SDA News 2016 Spring

SDANEWS OFFICIAL MAGAZINE OF THE SHOP, DISTRIBUTIVE AND ALLIED EMPLOYEES’ ASSOCIATION, NEW SOUTH WALES BRANCH I SPRING 2016 I RRP $8.00

SHOP, DISTRIBUTIVE AND ALLIED EMPLOYEES’ ASSOCIATION, NSW BRANCH

WWW.SDANSW.ORG.AUPHONE131SDA STREET ADDRESS: Level 3, 8 Quay Street, Sydney NSW 2000 POSTAL ADDRESS: PO Box K230, Haymarket NSW 1240 E-MAIL: secretary@sdansw.asn.au

SDA NEWS EDITOR:

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: Cheryl Cassell

ORGANISERS LEAD ORGANISER: Angela Ghanime

METROPOLITAN: Lena Adam, Anthony Maiatico, Anthony Attard, Caroline Israel, Chris Stefanovski, Mina Papadopoulos, Tina Callaghan, Joel Tynan, Karl San Pedro, Hugh McLaurin, Anthony Day, Joanne Jammal, Whitney Rizk, Alex del Rosario, Jessica Chidiac, Rayanne Li, Alison Varga, Susannah Hoffman, Josip Blazevic, Nathan Egan, Thea Noone, Joe Rebbechi, Jessica Robinson, Paul Mitchell.

REGIONAL: Lower South Coast, Southern Highlands & Canberra: Athol Williams and Narelle Atkins  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, Alex Velickovic,

SPECIALISTS INDUSTRIAL OFFICERS: Phil Walker, Bernard Govind, Mitchell Worsley, Aliscia Di Mauro, Rose Ghabache, Monica Rose WORKERS’ COMPENSATION AND OHS OFFICERS: Michael Babic, Jane Lui SENIOR OPERATIONS OFFICER: Felicity Smithson COMMUNICATIONS OFFICERS: Michael Walker, Tim Leong INFORMATION OFFICERS: Corrine Boyle, David Uzzell, Georgina Psillis, Renee Jaajaa, Nadia Mirabella EDUCATION OFFICER: Philippe LeCompte

Let’s bring back respect for our workers In August, we conducted our third

companies and ultimately by other

It is disappointing that, over a long period

annual Safety Demands Action

customers either.

of time, papers including the Sydney

campaign. Delegates and Organisers

This may take time, but we have to

Morning Herald, have consistently argued

across NSW and the ACT were in

restore respect to the shop floor.

for increases to trading hours and

A lack of respect for retail workers

decreases to penalty rates. Their views are

and their families is at the heart of two

inaccurate and I do not agree with them.

more big issues that we face: attacks

Let’s restore respect for retail workers.

workplaces having safety chats and raising members awareness about safety. Thank you to everyone who was involved.

This edition of SDA News continues our focus on safety with articles on customer abuse (page 9), medical appointments (page 16), reporting

on penalty rates (page 4) and trading hours on special days (page 6).

When employers and politicians attack penalty rates, they are really saying that your family time is not as

If you experience customer abuse, report it. If you want to protect penalty rates join the campaign. If you want to protect your family time, say NO to work on Boxing Day.

valuable as other people’s. They are

A Workplace Union

not respecting the sacrifice you make,

Thank you to all SDA workplace Delegates

The announcement of Masters’ closure

working unsociable hours, missing time

for the great work you do to make us an

(page 17) is also a great concern, and

with family and friends.

active workplace Union.

safety risks (page 18) and workload stress (page 19).

we will be working with members to

Moves by employers and the NSW

Don’t miss some of the great results

secure ongoing employment for them in

Government to keep extending trading

other Woolworths businesses.

Delegates are achieving on page 8.

hours onto days like Boxing Day also

Respect — You Deserve It

shows a lack of respect for retail

Customer abuse has emerged as a key

workers’ right to some precious time

safety concern of members.

with family and friends on these

Abuse is not part of the job — it is a

special days.

workplace hazard and a health &

The mantra in the media — that if

safety risk.

shoppers want to shop, then shops

The customer is not always right.

must open — is wrong.

Whether it’s in your workplace dealing with thousands of individual issues, Safety Demands Action, the penalty rates case, helping injured workers, securing pay rises, the Take The Time campaign, arguing for fairer superannuation for low paid workers, or trying to secure ongoing work for Masters members, the SDA is

No matter how frustrated a customer

Shops like Lovisa seeking to trade on

may be, they never have a right to

Christmas Day is wrong!

abuse a retail or fast food worker.

The customer is not always right. Shop

To stop customers abusing shop

assistants serve customers, but you are

assistants, we have to make it

not their servants.

unacceptable behaviour that won’t be

Shop assistants deserve time on special

tolerated by you, your managers, your

days with family and friends too.

getting on with the job.

Bernie Smith, Branch Secretary

SDA NEWS I SPRING 2016 I PAGE 3

Bargaining Update

by Bernie Smith Branch Secretary

Securing fair pay rises is a top priority for SDA members. This year, the SDA has secured pay rises for members that are well above inflation.

We have secured fair pay rises even though negotiations for new enterprise agreements have been delayed, and the Coles Agreement has to be renegotiated.

Our Agreement negotiations have stalled as companies wait to see if the Fair Work Commission will cut penalty rates in the retail, hospitality and fast food industries before they will agree to final conditions and pay rises in new Agreements.

At this stage, a decision from FWC is not expected until late September or October.

The SDA has called on companies to return to the bargaining table to negotiate and finalise new Agreements with fair pay rises and conditions.

With the support of our members, I am confident we will negotiate new Agreements that keep Australian retail workers among the best paid in the world.

Penalty Rate Case Update Employers are attacking penalty rates, asking the Fair Work Commission to cut Sunday and public holiday penalty rates.

The SDA is opposing any cuts to penalty rates.

    

The outcome of the penalty rates case will have an impact on all members: directly if you work on the Award; and indirectly if you work under an enterprise agreement that is measured against the Award.

At this stage a decision is not expected until late September or October.

Getting On With the Job It is important as we push to negotiate new Agreements that we protect, and if possible increase, penalty rates in all new Agreements.

While bargaining may be stalled, the SDA is getting on with the job of looking after members.

The SDA has run a strong case to protect penalty rates in the Fair Work Commission.

The SDA is currently: 

Securing fair pay rises;

Thank you to all of the SDA members who have been involved in the case and the campaign.



Helping members with thousands of individual work problems;



Assisting injured workers;

Penalty Rates Facts 

So far, the cost of running the case to defend penalty rates has been over $1.5m.

Save our weekend.

Penalty rates are fair pay for working unsociable hours.

The SDA won increased penalty rates in the Retail Award in 2010.

The SDA protected penalty rates from repeated employer attacks over the last few years.

The SDA is again the only group running a case to protect penalty rates in the Retail Award in 2016.

So far, the case has cost over $1.5m.

Your membership support matters.

How can you help Protect Penalty Rates?    

Sign up to the SDA’s protectpenaltyrates.org.au campaign website.

Ask your family and friends to sign up too – the more supporters we have, the louder our voice will be.

Like the Protect Penalty Rates Facebook page at www.facebook.com/protectpenaltyrates/ Stay tuned to the campaign and take part in the latest actions. Together, we can protect our penalty rates.

Join the campaign at protectpenaltyrates.org.au

PAGE 4 I SPRING 2016 I SDA NEWS

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Running an enormous case to protect penalty rates;

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Keeping public holidays as special shared family time through the Take The Time trading hours campaign;

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Raising safety with the Safety Demands Action activities in August;

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Winning public holidays for weekend workers;

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Increasing pay for young adults in the 100% Pay @ 18+ campaign;

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Helping 7-Eleven workers lodge $4.4m of pay claims.

Membership Matters The SDA has secured fair pay rises for members that are well above inflation even though agreement negotiations have stalled.

Agreement negotiations have stalled, as companies wait to see if the Fair Work Commission will cut penalty rates that the SDA fought hard to win in the 2010 Award.

The SDA is opposing any cuts to penalty rates.

The SDA has run a strong case to protect penalty rates in the Fair Work Commission.

The SDA has called on companies to return to the bargaining table to negotiate and finalise new Agreements with fair pay rises and conditions.

The SDA is getting on with the job and, with the support of our members, I am confident we will negotiate new Agreements that keep Australian retail workers among the best paid in the world.

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SDA NEWS I SPRING 2016 I PAGE 5

Take the T The New South Wales Government tried to sneak through a review of public holidays while the recent

by Robert Tonkli, Federal election Assistant Secretary was on.

Employer groups put in submissions to the review calling for all weekend public holidays to be cancelled.

This would include Christmas Day this year, as well as New Year’s Day (both of which fall on Sundays). Of course, they would cancel Easter Sunday too!

The SDA put in a strong submission supporting the current law — that means the actual day of significance, like Christmas Day this year, is always a public holiday, even if it falls on a weekend. The actual day, Sunday 25 December, is when friends, family and community get together and it must remain a public holiday.

Today many people are working in seven-day-a-week industries like retail and fast food. They need public holidays too!

The Government should leave the public holidays laws alone.

Employers want to cancel public holidays — but stay open all hours At the same time as employers are calling for weekend public holidays to be cut, they are also calling for shops to be open every day.

PAGE 6 I SPRING 2016 I SDA NEWS

e Time: it’s your right Last year, the NSW Liberal Government passed laws to trial Boxing Day trading across all of NSW for two years.

That means all shops will be permitted to open on Boxing Day again this year. This is despite evidence that NSW had no increased sales for December last year with Boxing Day trading, but retail workers lost family time.

They are wrong. Days like Christmas Day and Boxing Day are still special to retail workers and their families.

Shops like Lovisa might try to open every day, but all retail and fast food workers have a right to say NO to working on these special days.

The law will be reviewed next year to decide if shops should close again on Boxing Day.

When the Government took Boxing Day away, we said retailers would not stop till they were open every day of the year.

Don’t wait — do it now!

Unfortunately, we were right.

Like Lovisa, they will be after Christmas

Lovisa has made an application to be allowed to trade on Christmas Day this year.

We know retailers won’t be satisfied with just Boxing Day trading.

Day, Good Friday, Easter Sunday and even ANZAC Day! You can help stop them by saying NO

This is a disgrace.

to work on Boxing Day this year. You, as

Lovisa stated that “Christmas Day is just like any other day and therefore trading should resume as normal”!

an SDA member, will have the complete support of your Union if you exercise your right not to work this Boxing Day.

Boxing Day — just say no!

All shops can open on Boxing Day this year, but you have an absolute right to refuse to work on Boxing Day. It is against the law for a manager or employer to try and pressure you into working on Boxing Day.

Your Rights: What You Can Do If you don’t want to work on Boxing Day, just say no!

Write a letter or a note to your manager saying that you don’t want to work on Boxing Day. Keep a copy for your record and hand the note to your manager.

Your manager can’t refuse to accept it. They must accept and respect your decision — it’s the law.

SDA NEWS I SPRING 2016 I PAGE 7

your union is...

n o i n u e c la p k r a wo

Safety was a particular noticed times and days

s d the front-end manager wa Alison from Rockdale notice ach ers on their tea break in bre sending register team memb time limits. of their Agreement’s work the correct times that team Alison told the manager of members can take a break. up now that their shift is broken Union members are happy . with better spaced breaks Thanks Alison!

a member who had been Janelle from Seven Hills helped given a 29-hour contract. work in the second week, When the member turned up for they were no longer needed. the department manager said rs that week.

The member was short 14 hou er got paid the 14 hours.

Janelle got involved so the memb Terrific result, Janelle!

PAGE 8 I SPRING 2016 I SDA NEWS

focus in August, and Bil

l from Chullora

where his store had no first aid attendant.

Bill wrote it down and we nt to his store manage r with the problem.

Bill and another team me mber are now trained first aid attendants in their store.

Thanks for being alert, Bill!!

membersh services and benefits Mariam from Castle Hill sh owed why casuals need to be Union members too.

A long-term casual was going overseas on holida y. Luckily, the member told Mariam.

The member had 10 yea rs’ service but didn’t know that casuals get long service leave.

Mariam spoke to manage ment and the delighted member was able to take paid leave for he r holiday.

Awesome stuff, Mariam!

Abuse is not part of the job!

SDA Merrylands, promoted the Delegate Farishta, from mber me unger members after a accident insurance to yo ssing the road. was hit by a car while cro for their $600 one-off payment The member received a injuries. n young hta has signed up seve In just a short time, Faris . members into the Union ! hta Fantastic effort, Faris

ership ces d fits

This is often due to insufficient staff working to serve customers promptly.

The saddest thing was that everyone told their story as though it was just part of the job.

Abuse is not part of the job; it is a workplace hazard and a health and safety risk.

We have to start treating abuse as a health and safety incident.

Some companies acknowledge that customer abuse is a growing problem, but some do not.

We need to make all companies aware of this problem by reporting all incidents of customer abuse as a health and safety incident.

Abuse is not part of the job!

Reporting abuse by customers

by Bernie Smith, Branch Secretary

In August, the SDA conducted our annual Safety Demands Action activities.

Thank you to all members, Delegates and Organisers who participated.

The survey again identified a growing problem of retail workers being abused by customers.

No matter how frustrated a customer may be, they never have a right to abuse a retail worker.

No matter how long the queue is at a checkout, or how hard it is to find a staff member on the floor to help, a customer has no right to abuse a shop assistant.

They can ask to speak to a manager to make a complaint, but must not be abusive. Everyone deserves respect.

Respect is part of the job – abuse is not.

Kim from Liverpool is currently helping two members with a backpay issue.

Both have been regularly working as shift supervisors since March, but were unaware that they should be paid a higher rate. We’re looking forward to hearing the final amount recovered.

Yet another reason why employees need to be in the Union.

Great work, Kim!

Recently, I was in the lunch room of a major supermarket talking to members.

A member came into the lunch room obviously upset. She had been verbally abused by three separate customers already that morning.

As everyone was talking around the lunch room table trying to cheer her up, they shared their own stories of customer abuse.

Reporting customer abuse as a health and safety incident means it must be recorded and considered by your workplace WHS committee to see what can be done to reduce the risk.

By reporting all incidents of customer abuse, they will also be registered in the data all companies collect on health and safety risks.

When this shows up as a growing risk, your company as a whole will be obliged to consider ways to reduce the risk.

To stop customers abusing shop assistants we have to make it unacceptable behaviour that won’t be tolerated by your managers, your companies and ultimately by other customers either.

Remember – abuse is not part of the job. We can do something about it.

The first step is for us all to start reporting it.

SDA NEWS I SPRING 2016 I PAGE 9

In modelling, minimum standards apply, too!

13 2 SDA Industrial Officer Monica Rose (pictured below, left) spoke at the Australian Model Conference in July. This is a part of her talk. 

There are a few key points I think are important to know about the Models Award.

The first is that there are minimum rates of pay to which you are entitled for all work you perform.

I know it is very common practice in the industry to work some jobs without pay, usually as time for print, or sometimes you are paid with product.

Under the Award, there are a number of things you are entitled to get in writing before commencing a job.

I think this is possibly the most useful thing you can do to protect yourself.

The Union has developed an online tool for our members to access — a checklist you can access on your phone which tells you what to establish in writing and provides boxes for you to insert the agreed pay rate and so on. You can then email this to yourself so that you have a saved copy of what was agreed.

There are other conditions in the Award such as:



However, you should be paid for all work just as in any other job — your time and effort has value.

I strongly encourage you to establish this at the outset when you are offered work, so that you can ensure you receive the minimum rate of pay for your time.

The best way you can do this is to have the correct information available to you.

InformaƟon and advice

And this is where the second key role of our Union comes in.

We can assist you by providing information and advice to help deal with workplace issues.

We have an information call centre that you can ring for advice to help empower you, as well as officers such as myself who can act on your behalf if you have been unable to clear up any questions or concerns.

Many issues can be avoided just by having the right information and having clarity from the beginning.

PAGE 10 I SPRING 2016 I SDA NEWS

   

Breaks — you are entitled, as a minimum, to a 15-minute rest break when you are working four hours or more, and if it is more than five hours work you are entitled to a 45-minute meal break.

Travel allowances.

Overtime.

Payment for a last-minute job cancellation.

Having a person of your choice with you if you are appearing in lingerie or foundation garments, nude or semi-nude.

The point of mentioning these things is to say that there are a number of provisions which are there for your benefit and you should make use of these.

PracƟcal help

And thirdly, the Union is here to help if you have sought advice and you have told the client your expectations but you are experiencing difficulty getting those entitlements.

We can speak with your client or employer on your behalf and try to assist in resolving the issues, and we often try to work with the employer to achieve the outcome.

For example, if you have worked a job and had agreed on a rate of pay (or even if you hadn’t) and then you are told after the job that it was time for print and you will receive nothing.

We can advise you what the rate should be, calculate what you would be owed and give advice on how you could approach talking to the employer to try and resolve the matter.

If that is unsuccessful, we can speak to them on your behalf to get it resolved.

While it may be daunting, it is important to speak up when you are not getting what you should or people will continue to ask you to work for no pay or treat you poorly! 

Welcome to all the new members who joined the SDA at this conference!

InternaƟonal Retailers on the Move Retail and logistics are dynamic industries. New brands emerge as others disappear.

You may have noticed an increasing number

by Felicity Smithson, Senior Operations of overseas retailers Officer coming to Australia in recent years.

the SDA that, while there is a lot they

with friends and family.

like about working at Aldi, they have

We are raising these issues with Aldi and we are keen to work together to make working there even better.

concerns about rosters — whether it is working two shifts in one day, not having a 10-hour break between shifts or having days off in a row.

All of these things have an impact on Aldi members’ ability to spend quality time

We welcome all our new members working for international retailers.

No matter where you work in retail, the SDA is your Union.

If you follow fashion, you would know that H&M, Zara and Uniqlo have all opened in Australia. We welcome new SDA members working in these brands.

We also have hundreds of members working for other international retail brands, like IKEA and Costco.

Of course, many fast food brands where our members work have USA parent companies.

But SDA members also work in other retail brands that you may not realise are international retailers, including David Jones, Country Road, Freedom and Best & Less.

It is important to engage with all of these companies to ensure Australian retail workers remain amongst the best paid retail workers in the world.

Aldi activity Aldi is another well-known international retailer.

The SDA has been active in Aldi. Members will have seen SDA Organisers visiting stores recently.

We are also engaging with your company about your EBA. Aldi members have told

THE SDA IS YOUR FRIEND IN ALDI The SDA is the union for retail workers with 230,000 members nationwide.

We negotiate wage increases and other improvements in conditions for our members in stores like Woolworths, Coles and IGA supermarkets.

The SDA also provides members with many discounted services and benefits – all for less than the cost of a fast food meal each week!

It pays to belong the SDA. And remember, Union fees are 100% tax deductible.

Over 220,000 Australian retail workers can’t be wrong.

SDA member benefits tick all the boxes: Negotiating your pay and conditions Free help with issues at work Free advice on workplace safety Discount movie tickets Discount driving lessons Discount insurance and car hire Free textbook vouchers Discount health And many more!

Get peace of mind at work and access our great benefits.

Join the SDA now by visiting www.sdansw.org.au Authorised by Bernie Smith, Branch Secretary-Treasurer, Shop Distributive & Allied Employees’ Association, NSW Branch, Level 3, 8 Quay Street, Sydney 2000.

SDA NEWS I SPRING 2016 I PAGE 11

RACHEL’S STORY

Being told that my breast cancer had spread was

SUPPORTING LIFE The National Breast Cancer Foundation funds

the worst news imaginable.

research into hereditary, or familial, breast cancer,

At the age of 39, I felt like I had everything to live

which can be identified by the BRCA1 and BRCA2

for. I loved life, my children, friends and family.

genes, to help prevent breast cancer developing in

I certainly didn’t want the children to lose their

high risk women, such as Rachel.

mother, like I had.

NBCF-funded Professor Georgia Chenevix-Trench is

Almost two years ago, I sat opposite my specialist while the most devastating words came out of

by Corrine Boyle, Information Officer

his mouth as he revealed I had secondary breast

with treatment.

As a single mother of two beautiful children, Ava, 10, and Alexander, 7, it was unbearable. In that surreal moment, I remember thinking about the

prevent women having to undergo the extreme surgical option of a double mastectomy.

cancer. He told me I would have just weeks to live without treatment, and a maximum of one year

investigating risk-reduction treatments that could help

Professor Chenevix-Trench says the current options for risk-reduction treatments are imperfect because they only reduce the risk of breast cancer by about 50 per cent, and have side effects.

She believes a new medication could be useful for the prevention and treatment of breast cancer

contents of my fridge at home. There were things

The aim of her ongoing research is to test the effect of this drug on breast

in there with a longer expiry date than me!

cancer cells grown in the laboratory to determine if they can justify carrying out

Three years prior to this, I had been diagnosed

a clinical trial.

with primary breast cancer and discovered I was

SDA CONTINUES ITS SUPPORT

carrying the BRCA2 gene, a hereditary genetic

Over the past 18 years, the SDA has raised $331,362 for life-changing research

fault that has a very high risk of breast cancer.

into better diagnosis, treatment and prevention of breast cancer.

Despite the gruelling treatment, including a

This year, the SDA continues our long-term support of the National Breast

double mastectomy, I wasn’t worried about

Cancer Foundation so they can fund vital research like Professor Chenevix-

myself, but I was afraid of what this could mean

Trench’s research

for my siblings and my children.

I had already lost my own mother to breast cancer and as I shared my news with relatives, I began to learn of all the other women in my family who had experienced breast cancer.

An aunt, my great grandmother, a great aunt — instances of the disease went back four generations. Unfortunately, my gorgeous sister Jane has also since been diagnosed with breast cancer.

PAGE 12 I SPRING 2016 I SDA NEWS

FE-SAVING CANCER RESEARCH OUR PINK RIBBON BREAKFAST!

The SDA will be holding its first Pink Ribbon Charity Grand Final Breakfast on Friday 30 September 2016.

This event replaces the Pink Ribbon Golf Day that WHY NOT HOST YOUR OWN PINK RIBBON BREAKFAST?

has been held over the past ten years.

This October, thousands of Australians will host Pink Ribbon Breakfasts. Since the first Pink Ribbon

Hosting a Pink Ribbon Breakfast is a fun way to bring together friends, family

Breakfast was held in 1998, the annual event has

and colleagues and raise money at the same time.

raised more than $20 million for life-changing

For more information or to register, visit pinkribbonbreakfast.gofundraise.com.au.

breast cancer research, funded by NBCF.

DELEGATES WITH HEART!

by Vera Cavanagh, Organiser Thanks to Delegates and members, we gathered 160 coats and jackets for needy men, women and children. Around one third went to to the Homeless Hub in Wollongong, and another third went to the Nowra homeless menâ&#x20AC;&#x2122;s shelter. The remainder went to Wesley Church soup kitchen for the families that are doing it tough and attend to get a feed.

A big thank you goes to SDA Delegate Nathan Benson from Coles Nowra for assisting me in making contact with David from the Nowra shelter.

We delivered the coats and had a tour of one of the houses which accommodates homeless indigenous young men who are in need of housing, financial assistance and help with job seeking, etc. Some have been recently released from prison, while others are just in a bind.

Thank you for the support with facilities, printing and time! I know everyone is busy and it's very much appreciated.

I will organise this again next year, though hopefully a bit earlier, before Winter sets in!

SDA NEWS I SPRING 2016 I PAGE 13

Facebook traps for the unwary Facebook is a great way to stay in touch, but it also remains a potential source of work-related problems.

WHAT NOT TO DO ON SOCIAL MEDIA 

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

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Don’t complain about your job/ manager/co-worker Don’t post while you are supposed to be working Don’t make fun of or denigrate your workplace Don’t reveal company information Don’t make threats, spread rumours or tell lies Don’t tag someone in an inappropriate picture Don’t post comments that are untrue, provocative, slanderous, etc Don’t make posts of a sexual, racist or derogatory nature

HOW TO RESPOND TO INAPPROPRIATE COMMENTS 

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Don’t escalate the situation on social media Do take a screenshot or print out a copy of what has been posted Do record the time and date of the incident Do block the offender Do make sure your settings are set to private Do report the incident Do raise a grievance Do report the issue to the police, if necessary

PAGE 14 I SPRING 2016 I SDA NEWS

by Bridget Sheridan, Most Australians Organiser have a Facebook account and many spend an hour a day or more on the site.

Personal Privacy Settings Facebook’s personal privacy settings are no guarantee that what you say remains private.

The average Facebook user has 200 friends.

Are you absolutely sure that you can rely on every single one of your Facebook friends to keep something to themselves (especially if it is something juicy)?

Facebook Groups This year, the social media site has been heavily promoting its Groups feature as a way for people to connect. This is great, but can potentially be a problem when someone sets up a group of co-workers.

People can be lured into a false sense of security by Groups that are described as “Closed” or “Secret”, but you can’t be sure that everyone in a Group, now or in the future, is someone you can trust to keep what you’ve said to themselves.

Administrators can change the status of Groups without you realising it. Next thing you know, your post is showing in your timeline for all your friends to see.

But the real issue is the same as your personal privacy settings:

Pages In one recent case in the Fair Work Commission, simply ‘liking’ an offensive Facebook post was one factor that justified an employee’s dismissal.

Members should therefore be careful of pages that are set up to criticise employers. It is best to steer well clear of these.

Nothing expressed on Facebook can be considered ‘off the record’.

Keep it in the real world Remember, if you are unhappy with something your supervisor or your employer is doing, you don’t need to take to social media to express your views.

You work in a unionised workplace and have access to the Rolls Royce solution: you can raise it through your company grievance procedure and, in most cases, can call on the support of the Union to support you through this process.

That is the constructive way to deal with problems over company actions or policies, and you stand a much better chance of fixing the problem.

All members are invited to Like the SDA’s Facebook Page (facebook.com/SDANSW) and to comment on posts. Discussion is welcome but comments that may be defamatory of individuals or companies are not, for the reasons spelt out in this article.

Super and Parental Leave

by Gerard Dwyer National Secretary

The SDA has called for superannuation to be fair and to legislate for the payment of superannuation on both paid and unpaid parental leave.

This was Recommendation No. 1 by the SDA in a submission to the Senate Standing Committee on Economics inquiry into the “Economic Security for Women in Retirement”.

The SDA urges the new Australian Parliament to move quickly to implement reforms in this area.

Australia is lagging behind on this issue. Countries like the UK have paid superannuation on parental leave in many workplaces.

If you provide care for your family for prolonged periods, you should have your valuable contribution recognised – it should not represent a penalty on your retirement income.

REST update REST is one of Australia’s largest super funds by membership, with over $39 billion in funds under management as at 30 June 2016, and nearly two million members.

The 12 months to 30 June 2016 proved quite challenging for the superannuation industry.

For the financial year ended 30 June 2016, REST returned 1.82% for members in the core strategy.

This is on the back of a 9.47% return last year (to June 2015).

No.1 in the long run

It is always important to remember that one year’s performance does not create or destroy a healthy retirement balance — superannuation is a long-term investment and must be measured as such.

As the table below shows, REST continues to be a first-class performer over the long term.

Eight of the top 10 funds are Industry Funds. Why does the Federal Government want to attack the Industry Fund (trustee) model?

The model works, and continues to provide superior outcomes for working Australians.

Politicians should acknowledge this reality and let Industry Funds get on with delivering for their members.

REST’s Core Strategy has been ranked No.1 for longterm performance more times than all other super funds put together.

rest.com.au 1300 300 778

Top 10 Performing Growth Funds for 10 years to 30 June 2016 (%) Source: Chant West, 19 July 2016 Rank Super fund and 10 years investment option (% each year) 6.6% 1 REST Core 6.5% 2 QSuper Balanced 6.4% 3 BUSSQ Balanced Growth 6.4% 3 CareSuper Balanced 6.3% 4 Catholic Super Balanced (MySuper) 6.3% 4 UniSuper Balanced 6.3% 4 Commonwealth Bank Group Super Balanced 6.2% 5 Cbus Growth (Cbus Super) 6.1% 6 HOSTPLUS Balanced 6.1% 6 AustralianSuper Balanced

Surveyed monthly with similar options over rolling 10 year periods.

SuperRatings doesn’t issue, sell, guarantee or underwrite this product. Go to superratings.com.au for ratings criteria. Ratings are only one factor to consider. Past performance may not be repeated.

Product issued by REST. Contact us for a PDS to consider before deciding.

SDA NEWS I SPRING 2016 I PAGE 15

ALL INJURED EMPLOYEES ARE ENTITLED TO WORKERS COMPENSATION AND REHABILITATION

SCHEDULING WORKERS COMPENSATION MEDICAL APPOINTMENTS

by Michael Babic, Workers’ Compensation Officer

Being on workers

Workers compensation appointments are often

compensation can give

with specialists, and, as we all know, it can be

injured workers a strong

difficult to get in to see some specialists.

sense of displacement.

The times at which a worker will attend for

One of many

treatment are negotiable and should take into

inconveniences is

account the worker’s particular circumstances,

having to attend medical

for example, care of children or other important

appointments more

personal commitments.

frequently than you have

Treatment times should be included in the return-

ever had to in your life.

to-work plan, so there should be discussion and

Some employers (and even co-workers) don’t understand or care about the hardship that injured

negotiation before the return-to-work plan is drafted.

workers encounter during the rehabilitation

Here is a simple approach that should help:

process.

 Make the appointment in your own time

Many injured workers tell the Union that they have met with unreasonable opposition from managers about their workers compensation medical appointments.

The cost of the consultation is, of course, paid by the insurer or employer — that is usually not an issue — but the timing and frequency of these

if you can;

 If that’s not possible, then make the appointment so that it falls at the beginning or the end of your shift;

 If that’s not possible, then make the appointment at whatever time is available.

appointments has, in some cases, been a source of

Some managers are under pressure to keep

conflict.

workers compensation costs down, but most

The short answer is that the scheduling of these appointments should be fair and reasonable to both the employee and the employer.

Generally speaking, where possible, medical appointments should be scheduled for out of

remember there is a real person and family behind every workers compensation case.

The best way to keep these costs down is for employers to take health and safety seriously and to provide support and understanding to injured workers.

work time.

But it is not fair for management to insist that appointments can only be taken during breaks or outside of work time without negotiating and discussing treatment times with the worker.

CONTACT THE SDA ON 131 SDA (131 732) AT ANY STAGE IF YOU NEED ANY ASSISTANCE WITH RESPECT TO YOUR WORKERS COMPENSATION CLAIM.

Masters closure: disappoinĆ&#x;ng news We will be working hard to ensure that Masters members are offered alternative employment to ease the impact this will have on them and their families.

We were pleased when the company announced the same priority of securing ongoing employment for Masters staff.

Where re-deployment is not possible Woolworths has guaranteed that all legal entitlements, including redundancy, will be paid and we will hold them to that.

The SDA welcomes the announcement that Home Timber and Hardware (HTH) has been sold as a going concern to Metcash (Mitre 10) allowing the majority of staff to keep their jobs.

The SDA is deeply disappointed with the announcement that Masters stores will cease trading by mid-December across the country.

This was a devastating announcement for the 6,000 staff. The next few weeks, as stores clear stock, will be a very difficult period for staff.

The SDA will be working closely with members and Woolworths to secure ongoing employment wherever possible.

As soon as the announcement was made, the SDA immediately commenced discussions with Masters and Woolworths to seek the re-deployment of existing staff to other Woolworths businesses.

This will be a great relief to staff inside HTH. Unfortunately, the Gungahlin store will close, but once again the SDA has commenced discussions with HTH and will be working closely with staff and the company to try and secure ongoing employment elsewhere where possible.

Any Masters members with questions should contact the SDA on 131 732.

THE SDA AND ITP THE INCOME TAX PROFESSIONALS CAN SAVE YOU MONEY AND TIME ON THE PREPARATION OF YOUR TAX RETURN.

= You and your family are entitled to a 10% discount on the standard price of the preparation of a tax return when it is completed by an ITP tax accountant at a participating branch, or through ITP online. Members and their families are also entitled to a special rebate on business tax returns when they become a new ITP business client. When you lodge your business or company return, they will subtract 20% from the amount you paid your accountant last year.

As with Union fees, tax return preparation fees are 100% tax deductible.

Choose to have your return completed in-person or online: 1. In Person: go to www.itp.com.au or phone 1300 387 487 to find your nearest ITP location.

2. Online: email your name, contact number and postcode to sda@itp.com.au and weâ&#x20AC;&#x2122;ll be in touch with what we need to complete your return online.

Please note you must present your current SDA membership card to receive the discount.

SDA NEWS I SPRING 2016 I PAGE 17

Report risks, large or small Your employer is obliged to ensure that your workplace is safe (as far as reasonably practicable), so if

by Jane Lui you experience or OHS Officer are aware of any problems which create risks to your health and safety at work, you need to report them.

stock; heavy stock being stocked too high; violent or abusive customers; poor housekeeping posing a trip hazard; or a colleague being bullied.

You might feel intimidated or awkward,

Or perhaps you feel that your training for a particular task was inadequate, or you need more help or time to do your job safely.

Still a problem?

Speak up!

Speak up before it’s too late.

SDA on 131 732 immediately.

Raising a workplace safety concern with your boss can sometimes seem like a daunting prospect. But if we let a dangerous incident go unresolved, it might potentially injure you or your workmates.

If you need help, support or simply guidance at any time during this process, just speak to your Union Delegate, or alternatively contact the SDA Office on 131 SDA (131 732).

Remember, it’s against the law to be fired for

It could be something like a machine missing protective guards; poorly maintained, insufficient or broken equipment such as trolleys, pallet jacks, forklifts or other equipment used to move

Reporting an issue

Whatever the issue, it’s important to remember that everyone has a right to work in a safe workplace.

Report safety concerns to a supervisor, a health and safety committee member or your health and safety representative.

but the few minutes it takes to talk – and hopefully find a solution – is nothing compared to the impact of an injury.

If you have reported an issue but it hasn't been fixed, follow up with your site manager to clarify where things are up to.

If the issue remains unresolved, or you are not happy with the response, report it to the

raising a work health and safety issue.

Your boss may end up thanking you, as a safer and healthier workplace is also more profitable, with reduced absenteeism, improved productivity and fewer injuries.

We all deserve to go home safe to loved ones every day.

SEE IT. REPORT IT. SAFETY FIRST!

seven tips for talking to your boss about safety  Before anything goes wrong, ask how a health and safety issue should be raised. Your boss may have a hazard reporting procedure in place.

     

Be positive and speak out of concern for you and your co-workers’ safety.

Be polite, respectful and avoid confrontational words.

Try not to put your boss on the spot.

Don't blame the problem on your co-workers.

Keep your body language in check – for example, don't cross your arms or point your finger.

If possible, suggest a potential solution for the problem.

Get more tips and advice at safework.nsw.gov.au or call them on 13 10 50.

Scared to report because you think your boss might retaliate?

If you are scared, call us and talk to us more about ways we can help and support you with reporting safety issues.

Remember, it is unlawful to be discriminated against for raising health and safety concerns.

PAGE 18 I SPRING 2016 I SDA NEWS

Not a maƩer of ‘no worries’!

Work-related stress is a growing issue across the world and in Australia. Of over 10,000 workers we have spoken to in our last two national safety campaigns, more than one in two workers reported workload stress as an issue impacting their work.

If the issue is not resolved, just like any

But don’t we all get stressed?

entitlements were developed to make your

Being challenged is important, and some levels of workplace stress can be healthy.

But when we experience too much pressure without the chance to recover, we experience stress.

workplace as safe and healthy as possible.

Workload stress can lead to burnout, anxiety, depression and symptoms like high blood pressure, sleeplessness, and stomach problems. It can also lead to neck and back pain, increasing general emotional sensitivity, cause headaches and affect motivation.

other OHS issue, you should contact the SDA. You can speak to us confidentially.

To help avoid workplace stress...

There are some work guidelines that should never be broken. Many work



and tea breaks; 

You should not stay back and work past rostered times unless it has been mutually agreed that you are paid for working these extra hours;



You should not cut corners on safety to try and complete tasks faster;



You should try the best you can to complete the workk allocated to you

Workload stress can lead to poor decision making, can affect concentration and memory, and can have a negative impact on work attendance.

There are many causes of workplace stress, but the best thing is to report the issue, just like any other safety issue, to your safety committee or your manager.

You should take all your meal breaks

but... if work cannot ot be completed in

Baker Burnout A baker was working early morning by himself. Due to the nature and amount of production and the workflow required to have products “on show” by certain times, it meant he was stretched physically to complete the work. He would not take his breaks because he had to get the job done.

It got to the point where he felt so upset, he had a nervous breakdown at work.

He had been raising the issue but nothing was done. He then contacted the SDA. The SDA spoke to the company and some changes were made to rosters so bakers work side by side. This improved productivity and allowed breaks to be taken.

It may not be perfect, but it has improved things. The SDA will continue to seek improvements if the problem is not sufficiently fixed.

Information courtesy of SafeWork NSW.

the time allocated, let your department manager or store manager know; and 

If you assist other departments by helping to serve customers ustomers on the checkout, it shouldd be included in the work you have completed mpleted for the day.

Our third “Safety Demands Action” campaign was conducted in August. The things we learnt from our conversations with you will help us respond to the issues which have an impact on your health and safety at work.

To find out more, contact us on 131 732.

SDA NEWS I SPRING 2016 I PAGE 19

union picnic day 2016 WELCOME SPRING WITH FUN AND FASHION! Melbourne Cup Day, Tuesday 1 November 2016 ers Hurry – ord close on !

17 October

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

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

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

This year Picnic Day for SDA members falls on the first Tuesday in November each year which, of course, is also Melbourne Cup Day. This year, SDA Picnic Day falls on Tuesday 1 November.

What’s on in your area?

As usual, we’re hosting events in Sydney and regional areas.

For information on functions in your region, or in Sydney,  see your Store Delegate,  phone the SDA Information Centre on 131 SDA (that’s 131 732), or  phone your regional SDA office (see the back of your current membership card for contact details).

Don’t go on maternity leave unƟl you read this!

The SDA and other unions have fought for many decades to achieve today’s parental leave entitlements.

Unpaid maternity leave (i.e. the right

by Georgina Psillis, Information Officer to return to your previous position) was won in the early 1980s.

Paid maternity leave started to be included in Enterprise Agreements about a decade ago (IKEA being one of the first companies to offer it) and was legislated as a nationwide entitlement in 2010 by the Rudd Labor Government.

Fortunately, the SDA has guides about both paid and unpaid maternity leave available for members who are expecting a child.

ED ER AT B D P M 3 U CE 01 E D 2

The rules around maternity leave can be complicated and change slightly between companies.

paid parental leave

Parental Leave

information for sda memb in

ers

Letting us know beforehand avoids any hassle.

We can help you with your questions SDA Parental Leave

1

Some of the most frequently asked questions about maternity leave include:

Just give us a call on 131 732 before



Am I eligible for paid parental leave?

going on maternity leave so we can:



When do I claim paid parental leave?





Should I claim parental leave or the baby bonus?

What benefits can the other parent claim?

You remain an SDA member while you are off work; you won’t be charged any fees.

If we don’t know you are on maternity leave, we may assume you’ve left the industry without telling us and you won’t show in our records as a current member when you call us to go back to work.



Send you a free copy of the SDA’s parental leave guides, and



Note in the member data base that you are on maternity leave.

From three months prior to your baby’s birth, you can enter our quarterly draw to win a $100 Big W or Target voucher — just call us on 131 SDA (131 732).

Delegates: If you know someone in your workplace who’ll be going on leave soon, tap them on the shoulder and ask if they have told the Union.

did you know...

Protecting the rights of mothers and pregnant women at work was one of the first three international labour conventions, made in 1919. The other two were about regulating working hours and reducing unemployment. The Maternity Protection Convention was updated in 2000 to establish a minimum standard of 14 weeks paid maternity leave, which was the basis of Australia’s 2010 law.

SDA NEWS I SPRING 2016 I PAGE 21

The Sydney Tower Eye

Madame Tussauds

Sydney Aquarium, Darling Harbour

SDA members and their families are entitled to a 20% 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 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 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 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

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

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

WILD LIFE Sydney

Australian National Maritime Museum

Currumbin Wildlife Sanctuary, Gold Coast

Featherdale Wildlife Park, Doonside

Manly SEA LIFE Sanctuary

SDA members and their families are entitled to a 20% 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 SDA members and their families are entitled to a 15% discount at these leading Gold Coast attractions:

Movieworld*

Seaworld*

Wet’n’Wild Dreamworld White Water Skypoint Water World* t (07) 5588 1111 World t (07) 5582 2700 t 133 FUN t 133 FUN (07) 5588 1111 t (133 386) (133 386) a dreamworld. a whitewaterworld. a skypoint. t 133 FUN myfun.com.au a myfun.com.au com.au com.au com.au a a myfun.com.au *Please note: you must pre-purchase your tickets through the SDA website to access the discounts on these attractions.

Illawarra Fly Treetop Adventures

ABC Driving School

SDA members and their families are entitled to a 20% discount on single adult and child entry tickets upon presentation of their current SDA membership card.

1300 362 881. www.illawarrafly.com

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.

t

a

Europcar Rentals

Coffs Coast Driving School

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.

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

We service Coffs Harbour and surrounding areas.

Phone 0411 985 185 for more information.

PAGE 22 l SPRING 2016 l SDA NEWS

COFFS COAST

DRIVING SCHOOL

Offer valid to 31 December 2016

TO PURCHASE YOUR TICKETS...

t n u o c Dis ie Tix v o M

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

and 4.00pm Monday to Saturday (except on public holidays).

HOYTS/EVENT E-TICKETS NOW AVAILABLE! SDA Movie Tickets for Hoyts and Event cinemas are now available as e-tickets, which you can print at home or redeem on a smartphone.

SDA NSW BRANCH + 131 SDA (131 732) + WWW.SDANSW.ORG.AU

www.engagingmembers.com.au

More for SDA NSW members.

In the past, members have enjoyed:

A bank built for you.

As a member of SDA NSW you’re able to access benefits and special offers via our Member Benefits Program.

discounts on home loans

cash back on credit cards

bonuses on term deposits

And the great news?

We refresh our member offers regularly.

What are you waiting for?

Take a look at what’s available to you right now at

mebank.com.au/benefitssda

Terms, conditions, fees and charges apply. Applications for credit are subject to approval. This is general information only and you should consider if these products are right for you.

Members Equity Bank Ltd ABN 56 070 887 679 Australian Credit Licence 229500. 215200/0816

SDA NEWS I SPRING 2016 I PAGE 23

SHOP, DISTRIBUTIVE & ALLIED EMPLOYEES’ ASSOCIATION ANNUAL FINANCIAL REPORT AS AT 30 JUNE 2016 OPERATING REPORT FOR THE YEAR ENDED 30 JUNE 2016

CERTIFICATE BY NATIONAL SECRETARY-TREASURER

The members of the National Executive present their report together with the financial report of Shop, Distributive & Allied Employees’ Association (‘the Association’) for the financial year ended 30 June 2016 and the auditor’s report thereon.

1. Membership Membership of the Association as at 30 June 2016 was 209,936 (2015: 209,706).

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 financial year are: Name Experience Mr Joseph de Bruyn National Executive Member since 1978 National President National Secretary-Treasurer 1978-2014 Elected National President 2014 Mr Michael Donovan National Executive Member since 1996 National Vice President Elected National Vice President 2014 Mr Gerard Dwyer National Executive Member since 2005 National Secretary-Treasurer National President 2008-2014 Elected National Secretary-Treasurer 2014 Mr Ian Blandthorn National Executive Member since 1986 National Assistant Secretary Elected National Assistant Secretary 1986 Mr Paul Griffin National Executive Member since 1990 Ms Barbara Nebart National Executive Member since 2004 Mr Peter Malinauskas (retired) National Executive Member 2008 - 2015 Ms Sonia Romeo National Executive Member since 2016 Mr Bernie Smith National Executive Member since 2014 Mr Chris Gazenbeek National Executive Member since 2014 Mr Peter O’Keeffe National Executive Member since 2014 3. Affiliations & Directorships The Association, through its Branches, is affiliated 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 affiliated with the Australian Council of Trade Unions (“ACTU”). The National Secretary-Treasurer is Senior Vice President of the ACTU. Three other representatives of the Association are also members of the ACTU Executive. Officials of the Association are active on a range of ACTU Committees, including finance, health and safety, women, vocational education and training, future international industrial legislation.

The Association is affiliated to Union Network International (“UNI”). Various officials of the Association hold elected positions within UNI. The National Secretary-Treasurer is Vice President of UNI-APRO. The National Assistant Secretary was chair of Service Skills Australia until April 2016.

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 range of employers. 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.

There were no significant changes in the Association during the financial year in the nature of its activities and financial affairs. At 30 June 2016, there were 12.5 effective full-time equivalent employees of the National Office of the Association (2015: 12.2).

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 2016, along with the nominated alternate Employee Directors.

Directors: Alternates: Mr Joseph de Bruyn Mr Gerard Dwyer Mr Ian Blandthorn Mr Michael Donovan Mr Geoff Williams Ms Aliscia Di Mauro Ms Sue-Anne Burnley Ms Julia Fox National Executive Member Mr Paul Griffin is a Director of the Tasplan Superannuation Fund. An official of the Association, Ms Sue-Anne Burnley, was also a Director of CARE Super Pty Ltd until 31 January 2016.

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 2015-2016, to the Workplace Gender Equality Agency, on the 31st May 2016. 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 specified 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 Melbourne this 18th day of August, 2016 Joseph de Bruyn, Gerard Dwyer, National President National Secretary-Treasurer

I, Gerard Dwyer, being the officer responsible for keeping the accounting records of the Association certify that as at 30 June 2016 the number of members of the Association was 209,936.

In my opinion: (i) the accompanying financial report set out on pages 8 to 41 presents a true and fair view of the financial position of the Association as at 30 June 2016; (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 financial benefits other than remuneration in respect of their full time employment with the Association were made to persons holding office 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 Melbourne this 18th day of August 2016 GERARD DWYER, 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 2016 in relation to the accompanying general purpose financial report that, in the opinion of the National Executive: (a) the financial statements and notes set out on pages 8 to 41 comply with the Australian Accounting Standards; (b) the financial statements and notes set out on pages 8 to 41 comply with the reporting guidelines of the General Manager of the Fair Work Commission;; (c) the financial statements and notes present a true and fair view of the financial performance, financial position and cash flows of the Association for the financial year ended 30 June 2016; (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 financial year ended 30 June 2016 and since the end of that year: (i) meetings of the executive were held in accordance with the rules of the Association; (ii) the financial affairs of the Association have been managed in accordance with the rules of the Association; (iii) the financial 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 financial 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 the General Manager of the Fair Work Commission duly made under section 272 of the RO Act that have not been furnished to the member or the General Manager; (vi) no orders for inspection of financial records have been made by the Fair Work Commission under section 273 of the RO Act. (f) no revenue has been derived fromm undertaking recovery of wages activity during the reporting period.

Dated at Melbourne this 18th day of August 2016 Joseph de Bruyn, Gerard Dwyer, National President National Secretary-Treasurer

STATEMENT OF FINANCIAL POSITION As at 30 June 2016 Note 2016 $ Assets Cash and cash equivalents 9 854,503 Receivables 10 636,486 Other financial assets 11 26,700,000 28,190,989 Total current assets Investment property 12 18,500,000 Property, plant and equipment 13 397,530 Employee benefits 16 356,591 19,254,121 Total non-current assets 47,445,110 TOTAL ASSETS Liabilities Trade and other payables 14 397,092 Employee benefits 16 762,165 1,159,257 Total current liabilities Employee benefits 16 12,732 12,732 Total non-current liabilities 1,171,989 TOTAL LIABILITIES 46,273,121 NET ASSETS Equity Retained earnings 46,273,121 TOTAL EQUITY 46,273,121 The notes on pages 12 to 41 are an integral part of these financial statements.

2015 $ 1,002,326 699,547 27,300,000 29,001,873 17,400,000 423,878 625,388 18,449,266 47,451,139 451,409 794,459 1,245,868 4,267 4,267 1,250,135 46,201,004 46,201,004 46,201,004

STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME For the year ended 30 June 2016 Income Capitation fees/affiliation fees Other income

Note

2016 $

2015 $

22

5,824,605 5,824,605 3,172,995 8,997,600

5,868,094 5,868,094 3,851,366 9,719,460

589,996 428,028 1,884,678 26,112 639,078 220,717 87,961 1,041,221 1,650,051 260,745 209,970 571,057 1,587,776 185,645 9,383,035 (385,435)

562,245 435,874 1,536,975 25,000 207,598 248,211 57,347 267,208 549,998 260,557 148,026 465,561 1,537,274 212,635 6,514,509 3,204,951

715,516 715,516 330,081

823,960 823,960 4,028,911

7

Expenditure 53 Queen St, Melbourne - direct operating expenses ACTU IR Campaign Levy Affiliation fees Audit fees Campaigning expenses Delegates expenses Depreciation Grants and donations Legal costs Meeting expenses Office & administration expenses Other expenses Personnel expenses Travel expenses Total Expenses Result from Operating Activities Finance income Interest income

22 22 8 13 15(a) 15(b)

20

11

Income tax expense 4(k) PROFIT FOR THE PERIOD Other comprehensive income Items that will never be reclassified to profit or loss Remeasurement of defined benefit asset (loss)/gain 16 (257,964) Income tax on other comprehensive income 4(k) Items that are or may be reclassified to profit or loss (257,964) Other comprehensive (loss)/income, net of tax TOTAL COMPREHENSIVE INCOME FOR THE PERIOD 72,117 The notes on pages 12 to 41 are an integral part of these financial statements.

195,913 195,913 4,224,824

STATEMENT OF CHANGES IN EQUITY Note For the year ended 30 June 2016 Balance at 1 July 2015 Total comprehensive income for the period Profit for the period Other comprehensive income Remeasurement of defined benefit asset, net of tax Total comprehensive income for the period Transactions with members of the Association, recognised directly in equity Balance at 30 June 2016 Balance at 1 July 2014 Total comprehensive income for the period Profit for the period

16

Retained earnings $ 46,201,004

Total equity $ 46,201,004

330,081

330,081

(257,964) 72,117

(257,964) 72,117

46,273,121 41,976,180

4,028,911

46,273,121 41,976,180

4,028,911 Table continued on next page

PAGE 24 I SPRING 2016 I SDA FINANCIAL REPORTS

Table continued from previous page

Note

Retained earnings $

Other comprehensive income

Remeasurement of defined benefit asset, net of tax 16 195,913 Total comprehensive income for the period 4,224,824 Transactions with members of the Association, recognised directly in equity Balance at 30 June 2015 46,201,004 The notes on pages 12 to 41 are an integral part of these financial statements.

Total equity $

195,913 4,224,824 46,201,004

STATEMENT OF CASH FLOWS For the year ended 30 June 2016 Note Cash flows from operating activities Cash receipts from operations Cash paid to suppliers and employees Cash generated from operations Interest received Net cash (used in)/from operating activities 21 Cash flows from investing activities Proceeds/(acquisition) of term deposits Acquisition of property, plant and equipment 13 Acquisition of investment property 12a Proceeds on sale of property, plant and equipment Net cash from/(used in) investing activities Cash flows from financing activities Net cash from/(used in) financing activities Net (decrease)/increase in cash and cash equivalents Cash and cash equivalents at 1 July CASH AND CASH EQUIVALENTS AT 30 JUNE 9 The notes on pages 12 to 41 are an integral part of these financial statements.

2016 $

2015 $

9,042,920 (10,173,563) (1,130,643) 718,021 (412,622)

8,477,262 (7,256,305) 1,220,957 828,857 2,049,814

600,000 (63,387) (274,095) 2,281 264,799

(2,000,000) (181,073) (334,710) 7,888 (2,507,895)

(147,823) 1,002,326 854,503

(458,081) 1,460,407 1,002,326

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 office is Level 6, 53 Queen Street, Melbourne. The financial report of the Association for the financial year ended 30 June 2016 comprises the National Account and the International Fund. The Association is a not-for-profit entity and primarily is involved in retail trade union activities.

2. BASIS OF PREPARATION a) Statement of compliance The financial report is a general purpose financial 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 financial statements were approved by the National Executive on 18th August 2016. b) Basis of measurement The financial report is prepared on the historical cost basis except for the following material items in the statement of financial position: • investment property is measured at fair value; and • the defined benefit 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 defined benefit obligation. c) Functional and presentation currency The financial report is presented in Australian dollars, which is the Association’s functional currency. d) Use of estimates and judgements The preparation of financial 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 significant effect on the amount recognised in the financial statements is included in the following notes: • Note 12 – investment property. (ii) Assumptions and estimation uncertainties Information about assumptions and estimation uncertainties that have a significant risk of resulting in a material adjustment within the next financial year are included in the following note: • Note 16 – Employee benefits.

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

The Association has an established control framework with respect to the measurement of fair values. Significant 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 classified. Significant 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 significant 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 The Association has consistently applied the accounting policies set out in Note 4 for all periods presented in these financial statements.

4. SIGNIFICANT ACCOUNTING POLICIES The accounting policies set out below have been applied consistently to all periods presented in these financial statements, and have been applied consistently by the Association. a) Financial instruments (i) Non-derivative financial assets The Association initially recognises receivables and deposits on the date that they originate. All other financial assets (including assets designated at fair value through profit 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 financial asset when the contractual rights to the cash flows from the asset expire, or it transfers the rights to receive the contractual cash flows on the financial asset in a transaction in which substantially all the risks and rewards of ownership of the financial asset are transferred. Any interest in transferred financial 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 financial 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 financial assets: held-to maturity financial assets, receivables, and cash and cash equivalents.

(b)

c)

d)

e)

Held-to-maturity financial assets Held-to-maturity financial assets are recognised initially at fair value plus any directly attributable transaction costs.

Subsequent to initial recognition held-to-maturity financial assets are measured at amortised cost using the effective interest method, less any impairment losses (see note 4e(i)). Any sale or reclassification of a more than insignificant amount of held-to-maturity investments not close to their maturity would result in the reclassification of all held-tomaturity investments as available-for-sale, and prevent the Association from classifying investment securities as held-to-maturity for the current and the following two financial years.

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

Receivables Receivables are financial assets with fixed 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 insignificant risk of changes in their fair value, and are used by the Association in the management of short-term commitments. (ii) Non-derivative financial liabilities The Association’s other financial 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 financial 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 financial 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 financial liabilities are recognised at fair value plus any directly attributable transaction costs. Subsequent to initial recognition these financial liabilities are measured at amortised cost using the effective interest rate method. Other financial 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.

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 profit or loss.

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 profit or loss. (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 benefits embodied within the part will flow to the Association and its cost can be measured reliably. The carrying amount of the replaced part is derecognised. The costs of the day-to-day servicing of property, plant and equipment are recognised in profit 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 profit 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 reflect the expected pattern of consumption of the future economic benefits 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: 2016 2015 • Leasehold improvements 5-20 years 6-20 years • Fixtures and fittings 4-20 years 4-20 years • Motor vehicles 8 years 8 years Depreciation methods, useful lives and residual values are reviewed at each financial year-end and adjusted if appropriate.

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 profit or loss.

Cost includes expenditure that is directly attributable to the acquisition of the investment property. The cost of selfconstructed 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 profit and loss. When an investment property that was previously classified 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 reclassified as property, plant and equipment, its fair value at the date of reclassification becomes its cost for subsequent accounting.

Impairment (i) Non-derivative financial assets A financial asset not carried at fair value through profit or loss is assessed at each financial reporting date to determine whether there is objective evidence that it is impaired. A financial 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 flows of that asset that can be estimated reliably.

Objective evidence that financial 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 specific asset and collective level. All individually significant receivables are assessed for specific impairment, and those found not to be specifically impaired are then collectively assessed for any impairment that has been incurred but not yet identified. Receivables that are not individually significant 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 financial asset measured at amortised cost is calculated as the difference between its carrying amount and the present value of the estimated future cash flows discounted at the asset’s original effective interest rate. Losses are recognised in profit or loss and reflected 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 profit or loss.

SDA FINANCIAL REPORTS I SPRING 2016 I PAGE 25

f)

g)

h)

i)

j)

k) l)

m)

n)

(ii) Non-financial assets The carrying amounts of the Association’s non-financial 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 identifiable asset group that generates cash flows that largely are independent from other assets and groups. Impairment losses are recognised in profit 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 flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific 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.

Employee benefits (i) Defined benefit plans The Association’s net obligation in respect of defined benefit plans is calculated separately for each plan by estimating the amount of future benefit 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 defined benefit obligations is performed annually by a qualified 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 benefits 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 benefits, consideration is given to any applicable minimum funding requirements.

Remeasurements of the net defined benefit 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 other comprehensive income. The Association determines the net interest expense (income) on the net defined benefit liability (asset) for the period by applying the discount rate used to measure the defined benefit obligation at the beginning of the annual period to the then-net defined benefit liability (asset), taking into account any changes in the net defined benefit liability (asset) during the period as a result of contributions and benefit payments. Net interest expense and other expenses related to defined benefit plans are recognised in profit or loss.

When the benefits of a plan are changed or when a plan is curtailed, the resulting change in benefit that relates to past service or the gain or loss on curtailment is recognised immediately in profit or loss. The Association recognises gains and losses on the settlement of a defined benefit plan when the settlement occurs. (ii) Other long-term employee benefits The Association’s net obligation in respect of long-term employee benefits other than defined benefit superannuation funds is the amount of future benefit that employees have earned in return for their service in the current and prior periods plus related on-costs; that benefit 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 Corporate bonds that have maturity dates approximating the terms of the Association’s obligations in which the benefits are expected to be paid. (iii) Short-term benefits Liabilities for employee benefits for wages, salaries and annual 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 benefits.

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 outflow of economic benefits will be required to settle the obligation.

Revenue (i) Capitation/affiliation fees Capitation/affiliation fees are fees received from the Branches of the Association in accordance with the rules of the Association. Such fees are referred to as affiliation fees in the rules and are calculated as a percentage of gross Branch membership income and paid annually in March. The Association cannot demand payment of affiliation fees from Branches, nor can Branches demand a refund once payment has been made. Under AASB 1004 governing the recognition, measurement and disclosure requirements surrounding contributions to not-for-profit entities, as the fees received represent a non-reciprocal transfer (no resulting equivalent obligations to the Branch for fees paid) the capitation/affiliation fees are accounted for as revenue and recognised upon receipt. (ii) Rental income Rental income from investment property is recognised in profit 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.

Finance income Finance income comprises interest income on funds invested. Interest income is recognised as it accrues in profit or loss, using the effective interest method.

Foreign currency gains and losses are reported on a net basis as either finance income or finance cost depending on whether foreign currency movements are in a net gain or net loss position.

Leases (i) Lease payments Payments made under operating leases are recognised in profit 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 finance leases are apportioned between the finance expense and the reduction of the outstanding liability. The finance 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 fulfilment of the arrangement is dependent on the use of a specific 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 finance 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 finance charge on the liability is recognised using the Association’s incremental borrowing rate.

Income tax The Association is exempt from income tax under Division 50, section 50-15 of the Income Tax Assessment Act 1997.

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 flows are included in the statement of cash flows on a gross basis. The GST components of cash flows arising from investing and financing activities which are recoverable from, or payable to, the ATO are classified as operating cash flows.

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 office holders to make decisions about resources to be allocated to the segment and to assess its performance, and for which discrete financial information is available.

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 2015, and have not been applied in preparing these consolidated financial 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 AASB 9 Financial Instruments, published in July 2014, replaces the existing guidance in AASB 39 Financial Instruments: Recognition and Measurement. AASB 9 includes revised guidance on the classification and measurement of financial instruments, a new expected credit loss model for calculating impairment on financial instruments, and new general hedge accounting requirement. It also carries forward the guidance on recognition and derecognition of financial instruments from AASB 39. AASB 9 is effective for annual periods beginning on or after 1 January 2018 with early adoption permitted. The extent of the impact has not been determined by the Association. (ii) AASB 15 Revenue from Contracts with Customers AASB 15 establishes a comprehensive framework for determining whether, how much, and when revenue is recognised. It replaces existing revenue recognition guidance, including AASB 118 Revenue, AASB 111 Construction Contracts and IFRIC 13 Customer Loyalty Programmes. AASB 15 is effective for annual reporting periods beginning on or after 1 January 2018. The extent of the impact has not been determined by the Association. (iii) AASB 16 Leases AASB 16 removes the lease classification test for lessees and requires all leases (including operating leases) to be brought onto the balance sheet. AASB 16 is effective for annual reporting periods beginning on or after 1 January 2019, with early adoption permitted where AASB 15 Revenue from Contracts with Customers is adopted at the same time. 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 benefit of its members.

6. FINANCIAL RISK MANAGEMENT The Association has exposure to the following risks from their use of financial 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 financial 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 reflect 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 financial loss to the Association if a customer or counterparty to a financial instrument fails to meet its contractual obligations, and arises principally from the Association’s receivables from customers and other financial assets. (i) Receivables The Association’s exposure to credit risk is influenced 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 significant credit risk. All receivables are with tenants in the Australian geographical region and therefore no impairment loss has been recognised at balance date (2015: no impairment loss). (ii) Cash and cash equivalents The Group held cash and cash equivalents of $854,503 at 30 June 2016 (2015: $1,002,326), which represents its maximum credit exposure on these assets. The cash and cash equivalents are held with bank and financial institution counterparties, which are located in Australia. b) Liquidity risk Liquidity risk is the risk that the Association will encounter difficulty in meeting the obligations associated with its financial liabilities that are settled by delivering cash or another financial asset. The Association’s approach to managing liquidity is to ensure, as far as possible, that it will always have sufficient 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 flow forecasts, which assists it in monitoring cash flow requirements and optimising its cash return on investments. Typically the Association ensures that it has sufficient cash on demand to meet expected operational expenses for a period of at least 120 days, the maximum term of its primary financial 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 financial 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 affiliation 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 fixed 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 fluctuations 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 financial 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 identified; • 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 confidence 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.

PAGE 26 I SPRING 2016 I SDA FINANCIAL REPORTS

7. OTHER INCOME 53 Queen Street, Melbourne - Rental income from investment property 53 Queen Street, Melbourne - Fair value increment ACTU trust distributions SDA Branch Reimbursements Other organisation reimbursements Grants and donations CARE director’s fees REST director’s fees Other income 8. AUDITOR’S REMUNERATION Audit services Auditors of the Association KPMG Australia: Audit and review of financial reports Other services Auditors of the Association KPMG Australia: Other assurance services TOTAL AUDITORS’ REMUNERATION 9. CASH AND CASH EQUIVALENTS Cash at bank Cash management accounts Term deposits

Note 18 12 22 22

22

2016 $ 1,392,477 825,905 145,232 652,851 4,415 30,184 121,424 507 3,172,995

2015 $ 1,284,929 1,765,290 34,950 422,599 158,962 59,106 125,114 416 3,851,366

26,112 26,112

25,000 25,000

2,643 2,643 28,755

2,531 2,531 27,531

129,499 131,920 626,992 775,183 98,012 95,223 854,503 1,002,326 The Association’s exposure to interest rate risk and a sensitivity analysis for financial assets is disclosed in note 17.

10. RECEIVABLES Accrued interest income 126,366 128,871 Prepayments 74,594 73,436 Receivables from related parties 22 Sundry debtors 435,526 497,240 636,486 699,547 The Association’s exposure to credit and currency risks, and impairment losses related to receivables is disclosed in note 17.

11. OTHER FINANCIAL ASSETS Term deposits 26,700,000 27,300,000 26,700,000 27,300,000 Term deposits have stated interest rates of 2.65 to 2.85 percent (2015: 2.75 to 3.00 percent) and mature in 120 days or more.

The Association’s exposure to credit and interest rate risk is disclosed in note 17.

During the year ended 30 June 2016, the Association received interest income of $715,516 (2015: $823,960) in respect of financial assets not at fair value through profit and loss.

12. INVESTMENT PROPERTY (a) Reconciliation of carrying amount Property Balance at 1 July 17,400,000 15,300,000 Capital Improvements 274,095 334,710 Fair value adjustment (refer below) 825,905 1,765,290 Balance at 30 June 18,500,000 17,400,000 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 office and leases the remaining floors to third parties. Each of the leases contains an initial non-cancellable period of a minimum of three years, with fixed percentage annual rent increases. Some lease incentives were paid towards tenancy fit-outs and are being amortised over the period of the leases on a straight line basis. 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 18. (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 qualifications 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 $18,500,000 was determined at 30 June 2016 by Gary Langden, Associate Director and certified practising valuer of M3 Property P/L, a registered independent appraiser having an appropriate recognised professional qualification in Australian Property Institute and recent experience in the location and category of the property being valued. 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 significant unobservable inputs The following shows the valuation technique used in measuring the fair value of investment property, as well as the significant unobservable inputs used.

Valuation techniques: Discounted cash flow approach (2016), Discounted cash flow approach (2015) Discounted cash flow approach: The discounted cash flow approach involves formulating a projection of net income over a specified horizon, typically ten years, and discounting this cash flow including the projected terminal value at the end of the projection period at an appropriate rate. The present value of this discounted cash flow represents the Market value of the property.

Significant unobservable inputs • 2016: Discount rate 7.75%, • 2015: Discount rate 8.00%.

Inter-relationship between key unobservable inputs and fair value measurement The estimated fair value would increase (decrease) if: • 2016: The discount rate was lower (higher).

• 2015: The discount rate was lower (higher).

13. PROPERTY, PLANT AND EQUIPMENT Cost Furniture and Motor Leasehold Total fittings $ Vehicles $ Improvements $ $ Balance at 1 July 2015 195,639 91,455 470,870 757,964 Acquisitions 58,777 4,610 63,387 Impairments (28,161) (28,161) (9,396) (9,396) Disposals 216,859 91,455 475,480 783,794 Balance at 30 June 2016 Balance at 1 July 2014 186,623 92,189 393,717 672,529 Acquisitions 12,465 91,455 77,153 181,073 Impairments (3,449) (3,449) (92,189) (92,189) Disposals 195,639 91,455 470,870 757,964 Balance at 30 June 2015 Depreciation and impairment losses Balance at 1 July 2015 155,677 11,237 167,172 334,086 Depreciation expense for the year 31,958 20,055 35,948 87,961 Impairments (28,161) (28,161) (7,622) (7,622) Disposals 151,852 31,292 203,120 386,264 Balance at 30 June 2016 Balance at 1 July 2014 143,792 73,839 138,699 356,330 Depreciation expense for the year 15,134 13,740 28,473 57,347 Impairments (3,449) (3,449) 200 (76,342 (76,142) Disposals 155,677 11,237 167,172 334,086 Balance at 30 June 2015

Cost Carrying amounts At 1 July 2015 At 30 June 2016 At 1 July 2014 At 30 June 2015

Furniture and fittings $

Motor Vehicles $

Leasehold Improvements $

Total $

39,962 65,007 42,831 39,962

80,218 60,163 18,350 80,218 Note 22

303,698 272,360 255,018 303,698 2016 $ 135,838 35,000 22,785 79,357 28,800 95,312 397,092

423,878 397,530 316,199 423,878 2015 $ 3,343 104,685 215,147 23,644 92,523 12,067 451,409

1,043 1,040,178 1,041,221

267,208 267,208

14. TRADE AND OTHER PAYABLES Payables to relaated parties Sundry creditors - legal costs - litigation Sundry creditors - legal costs - other legal matters Sundry creditors - others PAYG withholding tax payable Tenant security deposits Unearned rental income The Association’s exposure to liquidity risk is disclosed in note 17 (b).

15. EXPENSES (a) Grants or donations Grants that were $1,000 or less Grants that exceeded $1,000 Donations that were $1,000 or less Donations that exceeded $1,000 (b) Legal costs Litigation Other legal matters

47,995 47,898 1,602,056 502,100 1,650,051 549,998 There were no penalites imposed on the Association under the RO Act with respect to the conduct of the Association.

16. EMPLOYEE BENEFITS Current liability Office holders Liability for long service leave 243,533 238,575 Liability for annual leave 75,626 69,164 319,159 307,739 Employees other than office holders Liability for long service leave 203,273 277,816 Liability for annual leave 239,733 208,904 443,006 486,720 762,165 794,459 Non-current liability Employees other than office holders Liability for long-service leave 12,732 4,267 12,732 4,267 Non-current asset Office holders and other employees Present value of funded obligations 2,705,058 2,375,594 Fair value of plan assets - funded (3,061,649) (3,000,982) Recognised (asset) for defined benefit obligations (356,591) (625,388) The Association makes contributions to the SDA (Victoria Branch) benefit superannuation plan, a sub-plan of the Retail Employees’ Superannuation Trust, that provide defined benefit amounts for office holders and other employees upon retirement.

The Association has determined that, in accordance with the terms and conditions of the defined benefit 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 defined benefit asset is necessary at 30 June 2016 (30 June 2015: no decrease in the defined benefit asset).

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

Movements in the net asset for defined benefit obligations recognised in the statement of financial position: Net (asset)/liability for defined benefit obligations at 1 July (625,388) (470,908) Contributions paid into the plan (201,355) (134,121) Amount recognised in other comprehensive income - actuarial losses/(gains) 257,964 (195,913) Expenses recognised in statement of comprehensive income 212,188 175,554 with personnel expenses Net (asset)/liability for defined benefit obligations at 30 June (356,591) (625,388) Movement in the present value of the defined benefit obligations Defined benefit obligations at 1 July 2,375,594 2,463,350 Current service cost 235,188 188,801 Interest cost 75,006 76,227 Actuarial losses/(gains) recognised in other comprehensive income (see below) 225,434 (38,346) Benefits paid by the plan (166,589) (274,000) Taxes, premium & expenses paid (39,575) (40,438) Defined benefit obligations at 30 June 2,705,058 2,375,594 All benefits 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 3,000,982 2,934,258 Expected return on plan assets at discount rate 98,006 89,474 Actuarial (losses)/gains recognised in other comprehensive income (see below) (32,530) 157,567 Contributions paid 201,355 134,121 Benefits paid (166,589) (274,000) Taxes and expenses (39,575) (40,438) Fair value of plan assets at 30 June 3,061,649 3,000,982 Expense recognised in profit or loss Current service costs 235,188 188,801 Net interest costs (23,000) (13,247) 212,188 175,554 Re-measurements of net defined benefit liability/asset Loss/(Gain) on defined benefit obligation 225,434 (38,346) Loss/(Gain) on assets 32,530 (157,567) Recognised in other comprehensive expense/income 257,964 (195,913) Actuarial gains (and losses) recognised in other comprehensive income Cumulative amount at 1 July 130,588 (65,325) Recognised during the period (257,964) 195,913 Cumulative amount at 30 June (127,376) 130,588 The major categories of plan assets as a percentage of total fund assets are as follows: 2016 2015 Australian Equity 19% 19% International Equity 29% 29% Fixed Income 6% 10% Property 11% 11% Cash 6% 6% Other 29% 25% Actuarial assumptions Principal actuarial assumptions at the reporting date (expressed as weighted averages): Discount rate at 30 June 3.25% 4.25% Future salary increases 4.00% 4.00%

SDA FINANCIAL REPORTS I SPRING 2016 I PAGE 27

Sensitivity analysis The calculation of the defined benefit obligation is sensitive to the assumptions set out above. The following table summarises how the impact on the defined benefit 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.

2016 $ 2015 $ Additional DBO for a 1% decrease in the discount rate 176,742 158,032 Reduction DBO for a 1% increase in the discount rate 139,446 36,487 The above sensitivities are based on the average duration of the benefit obligation determined by the actuary as at 30 June 2016 and are applied to adjust the defined benefit 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 flows expected under the plan, it does provide an approximation to the sensitivity of the assumptions shown.

Historical information 2016 $ 2015 $ 2014 $ 2013 $ 2012 $ Present value of the defined benefit obligation 2,705,058 2,375,594 2,463,350 2,297,379 2,258,545 Fair value of plan assets - funded (3,061,649) (3,000,982) (2,934,258) (2,210,480) (2,050,099) Recognised (asset)/liability for (356,591) (625,388) (470,908) 86,899 208,446 defined benefit obligation 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 $90,327 to its defined benefit superannuation funds during the year ended 30 June 2017.

17. FINANCIAL INSTRUMENTS (a) Credit risk Exposure to credit risk The carrying amount of the Association’s financial assets represents the maximum credit exposure. The Association’s maximum exposure to credit risk at the reporting date was: Carrying amount Current Note 2016 $ 2015 $ Cash and cash equivalents 9 854,503 1,002,326 Receivables 10 636,486 699,547 26,700,000 27,300,000 Other financial assets 11 28,190,989 29,001,873 Impairment losses None of the Association’s receivables are past due (2015: nil) and based on historic default rates and the minimal credit risk, the Association believes no impairment allowance is necessary. The other financial 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 2016 the Association does not have any collective impairments on its cash and cash equivalents, receivables or other financial assets (2015: nil). All receivables are in the Australia geographic region. (b) Liquidity risk The carrying amount of the Association’s financial liabilities is represented by trade and other payables (note 14). The carrying amounts approximate contractual cash flows and all are due in 3 months or less (2015: 3 months or less). The Association has adequate financial 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 (2015: nil). (d) Interest rate risk Profile At the reporting date the interest rate profile of the Association’s interest-bearing financial instruments was: Note Effective Carrying interest rate amount $ Financial assets 2016 Cash and cash equivalents (fixed and variable rates) 9 0.70% 854,503 Other financial assets (fixed rate) 11 2.78% 26,700,000 27,554,503 Financial assets 2015 Cash and cash equivalents (fixed and variable rates) 9 0.69% 1,002,326 Other financial assets (fixed rate) 11 2.85% 27,300,000 28,302,326 Fair value sensitivity analysis for fixed rate instruments The Association does not account for any fixed and variable rate financial assets at fair value through profit or loss.

Therefore a change in interest rates at the reporting date would not affect profit 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 profit 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 2015.

Profit or loss 100bp increase 100bp decrease

30 June 2016 Cash management accounts 6,270 (6,270) 30 June 2015 Cash management accounts 7,752 (7,752) Fair values The fair value of the Association’s assets and liabilities as at 30 June 2016 approximate their carrying amounts shown in the statement of financial position.

18. 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: 2016 $ 2015 $ Less than one year 1,092,271 1,081,860 Between one and five years 1,745,954 2,552,839 More than five years 145,867 293,828 2,984,092 3,928,527 During the year, the Association recognised $1,392,477 as rental income in the statement of profit or loss and other comprehensive income (2015: $1,284,929).

19. CONTROLLED ENTITIES Parent entity The Association comprises the Shop, Distributive and Allied Employees’ Association National Account and the International Fund.

Controlled Entity 2016 % 2015 % 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 financial position at 30 June 2016 are nil, consolidated accounts are not prepared.

20. PERSONNEL EXPENSES Holders of office: 2016 $ 2015 $ Wages and salaries 259,079 263,446 Superannuation (including expenses related to defined benefit plan) 48,647 43,627 Leave and other entitlements 29,458 26,606 Separation and redundancies Other employee expenses 45,630 48,980 Subtotal employee expenses - holders of office 382,814 382,659

Employees other than office holders: Wages and salaries Superannuation (including expenses related to defined benefit plan) Leave and other entitlements Separation and redundancies Other employee expenses Subtotal employee expenses - employees other than office holders Total employee expenses 21. RECONCILIATION OF CASH FLOWS FROM OPERATING ACTIVITIES Profit for the period Adjustment for: Depreciation Fair value (increment)/decrement on investment property (Profit)/Loss on disposal of property, plant and equipment Actuarial (losses)/gains recognised in equity on defined benefit plan Operating profit before changes in working capital & provisions Change in accrued interest income Change in prepayments Change in sundry debtors Change in pension asset/(liability) Change in trade and other payables Change in provisions and employee benefits Net cash (used in)/from operating activities 22. RELATED PARTY DISCLOSURES Branches The Association received from its branches the following capitation/affiliation fees:

2016 $

2015 $

869,135 170,055 93,481 72,291 1,204,962 1,587,776

850,061 132,165 111,283 61,106 1,154,615 1,537,274

330,081

4,028,911

87,961 (825,905) (507) (257,964) (666,334) 2,505 (1,158) 61,714 268,797 (54,317) (23,829) (412,622)

57,347 (1,765,290) 8,159 195,913 2,525,040 4,897 (16,940) (259,218) (154,480) 44,494 (93,979) 2,049,814

Capitation/affiliation fees Newcastle 368,343 360,881 New South Wales 1,597,611 1,608,286 Queensland 932,743 996,548 South Australia 750,908 749,145 Tasmania 170,125 168,334 Victoria 1,303,494 1,297,348 Western Australia 701,381 687,552 Total capitation fees 5,824,605 5,868,094 The Association received from its branches the following expense reimbursements: 2016 ACTU IR ALP Election 100% Pay Other Intranet TOTAL Campaign Levy Donation Week of Action $ $ $ $ $ $ Newcastle 13,928 16,753 4,164 218 7,036 42,099 New South Wales 59,989 68,910 17,933 18,326 28,942 194,100 Queensland 31,302 38,341 9,358 109 16,103 95,213 South Australia 28,912 33,908 7,048 (135) 14,242 83,975 Tasmania 5,861 6,504 1,752 145 2,732 16,994 Victoria 50,444 58,199 15,080 264 24,443 148,430 Western Australia 23,578 27,385 8,643 932 11,502 72,040 214,014 250,000 63,978 19,859 105,000 652,851 2015 ACTU IR ALP Election 100% Pay Other Intranet TOTAL Campaign Levy Donation Week of Action $ $ $ $ $ $ Newcastle 13,763 4,469 2,653 7,029 27,914 New South Wales 59,567 19,340 8,018 30,273 117,198 Queensland 34,524 11,209 3,316 15,796 64,845 South Australia 28,611 9,289 5,313 14,590 57,803 Tasmania 6,028 1,957 1,150 2,958 12,093 Victoria 51,699 16,785 2,134 25,456 96,074 Western Australia 23,745 7,709 3,320 11,898 46,672 217,937 70,758 25,904 108,000 422,599 No other compulsory levies or appeals for voluntary contributions were raised from its branches or members of the Association.

The amounts paid or payable by the Association to its branches for expenses incurred on its behalf: 2016 $ 2015 $ Newcastle Meeting expenses - National Executive 775 1640 Campaigning expenses – wages 15,022 Campaigning expenses – radio & cinema ads 12,748 New South Wales Other expenses - office supplies & stationery 69 103 Delegate expenses – National Executive & other airfares 4,154 882 Publication expenses – Good Universities guide 4,750 Meeting expenses - National Council 39,250 Meeting expenses - other 2,764 Motor vehicle purchase & running expenses 22,718 Equipment purchases – electronic devices 1,629 Queensland Delegate expenses – National Executive airfares 1,689 Tasmania Meeting Expenses – National Executive 8,591 Campaigning expenses - Penalty Rates advertising 7,294 Victoria Personnel expenses – reimbursement of Victorian payroll tax 72,063 Western Australia Delegate expenses - National Executive airfares 950 Meeting expenses - National Council 47,328 The amounts owed to its branches at 30 June 2016 by the Association, included in payables to related parties in Note 14: Newcastle 27,770 Tasmania 220 Victoria 7,848 3,343 35,838 3,343 Affiliates The amounts paid or payable by the Association to its affiliates for expenses incurred on its behalf: ACTU Affiliation fees 1,139,565 815,308 IR Campaign Levy 428,028 435,874 Donations - Worksite for Schools program 12,500 12,500 Meeting expenses – attendance at conferences, forums & training 2,400 10,000 Campaigning - Medicare Advertising Campaign 100,000 Union Network International (UNI) Affiliation fees 745,113 721,667 Donations – UNI-APRO Activities Fund 133,360 129,708 ALP National Secretariat Donation – 2016 Federal Election Campaign 530,000 Donation - Campaign Field Organiser Salaries 103,850 Campaigning – 100% Pay at 18+ campaign ad 4,545 Other expenses - consulting – policy development project 20,000 10,000 Table continued on next page

PAGE 28 I SPRING 2016 I SDA FINANCIAL REPORTS

Table continued from previous page

2016 $

2015 $

ALP NSW Donation - Campaign Field Organiser Salaries 86,000 WA Labor Donation – 2016 Federal Election Campaign – Burt & Perth 44,469 ALP Eden Monaro Campaign Donation – 2016 Federal Election Campaign 25,000 ALP Monbulk SECC Donation – Victorian State Election Campaign – James Merlino 10,000 Tim Hammond Donation – ALP Presidential Campaign – Tim Hammond 10,000 The Association received trust distribution income of $145,232 (2015: $34,950) from the ACTU as an affiliate. In accordance with the ACTU “Constitution, Rules and Standing Orders” this was acquitted by the ACTU as additional affiliation fees above.

The amounts owed to its affiliates at 30 June 2016 by the Association, included in payables to related parties in Note 14: ACTU 100,000 100,000 Other related parties Key management personnel The following were key management personnel of the Association during the financial year: Name Position Joseph de Bruyn Officer – President Michael Donovan Officer - National Vice-President Gerard Dwyer Officer – National Secretary-Treasurer Ian Blandthorn Officer – National Assistant Secretary Bernie Smith National Executive Member Paul Griffin National Executive Member Barbara Nebart National Executive Member Peter Malinauskas National Executive Member - resigned 31/12/2015 Sonia Romeo National Executive Member - since 9/5/2016 Chris Gazenbeek National Executive Member Peter O’Keeffe National Executive Member Key management personnel remuneration The National Secretary-Treasurer and National Assistant Secretary are salaried employees of the Association with contributions made for them to a post-employment defined benefit superannuation fund. The Association also provides motor vehicles and parking to the National President, National Secretary-Treasurer and National Assistant Secretary, and accommodation to the National Secretary-Treasurer when travelling to the registered National Office in Melbourne.

The National Vice-President receives an honorarium. As the National Executive Members are not paid by the Association, there are only 4 remunerated officer holders of the Association.

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

Key management personnel compensation to the National Officers comprised: 2016 $ 2015 $ Short-term employee benefits 532,165 478,182 Post-employment benefits 62,288 61,087 Other long-term benefits 4,958 7,271 599,411 546,540 Note 15 discloses liabilities for annual leave and long service leave for office holders.

The remuneration by officer comprised: 2016 Gerard Michael Joseph Joseph Ian Total Dwyer Donovan Bullock de Bruyn Blandthorn Secretary- President ViceVice- President Secretary- Assistant Treasurer President President Treasurer Secretary $ $ $ $ $ $ $ $ Short-term employee benefits Salary (including annual leave taken) 148,698 128,418 277,116 Honorarium & gifts 3,500 3,500 Annual leave accrued 2,468 3,994 6,462 REST Director Fees 147,298 147,298 Non-monetary (accommodation, 42,780 27,113 27,896 97,789 motor vehicle & parking) Total short-term employee benefits 193,946 3,500 174,411 160,308 532,165 Post-employment benefits Superannuation-Defined Benefit 22,305 19,263 41,568 Superannuation 13,993 6,727 20,720 (REST SG payments) Total post-employment benefits 22,305 13,993 25,990 62,288 Other long-term benefits 3,052 1,906 4,958 Long-service leave 3,052 1,906 4,958 Total other long-term benefits 219,303 3,500 188,404 188,204 599,411 Total 2015

Gerard Michael Joseph Joseph Ian Dwyer Donovan Bullock de Bruyn Blandthorn Secretary- President ViceVice- President Secretary- Assistant Treasurer President President Treasurer Secretary $ $ $ $ $ $ $

Total

$ Short-term employee benefits Salary (including annual leave taken) 96,761 24,190 45,818 124,073 290,842 Honorarium & gifts 5,000 3,500 4,000 12,500 Annual leave accrued 1,078 269 3,525 (1,300) 3,572 REST Director Fees 91,020 91,020 Non-monetary (accommodation, 25,871 2,001 19,237 9,619 23,520 80,248 motor vehicle & parking) Total short-term employee benefits 123,710 31,460 3,500 110,257 62,962 146,293 478,182 Post-employment benefits Superannuation-Defined Benefit 14,514 3,629 6,873 18,611 43,627 Superannuation 8,647 4,396 4,417 17,460 (REST SG payments) Total post-employment benefits 14,514 3,629 8,647 11,269 23,028 61,087 Other long-term benefits 2,419 605 1,145 3,102 7,271 Long-service leave 2,419 605 1,145 3,102 7,271 Total other long-term benefits 140,643 35,694 3,500 118,904 75,376 172,423 546,540 Total Apart from the details disclosed in this note, no officer has entered into any material transactions with the Association since the end of the previous financial year and there were no material contracts involving officers’ interests existing at year-end.

Superannuation Contributions of $201,355 (2015: $134,121) were made to a post-employment defined benefit fund managed by the Retail Employees’ Superannuation Trust (“REST”) on behalf of salaried office holders and employees other than office holders.

The Association receives director fees of $121,424 (2015: 125,114) from REST for the services performed by two representatives of the Association, Mr Ian Blandthorn and Ms Sue-Anne Burnley. These director fees are included in Other Income in note 7. Mr Joe de Bruyn on being elected National President in October 2014 no longer receives a salary from the Association, therefore is entitled to personally receive director fees for services as a REST director from November 2014, these are disclosed in short-term employee benefits in key management personnel in Note 22.

The directors personally receive Superannuation Guarantee (SG) payments from REST for the above director fees, these are disclosed in post-employment benefits for key management personnel in Note 22.

23. SUBSEQUENT EVENTS There has not arisen in the interval between the end of the financial year and the date of this report any item, transaction or event of a material and unusual nature likely, in the opinion of the officer holders of the Association, to affect significantly the operations of the Association, the results of those operations, or the state of affairs of the Association in future financial years.

24. 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 specified 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).

25. ECONOMIC DEPENDENCY The Association is not reliant on the agreed financial 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 financial support to ensure another reporting unit, branch or affiliate has the ability to continue as a going concern.

INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF THE SHOP, DISTRIBUTIVE AND ALLIED EMPLOYEES’ ASSOCIATION We have audited the accompanying financial report of the Shop, Distributive and Allied Employees’ Association (the Association), which comprises the statement of financial position as at 30 June 2016, and the statement of profit or loss and other comprehensive income, statement of changes in equity and statement of cash flows for the year ended on that date, notes 1 to 25 comprising a summary of significant accounting policies and other explanatory information, the Operating Report, the Committee of Management Statement and Certificate by the National Secretary-Treasurer.

National Executive’s responsibility for the financial report.

The National Executive of the Association is responsible for the preparation of the financial report that gives a true and fair view 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 financial report that is free from material misstatement, whether due to fraud or error.

In preparing the financial report, the National Executive is responsible for assessing the Association’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the National Executive either intend to liquidate the Association or to cease operations, or have no realistic alternative but to do so.

Auditor’s responsibility Our responsibility is to: • Express an opinion on the financial report based on our audit; and • Conclude on the appropriateness of the National Executive’s use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Association’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the financial report or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the Association to cease to continue as a going concern.

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 financial report is free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial report. The procedures selected depend on the auditor’s judgement, including the assessment of the risks of material misstatement of the financial 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 financial 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 National Executive, as well as evaluating the overall presentation of the financial report.

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

We believe that the audit evidence we have obtained is sufficient 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 financial report of the Shop, Distributive and Allied Employees’ Association is in accordance with the Fair Work (Registered Organisations) Act 2009, including: • giving a true and fair view of the company’s financial position as at 30 June 2016 and of its performance for the year ended on that date; • complying with applicable Australian Accounting Standards; • and other mandatory professional reporting requirements of the Fair Work (Registered Organisations) Act 2009.

Going concern I declare that, as part of the audit of the financial report for the financial year ended 30 June 2016, the National Executives’ use of the going concern basis of accounting in the preparation of the Shop, Distributive and Allied Employees’ Association’s financial statements is appropriate.

KPMG Antoni Cinanni, Partner Member of Institute of Chartered Accountants #46581, dated 21 May 2002 Registered Company Auditor - #394346, dated 1 February 2011 Certificate of Public Practice with ICAA, dated 25 August 2010 Melbourne, 18 August, 2016 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 financial year ended 30 June 2016 there have been: • no contraventions of any applicable code of professional conduct in relation to the audit.

KPMG Antoni Cinanni, Partner Melbourne, 18 August, 2016

SDA FINANCIAL REPORTS I SPRING 2016 I PAGE 29

SHOP, DISTRIBUTIVE AND ALLIED EMPLOYEES’ ASSOCIATION, NSW BRANCH FINANCIAL REPORT FOR THE YEAR ENDED 30 JUNE 2016 INDEPENDENT AUDITORS’ REPORT TO THE MEMBERS OF SHOP, DISTRIBUTIVE AND ALLIED EMPLOYEES’ ASSOCIATION, NSW BRANCH Report on the Financial Report We have audited the financial report of the Shop, Distributive and Allied Employees’ Association NSW Branch (“the Association”), which compromises the statement of Financial Position as at 30 June 2016, the statement of comprehensive income, statement of changes in equity and statement of cash flows for the year then ended, notes comprising a summary of significant accounting policies and other explanatory information to the financial report, and the statement by the Committee of Management.

Committee of Management’s Responsibility for the Financial Report The Committee of Management of the Shop, Distributive and Allied Employee’s Association NSW Branch is responsible for the for the preparation and fair presentation of the financial report in accordance with Australian Accounting Standards (including the Australian Accounting Interpretations) and Fair Work (Registered Organisations) Act 2009.

This responsibility includes establishing and maintaining such internal controls as the Committee of Management determines is necessary to enable the preparation and fair presentation of the financial that is free from material misstatement, whether due to fraud or error.

In preparing the financial report, the Committee of Management is responsible for assessing the Association’s ability to continue as a going concern.

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

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial report. The procedures selected depend on the auditor’s judgement, including the assessment of the risks of material misstatement of the financial 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 financial 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 Committee of Management, as well as evaluating the overall presentation of the financial report.

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

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

Audit Opinion In our opinion, the financial report of the Shop, Distributive and Allied Employees’ Association NSW Branch: 1. Presents fairly, in all material respects, the financial positon of the Association’s financial position as at 30 June 2016, and its financial performance and its cash flows for the year then ended; and 2. Complies with Australian Accounting Standards and the relevant legislation, including the Fair Work (Registered Organisations) Act 2009 and reporting guidelines.

Going Concern I declare, that as part of the audit report of financial report for the year ended 30 June 2016, the Committee of Management’s use of the going concern basis of accounting in the preparation of the Shop, Distributive and Allied Employees’ NSW Branch financial statements is appropriate.

Recovery of Wages The Association does not engage in the recovery of wages activity.

Joseph Paul Grech Grech Smith Bridle Partner Chartered Accountants Registered Company Auditor, Number 4327 Holder of Current Practicing Certificate and Member of Chartered Accounts Australia And New Zealand, Number 24310 Dated at Sydney this 16th day of August 2016

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 Certificate.

Joseph Paul Grech Grech Smith Bridle Partner Chartered Accountants Registered Company Auditor, Number 4327 Holder of Current Practicing Certificate and Member of Chartered Accounts Australia And New Zealand, Number 24310 Dated at Sydney this 16th day of August 2015

AUDITOR’S INDEPENDENCE DECLARATION FOR THE YEAR ENDED 30 JUNE 2016 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 2016 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 Certificate and Member of Chartered Accounts Australia And New Zealand, Number 24310 Dated at Sydney this 16th day of August 2016

OPERATING REPORT FOR THE YEAR ENDED 30 JUNE 2016 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 benefits.

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.

Significant changes in financial affairs There were no significant changes in the nature of the activities and financial affairs in the Association during the financial 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 officer & 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 and Aliscia Di Mauro act as the alternate Director for Joe de Bruyn and Geoff Williams.

Directors Alternates Mr Joe de Bruyn Mr Gerard Dwyer Mr Geoff Williams Ms Aliscia Di Mauro Number of Members Membership as at 30 June 2016 was 58,882 (2015: 58,670).

Number of employees At 30 June 2016, there were no persons employed by the NSW Branch of the Association.

Affiliations & Directorships Detailed below are the affiliations 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 is a member of the Administrative Committee of the Australian Labor Party, NSW Branch.

The NSW Branch Secretary-Treasurer is 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 financial 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 financial year are: Name Experience Position C. Cassell Member since 4 February 2003 Branch President M. Dumycz Member since 28 September 2010 Branch Vice President (Branch membership) B. Smith Member since 10 May 2005 Branch Secretary - Treasurer R. Tonkli Member since 23 September 2014 Branch Assistant Secretary - Treasurer M. Hagley Member since 9 February 1999 Branch Trustee H. Thomas Member since 4 February 2003 Branch Trustee M. Doherty Member since 12 December 2014 Branch Councillor (Retail membership) S. Sammak Member since 18 February 2014 Branch Councillor (Drug and Allied membership) D. Robbins Member since 28 September 2010 Branch Councillor (Other Industries and Vocational Grouping membership) S. Barros Member since 16 February 2010 Branch Councillor (Branch membership) P. Avellino Member since 28 September 2010 Branch Councillor (Branch membership) A. Apps Member since 23 September 2014 Branch Councillor (Branch membership) J. Slender Member since 23 September 2014 Branch Councillor (Branch membership) N. Atkins Member since 12 December 2014 Branch Councillor (Branch membership) M. Hackett Member since 12 December 2014 Branch Councillor (Branch membership) A. Manos Member since 12 December 2014 Branch Councillor (Branch membership) C. Williams Member since 12 December 2014 Branch Councillor (Branch membership) The Association maintained its rules and reported according to statutory requirements.

Bernie Smith Robert Tonkli Committee of Management Committee of Management Dated at Sydney this 16th day of August 2016

COMMITTEE OF MANAGEMENT STATEMENT FOR THE YEAR ENDED 30 JUNE 2016 On 16 August 2016 the Committee of Management of Shop, Distributive and Allied Employees’ Association NSW Branch passed the following resolution in relation to the general purpose financial report (GPFR) for the year ended 30 June 2016: The Committee of Management declares that in its opinion: a) The financial statements and notes comply with the Australian Accounting Standards; b) The financial statements and notes comply with the reporting guidelines of the General Manager; c) The financial statements and notes give a true and fair view of the financial performance, financial position and cash flows of the reporting unit for the financial 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 financial 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 financial 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 financial records of the reporting unit have been kept and maintained in accordance with the Fair Work (Registered Organisations) Act 2009; and iv) Where the organisation consists of two or more reporting units, the financial 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 Fair Work (Registered Organisations) Act 2009 has been provided to the member or General Manager; and vi) Where any orders for inspection of financial records have been made by the Fair Work Commission under section 273 of the Fair Work (Registered Organisations) Act 2009, 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 officer: Bernie Smith, Secretary/Treasurer Dated: 16 August 2016

STATEMENT OF COMPREHENSIVE INCOME FOR THE YEAR ENDED 30 JUNE 2016 Revenue Membership subscription Capitation fees Levies Interest Other revenue Total revenue Other income Grants and/or donations Total other income Total income Expenses Employee expenses Capitation fees Affiliation fees Administration expenses Grants or donations Legal costs Other expenses Total expenses Profit (loss) for the year Other comprehensive income Items that will not be subsequently reclassified to profit 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.

PAGE 30 I SPRING 2016 I SDA FINANCIAL REPORTS

Note

2016 $

2015 $

3A 3B 3C 3D

404,552 7 4,305,344 4,709,903

335,092 7 3,886,674 4,221,773

3E

4,709,903

4,221,773

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

2,059,615 2,517,804 94,901 4,672,320 37,583

2,028,175 2,372,801 4,400,976 (179,203)

-

-

STATEMENT OF FINANCIAL POSITION AS AT 30 JUNE 2016 ASSETS Current Assets Cash and cash equivalents Trade and other receivables Other current assets Total current assets Non-Current Assets Total non-current 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 deficit) Total equity The above statement should be read in conjunction with the notes.

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2016

Note

2016 $

2015 $

5A 5B 5C

41,124 52,272 1,175,856 1,269,252

6,725 155,345 1,061,772 1,223,842

1,269,252

1,223,842

6A 6B 7A

21,546 21,546

13,719 13,719

7A

21,546 1,247,706

13,719 1,210,123

1,247,706 1,247,706

1,210,123 1,210,123

STATEMENT OF CHANGES IN EQUITY FOR THE YEAR ENDED 30 JUNE 2016 Balance at 1 July 2014 Adjustment for errors Adjustment for changes in accounting policies Profit for the year Other comprehensive income for the year Transfer to/from other fund Transfer from retained earnings Closing balance at 30 June 2015 Adjustment for errors Adjustment for changes in accounting policies Profit for the year Other comprehensive income for the year Transfer to/from other fund Transfer from retained earnings Closing balance at 30 June 2016 The above statement should be read in conjunction with the notes.

General Funds $ -

Retained Earnings $ 1,389,326 (179,203) 1,210,123 37,583 1,247,706

Total Equity $ 1,389,326 (179,203) 1,210,123 37,583 1,247,706

CASH FLOWS STATEMENT FOR THE YEAR ENDED 30 JUNE 2016 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) financing activities Net increase/(decrease) in cash held Cash & cash equivalents at beginning of the financial year Cash & cash equivalents at end of the financial year The above statement should be read in conjunction with the notes.

Note

2016 $

2015 $

8B

4,304,439 7 394,447

3,886,674 7 469,421

(2,937,984) (1,726,510) 34,399

(2,723,743) (1,667,853) (35,494)

-

-

-

-

-

-

34,399 6,725 41,124

(35,494) 42,219 6,725

8B 8A

5

RECOVERY OF WAGES ACTIVITY FOR THE YEAR ENDED 30 JUNE 2016 Note 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

2016 $

2015 $

-

-

-

-

-

-

-

-

-

-

-

-

NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES 1.1 Basis of preparation of the financial statements The financial statements are general purpose financial 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 financial statements, the Shop, Distributive and Allied Employees’ Association NSW Branch is a not-for-profit entity.

The financial 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 financial position. The financial statements are presented in Australian dollars.

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

1.3 Significant accounting judgements and estimates The Committee of Management evaluate estimates and judgments incorporated into the financial 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 financial year.

1.5 Basis of consolidation These financial 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 significant influence and that is neither a subsidiary nor an interest in a joint venture. Significant influence is the power to participate in the financial 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 benefits associated with the transaction will flow 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 insignificant risk of changes in value and bank overdrafts. Bank overdrafts are shown within short-term borrowings in current liabilities on the consolidated statement of financial position.

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

1.13 Financial assets Financial assets are classified into the following specified categories: financial assets at fair value through profit or loss, held-to-maturity investments, available-for-sale financial assets and loans and receivables. The classification depends on the nature and purpose of the financial assets and is determined at the time of initial recognition.

All regular way purchases or sales of financial assets are recognised and derecognised upon trade date basis.

Regular way purchases or sales are purchases or sales of financial assets that require delivery of assets within the time frame established by regulation or convention in the marketplace.

Fair value through profit or loss The Association does not hold any financial assets for trading nor does it designate financial assets at fair value through profit or loss.

Loan and receivables Trade receivables, loans and other receivables that have fixed or determinable payments that are not quoted in an active market are classified 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.

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

Available-for-sale Listed shares and listed redeemable notes held by the reporting unit that are traded in an active market are classified as available-for-sale and are stated at fair value. The reporting unit also has investments in unlisted shares that are not traded in an active market but that are also classified as available-for-sale financial assets and stated at fair value.

Gains and losses arising from changes in fair value are recognised in other comprehensive income and accumulated in the investments revaluation reserve, with the exception of impairment losses, interest calculated using the effective interest method, and foreign exchange gains and losses on monetary assets, which are recognised in profit or loss. Where the investment is disposed of or is determined to be impaired, the cumulative gain or loss previously accumulated in the investments revaluation reserve is reclassified to profit or loss.

Dividends on available-for-sale equity instruments are recognised in profit or loss when the reporting unit right to receive the dividends is established. The fair value of available-for-sale monetary assets denominated in a foreign currency is determined in that foreign currency and translated at the spot rate at the end of the reporting period. The foreign exchange gains and losses that are recognised in profit or loss are determined based on the amortised cost of the monetary asset. Other foreign exchange gains and losses are recognised in other comprehensive income.

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 financial 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 financial assets that are recognised at fair value through profit or loss.

SDA FINANCIAL REPORTS I SPRING 2016 I PAGE 31

1.14 Financial liabilities Financial liabilities are classified as either financial liabilities ‘at fair value through profit or loss’ or other financial liabilities. Financial liabilities are recognised and derecognised upon ‘trade date’.

Fair value through profit or loss The Association does not hold any financial liabilities for trading nor does it designate financial liabilities as fair value through profit or loss.

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

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

Derecognition of financial liabilities The reporting unit derecognises financial liabilities when, and only when, the reporting units obligations are discharged, cancelled or they expire. The difference between the carrying amounts of the financial liability derecognised and the consideration paid and payable is recognised in profit 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 Benefits 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 Office; 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 flows are included in the cash flow statement on a gross basis. The GST component of cash flows arising from investing and financing activities which is recoverable from, or payable to, the Australian Taxation Office is classified within operating cash flows.

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

Shop, Distributive and Allied Employees’ Association NSW Branch does not provide financial 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 2016, and/or prior to the signing of the financial statements, that would affect the ongoing structure and financial activities of Shop, Distributive and Allied Employees’ Association NSW Branch.

2016 $ 2015 $ NOTE 3: INCOME NOTE 3A: CAPITATION FEES Capitation fees Total capitation fees NOTE 3B: LEVIES Levies Total levies NOTE 3C: INTEREST Deposits 7 7 Loans 7 7 Total Interest NOTE 3D: OTHER REVENUE Surplus transferred from NSW Deductions Account Office 4,304,439 3,886,674 905 Other revenue 4,305,344 3,886,674 Total other revenue NOTE 3E: GRANTS OR DONATIONS Grants Donations Total grants or donations NOTE 4: EXPENSES NOTE 4A: EMPLOYEE EXPENSES Holders of office: Wages and salaries Superannuation Leave and other entitlements Separation and redundancies Other employee expenses Subtotal employee expenses holders of office Employees other than office holders: Wages and salaries Superannuation Leave and other entitlements Separation and redundancies Other employee expenses Subtotal employee expenses employees other than office holders Total employee expenses NOTE 4B: CAPITATION FEES Capitation fees Total capitation fees NOTE 4C: AFFILIATION FEES National Office SDA 1,393,869 1,375,813 National Office SDA - International Fund 209,080 206,372 ALP NSW 249,750 242,686 ALP ACT 7,878 7,344 Labor Council NSW 194,634 191,576 Labor Council ACT 1,530 1,555 Labor Council South Coast 2,874 2,829 Total affiliation fees/subscriptions 2,059,615 2,028,175 NOTE 4D: ADMINISTRATION EXPENSES Consideration paid to employers for payroll deductions Compulsory Levies ACTU IR Campaign Levy 59,989 59,567 Fees/allowances – meeting and conferences 56,847 62,625 Conference and meeting expenses 787,094 834,733 Membership propagation expenses 890,492 794,380 Journal costs 466,398 369,420 Textbooks scholarships & TEAP Payments 84,871 104,562 Other 172,113 147,514 2,517,804 2,372,801 Subtotal administration expenses Operating lease rental Minimum lease payments 2,517,804 2,372,801 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 Total paid that exceeded $1,000 Total grants or donations 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) Shop, Distributive and Allied Employees’ Association NSW Deductions Account Office Total receivables from other reporting unit(s) Less provision for doubtful debts Total provision for doubtful debts Receivable from other reporting unit(s) net Other Receivables GST receivable from the Australian Taxation Office 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) 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 Office holders: Annual leave Long service leave Separation and redundancies Other Subtotal employee provisions - office holders Employees other than office holders: Annual leave Long service leave Separation and redundancies Other Subtotal employee provisions - employees other than office 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 flow statement Balance sheet Difference Reconciliation of profit/(deficit) to net cash from operating activities: Profit/(deficit) for the year Adjustments for non-cash items (Increase)/decrease in net receivables (Increase)/decrease in prepayments Increase/(decrease) in supplier payables Increase/(decrease) in other payables Increase/(decrease) in employee provisions Increase/(decrease) in other provisions Net cash from (used by) operating activities NOTE 8B: CASH FLOW INFORMATION Cash inflows Shop, Distributive & Allied Employees’ Association NSW Deductions Account Office Total cash inflows Cash outflows Shop, Distributive & Allied Employees’ Association National Office Total cash outflows 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.

PAGE 32 I SPRING 2016 I SDA FINANCIAL REPORTS

2016 $

2015 $

-

-

2,173 92,728 94,901

-

-

-

-

-

41,124 41,124

6,725 6,725

-

33,945 33,945 33,945

1,959 50,313 52,272 52,272

4.041 117,359 121,400 155,345

1,175,856 1,175,856

1,061,772 1,061,772

21,546 21,546

13,719 13,719

21,546

13,719

-

-

-

-

-

-

-

-

41,124 41,124 -

6,725 6,725 -

37,583

(179,203)

103,073 (114,084) 7,827 34,399

(101,522) 235,852 9,379 (35,494)

4,304,439 4,698,893

3,886,674 4,356,102

1,726,510 4,664,494

1,667,853 4,391,596

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.

2016 $ 2015 $ Revenue received from Shop, Distributive and Allied Employees’ Association NSW Deductions Account Office includes the following: Surplus transferred from Shop, Distributive and Allied Employees’ Association NSW Deductions Account Office 4,304,439 3,886,674 Expenses paid to National Office SDA includes the following: Affiliation fees – National Office SDA 1,393,869 1,375,813 Donation – ALP 2016 Election Campaign Levy 68,910 Expenses paid to National Office SDA – International Fund includes the following: Affiliation fees – National Office SDA – International Fund 209,080 206,372 Expenses paid to ALP NSW includes the following: Affiliation fees – ALP NSW 249,750 242,686 Donations – 2016 Election Campaign 24,637 Donations – G Warren Campaign Lunch 900 Expenses paid to ALP ACT includes the following: Affiliation fees – ALP ACT 7,878 7,344 Expenses paid to Labor Council NSW includes the following: Affiliation fees – Labor Council NSW 194,634 191,576 Expenses paid to Labor Council ACT includes the following: Affiliation fees – Labor Council ACT 1,530 1,555 Campaign Levy paid to National Office SDA includes the following: ACTU IR Campaign Levy – National Office SDA 59,989 59,567 Expenses paid to Labor Council South Coast includes the following: Affiliation fees – Labor Council South Coast 2,874 2,829 NOTE 11: REMUNERATION OF AUDITORS Grech Smith Bridle Financial statement audit services Other services Total remuneration of auditors The auditor did not perform any other additional services. The auditor’s remuneration was paid by Shop, Distributive and Allied Employees’ Association NSW Deductions Account Office.

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 reflect 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 financial instruments consist mainly of deposits with banks and accounts payable.

The Association does not have any derivative instruments at 30 June 2016.

2016 $ 2015 $ NOTE 12A: CATEGORIES OF FINANCIAL INSTRUMENTS Financial assets Fair value through profit or loss: Total Held-to-maturity investments: Total Loans and receivables: Trade and other receivables 52,272 155,345 Total 52,272 155,345 Available for sale: Cash and cash equivalents 41,124 6,725 41,124 6,725 Total 41,124 6,725 Carrying amount of financial assets Financial Liabilities Other financial liabilities: Trade and other payable 21,546 13,719 Total 21,546 13,719 Carrying amount of financial liabilities 21,546 13,719 NOTE 12B: NET INCOME AND EXPENSE FROM FINANCIAL ASSETS Available for sale Interest revenue 7 7 Dividend revenue Exchange gains/(loss) Gains/(loss) recognised in equity Amounts reversed from equity: Impairment Fair value changes reversed on disposal Gains/(loss) on disposal 7 7 Net gain/(loss) available for sale Loans and receivables Interest revenue Exchange gains/(loss) Impairment Gains/(loss) on disposal Net gain/(loss) from loan and receivables 7 7 Net gain/(loss) from financial assets All financial assets are deemed to be at fair value.

The net income/expense from financial assets not at fair value from profit and loss is $0 (2015: $0).

NOTE 12C: NET INCOME AND EXPENSE FROM FINANCIAL LIABILITIES The net income/expense from financial liabilities not at fair value from profit and loss is $0 (2015: $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 41,124 6,725 Receivables 52,272 155,345 93,396 162,070 Total 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 flows and ensuring that adequate cash facilities are maintained.

Contractual maturities for financial liabilities 2016 On Demand $ < 1 year $ 1-2 years $ 2-5 years $ > 5 years $ Total $ 21,546 21,546 Trade Payable Total 21,546 21,546 Contractual maturities for financial liabilities 2015 On Demand $ < 1 year $ 1-2 years $ 2-5 years $ > 5 years $ Total$ Trade Payable 13,719 13,719 Total 13,719 13,719

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 fluctuations 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 financial 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 2016 was assessed to be insignificant.

NOTE 14: ACQUISITIONS The reporting unit has not acquired an asset or a liability during the financial year as a result of: a) an amalgamation under Part 2 of Chapter 3, of the RO Act 2009 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 2009 of an alternative reporting structure for the organisation; or d) a revocation by the General Manager under subsection 249(1) of the RO Act 2009 of a certificate 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 specified 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 2016 RESOLUTION REGARDING TRANSFER OF FUNDS SURPLUS TO THE REQUIREMENT OF THE DEDUCTIONS ACCOUNT OFFICE FOR THE YEAR ENDED 30 JUNE 2016 Resolved: The National Executive ratifies the transfer of an amount of $4,304,439 from the Shop, Distributive and Allied Employees’ Association NSW Deductions Account Office, to the account of the NSW Branch of the Association, such funds being surplus to the requirement of the Deductions Account Office for the year ended 30 June 2016.

Dated at Sydney this 18th day of August 2016

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 financial report of the Shop, Distributive and Allied Employees’ Association NSW Deductions Accounts office (“the Association”), which compromises the statement of Financial Position as at 30 June 2016, the statement of comprehensive income, statement of changes in equity and statement of cash flows for the year then ended, notes comprising a summary of significant accounting policies and other explanatory information to the financial report, and the statement by the Committee of Management.

Committee of Management’s Responsibility for the Financial Report The Committee of Management of the Shop Distributive and Allied Employee’s Association NSW Deductions Account Office is responsible for the for the preparation and fair presentation of the financial report in accordance with Australian Accounting Standards (including the Australian Accounting Interpretations) and Fair Work (Registered Organisations) Act 2009. This responsibility includes establishing and maintaining such internal controls as the Committee of Management determines is necessary to enable the preparation and fair presentation of the financial that is free from material misstatement, whether due to fraud or error.

In preparing the financial report, the Committee of Management is responsible for assessing the Association’s ability to continue as a going concern.

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

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial report. The procedures selected depend on the auditor’s judgement, including the assessment of the risks of material misstatement of the financial 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 financial 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 Committee of Management, as well as evaluating the overall presentation of the financial report.

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

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

Audit Opinion In our opinion, the financial report of the Shop, Distributive and Allied Employees’ Association NSW Deductions Account Office; 1. Presents fairly, in all material respects, the financial positon of the Association’s financial position as at 30 June 2016, and its financial performance and its cash flows for the year then ended; and 2. Complies with Australian Accounting Standards and the relevant legislation, including the Fair Work (Registered Organisations) Act 2009 and reporting guidelines Going Concern I declare, that as part of the audit report of financial report for the year ended 30 June 2016, the Committee of Management’s use of the going concern basis of accounting in the preparation of the Shop, Distributive and Allied Employees’ NSW Deductions Account office financial statements is appropriate.

Recovery of Wages The Association does not engage in the recovery of wages activity.

Joseph Paul Grech Grech Smith Bridle Partner Chartered Accountants Registered Company Auditor, Number 4327 Holder of Current Practicing Certificate and Member of the Chartered Accountants Australia and New Zealand, Number 24310 Dated at Sydney this 18th day of August 2016

SDA FINANCIAL REPORTS I SPRING 2016 I PAGE 33

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 Certificate.

Joseph Paul Grech Grech Smith Bridle Partner Chartered Accountants Registered Company Auditor, Number 4327 Holder of Current Practicing Certificate and Member of the Chartered Accountants Australia and New Zealand, Number 24310 Dated at Sydney this 18th day of August 2016

AUDITOR’S INDEPENDENCE DECLARATION FOR THE YEAR ENDED 30 JUNE 2016 TO THE COMMITTEE OF MANAGEMENT OF 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 2016 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 Partner Chartered Accountants Registered Company Auditor, Number 4327 Holder of Current Practicing Certificate and Member of the Chartered Accountants Australia and New Zealand, Number 24310 Dated at Sydney this 18th day of August 2016

OPERATING REPORT FOR THE YEAR ENDED 30 JUNE 2016 The committee presents its report on the reporting unit for the financial year ended 30 June 2016.

Review of principal activities, the results of those activities and any significant changes in the nature of those activities during the year 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 benefits.

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.

Significant changes in financial affairs There were no significant changes in the nature of the activities and financial affairs in the Association during the financial 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.

Officers & 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 2016, along with the nominated alternate Employee Directors.

Directors: Alternates: Mr Joe de Bruyn Mr Gerard Dwyer Mr Ian Blandthorn Mr Michael Donovan Mr Geoff Williams Ms Aliscia Di Mauro Ms Sue-Anne Burnley Ms Julia Fox Ms. S Burnley was also a Director of CARE Super Pty Ltd until her resignation on 31 January 2016.

Mr P Griffin is also a director of Tasplan Super.

Number of Members Membership as at 30 June 2016 was 58,882 (2015: 58,670).

Number of employees At 30 June 2016, there were 63 persons (full time equivalent), employed by the NSW Deductions Account Office of the Association.

Affiliations & Directorships Detailed below are the affiliations 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 National Secretary-Treasurer is on the Administrative Committee of the Australian Labor Party, NSW Branch.

The NSW Branch Secretary-Treasurer of the Association is 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 financial year The members of the National Executive of the Association at any time during or since the end of the financial year were: Name Experience Position Mr. J. de Bruyn National Executive member since 1978 National President Appointed National President 2014 Mr. I. Blandthorn National Executive member since 1986 National Assistant Secretary Appointed National Assistant Secretary 1986 Mr. M. Donovan National Executive member since 1996 National Vice President Appointed National Vice President 2014 Mr. G. Dwyer National Executive member since 2005 National Secretary-Treasurer Appointed National Secretary-Treasurer 2014 Mr. P. Griffin National Executive member since 1990 Member of Committee Mr. P. O’Keeffe National Executive member since 2014 Member of Committee Mr. C. Gazenbeek National Executive member since 2014 Member of Committee Mr. P. Malinauskas National Executive member since 2008 Member of Committee (Resigned 31 December 2015) Ms. B. Nebart National Executive member since 2004 Member of Committee Mr. B. Smith National Executive member since 2014 Member of Committee Ms. S. Romeo National Executive member since 9 May 2016 Member of Committee The Association maintained its rules and reported according to statutory requirements.

Bernie Smith Gerard Dwyer Committee of Management Committee of Management Dated at Sydney this 18th day of August 2016

COMMITTEE OF MANAGEMENT STATEMENT FOR THE YEAR ENDED 30 JUNE 2016 On 18 August 2016 the Committee of Management of Shop, Distributive and Allied Employees’ Association NSW Deductions Account Office passed the following resolution in relation to the general purpose financial report (GPFR) for the year ended 30 June 2016: The Committee of Management declares that in its opinion: a) The financial statements and notes comply with the Australian Accounting Standards; b) The financial statements and notes comply with the reporting guidelines of the General Manager; c) The financial statements and notes give a true and fair view of the financial performance, financial position and cash flows of the reporting unit for the financial 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 financial 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 financial 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 financial records of the reporting unit have been kept and maintained in accordance with the RO Act 2009; and iv) Where the organisation consists of two or more reporting units, the financial 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 2009 has been provided to the member or General Manager; and vi) Where any orders for inspection of financial records have been made by the Fair Work Commission under section 273 of the RO Act 2009, 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 officer: Bernie Smith, Secretary-Treasurer Dated: 18 August 2016

STATEMENT OF COMPREHENSIVE INCOME FOR THE YEAR ENDED 30 JUNE 2016 Revenue Membership subscription Capitation fees Levies Interest Rental revenue Other revenue Total revenue Other income Grants and/or donations Share of net profit from associate Net gains from sale of assets Total other income Total income Expenses Employee expenses Capitation fees Affiliation fees Administration expenses Grants or donations Depreciation and amortisation Legal costs Audit fees Other expenses Total expenses Profit (loss) for the year Other comprehensive income Items that will not be subsequently reclassified to profit 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

2016 $

2015 $

3A 3B 3C 3D

17,458,125 239,396 1,105,772 21,294 18,824,587

16,398,906 244,743 998,657 33,603 17,675,909

3E 6E 3F

62,098 62,098 18,886,685

93,490 93,490 17,769,399

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

7,500,304 9,844,592 15,607 816,790 206,204 50,500 18,433,997 452,688

7,426,570 9,515,672 20,356 750,459 92,677 49,000 17,854,734 (85,335)

452,688

1,168,050 1,082,715

STATEMENT OF FINANCIAL POSITION AS AT 30 JUNE 2016 ASSETS Current Assets Cash and cash equivalents Trade and other receivables Other current assets Total current assets Non-Current Assets Land and buildings Plant and equipment Investment Property Other investments Other non-current assets Total non-current assets Total Assets LIABILITIES Current liabilities Trade payables Other payables Employee provisions Total current liabilities Non-Current Liabilities Employee provisions Other non-current liabilities Total non-current liabilities Total Liabilities Net assets EQUITY General funds Retained earnings (accumulated deficit) Total equity The above statement should be read in conjunction with the notes.

Note

2016 $

2015 $

5A 5B 5C

10,320,915 1,166,462 96,859 11,584,236

9,113,163 717,009 97,545 9,927,717

6A 6B 6C 6D 6E

9,722,805 1,272,083 18,123,673 100,525 29,219,086 40,803,322

9,973,347 1,600,341 18,581,595 106,928 30,262,211 40,189,928

7A 7B 8A

554,839 (15,596) 2,445,838 2,985,081

629,662 (41,906) 2,240,483 2,828,239

8A 9A

29,982 29,982 3,015,063 37,788,259

26,118 26,118 2,854,357 37,335,571

10A

5,683,423 32,104,836 37,788,259

5,683,423 31,652,148 37,335,571

STATEMENT OF CHANGES IN EQUITY FOR THE YEAR ENDED 30 JUNE 2016 Note

General Funds $ 4,515,373 1,168,050 5,683,423

Retained Earnings $ 31,737,483 (85,335) 31,652,148

Total Equity $ 36,252,856 (85,335) 1,168,050 37,335,571

Adjustment for errors Adjustment for changes in accounting policies Profit for the year Other comprehensive income for the year Transfer to/from Asset Revaluation Reserve 10A Transfer from retained earnings 5,683,423 Closing balance at 30 June 2016 The above statement should be read in conjunction with the notes.

452,688 32,104,836

452,688 37,788,259

Balance at 1 July 2014 Adjustment for errors Adjustment for changes in accounting policies Profit for the year Other comprehensive income for the year Transfer to/from Asset Revaluation Reserve Transfer from retained earnings Closing balance at 30 June 2015

PAGE 34 I SPRING 2016 I SDA FINANCIAL REPORTS

10A

CASH FLOWS STATEMENT FOR THE YEAR ENDED 30 JUNE 2016 OPERATING ACTIVITIES Cash received Receipts from other reporting units/controlled entity(s) Interest Other Cash used Employees Suppliers Payment from 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) financing activities Net increase/(decrease) in cash held Cash & cash equivalents at beginning of the financial year Cash & cash equivalents at end of the financial year The above statement should be read in conjunction with the notes.

Note

2016 $

2015 $

11B

8,973 239,396 18,133,853

67,346 244,743 18,031,956

(7,291,086) (5,795,774) (4,369,640) 925,722

(7,407,887) (6,413,011) (3,944,305) 578,842

76,282 457,922

262,912 458,740

(252,174) 282,030

(924,137) (95,455) (297,940)

-

-

1,207,752 9,113,163 10,320,915

280,902 8,832,261 9,113,163

11B 11A

1.10

1.11

5

1.12 1.13

RECOVERY OF WAGES ACTIVITY FOR THE YEAR ENDED 30 JUNE 2016 Note 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

2016 $

2015 $

-

-

-

-

-

-

-

-

-

-

-

-

1.14

1.15 1.16

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2016 NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES 1.1 Basis of preparation of the financial statements The financial statements are general purpose financial 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 financial statements, the Shop, Distributive and Allied Employees’ Association NSW Deductions Account Office is a not-for-profit entity.

The financial 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 financial position. The financial statements are presented in Australian dollars.

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

1.3 Significant accounting judgements and estimates The Committee of Management evaluate estimates and judgments incorporated into the financial 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 financial year.

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

1.6 Investment in associates and joint arrangement An associate is an entity over which the Association has significant influence and that is neither a subsidiary nor an interest in a joint venture. Significant influence is the power to participate in the financial 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.

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

1.8 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.

1.9 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 benefits associated with the transaction will flow to the entity.

1.17

1.18

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.

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

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

Specifically, government grants whose primary condition is that the Shop, Distributive and Allied Employees’ Association NSW Deductions Account Office should purchase, construct otherwise acquire non-current assets are recognised as deferred revenue in the statement of financial position and transferred to profit 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 financial support to the Shop, Distributive and Allied Employees’ Association NSW Deductions Account Office with no future related costs are recognised in profit or loss in the period in which they become receivable.

Gains Sale of assets Gains and losses from disposal of assets are recognised when control of the asset has passed to the buyer.

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

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

Liabilities for short-term employee benefits (as defined in AASB 119 Employee Benefits) and termination benefits 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 benefits which are expected to be settled beyond twelve months are measured as the present value of the estimated future cash outflows to be made by the reporting unit in respect of services provided by employees up to reporting date.

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

Provision is made for separation and redundancy benefit 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.

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

Where an asset is acquired by means of a finance 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 benefits 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.

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

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 insignificant risk of changes in value and bank overdrafts. Bank overdrafts are shown within short-term borrowings in current liabilities on the consolidated statement of financial position.

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

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

Financial assets Financial assets are classified into the following specified categories: financial assets at fair value through profit or loss, held-to-maturity investments, available-for-sale financial assets and loans and receivables. The classification depends on the nature and purpose of the financial assets and is determined at the time of initial recognition.

All regular way purchases or sales of financial assets are recognised and derecognised upon trade date basis.

Regular way purchases or sales are purchases or sales of financial assets that require delivery of assets within the time frame established by regulation or convention in the marketplace.

Fair value through profit or loss Financial assets are classified as at fair value through profit or loss when the financial asset is either held for trading or it is designated as at fair value through profit or loss.

A financial asset is classified 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 identified financial instruments that the reporting unit manages together and has a recent actual pattern of short-term profit-taking; or • it is a derivative that is not designated and effective as a hedging instrument.

A financial asset other than a financial asset held for trading may be designated as at fair value through profit or loss upon initial recognition if: • such designation eliminates or significantly reduces a measurement or recognition inconsistency that would otherwise arise; or • the financial asset forms part of a group of financial assets or financial 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 profit or loss.

Financial assets at fair value through profit or loss are stated at fair value, with any gains or losses arising on remeasurement recognised in profit or loss. The net gain or loss recognised in profit or loss incorporates any dividend or interest earned on the financial 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 fixed or determinable payments and fixed maturity dates that the reporting unit has the positive intent and ability to hold to maturity are classified 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 fixed or determinable payments that are not quoted in an active market are classified 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.

SDA FINANCIAL REPORTS I SPRING 2016 I PAGE 35

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 financial 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 financial assets that are recognised at fair value through profit or loss. . Impairment of financial assets Financial assets, other than those at fair value through profit 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 financial asset, the estimated future cash flows of the investment have been affected.

For certain categories of financial 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 financial 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 flows, discounted at the financial asset’s original effective interest rate.

For financial 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 flows discounted at the current market rate of return for a similar financial asset. Such impairment loss will not be reversed in subsequent periods.

The carrying amount of the financial asset is reduced by the impairment loss directly for all financial 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 profit or loss.

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

For financial 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 profit 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 profit or loss are not reversed through profit 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 profit 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 financial assets The reporting unit derecognises a financial asset only when the contractual rights to the cash flows from the asset expire, or when it transfers the financial asset and substantially all the risks and rewards of ownership of the asset to another entity. The difference between the asset’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 profit or loss.

1.19 Financial liabilities Financial liabilities are classified as either financial liabilities ‘at fair value through profit or loss’ or other financial liabilities. Financial liabilities are recognised and derecognised upon ‘trade date’.

Fair value through profit or loss Financial liabilities are classified as at fair value through profit or loss when the financial liability is either held for trading or it is designated as at fair value through profit or loss.

A financial liability is classified 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 identified financial instruments that the reporting unit manages together and has a recent actual pattern of short-term profit-taking; or • it is a derivative that is not designated and effective as a hedging instrument.

A financial liability other than a financial liability held for trading may be designated as at fair value through profit or loss upon initial recognition if: • such designation eliminates or significantly reduces a measurement or recognition inconsistency that would otherwise arise; or • the financial liability forms part of a group of financial assets or financial 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 profit or loss.

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

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

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

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

1.20 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.

1.21 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 sufficient 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/deficit. Revaluation decrements for a class of assets are recognised directly in the profit 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: 2016 2015 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 benefits 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 profit and loss.

1.22 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 profit 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 benefits 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 profit or loss in the period in which the property is derecognised.

1.23 Impairment for non-financial 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 flows expected to be derived from the asset. Where the future economic benefit of an asset is not primarily dependent on the asset’s ability to generate future cash flows, 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.

1.24 Non-current assets held for sale Non-current assets are classified 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 classification.

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

1.25 Taxation Shop, Distributive and Allied Employees’ Association NSW Deductions Account Office is exempt from income tax under section 50.1 of the Income Tax Assessment Act 1997 however still has obligation for Fringe Benefits 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 Office; 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 flows are included in the cash flow statement on a gross basis. The GST component of cash flows arising from investing and financing activities which is recoverable from, or payable to, the Australian Taxation Office is classified within operating cash flows.

1.26 Fair value measurement Shop, Distributive and Allied Employees’ Association NSW Deductions Account Office measures financial instruments, such as, financial asset as at fair value through the profit and loss, available for sale financial assets, and non-financial assets such as land and buildings and investment properties, at fair value at each balance sheet date. Also, fair values of financial 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-financial asset takes into account a market participant’s ability to generate economic benefits 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 Office uses valuation techniques that are appropriate in the circumstances and for which sufficient 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 financial statements are categorised within the fair value hierarchy, described as follows, based on the lowest level input that is significant 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 significant to the fair value measurement is directly or indirectly observable • Level 3 — Valuation techniques for which the lowest level input that is significant to the fair value measurement is unobservable For assets and liabilities that are recognised in the financial statements on a recurring basis, the Shop, Distributive and Allied Employees’ Association NSW Deductions Account Office determines whether transfers have occurred between Levels in the hierarchy by re-assessing categorisation (based on the lowest level input that is significant to the fair value measurement as a whole) at the end of each reporting period.

External valuers are involved for valuation of significant 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 Office 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.

1.27 Going concern Shop, Distributive and Allied Employees’ Association NSW Deductions Account Office has not received financial support from another reporting unit.

Shop, Distributive and Allied Employees’ Association NSW Deductions Account Office does not provide financial support to any other reporting unit.

Shop, Distributive and Allied Employees’ Association NSW Deductions Account Office’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 2016, and/or prior to the signing of the financial statements, that would affect the ongoing structure and financial activities of Shop, Distributive and Allied Employees’ Association NSW Deductions Account Office.

2016 $ 2015 $ 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

PAGE 36 I SPRING 2016 I SDA FINANCIAL REPORTS

-

-

-

-

239,396 239,396

244,743 244,743

1,105,772 1,105,772

998,657 998,657

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 NOTE 4: EXPENSES NOTE 4A: EMPLOYEE EXPENSES Holders of office: Wages and salaries Superannuation Leave and other entitlements Separation and redundancies Other employee expenses Subtotal employee expenses holders of office Employees other than office holders: Wages and salaries Superannuation Leave and other entitlements Separation and redundancies Other employee expenses Subtotal employee expenses employees other than office holders Total employee expenses NOTE 4B: CAPITATION FEES Capitation fees Total capitation fees NOTE 4C: AFFILIATION FEES Affiliation fees Total affiliation fees/subscriptions NOTE 4D: ADMINISTRATION EXPENSES Consideration paid to employers for payroll deductions Compulsory Levies Fees/Allowances – meeting and conferences Conference and meeting expenses Accommodation and travel expenses Contractors/consultants Occupancy expenses Printing, postage and stationery Telephone expenses Insurance expenses Motor Vehicle expenses NSW Branch expenses Other Subtotal administration expenses Operating lease rental Minimum lease payments Total administration expenses 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 Total paid that exceeded $1,000 Total grants or donations NOTE 4F: DEPRECIATION AND AMORTISATION Depreciation Land & Building Property, plant & equipment Total depreciation Amortisation Intangible Total amortisation Total depreciation and amortisation NOTE 4G: LEGAL COSTS Litigation Other legal matters Total legal costs 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 Cash on hand Short term deposits Other Total cash and cash equivalents NOTE 5B: TRADE AND OTHER RECEIVABLES Receivables from other reporting unit(s) Total receivables from other reporting unit(s) Less provision for doubtful debts Total provision for doubtful debts Receivable from other reporting unit(s) net Other receivables GST receivable from the Australian Taxation Office Other trade receivables Total other receivables Total trade and other receivables (net) NOTE 5C: OTHER CURRENT ASSETS Prepayment Total other current assets NOTE 6: NON-CURRENT ASSETS NOTE 6A: LAND & BUILDINGS Land and buildings: Fair value Accumulated depreciation Total land and buildings Reconciliation of the opening and closing balances of land and buildings As at 1 July Gross book value Accumulated depreciation and impairment Net book value 1 July Additions: By purchase From acquisition of entities (including restructuring) Revaluations Impairments Depreciation expenses Other movement Disposals: From disposal of entities (including restructuring) Other

2016 $ -

2015 $ -

62,098 62,098

93,490 93,490

271,981 75,205 23,067 36,685 406,938

302,194 61,687 (65,399) 36,502 334,984

5,210,349 533,595 704,990 644,432 7,093,366 7,500,304

5,208,464 547,919 705,686 629,517 7,091,586 7,426,570

-

-

-

-

1,550,699 65,149 192,863 414,688 1,018,716 235,163 169,401 628,017 430,992 4,304,439 477,325 9,487,452

1,452,498 76,712 153,165 450,449 1,046,955 209,447 163,782 715,873 479,033 3,886,674 617,266 9,251,854

357,140 9,844,592

263,818 9,515,672

-

-

4,099 11,508 15,607

7,680 12,676 20,356

250,542 566,248 816,790

236,607 513,852 750,459

816,790

750,459

1,445 204,759 206,204

508 92,169 92,677

-

-

872,481 1,450 9,446,984 10,320,915

1,254,014 1,450 7,857,699 9,113,163

-

-

1,166,462 1,166,462 1,166,462

717,009 717,009 717,009

96,859 96,859

97,545 97,545

9,994,305 (271,500) 9,722,805

9,994,305 (20,958) 9,973,347

9,994,305 (20,958) 9,973,347

9,377,750 (431,300) 8,946,450

-

95,455

-

521,100

(250,542)

410,342 -

2016 $ 2015 $ Net book value 30 June 9,722,805 9,973,347 Net book value as of 30 June represented by: Gross book value 9,994,305 9,994,305 Accumulated depreciation and impairment (271,500) (20,958) Net book value 30 June 9,722,805 9,973,347 Fair value of the properties was determined by using direct comparison on a rate per square metre of lettable area supported by the capitalisation of net income method. This means that it utilises sales that have been analysed on a rate /m2 of strata area basis and compares the equivalent rates to the subject to establish the property’s current market value. As at the date of revaluation 30 June 2015, the properties’ fair values are based on valuations performed by Mark Willers of LandMark White, an accredited independent valuer with a recognised professional qualification in Australian Property Institute and with recent experience in the location and category of the investment property being valued.

A significant increase (decrease) in estimated price per square metre in isolation would result in a significantly higher (lower) fair value.

NOTE 6B: PLANT AND EQUIPMENT Plant and equipment At cost 3,781,152 3,890,125 (2,509,069) (2,289,784) Accumulated depreciation 1,272,083 1,600,341 Total plant and equipment Reconciliation of the opening and closing balances of plant and equipment As at 1 July Gross book value 3,890,125 3,647,509 Accumulated depreciation and impairment (2,289,784) (2,288,031) Net book value 1 July 1,600,341 1,359,478 Additions: By purchase 252,174 938,682 From acquisition of entities (including restructuring) Impairments Depreciation expenses (561,969) (509,377) Other movement Disposals: From disposal of entities (including restructuring) Other (18,463) (188,442) Net book value 30 June 1,272,083 1,600,341 Net book value as of 30 June represented by: Gross book value 3,781,152 3,890,125 Accumulated depreciation and impairment (2,509,069) (2,289,784) Net book value 30 June 1,272,083 1,600,341 NOTE 6C: INVESTMENT PROPERTY Property Opening balance as at 1 July 16,102,000 16,102,000 Additions – at cost Net gain from fair value adjustment 16,102,000 16,102,000 Closing balance as at 30 June Lease Incentives Opening balance as at 1 July 4,579,223 4,579,223 Additions – at cost (2,557,550) (2,099,628) Amortisation of lease incentives 2,021,673 2,479,595 Closing balance as at 30 June Total Investment property 18,123,673 18,581,595 Rental income earned and received from the investment properties during the year was $1,556,090 (2015: $1,382,104).

Direct expenses incurred in relation to the investment properties that generated rental income during the year was $544,848 (2015: $553,343). 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 Mark Willers of LandMark White, using recognised valuation techniques. These techniques comprise of the Discounted Cash Flow (DCF) method, direct comparison method and Income Capitalisation method.

Under the DCF method, a property’s fair value is estimated using explicit assumptions regarding the benefits 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 flows 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).

The fair value of the investment property is included within level 2.

NOTE 6D: OTHER INVESTMENTS 2016 $ 2015 $ Deposits Other Total other investments NOTE 6E: OTHER NON-CURRENT ASSETS Prepayments 100,525 106,928 Other 100,525 106,928 Total other non-financial assets NOTE 7: CURRENT LIABILITIES NOTE 7A: TRADE PAYABLES Trade creditors and accruals 554,839 629,662 Operating lease rentals 554,839 629,662 Subtotal trade creditors Payables to other reporting unit(s) Subtotal payables to other reporting unit(s) 554,839 629,662 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 (15,596) (41,906) Other (15,596) (41,906) Total other payables Total other payables are expected to be settled in: No more than 12 months (15,596) (41,906) More than 12 months Total other payables (15,596) (41,906) NOTE 8: PROVISIONS NOTE 8A: EMPLOYEE PROVISIONS Office holders: Annual leave 63,301 49,258 Long service leave 145,275 131,640 Separation and redundancies Other 208,576 180,898 Subtotal employee provisions - office holders Employees other than office holders: Annual leave 841,046 794,033 Long service leave 1,426,198 1,291,670 Separation and redundancies Other 2016 $ 2015 $ 2,267,244 2,085,703 Subtotal employee provisions - employees other than office holders Table continued on next page

-

SDA FINANCIAL REPORTS I SPRING 2016 I PAGE 37

Table continued from previous page Annual leave 904,348 843,291 1,571,472 1,423,310 Long service leave 2,475,820 2,266,601 Total employee provisions Current 2,445,838 2,240,483 29,982 26,118 Non Current 2,475,820 2,266,601 Total employee provisions NOTE 9 NON-CURRENT LIABILITIES NOTE 9A: OTHER NON-CURRENT LIABILITIES Total other non-current liabilities NOTE 10: EQUITY NOTE 10A: GENERAL FUNDS Asset Revaluation Reserves Balance as at start of year 5,683,423 4,515,373 Transferred to reserve 1,168,050 Transferred out of reserves 5,683,423 5,683,423 Balance as at end of year 5,683,423 5,683,423 Total Reserves 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 flow statement 10,320,915 9,113,163 Balance sheet 10,320,915 9,113,163 Difference Reconciliation of profit/(deficit) to net cash from operating activities: Profit/(deficit) for the year 452,688 (85,335) Adjustments for non-cash items Amortisation Depreciation 816,790 750,459 (Profit)/loss on sale of fixed assets (62,098) (93,490) Changes in assets/liabilities (Increase)/decrease in net receivables (449,453) (17,333) (Increase)/decrease in prepayments 7,089 685,469 Increase/(decrease) in supplier payables (48,512) (679,611) Increase/(decrease) in other payables Increase/(decrease) in employee provisions 209,218 18,683 Increase/(decrease) in other provisions 925,722 578,842 Net cash from (used by) operating activities NOTE 11B: CASH FLOW INFORMATION Cash inflows Shop, Distributive & Allied Employees’ Association NSW Branch Shop Distributive & Allied Employees’ Association National Office 8,973 67,346 Total cash inflows 18,916,426 19,065,697 Cash outflows Shop, Distributive & Allied Employees’ Association NSW Branch 4,304,439 3,886,674 65,201 57,631 Shop Distributive & Allied Employees’ Association National Office 17,708,674 18,784,795 Total cash outflows 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 financial statements.

Future minimum rentals payable under non-cancellable operating leases as at 30 June are as follows: Within one year 305,872 360,910 After one year but not more than five years 644,244 806,573 More than five years Closing balance as at 30 June 950,116 1,167,483 The operating leases (property, plant, equipment and a membership hosting system) are non-cancellable with a five year term, with rent payable quarterly or monthly in advance. The leases provide a right of renewal at which time all terms are renegotiated.

Operating lease commitments – as lessor The association leases out its investment properties under operating leases (see note 6C). The future minimum lease income under non-cancellable leases are as follows: Less than one year 1,295,305 1,018,823 Between one and five years 3,287,966 3,904,543 More than five years 388,812 During the year, $1,105,772 was recognised as rental income in profit or loss (2015: $998,657).

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 the Shop, Distributive and Allied Employees’ Association National Office includes the following: Reimbursements – Publication expenses 4,750 Reimbursements – Delegate expenses & other airfares 4,154 882 Reimbursements – Other 69 4,496 Reimbursements – National Council meeting expense 39,250 Reimbursements – Motor vehicle costs 22,718 Expenses paid to Shop, Distributive and Allied Employees’ Association NSW Branch includes the following: Shop, Distributive and Allied NSW Branch Expenses 4,304,439 3,886,674 Expenses paid to the Shop, Distributive and Allied Employees’ Association National Office includes the following: 100% Pay week of Action campaign 17,933 19,340 Intranet service costs 28,942 30,273 Other 18,326 8,018 Expenses paid to the Australian Labor Party includes the following: Donated to NSW Labor Party 2015 State Election 3,255 Expenses paid to Unions ACT: Donated to Unions ACT – Campaign fund account 818 NOTE 13B: KEY MANAGEMENT PERSONNEL REMUNERATION FOR THE REPORTING PERIOD Key Management Personnel Bernie Smith Robert Tonkli Corrine Boyle Total Remuneration for 2016 Secretary Assistant Information Secretary Officer $ $ $ $ Short-term employee benefits Salary (including annual leave taken) 112,090 102,402 64,718 279,210 Honorarium Annual leave accrued 5,581 5,719 641 11,941 14,320 17,115 5,249 36,684 Non-monetary (motor vehicle and parking) 131,991 125,236 70,609 327,835 Total short-term employee benefits Post-employment benefits: 24,190 22,377 28,638 75,205 Superannuation Total post-employment benefits 24,190 22,377 28,638 75,205 Other long-term benefits: 4,607 3,796 2,723 11,126 Long-service leave 4,607 3,796 2,723 11,126 Total other long-term benefits 160,788 151,409 101,970 414,166 Total

Key Management Personnel Remuneration for 2015

Short-term employee benefits Salary (including annual leave taken) Honorarium Annual leave accrued Non-monetary (motor vehicle and parking) Total short-term employee benefits Post-employment benefits: Superannuation Total post-employment benefits Other long-term benefits: Long-service leave Total other long-term benefits Total

Gerard Dwyer Bernie Smith SecretarySecretaryTreasurer Treasurer (Resigned) $ $

Robert Tonkli Corrine Boyle Assistant Information Secretary Officer

Total

$

$

$

109,855 6,581 12,441

102,913 1,785 14,740

77,560 3,779

302,194 8,366 36,503

17,409

128,877

119,438

81,339

347,063

3,397 3,397

23,508 23,508

19,447 19,447

15,334 15,334

61,686 61,686

20,806

7,892 7,892 160,277

4,373 4,373 143,258

2,260 2,260 98,933

14,525 14,525 423,274

11,866 5,543

NOTE 14: REMUNERATION OF AUDITORS Value of the services provided 2016 $ 2015 $ Grech Smith Bridle Financial statement audit services 50,500 49,000 Other services 50,500 49,000 Total remuneration of auditors No other services were provided by the auditors of the financial statements.

NOTE 15: FINANCIAL INSTRUMENTS The Association’s financial instruments consist primarily of deposits with banks, short term investments, accounts receivable and accounts payable. The totals for each category of financial 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 flows through minimising exposure to financial markets. The association currently does not hold any long term financial instruments. The Association does not actively engage in the trading of financial 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 financial loss to the Association if a counterparty to a financial instrument fails to meet its contractual obligations, and arises primarily from the Association’s receivables and other financial assets. i) Receivables The Association’s exposure to credit risk is influenced 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 significant 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 difficulty in meeting the obligations associated with its financial liabilities that are settled by delivering cash or another financial asset. The Association manages liquidity risk by monitoring forecast cash flows 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 Association’s income or the value of its holdings of financial 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 fixed rates for 90 day terms. Term deposits mature at regular intervals to smooth fluctuations 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, specifically those relating to financial instruments, the Association’s policy is to maintain a strong capital base so as to sustain member, creditor and market confidence and to sustain future development of the union’s activities. The committee of management monitors the return on capital and seeks to maintain a conservative position. There were no changes in the Association’s approach to capital management during the year.

NOTE 15A: CATEGORIES OF FINANCIAL INSTRUMENTS Financial assets 2016 $ 2015 $ Fair value through profit or loss: Total Held-to-maturity investments: Total Loans and receivables: Trade and other receivables 1,166,462 717,009 Total 1,166,462 717,009 Available-for-sale assets: Cash and cash equivalents 10,320,915 9,113,163 Total 10,320,915 9,113,163 Carrying amount of financial assets 11,487,377 9,830,172 Financial Liabilities Other financial liabilities: Trade and other payables 539,243 587,755 Total 539,243 587,755 Carrying amount of financial liabilities 539,243 587,755 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 239,396 244,743 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 239,396 244,743 Fair value through profit and loss: Held for trading: Change in fair value Interest revenue Table continued on next page

PAGE 38 I SPRING 2016 I SDA FINANCIAL REPORTS

Table continued from previous page 2016 $ 2015 $ Dividend revenue Exchange gains/(loss) Total held for trading Designated as fair value through profit and loss: Change in fair value Interest revenue Dividend revenue Exchange gains/(loss) Total designated as fair value through profit and loss Net gain/(loss) at fair value through profit and loss Net gain/(loss) from financial assets 239,396 244,743 All financial assets and liabilities are deemed to be at fair value.

The net income/expense from financial assets not at fair value from profit and loss is $0 (2015: $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) financial liabilities – at amortised cost Fair value through profit and loss Held for trading: Change in fair value Interest expense Exchange gains/(loss) Total held for trading Designated as fair value through profit and loss: Change in fair value Interest expense Total designated as fair value through profit and loss Net gain/(loss) at fair value through profit and loss The net income/expense from financial liabilities not at fair value from profit and loss is $0. (2015:$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 10,320,915 9,113,163 Receivables 1,166,462 717,009 Total 11,487,377 9,830,172 Financial liabilities Payables 539,243 587,755 Total 539,243 587,755 In relation to the entity’s gross credit risk the following collateral is held: nil Credit quality of financial 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 2016 2016 2015 2015 $ $ $ $ Cash and cash equivalents 10,320,915 9,113,163 1,166,462 717,009 Receivables 11,487,377 9,830,172 Total Ageing of financial assets that were past due but not impaired for 2016 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 financial 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 2016 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 financial assets that were past due but not impaired for 2015 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 financial 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 2016 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 flows and ensuring that adequate cash facilities are maintained. The Association assess the liquidity risk as minimal as it holds sufficient financial assets to cover the expected contractual outflows.

Contractual maturities for financial liabilities 2016 On Demand < 1 year 1-2 years 2-5 years > 5 years Total $ $ $ $ $ $ 539,243 539,243 Trade payables 539,243 539,243 Total Maturities for financial liabilities 2015 On Demand < 1 year 1-2 years 2-5 years > 5 years Total $ $ $ $ $ $ Trade payables 587,755 587,755 587,755 587,755 Total NOTE 15F: MARKET RISK Interest Rate Risk Interest rate risk is managed with a mixture of fixed and floating rate cash balances. At 30 June 2016 approximately 85.26% of the Association’s cash balance is fixed.

The fixed rate instruments consist of 30 & 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 profit 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 2015.

Sensitivity analysis of the risk that the entity is exposed to for 2016 Risk Change in Effect on Effect on variable risk variable Profit and Loss Equity % $ $ Interest rate risk Increase 1.0% 94,470 94,470 Interest rate risk Decrease -1.0% (94,470) (94,470) Sensitivity analysis of the risk that the entity is exposed to for 2015 Risk Change in Effect on Effect on variable risk variable Profit and Loss Equity % $ $ Interest rate risk Increase 1.0% 78,577 78,577 Interest rate risk Decrease -1.0% (78,577) (78,577) Price Risk The Association is not exposed to any price risk.

Foreign Currency Risk The Association is not exposed to fluctuations 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 financial 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 flow method. The discount rate used reflects the issuer’s borrowing rate as at the end of the reporting period. The own performance risk as at 30 June 2016 was assessed to be insignificant.

Fair value of available-for-sale financial assets is derived from quoted market prices in active markets.

Long-term fixed-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 2016 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 financial 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 Office financial assets and liabilities: Carrying Fair Carrying Fair Amount Value Amount Value 2016 2016 2015 2015 $ $ $ $ Financial assets: Cash and cash equivalents 10,320,915 10,320,915 9,113,163 9,113,163 Trade and other receivables 1,166,462 1,166,462 717,009 717,009 Total 11,487,377 11,487,377 9,830,172 9,830,172 Financial liabilities: Trade and other payables 539,243 539,243 587,755 587,755 Total 539,243 539,243 587,755 587,755 NOTE 16B: FAIR VALUE HIERARCHY The following table provides an analysis of financial and non financial assets and liabilities that are measured at fair value, by fair value hierarchy.

Fair value hierarchy 30 June 2016 Date Level 1 Level 2 Level 3 of valuation $ $ $ Assets measured at fair value Non-financial assets Land & Building 30 June 2015 9,722,805 Investment Property (see note 16C) 30 June 2014 16,102,000 Total 25,824,805 Liabilities measured at fair value Total Fair value hierarchy 30 June 2015 Date of valuation

Level 1 $

Level 2 $

Level 3 $

Assets measured at fair value Non-financial assets Land & Building 30 June 2015 9,973,347 Investment Property (see note 16C) 30 June 2014 16,102,000 Total 26,075,347 Liabilities measured at fair value Total NOTE 16C: FAIR VALUE HIERARCHY Total amount disclosed in 2015 financial report was $18,581,595. This comprised of investment property at fair value $16,102,000 and carrying amount of lease incentive $2,479,595.

In 2016 the fair value of investment property was $16,102,000 and carrying amount of lease incentive was $2,021,673 giving a total of $18,123,673.

No revaluations took place in year 2016.

NOTE 17: BUSINESS COMBINATIONS The reporting unit has not acquired an asset or a liability during the financial year as a result of: a) an amalgamation under Part 2 of Chapter 3, of the RO Act 2009 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 2009 of an alternative reporting structure for the organisation; or d) revocation by the General Manager under subsection 249(1) of the RO Act 2009 of a certificate 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 specified 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).

SDA FINANCIAL REPORTS I SPRING 2016 I PAGE 39

LUNA PARK FAMILY DAY

28 August 2016

16061