Letter to the construction and engineering sectors of NSW from The Hon. Dominic Perrottet MP, NSW Treasurer.

NSW Government committed to vital infrastructure program

As governments and communities around the world grapple with the health and economic challenges posed by the COVID-19 outbreak, I want to assure the construction and engineering sectors in NSW that our Government is resolved to continue delivery of its infrastructure program.

The NSW Government will always act on the advice of NSW health officials to ensure the community remains safe while where practical continuing the vital work of building for the future.

The NSW Government announced a major $2.3 billion Health Boost and Economic Stimulus package to protect the community and help protect jobs in the face of the COVID-19 outbreak over the next six months.

This package has two key components: $700 million in extra health funding and $1.6 billion in tax cuts to support jobs.

This package will support our formidable program of work that has been the backbone of our State’s economy for a number of years. And with many sectors now facing unprecedented challenges, our record infrastructure pipeline will continue to sustain tens of thousands of jobs over the coming months.

It will also continue to have critical downstream economic benefits, driving demand  for materials and equipment from local and national manufacturers, and for goods and services in supporting sectors. The continuation of this vital economic contribution will be a lifeline for many in the months ahead.

Continuity challenges

We recognise the sector will face its own operational challenges, and Infrastructure NSW will work with the construction industry and line agencies to closely monitor emerging difficulties, such as supply chain related delays or temporary shutdowns, during this challenging time.

There are encouraging signs of production resuming in China and other countries hit in the early stages of the pandemic, however some disruptions are to be expected over the coming period.

Furthermore, we recognise the importance of the sector taking steps to implement social distancing, travel restrictions and hygiene measures to reduce the spread of COVID-19. The sector has extensive experience in dealing with work, health and safety matters and I have full confidence the necessary measures will be implemented in the course of hazard and risk assessment for projects and sites.

We will work flexibly with contractors

In cases where the delivery of projects are affected by these and other matters relating to COVID-19, the NSW Government will ensure all agencies work collaboratively with contractors where issues arise to keep projects on schedule to the greatest extent possible. I urge all operators within the industry to adopt the same approach whether dealing with Government and other organisations.

Our 10-Point Commitment to the Construction Industry sets out the collaborative approach we expect from all parties. The Government’s Construction Leadership Group will monitor developments over the coming months, and Infrastructure NSW will facilitate industry-wide discussions over this period.

Together we can keep NSW moving forward

I encourage all contractors to speak with their client agencies as soon as they become aware of any potential issues so we can keep NSW’s critical infrastructure program moving ahead.

This is a time for the Government and industry to work together to sustain our state and nation during this difficult time. Your continued contribution will be vital, and I look forward to engaging further with you as we rise to meet the challenges ahead.

Yours sincerely

Dominic Perrottet MP
Treasurer

On the 11th of March 2020, COVID-19 was declared a Pandemic by the World Health Organisation (WHO). Alarming levels of spread, severity and inaction were among the reasons cited for the change in characterisation.*

In the past two weeks the number of cases outside China have increased 13-fold and the number of affected countries tripled. While the Australian outbreak is still relatively small in numbers, with 127 cases spread over 6 states**, this is predicted to worsen.

This document, from FIA Insurance Partner, Coverforce, lists key risk factors, potential financial impacts with a focus on insurance, to businesses within the Construction sector that may occur as a result of the COVID-19 outbreak.

Considering the risks ahead of time is important. A well-planned understanding of the risk, and response can help protect the future of your business by reducing the impact on your projects, your reputation and those you employ.

Key Risk Factors

Additional Office Risk – Own Staff	Salaried / Full time Staff absenteeism due to quarantine periods, post infection Salaried / Full time Staff absenteeism due to fear of infection Salaried / Full time Staff absenteeism due to complete office shut down Wages paid / non-productivity of office staff, resulting in construction project delays
Project Site Risk – Own Staff	Salaried / Full time Staff absenteeism due to quarantine periods, post infection Salaried / Full time Staff absenteeism due to fear of infection Salaried / Full time Staff absenteeism due to complete site shut down Wages paid / non-productivity of site staff, resulting in construction project delays
Project Site Risk – Sub-Contractors	Sub-Contractor absenteeism due to quarantine periods, post infection Sub-Contractor absenteeism due to fear of infection Sub-Contractor absenteeism due to complete site shut down Non-productivity of Sub-Contractors, resulting in construction project delays

Consultants / Professionals	Consultants / Professionals absenteeism due to quarantine periods, post infection Consultants / Professionals absenteeism due to fear of infection Consultants / Professionals absenteeism due to complete office shut down Non-productivity of Consultants / Professionals, resulting in construction project delays
Extension of Time Requests (Delay)	Unclear or Ambiguous definitions of ‘delay’ in head contracts. If an EOT is granted, does this cover costs? If an EOT is granted but costs are not approved, this may have a material impact on cashflow and profitability.
Supply Chain	Imported Products. Delay in obtaining or receiving directly imported products Local Products. Delay in obtaining products from local suppliers, where products are obtained from overseas Local Products. Delay in obtaining products from local suppliers due to an increase in demand for locally manufactured product Inability to acquire product, resulting in construction project delays
Workplace Health & Safety	Potential Liability to Directors & Officers for inadequate preparation and response

Financial Impacts

Contract Works	Additional costs of insurance If Project Specific policies are in force, where extensions of cover are required
Public Liability	Additional costs of insurance If Project Specific policies are in force, where extensions of cover are required
Project Funding / Financing	Additional interest and holding costs as a result of extended construction periods
Surety Bonds	Additional interest and charges as a result of extended construction periods, and therefor extension of bonds NOTE: If cashflow deteriorates and companies are unable to meet their debts as they fall due then Directors may be left with no option but to appoint a VA. Surety Bonds will be called and the Surety providers will seek recourse.
Bank Guarantees	Additional interest and charges as a result of extended construction periods.
Extensions of Time (Delay)	If EOT is granted and a company has the financial means to get through this period, irrespective the available cash will diminish, profitability reduced, or the project will be loss making and therefor the balance sheet will likely take a hit. This will have an impact on the availability of Surety or Bank Guarantee facilities, and a high chance that facility limits may be reduced exasperating a company’s ability to win new work to get through the loss making or low profitability period.
Liquidated Damages & Contractual Penalties	Liquidated Damages and Contractual Penalties as a result of extended construction periods.

Insurance Impacts

Construction Specific Products

• Project Delays / Liquidated Damages / Contractual Penalties are generally not Insured
• Contract Works and Liability Insurers are unlikely to offer policy extensions on single project policies free of charge
• Surety / Bond providers will not offer policy extensions on single project policies free of charge (refer above)

Business Interruption

Many businesses, particularly those who deal with China or rely on Chinese suppliers, are asking whether they will be able to claim for business interruption and revenue losses as a result of the COVID-19 crisis and its associated disruptions to travel, import and export activities.

We can confirm Business Interruption coverage under Property Insurance, where Gross Profit cover is selected does not respond to COVID-19 claims. COVID-19 was listed under the Biosecurity Act 2015 on 24th January 2020, triggering an industry wide exclusion.

Also, on a general note, human infection with COVID-19 will not, of itself, constitute as 'physical damage' which is the triggering requirement for cover under traditional business interruption policies.

Corporate Travel Insurance

A typical Corporate Travel Insurance policy will provide cover for cancellation costs where the travel destination has reached DFAT Advice of Level 4 - Do Not Travel and was not at this level at the time of booking. You can check the current DFAT Advice levels on www.smarttraveller.com.au the Department of Foreign Affairs and Trades website.

Fear of travel is not a covered event under a Travel insurance policy. This includes travel to areas that have known cases of COVID-19 but have not yet reached DFAT Advice Level 4.

The coverage provided on each policy and the position taken by different insurers can vary. If you have concerns it’s a good idea to contact your insurance broker or insurer directly.

Workers Compensation

According to the State Insurance Regulatory Authority (SIRA), COVID-19 infection is covered under Section 4 of the Workers Compensation Act 1987 as a disease injury***, under certain circumstances.

A claim would be successful where the virus is contracted during the course of employment and the employment is found to be the main contributing factor in contracting the disease.

Proof that employment is the main contributing factor is likely to be difficult to determine and each claim would need to be considered on its individual merits and evidence.

Employers are advised to take all appropriate preventative measures to eliminate the risk of employees contracting Coronavirus in the workplace. as with any other workplace health and safety risk.

Where employees are potentially exposed to the virus as part of their employment, employers should provide guidance and assistance to the employee to make a claim for workers’ compensation.

Should you have further enquiries about Workers Compensation or the management of your businesses WHS risk in respect to the Coronavirus, please contact our Coverforce Workplace Services team directly on 02 9098 5500.

Addressing the threat of COVID-19 in Head Contracts

Head Contractors can attend to further define the definition of the Force Majeure clause for future projects to specifically address the threat of COVID-19.

While this amendment will not assist projects already under contract unless agreed by amendment, we would recommend the following is considered in future contracts.

Option 1: Add the following under the Force Majeure clause: -

1. any occurrence of any prescribed human infectious or human contagious diseases under the Biosecurity (Consequential Amendments and Transitional Provisions) Act 2015 (Cth)
2. any occurrence of any local or international epidemic, pandemic or quarantinable event
3. COVID-19 (Coronavirus)

Option 2: Add the following (simplistic version) under the Force Majeure clause:

1. any occurrence of any local or international epidemic, pandemic or infectious disease, including COVID-19 (Coronavirus).

Workplace Safety Risk Management Tips

Safework Australia advises an appropriate range of actions by employers could include:

• Regular review of official Government sources for current information and advice
• Updating and promoting your organisations policies and measures for infection control
• Providing clear advice to workers about actions they should take if they become unwell or think they may have the symptoms of coronavirus, in accordance with advice from the Australian Government Department of Health
• Eliminating or minimising international work travel where advised on the Australian Government’s Smart Traveller website
• Providing regular updates to workers around the situation and any changes to organisational policies or procedures
• Providing workers with information and links to relevant services should they require support

Workers also have a duty to take reasonable care for their own health and safety and to not adversely affect the health and safety of others. Workers should be reminded to always practice good hygiene and other measures to protect themselves and other against infection. This includes:

• Washing their hands often, with soap and water
• Carrying hand sanitiser and using it when necessary
• Covering their mouth when coughing or sneezing, but not using their hands to do so
• Seeing a health care professional if they start to feel unwell
• If unwell, avoiding contact with others (including shaking hands or other touching, such as hugging).

Resources for Employers

• Health Alert, Updates and Reports
• Information Sheet for Employers regarding COVID-19
• Managing Workplace Risks During the Coronavirus Outbreak
• Safework Advice
• Latest DFAT Travel Advice and Updates

Further Information

About your insurance

If you are an FIA Member and looking for further information in relation to your insurances, please get in touch by contacting Julie Gidaro on (02) 9376 7895.

About COVID-19

For the latest updates or enquiries in relation to the COVID-19 outbreak you can contact the National Coronavirus Health Information Line on 1800 020 080. Calls can be made 24 hours a day, seven days a week. If you require translating or interpreting services, call 131 450.

References

* https://www.who.int/dg/speeches/detail/who-director-general-s-opening-remarks-at-the-media-briefing-on-covid-19---11-march-2020

** https://www.worldometers.info/coronavirus/#countries

*** https://www.sira.nsw.gov.au/news/bulletins/workers-compensation-bulletin-issue-88-march-2020

The information provided in this article is of a general nature only and has been prepared without taking into account your individual objectives, financial situation or needs. If you require advice that is tailored to your specific business or individual circumstances, please contact Coverforce directly.

This information has been published as at 12 March 2020 and may change over time as new information is made available

A Tax Alert from our financial and business advisory partner, HLB Mann Judd.
In response to the Coronavirus crisis, the Federal Government has outlined new measures in a stimulus package worth nearly $18 billion. SMEs, pensioners and selected sectors such as tourism will be the biggest beneficiaries in an effort to boost the economy and save jobs. Below is a summary of the measures outlined in the plan.

Support for business investment

The following measures are designed to assist Australian businesses and economic growth in the short term:

Increasing the instant asset write-off

• Threshold increased from $30,000 to $150,000
• Applies to businesses with aggregated turnover of less than $500 million
• Applies from today’s announcement to 30 June 2020
• The $150,000 threshold applies on a per asset basis so eligible businesses can immediately write-off multiple assets
• Applies for new or second-hand assets first used or installed ready for use by 30 June 2020.

Investment incentive

• A deduction of 50 per cent of the cost of an eligible asset on installation, with existing depreciation rules applying to the balance of the asset’s cost
• Applies to businesses with aggregated turnover below $500 million
• Eligible assets are new assets that can be depreciated under Division 40 of the ITAA97 (i.e. plant, equipment and specified intangible assets) acquired after today’s announcement and first used or installed by 30 June 2021 (NOTE: This measure does not apply to second-hand Division 40 assets or capital works subject to Division 43)

NOTE: the announcement did not reference the removal of the depreciation limit for cars.

Cashflow assistance for business

The following measures are designed to support employers, employment and improve business confidence:

Boosting cashflow for employers

• Will provide a tax-free payment up to $25,000 back to business, with a minimum payment of $2,000 for eligible businesses
• Eligible businesses are those SME’s with aggregated annual turnover under $50 million (generally the prior year turnover)
• • The payment will be delivered by the ATO as a credit in the activity statement from 28 April 2020 when the business lodges its activity statement
  • Eligible businesses that withhold tax on their employees’ salary and wages will receive a payment equal to 50 per cent of the amount withheld, up to a maximum payment of $25,000
  • Eligible businesses that pay salary and wages will receive a minimum payment of $2,000 even where they are not required to withhold.
• The ATO will deliver the payment as a credit to the business upon lodgement of their activity statements (with the minimum payment applied to the first lodgement)
• • Quarterly lodgers will be eligible to receive the payment for the quarters ending March 2020 and June 2020
  • Monthly lodgers will be eligible to receive the payment for the March 2020, April 2020, May 2020 and June 2020 lodgements (with the payment calculated at 3 times the rate (i.e. 50 per cent in the March 2020 activity statement).

Supporting apprentices and trainees

• Eligible employers can apply for a wage subsidy of 50 per cent of the apprentice’s or trainee’s wage paid during the 9 months from 1 January 2020 to 30 September 2020( and this subsidy will be available to a new employer where the business is unable to retain an apprentice)
• Employers will be reimbursed up to a maximum of $21,000 per eligible apprentice or trainee (i.e. $7,000 per quarter)
• Eligible small businesses are those employing fewer than 20 full-time employees who retain an apprentice or trainee (with the apprentice or trainee being in training with a small business as at 1 March 2020)
• Employers will be able to access the subsidy after an eligibility assessment is undertaken by an Australian Apprenticeship Support Network provider.

Assistance for severely affected regions

Funds will be available to assist during the next few months and over the year ahead, to ensure these communities are well placed to recover:

Support for Coronavirus-affected regions and communities

• An initial $1 billion allocation to support regions and communities disproportionately affected by the economic impacts of the Coronavirus (e.g. tourism, agriculture, education) that will be provided through existing or newly established Government programs
• The Minister for Trade, Tourism and Investment will work with affected industries and communities to develop recovery plans and measures.

ATO administrative relief

• The Australian Taxation Office (ATO) will provide administrative relief for certain tax obligations for taxpayers affected by the Coronavirus outbreak, on a case-by-case basis
• The ATO will setup a temporary shopfront in Cairns within the next few weeks with a dedicated staff specialising in assisting small business (and will consider presence in other regions as well).

Stimulus payments to households

This measure is designed to assist around 6.5 million lower-income Australians, including pensioners and social, security and veteran income support recipients:

• The Government will provide a one-off $750 payment (with one payment per recipient)
• The payment will be tax-exempt and will not count as income or Social Security, Farm Household Allowance and Veteran Payments
• Eligible recipients are those residing in Australia and be receiving a payment specified by the Government (such as the Age Pension, Carer Payment, Newstart Allowance, etc) or hold a concession card on 12 March 2020
• The one-off payment will be paid automatically from 31 March 2020 by Services Australia or Veterans’ Affairs.

The ATO’s response

In light of the Government’s stimulus package, the ATO will implement a series of administrative measures to assist Australians experiencing financial difficulty as a result of the Coronavirus.

Unlike the bushfire relief measures which applied automatically, it will be up to businesses and individuals impacted by the Coronavirus will need to contact the ATO for assistance. A number of options available to assist impacted businesses include:

• Deferring by up to 4 months the payment date of amounts due through the business activity statement (including PAYG instalments), income tax assessments, FBT assessments and excise
• Allow business on a quarterly reporting cycle to opt into monthly GST reporting in order to get quicker access to GST refunds that they me be entitled to
• Allowing businesses to vary PAYG instalment amounts to zero for the April 2020 quarter. Businesses that vary PAYG instalments to zero can also claim a refund of any instalments made for the September 2019 and December 2019 quarters.
• Remitting any interest and penalties, incurred on or after 23 January 2020, that have been applied to tax liabilities.
• Working with affected businesses to help them pay their existing and ongoing tax liabilities by allowing them to enter into low interest payment plans.

We will continue to share updates as they come in. Should you wish to learn more about stimulus package benefits, please contact your HLB Mann Judd tax consulting representative.

Minister for Better Regulation, Kevin Anderson, has announced a continued crackdown on unsafe scaffolds in the construction industry, with the commencement of “Scaff Safe 2020” from 1 March.

Construction workers across the state are being warned of the dangers from unsafe scaffolds as SafeWork NSW kicks-off operation Scaff Safe 2.0 today following the success of the targeted compliance blitz last year.

Minister for Better Regulation and Innovation Kevin Anderson said principal contractors are responsible for ensuring that construction sites are safe, which is why it is important to have clear policies, procedures and education about scaffolds on worksites.

“Far too often we see different trades remove a small part of the scaffold to make it easier to do their work, without understanding what they are doing to the integrity of the structure, and that’s how accidents can happen,” Mr Anderson said.

“Our message for principal contractors is to make sure there is adequate supervision, consultation and communication on site. By doing so they can easily address the risks associated with scaffolds and we can avoid unnecessary accident or injury.”

Scaff Safe 2020 will be held over three months and see inspectors visiting construction sites across NSW targeting scaffold collapse and falls from heights risks.

SafeWork inspectors continue a zero-tolerance approach to those who put workers lives at risk from unsafe scaffolds, and can issue on-the-spot fines of $3,600 for businesses and $720 for individuals for falls from heights risks or for unlicenced workers undertaking scaffolding work.

Over 2019, SafeWork inspectors issued more than 1,300 notices related to scaffolds including 131 on-the-spot-fines totalling $432,720. Some of the main safety risks found were missing scaffold components, non-compliant gaps between the platform and building edge/face, no vehicular protection where required and unlicenced workers altering scaffolds.

For more information see the SafeWork NSW scaffolding web page to download the PC scaffold safety checklist or access the findings from the 2019 scaffold safety campaign.

Now is the time to review your sites’ scaffold to ensure it is safe, built to standard and adequately tied to the structure.

Guides

• Erecting, altering and dismantling scaffolds
• Safe Work Australia Scaffolds and scaffolding work general guide
• Safe Work Australia Guide for scaffold inspection and maintenance
• Working at heights
• Pocket guide to construction safety– download or order your hardcopy from SW NSW publications hotline 1300 799 003

Resources

• Falls from heights poster – Arabic, Chinese simplified
• Safety alerts
• Incident information releases
• Scaffolding work definition
• Safe Work method statement (SWMS) template

Australia is closely monitoring and responding to the outbreak of the respiratory illness caused by a novel (new) coronavirus, first identified in Wuhan, Hubei Provence, China.

Coronaviruses (CoV) are a large family of viruses that cause illness from the common cold to more severe diseases such as Middle East Respiratory Syndrome (MERS-CoV) and Severe Acute Respiratory Syndrome (SARS-CoV).

This particular Coronavirus, COVID-19 is a hazard and has work health and safety (WHS) implications. Businesses, workers and others who may impact the workplace should be aware of and take reasonable actions to eliminate or minimise risks so far as reasonably practicable.

This Info Sheet, sourced from the Australian Institute of Health & Safety website, provides guidance on the reasonable actions that should be taken to manage the risks of CoV within the workplace for the business, workers and others who may be impacted. The information is sourced from various sources with useful links provided for further information. AIHS partner, Kitney Consulting can assist with specific guidance where required.

Businesses

Your responsibilities

WHS legislation requires persons who conduct a business or undertaking (PCBUs) to manage WHS risks so the health and safety of workers and other people are not affected by the businesses conduct, including the risks for CoV as a biological hazard at work.

Reasonable Action you can take

The following actions are summarised from the Australian Government and Department of Health guidelines and good business practice for managing concerns with CoV:

• Assess and manage the risks of CoV for workers and others who may be impacted by the business activities, particularly if work involves contact with and providing services to others, the WHS risk management framework provided by Worksafe Queensland provides a good basis for this. (link is external).
• Review and update procedures and business arrangements to support controls for CoV, such as:
• • Infection control, cleaning and hygiene practices
  • Fitness for work
  • Leave and absence (particularly returning from travel to mainland China)
  • Flexible work and working from home
  • Travel for work purposes
  • Communications and updates for workers
  • EAP and support for concerned workers
• Implement additional controls where required to manage the risks of CoV being contracted or spread at work, refer to guidance such as the Australian Government to assist with this. (link is external)
• Inform workers that if they believe they are at risk of CoV infection or have symptoms, to advise the workplace and refer to their GP, to determine actions and fitness for work based on accurate and up-to-date medical information which you can get from your relevant State or Territory Department of Health website.
• For overseas travel, refer to Smart Traveller and carefully consider travel on a case by case basis. (link is external)
• Ensuring workers affected by CoV are treated respectfully and not subjected to unlawful discrimination or victimisation in the workplace.
• Inform workers that if they believe they are at risk of CoV infection or have symptoms, to advise the workplace and refer to their GP, to determine actions and fitness for work based on accurate and up-to-date medical information.

The risk of CoV worsening is foreseeable and businesses should monitor information and have contingency plans to respond to changing circumstances and to communicate with workers and respond to concerns.

Workers

Your Responsibilities

WHS legislation requires workers to follow reasonable instructions and take reasonable care to ensure their acts or omissions do not adversely affect the health and safety of other persons, this includes following the instructions of their employer and taking appropriate action for concerns related to CoV.

Reasonable Action you can take

The following are provided as a guide on the reasonable actions for workers:

• Follow the reasonable policies and guidelines from their employer to manage risks of CoV, including hygiene measures, infection control, leave, travel, working arrangements etc.
• Restrict travel to China, report symptoms of CoV to a Doctor and inform their employer of any infection risk to others, this is particularly important for workers who have been in close contact with a confirmed case of CoV even if they don’t have symptoms; workers should not attend their workplace until they have medical clearance that it is safe to do so. Symptoms include but may not be limited to sore throat, runny nose, fever, headache and shortness of breath.
• Workers who have travelled to areas with CoV concerns, such as mainland China, should notify their employer and restrict themselves from work until they are given medical clearance to return.
• For workers who raise CoV concerns to their employer and aren’t satisfied with the response they receive, they may report their concerns to their medical practitioner and their state or territory WHS regulator call centre or online, as a workplace concern.

Useful Links

• Australian Government Department of Health: https://www.health.gov.au/news/coronavirus-update-at-a-glance (link is external)
• Relevant State/Territory Department of Health websites: Google (relevant state/territory) Department of Health
• Smart Traveller: https://www.smartraveller.gov.au/news-and-updates/novel-coronavirus-outbreak (link is external)

Original article sourced from AIHS website

The media has made us all aware of the impact and potential expansion of Coronavirus on the world, but toilet paper hoarding aside, what are the potential impacts on the Australian economy (still recovering from the Australian bushfires) over 2020 and how the impact can be managed or mitigated.

Even businesses with supply for the short term have concerns regarding the longer term. As the situation develops there is more uncertainty than assurance that the issue will be resolved at this time. The severity of economic disruption from the virus and the medium and longer term impact on demand and economic growth will need to be assessed and managed as it evolves.

FIA Business Advisory Partners, HLB Mann Judd, have compiled a summary of issues and potential strategies to try to protect businesses and look for opportunities.

DOWNLOAD HERE

WorkSafe Victoria recently urged all workplaces across the State to put health and safety first following the tragic deaths of 24 workers in 2019.

The annual toll was one less than the previous year, when 25 workers died as a result of workplace incidents.

“These are not numbers, these are people – fathers, mothers, sons, daughters, siblings, colleagues, teammates and community members,” said WorkSafe Victoria chief executive Colin Radford.

“Out of respect for those we have lost and their families, it is time we said enough. It is time to take strong and decisive action.”

“There is simply no excuse for cutting corners when it comes to workplace safety.”

Radford said a failure to properly address major safety risks was a common reason for many of the horrific, but preventable incidents.

Nine of the fatalities involved some form of moving machinery or heavy vehicles, which were the most dangerous hazards in Victorian workplaces.

“The risks associated with moving machinery such as tractors, headers, trucks, mobile cranes and scissor lifts are well known so there is simply no excuse for ignoring them,” Radford said.

“All employers must take time to properly assess workplace health and safety risks and plan how to eliminate or manage them, because failing to do so can be fatal.”

There were six deaths on farms in 2019, making them once again the most dangerous workplaces in the state. Another five deaths occurred on constructions sites.

Two of the on-farm deaths involved children, aged two and three years old, who died in incidents involving machinery last year.

“Every year the same industries feature prominently in workplace deaths, which is not good enough,” Radford said.

“From July, new workplace manslaughter laws will come into force.

“So, employers are on notice to take their health and safety obligations seriously or risk jail if your negligence causes a workers death.”

Of the 2019 fatalities:

Fifteen occurred in regional Victoria, including six in Gippsland, and nine occurred in metropolitan Melbourne.

The eldest was a 73-year-old man who died after he was crushed between his vehicle and an automatic car wash.

The youngest was a two-year-old who died when he was crushed by a spreader attachment that fell on him inside a shed.

All but one of the victims were male.

Eight of the victims were workers aged 60 plus.

Source: Australian Institute of Health & Safety 

Without a national approach to industrial manslaughter legislation, the issue will continue to evolve on a piecemeal basis over the coming years with different outcomes in different jurisdictions, according to Marie Boland, former executive director of SafeWork SA and author of the independent review into the model WHS laws(link is external) for Safe Work Australia.

The evolution of industrial manslaughter laws will also depend on prosecutorial policies across regulators, Boland observed.

“As we know regulators operate in a political context and there are also other driving factors (for example changing community expectations) which can impact on regulatory policies and practices,” she said.

“I also think that following the outcomes of the Banking Royal Commission there is an increased community expectation that regulators will strongly enforce the law through prosecution when the law is broken as opposed to the use of educational and/or negotiated enforcement outcomes.”

Boland, who was speaking ahead of the release of the March issue of OHS Professional, which features a cover story on industrial manslaughter and the state of the nation, recalled that her review of the model WHS laws(link is external) took place parallel to the Senate Inquiry into Industrial Deaths.

“I continue to believe that it is important that Safe Work Australia as the national tripartite policy body responsible for the maintenance of the harmonised WHS laws should be leading the work to develop an industrial manslaughter offence that sits within the WHS legal framework which is consistently enacted across jurisdictions,” she said.

“I was also influenced by the views of families of workers who have been killed at the workplace.

“While I acknowledge that industrial manslaughter will remain a very difficult offence to prosecute, I believe it is important that the offence is available nationally for prosecutions where the evidence reaches the standard of criminal negligence.”

Critical to risk management in the context of industrial manslaughter (and indeed in terms of WHS management more generally) are the due diligence requirements contained in the model WHS laws, Boland observed.

“One objective of the industrial manslaughter offences is to enable regulators to examine the corporation as a whole [and] this places even greater emphasis on a holistic approach by business to its safety management,” she said.

The model WHS Act introduced positive duties on officers to ensure that the PCBU meets their duties under the model WHS Act.

“The officer due diligence requirements provoked the most positive responses when I was consulting for the review,” said Boland.

“Most felt that the due diligence requirements had brought the discussion about safety to the highest levels of businesses – to the boardroom.”

Within this context, Boland said there is a role for WHS regulators to help business by telling them what due diligence compliance looks like, and this would be especially helpful for the smaller businesses.

However, where larger corporations get this right, she said there is a role for them to reinforce good practice across their networks and supply chains and through organisations such as the AIHS.

For the full interview with Boland and feature article on industrial manslaughter, see the next issue of OHS Professional magazine.

Source: Australian Institute of Health & Safety

Working in extreme heat for long periods of time is a workplace hazard which can result in increased risk of heat-related illness for workers.

It’s important that employers do everything reasonably practicable in their workplace to ensure those who are working in these conditions can do so without risk to their health and safety.

FIA Insurance Partner, Coverforce, offer some advice.

Australia is experiencing more frequent, longer-lasting heatwaves and we’ve been warned these will continue with even greater intensity in the future. As a result, our workers will continue to be exposed to increasingly hotter environments for longer periods of time.

These heatwaves will not only affect those who work outdoors but also indoor workers who may be in poorly ventilated or hot areas such as a commercial kitchen, factory or laundry.

Recognising the signs of heat-related illness and understanding how best to respond is crucial to keeping workers safe and is the responsibility of both employers and employees.

What is heat stress?

Heat stress happens when the body must work too hard to keep cool. It then starts to overheat, and a worker can begin to suffer from heat-related illness. This can range from mild conditions such as a heat rash to very serious conditions such as heat stroke which can be fatal.

Overheating in a workplace can be due to several factors including:

> Wearing high levels of personal protective equipment

> Heat from extremely hot material (e.g. foundries, bakeries, furnaces)

> Sun exposure (e.g. outdoor work in construction, agriculture)

> High humidity (e.g. laundries, restaurant kitchens)

> Internal body heat (e.g. from heavy manual work)

How can extreme heat affect workers?

Some common symptoms of heat stress can include feeling hot, physically weak or fatigued, headache, intense thirst, nausea, shortness of breath, dizziness, confusion and slurred speech.

Extreme heat and fatigue can also impair the way workers think, leading to losses in concentration, slower reaction times and poor judgment. These symptoms can be dangerous as they can contribute to, or cause, errors and other serious health and safety accidents, particularly if attention, coordination and immediate memory skills are required.

How to reduce the risk associated with working in extreme heat?

Employers, business owners and other PCBUs have a primary duty of care to ensure the health and safety of all workers in their workplace, so far as is reasonably practicable.

It is recommended you develop and implement a heat management plan which can be done in consultation with workers and/or their HSRs. The standard risk management approach is as follows:

1. Identify the hazard – is heat an issue in your workplace?

Your workplace may be susceptible to heat-related problems if -

> Workers are exposed to temperatures that exceed 30C and/or high humidity

> There are surfaces or equipment that produce, radiate or reflect heat and/or UVR

> Workers wear protective clothing/PPE that can make them hot

> Workers are engaged in physical tasks

> There is plant or equipment that produce heat or steam

> Any of your work areas are poorly ventilated

2. Assess the risks

If you have identified exposure to extreme heat as a risk in your workplace, a proper risk assessment can help to determine the severity of the risks, whether any of the risks can be eliminated or minimised, if any existing control measures you have in place are effective and how urgently you may need to act.

When assessing the risk, you will need to consider both personal and environmental factors.

3. Control the risks

Where the risk cannot be eliminated, measures should be taken to minimise it as much as reasonably practicable. Both employers and employees can do their part.

Employers:

> Ensure all practical measures for preventing heat illness can be implemented

> Supply breathable clothing that cover the arms and legs

> Provide sunscreen and other protective gear and ensure workers wear them

> Provide cool drinking water close to the work area

> Enable workers to take regular breaks or rotate with other workers where possible

> Provide training on being Sunsmart and the seriousness of heat stress. Understanding when medical treatment becomes a matter of urgency is important.

Employees:

> Follow all reasonable instructions from their employer

> Drink plenty of water to keep hydrated. In hot environments, the body will require more water.

> Learn to recognise the symptoms of heat stress

> Look out for your fellow workers - not everyone responds the same to heat and symptoms can vary according to the type of heat-related illness.

> Be sun safe whenever possible – apply sunscreen, wear a hat and clothes that cover the arms and legs

> Modify work intensity and take more regular breaks (if possible) when working in heat

> Raise any WHS concerns and report hazards associated with heat-related illness

4. Review control measures

Continue to review your workplace heat management plan so that it is always up to date and ensures the welfare and safety of your workers.

For more information on how to manage the risks of working in heat, access Safe Work Australia’s comprehensive guide here.

How Coverforce can help

Our experienced Coverforce Workplace Services (CWS) team can assist FIA member businesses in embedding safe working processes and with the identification of risks and hazards in your workplace. Contact them directly on (02) 9376 7979 to find out more.

A Coverforce Insurance Broker can provide your business with sound risk advice and quality insurance cover. Ask what you can do to protect your business against loss arising from workplace injuries. For personalised insurance advice contact Julie Gidaro on (02) 9376 7895.

Be sure to mention your FIA member status.

The information provided in this article is of a general nature only and has been prepared without taking into account your individual objectives, financial situation or needs. If you require advice that is tailored to your specific business or individual circumstances, please contact Coverforce directly.

References:

https://www.safework.nsw.gov.au/hazards-a-z/working-in-extreme-heat 

https://www.safeworkaustralia.gov.au/system/files/documents/2001/working_in_heat_factsheet.pdf

http://abilitygroup.com.au/working-in-heat/

https://www.comcare.gov.au/Forms_and_Publications/publications/services/safety_and_prevention/safety_and_prevention/hazards_of_working_in_heat/hazards_of_working_in_heat2

Company directors need to ensure all taxation and superannuation payments are compliant as they may soon face even greater personal financial consequences, advises FIA Business advisory partner HLB Mann Judd..

Changes in the Treasury Laws Amendment (Combatting Illegal Phoenixing) Bill 2019 which has recently been passed by both houses of the Australian Parliament will strengthen the Australian Taxation Office’s powers to pursue directors and make them personally liable for outstanding company debts.

This will make it critical for directors to be fully aware of the financial state of their companies and whether or not their business is paying all of its taxation and superannuation obligations on time.

When the legislation comes into effect, directors will no longer be able to backdate their resignations to avoid becoming personally liable for outstanding tax debt and/ or unpaid superannuation payments, for example.

The primary purpose of the legislation is to further stamp out the practice of Phoenixing, which is a legal loophole that allows companies that owe money to creditors, including the ATO, to be wound up, and then the directors set up an almost identical company to effectively wipe out the debt.

While the laws have a practical impact to safeguard the Federal Government’s bottom line and a flow on effect to help protect other creditors such as suppliers and employees, other elements may burden companies, particularly small businesses.

The Bill received Royal Ascent on February 17, 2020, with some components of the Bill to come into effect from 1 April 2020.

This article was authored by Rowan Tracey. For more information contact: rtracey@hlbwa.com.au