News

In a highly anticipated statement, the Federal Government yesterday announced changes to the JobKeeper scheme which will extend past September and through to March 2021, but at a stepped-down rate. In summary, the key details are listed in the table below:

	Until 27 September	From 28 September to 3 January 2021	From 4 January to 28 March
JobKeeper (Over 20 Hours a Week)	$1,500/fortnight	$1,200/fortnight	$1,000/fortnight
JobKeeper (Less Than 20 Hours a Week)	$1,500/fortnight	$750/fortnight	$650/fortnight
JobSeeker Coronavirus Supplement	$550/fortnight	$250/fortnight until end of 2020	Under Review
JobSeeker Totals	$1,115	$1,115 ($815 + $300 of own income)	Under Review

Further information for members can be found in the Members Only Area of the ACWA Website https://acwa.net.au/members/  in the form of an excellent and easy to read summary of the changes to the scheme.  Chartered Accountants Australia and New Zealand have produced this document, and we recommend it as a great place to start to understand JobKeeper 2.0 better.

ACWA is considering running another interactive ZOOM information session for members on JobKeeper 2.0.  The session would be headed by an expert panel to explain the intricacies of the scheme and answer your questions.  We would love to receive member feedback on the value of such a session.

Police officers attended a Melbourne metropolitan site on Saturday and asked customers to leave or risk fines.

Last Saturday two police officers attended a popular Melbourne car wash site. They asked customers to leave the car wash site or risk receiving a $1652 infringement notice under Victoria’s Stay at home regulations. This is the third time ACWA is aware of over the COVID-19 journey, customers at car wash sites have been targeted for police attention.

On behalf of the operator involved and the car wash industry at large, ACWA made contact with the local police station and raised the issue with local members and State Government Ministers. ACWA remains of the view that Victorian car washes can continue to operate during the State’s Stage 3 Restrictions.

We believe the unwarranted attention comes about via overzealous actions of individual police officers. We are seeking assistance from the State Government in ensuring the situation does not occur again.

We ask members to continue to keep ACWA informed if their site is subjected to such visits by police.

Metropolitan Melbourne and Mitchell Shire Changes to Restrictions – Compulsory Wearing of Masks from11.59pm on Wednesday 22 July 2020

With steadily growing COVID-19 cases in Victoria, the State Government, via the Chief Medical Officer, has introduced changes to restrictions. These changes come into effect from 11.59 pm on Wednesday 22 July 2020.

There have been several additional restrictions announced; however, the most significant is that people 12 years and older must wear a face covering when they leave home. Several exemptions to this regulation apply, and full details can be found on the Victorian DHHS site here https://www.dhhs.vic.gov.au/updates/coronavirus-covid-19/updated-restrictions-1159pm-wednesday-22-july-2020.

For car wash operators, this regulation will require you to ensure all staff are wearing a face covering (mask) when at work. Several State Government articles have been produced on the matter of face coverings, and details can be found here  https://www.dhhs.vic.gov.au/updates/coronavirus-covid-19/face-coverings-mandatory-melbourne-and-mitchell-shire#:~:text=To%20give%20people%20time%20to,to%20wear%20a%20face%20covering.

One of the best starting points for all Victorian COVID-19 information is the State Government’s site https://www.vic.gov.au/coronavirus

 

The Victorian Government announced the reinstatement of Stage 3 ‘Stay at Home’ across metropolitan Melbourne and Mitchell Shire from 11:59 on 8 July 2020 to help slow the spread of coronavirus. These restrictions will be in place for six weeks and will then be reviewed by the Chief Health Officer. The return to Stay at Home restrictions means businesses within metropolitan Melbourne or Mitchell Shire such as restaurants, cafes, pubs, gyms other businesses are either restricted or can no longer operate.

Businesses within metropolitan Melbourne and Mitchell Shire affected by the return to Stay at Home restrictions may be eligible for a one-off, $5,000 grant under the Business Support Fund – Expansion Program. In short, if your car wash is located in one of the 31 metropolitan restricted locations and you are a participant in the Federal Government’s JobKeeper Payment Scheme, you may be entitled to apply for the grant.

Full eligibility details are available by logging the members’ area of the ACWA website https://acwa.net.au/members/ and head to the COVID-10 Members Resources in the left-hand navigation. Applications for the Expansion Program close on 19 August 2020.

 

From 11.59 pm on Wednesday 1 July, there will be changes in restrictions in several postcode locations in the Melbourne Metropolitan area.

What Does This Mean for Car Washing?

Without getting too political, you would think that with three months CODID-19 practice Governments would have refined their communications so they can be clearly understood. In our view businesses need to know two things:

• Can my business stay open?
• Can the community purchase my product?

The devil is in the detail, and there will be some significant confusion in the community. However, ACWA’s assessment and research of the rules and regulations indicates the answer to these essential questions is a resounding YES!   

Fundamentally, all business, including those providing services, are considered essential unless they have been deemed to be non-essential. The list of non-essential businesses includes pubs and restaurants, for example; however, car washing is not contained in the list. Car washing is, therefore, considered an essential service and can continue to operate and sell its product to customers.

As has occurred in the past, those enforcing the laws may not necessarily interpret them correctly. Members are encouraged to contact ACWA if they believe enforcement officers are unfairly targeting their site.

Continued Vigilance Is Required

If car washing is to continue to remain an essential service, each operator must adhere to the strictest possible application of social distancing and hygiene requirements. ACWA has a range of information on this subject in the COVID Resource Centre on the ACWA Website https://acwa.net.au/covid-19-update-page/

To assist operators with their obligations to staff and community, ACWA’s IR and WHS partners (ESSA and Eastman Lynch respectively) have prepared comprehensive guides for the car wash industry. These documents can be found in the Member’s section of the ACWA Website.

Safety signage is essential, and we remind ALL wash operators that ACWA’s range of Community Safety Posters are available EXCLUSIVE and FREE for ACWA Members.

 

The Rundown on Victoria’s Latest Restriction Details

In summary, the changes are as follows:

State-wide – New Restrictions Applying Across Victoria 

• Shopping centres are required to apply the four square metre rule to limit the number of shoppers.
• Outdoor markets are required to apply the four square metre rule to limit the number of shoppers.
• Restricted postcode areas can be visited for four reasons: shopping for food and supplies, care and caregiving, exercise, and study or work.
• Those driving through restricted zones may not stop unless it is for one of the four reasons above.

Impacted Postcode Areas Will be Under Stage 3 Stay at Home Restrictions.

• Full details of Stage 3 Stay at Home Restrictions can be found here  https://www.dhhs.vic.gov.au/victorias-restriction-levels-covid-19
• Residents of the restricted locations are required to stay at home.
• Residents may leave home for reasons:

• • Shopping for food or other essential items
  • To provide caregiving, for compassionate reasons or to seek medical treatment
  • For exercise (outdoor exercise only, with only one other person or members of your household)
  • Work or study, if you cannot work or study from home
• Additional Community Restrictions:
  • Visitors to homes are only allowed for caregiving, compassionate reasons or receiving services.
  • Residents may not visit friends and family who live in another household, except for caregiving or compassionate purposes or providing services.
  • Residents may not travel except for one of the four reasons outlined above.
  • Religious ceremonies and private worship can only occur online
  • Restrictions are applied to the number of people who can attend weddings and funerals
  • Indoor sports centres including gyms, training facilities and pools will be closed
  • Community sport training and competition cannot occur within a restricted postcode. If you live in an impacted area, you cannot participate in community sport elsewhere
  • galleries, museums, historic sites, zoos, outdoor amusement parks and arcades, play centres, indoor and drive-in cinemas, concert venues, theatres, auditoriums, arenas, stadiums, casinos and gaming will be closed
  • outdoor sport facilities will be closed.
  • Primary and secondary school students can continue to attend school for face-to-face learning when it resumes after school holidays.
  • If you live in one of the restricted postcodes and are currently on holiday, you can continue your holiday. From 11:59 pm, 1 July you will not be able to leave these areas for a holiday.
• Additional Business Restrictions
• Restaurants and cafes can open to serve takeaway and home delivery only
• Pubs, bars, clubs, nightclubs will be closed. They can offer take away food and alcohol
• Beauty and personal care services will be closed, apart from hairdressers and barbers
• Libraries and community venues will be closed, except for essential public support services such as food banks
• Personal training outdoors can occur but with a limit of two participants plus the instructor
• Holiday accommodation and camping will be closed except for those who reside there for emergency accommodation or work purposes

Impacted Postcode areas

• Full details of impacted postcode areas can be found here https://www.dhhs.vic.gov.au/new-restrictions-melbournes-hot-zones-covid-19.

 

 

 

Thanks once again to ACWA’s specialist industrial relations consultants at ESSA and in particular Graham Lilleyman for the ongoing assistance we receive with all-things IR in the car wash industry.

ESSA has advised that the Fair Work Commission (FWC) has handed down the 2019-20 Annual Wage Review Decision. This the first in some 25 years, there has been a majority rather than a unanimous decision. This highlights the difficulty the FWC experienced in reaching the final decision.

The decision has provided an increase in wage rates, but the timing for increases is dependent upon the Award classification. Employees in car wash operations are covered under the Vehicle Repair, Services and Retail Award 2020. Important to note is that the vehicle manufacturing industry has been removed from this Award and the title changed.

Details on timing of the roll-out of the rates increase for the car wash industry can be obtained from the Member’s Only section of the ACWA website https://acwa.net.au/members/#myaccount

Employers are reminded that they are legally obliged to comply with minimum wage and Award obligations, and there are severe penalties for non-compliance.

 

Thank you to one of our Association members who provided the following details about business record keeping and the Federal Government’s JobKeeper Program. Accountants and business advisors, Moore Stephens, circulated the information and it offered to ACWA members in precis form below.

More than 750,000 businesses registered for the JobKeeper Program, and most of them understand the need to maintain adequate records to substantiate eligibility for the Program.  According to Moore Stephens, the Australian Taxation Office (ATO) released Law Companion Ruling (LCR) 2020/1 which provides information on documentation the ATO expect businesses to maintain.

ATO’s Compliance Approach

Businesses are required to predict the “supplies” (supplies are fundamentally goods and services)  they are “likely to make” during a relevant period when determining eligibility for the Program. However, the ATO accepts that a business’s turnover prediction may differ from the actual result.  So what happens if your prediction is incorrect and your business doesn’t meet the required turnover reduction (30% or 50% depending on aggregated turnover)?

Importantly, you will not lose access to the Program providing your prediction was reasonable (on the balance of probabilities) at the time of making the prediction.

The following example is provided in Law Companion Ruling (LCR) 2020/1;

Harris owns a gym. Harris works out his turnover test period projected GST turnover for the June 2020 quarter with information known to him at the end of April 2020. Due to the government COVID-19 restrictions, his gym has been closed all of April. There is no public information that it is likely that government restrictions will be lifted in the turnover test period. Harris did not make any supplies in April and considers it’s likely he will not make any supplies for the rest of the period.

His relevant comparison period of the June 2019 quarter had a current GST turnover of $50,000. Harris keeps good records of when he calculated the test and all of the information he relied on at the time.

It turns out later that the government restrictions in his area are lifted during May 2020, and the gym reopened. By the end of June 2020, the value of supplies actually made by Harris during the June 2020 quarter indicates that his turnover did not decline by more than 30%. The Commissioner accepts that Harris’ projected GST turnover for the June 2020 quarter was correctly determined at the end of April, made on the information available to him at that time.

Records – What You Need

Under LCR 2020/1, evidence to support predictions may include:

• A decline in supplies during the turnover test period or since 1 March 2020 as a result of government COVID-19 restrictions.
• Customers cancelling or modifying existing contracts for supplies on or from 1 March 2020.
• Being required to close or pause the business due to government COVID-19 restrictions.
• Delays in being able to get access to trading stock sourced from overseas on or from 1 March 2020
• Evidence of your business’s reliance on tourism.
• Any consequential impact on the price of what you supply, for example, the impact on the market value of new property being sold by a developer.
• Information known to the business, whether or not publicly available.
• Economic forecasts undertaken by a reputable organisation that are relevant to your type of business.
• The likely timing of government COVID-19 restrictions being lifted for your type of business based on government announcements.

Why is this Important?

 If you do not maintain evidence to support your prediction and the ATO does not find your forecast reasonable during a review/audit, you may be required to repay the amounts received under the Program. In addition, there may also be penalties and interest charges for incorrectly determining your eligibility for the Program.

The Federal Court has ruled that Australia’s more than one million casual workers may be entitled to annual leave and sick leave benefits.

A recent ruling in a Federal Court case between Robert Rossato and Workpac Pty Ltd may see casual workers awarded access to entitlements full-time employees receive. And media reports claim that the judgment could affect more than 1 million workers across the country and cost businesses $8 billion.

A quick summary of the Rossato v Workpac case goes something like this:

Labour hire firm WorkPac employed Robert Rossato as a mine worker in Queensland. Mr Rossato was a casual employee and employed on rolling contracts over a three-and-a-half-year period.   As a casual employee, WorkPac paid Mr Rossato a 25% loading on his wage. The company believed the loading compensated him for not being paid sick leave, annual leave and other full-time employee benefits.

The Federal Court found that as Mr Rossato’s employment was regular, certain, continuing, constant and predictable. And, as he was given rostered shifts well in advance, he was eligible to entitlements that full-time employees receive.

WorkPac, on the other hand, claimed that Mr Rossato was being paid a 25% loading specifically because he was not receiving all the benefits of full-time workers. In their view, paying the loading and the benefits would amount to “double-dipping”. But the Federal Court disagreed.

“On a simplistic view, it (the decision) provides long term regular casuals with an entitlement to annual and personal leave”, said Graham Lilleyman, Director of ESSA, ACWA’s Industrial Relations Helpline consultants. “Whilst we are still reviewing the Decision, in most cases in our view, even if the entitlement exists, employers will be able to set-off the entitlements against the casual loading that has been paid to employees”.

The case is shaping up as a political battle with the Federal Government considering changing the law and, the Government may also consider backing an appeal to the decision.

Graham is currently preparing further information for ACWA members.

Can an Employer Require Staff to Download the COVIDSafe App?

ACWA Member Ben Haycroft from Workplace Central provided some recent and useful information about the Federal Governments COVIDSafe App. And, we are sure hoping he won’t mind us plagiarising a bit of it here.

As employees return to work, employers are justifiably trying to do everything in their power to make their workplaces as safe as possible. And, with downloads of the COVIDSafe app reaching over 5 million, it appears some employers may have been wondering if they can require employees to download the COVIDSafe app.

The short answer is ‘NO’. The COVIDSafe app has been clearly promoted as voluntary, and employers must respect this.

Ben also reminds us “When considering a COVID-19 Safety Plan providing access to handwashing facilities, sanitiser, and social distancing where possible are the starting points to implement”.

(Note the CovidSafe App is the Australian Government app used for contact tracing those who have been in contact with people with COVID-19).

This information and other important resources are also available in the members area of the ACWA website https://acwa.net.au/members/
ACWA Special Edition COVID-19 Newsletter – read here

Some ACWA members have asked for advice on the use of masks and gloves in car wash operation; however, it appears the jury is out on the concept.

On the one hand, we see regular news commentary from overseas about masks.  We notice international Governments demanding commuters wear masks when riding on trains and purchasing products from shops and we see others handing out masks in the streets.  In some states of the USA, there is even legislation forcing compulsory mask-wearing in public.

On the other hand, in Australia, our health professionals are suggesting most masks provide little benefit in protecting people without the disease. Our officials only recommend masks be worn by COVID-19 victims to stop the spread of the virus.

So should car wash operators have their staff wear personal protective gear like masks and gloves?

Anecdotally it would appear that customers fall into two camps. Some feel more comfortable dealing with and being greeted by service staff wearing a mask. And others prefer to see a smiling face during the Coronavirus’ dreary lockdown environment. (Of course, that smiling face should be seen from a distance of at least 1.5 metres!!!).  There does not appear to be a right or wrong, and each car wash site will need to tread its own path.

Gloves appear to be a critical addition to the customer’s perception of hygiene, so from that standpoint, car wash sites might consider adding gloves to their staff livery.  From a staff protection perspective, however, gloves really don’t provide any more protection than hand washing. That is, if you touch something contaminated while wearing gloves and then touch your mouth or eyes, you have the same chance of contracting the disease as if you had bare hands.

Similarly, the transmission of the virus from one surface to another (for example, one customer’s car to another) appears the same whether bare handed or gloved.   The critical thing to remember if you elect to have your staff wear gloves, they need to be provided with safety instructions.

To afford customer protection, gloves need to be changed after each wash. To provide staff protection, they must be reminded not to touch their face, whether they are wearing gloves or not.

The Government Health Authority focus in Australia is well and truly on social distancing rather than masks or gloves as the best means of protecting everyone.   With this in mind, car wash operators might consider initiating the following 10 points in their businesses:

1. Have plenty of signage about your site’s commitment to social distancing
2. Enforce social distancing amongst customers
3. Don’t allow staff or the public to assemble
4. Place lines or markings on the ground in situations where customers may need to queue or come into contact with others
5. Instruct staff about hygiene – handwashing with soap is the best defence, supported by not touching one’s face
6. Providing wash stations for using soap and water is often impractical so, have plenty of hand sanitiser available for staff and the public
7. Staff should wash or sanitise their hands or change gloves after each internal clean
8. Staff should wash or sanitise hands regularly if handling money or equipment
9. Make sure equipment is disinfected as often as possible
10. Staff displaying any cold-like symptoms should not be at work

The new $100 banknote is expected to be released into circulation towards the end of the year.   The Reserve Bank continues to print the new $100 and will shortly make it available for testing purposes. The Reserve Bank proposed schedule is as follows:: Now – Taking orders from machine manufacturers of test $100 banknotes from the second production run. These banknotes have a different signature block than the banknotes released in November 2019 and more production variation. Early June 2020 – Distribute test banknote orders to machine manufacturers. Mid 2020 – Release assurance banknotes to the banks and machine owners for testing purposes. Late 2020 – Release the new $100 into circulation.