Australian Car Wash Association

The Coronavirus Economic Response Package (JobKeeper Payments) was recently passed by Parliament which will extend the Federal Government’s JobKeeper Scheme to 28 March 2021.

The main changes to JobKeeper 2.0 are:

• the need for employers to test their eligibility to receive JobKeeper payments for the period 28 September 2020 to 3 January 2021 and then again re-test their eligibility for the period 4 January 2021 to 28 March 2021;
• the decline in turnover must now be calculated on actual turnover on a quarterly basis; and
• the introduction of a two-tiered payment system for employees.

To ensure eligibility for JobKeeper 2.0, employers should:

1. Ensure accounting records are in order and are up to date by early October. Noting, eligibility is based on actual results for the quarter ending 30 September 2020.
2. Keep all accounting records up to date to ensure eligibility for the second quarter, which is based on actual results for the quarter ending 31 December 2020.
3. Compile payroll records for eligible employees and check the number of hours they worked on average during the relevant periods prior to 1 March 2020 and 1 July 2020.
4. Ensure the minimum wage condition is met based on the higher or lower rate (as appropriate).

Members who would like an excellent summary of the changes and, your obligations under the scheme, a link to a first-rate summary published by accountancy and consulting network, Moore Australia, can be found by logging into the Members Only area of the ACWA website and following the left-hand navigation to COVID resources  https://acwa.net.au/members.

 

The Victorian Government recently announced a third round of the Business Support Fund. Under this round of the Fund, eligible businesses will receive grants of $10,000, $15,000 or $20,000 depending on a business’s annual payroll.

Applications will remain open until funds are exhausted or until 11.59 pm on 23 November 2020, whichever is earlier.

Applications as well as eligibility criteria, guidelines and FAQs can be found on the Business Victoria website here:

Victorian Government Business Support Fund

It is ACWA’s understanding that the car wash ANZIC code (for which eligibility for the grant is determined) is 9412 – automotive repair and maintenance (see link) ABS ANZSIC Code.

 

The Victorian Government has stated a desire to get COVID-safe businesses up and running as soon as possible.  However, the Australian Car Wash Association (ACWA) is concerned that this is not the case.

ACWA has made multiple submissions to Ministers with portfolio responsibilities impacted by COVID-19 and, we take this opportunity to acknowledge Minister Martin Pakula for his concern for our crisis.

However, we have been unable to gain traction amongst decision-makers.  We are seeking a simple and rational change to Melbourne’s Stage 4 Restrictions that will allow our industry to survive the pandemic.

The car wash industry is significant.  Across the country, more than 3,000 car wash sites have an economic impact of $527m and employ over 5,000 people.  And Victoria leads the country, with more wash locations than any other state.  Sadly, this may not remain the case without your help.

Our industry in Melbourne and regional Victoria, is safer than almost any other permitted business activity.  Yet, regulators appear prepared to stand by and senselessly watch as car wash businesses, their families, and thousands of workers go to the wall.

Victoria’s car wash operators are set to become collateral damage in the war against coronavirus and, it does not have to be this way.

Commercial car washing meets all Government key criteria for an industry sector which can be safely opened for business.

Car Washing has an Extraordinarily Low Impact on Community Movement.

Data shows it is rarely something an individual specifically leaves home to purchase.  Indeed, most car wash customers buy the product whilst engaged in another activity; on the way to or from permitted work, filling their car with petrol or on the way to the supermarket for food.

Commercial Car Washing is COVID Safe.

Washing at a commercial car wash is an extremely low-risk activity for the Victorian public.  Particularly our automated drive-through services where drivers do not even have to leave their vehicles.

• Automatic car washes provide a “click and collect” service. Customers remain in the safety of their vehicle and have no human contact.
• Self-serve bays are wide enough to surround a vehicle, and tiled walls separate customers at all times.
• Soap and detergent are the natural enemies of the COVID-19 virus, and these products are those upon which a car wash is built.

Car Washing is Necessary

Most car maintenance experts recommend washing your car once a week to prevent contaminants from damaging the car’s paint and finish.

Some vehicles if not cleaned for the duration of the Stage 4 lockdown, will be permanently damaged.  Bugs and bird droppings are not just an unsightly inconvenience; they are acidic and cause lasting damage to vehicle paintwork.

For many, there is no alternative to using a commercial car wash to protect their asset.  Victorian EPA regulations make it illegal to wash your car in a driveway or on the street.

Car Washing Contributes to Community Safety

At a minimum, drivers need to keep windows and headlights clean to ensure their safety.

Car washing is entirely consistent with Health Authority reminders to reduce the spread of the COVID virus by frequently washing hands and disinfecting surfaces.

The Car Wash Industry in Melbourne, as well as regional Victoria, is unnecessarily haemorrhaging from the State’s COVID-19 Restrictions.  We repeat, it does not have to be this way.

COVID-19 restrictions have placed car wash businesses, their families, and thousands of workers under financial stress from which some may never recover.

They can safely open and should be able to do so.

The Victorian Car Wash Industry is pleading for help before it is too late.  ACWA is calling on the Government to deliver a sensible restart to the car wash industry.

At a minimum,  Melbourne’s Automatic car washes should be permitted to open from September 29, 2020.

PRESS RELEASE – Released 10 September 2020

The Australian Car Wash Association Calls for Changes to Victorian COVID Restrictions

Car wash operators across Melbourne were dealt a savage blow with the State Government’s release of its Roadmap to Recovery on Sunday 6 September, 2020.

Already suffering massive losses from reduced road traffic during Stage 3 Restrictions, Melbourne’s car wash sites were forced to close when Stage 4 Restrictions were imposed. And, under the Roadmap restrictions announced last weekend, commercial car washes will remain closed until October 26, 2020.

“Our Victorian car wash sites have been doing it tough since restrictions commenced,” said Neil Fox President of the Australian Car Wash Association (ACWA).

“In March/April our members, who are mostly small family-owned business, reported wash numbers down by up to 90% in some locations.  It became even worse when forced to close during Stage 4 Restrictions” said Fox.  “The COVID-19 restrictions have placed these businesses, their families, and thousands of unskilled workers under financial stress from which some may never recover”.

The Australian Car Wash Association (ACWA) has made a submission to the Victorian Government Ministers to have Melbourne’s car wash sites open from September 29, 2020.

The car wash industry is significant. Across the country, more than 3,000 car wash sites have an economic impact of $527m and employ over 5,000 people.  And, Victoria leads the country with more wash locations than any other state.

The industry has its big players, including the major fuel companies.  However, it is predominantly a community of small business men and women who have invested heavily in equipment that can take years to produce a financial return.

The industry’s biggest frustration is that car washing ticks all the Government’s boxes for a sector that should be able to open when restrictions ease slightly on September 29:

1. Car washing has a low impact on community movement – Car washing is a vital product purchase for many however, most car wash customers purchase the product when engaged in another permitted activity; on the way to or from permitted work, whilst filling their car with petrol or on the way to the supermarket for food.
2. Automatic car washes in particular, provide a “click and collect” service – Customers remain in their vehicle, have no human contact whatsoever and with touch-free payment options available, there is almost no risk of COVID transmission.
3. Commercial car washes operate in the lowest possible risk environment – outdoors.

“The Victorian Government has indicated a desire to get COVID-safe businesses up and running as soon as possible.  Commercial car washing is an extraordinarily safe product purchase, particularly the automated drive-through services where drivers do not have to leave their cars” said Fox

“We will continue to work with the Government to deliver a sensible restart to the car wash industry and we believe at a minimum Melbourne’s Automatic car washes should be permitted to open from September 29 2020”.

 

ENDS

 

For further information and interview opportunities please contact

Doug Cross

Business Manager

Australian Car Wash Association

0499013376