ADVOCACY

MGA - Your Voice. Representing our industry and your business at federal, state, local and regulator levels. MGA is there, meeting with the decision makers and “making the case” for the sustainability and prosperity of our members' futures.

Summary of Advocacy July 2020 - June 2021

This is a brief summary and update of ADVOCACY and Industry Representation matters and issues MGATMA is currently addressing at Federal and State levels on behalf all members.

Federal Matters

1. Industrial Relations

a. Annual Wage Review 2021

b. Permanent Part Time flexibility

c. Wage Theft

d. Casual Employee definition

e. Sexual Harassment

f. Junior wage rates

g. Domestic Family Violence Leave

h. FWC Loaded Rates project

2. Temporary Visa – Covid-19 408 – Hospitality and Tourism only

3. Illicit Tobacco

4. Least Cost Routing

5. ACCC - Competition matters

State Matters

State Covid-19 Business Economic Recovery Committees
Sustainable Supermarkets – Waste Management
Planning, zoning and development
Trading Hours matters
Container Deposit Schemes / Single use plastic item bans
Tobacco Laws
Packaged Liquor
Debilitating Energy Costs
Payroll tax
Small Business Advisory Councils

Federal Matters

MGA is currently engaging on an ongoing basis with Federal Ministers and Shadow Ministers about the following issues and matters.

Covid-19 – Coronavirus Pandemic

Australians have been plagued by lockdowns, shutdowns and movement restrictions around Australia - MGA is a member of several Federal Government forums,
Department of Home Affairs Supermarket Task Force / Food Security Group
National Treasury Forums - re JobKeeper, JobSeeker, JobMaker, cash flow boosts and rent relief, as well as
Engagement with FWC, ATO, Fair Work Ombudsman, ACCC, Human Rights Commission, Small Business and Family Enterprise Ombudsman and Covid-19 Business recovery Commissioner – Nev Power.

Covid-19 - Mental Health for Family and Private businesses – Advocated the Treasurer for additional funding support for MH programs - over $2b set aside

1. Industrial Relations

The FWC Annual Wage Review Panel – as at 16^th June 2021 the FWC handed down its decision to award a 2.5% wage increase. This increase will be delayed for the General Retail Industry Award until 1^st September 2021. After a substantive survey of members MGA’s submission recommended the following;

MGA sought a zero / nil increase or a small, delayed increase. The arguments for this recommendation centred around the need for the economy to recover from the effects of Covid19.
There will be a .5% superannuation guaranteed contribution from 9.5% to 10% from 1^st July 2021.
The ACTU sought a 3.5% increase to all awards.
The past 4 years has seen a 11.55% increase in wages - the last increase of 1.75% was on 1^st February 2021. The newly announced 2.5% increase plus the past 4 years of increases = 14% plus .5% SCG increase to (10%) = Total increase = 14.55%

Permanent Part time employment and flexibility - WIP
- MGA and ACTU (SDA & AWU) jointly applied for a schedule to be inserted into the Award to allow PPT flexibility. Justice Iain Ross from the FWC has determined the GRA will be varied – (not a schedule).
- Employers will be able to offer additional hours of work to a part time employee and will not pay for the additional hours of work at overtime rates. (This was included in the Omnibus Bill but did not get through)
Wage theft
- Attorney General Christian Porters Working Group Recommendations to criminalise Wage Theft in the Omnibus Bill did not go ahead.
Casual Employees – Definition - WIP
- The definition of a Casual Employee will allay any member fears of having a casual employee “double dipping” by paying annual leave for consistent and systematic hours of work.
- There are new rules surrounding the requirement to provide an opportunity to a casual employee to become permanent and this must be completed by mid-September 2021. MGA is currently preparing an information sheet for members’ guidance on this issue.
Sexual harassment at work - WIP
- Has resulted in the proposed inclusion of an offence in the Fair work Act that provides for termination of employment on the grounds of sexual harassment. Complaints were previously made under the Human Rights Act.
- Members are being encouraged to ensure that they have their policy on sexual harassment available to all employees and the need to conduct training on an annual basis.
Junior wage rates removed
- Junior wage rates were removed by the Fair Work Commission from the General Retail Award from Level 4 and upwards as from 1^st February 2021.
Domestic Violence Leave - WIP
- Fair Work has commenced a review of domestic violence leave in Awards. It is proposed that consideration be given to payment for domestic violence leave and the adequacy of unpaid domestic violence leave currently.
- The enquiry is expected to be heard later this year.
- MGA has opposed this proposal offering that support for DVL should be forthcoming from the Federal Government and not employers
FWC “Loaded rates” - WIP
- MGA together with the FWC is working on a much simplified loaded rates model to help smaller businesses comply with onerous Award compliance and assist them to employ more staff simply. MGA is modelling one loaded rate for week days and weekends.
MGA Consultation
- A Senate Inquiry investigating the merit for the Fair Work (supporting Australia’s Jobs and Economic Recovery) Bill of proposed amendments to the Federal Parliament.

Other Matters

Temporary Visa – Covid-19 408 – Hospitality and Tourism only
1. The unintended consequences of introducing this legislation will be the supplantation of the workforce from our members businesses to hospitality and tourism sectors.
2. Temp Visa holders may work a maximum of 20 hours per week.
3. The Covid-19 408 Visa will allow Temp Visa holders to extend their visas by 12 months and work in excess of 20 hours per week.
4. MGA is engaging with Minister for Immigration Alex Hawke and Minister for Small Business Stuart Robert to allow this policy to be extended across all industries including our own.

Illicit / Illegal Tobacco - WIP
1. Costing our industry sector $300m in sales per annum – MGA has been actively engaging with the Minister for Borders, Jason Wood and Minister for Home affaires Karen Andrews as well as the Federal Government Black Economy Task Force, Treasury and other Government and Regulator levels to strengthen laws and increase enforcement resources.
2. State Governments have also been engaged to put upward pressure on the Federal Government.
Least Cost Routing – Reduce Merchant Payment Fees
1. MGA is engaging with Government, RBA and eftpos to not risk losing dual network cards (eftpos and global card) and encouraging the 4 banks to significantly reduce increasing Merchant Payment Fee costs
2. MGA formed the Fair Merchant Payment fees Alliance with other employer organisations.
ACCC Matters currently being addressed
1. Member of ACCC Small Business and Franchise Consultative Council
2. Oppose Woolworths acquisition of PFD – submissions, forums and consultation – despite MGA’s and other organisations strong representations the ACCC could not find strong enough facts and evidence to suggest that the PFD acquisition by Woolworths would substantially lessen competition. National Suppliers were not forthcoming with any concerns.
3. Shopper dockets - “4 cents per litre enforceable undertaking” continues
4. Unsustainable Merchant Payment Fees & Least Cost Routing for members - WIP
5. Investigate Employsure - misleading marketing, promotional & contract behaviours
Country of Origin Labelling
1. Being reviewed by National Measurements – MGA is involved with the review of in 2021
Unfair Contract Terms
1. further strengthen contract terms that better protect family and private businesses – lift the contract value threshold to $10m
Company Tax reductions
1. MGA is supporting the fast tracking of reductions to 25% for small businesses with $50m or less in sales – currently 26%
Small Business Advisory Councils
1. NSW – MGA a member of the Small Business Commissioner Small Business Round Table
2. MGA is a member of the Australian Small Business and Family Enterprise Ombudsman’s (ASBFEO), Bruce Billson working groups.
3. MGA is a Director of the Council of Small Business Organisations of Australia (COSBOA)
4. Qld – MGA a member of the Small Business Commissioner – Maree Adshead - Small Business Round Table
5. MGA is a member of the Australian Small Business and Family Enterprise Ombudsman’s
Circular Economy - Sustainability – Waste Management Solutions
1. MGA’s historical Joint Venture with Corporate Partner, Aussie Energy to form a “Social Enterprise” company, Australian Circular economy Solutions Pty Ltd. (ACES) has been launched.
2. We focus on providing environmental and socially responsible management solutions to to help businesses reduce the cost of waste pickups and the negative consequences associated with waste being sent to landfills, reducing annual quantities of CO2 equivalent gasses into the atmosphere.
3. Supermarkets generate an enormous amount of waste….tonnes & tonnes and its costly to get rid of!
4. Organic waste
  1. Vegetables and Produce - Out of code dairy products (yoghurts, dips & cheeses), meats, chicken, bakery, paper toweling, delicatessen items coffee grinds and cooking oil – wood saw dust, timber off cuts & shavings.
5. Non-Organic waste
  1. Plastic soft and hard (pallet shrink wrapping), cardboard, rubber gloves, paper towels, foam vegetable and fruit trays, Styrofoam, plastic punnets, foil etc..
  2. ACES will be developing a unique Circular Economy Solutions programme for members via a Sustainable Supermarket business programme.
NSW Bin Trim programme
1. With the support of the NSW Government, MGA has been conducting Waste and Energy Audits & Assessments in more than 120 NSW IGA stores.

State Issues and matters

State Covid-19 Business Economic Recovery Committees
Circular Economy – Waste Management
Planning, zoning and development
Trading Hours issues
Container Deposit Schemes / Single use plastic item bans
Tobacco Laws
Packaged Liquor
Debilitating Energy Costs
Payroll tax
Small Business Advisory Councils

State Covid-19 Business Recovery Committees

MGA is a member of a number of State and Territory Covid-19 Business Economic Recovery Committees

Meetings held weekly and fortnightly
Many issues and opportunities discussed including removing of red tape for members to home deliver, rental relief schemes and assistance, payroll tax relief, return to business opening strategies, JobKeeper, Job Maker matters, Covid-19 work practises, restrictions and business information tools and industry training and development.

Qld Premier’s & Small Business Commissioner - Covid-19 Business Economic Recovery Committee

NSW Treasurer’s & Small Business Commissioner – Covid-19 Small Business Economic Stimulous Committee

Vic Small Business Minister & Small Business Commissioner – Small Business Recovery Committee

WA – Small Business Minister - Small Business Covid-19 Economic Recovery Group

Circular Economy – Waste Management - Priority

MGA has been strongly advocating the Federal and state governments for;

Assistance to better support members to embrace the principles of the Circular Economy with their waste management practices
Currently waste disposal is a huge business cost for members and escalating
MGA is engaged with the Federal and State Environment Departments to help communicate opportunities within our industry sector to assist members reduce their waste costs and avoid landfill.
MGA is applying for various grants to assist members.

Planning, zoning and development matters are a major concern

MGA has been strongly advocating state governments for;

Council consistency – require and follow state planning and development guidelines to give Family businesses the confidence to invest in their businesses and innovate
Stop unfair crowding out of our members by the Chains – reducing consumer choice and stifling competition
MGA allocated significant financial and human resources into opposing the unfair manner in which Kaufland – 4^th largest retailer in the world – tried to enter the Australian retail market. They were given unprecedented “planning and zoning FREE kicks” by state governments – an unfair practice our members could never achieve. Kaufland withdrew from Australia in January 2020.

Trading Hours issues

WA – Christmas and New Year - MGA will lodge a submission with WA Attorney General John Quigley – to maintain the status Quo for Christmas 2021 and the New Year 2022 – no change 2020/2021!
QLD – 5 Year Trading Hours Moratorium – commenced August 2017. 1.3 years remain for MGA and the Palaszczuk Government to seek a solution to “future proof” QLD independents.
SA – Christmas and New Year Trading Hours – MGA will advocate for NO changes to last year.

Container Deposit Schemes

NSW

Launched December 2017 – very messy & costly system – Members have adapted – a call has been made by Tomra to polace additional RVMs with MGA members - WIP
NSW / Vic Border issues – MGA has secured additional temporary relief support for NSW members along the Border - 37 outlets. This will continue for short term

Victoria

A CDS will not be introduced into Victoria in 2023.
MGA is a member of the Victorian CDS task Force
This will be a relief for all members on the NSW side of the Murray River

MGA is a member of the WA CDS taskforce
The WA CDS was launched in November 2020
MGA will endeavour to maximise opportunities and minimise costs for members
MGA is a member of the WA single use Plastic Item Ban Task Force – 1^st meeting July 21

QLD

MGA is a committee member of the Qld Single Use Plastic Item Ban task force led by Department for the Environment Director, Kylie Hughes.
QLD CDS – launched November 2018
1. MGA is a member of the Qld CDS Taskforce - working well with little cost or red tape impact on members.
2. This is a Not-for-Profit model

Tobacco Laws
- MGA’s Tobacco Training module for all states and territories – free for members – has been endorsed by state governments and territories.
- E Vapourisers – E Cigarettes - MGA has been advocating for uniform and consistent federal and state government policies concerning E vapourisers – MGA members must be able to stock, market and sell Vapourisers!
  - MGA opposes the proposal for E Vapourises to be prescribed by a doctor and then obtained from a chemist
- NSW - MGA is a member of the NSW Tobacco Control Committee – no imminent changes.
- Victoria – MGA is a member of the consultation committee presiding over the Tobacco Control Act – no imminent changes
- QLD – MGA engages with the Department of Health (Minister for Health Dr Steven Miles) – there are no imminent changes – particularly nothing new in regard to tobacco licences
  - Although discussions have ensued regarding the illicit tobacco phenomenon in QLD and the possibility of introducing a tobacco licence to curtail illicit tobacco from being sold.
- WA – MGA advocated against the law changes concerning the downsizing of instore Tobacco Product Sign Boards from an A3 size to A4. Highly impractical.
  - The Minster has advised that MGA lodge a submission for the next review of the 2020 Tobacco Control Act
- TAS – A Watch Out - A bill to ban the sale of cigarettes to Tasmanians aged under 21 is now "off the table". Independent member for Windermere, Ivan Dean, was expected to introduce the legislation - a first in Australia - to the Upper House in 2020 but it was withdrawn due to a lack of support. MGA and many others lodged submissions which were successful in opposing this Bill.
Packaged Liquor

MGA has a National Liquor Committee – comprising of members and industry stakeholders representing all national and state brands - see committee members below.

Issues around the states and territories include MGA and others success in opposing Woolworths inappropriate Dan Murphy development in the NT and WA, digital and online ordering and delivery disruption, website shop fronts, outdoor signage close to schools, alcohol related signage on public transport, National RSA training, instore signage and continual Liquor Control Act reviews.

NSW – Digital Licenses – after a thorough trial period – NSW Digital Drivers Licenses are now acceptable for proof of age purposes
- MGA has a strong relationship with the NSW OLGR
ACT – Peter Kakarzis is a long serving member of MGA’s National Liquor Committee. Peter represents MGA Liquor and ACT members on the ACT Liquor Control Advisory Board.
Victoria – MGA is a member of the Statutory Liquor Control Advisory Council (LCAC)
- MGA and the MGA Liquor committee has a very strong working relationship with the new Minister for Liquor and Gaming, Melissa Horne, her Department and VCGLR
- A submission was lodged on in November 2020 making further comments in regard to proposed Liquor Act amendments concerning online sales of packaged liquor and RSA – post Covid-19 – home deliveries etc.
- MGA Liquor Committee is currently opposing imminent legislation that will allow restaurants to sell packaged liquor with their takeaway food orders – 6500 restaurants?
WA – MGA continues to grow its Alliance with LSA WA which represents independent packaged liquor stores. Together we are stronger when advocating for members at a state Government level. Many MGA members have packaged liquor departments next to their supermarkets
- Dan Murphy Como WA – ongoing support provided to local groups to oppose the development of a 1600 square metre Dan Murphy store in Como.
NT – MGA strongly opposed the proposed building of a Dan Murphy store in Darwin which will eliminate packaged liquor competition in this city…..Woolworths Chair Gordon Cairns was forced to withdraw after considerable NT Community back lash.
- MGA liaises with the NT Government in regard to, capping liquor sales to 25% of a supermarkets total sale as well as the discriminatory regulations that disallow MGA’s members from externally advertising liquor.
SA –SA supermarkets, have been able to stock, market and sell packaged liquor from 18^th November 2019,. Owing to Covid-19 there has been a slow uptake by members in SA.
- MGA is currently working with a few retailers to create a model of how it is to be done.
- The cost of a packaged liquor licence is high at $6k
QLD
- Entrepreneurial Pipeline Project – locally produced Packaged Liquor for Independent supermarkets
  - The MGAQ Committee has been liaising and working with the Qld Government for almost 4 years to drive for locally produced Queensland wines, beers and spirits to be stocked by MGA members as a part of a whole of meal solution and to help boost Qld made products and increase employment….similar to Tassie model
  - The MGAQ Committee met with Minister Fentiman and key Department Heads in February 2020 to voice our industry concerns that our industry sector would not be included in the first round of liquor legislative changes being considered by the Qld Government.
  - We discovered that the Qld Small Business department research of industry stakeholders to ascertain the merit of the Entrepreneurial Pipeline Project was flawed and inaccurate. The feedback given in the surveys was incorrect or simply misrepresented stakeholders and each industry sector view as a whole. Minister Fentiman and her team promised further work would be done but nothing is likely before the 2020 election. They will support the programme
  - Post Election - All Qld Government Ministers and key regulators, have and will, continue to support this initiative that was formerly sponsored by previous Small Business Minister Shannon Fentiman, now Di Farmer.
  - MGA and the MGAQ Committee have acquired the support for the Entrepreneurial Pipeline Programme from Qld Small Business Commissioner Maree Adshead, Ministers Cameron, Fentiman, Farmer and D’Ath as well as various Department Heads including Qld Small Business Executive Director, Warwick Agnew.
  - Queensland Boutique Brewers Association, The Qld Distillers Association and the Qld Wine Industry association are fully supportive of the program.
  - There was a great fear from health agencies that alcohol would become more “normalised” and hence a health and safety risk if stocked in indie supermarkets. The Wine Industry Association had a fear that our sector would engage in discounting and subsequently damage their brands????? And generally, it was felt that indie supermarkets stocking locally produced alcoholic beverages would not add to a “whole of meal” solution and there were concerns that this initiative would be exclusionary in nature and hence anti-competitive.
  - Meetings and consultation forums are being arranged with Qld Ministers, the Attorney General and Departments heads to further the sale of local produced packed liquor in Queensland grocery outlets.

Energy Costs – being addressed with the relevant State Ministers and their departments at every opportunity. Each state has a different system and ownership structure for electricity generation and electricity retailing adding complexity, confusion and costs.
Payroll tax – This is a debilitating tax on employment – MGA continues to voice strong concerns that this tax is a handbrake on employment growth, particularly, as we emerge from the Pandemic.

Payroll tax relief or deferment was given by some state Governments during Covid-19 in 2020. States and territories raise $22B per in revenue from payroll Tax.

See the Payroll Tax Schedule per State and Territory attached here.

Small Business Advisory Councils

Queensland – Debbie Smith, FWks Toowoomba - member of Qld Sml Bus Advisory Council
NSW – MGA is a member of the Small Business Commissioner Small Business Round Table
Victoria – MGA & Tony Ingpen, Supa IGA Mount Evelyn is a member of the statutory Small Business Advisory Council

ADVOCACY

Summary of Advocacy July 2020 - June 2021

Federal Matters

State Issues and matters

MGA Board of Directors

MGA National Liquor Committee

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