|
Current News
Advice from ACCC 22 October 2009
Restaurant & Catering Australia contacted you earlier this year to advise of changes to the law in relation to price statement. At that time the Association had requested the ACCC to take a cautious approach to enforcement whilst the industry was coming to terms with the changes.
At the end of October it will be six months since the notification was made. It is therefore now a reasonable expectation that changes would have been made to menus and beverage list to comply with the new requirements.
The advice from the ACCC is:
Price representations are important consideration for all businesses. Ensuring that the prices you provide to consumers are accurate is not just good business practice - it's the law. Recent amendments to the Trade Practices Act 1974 (the TPA) require that if you make a representation about a part of the price a consumer will pay for a product or service, you must also specify, as a prominent single price, the total figure they will pay (to the extent that it can be calculated). This applies regardless of whether the representation is made in media advertisements for the purposes of comparison with your competitors, or on an in-store price list like a menu, for a consumer to make a decision about different products you are offering.
Restaurants, cafes and hotels may need to change the way they make certain representations on their menus as a result of this new requirements. For example, it will no longer be sufficient to write 'X% surcharge on weekends' at the bottom of a menu because X% is a quantifiable component of the price that a consumer will pay for their food or beverage on the weekend. This may mean you need to provide a separate menu for times a surcharge is applied, or consider pricing structures that do not require the use of different price components on your menu (i.e. a $ value that is added per person on weekends).
The attached Q&A provides further information on this requirement.
Good News for Restaurateurs and Caterers!
Today we are one step closer to having a truly modern award for the restaurant, cafe and catering industry.
On the 29th May 2009, following repeated urging from Restaurant & Catering Australia, the Deputy Prime Minister requested the Australian Industrial Relations Commission to create a separate modern award covering the restaurant and catering industry.
In the same request Minister Gillard asked that the Commission 'take account of the specific operational requirements of the industry'. In particular the Deputy Prime Minister requires the Commission to 'establish a penalty rate and overtime regime that appropriately recognises the restaurant and catering industry's core trading times and labour intensive nature'.
This is a very significant action for the Deputy Prime Minister to have taken. This will mean that the industry now has the opportunity, through the Industrial Relations Commission, to argue for a truly MODERN AWARD.
To thank the Deputy Prime Minister the Association is collecting signatures on a thank you motion. Please follow the link at www.ourmodernaward.com (at the bottom of the page).
You will also note on this page that we are looking for support to continue the push for the best possible modern award through the Australian Industrial Relations Commission.
To view the letter from Minister Gillard to the Australian Industrial Relations Commission, click HERE.
"Small Business and General Business Tax Break"
The legislation was introduced to the House Of Reps on March 19th but has not been passed.
Small businesses (turnover of less than $2m per year) can claim an additional one-off 30% tax deduction for eligible assets costing $1,000 or more that are acquired between 13 December 2008 and 30 June 2009, and installed by 30 June 2010. All other businesses can receive the 30% deduction on eligible assets costing $10,000 or more. This is in addition to the standard depreciation claimed for such assets.
If the 30 June 2009 deadline is missed, assets acquired from 1 July 2009 to 31 December 2009 can claim an additional 10% deduction if installed by 31 December 2010. This is effectively a 6 month extension on order & delivery times.
Eligible assets (subject to change) are defined as tangible assets used in Australia and include new or demonstrator assets for which a depreciation deduction is available.
With interest rates being so low, equipment & motor vehicles are being sold at reasonable prices so if you are considering an asset purchase, the legislation will certainly benefit. For example a small business purchasing a computer for $2,000 can claim an additional $600 in their 2009 tax return, or a business that acquires & takes delivery of a $60,000 truck by the end of June 2009 can claim an additional $18,000 deduction in 2009.
Other general points to note (subject to change);
- Cars will not be disqualified from the allowance merely because they use the 12 per cent method.
- Lessee's of leased cars may not be subject to the deduction because the Lessor will receive it
- Land and trading stock are excluded from the definition of depreciating assets, and will not qualify for the investment allowance.
- Assets to which Division 40 does not apply will not qualify for the investment allowance. This means capital works for which you can deduct amounts under Division 43 of the ITAA97 will not qualify for the investment allowance.
- Assets for which deductions can be obtained under other Subdivisions will not qualify for the investment allowance. These assets are already subject to special treatment.
- The investment allowance will be available to the taxpayer who is entitled to the capital allowance deduction under Division 40.
- The allowance can be claimed through the income tax return in which the first capital allowance is claimed for the asset.
To download the Frequently Asked Questions regarding the 30% Deduction click here.
Late Entry Restrictions to patrons after 2am
The State Government and the Director of Liquor Licensing have implemented a 3 month trial that will prevent licensees from allowing patrons to enter their venues after 2am. The effect of the restriction is that people who are already in the venue by 2am can stay in the venue until it shuts but no new patrons can enter.
The restrictions will commence on the 3rd of June 2008 which means patrons out on Monday the 2nd June will be able remain in a venue until closing but will not be able to enter a venue after 2am.
During the 3 month trial late entry restriction will only apply in the local government areas Port Phillip, Stonnington, Melbourne (including Docklands) and Yarra. In addition to specific premises in Warrnambool, Ballarat, Bendigo and Traralgon.
The late entry restriction will apply to all on-premises and general licenses within the relevant area. This means that all pubs, bars and nightclubs will be affected. An exemption has been granted to restaurants, the floor of Crown Casino and club licenses such as RSLs.
Licensees who breach the late entry restriction by allowing people into their venues after 2am will face fines of up to $6800.
If your restaurant does not have restaurant conditions on your licence but wish to trade as a restaurant and allow new patrons to enter after 2amyou will be required to vary your licence to include restaurant conditions. You must apply to the Director of Licensing to add restaurant conditions. The advertising period for this license change has been reduced from 28 days to 14 days to allow for any applications to be considered before or during the 3 month lockout.
Around 440 venues are directly affected by this trail.
For more information about these changes, email R&C Vic or contact the office on 03 9654 5866.
ABS : Aussies love of Food generate big dollars
Australia's cafes, restaurants and caterers generated $13.7 billion in income during 2006-07, according to figures released today by the Australian Bureau of Statistics (ABS).
The main sources of income for the 15,423 cafes, restaurants and caterers were:
- Takings from meals consumed on the premises (47%)
- Takings from catering services (24.1%)
- Sale of liquor and other beverages (19.9%)
Click here for more information
ABS: Profits for Restaurants and Catering Industry not that great.
The Australian Bureau of Statistics have released their figures for this industry for the period ending June 2007.
An alarming observation that was raised was that for 2006-07, operating profit margin was 3.8% for Restaurants and Cafes. Click here for more information.
The Catering Services performed slightly better for the year, where operating profit margin was 5.3%. Click here for more information.
Freeze on Issuing Late Night Licenses in Melbourne
The Minister for Consumer Affairs will not grant any new late-night (post 1am) licences for 12 months from the 2 May 2008 in the local council areas of Port Phillip, Stonnington, Melbourne (including Docklands) and Yarra.
The Freeze is a temporary measure allowing the Government time to take action that will be more effective in the long-term.
If you have any further enquiries please do not hesitate to contact Restaurant & Catering Victoria on 03 9654 5866 or email R&C Vic.
WorkChoices and AWA's Scrapped!
Labor's Forward with Fairness Industrial Revolution Begins
On Thursday 27th of March, the Governor General gave the final stamp of approval to Labor's "Transition to Forward with Fairness" Bill, effectively beginning the demolition of WorkChoices, and removing the ability of employers to create new Australian Workplace Agreements with their employees. However, in the immediate future, employers are still able to negotiate with individual employees through an Interim Transitional Employment Agreement (ITEA), but where an agreement is not present or negotiated, the employee's minimum terms of employment will be those of the appropriate Federal Award. However the ability to negotiate individual employees is only limited to those that have previously utilised Australian Workplace Agreements in their workplace.
As part of the amendments, the nominal expiry date of agreements has been shortened, the Fairness Test has been replaced by a No Disadvantage Test, and the AIRC was given the thumbs up to begin moderinising Awards.
For more information about these changes email R&C Vic or contact the office on 03 9654 5866.
| 
