀt or loss.

When the beneÀts of a plan are changed or when a plan is curtailed, the resulting change in beneÀt that relates to past service or the gain or loss on curtailment is recognised immediately in proÀt or loss. The Association recognises gains and losses on the settlement of a deÀned beneÀt plan when the settlement occurs. (ii) Other long-term employee beneÀts The Association’s net obligation in respect of long-term employee beneÀts other than deÀned beneÀt superannuation funds is the amount of future beneÀt that employees have earned in return for their service in the current and prior periods plus related on-costs; that beneÀt is discounted to determine its present value, and the fair value of any related assets is deducted. The discount rate is the yield at the reporting date on Commonwealth Government bonds that have maturity dates approximating the terms of the Association’s obligations in which the beneÀts are expected to be paid.

(iii) Short-term beneÀts Liabilities for employee beneÀts for wages, salaries, annual leave and sick leave represent present obligations resulting from employees’ services provided to reporting date and are calculated at undiscounted amounts and expensed based on remuneration wage and salary rates that the Association expects to pay as at reporting date including related on-costs, such as workers compensation insurance and payroll tax. Amounts that are expected to be settled beyond 12 months are measured in accordance with long term beneÀts. g) Provisions A provision is recognised if, as a result of a past event, the Association has a present legal or constructive obligation that can be estimated reliably, and it is probable that an outÁow of economic beneÀts will be required to settle the obligation. h) Revenue (i) AfÀliation fee contributions AfÀliation fee contributions represent afÀliation fees received from the state branches, recognised on receipt. (ii) Rental income Rental income from investment property is recognised in proÀt or loss on a straight line basis over the term of the lease. Lease incentives granted are recognised as an integral part of the total rental income, over the term of the lease. i) Finance income Finance income comprises interest income on funds invested. Interest income is recognised as it accrues in proÀt or loss, using the effective interest method.

Foreign currency gains and losses are reported on a net basis as either Ànance income or Ànance cost depending on whether foreign currency movements are in a net gain or net loss position. j) Leases (i) Lease payments Payments made under operating leases are recognised in proÀt or loss on a straight-line basis over the term of the lease. Lease incentives received are recognised as an integral part of the total lease expense, over the term of the lease.

Minimum lease payments made under Ànance leases are apportioned between the Ànance expense and the reduction of the outstanding liability. The Ànance expense is allocated to each period during the lease term so as to produce a constant periodic rate of interest on the remaining balance of the liability. (ii) Determining whether an arrangement contains a lease At inception of an arrangement, the Association determines whether such an arrangement is or contains a lease.

This will be the case if the following two criteria are met: • the fulÀlment of the arrangement is dependent on the use of a speciÀc asset or assets; and • the arrangement contains a right to use the asset(s).

At inception or upon reassessment of the arrangement, the Association separates payments and other consideration required by such an arrangement into those for the lease and those for other elements on the basis of their relative fair values. If the Association concludes for a Ànance lease that it is impracticable to separate the payments reliably, an asset and a liability are recognised at an amount equal to the fair value of the underlying asset. Subsequently the liability is reduced as payments are made and an imputed Ànance charge on the liability is recognised using the Association’s incremental borrowing rate. k) Income tax The Association is exempt from income tax under Division 50, section 50-15 of the Income Tax Assessment Act 1997. l) Goods and services tax Revenue, expenses and assets are recognised net of the amount of goods and services tax (GST), except where the amount of GST incurred is not recoverable from the taxation authority. In these circumstances, the GST is recognised as part of the cost of acquisition of the asset or as part of the expense.

Receivables and payables are stated with the amount of GST excluded, as the Association reports to the ATO for GST on a cash-basis. The net amount of GST recoverable from, or payable to, the ATO is included as a current asset or liability in the balance sheet.

Cash Áows are included in the statement of cash Áows on a gross basis. The GST components of cash Áows arising from investing and Ànancing activities which are recoverable from, or payable to, the ATO are classiÀed as operating cash Áows. m) Segment reporting An operating segment is a component of the Association that engages in business activities from which it may earn revenues and incur expenses, including revenues and expenses that relate to transactions with any of the other Association’s other components. All operating segments’ operating results are reviewed regularly by the Association’s ofÀce holders to make decisions about resources to be allocated to the segment and to assess its performance, and for which discrete Ànancial information is available. n) New standards and interpretations not yet adopted A number of new standards, amendments to standards and interpretations are effective for annual periods beginning after 1 July 2013, and have not been applied in preparing these consolidated Ànancial statements.

Those which may be relevant to the Association are set out below. The Association does not plan to adopt these standards early. (i) AASB 9 Financial Instruments (2010), AASB 9 Financial Instruments (2009) AASB 9 Financial Instruments (2009) introduces new requirements for the classiÀcation and measurement of Ànancial assets. Under AASB 9 (2009), Ànancial assets are classiÀed and measured based on the business model in which they are held and the characteristics of their contractual cash Áows. AASB 9 (2010) introduces additions relating to Ànancial liabilities. The IASB currently has an active project that may result in limited amendments to the classiÀcation and measurement requirements of AASB 9 and add new requirements to address the impairment of Ànancial assets and hedge accounting.

AASB 9 (2010 and 2009) are effective for annual periods beginning on or after 1 July 2015 with early adoption permitted. The extent of the impact has not been determined by the Association.

5. Segment reporting The Association operates in one geographical location, being Australia and in one industry, being trade union activities for the beneÀt of its members.

6. Financial risk management The Association has exposure to the following risks from their use of Ànancial instruments: a) Credit risk b) Liquidity risk c) Market risk d) Operational risk This note presents information about the Association’s exposure to each of the above risks, their objectives, policies and processes for measuring and managing risk, and their management of capital. Further quantitative disclosures are included throughout these Ànancial statements.

Risk Management Framework The National Executive has overall responsibility for the establishment and oversight of the risk management framework. Risk management policies are established to identify and analyse the risks faced by the Association, to set appropriate risk limits and controls, and to monitor risks and adherence to limits. Risk management policies and systems are reviewed regularly to reÁect changes in market conditions and the Association’s activities. The Association, through its training and management standards and procedures, aims to develop a disciplined and constructive control environment in which all employees understand their roles and obligations. a) Credit risk Credit risk is the risk of Ànancial loss to the Association if a customer or counterparty to a Ànancial instrument fails to meet its contractual obligations, and arises principally from the Association’s receivables from customers and other Ànancial assets. (i) Receivables The Association’s exposure to credit risk is inÁuenced mainly by the individual characteristics of each customer or tenant. Credit evaluations are performed on all tenants of the investment property prior to the signing of a lease agreement and security deposits are required by way of bank guarantees or cash, to be held for the term of all leases. None of the tenants were in arrears at the balance sheet date and there is no indication to management that any of the tenants present a signiÀcant credit risk. All receivables are with tenants in the Australian geographical region and therefore no impairment loss has been recognised at balance date (2013: no impairment loss).

SDA NEWS SPRING 2014 – PAGE 30

SDA FINANCIAL REPORTS 2014 (ii) Cash and cash equivalents The Group held cash and cash equivalents of $1,460,407 at 30 June 2014 (2013: $1,042,785), which represents its maximum credit exposure on these assets. The cash and cash equivalents are held with bank and Ànancial institution counterparties, which are located in Australia. b) Liquidity risk Liquidity risk is the risk that the Association will encounter difÀculty in meeting the obligations associated with its Ànancial liabilities that are settled by delivering cash or another Ànancial asset. The Association’s approach to managing liquidity is to ensure, as far as possible, that it will always have sufÀcient liquidity to meet its liabilities when due, under both normal and stressed conditions, without incurring unacceptable losses or risking damage to the Association’s reputation.

The Association prepares budgets and cash Áow forecasts, which assists it in monitoring cash Áow requirements and optimising its cash return on investments. Typically the Association ensures that it has sufÀcient cash on demand to meet expected operational expenses for a period of at least 120 days, the maximum term of its primary Ànancial assets being term deposits. This excludes the potential impact of extreme circumstances that cannot reasonably be predicted, such as natural disasters. Refer to note 16. c) Market risk Market risk is the risk that changes in market prices, such as foreign exchange rates, interest rates and equity prices will affect the Association’s income or the value of its holdings of Ànancial instruments. The objective of market risk management is to manage and control market risk exposures within acceptable parameters, while optimising the return. (i) Currency risk The Association has limited exposure to currency risks on International Fund transactions (international afÀliation fees and donations) that are denominated in a currency other than the functional currency, being the Australian dollar (AUD). The currencies in which these transactions primarily are denominated are Swiss Francs (CHF) and Singapore dollars (SGD). Refer to note 16 for further details.

The Association uses at its discretion forward exchange contracts (typically 1-3 months) to hedge its currency risk, with maturity dates the same as the due dates of the International Fund transactions. At reporting date there were no forward exchange contracts in place. (ii) Interest rate risk The Association’s interest rate risk arises from its investments in bank bills, term deposits and cash management accounts. Bank bills and term deposits are issued at Àxed rates for terms of between 30 and 120 days. The Association maintains a number of different bank bills and term deposits maturing at regular intervals to smooth Áuctuations in interest rates being offered. The majority of cash reserves are held in term deposits, with cash management bank accounts (with variable interest rates) used to provide liquidity funds at call. d) Operational risk Operational risk is the risk of direct or indirect loss arising from a wide variety of causes associated with the Association’s processes, personnel, technology and infrastructure, and from external factors other than credit, market and liquidity risks such as those arising from legal and regulatory requirements and generally accepted standards of corporate behaviour. Operational risks arise from all of the Association’s operations.

The Association’s objective is to manage operational risk so as to balance the avoidance of Ànancial losses and damage to the Association’s reputation with overall cost effectiveness and to avoid control procedures that restrict initiative and creativity.

The primary responsibility for the development and implementation of controls to address operational risk is assigned to senior management within the Association. This responsibility is supported by the development of overall Association standards for the management of operational risk in the following areas: • Requirements for appropriate segregation of duties, including the independent authorisation of transactions; • Requirements for the reconciliation and monitoring of transactions; • Compliance with regulatory and other legal requirements; • Documentation of controls and procedures; • Requirements for the periodic assessment of operational risks faced, and the adequacy of controls and procedures to address the risks identiÀed; • Requirements for the reporting of operational losses and proposed remedial action; • Development of contingency plans; • Training and professional development; • Ethical and business standards; • Risk mitigation, including insurance where this is effective.

Capital management The Association’s policy is to maintain a strong capital base so as to maintain member, creditor and market conÀdence and to sustain future development of the union’s activities. The National Executive monitors the return on capital and seeks to maintain a conservative position between higher returns and the advantages and security afforded by a sound capital position.

There were no changes in the Association’s approach to capital management during the year, and the Association is not subject to externally imposed capital requirements.

7. Other income Note 2014 $ 2013 $ 53 Queen Street, Melbourne - Rental income from investment property 17 1,093,609 1,037,208 53 Queen Street, Melbourne - Fair value increment 12 1,100,000 ACTU trust distributions 100,609 238,654 Branch Reimbursements 21 582,388 CARE director’s fees 53,543 34,892 REST director’s fees 21 134,554 1,385 Other income 1,966,088 2,410,754 8. Auditor’s remuneration Audit services Auditors of the Association KPMG Australia: 24,284 27,465 Audit and review of Ànancial reports 24,284 27,465 Other services Auditors of the Association KPMG Australia: 2,460 6,616 Other assurance services 2,460 6,616 26,744 34,081 TOTAL AUDITORS’ REMUNERATION 9. Cash and cash equivalents 2014 $ 2013 $ Cash at bank 138,487 145,206 Cash management accounts 1,197,222 830,074 124,698 67,505 Term deposits 1,460,407 1,042,785 Cash and cash equivalents in the statement of cash Áows comprise the following: Cash and cash equivalents 1,460,407 1,042,785 1,460,407 1,042,785 The Association’s exposure to interest rate risk and a sensitivity analysis for Ànancial assets is disclosed in note 16.

10. Receivables Accrued income 133,768 167,418 Prepayments 56,496 46,214 238,022 134,493 Sundry debtors (includes related parties - note 21) 428,286 348,125 The Association’s exposure to credit and currency risks, and impairment losses related to receivables is disclosed in note 16.

11. Other Ànancial assets 25,300,000 25,100,000 Term deposits 25,300,000 25,100,000 Term deposits have stated interest rates of 3.40 percent (2013: 3.70 to 4.10 percent) and mature in 120 days or more.

The Association’s exposure to credit and interest rate risk is disclosed in note 16.

During the year ended 30 June 2014, interest income of $812,098 (2013: $959,317) in respect of Ànancial assets not at fair value through proÀt and loss.

12. Investment property (a) Reconciliation of carrying amount Investment property comprises a commercial property located at 53 Queen Street, Melbourne. The Association retains possession of levels 6 and 7 as its registered head ofÀce and leases the remaining Áoors to third parties. Each of the leases contains an initial non-cancellable period of a minimum of three years, with Àxed percentage annual rent increases. Some lease incentives were paid and are being amortised over the period of the leases. Subsequent renewals are negotiated with the lessee and on average renewal periods are 4 years. No contingent rents are paid.

Further information about these leases are contained in Note 17.

Property 2014 $ 2013 $ Balance at 1 July 15,300,000 14,200,000 Fair value adjustment (refer below) 1,100,000 Balance at 30 June 15,300,000 15,300,000 Lease incentives Balance at 1 July 32,296 32,296 (32,296) (30,323) Amortisation of lease incentives 1,973 Balance at 30 June 15,300,000 15,301,973 (b) Measurement of fair value (i) Fair value hierarchy The fair value of investment property was determined by external, independent property valuers, having appropriate recognised professional qualiÀcations and recent experience in the location and category of the property being valued.

The independent valuers provide the fair value of the Association’s investment property at least every two years. In years where external, independent valuations are not obtained, these are substituted with Association management performing internal valuations utilising publicly available market data for properties with similar characteristics to the Association’s investment property.

The fair value measurement for investment property of $15,300,000 was determined at 30 June 2013 by RJ Scrivener, Director and certiÀed practising valuer of Urbis, a registered independent appraiser having an appropriate recognised professional qualiÀcation in Australian Property Institute and recent experience in the location and category of the property being valued. The OfÀcers of the Association maintained the fair value of $15,300,000 at 30 June 2014 having regard to recent market transactions for similar properties in the same location as the Association’s investment property, using midpoint of the capitalisation of net income and direct comparison approaches for 53 Queen Street, Melbourne. The fair value measurement has been categorised as a Level 3 fair value based on the inputs to the valuation technique used (see Note 2(d)). (ii) Level 3 fair value – valuation technique and signiÀcant unobservable inputs The following shows the valuation technique used in measuring the fair value of investment property, as well as the signiÀcant unobservable inputs used.

Valuation technique Capitalisation approach: The valuation model involves estimating the potential sustainable Gross Market Income of a property from which annual outgoings are deducted to derive the Net Market Income. This Net Market Income is then capitalised at an appropriate rate derived from analysis of comparable sales evidence. Adjustments to the capitalised value are then made for items including proÀt rent/shortfall derived from passing rents which are above or below market, letting up allowance over vacant areas including foregone rental and outgoings over the assumed letting up period and outstanding lease incentives including rent free periods.

SigniÀcant unobservable inputs • Capitalisation rate (7.75%).

Inter-relationship between key unobservable inputs and fair value measurement The estimated fair value would increase (decrease) if: • The capitalisation rate were lower (higher).

13. Property, plant and equipment Cost Balance at 1 July 2012 Acquisitions Balance at 30 June 2013 Balance at 1 July 2013 Acquisitions Impairments Balance at 30 June 2014 Depreciation and impairment losses Balance at 1 July 2012 Depreciation expense for the year Balance at 30 June 2013 Balance at 1 July 2013 Depreciation expense for the year Impairments Balance at 30 June 2014 Carrying amounts At 1 July 2012 At 30 June 2013 At 1 July 2013 At 30 June 2014 14. Trade and other payables

Furniture and Àttings $ 201,041 10,671 211,712 211,712 7,418 (32,507) 186,623

Motor Vehicles $ 92,189 92,189 92,189 92,189

Leasehold Improvements $ 331,840 331,840 331,840 61,877 393,717

Total $ 625,070 10,671 635,741 635,741 69,295 (32,507) 672,529

147,988 13,557 161,545 161,545 14,754 (32,507) 143,792

62,038 6,648 68,686 68,686 5,153 73,839

99,552 16,592 116,144 116,144 22,555 138,699

309,578 36,797 346,375 346,375 42,462 (32,507) 356,330

53,053 50,167 50,167 42,831

30,151 23,503 23,503 18,350

232,288 215,696 215,696 255,018

315,492 289,366 289,366 316,199

2014 $ 250,896 31,321 124,698 406,915

2013 $ 257,723 27,611 67,505 352,839

308,239 90,289 398,528

289,558 84,935 374,493

267,539 212,768 480,307 878,835

240,858 200,047 440,905 815,398

13,870

6,608

13,870

2,297,379 (2,210,480) 86,899 93,507

2,463,350 (2,934,258) (470,908)

-

Sundry creditors PAYG withholding tax payable Tenant security deposit The Association’s exposure to liquidity risk is disclosed in note 16 (b).

15. Employee beneÀts Current liability OfÀce holders Liability for long service leave Liability for annual leave Employees other than ofÀce holders Liability for long service leave Liability for annual leave

Non-current liability Employees other than ofÀce holders Liability for long-service leave OfÀce holders and other employees Present value of funded obligations Fair value of plan assets - funded Recognised liability for deÀned beneÀt obligations Non-current asset OfÀce holders and other employees Present value of funded obligations Fair value of plan assets - funded Recognised (asset) for deÀned beneÀt obligations

SDA NEWS SPRING 2014 – PAGE 31

SDA FINANCIAL REPORTS 2014 The Association makes contributions to the SDA (Victoria Branch) beneÀt superannuation plan, a sub-plan of the Retail Employees’ Superannuation Trust, that provide deÀned beneÀt amounts for ofÀce holders and other employees upon retirement.

The Association has determined that, in accordance with the terms and conditions of the deÀned beneÀt plans, and in accordance with statutory requirements (such as minimum funding requirements) of the plan of the respective jurisdictions, the present value of refunds or reductions in future contributions is not lower than the balance of the fair value of the plan assets less the total present value of obligations. As such, no decrease in the deÀned beneÀt asset is necessary at 30 June 2014 (30 June 2013: no decrease in the deÀned beneÀt asset).

The following tables analyse plan assets, present value of deÀned beneÀt obligations, expense recognised in proÀt or loss, actuarial assumptions and other information for the plan.

Movements in the net asset for deÀned beneÀt obligations recognised in the statement of Ànancial position: Note 2014 $ 2013 $ Net liability/(asset) for deÀned beneÀt obligations at 1 July 86,899 208,446 Contributions paid into the plan (187,876) (151,751) Amount recognised in other comprehensive income - actuarial (gains) losses (507,317) (103,565) Expenses recognised in statement of comprehensive income with personnel expenses Net liability/(asset) for deÀned beneÀt obligations at 30 June

137,386

133,769

(470,908)

86,899

Movement in the present value of the deÀned beneÀt obligations DeÀned beneÀt obligations at 1 July 2,297,379 2,258,545 Current service cost 137,686 130,495 Interest cost 94,784 72,912 Actuarial (gains)/losses recognised in other comprehensive income (see below) 24,373 60,710 BeneÀts paid by the plan (41,825) (181,238) (49,047) (44,045) Taxes, premium & expenses paid 2,463,350 2,297,379 DeÀned beneÀt obligations at 30 June All beneÀts are vested at the end of the reporting period.

Movement in the present value of plan assets Fair value of plan assets at 1 July 2,210,480 2,050,099 Expected return on plan assets at discount rate 95,084 69,638 Actuarial gains/(losses) recognised in other comprehensive income (see below) 531,690 164,275 Contributions paid 187,876 151,751 BeneÀts paid (41,825) (181,238) (49,047) (44,045) Taxes and expenses 2,934,258 2,210,480 Fair value of plan assets at 30 June Expense recognised in proÀt or loss Current service costs 137,686 130,495 (300) 3,274 Net interest costs 137,386 133,769 18 Re-measurements of net deÀned beneÀt liability/asset Loss/(Gain) on DeÀned BeneÀt Obligation 24,373 60,710 (531,690) (164,275) Loss/(Gain) on Assets (507,317) (103,565) Recognised in Other comprehensive (income)/expense Actuarial gains (and losses) recognised in other comprehensive income Cumulative amount at 1 July (572,642) (676,207) 507,317 103,565 Recognised during the period (65,325) (572,642) Cumulative amount at 30 June The major categories of plan assets as a percentage of total fund assets are as follows: 2014 2013 Australian Equity 20% 24% International Equity 30% 31% Fixed Income 10% 12% Property 11% 9% Cash 6% 6% Other 23% 18% Actuarial assumptions Principal actuarial assumptions at the reporting date (expressed as weighted averages): Discount rate at 30 June 3.50% 3.75% Future salary increases 4.00% 4.00% Sensitivity analysis The calculation of the deÀned beneÀt obligation is sensitive to the assumptions set out above. The following table summarises how the impact on the deÀned beneÀt obligation at the end of the reporting period would have increased (decreased) as a result of a change in the respective assumptions by one percent.

Additional DBO for a 1% decrease in the discount rate (248) (225) Additional DBO for a 1% increase in the discount rate 171 220 The above sensitivities are based on the average duration of the beneÀt obligation determined at the date of the last full actuarial valuation at 1 July 2013 and are applied to adjust the deÀned beneÀt obligation at the end of the reporting period for the assumptions concerned. Whilst the analysis does not take account of the full distribution of cash Áows expected under the plan, it does provide an approximation to the sensitivity of the assumptions shown.

Historical information 2014 $ 2013 $ 2012 $ 2011 $ 2010 $ Present value of the deÀned beneÀt obligation 2,463,350 2,297,379 2,258,545 2,046,200 2,122,605 (2,934,258) (2,210,480) (2,050,099) (2,199,441) (2,210,909) Fair value of plan assets - funded 86,899 208,446 (153,241) (88,304) Recognised liability/(asset) for deÀned beneÀt obligation (470,908) Funding The plan is fully funded by the Association. The funding requirements are based on the plan fund’s actuarial measurement framework set out in the funding policies of the plan. The funding is based on a separate actuarial valuation for funding purposes for which the assumptions may differ from the assumptions above. Employees are not required to contribute to the plan.

The Association expects to contribute $134,121 to its deÀned beneÀt superannuation funds during the year ended 30 June 2014.

16. Financial instruments (a) Credit risk Exposure to credit risk The carrying amount of the Association’s Ànancial assets represents the maximum credit exposure. The Association’s maximum exposure to credit risk at the reporting date was: Carrying amount Note 2014 $ 2013 $ Current Cash and cash equivalents 9 1,460,407 1,042,785 Receivables 10 428,286 348,125 25,300,000 25,100,000 Other Ànancial assets 11 27,188,693 26,490,910 Impairment losses None of the Association’s receivables are past due (2013: nil) and based on historic default rates and the minimal credit risk, the Association believes no impairment allowance is necessary. The other Ànancial assets are all bank bills and term deposits issued by the Commonwealth Bank of Australia and the Association believes no impairment allowance is necessary. At 30 June 2014 the Association does not have any collective impairments on its cash and cash equivalents, receivables or other Ànancial assets (2013: nil). All receivables are in the Australia geographic region. (b) Liquidity risk The carrying amount of the Association’s Ànancial liabilities is represented by trade and other payables (note 14). The carrying amounts approximate contractual cashÁows and all are due in 3 months or less (2013: 3 months or less). The Association has adequate Ànancial assets to meet these liabilities and assesses liquidity risk as minimal.

(c) Currency risk International Fund transactions requiring settlement in foreign currencies represent the carrying amount and maximum exposure to currency risk. The Association has no contractual obligations (trade payables or receivables) or forward exchange contracts in place at reporting date (2013: nil). (d) Interest rate risk ProÀle At the reporting date the interest rate proÀle of the Association’s interest-bearing Ànancial instruments was: Note Effective Carrying interest rate amount $ 2014 Financial assets Cash and cash equivalents (Àxed and variable rates) 9 1.28% 1,460,407 Other Ànancial assets (Àxed rate) 11 3.40% 25,300,000

26,760,407 2013 Financial assets Cash and cash equivalents (Àxed and variable rates) 9 1.40% 1,042,785 Other Ànancial assets (Àxed rate) 11 3.91% 25,100,000 26,142,785 Fair value sensitivity analysis for Àxed rate instruments The Association does not account for any Àxed and variable rate Ànancial assets at fair value through proÀt or loss.

Therefore a change in interest rates at the reporting date would not affect proÀt or loss.

Fair value sensitivity analysis for variable rate instruments Variable rate instruments consist of cash management bank accounts, shown in cash and cash equivalents (note 9).

A change of 100 basis points in interest rates at the reporting date would have increased (decreased) equity and proÀt or loss by the amounts shown below. This analysis assumes that all other variables remain constant. The analysis is performed on the same basis for 2013.

ProÀt or loss 100bp increase 100bp decrease 30 June 2014 Cash management accounts 11,972 (11,972) 30 June 2013 Cash management accounts 8,301 (8,301) Fair values The fair value of the Association’s assets and liabilities as at 30 June 2014 approximate their carrying amounts shown in the statement of Ànancial position.

17. Operating leases Leases as lessor The Association leases out its investment property under operating leases (see note 12). The future minimum lease income under non-cancellable leases are as follows: Note 2014 $ 2013 $ Less than one year 960,983 793,068 Between one and Àve years 1,908,029 1,416,894 More than Àve years 437,479 3,306,491 2,209,962 During the year, $1,093,609 was recognised as rental income in proÀt or loss (2013: $1,037,208).

18. Controlled entities Parent entity The Association comprises the Shop, Distributive and Allied Employees’ Association National Account and the International Fund.

2014 2013 Controlled Entity Ordinary shares % % WT Travel Pty Ltd 100 100 WT Travel Pty Ltd, an Australian controlled entity, was purchased by the Shop, Distributive and Allied Employees’ Association National Executive on 30 September 1993. It formerly traded as a travel agency, but is currently a dormant company. Given WT Travel is a dormant company and its results and Ànancial position at 30 June 2014 are nil, consolidated accounts are not prepared.

19. Personnel expenses Holders of ofÀce: Wages and salaries expense Holiday leave expense Long service leave provision (decrease) / increase Subtotal employee expenses - holders of ofÀce Employees other than ofÀce holders: Wages and salaries expense Holiday leave expense Long service leave provision (decrease) / increase Subtotal employee expenses - other than ofÀce holders Other employee expenses Payroll tax expense Expenses related to deÀned beneÀt plan Other superannuation expense Workcover expense Fringe beneÀts tax expense Subtotal - Other employee expenses Total employee expenses 20. Reconciliation of cash Áows from operating activities ProÀt for the period Adjustment for: Amortisation of lease incentives Depreciation Fair value (increment) / decrement on investment property (ProÀt)/Loss on disposal of property, plant and equipment Actuarial gains/(losses) recognised in equity on deÀned beneÀt plan Operating proÀt before changes in working capital & provisions Change in accrued income Change in prepayments Change in sundry debtors Change in pension asset/(liability) Change in trade and other payables Change in provisions and employee beneÀts Net cash from operating activities 21. Related party disclosures Branches The Association received from its branches the following income:

Newcastle New South Wales Queensland South Australia Tasmania Victoria Western Australia

SDA NEWS SPRING 2014 – PAGE 32

Note

15

2014 $ 238,288 19,857 18,681 276,826

2013 $ 229,712 19,142 24,690 273,544

928,179 75,046 33,944 1,037,169

818,032 64,302 34,609 916,943

66,353 137,386 1,518 13,753 9,681 228,691 1,542,686

57,407 133,769 1,671 10,267 10,580 213,694 1,404,181

2014 $ 648,358

2013 $ 3,766,659

1,973 42,462 (1,385) 507,317 1,198,725 33,650 (10,282) (103,529) (557,807) 54,076 70,699 685,532

30,323 36,797 (1,100,000) 103,565 2,837,344 (41,724) (19,582) 31,565 (121,547) 190,724 104,635 2,981,415

AfÀliation fee contributions 2014 $ 2013 $ (325,034) 428,190 1,556,083 1,759,951 966,173 1,100,233 646,391 738,474 170,595 169,565 1,233,062 1,390,841 605,605 621,445 4,852,875 6,208,699

SDA FINANCIAL REPORTS 2014 The Association received from its branches the following expense reimbursements: 2014 Newcastle New South Wales Queensland South Australia Tasmania Victoria Western Australia

2013 Newcastle New South Wales Queensland South Australia Tasmania Victoria Western Australia

ACTU IR Campaign Levy $

ALP Election Donation $

100% Pay Week of Action $

Induction Materials $

Intranet

TOTAL

$

$

13,128 61,772 35,798 27,560 6,192 49,026 22,113 215,589

15,224 71,632 41,512 31,959 7,180 56,851 25,642 250,000

4,871 22,922 13,284 10,227 2,298 18,192 8,206 80,000

-

2,324 10,058 5,829 4,831 1,018 8,730 4,009 36,799

35,547 166,384 96,423 74,577 16,688 132,799 59,970 582,388

ACTU IR Campaign Levy $

ALP Election Donation $

100% Pay Week of Action $

Induction Materials $

Intranet

TOTAL

$

$

12,815 60,040 37,179 26,469 6,082 48,692 20,802 212,079

-

-

1,618 7,615 4,413 3,397 763 6,043 2,726 26,575

-

14,433 67,655 41,592 29,866 6,845 54,735 23,528 238,654

At 30 June 2014, amounts of $2,135+GST and $981+GST were owed by the Victoria and Western Australia branches respectively with regard to intranet expense reimbursements above (2013: $nil). These amounts are included in sundry debtors in note 10.

The amounts paid or payable by the Association to its branches for expenses incurred on its behalf: Target seat coordinator Other expense employment reimbursements reimbursements 2014 $ 2013 $ 2014 $ 2013 $ Newcastle 18,416 51,847 1,305 8,735 New South Wales 45,000 49,333 50,355 5,332 Queensland 51,597 108,238 3,716 South Australia 37,261 3,636 Tasmania 313 Victoria 22,716 12,977 339 35,734 Western Australia 13,278 7,112 1,666 75,128 151,007 229,507 94,642 128,878 AfÀliates The Association received trust distribution income of $100,609 (2013: nil) from the ACTU as an afÀliate. In accordance with the ACTU “Constitution, Rules and Standing Orders” this amount was acquitted by the ACTU as additional afÀliation fees, included below.

The Association made the following payments to its afÀliates: AfÀliation fees 2014 $ 2013 $ ACTU afÀliation fees 850,219 719,371 Union Network International afÀliation fees 641,719 531,691 1,491,938 1,251,062 Donations ACTU (ITUC Congress Fundraising) 500 ACTU (Worksite for Schools program) 12,500 20,000 ALP (2013 Federal Election Campaign) 500,000 ALP (Shorten Leadership Campaign) 10,000 ALP (WA Branch Senate Election Campaign) 50,000 Union Network International (UNI APRO Activities Fund donation) 118,494 101,539 691,494 121,539 Campaign levy The Association contributed $431,178 (2013: $424,158) towards the ACTU IR Campaign Fund, and also made total payments of $4,965 (2013: $2,182) to the ACTU for legal, consulting and training.

Other related parties Key management personnel The following were key management personnel of the Association during the Ànancial year: Name Position Gerard Dwyer OfÀcer – National President Joseph Bullock OfÀcer – National Vice-President Joseph de Bruyn OfÀcer – National Secretary-Treasurer Ian Blandthorn OfÀcer – National Assistant Secretary Michael Donovan National Executive Member Paul GrifÀn National Executive Member Chris Ketter National Executive Member Barbara Nebart National Executive Member Peter Malinauskas National Executive Member Key management personnel remuneration The National President and Vice-President were paid honorariums for their services while the National SecretaryTreasurer and Assistant Secretary are salaried employees of the Association and all are included as key management personnel. In addition to their salaries and fees, the Association also provides motor vehicles to the National SecretaryTreasurer and Assistant Secretary and contributes to a post-employment deÀned beneÀt superannuation fund on their behalf. As the National Executive Members are not paid by the Association, there are only 4 remunerated ofÀcer holders of the Association.

The Association pays or reimburses travel, accommodation and meal allowances for the National OfÀcers and the National Executive Members whilst attending National Council and/or National Executive meetings or performing other Association duties. The National OfÀcers and National Executive Members are allowed to keep any frequent Áyer points or rewards earned as a result of such travel, the value of which cannot be determined.

Key management personnel compensation to the National OfÀcers comprised: 2014 $ 2013 $ Short-term employee beneÀts 316,843 308,886 Post-employment beneÀts 49,316 37,328 Other long term beneÀts 6,454 6,221 372,613 352,435 Note 15 discloses liabilities for annual leave and long service leave for ofÀce holders.

The remuneration by ofÀcer comprised: Key Management Personnel Gerard Dwyer Joseph Bullock Joseph de Bruyn Ian Blandthorn Assistant Remuneration for 2013 President Vice-President SecretarySecretary Treasurer $ $ $ $ Short-term employee beneÀts Salary (including annual leave taken) 133,532 115,322 Honorarium 5,000 3,500 Annual leave accrued 5,216 319 Non-monetary (motor vehicle & parking) 21,794 24,203 Total short-term employee beneÀts 5,000 3,500 160,542 139,844 Post-employment beneÀts Superannuation 20,030 17,298 Total post-employment beneÀts 20,030 17,298 Other long-term beneÀts Long-service leave 3,338 2,883 Total other long-term beneÀts 3,338 2,883 Total 5,000 3,500 183,910 160,025

Total $ 248,854 8,500 5,535 45,997 308,886 37,328 37,328 6,221 6,221 352,435

Key Management Personnel Remuneration for 2014 Short-term employee beneÀts Salary (including annual leave taken) Honorarium Annual leave accrued Non-monetary (motor vehicle & parking) Total short-term employee beneÀts Post-employment beneÀts Superannuation (deÀned beneÀt) Superannuation (REST SF payments) Total post-employment beneÀts Other long-term beneÀts Long-service leave Total other long-term beneÀts Total

Gerard Dwyer Joseph Bullock Joseph de Bruyn Ian Blandthorn Assistant President Vice-President SecretarySecretary Treasurer $ $ $ $ 5,000 -

3,500 -

138,518 7,156

119,627 (2,936)

Total $ 258,145 8,500 4,220

-

-

25,148

20,830

45,978

5,000

3,500

170,822

137,521

316,843

-

-

20,778

17,944

38,722

-

-

7,878

2,716

10,594

-

-

28,656

20,660

49,316

5,000

3,500

3,463 3,463 202,941

2,991 2,991 161,172

6,454 6,454 372,613

Apart from the details disclosed in this note, no ofÀcer has entered into any material transactions with the Association since the end of the previous Ànancial year and there were no material contracts involving ofÀcers’ interests existing at year-end.

Other related parties Contributions to a post-employment deÀned beneÀt fund managed by the Retail Employees’ Superannuation Trust (“REST”) on behalf of employees are disclosed in note 15.

The Association receives director fees from REST for the services performed by three representatives of the Association, Mr Joseph de Bruyn, Mr Ian Blandthorn and Ms Sue-Anne Burnley. These are disclosed in note 7. The directors personally receive Superannuation Guarantee (SG) payments from REST for the director fees, these are disclosed in post-employment beneÀts in note 21 for key management personnel.

22. Subsequent events There has not arisen in the interval between the end of the Ànancial year and the date of this report any item, transaction or event of a material and unusual nature likely, in the opinion of the ofÀcer holders of the Association, to affect signiÀcantly the operations of the Association, the results of those operations, or the state of affairs of the Association in future Ànancial years.

23. Information to be provided to Members or General Manager In accordance with the requirements of subsection 272(5) of the RO Act, the attention of members is drawn to the provisions of subsections (1), (2) and (3) of section 272, which states as follows: 1. A member of a reporting unit, or the General Manager, may apply to the reporting unit for speciÀed prescribed information in relation to the reporting unit to be made available to the person making the application.

2. The application must be in writing and must specify the period within which, and the manner in which, the information is to be made available. The period must not be less than 14 days after the application is given to the reporting unit.

3. A reporting unit must comply with an application made under subsection (1).

24. Economic Dependency The Association is not reliant on the agreed Ànancial support of another reporting unit to continue on a going concern basis (as noted in the Committee of Management Statement). The Association has not agreed to provide Ànancial support to ensure another reporting unit, branch or afÀliate has the ability to continue as a going concern.

INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF THE SHOP, DISTRIBUTIVE AND ALLIED EMPLOYEES’ ASSOCIATION Report on the Ànancial report We have audited the accompanying Ànancial report of the Shop, Distributive and Allied Employees’ Association (the Association), which comprises the statement of Ànancial position as at 30 June 2014, and the statement of proÀt or loss and other comprehensive income, statement of changes in equity and statement of cash Áows for the year ended Operating Report, the Committee of Management Statement and CertiÀcate by the National Secretary-Treasurer on that date, notes 1 to 24 comprising a summary of signiÀcant accounting policies, other explanatory information, the Operating Report, the Committee of Management Statement and CertiÀcate by the National Secretary-Treasurer.

National Executive’s responsibility for the Ànancial report The National Executive of the Association are responsible for the preparation and fair presentation of the Ànancial report in accordance with Australian Accounting Standards and the Fair Work (Registered Organisations) Act 2009 and for such internal control as the National Executive determine is necessary to enable the preparation of the Ànancial report that is free from material misstatement, whether due to fraud or error.

Auditor’s responsibility Our responsibility is to express an opinion on the Ànancial report based on our audit. We conducted our audit in accordance with Australian Auditing Standards. These Auditing Standards require that we comply with relevant ethical requirements relating to audit engagements and plan and perform the audit to obtain reasonable assurance whether the Ànancial report is free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the Ànancial report. The procedures selected depend on the auditor’s judgement, including the assessment of the risks of material misstatement of the Ànancial report, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the Association’s preparation of the Ànancial report that gives a true and fair view in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Association’s internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by the members of the National Executive, as well as evaluating the overall presentation of the Ànancial report.

We performed the procedures to assess whether in all material respects the Ànancial report presents fairly, in accordance with Australian Accounting Standards and the Fair Work (Registered Organisations) Act 2009, a view which is consistent with our understanding of the Association’s Ànancial position and of its performance.

We believe that the audit evidence we have obtained is sufÀcient and appropriate to provide a basis for our audit opinion.

Independence In conducting our audit we have complied with the independence requirements of the Accounting Professional and Ethical Standards Board.

Auditor’s opinion In our opinion the Shop, Distributive and Allied Employees’ Association general purpose Ànancial report for the year ended 30 June 2014 presents fairly in accordance with applicable Australian Accounting Standards and other professional reporting requirements in Australia and the requirements of the Fair Work (Registered Organisations) Act 2009.

KPMG ANTONI CINANNI, PARTNER MELBOURNE, 19TH AUGUST, 2014 KPMG, AN AUSTRALIAN PARTNERSHIP AND A MEMBER FIRM OF THE KPMG NETWORK OF INDEPENDENT MEMBER FIRMS AFFILIATED WITH KPMG INTERNATIONAL COOPERATIVE (“KPMG INTERNATIONAL”), A SWISS ENTITY. LIABILITY LIMITED BY A SCHEME APPROVED UNDER PROFESSIONAL STANDARDS LEGISLATION. Lead auditor’s independence declaration to the members of the Shop, Distributive and Allied Employees’ Association I declare that, to the best of my knowledge and belief, in relation to the audit for the Ànancial year ended 30 June 2014 there have been: • no contraventions of any applicable code of professional conduct in relation to the audit.

KPMG ANTONI CINANNI, PARTNER MELBOURNE, 18TH AUGUST, 2014

SDA NEWS SPRING 2014 – PAGE 33

SDA FINANCIAL REPORTS 2014

SHOP, DISTRIBUTIVE AND ALLIED EMPLOYEES’ ASSOCIATION, NSW BRANCH FINANCIAL REPORT FOR THE YEAR ENDED 30 JUNE 2014 INDEPENDENT AUDITORS’ REPORT TO THE MEMBERS OF SHOP, DISTRIBUTIVE AND ALLIED EMPLOYEES’ ASSOCIATION, NSW BRANCH Report on the Financial Report We have audited the Ànancial report of Shop, Distributive and Allied Employees’ Association NSW Branch (“the Association”) for the Ànancial year ended 30 June 2014, consisting of the Statement of Comprehensive Income, Statement of Financial Position, Statement of Changes in Equity, Statement of Cash Flows for the year ended on that date, accompanying notes 1 to 15, the Operating Report and Committee of Management Statement. The Committee of Management is responsible for the Ànancial report. We have conducted an independent audit of the Ànancial report in order to express an opinion on it to the members of the Association.

The Ànancial Report has been prepared for distribution to the members of the Association for the purpose of fulÀlling the requirements of subsections 265(1) and 265(5) of the Registered Organisations Act 2009 in relation to the Ànancial report and independent auditor’s report.

Committee of Management’s Responsibility for the Financial Report The Committee of Management of the Shop, Distributive and Allied Employees’ Association NSW Branch is responsible for the preparation and fair presentation of the Ànancial report in accordance with Australian Accounting Standards (including the Australian Accounting Interpretations) and compliance with Part 3 of Chapter 8 of the Registered Organisations Act 2009.

This responsibility includes establishing and maintaining internal control relevant to the preparation and fair presentation of the Ànancial report that is free from material misstatement, whether due to fraud or error; selecting and applying appropriate accounting policies; and making accounting estimates that are reasonable in the circumstances.

Auditors’ Responsibility Our responsibility is to express an opinion on the Ànancial report based on our audit. We conducted our audit in accordance with Australian Auditing Standards. These Auditing Standards require that we comply with relevant ethical requirements relating to audit engagements and plan and perform the audit to obtain reasonable assurance whether the Ànancial report is free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the Ànancial report.

The procedures selected depend on the auditors’ judgment, including the assessment of the risks of material misstatement of the Ànancial report, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity’s preparation and fair presentation of the Ànancial report in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by the Council, as well as evaluating the overall presentation of the Ànancial report.

We believe that the audit evidence we have obtained is sufÀcient and appropriate to provide a basis for our audit opinion.

Independence In conducting our audit, we followed and complied with the applicable independence requirements of Australian professional ethical pronouncements and the Registered Organisations Act 2009.

We declare to the best of our knowledge and belief that the auditor’s independence declaration, set out on page 6 of the Ànancial report, has not changed as at the date of providing our audit opinion.

Audit Opinion In our opinion the general purpose Ànancial report is presented fairly in accordance with: 1. applicable Australian Accounting Standards (including the Australian Accounting Interpretations) and 2. in relation to recovery of wages activity: a. that the scope of the audit encompassed recovery of wages activity; 3. any other requirements imposed by these reporting guidelines or Part 3 of Chapter 8 of the Registered Organisations Act 2009.

4. The use of the Going Concern basis by the Committee of Management is appropriate.

Joseph Paul Grech Grech Smith Bridle Partner Chartered Accountants Registered Company Auditor, Number 4327 Holder of Current Practicing CertiÀcate and Member of Chartered Accounts Australia And New Zealand, Number 24310 Dated at Sydney this 22nd day of August 2014

DECLARATION I, Joseph Paul Grech, being the auditor of the Shop, Distributive and Allied Employees’ Association NSW Branch declare that: a) I am an approved auditor, and b) I am a person who is a member of Chartered Accountants Australia and New Zealand; and c) I hold a current Public Practice CertiÀcate.

Joseph Paul Grech Grech Smith Bridle Partner Chartered Accountants Registered Company Auditor, Number 4327 Holder of Current Practicing CertiÀcate and Member of Chartered Accounts Australia And New Zealand, Number 24310 Dated at Sydney this 22nd day of August 2014

AUDITOR’S INDEPENDENCE DECLARATION FOR THE YEAR ENDED 30 JUNE 2014 TO THE COMMITTEE OF MANAGEMENT OF SHOP, DISTRIBUTIVE AND ALLIED EMPLOYEES’ ASSOCIATION, NSW BRANCH I declare that, to the best of my knowledge and belief, during the year ended 30 June 2014 there has been: i) no contraventions of the auditor independence requirements in relation to the audit; and ii) no contravention of any applicable code of professional conduct in relation to the audit.

Joseph Paul Grech Grech Smith Bridle Registered Company Auditor, Number 4327 Chartered Accountants Holder of Current Practicing CertiÀcate and Member of Chartered Accounts Australia And New Zealand, Number 24310 Dated at Sydney this 22nd day of August 2014

OPERATING REPORT FOR THE YEAR ENDED 30 JUNE 2014 Principal activities The principal activities of the reporting unit are preserving and enhancing the wages and working conditions of its members, and the promotion of the interests and rights of workers. In addition to industrial representation, members are also provided with a range of services and beneÀts.

New enterprise agreements were negotiated with a wide range of employers during the year. These agreements all resulted in improved wages and working conditions for the employees covered by them.

SigniÀcant changes in Ànancial affairs There were no signiÀcant changes in the nature of the activities and Ànancial affairs in the Association during the Ànancial year.

Rights of members to resign Persons eligible to do so under the rules of the Association were actively encouraged to join the Association. Pursuant to s174 of the Fair Work (Registered Organisations) Act 2009 (RO Act), members could resign from the Association by written notice to the appropriate Branch of the Association.

One ofÀcer & employee, who is a superannuation fund trustee or director of a company that is a superannuation fund trustee One representative of the Association holds a position as the Alternate Director of the Retail Employees’ Superannuation Trust (“REST”). Gerard Dwyer Acts as the alternate Director for Joe de Bruyn.

Directors Alternates Mr Joe de Bruyn Mr Gerard Dwyer Number of Members Membership as at 30 June 2014 was 57,310 (2013: 58,202).

Number of employees At 30 June 2014, there were no persons employed by the NSW Branch of the Association.

AfÀliations & Directorships Detailed below are the afÀliations of the NSW Branch of the Association: – Australian Labor Party, NSW Branch – Australian Labor Party, ACT Branch – Unions NSW – South Coast Labor Council – Unions ACT The NSW Branch Secretary-Treasurer of the Association is on the Administrative Committee of the Australian Labor Party, NSW Branch and is also an Executive Member of Unions NSW. A representative of the NSW Branch of the Association is a member of the Service Skills NSW Wholesale, Retail and Personal Services Committee.

Names of Committee of Management members and period positions held during the Ànancial year The names of the members of the Committee of Management of the NSW Branch of the Association at any time during, or since the end of the Ànancial year are: Name G. Donnelly G. Cutcher G. Dwyer B. Smith C. Cassell M. Hagley P. Avellino M. Dumycz B. Logue M. Long

Experience Member since 18 June 1991 Member since 22 February 1995 Member since 4 June 1996 Member since 10 May 2005 Member since 4 February 2003 Member since 9 February 1999 Member since 28 September 2010 Member since 28 September 2010 Member since 16 December 2010 Member since 27 February 2007

Position Branch President Branch Vice President Branch Secretary - Treasurer Branch Assistant Secretary - Treasurer Branch Trustee Branch Trustee Branch Councillor (Branch membership) Branch Councillor (Branch membership) Branch Councillor (Branch membership) Branch Councillor (Branch membership) Resigned 18 February 2014 C. Mills Member since 4 February 2003 Branch Councillor (Branch membership) M. Ponting Member since 9 February 2007 Branch Councillor (Branch membership) Resigned 19 November 2013 S. Barros Member since 16 February 2010 Branch Councillor (Branch membership) N. Rizk Member since 28 September 2010 Branch Councillor (Branch membership) H. Thomas Member since 4 February 2003 Branch Councillor (Branch membership) D. Robins Member since 28 September 2010 Branch Councillor (Other Industries and Vocational Grouping membership) S. Sammak Member since 18 February 2014 Branch Councillor (Drug and Allied membership) The Association maintained its rules and reported according to statutory requirements.

Gerard Dwyer Bernie Smith Committee of Management Committee of Management Dated at Sydney this 12th day of August 2014

COMMITTEE OF MANAGEMENT STATEMENT FOR THE YEAR ENDED 30 JUNE 2014 On 12 August 2014 the Committee of Management of Shop, Distributive and Allied Employees’ Association NSW Branch passed the following resolution in relation to the general purpose Ànancial report (GPFR) for the year ended 30 June 2014: The Committee of Management declares that in its opinion: a) The Ànancial statements and notes comply with the Australian Accounting Standards; b) The Ànancial statements and notes comply with the reporting guidelines of the General Manager; c) The Ànancial statements and notes give a true and fair view of the Ànancial performance, Ànancial position and cash Áows of the reporting unit for the Ànancial year to which they relate; d) There are reasonable grounds to believe the reporting unit will be able to pay its debts as and when they become due and payable; and e) During the Ànancial year to which the GPFR relates and since the end of that year: i) Meetings of the Committee of Management were held in accordance with the rules of the organisation including the rules of a branch concerned; and ii) The Ànancial affairs of the reporting unit have been managed in accordance with the rules of the organisation including the rules of a branch concerned; and iii) The Ànancial records of the reporting unit have been kept and maintained in accordance with the RO Act; and iv) Where the organisation consists of two or more reporting units, the Ànancial records of the reporting unit have been kept, as far as practicable, in a consistent manner with each of the other reporting units of the organisation; and v) Where information has been sought in any request by a member of the reporting unit or General Manager duly made under section 272 of the RO Act has been provided to the member or General Manager; and vi) Where any orders for inspection of Ànancial records have been made by the Fair Work Commission under section 273 of the RO Act, there has been compliance. f) No revenue has been derived from undertaking recovery of wages activity during the reporting period.

This declaration is made in accordance with a resolution of the Committee of Management.

Name and title of designated ofÀcer: Gerard Dwyer, Secretary/Treasurer Dated: 12 August 2014

STATEMENT OF COMPREHENSIVE INCOME FOR THE YEAR ENDED 30 JUNE 2014 Note Revenue Membership subscription Capitation fees 3A Levies 3B Interest 3C Other revenue 3D Total revenue Other income Grants and/or donations 3E Total other income Total income Expenses Employee expenses 4A Capitation fees 4B AfÀliation fees 4C Administration expenses 4D Grants or donations 4E Legal costs 4F Other expenses 4G Total expenses ProÀt (loss) for the year Other comprehensive income Items that will not be subsequently reclassiÀed to proÀt or loss Gain on revaluation of land & buildings Total comprehensive income for the year The above statement should be read in conjunction with the notes.

SDA NEWS SPRING 2014 – PAGE 34

2014 $

2013 $

310,551 6 3,893,894 4,204,451

295,685 9 4,656,347 4,952,041

4,204,451

4,952,041

2,094,856 2,192,069 350 4,287,275 (82,824)

2,136,644 2,467,776 1,350 4,605,770 346,271

-

-

SDA FINANCIAL REPORTS 2014 STATEMENT OF FINANCIAL POSITION AS AT 30 JUNE 2014 ASSETS Current Assets Cash and cash equivalents Trade and other receivables Other current assets Total current assets Non-Current Assets Total non-Ànancial assets Total assets LIABILITIES Current Liabilities Trade payables Other payables Employee provisions Total current liabilities Non-Current Liabilities Employee provisions Total non-current liabilities Total liabilities Net assets EQUITY General funds Retained earnings (accumulated deÀcit) Total equity The above statement should be read in conjunction with the notes.

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2014

Note

2014 $

2013 $

5A 5B 5C

42,219 53,823 1,297,624 1,393,666

29,595 58,946 1,391,865 1,480,406

1,393,666

1,480,406

6A 6B 7A

4,340 4,340

8,256 8,256

7A

4,340 1,389,326

8,256 1,472,150

1,389,326 1,389,326

1,472,150 1,472,150

STATEMENT OF CHANGES IN EQUITY FOR THE YEAR ENDED 30 JUNE 2014 Balance at 1 July 2012 Adjustment for errors Adjustment for changes in accounting policies ProÀt for the year Other comprehensive income for the year Transfer to/from [insert fund name] Transfer from retained earnings Closing balance at 30 June 2013 Adjustment for errors Adjustment for changes in accounting policies ProÀt for the year Other comprehensive income for the year Transfer to/from other fund Transfer from retained earnings Closing balance at 30 June 2014 The above statement should be read in conjunction with the notes.

General Funds $ -

Retained Earnings $ 1,125,879

Total Equity $ 1,125,879

-

346,271

346,271

-

1,472,150 (82,824) 1,389,326

1,472,150 (82,824) 1,389,326

-

CASH FLOWS STATEMENT FOR THE YEAR ENDED 30 JUNE 2014 OPERATING ACTIVITIES Cash received Receipts from other reporting units/controlled Entity(s) Interest Other Cash used Employees Suppliers Payment to other reporting units/controlled entity(s) Net cash from (used by) operating activities INVESTING ACTIVITIES Cash received Proceeds from sale of plant and equipment Proceeds from sale of land and buildings Other Cash used Purchase of plant and equipment Purchase of land and buildings Other Net cash from (used by) investing activities FINANCING ACTIVITIES Cash received Contributed equity Other Cash used Repayment of borrowings Other Net cash from (used by) Ànancing activities Net increase/(decrease) in cash held Cash & cash equivalents at beginning of the Ànancial year Cash & cash equivalents at end of the Ànancial year The above statement should be read in conjunction with the notes.

Note

2014 $

2013 $

8B

3,893,894 6 409,916

4,656,347 9 194,270

(2,102,095) (2,189,097) 12,624

(2,759,496) (2,055,171) 35,959

-

-

-

-

-

-

12,624 29,595 42,219

35,959 (6,364) 29,595

8B 8A

5

RECOVERY OF WAGES ACTIVITY FOR THE YEAR ENDED 30 JUNE 2014 Cash assets in respect of recovered money at beginning of year Receipts Amounts recovered from employers in respect of wages etc.

Interest received on recovered money Total receipts Payments Deductions of amounts due in respect of Membership for: 12 months or less Greater than 12 months Deductions of donations or other contributions to accounts or funds of: The reporting unit: name of account name of fund Name of other reporting unit of the organisation: name of account name of fund Name of other entity: name of account name of fund Deductions of fees or reimbursement of Expenses Payments to workers in respect of recovered Money Total payments Cash assets in respect of recovered money at end of year Number of workers to which the monies recovered relates Aggregate payables to workers attributable to recovered monies but not yet distributed Payable balance Number of workers the payable relates to Fund or account operated for recovery of wages

Note

2014 $

2013 $

-

-

-

-

-

-

-

-

-

-

-

-

NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES 1.1 Basis of preparation of the Ànancial statements The Ànancial statements are general purpose Ànancial statements and have been prepared in accordance with Australian Accounting Standards and Interpretations issued by the Australian Accounting Standards Board (AASB) that apply for the reporting period and the Fair Work (Registered Organisation) Act 2009. For the purpose of preparing the general purpose Ànancial statements, the Shop, Distributive and Allied Employees’ Association NSW Branch is a not-for-proÀt entity.

The Ànancial statements have been prepared on an accrual basis and in accordance with the historical cost, except for certain assets and liabilities at measured at fair value, as explained in the accounting policies below. Historical cost is generally based on the fair values of the consideration given in exchange for assets. Except where stated, no allowance is made for the effect of changing prices on the results or the Ànancial position. The Ànancial statements are presented in Australian dollars.

1.2 Comparative amounts When required by Accounting Standards, comparative Àgures have been adjusted to conform to changes in presentation for the current Ànancial year.

1.3 SigniÀcant accounting judgements and estimates The Committee of Management evaluate estimates and judgments incorporated into the Ànancial report based on historical knowledge and best available current information. Estimates assume a reasonable expectation of future events and are based on current trends and economic data, obtained both externally and within the Association.

It has not been necessary for the Committee of Management to make any key estimates or judgements in the report.

1.4 New Australian Accounting Standards Adoption of New Australian Accounting Standard Requirements No accounting standard has been adopted earlier than the application date stated in the standard.

The accounting policies adopted are consistent with those of the previous Ànancial year.

1.5 Basis of consolidation These Ànancial statements are for the reporting unit, the Association. They are not consolidated with any other entity.

1.5A Investment in associates An associate is an entity over which the Association has signiÀcant inÁuence and that is neither a subsidiary nor an interest in a joint venture. SigniÀcant inÁuence is the power to participate in the Ànancial and operating policy decisions of the investee but is not control or joint control over those policies.

The Association has not made an investment in an associate.

1.6 Business combinations There have been no business combinations during the year.

1.7 Acquisition of assets and or liabilities that do not constitute a business combination There have been no acquisition of assets or liabilities by the Association during the year that do not constitute a business combination.

1.8 Revenue Revenue is measured at the fair value of the consideration received or receivable.

Revenue from subscriptions is accounted for on an accrual basis and is recorded as revenue in the year to which it relates.

Revenue from the sale of goods is recognised when, the risks and rewards of ownership have been transferred to the buyer, the entity retains no managerial involvement or effective control over the goods, the revenue and transaction costs incurred can be reliably measured, and it is probable that the economic beneÀts associated with the transaction will Áow to the entity.

Donation income is recognised when it is received.

Receivables for goods and services, which have 30 day terms, are recognised at the nominal amounts due less any impairment allowance account. Collectability of debts is reviewed at end of the reporting period. Allowances are made when collectability of the debt is no longer probable.

Interest revenue is recognised on an accrual basis using the effective interest method.

1.9 Government grants The Association has not received any Government grants during the year.

1.10 Capitation fees and levies Capitation fees and levies are to be recognised on an accrual basis and record as a revenue and/or expenses in the year to which it relates.

1.11 Cash Cash is recognised at its nominal amount. Cash and cash equivalents includes cash on hand, deposits held at call with bank, other short-term highly liquid investments with original maturity of 3 months or less that are readily convertible to known amounts of cash and subject to insigniÀcant risk of changes in value and bank overdrafts.

Bank overdrafts are shown within short-term borrowings in current liabilities on the consolidated statement of Ànancial position.

1.12 Financial instruments Financial assets and Ànancial liabilities are recognised when Shop, Distributive and Allied Employees’ Association NSW Branch becomes a party to the contractual provisions of the instrument.

Financial assets and Ànancial liabilities are initially measured at fair value. Transaction costs that are directly attributable to the acquisition or issue of Ànancial assets and Ànancial liabilities (other than Ànancial assets and Ànancial liabilities at fair value through proÀt or loss) are added to or deducted from the fair value of the Ànancial assets or Ànancial liabilities, as appropriate, on initial recognition. Transaction costs directly attributable to the acquisition of Ànancial assets or Ànancial liabilities at fair value through proÀt or loss are recognised immediately in proÀt or loss.

AASB 9 Financial Instruments (2010), AASB 9 Financial Instruments (2009) AASB 9 Financial Instruments (2009) introduces new requirements for the classiÀcation and measurement of Ànancial assets. Under AASB 9 (2009), Ànancial assets are classiÀed and measured based on the business model in which they are held and the characteristics of their contractual cash Áows. AASB 9 (2010) introduces additions relating to Ànancial liabilities. The IASB currently has an active project that may result in limited amendments to the classiÀcation and measurement requirements of AASB 9 and add new requirements to address the impairment of Ànancial assets and hedge accounting.

AASB 9 (2010 and 2009) are effective for annual periods beginning on or after 1 January 2015 with early adoption permitted. The extent of the impact has not been determined.

1.13 Financial assets Financial assets are classiÀed into the following speciÀed categories: Ànancial assets at fair value through proÀt or loss, held-to-maturity investments, available-for-sale Ànancial assets and loans and receivables. The classiÀcation depends on the nature and purpose of the Ànancial assets and is determined at the time of initial recognition. All regular way purchases or sales of Ànancial assets are recognised and derecognised upon trade date basis. Regular way purchases or sales are purchases or sales of Ànancial assets that require delivery of assets within the time frame established by regulation or convention in the marketplace.

Fair value through proÀt or loss Financial assets are classiÀed as at fair value through proÀt or loss when the Ànancial asset is either held for trading or it is designated as at fair value through proÀt or loss.

The Association does not hold any Ànancial assets for trading.

A Ànancial asset other than a Ànancial asset held for trading may be designated as at fair value through proÀt or loss upon initial recognition if: • such designation eliminates or signiÀcantly reduces a measurement or recognition inconsistency that would otherwise arise; or • the Ànancial asset forms part of a group of Ànancial assets or Ànancial liabilities or both, which is managed and its performance is evaluated on a fair value basis, in accordance with the reporting units documented risk management or investment strategy, and information about the grouping is provided internally on that basis; or • it forms part of a contract containing one or more embedded derivatives, and AASB 139 ‘Financial Instruments: Recognition and Measurement’ permits the entire combined contract (asset or liability) to be designated as at fair value through proÀt or loss.

Financial assets at fair value through proÀt or loss are stated at fair value, with any gains or losses arising on remeasurement recognised in proÀt or loss. The net gain or loss recognised in proÀt or loss incorporates any dividend or interest earned on the Ànancial asset and is included in the ‘other gains and losses’ line item in the statement of comprehensive income.

SDA NEWS SPRING 2014 – PAGE 35

SDA FINANCIAL REPORTS 2014 Loan and receivables Trade receivables, loans and other receivables that have Àxed or determinable payments that are not quoted in an active market are classiÀed as ‘loans and receivables’. Loans and receivables are measured at amortised cost using the effective interest method less impairment. Interest is recognised by applying the effective interest rate, except for short-term receivables when the recognition of interest would be immaterial.

Effective interest method The effective interest method is a method of calculating the amortised cost of a debt instrument and of allocating interest income over the relevant period. The effective interest rate is the rate that exactly discounts estimated future cash receipts through the expected life of the Ànancial asset, or, when appropriate, a shorter period, to the net carrying amount on initial recognition.

Income is recognised on an effective interest rate basis except for debt instruments other than those Ànancial assets that are recognised at fair value through proÀt or loss.

1.14 Financial liabilities Financial liabilities are classiÀed as either Ànancial liabilities ‘at fair value through proÀt or loss’ or other Ànancial liabilities. Financial liabilities are recognised and derecognised upon ‘trade date’.

Fair value through proÀt or loss Financial liabilities are classiÀed as at fair value through proÀt or loss when the Ànancial liability is either held for trading or it is designated as at fair value through proÀt or loss.

The Association does not hold any Ànancial liabilities for trading.

Financial liabilities at fair value through proÀt or loss are stated at fair value, with any gains or losses arising on remeasurement recognised in proÀt or loss. The net gain or loss recognised in proÀt or loss incorporates any interest paid on the Ànancial liability and is included in the ‘other gains and losses’ line item in the statement of comprehensive income.

Other Ànancial liabilities Other Ànancial liabilities, including borrowings and trade and other payables, are initially measured at fair value, net of transaction costs.

Other Ànancial liabilities are subsequently measured at amortised cost using the effective interest method, with interest expense recognised on an effective yield basis.

Derecognition of Ànancial liabilities The reporting unit derecognises Ànancial liabilities when, and only when, the reporting units obligations are discharged, cancelled or they expire. The difference between the carrying amounts of the Ànancial liability derecognised and the consideration paid and payable is recognised in proÀt or loss.

1.15 Contingent liabilities and contingent assets Contingent liabilities and contingent assets are not recognised in the Statement of Financial Position but are reported in the relevant notes. They may arise from uncertainty as to the existence of a liability or asset or represent an existing liability or asset in respect of which the amount cannot be reliably measured. Contingent assets are disclosed when settlement is probable but not virtually certain, and contingent liabilities are disclosed when settlement is greater than remote.

1.16 Taxation Shop, Distributive and Allied Employees’ Association NSW Branch is exempt from income tax under section 50.1 of the Income Tax Assessment Act 1997 however still has obligation for Fringe BeneÀts Tax (FBT) and the Goods and Services Tax (GST).

Revenues, expenses and assets are recognised net of GST except: • where the amount of GST incurred is not recoverable from the Australian Taxation OfÀce; and • for receivables and payables.

The net amount of GST recoverable from, or payable to, the taxation authority is included as part of receivables or payables.

Cash Áows are included in the cash Áow statement on a gross basis. The GST component of cash Áows arising from investing and Ànancing activities which is recoverable from, or payable to, the Australian Taxation OfÀce is classiÀed within operating cash Áows.

1.17 Going concern Shop, Distributive and Allied Employees’ Association NSW Branch has not received Ànancial support from another reporting unit.

Shop, Distributive and Allied Employees’ Association NSW Branch does not provide Ànancial support to any other reporting unit.

Shop, Distributive and Allied Employees’ Association NSW Branch’s ability to continue as a going concern is not reliant on the support of another reporting unit.

NOTE 2: EVENTS AFTER THE REPORTING PERIOD There were no events that occurred after 30 June 2014, and/or prior to the signing of the Ànancial statements, that would affect the ongoing structure and Ànancial activities of Shop, Distributive and Allied Employees’ Association NSW Branch.

NOTE 3: INCOME 2014 $ 2013 $ NOTE 3A: CAPITATION FEES Capitation fees Total capitation fees NOTE 3B: LEVIES Levies Total levies NOTE 3C: INTEREST Deposits 6 9 Loans 6 9 Total Interest NOTE 3D: OTHER REVENUE Surplus transferred from NSW Deductions Account OfÀce 3,893,894 4,656,347 3,893,894 4,656,347 Total other revenue NOTE 3E: GRANTS OR DONATIONS Grants Donations Total grants or donations NOTE 4: EXPENSES NOTE 4A: EMPLOYEE EXPENSES Holders of ofÀce: Wages and salaries Superannuation Leave and other entitlements Separation and redundancies Other employee expenses Subtotal employee expenses holders of ofÀce Employees other than ofÀce holders: Wages and salaries Superannuation Leave and other entitlements Separation and redundancies Other employee expenses Subtotal employee expenses employees other than ofÀce holders Total employee expenses NOTE 4B: CAPITATION FEES Capitation fees Total capitation fees NOTE 4C: AFFILIATION FEES National OfÀce SDA 1,353,462 1,317,328 National OfÀce SDA - International Fund 304,555 395,198 ALP NSW 236,127 236,127 ALP ACT 10,087 2,561 Labor Council NSW 186,362 181,280 Labor Council ACT 1,511 1,473 2,752 2,677 Labor Council South Coast 2,094,856 2,136,644 Total afÀliation fees/subscriptions

NOTE 4D: ADMINISTRATION EXPENSES Consideration paid to employers for payroll deductions Compulsory Levies ACTU IR Campaign Levy 61,772 60,040 Fees/allowances – meeting and conferences 50,925 73,357 Conference and meeting expenses 726,022 770,197 Membership propagation expenses 752,044 945,278 Journal costs 356,205 339,101 Textbooks scholarships & TEAP Payments 87,154 122,651 157,947 157,152 Other 2,192,069 2,467,776 Subtotal administration expenses Operating lease rental Minimum lease payments 2,192,069 2,467,776 Total administration expenses Note: Compulsory Levy A compulsory levy of $1 per member was made by the Shop, Distributive and Allied Employees’ Association NSW Branch for Branch contribution to the ACTU IR Campaign Levy during the year. The purpose of the levy was to promote the aims and activities undertaken by trade unions.

NOTE 4E: GRANTS OR DONATIONS Grants Total paid that were $1,000 or less Total paid that exceeded $1,000 Donations Total paid that were $1,000 or less 350 1,350 Total paid that exceeded $1,000 Total grants or donations 350 1,350 NOTE 4F: LEGAL COSTS Litigation Other legal matters Total legal costs NOTE 4G: OTHER EXPENSES Penalties – via RO Act or RO Regulations Total other expenses NOTE 5: CURRENT ASSETS NOTE 5A: CASH AND CASH EQUIVALENTS Cash at bank Cash on hand Short term deposits Other Total cash and cash equivalents NOTE 5B: TRADE AND OTHER RECEIVABLES Receivables from other reporting unit(s) Name Total receivables from other reporting unit(s) Less provision for doubtful debts Name Total provision for doubtful debts Receivable from other reporting unit(s) net Other Receivables

42,219 42,219

29,595 29,595

-

-

-

-

GST receivable from the Australian Taxation OfÀce Other trade receivables Total other receivables Total trade and other receivables (net) NOTE 5C: OTHER CURRENT ASSETS Prepayments Total other current assets NOTE 6: CURRENT LIABILITIES NOTE 6A: TRADE PAYABLES Trade creditors and accruals Operating lease rentals Subtotal trade creditors Payables to other reporting unit(s) (list name) Subtotal payables to other reporting unit(s) Total trade payables Settlement is usually made within 30 days.

NOTE 6B: OTHER PAYABLES Consideration to employers for payroll deductions Legal costs Total other payables Total other payables are expected to be settled in: No more than 12 months More than 12 months Total other payables NOTE 7: PROVISIONS NOTE 7A: EMPLOYEE PROVISIONS OfÀce holders: Annual leave Long service leave Separation and redundancies Other

53,823 53,823 53,823

58,946 58,946 58,946

1,297,624 1,297,624

1,391,865 1,391,865

4,340 -

8,256 -

4,340

8,256

-

-

-

-

-

-

Subtotal employee provisions - ofÀce holders Employees other than ofÀce holders: Annual leave Long service leave Separation and redundancies Other Subtotal employee provisions - employees other than ofÀce holders Annual leave Long service leave Total employee provisions Current Non Current Total employee provisions NOTE 8: CASH FLOW NOTE 8A: CASH FLOW RECONCILIATION Reconciliation of cash and cash equivalents as per Balance Sheet to Cash Flow Statement: Cash and cash equivalents as per: Cash Áow statement 42,219 Balance sheet 42,219 Difference Reconciliation of proÀt/(deÀcit) to net cash from operating activities: ProÀt/(deÀcit) for the year (82,824) Adjustments for non-cash items (Increase)/decrease in net receivables 5,123 (Increase)/decrease in prepayments 94,241 Increase/(decrease) in supplier payables (3,916) Increase/(decrease) in other payables Increase/(decrease) in employee provisions Increase/(decrease) in other provisions 12,624 Net cash from (used by) operating activities

SDA NEWS SPRING 2014 – PAGE 36

-

29,595 29,595 346,271 (19,942) (81,473) (208,601) (296) 35,959

SDA FINANCIAL REPORTS 2014 NOTE 8B: CASH FLOW INFORMATION 2014 $ 2013 $ Cash inÁows 3,893,894 4,656,347 Shop, Distributive & Allied Employees’ Association Branch 4,303,815 4,850,625 Total cash inÁows Cash outÁows 2,189,097 2,055,171 Shop, Distributive & Allied Employees’ Association Branch 4,291,191 4,814,667 Total cash outÁows NOTE 9: CONTINGENT LIABILITIES, ASSETS AND COMMITMENTS The Association has not entered into any lease commitments, or capital commitments Other contingent assets or liabilities (i.e. legal claims) The Association is not aware of any contingent asset or liability.

NOTE 10: RELATED PARTY DISCLOSURES NOTE 10A: RELATED PARTY TRANSACTIONS FOR THE REPORTING PERIOD The following table provides the total amount of transactions that have been entered into with related parties for the relevant year.

Revenue received from Shop, Distributive and Allied Employees’ Association NSW Deductions Account OfÀce includes the following: Surplus transferred from Shop, Distributive and Allied Employees’ Association NSW Deductions Account OfÀce 3,893,894 4,656,347 Expenses paid to National OfÀce SDA includes the following: AfÀliation fees – National OfÀce SDA 1,353,462 1,317,328 Expenses paid to National OfÀce SDA – International Fund includes the following: AfÀliation fees – National OfÀce SDA – International Fund 304,555 395,198 Expenses paid to ALP NSW includes the following: AfÀliation fees – ALP NSW 236,127 236,127 Expenses paid to ALP ACT includes the following: AfÀliation fees – ALP ACT 10,087 2,561 Expenses paid to Labor Council NSW includes the following: AfÀliation fees – Labor Council NSW 186,362 181,280 Expenses paid to Labor Council ACT includes the following: AfÀliation fees – Labor Council ACT 1,511 1,473 Expenses paid to Labor Council South Coast includes the following: AfÀliation fees – Labor Council South Coast 2,752 2,677 Campaign Levy paid to National OfÀce SDA includes the following: ACTU IR Campaign Levy – National OfÀce SDA 61,772 60,040 NOTE 11: REMUNERATION OF AUDITORS Value of the services provided Financial statement audit services Other services Total remuneration of auditors NOTE 12: FINANCIAL INSTRUMENTS The Committee of Management has overall responsibility for the establishment and oversight of the risk management framework. Risk management policies are established to identify and analyse the risks faced by the Association, to set appropriate risk limits and controls, and to monitor risks and adherence to limits. Risk management policies and systems are reviewed regularly to reÁect changes in market conditions and the Association’s activities. The Association, through its training and management standards and procedures, aims to develop a disciplined and constructive control environment in which all employees understand their roles and obligations.

The Association’s Ànancial instruments consist mainly of deposits with banks and accounts payable. The Association does not have any derivative instruments at 30 June 2014.

NOTE 12A: CATEGORIES OF FINANCIAL INSTRUMENTS Financial assets Held-to-maturity investments: Cash and cash equivalents Total Carrying amount of Ànancial assets Financial Liabilities Other Ànancial liabilities: Trade and other payable Total Carrying amount of Ànancial liabilities NOTE 12B: NET INCOME AND EXPENSE FROM FINANCIAL ASSETS

42,219 42,219 42,219

29,595 29,595 29,595

4,340 4,340 4,340

8,256 8,256 8,256

Held-to-maturity 6 9 Interest revenue 6 9 Net gain/(loss) held-to-maturity 6 9 Net gain/(loss) at fair value through proÀt and loss 6 9 Net gain/(loss) from Ànancial assets The net income/expense from Ànancial assets not at fair value from proÀt and loss is $0 (2013: $0).

NOTE 12C: NET INCOME AND EXPENSE FROM FINANCIAL LIABILITIES The net income/expense from Ànancial liabilities not at fair value from proÀt and loss is $0 (2013:$0.)

NOTE 12D: CREDIT RISK The Association is not exposed to any material credit risk.

The following table illustrates the entity’s gross exposure to credit risk.

Financial assets Cash and cash equivalents 42,219 29,595 Receivables 53,823 58,946 Total 96,042 88,541 The cash and cash equivalents are held with banking institutions located in Australia.

NOTE 12E: LIQUIDITY RISK The Association manages liquidity risk by monitoring forecast cash Áows and ensuring that adequate cash facilities are maintained.

Contractual maturities for Ànancial liabilities 2014 On Demand < 1 year 1-2 years 2-5 years > 5 years Total $ $ $ $ $ $ Trade Payable Total 4,340 4,340 4,340 4,340 Maturities for Ànancial liabilities 2013 On Demand < 1 year 1-2 years 2-5 years > 5 years $ $ $ $ $ Total $ Trade Payable 8,256 8,256 Total 8,256 8,256 NOTE 12F: MARKET RISK Interest Rate Risk The Association manages interest rate risk by monitoring the level of interest rates.

The interest earnings on cash and cash equivalents was low, the effect on interest rate risk is negligible.

Price Risk The Association is not exposed to any price risk.

Foreign Currency Risk The Association is not exposed to Áuctuations in foreign currencies.

NOTE 13: FAIR VALUE MEASUREMENT NOTE 13A: FINANCIAL ASSETS AND LIABILITIES Management of the reporting unit assessed that cash, trade receivables, trade payables, and other current liabilities approximate their carrying amounts largely due to the short term maturities of these instruments.

The fair value of Ànancial assets and liabilities is included at the amount which the instrument could be exchanged in a current transaction between willing parties.

The own performance risk as at 30 June 2014 was assessed to be insigniÀcant.

NOTE 14: ACQUISITIONS The reporting unit has not acquired an asset or a liability during the Ànancial year as a result of: a) an amalgamation under Part 2 of Chapter 3, of the RO Act in which the organisation (of which the reporting unit form part) was the amalgamated organisation; or b) a restructure of the branches of the organisation; or c) a determination by the General Manager under subsection 245(1) of the RO Act of an alternative reporting structure for the organisation; or d) a revocation by the General Manager under subsection 249(1) of the RO Act of a certiÀcate issued to an organisation under subsection 245(1).

NOTE 15: SECTION 272 FAIR WORK (REGISTERED ORGANISATIONS) ACT 2009 In accordance with the requirements of the Fair Work (Registered Organisations) Act 2009, the attention of members is drawn to the provisions of subsections (1) to (3) of section 272, which reads as follows: Information to be provided to members or General Manager: 1) A member of a reporting unit, or the General Manager, may apply to the reporting unit for speciÀed prescribed information in relation to the reporting unit to be made available to the person making the application.

2) The application must be in writing and must specify the period within which, and the manner in which, the information is to be made available. The period must not be less than 14 days after the application is given to the reporting unit.

3) A reporting unit must comply with an application made under subsection (1).

SHOP, DISTRIBUTIVE AND ALLIED EMPLOYEES’ ASSOCIATION NSW DEDUCTIONS ACCOUNT OFFICE FINANCIAL REPORT FOR THE YEAR ENDED 30 JUNE 2014 RESOLUTION REGARDING TRANSFER OF FUNDS SURPLUS TO THE REQUIREMENT OF THE DEDUCTIONS ACCOUNT OFFICE FOR THE YEAR ENDED 30 JUNE 2014 Resolved: The National Executive ratiÀes the transfer of an amount of $3,893,894 from the Shop, Distributive and Allied Employees’ Association NSW Deductions Account OfÀce, to the account of the NSW Branch of the Association, such funds being surplus to the requirement of the Deductions Account OfÀce for the year ended 30 June 2014.

Dated at Gold Coast this 18th day of August 2014

INDEPENDENT AUDITORS’ REPORT TO THE MEMBERS OF SHOP, DISTRIBUTIVE AND ALLIED EMPLOYEES’ ASSOCIATION NSW DEDUCTIONS ACCOUNT OFFICE Report on the Financial Report We have audited the Ànancial report of Shop, Distributive and Allied Employees’ Association NSW Deductions Account OfÀce (“the Association”) for the Ànancial year ended 30 June 2014, consisting of the Statement of Comprehensive Income, Statement of Financial Position, Statement of Changes in Equity, Statement of Cash Flows for the year ended on that date, accompanying notes 1 to 18, the Operating Report and Committee of Management Statement. The Committee of Management is responsible for the Ànancial report. We have conducted an independent audit of the Ànancial report in order to express an opinion on it to the members of the Association.

The Ànancial Report has been prepared for distribution to the members of the Association for the purpose of fulÀlling the requirements of subsections 265(1) and 265(5) of the Registered Organisations Act 2009 in relation to the Ànancial report and independent auditor’s report.

Committee of Management’s Responsibility for the Financial Report The Committee of Management of the Shop, Distributive and Allied Employees’ Association NSW Deductions Account OfÀce is responsible for the preparation and fair presentation of the Ànancial report in accordance with Australian Accounting Standards (including the Australian Accounting Interpretations) and compliance with Part 3 of Chapter 8 of the Registered Organisations Act 2009. This responsibility includes establishing and maintaining internal control relevant to the preparation and fair presentation of the Ànancial report that is free from material misstatement, whether due to fraud or error; selecting and applying appropriate accounting policies; and making accounting estimates that are reasonable in the circumstances.

Auditors’ Responsibility Our responsibility is to express an opinion on the Ànancial report based on our audit. We conducted our audit in accordance with Australian Auditing Standards. These Auditing Standards require that we comply with relevant ethical requirements relating to audit engagements and plan and perform the audit to obtain reasonable assurance whether the Ànancial report is free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the Ànancial report. The procedures selected depend on the auditors’ judgment, including the assessment of the risks of material misstatement of the Ànancial report, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity’s preparation and fair presentation of the Ànancial report in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by the Council, as well as evaluating the overall presentation of the Ànancial report.

We believe that the audit evidence we have obtained is sufÀcient and appropriate to provide a basis for our audit opinion.

Independence In conducting our audit, we followed and complied with the applicable independence requirements of Australian professional ethical pronouncements and the Registered Organisations Act 2009.

We declare to the best of our knowledge and belief that the auditor’s independence declaration, set out on page 6 of the Ànancial report, has not changed as at the date of providing our audit opinion.

Audit Opinion In our opinion the general purpose Ànancial report is presented fairly in accordance with: 1. applicable Australian Accounting Standards (including the Australian Accounting Interpretations) and 2. in relation to recovery of wages activity: a. that the scope of the audit encompassed recovery of wages activity; 3. any other requirements imposed by these reporting guidelines or Part 3 of Chapter 8 of the Registered Organisations Act 2009.

4. The use of the Going Concern basis by the Committee of Management is appropriate.

Joseph Paul Grech Grech Smith Bridle Partner Chartered Accountants Registered Company Auditor, Number 4327 Holder of Current Practicing CertiÀcate and Member of the Chartered Accountants Australia and New Zealand, Number 24310 Dated at Sydney this 22nd day of August 2014

DECLARATION I, Joseph Paul Grech, being the auditor of the Shop, Distributive and Allied Employees’ Association NSW Deductions declare that: a) I am an approved auditor, and b) I am a person who is a member of The Chartered Accountants Australia and New Zealand; and c) I hold a current Public Practice CertiÀcate.

Joseph Paul Grech Grech Smith Bridle Partner Chartered Accountants Registered Company Auditor, Number 4327 Holder of Current Practicing CertiÀcate and Member of the Chartered Accountants Australia and New Zealand, Number 24310 Dated at Sydney this 22nd day of August 2014

SDA NEWS SPRING 2014 – PAGE 37

SDA FINANCIAL REPORTS 2014 AUDITOR’S INDEPENDENCE DECLARATION FOR THE YEAR ENDED 30 JUNE 2014 TO THE COMMITTEE OF MANAGEMENT, SHOP, DISTRIBUTIVE AND ALLIED EMPLOYEES’ ASSOCIATION, NSW DEDUCTIONS ACCOUNT OFFICE I declare that, to the best of my knowledge and belief, during the year ended 30 June 2014 there has been: i) no contraventions of the auditor independence requirements in relation to the audit; and ii) no contravention of any applicable code of professional conduct in relation to the audit.

Joseph Paul Grech Grech Smith Bridle Registered Company Auditor, Number 4327 Chartered Accountants Holder of Current Practicing CertiÀcate and Member of the Chartered Accountants Australia and New Zealand, Number 24310 Dated at Sydney this 22nd day of August 2014

OPERATING REPORT FOR THE YEAR ENDED 30 JUNE 2014 Principal activities The principal activities of the reporting unit are preserving and enhancing the wages and working conditions of its members, and the promotion of the interests and rights of workers. In addition to industrial representation, members are also provided with a range of services and beneÀts.

New enterprise agreements were negotiated with a wide range of employers during the year. These agreements all resulted in improved wages and working conditions for the employees covered by them.

SigniÀcant changes in Ànancial affairs There were no signiÀcant changes in the nature of the activities and Ànancial affairs in the Association during the Ànancial year.

Rights of members to resign Persons eligible to do so under the rules of the Association were actively encouraged to join the Association. Pursuant to s174 of the Fair Work (Registered Organisations) Act 2009 (RO Act), members could resign from the Association by written notice to the appropriate Branch of the Association.

OfÀcers & employees who are superannuation fund trustees or director of a company that is a superannuation fund trustee Four representatives of the Association hold positions as Directors of the Retail Employees’ Superannuation Trust (“REST”). Below are the directors as at 30 June 2014, along with the nominated alternate Employee Directors. Ms S Burnley is also a Director of CARE Super Pty Ltd. Directors: Alternates: Mr Joe de Bruyn Mr Gerard Dwyer Mr Ian Blandthorn Mr Michael Donovan Mr Geoff Williams Mr Peter Malinauskas Ms Sue-Anne Burnley Ms Julia Fox Number of Members Membership as at 30 June 2014 was 57,310 (2013: 58,202).

Number of employees At 30 June 2014, there were 84 persons employed by the NSW Deductions Account OfÀce of the Association.

AfÀliations & Directorships Detailed below are the afÀliations of the NSW Branch of the Association: – Australian Labor Party, NSW Branch – Australian Labor Party, ACT Branch – Unions NSW – South Coast Labor Council – Unions ACT The NSW Branch Secretary-Treasurer of the Association is on the Administrative Committee of the Australian Labor Party, NSW Branch and is also an Executive Member of Unions NSW. A representative of the NSW Branch of the Association is a member of the Service Skills NSW Wholesale, Retail and Personal Services Committee.

Names of Committee of Management members and period positions held during the Ànancial year The names of the members of the National Executive of the Association at any time during, or since the end of the Ànancial year were: Name Experience Position Mr. G. Dwyer National Executive member since 2005 National President Appointed National President 2008 Mr. J. Bullock National Executive member since 1996 National Vice President Appointed National Vice President 2004 Mr. J. de Bruyn National Executive member since 1978 National Secretary - Treasurer Appointed National Secretary - Treasurer 1978 Mr. I. Blandthorn National Executive member since 1986 National Assistant Secretary Appointed National Assistant Secretary 1986 Mr. M. Donovan National Executive member since 1996 Member of Committee Mr. P. GrifÀn National Executive member since 1990 Member of Committee Mr. C. Ketter National Executive member since 1996 Member of Committee Mr. P Malinauskas National Executive member since 2008 Member of Committee Ms. B. Nebart National Executive member since 2004 Member of Committee The Association maintained its rules and reported according to statutory requirements.

Gerard Dwyer Joe de Bruyn Committee of Management Committee of Management Dated at Gold Coast this 21st day of August 2014

STATEMENT OF COMPREHENSIVE INCOME FOR THE YEAR ENDED 30 JUNE 2014 Revenue Membership subscription Capitation fees Levies Interest Rental revenue Other revenue Total revenue Other income Grants and/or donations Share of net proÀt from associate Net gains from sale of assets Total other income Total income Expenses Employee expenses Capitation fees AfÀliation fees Administration expenses Grants or donations Depreciation and amortisation Legal costs Audit fees Share of net loss from associate Other expenses Total expenses ProÀt (loss) for the year Other comprehensive income Items that will not be subsequently reclassiÀed to proÀt or loss Gain on revaluation of land & buildings Total comprehensive income for the year The above statement should be read in conjunction with the notes.

Note

2014 $

2013 $

16,546,113 237,445 1,066,032 42,396 17,891,986

16,019,391 271,698 842,557 51,414 17,185,060

3E 6E 3F

115,049 115,049 18,007,035

66,251 66,251 17,251,311

4A 4B 4C 4D 4E 4F 4G 14

7,285,706 9,229,351 105,280 798,403 80,033 48,200 17,546,973 460,062

7,107,901 9,851,693 27,032 803,617 196,005 47,500 18,033,748 (782,437)

1,136,604 1,596,666

(782,437)

3A 3B 3C 3D

4H

STATEMENT OF FINANCIAL POSITION AS AT 30 JUNE 2014

ASSETS Note Current Assets Cash and cash equivalents 5A Trade and other receivables 5B Other current assets 5C Total current assets Non-Current Assets Land and buildings 6A Plant and equipment 6B Investment Property 6C Intangibles Investments in associates Other investments 6D Other non-current assets 6E Total non-Ànancial assets Total assets LIABILITIES Current liabilities Trade payables 7A Other payables 7B Employee provisions 8A Total current liabilities Non-Current Liabilities Employee provisions 8A Other non-current liabilities 9A Total non-current liabilities Total Liabilities Net assets EQUITY General funds 10A Retained earnings (accumulated deÀcit) Total equity The above statement should be read in conjunction with the notes.

2014 $

2013 $

8,832,261 699,676 117,586 9,649,523

6,121,079 2,144,878 87,091 8,353,048

8,946,450 1,359,478 19,040,335 772,356 30,118,619 39,768,142

9,195,525 1,361,189 18,397,676 519,587 29,473,977 37,827,025

1,091,822 175,545 2,213,552 3,480,919

949,759 26,640 2,142,824 3,119,223

34,367 34,367 3,515,286 36,252,856

51,612 51,612 3,170,835 34,656,190

4,515,373 31,737,483 36,252,856

3,378,769 31,277,421 34,656,190

STATEMENT OF CHANGES IN EQUITY FOR THE YEAR ENDED 30 JUNE 2013 Note

General Funds $ 3,378,769 -

COMMITTEE OF MANAGEMENT STATEMENT FOR THE YEAR ENDED 30 JUNE 2014

Balance at 1 July 2012 Adjustment for errors Adjustment for changes in accounting policies ProÀt for the year Other comprehensive income for the year Transfer to/from [insert fund name] 10A Transfer from retained earnings Closing balance at 30 June 2013 3,378,769 Adjustment for errors Adjustment for changes in accounting Policies ProÀt for the year Other comprehensive income for the year 1,136,604 Transfer to/from [insert fund name] 10A Transfer from retained earnings 4,515,373 Closing balance at 30 June 2014 The above statement should be read in conjunction with the notes.

On 21 August 2014 the Committee of Management of Shop, Distributive and Allied Employees’ Association NSW Deductions Account OfÀce passed the following resolution in relation to the general purpose Ànancial report (GPFR) for the year ended 30 June 2014: The Committee of Management declares that in its opinion: a) The Ànancial statements and notes comply with the Australian Accounting Standards; b) The Ànancial statements and notes comply with the reporting guidelines of the General Manager; c) The Ànancial statements and notes give a true and fair view of the Ànancial performance, Ànancial position and cash Áows of the reporting unit for the Ànancial year to which they relate; d) There are reasonable grounds to believe the reporting unit will be able to pay its debts as and when they become due and payable; and e) During the Ànancial year to which the GPFR relates and since the end of that year: i) Meetings of the Committee of Management were held in accordance with the rules of the organisation including the rules of a branch concerned; and ii) The Ànancial affairs of the reporting unit have been managed in accordance with the rules of the organisation including the rules of a branch concerned; and iii) The Ànancial records of the reporting unit have been kept and maintained in accordance with the RO Act; and iv) Where the organisation consists of two or more reporting units, the Ànancial records of the reporting unit have been kept, as far as practicable, in a consistent manner with each of the other reporting units of the organisation; and v) Where information has been sought in any request by a member of the reporting unit or General Manager duly made under section 272 of the RO Act has been provided to the member or General Manager; and vi) Where any orders for inspection of Ànancial records have been made by the Fair Work Commission under section 273 of the RO Act, there has been compliance. f) No revenue has been derived from undertaking recovery of wages activity during the reporting period.

This declaration is made in accordance with a resolution of the Committee of Management.

Name and title of designated ofÀcer: Gerard Dwyer, Secretary/Treasurer Dated: 21 August 2014

OPERATING ACTIVITIES Note Cash received Receipts from other reporting units/controlled Entity(s) 11B Interest Other Cash used Employees Suppliers Payment from other reporting units/controlled entity(s) 11B Net cash from (used by) operating activities 11A INVESTING ACTIVITIES Cash received Proceeds from sale of plant and equipment Proceeds from sale of land and buildings Other Cash used Purchase of plant and equipment Purchase of land and buildings Other Net cash from (used by) investing activities FINANCING ACTIVITIES Cash received Contributed equity Other Cash used Repayment of borrowings Other Net cash from (used by) Ànancing activities Net increase/(decrease) in cash held Cash & cash equivalents at beginning of the Ànancial year Cash & cash equivalents at end of the Ànancial year 5 The above statement should be read in conjunction with the notes.

Retained Earnings $ 32,059,858 (782,437)

Total Equity $ 35,438,627 (782,437)

31,277,421 460,062 31,737,483

34,656,190 460,062 1,136,604 36,252,856

CASH FLOWS STATEMENT FOR THE YEAR ENDED 30 JUNE 2014

SDA NEWS SPRING 2014 – PAGE 38

2014 $

2013 $

237,445 18,816,478

271,698 15,757,008

(7,232,223) (5,278,003) (3,893,894) 2,649,803

(7,051,833) (4,888,910) (4,656,347) (568,384)

216,804 506,705

185,183 -

(662,130) 61,379

(1,199,504) (1,511,752)

-

-

2,711,182 6,121,079 8,832,261

(2,080,136) 8,201,215 6,121,079

(497,431)

SDA FINANCIAL REPORTS 2014 RECOVERY OF WAGES ACTIVITY FOR THE YEAR ENDED 30 JUNE 2014 Cash assets in respect of recovered money at beginning of year Receipts Amounts recovered from employers in respect of wages etc.

Interest received on recovered money Total receipts Payments Deductions of amounts due in respect of Membership for: 12 months or less Greater than 12 months Deductions of donations or other contributions to accounts or funds of: The reporting unit: name of account name of fund Name of other reporting unit of the organisation: name of account name of fund Name of other entity: name of account name of fund Deductions of fees or reimbursement of Expenses Payments to workers in respect of recovered Money Total payments Cash asset’s in respect of recovered money at end of year Number of workers to which the monies recovered relates Aggregate payables to workers attributable to recovered monies but not yet distributed Payable balance Number of workers the payable relates to Fund or account operated for recovery of wages

Note

2013 $

2012 $

-

-

-

-

-

-

-

-

-

-

-

-

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2014 NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES 1.1 Basis of preparation of the Ànancial statements The Ànancial statements are general purpose Ànancial statements and have been prepared in accordance with Australian Accounting Standards and Interpretations issued by the Australian Accounting Standards Board (AASB) that apply for the reporting period and the Fair Work (Registered Organisation) Act 2009. For the purpose of preparing the general purpose Ànancial statements, the Shop, Distributive and Allied Employees’ Association NSW Deductions Account OfÀce is a not-for-proÀt entity.

The Ànancial statements have been prepared on an accrual basis and in accordance with the historical cost, except for certain assets and liabilities at measured at fair value, as explained in the accounting policies below. Historical cost is generally based on the fair values of the consideration given in exchange for assets. Except where stated, no allowance is made for the effect of changing prices on the results or the Ànancial position. The Ànancial statements are presented in Australian dollars.

1.2 Comparative amounts When required by Accounting Standards, comparative Àgures have been adjusted to conform to changes in presentation for the current Ànancial year.

1.3 SigniÀcant accounting judgements and estimates The Committee of Management evaluate estimates and judgements incorporated into the Ànancial report based on historical knowledge and best available current information. Estimates assume a reasonable expectation of future events and are based on current trends and economic data, obtained both externally and within the Association.

It has not been necessary for the Committee of Management to make any key estimates or judgements in the report.

1.4 New Australian Accounting Standards Adoption of New Australian Accounting Standard Requirements No accounting standard has been adopted earlier than the application date stated in the standard.

The accounting policies adopted are consistent with those of the previous Ànancial year.

1.5 Basis of consolidation These Ànancial statements are for the reporting unit, the Association. They are not consolidated with any other entity.

1.5A Investment in associates An associate is an entity over which the Association has signiÀcant inÁuence and that is neither a subsidiary nor an interest in a joint venture. SigniÀcant inÁuence is the power to participate in the Ànancial and operating policy decisions of the investee but is not control or joint control over those policies.

The Association has not made an investment in an associate.

1.6 Business combinations There have been no business combinations during the year.

1.7 Acquisition of assets and or liabilities that do not constitute a business combination There have been acquisition of assets or liabilities by the Association during the year that do not constitute a business combination.

1.8 Revenue Revenue is measured at the fair value of the consideration received or receivable.

Revenue from subscriptions is accounted for on an accrual basis and is recorded as revenue in the year to which it relates.

Revenue from the sale of goods is recognised when, the risks and rewards of ownership have been transferred to the buyer, the entity retains no managerial involvement or effective control over the goods, the revenue and transaction costs incurred can be reliably measured, and it is probable that the economic beneÀts associated with the transaction will Áow to the entity.

Donation income is recognised when it is received.

Receivables for goods and services, which have 30 day terms, are recognised at the nominal amounts due less any impairment allowance account. Collectability of debts is reviewed at end of the reporting period. Allowances are made when collectability of the debt is no longer probable.

Interest revenue is recognised on an accrual basis using the effective interest method.

Rental revenue from operating leases is recognised on a straight-line basis over the term of the relevant lease.

1.9 Government grants Government grants are not recognised until there is reasonable assurance that the Shop, Distributive and Allied Employees’ Association NSW Deductions Account OfÀce will comply with the conditions attaching to them and that the grants will be received.

Government grants are recognised in proÀt or loss on a systematic basis over the periods in which the Shop, Distributive and Allied Employees’ Association NSW Deductions Account OfÀce recognises as expenses the related costs for which the grants are intended to compensate.

SpeciÀcally, government grants whose primary condition is that the Shop, Distributive and Allied Employees’ Association NSW Deductions Account OfÀce should purchase, construct otherwise acquire non-current assets are recognised as deferred revenue in the statement of Ànancial position and transferred to proÀt or loss on a systematic and rational basis over the useful lives of the related assets.

Government grants that are receivable as compensation for expenses or losses already incurred or for the purpose of giving immediate Ànancial support to the Shop, Distributive and Allied Employees’ Association NSW Deductions Account OfÀce with no future related costs are recognised in proÀt or loss in the period in which they become receivable 1.10 Gains Sale of assets Gains and losses from disposal of assets are recognised when control of the asset has passed to the buyer.

1.11 Capitation fees and levies Capitation fees and levies are to be recognised on an accrual basis and record as a revenue and/or expenses in the year to which it relates.

1.12 Employee beneÀts A liability is recognised for beneÀts accruing to employees in respect of wages and salaries, annual leave, long service leave and termination beneÀts when it is probable that settlement will be required and they are capable of being measured reliably.

Liabilities for short-term employee beneÀts (as deÀned in AASB 119 Employee BeneÀts) and termination beneÀts which are expected to be settled within twelve months of the end of reporting period are measured at their nominal amounts. The nominal amount is calculated with regard to the rates expected to be paid on settlement of the liability.

Other long-term employee beneÀts which are expected to be settled beyond twelve months are measured as the present value of the estimated future cash outÁows to be made by the reporting unit in respect of services provided by employees up to reporting date.

Payments to deÀned contribution retirement beneÀt plans are recognised as an expense when employees have rendered service entitling them to the contributions.

Provision is made for separation and redundancy beneÀt payments. Reporting Unit recognises a provision for termination as part of a broader restructuring when it has developed a detailed formal plan for the terminations and has informed those employees affected that it will carry out the terminations. A provision for voluntary termination is recognised when the employee has accepted the offer of termination.

1.13 Leases Leases are classiÀed as Ànance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessee. All other leases are classiÀed as operating leases.

Where an asset is acquired by means of a Ànance lease, the asset is capitalised at either the fair value of the lease property or, if lower, the present value of minimum lease payments at the inception of the contract and a liability is recognised at the same time and for the same amount.

The discount rate used is the interest rate implicit in the lease. Leased assets are amortised over the period of the lease. Lease payments are allocated between the principal component and the interest expense.

Operating lease payments are expensed on a straight-line basis which is representative of the pattern of beneÀts derived from the leased assets.

Rental revenue from operating leases is recognised on a straight-line basis over the term of the relevant lease. Initial direct costs incurred in negotiating and arranging an operating lease are added to the carrying amount of the leased asset and recognised on a straight-line basis over the lease term.

1.14 Borrowing costs All borrowing costs are recognised in proÀt and loss in the period in which they are incurred.

1.15 Cash Cash is recognised at its nominal amount. Cash and cash equivalents includes cash on hand, deposits held at call with bank, other short-term highly liquid investments with original maturity of 3 months or less that are readily convertible to known amounts of cash and subject to insigniÀcant risk of changes in value and bank overdrafts.

Bank overdrafts are shown within short-term borrowings in current liabilities on the consolidated statement of Ànancial position.

1.16 Financial instruments Financial assets and Ànancial liabilities are recognised when Shop, Distributive and Allied Employees’ Association NSW Deductions Account OfÀce becomes a party to the contractual provisions of the instrument.

Financial assets and Ànancial liabilities are initially measured at fair value. Transaction costs that are directly attributable to the acquisition or issue of Ànancial assets and Ànancial liabilities (other than Ànancial assets and Ànancial liabilities at fair value through proÀt or loss) are added to or deducted from the fair value of the Ànancial assets or Ànancial liabilities, as appropriate, on initial recognition. Transaction costs directly attributable to the acquisition of Ànancial assets or Ànancial liabilities at fair value through proÀt or loss are recognised immediately in proÀt or loss.

AASB 9 Financial Instruments (2010), AASB 9 Financial Instruments (2009) AASB 9 Financial Instruments (2009) introduces new requirements for the classiÀcation and measurement of Ànancial assets. Under AASB 9 (2009), Ànancial assets are classiÀed and measured based on the business model in which they are held and the characteristics of their contractual cash Áows. AASB 9 (2010) introduces additions relating to Ànancial liabilities. The IASB currently has an active project that may result in limited amendments to the classiÀcation and measurement requirements of AASB 9 and add new requirements to address the impairment of Ànancial assets and hedge accounting.

AASB 9 (2010 and 2009) are effective for annual periods beginning on or after 1 January 2015 with early adoption permitted. The extent of the impact has not been determined.

1.17 Financial assets Financial assets are classiÀed into the following speciÀed categories: Ànancial assets at fair value through proÀt or loss, held-to-maturity investments, available-for-sale Ànancial assets and loans and receivables. The classiÀcation depends on the nature and purpose of the Ànancial assets and is determined at the time of initial recognition. All regular way purchases or sales of Ànancial assets are recognised and derecognised upon trade date basis. Regular way purchases or sales are purchases or sales of Ànancial assets that require delivery of assets within the time frame established by regulation or convention in the marketplace.

Fair value through proÀt or loss Financial assets are classiÀed as at fair value through proÀt or loss when the Ànancial asset is either held for trading or it is designated as at fair value through proÀt or loss.

A Ànancial asset is classiÀed as held for trading if: • it has been acquired principally for the purpose of selling it in the near term; or • on initial recognition it is part of a portfolio of identiÀed Ànancial instruments that the reporting unit manages together and has a recent actual pattern of short-term proÀt-taking; or • it is a derivative that is not designated and effective as a hedging instrument.

A Ànancial asset other than a Ànancial asset held for trading may be designated as at fair value through proÀt or loss upon initial recognition if: • such designation eliminates or signiÀcantly reduces a measurement or recognition inconsistency that would otherwise arise; or • the Ànancial asset forms part of a group of Ànancial assets or Ànancial liabilities or both, which is managed and its performance is evaluated on a fair value basis, in accordance with the reporting unit’s documented risk management or investment strategy, and information about the grouping is provided internally on that basis; or • it forms part of a contract containing one or more embedded derivatives, and AASB 139 ‘Financial Instruments: Recognition and Measurement’ permits the entire combined contract (asset or liability) to be designated as at fair value through proÀt or loss.

Financial assets at fair value through proÀt or loss are stated at fair value, with any gains or losses arising on remeasurement recognised in proÀt or loss. The net gain or loss recognised in proÀt or loss incorporates any dividend or interest earned on the Ànancial asset and is included in the ‘other gains and losses’ line item in the statement of comprehensive income.

Held-to-maturity investments Financial assets with Àxed or determinable payments and Àxed maturity dates that the reporting unit has the positive intent and ability to hold to maturity are classiÀed as held-to-maturity investments. Held-to-maturity investments are measured at amortised cost using the effective interest method less any impairment.

Loan and receivables Trade receivables, loans and other receivables that have Àxed or determinable payments that are not quoted in an active market are classiÀed as ‘loans and receivables’. Loans and receivables are measured at amortised cost using the effective interest method less impairment. Interest is recognised by applying the effective interest rate, except for short-term receivables when the recognition of interest would be immaterial.

Effective interest method The effective interest method is a method of calculating the amortised cost of a debt instrument and of allocating interest income over the relevant period. The effective interest rate is the rate that exactly discounts estimated future cash receipts through the expected life of the Ànancial asset, or, when appropriate, a shorter period, to the net carrying amount on initial recognition.

Income is recognised on an effective interest rate basis except for debt instruments other than those Ànancial assets that are recognised at fair value through proÀt or loss.

Impairment of Ànancial assets Financial assets, other than those at fair value through proÀt or loss, are assessed for impairment at the end of each reporting period. Financial assets are considered to be impaired when there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the Ànancial asset, the estimated future cash Áows of the investment have been affected.

SDA NEWS SPRING 2014 – PAGE 39

SDA FINANCIAL REPORTS 2014 For certain categories of Ànancial asset, such as trade receivables, assets that are assessed not to be impaired individually are, in addition, assessed for impairment on a collective basis. Objective evidence of impairment for a portfolio of receivables could include the reporting units past experience of collecting payments, an increase in the number of delayed payments in the portfolio past the average credit period of 60 days, as well as observable changes in national or local economic conditions that correlate with default on receivables.

For Ànancial assets carried at amortised cost, the amount of the impairment loss recognised is the difference between the asset’s carrying amount and the present value of estimated future cash Áows, discounted at the Ànancial asset’s original effective interest rate.

For Ànancial assets carried at cost, the amount of the impairment loss is measured as the difference between the asset’s carrying amount and the present value of the estimated future cash Áows discounted at the current market rate of return for a similar Ànancial asset. Such impairment loss will not be reversed in subsequent periods.

The carrying amount of the Ànancial asset is reduced by the impairment loss directly for all Ànancial assets with the exception of trade receivables, where the carrying amount is reduced through the use of an allowance account.

When a trade receivable is considered uncollectible, it is written off against the allowance account. Subsequent recoveries of amounts previously written off are credited against the allowance account. Changes in the carrying amount of the allowance account are recognised in proÀt or loss.

When an available-for-sale Ànancial asset is considered to be impaired, cumulative gains or losses previously recognised in other comprehensive income are reclassiÀed to proÀt or loss in the period.

For Ànancial assets measured at amortised cost, if, in a subsequent period, the amount of the impairment loss decreases and the decrease can be related objectively to an event occurring after the impairment was recognised, the previously recognised impairment loss is reversed through proÀt or loss to the extent that the carrying amount of the investment at the date the impairment is reversed does not exceed what the amortised cost would have been had the impairment not been recognised.

In respect of available-for-sale equity securities, impairment losses previously recognised in proÀt or loss are not reversed through proÀt or loss. Any increase in fair value subsequent to an impairment loss is recognised in other comprehensive income and accumulated under the heading of investments revaluation reserve. In respect of available-for-sale debt securities, impairment losses are subsequently reversed through proÀt or loss if an increase in the fair value of the investment can be objectively related to an event occurring after the recognition of the impairment loss.

Derecognition of Ànancial assets The reporting unit derecognises a Ànancial asset only when the contractual rights to the cash Áows from the asset expire, or when it transfers the Ànancial asset and substantially all the risks and rewards of ownership of the asset to another entity. The difference between the assets’s carrying amount and the sum of the consideration received and receivable and the cumulative gain or loss that had been recognised in other comprehensive income and accumulated in equity is recognised in proÀt or loss.

1.18 Financial liabilities Financial liabilities are classiÀed as either Ànancial liabilities ‘at fair value through proÀt or loss’ or other Ànancial liabilities. Financial liabilities are recognised and derecognised upon ‘trade date’.

Fair value through proÀt or loss Financial liabilities are classiÀed as at fair value through proÀt or loss when the Ànancial liability is either held for trading or it is designated as at fair value through proÀt or loss.

A Ànancial liability is classiÀed as held for trading if: • it has been acquired principally for the purpose of repurchasing it in the near term; or • on initial recognition it is part of a portfolio of identiÀed Ànancial instruments that the reporting unit manages together and has a recent actual pattern of short-term proÀt-taking; or • it is a derivative that is not designated and effective as a hedging instrument.

A Ànancial liability other than a Ànancial liability held for trading may be designated as at fair value through proÀt or loss upon initial recognition if: • such designation eliminates or signiÀcantly reduces a measurement or recognition inconsistency that would otherwise arise; or • the Ànancial liability forms part of a group of Ànancial assets or Ànancial liabilities or both, which is managed and its performance is evaluated on a fair value basis, in accordance with the reporting units documented risk management or investment strategy, and information about the grouping is provided internally on that basis; or • it forms part of a contract containing one or more embedded derivatives, and AASB 139 ‘Financial Instruments: Recognition and Measurement’ permits the entire combined contract (asset or liability) to be designated as at fair value through proÀt or loss.

Financial liabilities at fair value through proÀt or loss are stated at fair value, with any gains or losses arising on remeasurement recognised in proÀt or loss. The net gain or loss recognised in proÀt or loss incorporates any interest paid on the Ànancial liability and is included in the ‘other gains and losses’ line item in the statement of comprehensive income.

Other Ànancial liabilities Other Ànancial liabilities, including borrowings and trade and other payables, are initially measured at fair value, net of transaction costs.

Other Ànancial liabilities are subsequently measured at amortised cost using the effective interest method, with interest expense recognised on an effective yield basis.

Derecognition of Ànancial liabilities The reporting unit’s derecognises Ànancial liabilities when, and only when, the reporting unit’s obligations are discharged, cancelled or they expire. The difference between the carrying amounts of the Ànancial liability derecognised and the consideration paid and payable is recognised in proÀt or loss.

1.19 Contingent liabilities and contingent assets Contingent liabilities and contingent assets are not recognised in the Statement of Financial Position but are reported in the relevant notes. They may arise from uncertainty as to the existence of a liability or asset or represent an existing liability or asset in respect of which the amount cannot be reliably measured. Contingent assets are disclosed when settlement is probable but not virtually certain, and contingent liabilities are disclosed when settlement is greater than remote.

1.20 Land, buildings, plant and equipment Asset recognition threshold Purchases of land, buildings, plant and equipment are recognised initially at cost in the Statement of Financial Position. The initial cost of an asset includes an estimate of the cost of dismantling and removing the item and restoring the site on which it is located.

Revaluations—land and buildings Following initial recognition at cost, land and buildings are carried at fair value less subsequent accumulated depreciation and accumulated impairment losses. Revaluations are performed with sufÀcient frequency such that the carrying amount of assets do not differ materially from those that would be determined using fair values as at the reporting date.

Revaluation adjustments are made on a class basis. Any revaluation increment is credited to equity under the heading of asset revaluation reserve except to the extent that it reversed a previous revaluation decrement of the same asset class that was previously recognised in the surplus/deÀcit. Revaluation decrements for a class of assets are recognised directly in the proÀt or loss except to the extent that they reverse a previous revaluation increment for that class. Any accumulated depreciation as at the revaluation date is eliminated against the gross carrying amount of the asset and the asset is restated to the revalued amount.

Depreciation Depreciable property, plant and equipment assets are written-off to their estimated residual values over their estimated useful life using, in all cases, the straight line method of depreciation. Depreciation rates (useful lives), residual values and methods are reviewed at each reporting date and necessary adjustments are recognised in the current, or current and future reporting periods, as appropriate.

Depreciation rates applying to each class of depreciable asset are based on the following useful lives:

2014 2013 Land & Buildings 40 years 40 years Plant & equipment 4 to 40 years 4 to 40 years Derecognition An item of land, buildings, plant and equipment is derecognised upon disposal or when no future economic beneÀts are expected from its use or disposal. Any gain or loss arising on the disposal or retirement of an item of property, plant and equipment is determined as the difference between the sales proceeds and the carrying amount of the asset and is recognised in the proÀt and loss.

1.21 Investment Property Investment properties are properties held to earn rentals and/or for capital appreciation (including property under construction for such purposes). Investment properties are measured initially at its cost, including transaction costs.

Subsequent to initial recognition, investment properties are measured at fair value. Gains and losses arising from changes in the fair value of investment properties are included in proÀt and loss in the period in which they arise.

An investment property is derecognised upon disposal or when the investment property is permanently withdrawn from use and no future economic beneÀts are expected from the disposal. Any gain or loss arising on derecognition of the property (calculated as the difference between the net disposal proceeds and the carrying amount of the asset) is included in proÀt or loss in the period in which the property is derecognised.

1.22 Impairment for non-Ànancial assets All assets are assessed for impairment at the end of each reporting period to the extent that there is an impairment trigger. Where indications of impairment exist, the asset’s recoverable amount is estimated and an impairment adjustment made if the asset’s recoverable amount is less than its carrying amount.

The recoverable amount of an asset is the higher of its fair value less costs to sell and its value in use. Value in use is the present value of the future cash Áows expected to be derived from the asset. Where the future economic beneÀt of an asset is not primarily dependent on the asset’s ability to generate future cash Áows, and the asset would be replaced if the Association were deprived of the asset, its value in use is taken to be its depreciated replacement cost.

1.23 Non-current assets held for sale Non-current assets are classiÀed as held for sale if their carrying amount will be recovered principally through a sale transaction rather than through continuing use. This condition is regarded as met only when the sale is highly probable and the non-current asset is available for immediate sale in its present condition. Management must be committed to the sale, which should be expected to qualify for recognition as a completed sale within one year from the date of classiÀcation.

Non-current assets classiÀed as held for sale are measured at the lower of their previous carrying amount and fair value less costs of disposal.

1.24 Taxation Shop, Distributive and Allied Employees’ Association NSW Deductions Account OfÀce is exempt from income tax under section 50.1 of the Income Tax Assessment Act 1997 however still has obligation for Fringe BeneÀts Tax (FBT) and the Goods and Services Tax (GST).

Revenues, expenses and assets are recognised net of GST except: • where the amount of GST incurred is not recoverable from the Australian Taxation OfÀce; and • for receivables and payables.

The net amount of GST recoverable from, or payable to, the taxation authority is included as part of receivables or payables.

Cash Áows are included in the cash Áow statement on a gross basis. The GST component of cash Áows arising from investing and Ànancing activities which is recoverable from, or payable to, the Australian Taxation OfÀce is classiÀed within operating cash Áows.

1.25 Fair value measurement Shop, Distributive and Allied Employees’ Association NSW Deductions Account OfÀce measures Ànancial instruments, such as, Ànancial asset as at fair value through the proÀt and loss, available for sale Ànancial assets, and non-Ànancial assets such as land and buildings and investment properties, at fair value at each balance sheet date. Also, fair values of Ànancial instruments measured at amortised cost are disclosed in Note 16A. Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The fair value measurement is based on the presumption that the transaction to sell the asset or transfer the liability takes place either: • In the principal market for the asset or liability, or • In the absence of a principal market, in the most advantageous market for the asset or liability The principal or the most advantageous market must be accessible by the Association. The fair value of an asset or a liability is measured using the assumptions that market participants would use when pricing the asset or liability, assuming that market participants act in their economic best interest.

A fair value measurement of a non-Ànancial asset takes into account a market participant’s ability to generate economic beneÀts by using the asset in its highest and best use or by selling it to another market participant that would use the asset in its highest and best use.

Shop, Distributive and Allied Employees’ Association NSW Deductions Account OfÀce uses valuation techniques that are appropriate in the circumstances and for which sufÀcient data are available to measure fair value, maximising the use of relevant observable inputs and minimising the use of unobservable inputs.

All assets and liabilities for which fair value is measured or disclosed in the Ànancial statements are categorised within the fair value hierarchy, described as follows, based on the lowest level input that is signiÀcant to the fair value measurement as a whole: • Level 1—Quoted (unadjusted) market prices in active markets for identical assets or liabilities • Level 2—Valuation techniques for which the lowest level input that is signiÀcant to the fair value measurement is directly or indirectly observable • Level 3—Valuation techniques for which the lowest level input that is signiÀcant to the fair value measurement is unobservable For assets and liabilities that are recognised in the Ànancial statements on a recurring basis, the Shop, Distributive and Allied Employees’ Association NSW Deductions Account OfÀce determines whether transfers have occurred between Levels in the hierarchy by re-assessing categorisation (based on the lowest level input that is signiÀcant to the fair value measurement as a whole) at the end of each reporting period.

External valuers are involved for valuation of signiÀcant assets, such as land and buildings and investment properties. Selection criteria include market knowledge, reputation, independence and whether professional standards are maintained. For the purpose of fair value disclosures, the Shop, Distributive and Allied Employees’ Association NSW Deductions Account OfÀce has determined classes of assets and liabilities on the basis of the nature, characteristics and risks of the asset or liability and the level of the fair value hierarchy.

1.26 Going concern Shop, Distributive and Allied Employees’ Association NSW Deductions Account OfÀce has not received Ànancial support from another reporting unit.

Shop, Distributive and Allied Employees’ Association NSW Deductions Account OfÀce does not provide Ànancial support to any other reporting unit.

Shop, Distributive and Allied Employees’ Association NSW Deductions Account OfÀce’s ability to continue as a going concern is not reliant on the support of another reporting unit.

NOTE 2: EVENTS AFTER THE REPORTING PERIOD There were no events that occurred after 30 June 2014, and/or prior to the signing of the Ànancial statements, that would affect the ongoing structure and Ànancial activities of Shop, Distributive and Allied Employees’ Association NSW Deductions Account OfÀce.

NOTE 3: INCOME NOTE 3A: CAPITATION FEES Capitation fees Total capitation fees NOTE 3B: LEVIES Levies Total levies NOTE 3C: INTEREST Deposits Loans Total interest NOTE 3D: RENTAL REVENUE Properties Other Total rental revenue NOTE 3E: GRANTS OR DONATIONS Grants Donations Total grants or donations NOTE 3F: NET GAINS FROM SALE OF ASSETS Land and buildings Plant and equipment Intangibles Total net gains from sale of assets

SDA NEWS SPRING 2014 – PAGE 40

2014 $

2013 $

-

-

-

-

237,445 237,445

271,698 271,698

1,066,032 1,066,032

842,557 842,557

-

-

115,049 115,049

66,251 66,251

SDA FINANCIAL REPORTS 2014 NOTE 4: EXPENSES 2014 $ 2013 $ NOTE 4A: EMPLOYEE EXPENSES Holders of ofÀce: Wages and salaries 308,640 278,103 Superannuation 64,035 59,879 Leave and other entitlements (3,497) 2,663 Separation and redundancies 24,937 26,549 Other employee expenses 394,115 367,194 Subtotal employee expenses holders of ofÀce Employees other than ofÀce holders: Wages and salaries 5,047,802 4,966,162 Superannuation 536,722 515,019 Leave and other entitlements 708,170 673,360 Separation and redundancies 598,897 586,166 Other employee expenses 6,891,591 6,740,707 Subtotal employee expenses employees other than ofÀce holders Total employee expenses 7,285,706 7,107,901 NOTE 4B: CAPITATION FEES Capitation fees Total capitation fees NOTE 4C: AFFILIATION FEES AfÀliation fees Total afÀliation fees/subscriptions NOTE 4D: ADMINISTRATION EXPENSES Consideration paid to employers for payroll deductions 1,473,056 1,430,799 Compulsory Levies Fees/Allowances – meeting and conferences Conference and meeting expenses 84,947 85,984 Accommodation and travel expenses 148,630 133,861 Contractors/consultants 492,078 505,702 Occupancy expenses 958,972 986,775 Printing, postage and stationery 199,689 278,934 Telephone expenses 176,039 173,292 Insurance expenses 601,306 485,335 Motor Vehicle expenses 494,680 487,940 NSW Branch expenses 3,893,894 4,656,347 371,793 277,475 Other Subtotal administration expenses 8,895,084 9,502,444 Operating lease rental 334,267 349,249 Minimum lease payments Total administration expenses 9,229,351 9,851,693 Note: Operating lease rental payments Operating lease rental payments were included in Printing, Postage and Stationery expenses and Occupancy expenses in year 2013. This amount was disclosed separately in Note 3: ProÀt from Ordinary Activities in year 2013 Ànancial reports.

In year 2014, the operating lease rental payments are disclosed separately.

Conference and meeting expenses Conference and meeting expenses were included in Accommodation and Travel Expenses and Other expenses in year 2013. This amount was disclosed separately in Note 3: ProÀt from Ordinary Activities in year 2013 Ànancial reports.

In year 2014, the operating lease rental payments are disclosed separately.

NOTE 4E: GRANTS OR DONATIONS Grants Total paid that were $1,000 or less Total paid that exceeded $1,000 Donations Total paid that were $1,000 or less 8,066 3,747 Total paid that exceeded $1,000 97,214 23,285 105,280 27,032 Total grants or donations NOTE 4F: DEPRECIATION AND AMORTISATION Depreciation Land & Building 257,557 245,027 Property, plant & equipment 540,846 558,590 798,403 803,617 Total depreciation Amortisation Intangible Total amortisation 798,403 803,617 Total depreciation and amortisation NOTE 4G: LEGAL COSTS Litigation 21,661 29,210 58,372 166,795 Other legal matters Total legal costs 80,033 196,005 NOTE 4H: OTHER EXPENSES Penalties – via RO Act or RO Regulations Total other expenses NOTE 5: CURRENT ASSETS NOTE 5A: CASH AND CASH EQUIVALENTS Cash at bank 1,548,633 518,708 Cash on hand 1,450 1,450 Short term deposits 7,282,178 5,600,921 Other Total cash and cash equivalents 8,832,261 6,121,079 NOTE 5B: TRADE AND OTHER RECEIVABLES Receivables from other reporting unit(s) Name Total receivables from other reporting unit(s) Less provision for doubtful debts Name Total provision for doubtful debts Receivable from other reporting unit(s) net Other receivables GST receivable from the Australian Taxation OfÀce Other trade receivables 699,676 2,144,878 699,676 2,144,878 Total other receivables 699,676 2,144,878 Total trade and other receivables (net) NOTE 5C: OTHER CURRENT ASSETS Prepayments 117,586 87,091 117,586 87,091 Total other current assets NOTE 6: NON-CURRENT ASSETS NOTE 6A: LAND & BUILDINGS Land and buildings: Fair value 9,377,750 9,452,500 (431,300) (256,975) Accumulated depreciation 8,946,450 9,195,525 Total land and buildings Reconciliation of the opening and closing balances of land and buildings As at 1 July Gross book value 9,452,500 9,452,500 Accumulated depreciation and impairment (256,975) (20,663) Net book value 1 July 9,195,525 9,431,837 Additions: By purchase From acquisition of entities (including restructuring) Revaluations (74,750) Impairments Depreciation expenses (174,325) (236,312)

2014 $ 2013 $ Other movement Disposals: From disposal of entities (including restructuring) Other Net book value 30 June 8,946,450 9,195,525 Net book value as of 30 June represented by: Gross book value 9,377,750 9,452,500 Accumulated depreciation and impairment (431,300) (256,975) Net book value 30 June 8,946,450 9,195,525 Fair value of the properties was determined by using market comparable method. This means that valuations performed by the valuer are based on active market prices, signiÀcantly adjusted for difference in the nature, location or condition of the speciÀc property. As at the date of revaluation 30 June 2014, the properties’ fair values are based on valuations performed by Jack Mason, an accredited independent valuer with a recognised professional qualiÀcation in Australian Property Institute and with recent experience in the location and category of the investment property being valued.

A signiÀcant increase (decrease) in estimated price per square metre in isolation would result in a signiÀcantly higher (lower) fair value.

NOTE 6B: PLANT AND EQUIPMENT Plant and equipment At cost 3,647,509 3,538,893 (2,288,031) (2,177,704) Accumulated depreciation 1,359,478 1,361,189 Total plant and equipment Reconciliation of the opening and closing balances of plant and equipment As at 1 July Gross book value 4,190,774 4,065,611 Accumulated depreciation and impairment (2,829,585) (2,515,618) Net book value 1 July 1,361,189 1,549,993 Additions: By purchase 662,130 500,066 From acquisition of entities (including restructuring) Impairments Depreciation expenses (540,841) (562,471) Other movement Disposals: From disposal of entities (including restructuring) Other (123,000) (126,399) Net book value 30 June 1,359,478 1,361,189 Net book value as of 30 June represented by: Gross book value 3,647,509 3,538,893 Accumulated depreciation and impairment (2,288,031) (2,177,704) Net book value 30 June 1,359,478 1,361,189 NOTE 6: NON-CURRENT ASSETS NOTE 6C: INVESTMENT PROPERTY Property Opening balance as at 1 July 14,952,633 14,912,979 Additions – at cost 39,654 1,149,367 Net gain from fair value adjustment 16,102,000 14,952,633 Closing balance as at 30 June Property Opening balance as at 1 July Additions – at cost 4,579,223 4,630,122 (1,640,888) (1,185,079) Amortisation of lease incentives 2,938,335 3,445,043 Closing balance as at 30 June Total Investment property 19,040,335 18,397,676 The valuations were performed by Mark Willers of LandMark White, an accredited independent valuer with a recognised and relevant professional qualiÀcation in Australian Property Institute and with recent experience in the location and category of the investment property being valued.

The fair value of completed investment property has been determined on a market value basis in accordance with International Valuation Standards (IVS), as set out by the International Valuation Standards Council (IVSC). In arriving at their estimates of market values, the valuers have used their market knowledge and professional judgement and not only relied on historical transactional comparables.

The highest and best use of the investment properties is not considered to be different from its current use.

Rental income earned and received from the investment properties during the year was $1,426,712 (2013: 1,281,085).

Direct expenses incurred in relation to the investment properties that generated rental income during the year was $546,672 (2013: $580,769). During the year and as at the year-end, no restrictions on the realisability of investment property or the remittance of income and proceeds of disposal were present. The Association does not have any contractual obligations to purchase, construct or develop investment property or for repairs, maintenance or enhancements.

The fair value of investment property is determined by LandMark White using recognised valuation techniques. These techniques comprise both the Discounted Cash Flow (DCF) method and Income Capitalisation method.

Under the DCF method, a property’s fair value is estimated using explicit assumptions regarding the beneÀts and liabilities of ownership over the asset’s life including estimated rental income and an exit or terminal value.

This involves the projection of a series of cash Áows and to this an appropriate, market-derived discount rate is applied to establish the present value of the income stream. Under the income capitalisation method, a property’s fair value is estimated based on the normalised net operating income generated by the property, which is divided by the capitalisation rate (the investor’s rate of return).

NOTE 6D: OTHER INVESTMENTS 2014 $ 2013 $ Deposits Other Total other investments NOTE 6E: OTHER NON-CURRENT ASSETS Prepayments 772,356 519,587 Other 772,356 519,587 Total other non-Ànancial assets NOTE 7: CURRENT LIABILITIES NOTE 7A: TRADE PAYABLES Trade creditors and accruals 1,091,822 949,759 Operating lease rentals 1,091,822 949,759 Subtotal trade creditors Payables to other reporting unit(s) Subtotal payables to other reporting unit(s) 1,091,821 949,759 Total trade payables Settlement is usually made within 30 days.

NOTE 7B: OTHER PAYABLES Wages and salaries Superannuation Consideration to employers for payroll deductions* Legal costs* Prepayments received/unearned revenue GST payable 175,545 26,640 Other Total other payables 175,545 26,640 Total other payables are expected to be settled in: No more than 12 months 175,545 26,640 More than 12 months 175,545 26,640 Total other payables NOTE 8: PROVISIONS NOTE 8A: EMPLOYEE PROVISIONS OfÀce holders: Annual leave 54,743 64,281 Long service leave 157,272 151,715 Separation and redundancies Other 212,015 215,996 Subtotal employee provisions - ofÀce holders

SDA NEWS SPRING 2014 – PAGE 41

SDA FINANCIAL REPORTS 2014 Employees other than ofÀce holders: Annual leave Long service leave Separation and redundancies Other Subtotal employee provisions - employees other than ofÀce holders Annual leave Long service leave Total employee provisions Current Non Current Total employee provisions NOTE 9 NON-CURRENT LIABILITIES NOTE 9A: OTHER NON-CURRENT LIABILITIES Total other non-current liabilities

2014 $

2013 $

777,441 1,258,463 2,035,904 832,184 1,415,735 2,247,919 2,213,552 34,367 2,247,919

769,885 1,208,555 1,978,440 834,166 1,360,270 2,194,436 2,142,824 51,612 2,194,436

-

-

NOTE 10: EQUITY NOTE 10A: GENERAL FUNDS Asset Revaluation Reserves Balance as at starts of year 3,378,769 Transferred to reserve 2,549,750 Transferred out of reserves (1,413,146) Balance as at end of year 4,515,373 Total Reserves 4,515,373 NOTE 11: CASH FLOW NOTE 11A: CASH FLOW RECONCILIATION Reconciliation of cash and cash equivalents as per Balance Sheet to Cash Flow Statement: Cash and cash equivalents as per: Cash Áow statement 8,832,261 Balance sheet 8,832,261 Difference Reconciliation of proÀt/(deÀcit) to net cash from operating activities: ProÀt/(deÀcit) for the year 460,062 Adjustments for non-cash items (Increase)/decrease in net receivables 1,445,202 (Increase)/decrease in prepayments (283,265) Increase/(decrease) in supplier payables 290,967 Increase/(decrease) in other payables Increase/(decrease) in employee provisions 53,483 Increase/(decrease) in other provisions Amortisation Depreciation 798,403 (ProÀt)/loss on sale of Àxed assets (115,049) Net cash from (used by) operating activities 2,649,803 NOTE 11B: CASH FLOW INFORMATION Cash inÁows Shop, Distributive & Allied Employees’ Association Branch Total cash inÁows

19,777,432

3,378,769 3,378,769 3,378,769

6,121,079 6,121,079 (782,437) (1,478,044) (204,687) 576,973 56,068 526,377 803,617 (66,251) (568,384)

16,213,889

Cash outÁows Shop, Distributive & Allied Employees’ Association Branch 3,893,894 4,656,347 Total cash outÁows 17,066,250 18,294,025 NOTE 12: CONTINGENT LIABILITIES, ASSETS AND COMMITMENTS NOTE 12A: COMMITMENTS AND CONTINGENCIES Operating lease commitments – as lessee Non-cancellable operating leases contracted for but not capitalised in the Ànancial statements.

Future minimum rentals payable under non-cancellable operating leases as at 30 June are as follows: Within one year 263,818 334,267 After one year but not more than Àve years 266,970 530,325 More than Àve years Closing balance as at 30 June 2014 530,788 864,592 The operating leases (property, plant, equipment and a membership hosting system) are non-cancellable with a Àve year term, with rent payable quarterly or monthly in advance. The leases provide a right of renewal at which time all terms are renegotiated.

Capital commitments The Association has not entered into any capital commitments.

Other contingent assets or liabilities (i.e. legal claims) The Association is not aware of any contingent asset or liability.

NOTE 13: RELATED PARTY DISCLOSURES NOTE 13A: RELATED PARTY TRANSACTIONS FOR THE REPORTING PERIOD The following table provides the total amount of transactions that have been entered into with related parties for the relevant year.

Revenue received from related parties Expenses paid to Shop, Distributive and Allied Employees’ Association NSW Branch includes the following: Shop, Distributive and Allied NSW Branch Expenses 3,893,894 4,656,347 Donated to Australian Labor Party includes the following: Donated to Australian Labor Party 2013 Federal Election 71,632 NOTE 13B: KEY MANAGEMENT PERSONNEL REMUNERATION FOR THE REPORTING PERIOD Key Management Personnel Gerard Dwyer Bernie Smith Corrine Boyle Total Remuneration for 2014 SecretaryAssistant Information Treasurer Secretary OfÀcer $ $ $ Short-term employee beneÀts Salary (including annual leave taken) 122,379 108,017 78,244 308,640 Honorarium Annual leave accrued 1,480 1,480 11,569 10,312 3,056 24,937 Non-monetary (motor vehicle and parking) 133,948 119,809 81,300 335,057 Total short-term employee beneÀts Post-employment beneÀts: 27,512 21,627 14,896 64,035 Superannuation 27,512 21,627 14,896 64,035 Total post-employment beneÀts Other long-term beneÀts: 2,426 2,558 4,984 Long-service leave 2,426 2,558 4,984 Total other long-term beneÀts 163,886 141,436 98,754 404,076 Total

Key Management Personnel Remuneration for 2013 Short-term employee beneÀts Salary (including annual leave taken) Honorarium Annual leave accrued Non-monetary (motor vehicle and parking) Total short-term employee beneÀts Post-employment beneÀts: Superannuation Total post-employment beneÀts Other long-term beneÀts: Long-service leave Total other long-term beneÀts Total

Gerard Dwyer SecretaryTreasurer $

Bernie Smith Assistant Secretary $

Corrine Boyle Information OfÀcer $

Total

101,979 12,114 114,093

104,216 11,815 116,031

71,908 2,620 74,528

278,103 26,549 304,652

25,290 25,290

20,444 20,444

14,145 14,145

59,879 59,879

8,496 8,496 147,879

3,877 3,877 140,352

3,412 3,412 92,085

15,785 15,785 380,316

NOTE 14: REMUNERATION OF AUDITORS Value of the services provided Grech Smith Bridle Financial statement audit services Other services Total remuneration of auditors

2014 $

2013 $

48,200 48,200

47,500 47,500

NOTE 15: FINANCIAL INSTRUMENTS The Association’s Ànancial instruments consist primarily of deposits with banks, short term investments, accounts receivable and accounts payable. The totals for each category of Ànancial Instruments are summarised in note 15A. The committee of management has overall responsibility for the establishment and oversight of risk management policies. Main policies aim to minimise potential risk exposure by actively securing short to medium term cash Áows through minimising exposure to Ànancial markets. The association currently does not hold any long term Ànancial instruments. The Association does not actively engage in the trading of Ànancial assets for speculative purposes.

The main risks faced by the Association consist of; credit risk, liquidity risk and market risk, which are outlined below. a) Credit risk Credit risk is the risk of Ànancial loss to the Association if a counterparty to a Ànancial instrument fails to meet its contractual obligations, and arises primarily from the Association’s receivables and other Ànancial assets. i) Receivables The Associations exposure to credit risk is inÁuenced mainly by the individual characteristics of each customer or tenant. The Association takes reasonable steps to ensure the credit worthiness of tenants. None of the tenants were in arrears at balance sheet date and there is no indication that any present signiÀcant credit risk.

The Association continuously monitors defaults of customers and incorporates this information into its credit risk policies. ii) Cash and cash equivalents the maximum exposure of these assets is shown in note 15D. The cash and cash equivalents are held with bank counterparties, all of which are located in Australia. b) Liquidity risk Liquidity risk is the risk that the Association will encounter difÀculty in meeting the obligations associated with its Ànancial liabilities that are settled by delivering cash or another Ànancial asset. The Association manages liquidity risk by monitoring forecast cash Áows and ensuring that adequate cash facilities are maintained to meet liabilities when due under both normal and stress conditions, without incurring any unacceptable losses. See note 15E. c) Market Risk Market risk is the risk that changes in the market prices, such as foreign exchange rates, interest rates and equity prices will affect the Associations income or the value of its holdings of Ànancial instruments. The Association aims to control and manage market risk exposures to acceptable levels, while optimising return. See note 15F. i) Interest rate risk The Association’s interest rate risk arises primarily from investments in term deposits which are issued at Àxed rates for 90 day terms. Term deposits mature at regular intervals to smooth Áuctuations in interest rates being offered. The majority of cash reserves are held in term deposits with the remainder held in variable rate at call cash accounts used to provide liquidity of funds.

Capital Management In conjunction with the above risk policies, speciÀcally those relating to Ànancial instruments, the Association’s policy is to maintain a strong capital base so as to sustain member, creditor and market conÀdence and to sustain future development of the unions activities. The committee of management monitors the return on capital and seeks to maintain a conservative position. There were no changes in the Associations approach to capital management during the year.

NOTE 15A: CATEGORIES OF FINANCIAL INSTRUMENTS Financial assets Fair value through proÀt or loss: Total Held-to-maturity investments: 90 Day Term deposit 30 Day Term Deposit Total Loans and receivables: Trade and other receivables Total Carrying amount of Ànancial assets Financial Liabilities Other Ànancial liabilities: Trade and other payables Total Carrying amount of Ànancial liabilities NOTE 15B: NET INCOME AND EXPENSE FROM FINANCIAL ASSETS Held-to-maturity Interest revenue Exchange gains/(loss) Impairment Gain/loss on disposal Net gain/(loss) held-to-maturity Loans and receivables Interest revenue Exchange gains/(loss) Impairment Gain/loss on disposal Net gain/(loss) from loans and receivables Available for sale Interest revenue Dividend revenue Exchange gains/(loss) Gain/loss recognised in equity Amounts reversed from equity: Impairment Fair value changes reversed on disposal Gain/loss on disposal Net gain/(loss) from available for sale

SDA NEWS SPRING 2014 – PAGE 42

2014 $ -

2013 $ -

7,200,000 7,200,000

3,300,000 2,000,000 5,300,000

699,676 699,676 7,899,676

2,144,878 2,144,878 7,444,878

1,267,366 1,267,366 1,267,366

976,399 976,399 976,399

230,813 230,813

260,982 260,982

-

-

-

-

SDA FINANCIAL REPORTS 2014 2014 $

2013 $ Fair value through proÀt and loss: Held for trading: Change in fair value Interest revenue Dividend revenue Exchange gains/(loss) Total held for trading Designated as fair value through proÀt and loss: Change in fair value Interest revenue Dividend revenue Exchange gains/(loss) Total designated as fair value through proÀt and loss Net gain/(loss) at fair value through proÀt and loss Net gain/(loss) from Ànancial assets 230,813 260,982 All Ànancial assets and liabilities are deemed to be at fair value.

The net income/expense from Ànancial assets not at fair value from proÀt and loss is $0 (2013: $0).

NOTE 15C: NET INCOME AND EXPENSE FROM FINANCIAL LIABILITIES At amortised cost Interest expenses Exchange gains/(loss) Gain/loss on disposal Net gain/(loss) Ànancial liabilities – at amortised cost Fair value through proÀt and loss Held for trading: Change in fair value Interest expense Exchange gains/(loss) Total held for trading Designated as fair value through proÀt and loss: Change in fair value Interest expense Total designated as fair value through proÀt and loss Net gain/(loss) at fair value through proÀt and loss The net income/expense from Ànancial liabilities not at fair value from proÀt and loss is $0. (2013:$0).

NOTE 15D: CREDIT RISK The Association is not exposed to any material credit risk.

The following table illustrates the entity’s gross exposure to credit risk, excluding any collateral or credit enhancements.

Financial assets Cash and cash equivalents 8,832,261 6,121,078 Receivables 699,676 2,144,878 Total 9,531,937 8,265,956 Financial liabilities Payables 1,267,366 976,399 Total 1,267,366 976,399 In relation to the entity’s gross credit risk the following collateral is held: nil Credit quality of Ànancial instruments not past due or individually determined as impaired Not Past Due Past due Not Past Due Past due Nor Impaired or impaired Nor Impaired or impaired 2014 2014 2013 2013 $ $ $ $ Cash and cash equivalents 8,832,261 6,121,078 6,99,676 2,144,878 Receivables 9,531,937 8,265,956 Total Ageing of Ànancial assets that were past due but not impaired for 2014 None of the Association’s receivables are past due, and based on past default rates and minimal credit risk, the Association believes no impairment allowance is necessary.

Other Ànancial assets consist of term deposits and at call accounts, held with the Commonwealth Bank of Australia, thus the Association believes no impairment allowance is necessary.

As at 30 June 2014 the Association does not have any collective impairments on its cash and cash equivalents or receivables. None of the receivables lie outside Australia.

Ageing of Ànancial assets that were past due but not impaired for 2013 None of the Association’s receivables are past due, and based on past default rates and minimal credit risk, the Association believes no impairment allowance is necessary.

Other Ànancial assets consist of term deposits and at call accounts, held with the Commonwealth Bank of Australia, thus the Association believes no impairment allowance is necessary.

As at 30 June 2013 the Association does not have any collective impairments on its cash and cash equivalents or receivables. None of the receivables lie outside Australia.

NOTE 15E: LIQUIDITY RISK The Association manages liquidity risk by monitoring forecast cash Áows and ensuring that adequate cash facilities are maintained. The Association assess the liquidity risk as minimal as it holds sufÀcient Ànancial assets to cover the expected contractual outÁows.

Contractual maturities for Ànancial liabilities 2014 On Demand < 1 year 1-2 years 2-5 years > 5 years Total $ $ $ $ $ $ Trade payables 1,267,366 1,267,366 Total 1,267,366 1,267,366 Maturities for Ànancial liabilities 2013 On Demand < 1 year 1-2 years 2-5 years > 5 years Total $ $ $ $ $ $ Trade payables 976,399 976,399 976,399 976,399 Total

Price Risk The Association is not exposed to any price risk.

Foreign Currency Risk The Association is not exposed to Áuctuations in foreign currencies.

NOTE 16: FAIR VALUE MEASUREMENT NOTE 16A: FINANCIAL ASSETS AND LIABILITIES Management of the reporting unit assessed that cash, trade receivables, trade payables, and other current liabilities approximate their carrying amounts largely due to the short term maturities of these instruments.

The fair value of Ànancial assets and liabilities is included at the amount which the instrument could be exchanged in a current transaction between willing parties. The following methods and assumptions were used to estimate the fair values: Fair values of the reporting unit’s interest-bearing borrowings and loans are determined by using a discounted cash Áow method. The discount rate used reÁects the issuer’s borrowing rate as at the end of the reporting period. The own performance risk as at 30 June 2014 was assessed to be insigniÀcant.

Fair value of available-for-sale Ànancial assets is derived from quoted market prices in active markets.

Long-term Àxed-rate and variable-rate receivables/borrowings are evaluated by the Group based on parameters such as interest rates and individual credit worthiness of the customer. Based on this evaluation, allowances are taken into account for the expected losses of these receivables. As at 30 June 2014 the carrying amounts of such receivables, net of allowances, were not materially different from their calculated fair values.

The Association measures and recognises the following assets at their fair value on a recurring basis after initial recognition: - Available-for-sale Ànancial assets; and - Freehold land and building The following table contains the carrying amounts and related fair values for the Shop, Distributive and Allied Employees’ Association NSW Deductions Account OfÀce Ànancial assets and liabilities: Carrying Amount $

2014

Fair Value $

Carrying Amount $

2013

Fair Value $

Financial assets: Cash and cash equivalents 8,832,261 8,832,261 6,121,079 6,121,079 Trade and other receivables 699,676 699,676 2,144,878 2,144,878 Total 9,531,937 9,531,937 8,265,957 8,265,957 Financial liabilities: Trade and other payables 1,267,366 1,267,366 976,399 976,399 Total 1,267,366 1,267,366 976,399 976,399 NOTE 16B: FAIR VALUE HIERARCHY The following table provide an analysis of Ànancial and non Ànancial assets and liabilities that are measured at fair value, by fair value hierarchy.

Fair value hierarchy 30 June 2014 Date Level 1 Level 2 Level 3 of valuation $ $ $ Assets measured at fair value Non-Ànancial assets Land & Building 30 June 2014 8,946,450 Investment Property 30 June 2014 19,040,335 Total 27,986,785 Liabilities measured at fair value Total Fair value hierarchy 30 June 2013 Date Level 1 Level 2 Level 3 of valuation $ $ $ Assets measured at fair value Non-Ànancial assets Land & Building 9,195,525 Investment Property 18,397,676 Total 27,593,201 Liabilities measured at fair value Total Note: No revaluations took place in year 2013.

NOTE 17: ACQUISITIONS The reporting unit has not acquired an asset or a liability during the Ànancial year as a result of: a) an amalgamation under Part 2 of Chapter 3, of the RO Act in which the organisation (of which the reporting unit form part) was the amalgamated organisation; or b) a restructure of the branches of the organisation; or c) a determination by the General Manager under subsection 245(1) of the RO Act of an alternative reporting structure for the organisation; or d) a revocation by the General Manager under subsection 249(1) of the RO Act of a certiÀcate issued to an organisation under subsection 245(1).

NOTE 18: SECTION 272 FAIR WORK (REGISTERED ORGANISATIONS) ACT 2009 In accordance with the requirements of the Fair Work (Registered Organisations) Act 2009, the attention of members is drawn to the provisions of subsections (1) to (3) of section 272, which reads as follows: Information to be provided to members or General Manager: 1) A member of a reporting unit, or the General Manager, may apply to the reporting unit for speciÀed prescribed information in relation to the reporting unit to be made available to the person making the application.

2) The application must be in writing and must specify the period within which, and the manner in which, the information is to be made available. The period must not be less than 14 days after the application is given to the reporting unit.

3) A reporting unit must comply with an application made under subsection (1).

NOTE 15F: MARKET RISK Interest Rate Risk Interest rate risk is managed with a mixture of Àxed and Áoating rate cash balances. At 30 June 2014 approximately 82.45% of the Association’s cash balance is Àxed.

The Àxed rate instruments consist of 90 day term deposits and money market call account, shown in cash and cash equivalents (Note 5A). A one percent (1.0%) change in interest rates at the reporting date would have increased (decreased) equity and proÀt or loss by the amounts shown below. This analysis assumes that all other variables remain constant. This analysis is performed on the same basis for 2013.

Sensitivity analysis of the risk that the entity is exposed to for 2014 Risk Change in Effect on Effect on variable risk variable ProÀt and Loss Equity % $ $ Interest rate risk Increase 1.0% 72,822 72,822 Interest rate risk Decrease -1.0% (72,822) (72,822) Sensitivity analysis of the risk that the entity is exposed to for 2013 Risk Change in Effect on Effect on variable risk variable ProÀt and Loss Equity % $ $ Interest rate risk Increase 1.0% 56,009 56,009 Interest rate risk Decrease -1.0% (56,009) (56,009)

SDA NEWS SPRING 2014 – PAGE 43

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