F.A.T.mag

New rules around salary packaging

Katrina — Mon, 23 May 2016 00:13:48 +0000

Providing non-cash benefits to your employees can leave you with a steep tax bill. Here’s what you need to know about new changes to fringe benefits tax.

New changes to fringe benefits tax (FBT) legislation from 1 April 2016 have thrown many trade businesses into a tax-time tailspin. But making sense of the new rules doesn’t have to be mission impossible.

Principal among the changes are new exemptions on providing portable electronic devices to your employees, a new cap on meal and entertainment exemptions, and renewed focus on the private use of cars and the payment of living away from home allowances.

“FBT will apply if you give an employee or associate a benefit that isn’t in cash,” explains Alexander Gallimore, law clerk at Butlers Business and Law. “This includes things like meal entertainment, paying for accommodation, or providing a car or electronic device.”

And it pays to keep a close eye on your FBT liabilities, with rate hikes also kicking in from 1 April this year. “The actual FBT rate has changed this year too,” says David McKellar, director of Allied Business Accountants. “It’s based on the top marginal rate, so it has gone up two per cent—from 47 to 49 per cent—to reflect the new budget repair levy.”

Employee or contractor?
FBT generally only applies to employees, not contractors. However, the Australian Taxation Office (ATO) will look closely at your employment arrangements to assess exactly how contractors are utilised in your business.

“The ATO will look at how much control the principal has over the contractor,” explains Gallimore.
“That is, do you hold them out as a representative of your organisation, or are they truly independent? Are they exclusively working for you?

“If you dictate exactly how the contractor should achieve a job, then that’s more a hallmark of an employment relationship. But if the contractor just turns up to work on that one job, and their pay is calculated on finishing that one job and nothing else, then that’s more a hallmark of a contractor relationship and they’ll likely be exempt from FBT.”

Portable electronic devices
An important change to FBT rules involves the provision of portable electronic devices—such as smart phones, tablets and laptops—to employees. Previously, small businesses could provide a single portable electronic device without incurring FBT. However, that exemption has now been extended to two portable devices.

“And that stands even where those devices are of a similar nature,” says Gallimore. “So you could provide two smart phones to an employee without incurring an FBT liability.

“Even though your employee may only use one smart phone, the FBT rules extend to associates of employees, such as a spouse or child,” says Gallimore. “So it might be the case that you can pick up a second FBT-exempt phone, laptop or tablet for an associate of the employee without any additional cost. That could be a good incentive to bundle into their salary.”

Meal and entertainment benefits

You’ll also need to pay FBT on any meal or entertainment benefits you provide to employees as a reward, or as part of entertaining clients.

New rules have capped exempt meal or entertainment benefits to $5,000 per year. This won’t necessarily affect trade businesses, however the new exemption cap does extend to trade unions.

“The only time it may need to be taken into consideration is that FBT- exempt entities do extend to trade unions,” explains Gallimore.

“Keep a clear record of everything you’ve spent on meal entertainment for your employees and non-employees because that will be useful in determining what proportion relates to employees and what proportion doesn’t, which can potentially bring your FBT liability down.”

Cars for private use
If you make a car available for the private use of an employee, you’ll likely be required to pay FBT on the usage and value of that car—unless it has a carrying capacity greater than one tonne, in which case it may be exempt from FBT.

Keep in mind that the ATO will consider that a car is available for private use whenever it is not stored at the business premises. And even where the employee doesn’t have permission to the use the car for private use—if they do so—the employer can still be stung for FBT.

“This is something the ATO looks at pretty closely,” says Gallimore. “If a trade business owns a car and makes the car available for the private use of an employee—which can be anything from driving it around on the weekend to travelling from home to work—then the value of that travel and the value of the usage of that car will be considered a fringe benefit.”

“The message to tradies is that any vehicle with a carrying capacity greater than one tonne will continue be exempt from FBT,” says McKellar. “Salary packaging these vehicles can help to reduce employees’ income tax liability.”

Living away from home allowance

Allowances you pay to your employees to cover expenses generated from the need to temporarily live away from their normal place of residence in order to perform their employment duties generally incur FBT.

While there are no new rules in this area, the ATO pays particular attention to the difference between paying your employees a living away from home allowance versus paying for their travel expenses.

“There’s always a distinction between an employer reimbursing an employee for their travel, and money that is paid to compensate an employee for living away from home in connection with their job,” explains Gallimore.

“Travel expenses are generally taxed as an expenditure in the employee’s income tax return, however a living away from home allowance is a fringe benefit amount. Understanding the difference really shifts the burden of where that tax liability sits and who has to report it.”

“It depends on whether you’re asking the employee to stay away from home for a defined period to work on a job site, versus doing a bit of ad-hoc travel two or three times a year,” says Gallimore. “It’s always important to characterise those allowances appropriately because the ATO is famous for litigating on that point.”

Lend me your ears

Katrina — Mon, 23 May 2016 00:00:42 +0000

If you work in construction there is a good chance you could suffer serious hearing problems. Here’s how to avoid them.

Construction workers are in one the professions most exposed to serious hearing injury. As an everyday part of their job they are exposed to six times the legal noise level limit. Over 75 per cent of construction workers develop serious hearing and communication problems— and little is being done to seriously address the problem.

How then does a construction worker protect his or herself from such an occupational hazard? In 2015 Safe Work Australia data showed that eight per cent of building site workers are not provided with any noise control measure. That means it’s largely up to the individual to protect their hearing.

The obvious solution is to use either or both earmuffs and earplugs, known to hearing professionals as Personal Protection Equipment (PRE).

Researchers claim that over half the time, hearing protection is improperly worn and so does not provide adequate protection. Taking them off for even an hour a day can lessen their effectiveness by up to a third. Choosing the best form of PPE is largely up to the individual.

Warwick Williams, a Senior Research Engineer with the Department of Health (Office of Hearing services) believes there’s no real distinction between plugs and muffs. “You can get the same amount of protection as long as you use them properly,” he explains. “In fact, with earplugs properly inserted you actually get better attenuation than you do with most earmuffs. But if they’re uncomfortable get something else. If you’re being exposed to loud noise from a ripsaw or something the exposure threshold is reached in a very short time, so you’re better off wearing something you can tolerate.”

On the other hand, if the noises you’re working with are stop-start, earmuffs are probably better for you, so you won’t be removing and re-inserting earplugs all the time and being tempted not to bother. The important thing is to know and be aware of the potential for hearing damage in your environment.

“If you’ve gotta start raising your voice to carry on a conversation, then you really need some kind of hearing protection,” says Williams. “If you think it’s loud then it probably is and something needs to be done about it.”

When it’s too loud on site

Continual exposure to noise levels of over 90decibels, which can be that put out by a lawn mower or an electric drill, can trigger hearing damage. Nail guns or rivet hammers go off at levels of up to 130 dB, and that’s in the extreme danger area. If you’re not wearing ear protection at that point, you’re in trouble.

The injury can come from a one off ‘pulse’, such as an explosion, or the continuous action of machinery.

It doesn’t have to be painful—again, if you have to raise your voice to be heard, you’re probably sustaining damage. That’s when the stereocilia, the tiny hair cells inside your cochlea, are no longer able to detect and send sound signals to the brain.

The biggest problem on site
Research has shown that one of the biggest factors in this problem has been the aversion of workers to wearing hearing protection. Whether it’s seen as an inconvenience or a weakness, construction professionals simply aren’t putting on earmuffs or inserting earplugs, and they’re paying a heavy price for it. Another factor is the perception that your alertness to danger is hampered by ear protection. But the fact is that if you can’t hear well enough to be safe then you’ve already sustained serious damage and it’s only going to get worse without protection. If conditions are dangerously loud, you also need to be talking to your bosses. Engineering solutions can be implemented to manage noise.

Warwick Williams says proper protection will help in this regard too.

“With most good hearing protectors nowadays—and ‘good’ doesn’t mean they have to be expensive—they’ll often let you hear better, because of the way hearing works. Most people on sites will have some high noise hearing damage and if you can bring that high end down into the low noise area with protection you’ll be able to distinguish sounds better, making you safer. If someone is in the room with a rattlegun or something going and you don’t have to be there, don’t be there. PPE is the last cab off the rank for hearing protection.”

What to use
Harry Baume, a PPE specialist from Frontier Safety, a brand that all CSS member stores stock, agrees that the choice of plugs or muffs largely comes down to personal preference.

“Some people don’t like sticking things in their ear canals. Having said that, the scientific consensus seems to be that you get better attenuation from foam earplugs as they seal the ear canal directly, whereas muffs just seal around the periphery of the ear. Earmuffs may be too intrusive when wearing head or eye protection, whereas plugs are on the whole disposable and can be a hygiene risk if overused or dirty. The unit cost of earplugs is much cheaper than an earmuff, but without time and motion detail, it’s difficult to say what’s most cost effective in the long run.”

Certainly he suggests a high quality muff, such as a Beaver MG5 30DB Safety Earmuff, will provide robust protection against high noise use and is a comfortable wear. That’s going to guarantee industrial protection—as long as you keep them on.

However, Baume notes how this is often too little, too late. “Unfortunately, hearing damage and loss creeps up by small increments and most people don’t realise they’re experiencing loss.”

CSS member stores stock the leading brands of hearing protection like Frontier and Beaver brands. With a number of product choices made available to you, together with the right advice, makes your purchase decision a lot easier. Don’t wait until it’s too late, invest in your safety today.

Working Smarter – Room to breathe

Katrina — Sun, 22 May 2016 23:51:24 +0000

We’ve all heard the old adage ‘work smarter not harder’, but working smarter in construction is about more than just getting the job done. It’s about the right tools for your job and making sure you’re protecting yourself and those around you from the work you’re doing. And this issue’s got you covered, read Fatmag’s special reports on how to work smarter to protect your respiratory and hearing systems by having the right gear for the right situation.

While self-preservation in the form of steel capped boots and high-vis jackets is a priority for many tradespeople, the ability to inhale or exhale air free of contaminants remains a more pressing concern.

Construction site workers can bow breathe easier knowing the law is on their side when it comes to the use of respiratory protection devices (RPDs).

Where once most adopted a “devil may care” approach to the use of any type of personal protective equipment (PPEs) on job sites, a tightening of workplace health and safety laws together with increased media exposure to asbestos-related workplace illnesses means workers are spoilt for choice when it comes to selecting the correct breathing protection equipment.

However Peter Cutforth, the director of accredited registered training group Urban Global says workers would be foolish to think it’s a matter of donning a mask or respirator and hoping for the best.

Rather than just affording employees working in compromised environments the chance to breathe uncontaminated air, Cutforth says determining whether to use a RPD is potentially a life or death issue.

“Medical conditions from the inhalation of workplace chemicals or other toxic particles can be extremely serious, both in the short term acute sense, and in the long term chronic scenario. Consequently, the correct use of appropriate PPE can have potentially life saving affects for workers and personnel on construction sites.”

Cutforth says there are a number of workplace scenarios which require the use of RPDs including: for irregular or short duration operations, such as

inspections and maintenance; for jobs where the location continually changes and so fixed engineering controls are not appropriate; where engineering controls have been installed but do not produce the concentration of their contamination to save levels and for entry into confined spaces.

However the choice of which RPD to use will vary depending on what the airborne contaminants are and what health risk they pose, as well as the concentration level of the contaminant.

How do you choose?

Paramount Safety Products director Sam Gurgone says the filters in respiratory devices act as a barrier to potential airborne dangers by trapping them before they can enter the airway.

The greater the potential risk, the greater the level of protection required, he says. “In the Australian and New Zealand market, the two most commonly used disposable respirators protection levels are P1 and P2. P1 will protect you against mechanically generated particles while P2 protects against mechanically generated particles and some thermally generated particles. Half Masks give you the added benefit of filtering a range of gasses and vapours.”

Gurgone says for certain harsh chemicals, vapours or fumes the user may need a full seal around their face including their eyes and as such would require a full-face mask. However the producer of any chemical must produce a Material Safety Data Sheet (MSDS) that states the chemical compound and specifies the level of protection required. In addition, some manufacturers offer disposable respirators—which in PSP’s case are covered in a mesh-like plastic enabling the mask to retain its shape for longer and in turn provide a better fit and seal over extended periods of use—or goggle and respirator combinations which offer a superior fit.

Gurgone says there are a number of things to be wary of when selecting your RPD including ensuring the products are third party certified by organisations such as BSI Benchmark or SAI Global, where applicable.

“This is your guarantee that the products and manufacturing processes are audited at least every 12 months to ensure consistent quality and in turn stated performance levels of the product are maintained. A product that complies with the standard is not good enough as there is no regular follow up like there is for a certified product.”

For its part Safe Work Australia says users should also exercise caution when it comes to the use of PPEs and RPDs, remembering that ongoing supervision is required to ensure the PPE is being used correctly.

Cutforth says it is fair to say that the vast majority of companies involved in the construction site sector take workplace health and safety very seriously as “their reputations, workforces’ safety and livelihoods, and workplace productivity depend on it”.

“Unfortunately, as in any industry, there are a small minority of rogue, or careless operators who look for shortcuts and who do not take the trouble to implement proper processes and procedures to protect their workers and stakeholders.”

Currently an employer’s legal obligations, in relation to respiratory protection, for his or her workers
are similar to those that relate to all workplace health and safety measures on construction sites.

Each state may have specific regulations that need to be adhered to in addition to overarching national legislation. In Victoria, for example, occupational health and safety regulations for hazardous substances, lead, confined spaces and asbestos may apply for respiratory protection.

To this end South Australian consultancy service Health Safety Environment Australia launched what it calls its FitTick certification, aimed at helping ensure clients in the construction sector manage their respiratory compliance issues.

Keith Wilmot, a consultant with FitTick program, says worn and used correctly there is no doubt that respiratory masks help safeguard a workers health—providing they are worn and used correctly. “I have tested masks in a few companies where they issued masks to their employees without first finding out what size they needed only to find that when we come in and conduct fit testing that the masks do not fit correctly.”

Wilmot says best practice for any PPE is to ensure the right fit and fit testing of respirators is mandatory under the Australian Standards AS/NZ 1715:2009 concerned primarily with the selection use and maintenance of respiratory protective equipment.

Testing to ensure that the respirators with a tight fitting face piece provide the adequate seal on the wearers face is the key outcome of the FitTick Program, he says.

Upon completion of testing employees are issued with a plastic FitTick Card that will identify the make, model and size of any PPE they have been tested for. The card can be carried around and presented when requested for entry onto site.

“Employers need to know what their workers are being exposed to so they can provide the correct respirators to protect their employees.

“Most companies provide the equipment required to conduct their daily tasks and more and more are coming to realise the importance of knowing if the respirators fit. Fit testing also gives the opportunity to provide refresher training of how to fit a face mask and what to look for to make sure a correct fit is achieved.”

So if you need to make a purchase of any type of respiratory protection, CSS member stores nationally often stock, or have access to a range of products to meet your needs. Now that you’ve read the advice from the experts, make the right purchase decision either for yourself or your employee.

The Ramset Way

Katrina — Sun, 22 May 2016 23:37:01 +0000

Ramset Fasteners developed a simple idea into a thriving global business on the back of an unshakeable commitment to Australian manufacturing and user-focused innovation.

Ramset Fasteners is a great Australian success story. From humble beginnings in 1952, the company has built a strong reputation within the building and construction industry for developing, manufacturing and supplying leading edge drilling, anchoring and fixing products for more than half a century.

Today, Ramset is one of more than 100 companies that make up global conglomerate, Illinoi Tool Works (ITW), that employees 47,000 men and women in 57 countries with an annual turnover topping US$14.5 billion.

However, the Ramset story began a world away in the British shipyards of the early 20th century. In the years leading up to World War I, English engineers experimented with a new tool that harnessed the explosive powder that had been developed for the munitions industry. This would be the principle behind the first powder actuated fixing tool.

In 1952, John Siddons—a Victorian- based businessman who was elected to the Australian senate in the 1980s— secured the rights to the world’s first commercially viable powder actuated fixing system and Ramset Fasteners was born. This would serve as the basic prototype that would inspire the new company to research, develop and manufacture a diverse range of anchoring systems over the next 60- plus years.

Call the ‘Ramset man’
Ramset’s remarkable success has been built on the company’s deep trade focus. This can be traced back to the early 1950s when the company ignored the traditional sales approach in favour of a fleet of radio-controlled after market service vans.

This allowed the company to build strong relationships with clients based on the technical expertise of their ‘Ramset man’—not the fast-talking ability of sales staff. The ‘Ramset man’ worked onsite with engineers, architects and contractors to develop a practical knowledge of the challenges faced on Australian construction sites.

This hands-on approach to developing products and services that add real-world value to construction operations remains a key part of the company’s DNA today.

“There’s no doubt that the business has been founded on a view of understanding end-user applications,” says Jim Osborne, business manager for ramsetreid Commercial Construction. “For us, that means being present on construction sites. Our engineers are out on site, working with all the elements of the construction trades, and looking at the best possible solutions.

“It’s not about taking a push- approach, but very much about solving problems for the end user
and providing solutions relevant to construction sites. It’s about understanding their challenges and figuring out what we can do to provide a more effective solution.”

Home-grown solutions
However, solving problems on Australian construction sites required the flexibility to develop and adapt products to fulfil the specific needs of local clients. For Ramset, that meant setting up Australian manufacturing operations to keep pace with a rapidly evolving local construction industry.

Today, the company continues to develop and manufacture the bulk of its products out of its Victorian manufacturing facilities.

“Locally manufactured, locally designed, locally developed and locally tested is a cornerstone of our value proposition in the marketplace,” says Osborne. “There is a difference in concrete around the world, which is why it’s so important for us to test and really refine our product in the exact situations and projects in this market and not on the other side of the world. Ultimately, all our development and testing is in substrates that are relevant to this part of the world.

“Manufacturing in Australia means we can be more flexible, and certainly tap into local requirements. Whether you’re the project manager or the installer, you have absolute peace of mind that what we commit to in terms of performance has been tested in a lab location here in Chirnside Park with the same materials you’re using on that site in Barangaroo.”

Driving innovation
Real-world expertise driving user- focused solutions, combined with local manufacturing capability to keep pace with new developments in the construction industry, is the formula that has powered more than half a century of Ramset innovation.

“When you are close to the market and dealing with the trades, you see more opportunities,” explains Osborne.

That’s where Ramset works hand-in- hand with CSS member stores in the process of developing and distributing products. Ramset was a founding supply partner of CSS, and the companies have been working together for over 14 years.

Ramset is known for a diverse range of iconic products that have become staples of construction sites around Australia—and the world.

In addition to the famous DynaBolt and DynaDrill, Ramset has also pioneered Pulsa gas technology, which revolutionised fixing to concrete and steel by increasing the speed

of on-site installations and reducing
in place costs. The company is also behind the powerful FrameBoss—a fully automatic powder actuated fixing system designed and developed in Victoria—and the ChemSet range that has become a leading product in the chemical anchoring and reinforcement of concrete.

This commitment to innovation extends throughout everything the company does—from product development right through to their packaging.

“For example, we won a couple of packaging awards quite recently,” says Osborne. “We looked at the key pain points a contractor has when using one of our chemical products and decided we needed to develop packaging that is incredibly site tough, that is able to be used in our applicators, that uses 99.9 per cent of the material within the cartridge because wastage is an issue.

Taking on the world
More than 50 years of success came with attention from global players, and in 2000 Ramset joined the ITW Group. However, says Osborne, ramsetreid has been able to stay true to its local roots and will continue to manufacture in Australia for the foreseeable future.

“In today’s market the world is ever smaller and you’re dealing with and competing against global players.” He says. “You need that global perspective, critical mass and the ability to develop technology platforms on a global scale- but at the same time we need to protect our local identity.

“We’re taking a far more global view on technology that enables us to tap into projects that are happening within the construction group and fins a way of customising those for local requirements. That’s why we make the product here.

“It’s a challenging environment and we have to continually evolve and make sure we’re providing the most relevant and value added solutions in the marketplace. So we look at global trends and how we can tap into them. If there’s a more efficient way to deliver a better outcome then we’re interested. The second we stop thinking like that is the second we become redundant.”

So if it’s a Ramset product you require, then visit any one of our CSS member stores who can assist you in purchasing, or advise you on Ramset product applications.

Nesting Instinct

Katrina — Sun, 22 May 2016 23:26:35 +0000

When a builder had a vision of constructing a state- of-the-art chicken shed, he turned to a CSS member who understood the difficulties involved.

When Sydneysider Eddie Wehbe moved his family to the country, it wasn’t to embrace a relaxing, laid-back lifestyle. Instead, he built and manages a state-of-the-art farm that has him on call 24 hours a day. Sure, it’s exhausting, stressful and time consuming but he’s never been happier.

“I like a challenge,” says builder/ carpenter Wehbe who purchased the 174.4-hectare property that’s located 12km west of Goulburn, New South Wales. While the region is predominantly used for grazing, he had a vision of launching a poultry farm back in 2010.

“I’ve always had a strong passion for agriculture,” he explains, “and to ensure I keep going in the right direction, I spent about a decade on research prior to making the move. I haven’t ceased being a builder; it’s just that now I’m building my poultry farm.”

His dream of creating a self- sufficient, drought-tolerant enterprise that operates all year round has come to fruition. The farm includes six 150-metre-long sheds that accommodate 30,000 chickens. The farm can turn over five batches of chickens a year.

In the early stages, he turned to business development manager Chris Nesci of No.1 Roofing & Building Supplies, a family business that’s opening its fifth branch later this year. Nesci recalls: “When Eddie explained what he was planning to do, I was blown away by the size and scale of the operation, and the personal investment that he was putting into it—and the change in career. He had some big dreams but I believed in him. He was planning a colossal, state-of-the-art poultry farm unlike anything that had been built before in that particular industry. Not only that, he wanted to do it on a budget.”

Both Wehbe and Nesci worked together to select the best quality products for the 17,000 square metres of roofing. They chose Colorbond steel, manufactured by BlueScope Steel Australia, as well as wall curtains that allow the sides to be opened and closed, and concrete for the footings and floors. Another material used was the B8 coated Bremick screws carefully selected for corrosive environments.

Even in the early stages, Nesci was impressed with Wehbe’s business ethics. “He had an option to import steel from China but he chose to support the Australian economy and exclusively use BlueScope steel for everything,” Nesci says. “That includes the structure, water tanks, roof sheets, gutters, flashings—the whole thing.

“At No.1 Roofing & Building Supplies, our business is all about honesty. Sure, we were there to get the sale, but Eddie is a family man who works hard. We saw the dream and we wanted to be there with him throughout the whole project. It’s been a real partnership.

“This is an ethos that underpins all CSS member businesses, providing solutions rather than just selling something to customers. We’ve been a member of CSS for a few years
now and the group network helps us provide a proper selling solution, as we can access over 100 leading brand suppliers and 70 stores nationally. So if we need to get advice to help solve a problem, or get technical support to recommend a product to application, this is only a phone call away.”

The sheds include eaves to provide shelter from the wind, rain, sun and frost. Wehbe explains: “The design allowed us to do away with a whole
lot of mechanical ventilation. The more efficient and natural the ventilation system, the better the environment in the shed, and the happier the birds
are going to be. Curtains have been installed so the whole side of the shed gets plenty of fresh air and breeze—it’s as good as being outside.”

Positioned on a ridge to catch the wind and keep humidity low, the sheds are spacious to ensure the
birds’ welfare. “There are no cages; our birds roam free in the sheds,” says Wehbe who treats animal welfare as his number-one priority. “They walk and scratch around on a mixture of wood shavings and sawdust.”

He set out to create a benchmark facility that has actually set a new standard of quality. The sheds incorporate thermal insulation panels for energy efficiency, and are designed for natural airflow and hygiene. “They’re very presentable, very clean, easy to maintain, and it’s easy to control vermin,” he says.

The regulation of the climate in the shed is all done via computer.

The system can make adjustments, depending on wind, storms, temperature and humidity. The sheds’ curtains can instantly be moved up and down, and the ventilation sequences can be easily adjusted. “Virtually all other kinds of agriculture are dictated by the elements,” says Wehbe. “Our poultry farm operates independently from the weather and we can monitor and control the temperature and humidity in each shed.”

He’s found that this modern approach makes it easy for staff to manage, and it’s allowed Wehbe to expand his business with additional sheds planned for the near future. Apart from running his poultry business, he also runs cattle as a hobby. He’s been so busy, he’s hardly had time to think about his days as a Sydney cityslicker. “I haven’t missed being in the city for
a second,” says Wehbe, whose wife Lauren looks after the financial side of the business. “We love it here.”

Nesci, who’s visited the farm quite a few times, was impressed by Wehbe’s vision. “He wanted to design chicken sheds that were going to outlive him,” he says. “Typically, sheds last about 10 years. I think there’s every chance that Eddie’s will still be standing in 40 or 50 years time.”

Master Builders Association concerned by Senate defeat on ABCC Bill

Katrina — Sun, 22 May 2016 23:20:52 +0000

The Master Builders Association has hit out against the Senate’s negative vote on the ABCC Bill. Wilhelm Harnisch, CEO of the Master Builders Association, took the senate to task claiming the Bill’s rejection would cut already dwindling confidence in the sector.

“The Senate’s rejection of the ABCC Bills will not boost confidence in the stalled commercial construction sector,” Harnisch said.

The association called for a move
to increase interest in the sector, claiming the bills would open up space for investment and counter current misgivings.

“A boost in confidence is what’s needed for pickup in commercial building activity but Master Builders National Survey of Building and

Construction for the March quarter shows that builders remain lukewarm about future prospects,” said Harnisch.

Harnisch was particularly critical of the lost opportunities the bill may have provided for improved infrastructure and foreign investment.

“The decision by the
Senate to reject reform that would remove reduce the cost of building commercial projects as well as schools and hospitals by blocking unproductive union agreements is blow to Australia’s commercial builders.

“Overseas investment is a major contributor to commercial construction projects and the failure to restore the ABCC to tackle the building union’s

ingrained culture of unlawfulness
will undermine our efforts to remain internationally competitive and attractive to international investors,” Wilhelm Harnisch said.

The senate’s final defeat of the Bill has set the country in motion for a double dissolution, with Malcolm Turnbull expected to call an election after the early May budget week.

No negativity when it comes to negative gearing

Katrina — Sun, 22 May 2016 23:17:38 +0000

Malcolm Turnbull has ruled out any changes to negative gearing in his upcoming May budget and the Master Builders Association has come out in support. The Master Builders Association has stated it is confident that the current negative gearing taxation system and Turnbull’s statement will continue boosting Australian construction.

“The retention of negative gearing provisions for new and established homes is a long held policy by Master Builders and therefore Master Builders strongly backs today’s announcement,” said Master Builders Association CEO Wilhelm Harnisch.

“Confidence in the residential building sector will be boosted by the Government’s announcement that it has out ruled out any change to the current negative gearing arrangements in the forthcoming May Budget,” said Harnisch.

Turnbull came out swinging against Labor’s proposed plans to shift away from negative gearing. He claims that the changes would massively damage the construction industry’s work centre—the Australian home.

Harnisch was appreciative of the news on behalf of the Master Builders Association and Australian tradespeople.

“The Prime Minister’s announcement means $8 billion of investment each year spent on renovation of private rental properties will continue and thereby boost economic growth and jobs for tradies,” Harnisch said.

“Negative gearing underpins investment, largely by mums and dads, in private rental properties and plays a critical role by supplementing the shortage in public and social housing rental stock where there is a waiting list estimated to be around 200,000 households,” he said.

While in support of the existing negative gearing policies, Harnisch also called on politicians to tackle other areas of nation’s housing issues. In particular, the construction industry could be further boosted by redress of the nation’s housing shortage through stock increase.

“Master Builders in strongly backing today’s announcement is now looking to the major parties for sound policies that will tackle the structural barriers to housing affordability which is to increase the supply of new housing.

“Master Builders has called for national competition policy payments to implement removal of the current unnecessary blockages that delay the supply of new housing.

“This is one of the key housing affordability reforms that Master Builders will be calling on both parties to deliver on for the next term of government,” Harnisch said.

Fat Chance winners

Katrina — Sun, 22 May 2016 23:15:25 +0000

1. Gary Beeston from Brisbane Fasteners, alongside the Gavin & Rod Edwards from Aristo Products. 2. Liam Cummings with Fred Hall from DBF. 3. Owen Pearce being congratulated by Mike Ryan from VEK Tools, McGraths Hill. 4. Mark Brailsford with Ray Patrick from NT Fasteners Coolalinga. 5. Gavan Dixon with David Clarkson from AG Trade, Esperance

Congratulations to the winners of the last edition’s competition, who won their “Ultimate Break for Freedom” and can enjoy spending

their $3500 travel voucher. A big thanks to our sponsors: Milwaukee, Thorzt, Pro-choice and Impact-A.

VIC: Liam Cummings NSW: Owen Pearce
NT: Mark Brailsford WA: Gavan Dixon
QLD: Rodney and Gavin Edwards

Jobs boost in Queensland’s largest suburban renewal project

Katrina — Sun, 22 May 2016 23:14:16 +0000

In a major boost to apprenticeships and construction jobs, work has commenced on the biggest stage of Queensland’s largest suburban renewal project.

Minister for Housing and Public Works Mick de Brenni assisted today’s concrete pour on the foundations at Cornerstone Living in Sunnybank.

“This ten year, ten hectare project will deliver 1200 brand new apartments and town homes for around 3000 people when it’s completed,” Mr de Brenni said.

“The Palaszczuk Government is

delivering for Queenslanders with 4600 jobs being created here on site during the life of the project.

“This project will also become a great training ground for more than 240 apprentices who will start their careers here as part of that workforce.

“This is a real opportunity for Brisbane to meet its growing housing needs, while shaping a brand new community that can live and grow in a very sustainable and environmentally friendly way in such a great part of Brisbane.

“The $600 million project is creating a new master planned community

which is close to schools, universities and transport.”

Member for Sunnybank Peter Russo said the project was crucial to meeting the housing requirements of the local area.

“I am proud to get behind great projects like Cornerstone Living,” Mr Russo said.

“It’s great to see high quality developments that include space and amenities for everyone to enjoy and that will become another focal point for our community.”

The construction of Stage D is now underway with today’s concrete pour, and will comprise 52 dwellings.

Executive Chairman of Consolidated Properties Don O’Rorke said this development will provide a range of benefits for the community in terms of housing and jobs.

“The start of Stage D marks our 200th dwelling at Cornerstone and we look forward to creating a community that will set new benchmarks in
town planning, building design and sustainability. We have a proud history of delivering high quality development and creating homes and communities that people love.”