FIA Partner Doka, discuss how their Framax stripping product assists their customers with safety compliance and reducing costs all at the push of a button!

Click on the link below to watch the video to see the stripping corner in action and cutting forming-times by as much as 75%.

Easy, fast forming of shafts

The Framax stripping corner was designed specifically for use with shaft formwork. It enables the formwork to be closed and opened in accordance with accident protection regulations, i.e. without using the crane, simply by operating easy-to-turn spindles with a reinforcement rod or the convenient ratchet. It is then lifted and reset in one piece, thus saving crane-time. The Framax stripping corner is also suitable for use on pilasters and as an inside corner on wall formwork.

Super – short forming – times by exploiting an innovative principle

The Stripping corner lets you form shafts much more quickly

• Cuts forming-times by as much as 75%
• Saves crane time by lifting the formwork in one piece
• Any panel, of any width, can be used between the stripping corners
• Better concrete appearance inside the shaft, as there is now no need for extra formwork stripping elements in the middle of the wall

East to handle simply by turning a spindle

Benefit from how easy the device is to operate

• Set up and strip the formwork in a few simple steps
• Is operated by just 1 person
• Is operated from above without any special extra tools

The fatal scaffold collapse that killed one formworker and critically injured another is a harsh reminder for every construction industry employer to do more to manage WHS risks on site.

In this article, FIA Insurance Partner, Coverforce, discuss how having the right insurance products in place can protect your business.

On 1 April 2019, 18-year-old formworker Christopher Cassanti was tragically killed, and his colleague suffered significant injuries after a 15m high structure of scaffolding and building equipment collapsed at a construction site at Macquarie Park in Sydney.

The scaffolding incident came after a 12-month safety blitz by SafeWork NSW, where over 1000 construction sites state-wide were investigated for instances of unsafe operations, including working from deficient or unstable scaffolds. SafeWork NSW reported widespread non-compliance with scaffold safety guidelines, issuing $265,000 worth of on-the-spot fines to offending businesses.

In response to the incident, Safe Work NSW has released an Incident Information Report to inform duty holders and workers about work health and safety obligations to prevent similar occurrences. This release along with links to related industry guidelines and codes of practice can be found here.

Worker Safety Should Be Top Priority

Over the last five years, the Construction industry has shown consistently high numbers of workplace fatalities and injuries and a higher proportion of major claims compared to other industries. As at 21 March, there have been 30 Australian workers killed at work in 2019, with 5 deaths being workers from the construction industry.

Like scaffolding, formwork is a high-risk profession, typically involving working from heights including multi-storey structures over rough or uneven ground. Should a formwork structure fail, this could result in concrete blowouts, falling formwork components or structural collapse, all with the potential to cause serious injury or death to workers and bystanders.

In an alarming statistic released by Safe Work NSW, formworkers and other structural trade workers are twice as likely to sustain a workplace injury resulting in more than six months off work compared to other classes of workers in the concrete construction services industry.

Business owners or those who intend to operate a business that is involved in erecting, altering and/or dismantling formwork and associated equipment are urged to ensure all site operations and safety procedures are conducted in line with the provisions of your state’s Work Health and Safety (Formwork) Code of Practice, made under the Work Health and Safety Act 2011. This code lists the requirements for the safe design, planning, preparation and conduct of work related to erecting and dismantling formwork and associated equipment. Those who fail to comply with their health and safety obligations may be subject to substantial penalties or fines.

It is important to note, however, that monitoring the hazards and risks associated with high-risk formwork and adopting effective safety control measures should not only be the duty of the business owner, but all stakeholders involved. This includes all designers, manufacturers, those installing, constructing and commissioning the formwork structures, officers and company directors and all employees who work on the construction site.

You can access more detailed information about formwork industry safety and guidelines for practicable ways to minimise WHS hazards on site here.

How Coverforce can help

The right insurance program can help to minimise your losses following a workplace incident. Policies including Management Liability Insurance and Company Liability Insurance can cover individuals and the company for fines, legal costs and investigation costs should a claim be made against them, or they are sued.

Fines and Penalties Cover can also protect individuals in the event they are ordered to pay monetary sums/fines to a regulatory authority if found operating in breach of safety legislation.

Our highly experienced insurance brokers will work with you to assess your individual risk management requirements and arrange suitable cover at a highly competitive price.

Additional assistance managing workers compensation premium, HR and WHS risks

Our experienced Workplace Solutions team also offer a range of services to assist businesses including:

• Embedding of safe working processes and the identification of risks and hazards in your workplace
• Identifying and closing compliance gaps
• Implementation of policies and procedures that provide guidelines for performance and behavioural framework
• Reviewing Workers Compensation premiums, classification and claims
• Workers Compensation claims and injury management advice
• Development and implementation of policies and processes that assist you in recruiting the right people for your business

Request a quote online now or contact your local Coverforce office to find out how we can help your business.

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.safeworkaustralia.gov.au/statistics-and-research/statistics/fatalities/fatality-statistics#year-to-date-2019-preliminary-worker 

https://www.worksafe.vic.gov.au/safety-alerts/preventing-formwork-failures

https://ablis.business.gov.au/service/act/formwork-code-of-practice/35886

https://www.safework.nsw.gov.au/hazards-a-z/formwork

FIA legal partner, K&L Gates, offer advice and legal insight with examples of workplace safety breaches.

The imposition of recent custodial sentences for breaches of the WHS Act (QLD) and the OHS Act (VIC) signals both a regulatory focus on compliance by individuals who are decision makers (e.g. directors and business owners) with their personal duties and an intention that Courts will use all of the sanctions available in the legislation to impose significant punishment on those who do not discharge their duties, particularly in cases involving a high degree of recklessness.

 These decisions are a timely reminder that individual officers must ensure their businesses have robust safety management systems in place at all times so that those systems protect workers but also enable officers to meet their personal responsibilities under the health and safety laws. 

Prosecution of director in Victoria - What happened?

In December 2018, the owner and operator of a scrap metal business in Foster, was found guilty of offences against the Victorian OHS Act and sentenced to 6 months' imprisonment following the death of a worker in February 2017.

The owner was also convicted of breaching the duties pertaining to a self‑employed person and fined $10,000 and ordered to pay WorkSafe Victoria's costs.

At the time of the worker's death, the owner and the deceased were transferring scrap metal from a 1.8 metre metal bin into a larger 6 metre metal bin. The worker was standing in the smaller bin which was being lifted by a forklift operated by the owner. The worker was killed when he fell from the bin, following which the bin fell from the forklift on to him.

WorkSafe Victoria determined that the bin was not secured to or engaged with the forklift tynes; the bin was in poor condition; the tynes were not spread as wide as they could have been and the task was carried out on uneven ground.

The owner is the first person to have been sentenced to a non-suspended custodial sentence for an offence under the OHS Act.

Prosecution of Multi-Run Roofing and its director- What happened?

In February 2019, the director of a roofing company was convicted of a reckless breach of the Queensland WHS Act and sentenced to 12 months imprisonment to be suspended after 4 months in custody.

The director's company (Multi-Run Roofing) was fined $1 million.

The business was undertaking roofing works when the worker fell almost 6 metres from the roof of an industrial shed.

The Regulator's investigation identified the absence of any fall protection on or near the edge of the shed where the work was ongoing and charged the company and its director with reckless conduct exposing the worker to risk of death or serious injury.

The Court heard that Multi-Run Roofing and its director could have installed safety rails, but adopted an alternative and cheaper method involving workers using two scissor lifts and a safety harness to access the roof.

The cheaper method was not in place on the day the worker fell from the roof.

Relevant Obligations

The health and safety legislation in each State and Territory requires businesses to ensure, so far as reasonably practicable, the health and safety of their employees and workers whilst they operating their businesses. Businesses must proactively identify and control the risks in their operations.

This includes a requirement for the provision and maintenance of safe work systems and adequate facilities at workplaces to protect persons from risk of death or serious injuries.

Individual corporate officers and key decision makers are required to exercise due diligence to ensure their businesses have the appropriate systems and procedures to comply with the legislation. These cases show that a growing trend by regulators and the courts to delve into the appropriateness of an organisations systems and procedures, and hold decision makers responsible for the inadequacies of those systems and procedures.

K&L Gates will be joining FIA Insurance Partner, Coverforce and FIA Business Advisory Partner, HLB Mann Judd in a workshop covering 'the implications of not complying with your safety obligations' and how your business may be affected. CLick on the link below to secure your FREE member spot for the 13th June workshop.

BOOK NOW

Contact K&L Gates below for further information on this article. 

K&L Gates has an extensive full service offering in work health and safety across Australia. If you would like to discuss these cases and implications for you and your business further, please contact us.

Your FIA Business Advisory and Tax Partner, HLB Mann Judd provide the latest tax update.

On 5 April 2019 the ATO issued a final tax ruling TR 2019/1 in which it confirmed the views expressed in the draft 2017 version of the ruling that for certain purposes the scope of “carrying on a business” will extend to a company that holds primarily passive assets such as property, shares or other financial investments as long as its activities are carried out with a view to making a profit, including simply holding the assets to derive an income stream and for future capital gains.

Importantly, the position that the ATO has taken in this ruling opens these investment companies up to a wider range of tax concessions than previously thought. While the ATO is still in the process of updating the guidance on their website, we have been able to obtain informal comments from the ATO on each of the points discussed below.

Scope of TR 2019/1

There are two situations covered by this ruling:

1. Applying the lower company tax rate of 27.5% to a “small business entity” (SBE) for the 2016 and 2017 tax years, which affected both the tax paid by the company and the rate at which dividends paid were to be franked; and

2. Determining whether a company would meet the definition of SBE under Division 328 of the tax legislation, which as discussed below is relevant to claiming a range of small business tax concessions not only in the 2016 and 2017 years but also in subsequent years, and is the main focus of this article.

Tax concessions available to SBE’s

While there are other tax concessions that can be available to small businesses more broadly, there are four common concessions that as a result of this tax ruling should now be available not only to active trading businesses, but also to passive investment companies.

Three of these concessions should be available indefinitely to any investment company that qualifies as a SBE because its annual turnover (when aggregated with related entities) does not exceed $10m.

1. An immediate deduction for prepaid expenses

This applies where the period to which the expense relates is no more than 12 months. By contrast, for larger companies, prepaid expenses must generally be apportioned over the relevant period. For example, an investment company might choose on 30 June 2019 to prepay the fees owing to an external investment manager for the next 12 months, and as a result of this ruling the payment would now be deductible in full in the 2019 financial year.

2. An immediate deduction for entity start-up costs

This covers capital costs traditionally referred to as “black-hole” expenses, including advisors’ fees and ASIC fees relating to incorporating a company or establishing the structure more generally. These costs would not normally be tax-deductible, nor would they be included in the cost base of any asset for capital gains tax (CGT) purposes.

While trading businesses that are not SBE’s can claim these costs over a 5 year period under section 40-880 of the tax legislation, an SBE is able to claim an immediate tax deduction in the year that the cost is incurred. By bringing investment companies into the definition of carrying on a business, the tax ruling will also allow them to claim a deduction for start-up costs, something that we would not previously have thought was possible.

3. Instant asset write-off – SBE’s (turnover not exceeding $10m)

As illustrated in the diagram below, SBE’s are able to claim an instant write-off for any fixed assets such as plant and equipment costing less than $20,000 that were acquired between 12 May 2015 and 28 January 2019, less than $25,000 for acquisitions between 29 January 2019 and 7.30pm on 2 April 2019, and less than $30,000 for acquisitions between that time and 30 June 2020, after which the write-off threshold is due to revert to $1,000.

It is clear that, because an investment company is treated as carrying on a business for this purpose under TR 2019/1, where its aggregated turnover does not exceed $10m it would qualify as a SBE, and for the instant asset write-off. While most investment companies of this scale will probably have little in the way of fixed asset acquisitions, it is still an example of a tax concession that we would not have thought was relevant until the ATO released their ruling.

The fourth concession will be available only up until 30 June 2020, as detailed below.

4. Instant asset write-off – Medium Businesses (turnover between $10m and $50m)

This measure was announced in the April 2019 Federal Budget and has already been passed into law. As shown on the diagram below, the instant asset write-off for assets costing less than $30,000 acquired between 7.30pm on 2 April 2019 and 30 June 2020 has been extended to “Medium Business” entities with turnover between $10m and $50m.

While it was not immediately clear whether the expanded definition of “carrying on a business” under TR 2019/1 would apply to investment companies, we have received informal confirmation from the ATO that this will be the case because the amendment introducing the concession for Medium Businesses allows the instant asset write-off on the assumption that the turnover threshold had been increased to $50m, i.e. it effectively treats the company as if it was a SBE when determining whether the Medium Business concession is available.

Other small business tax concessions not available to investment entities

Finally, it is also worth highlighting that some of other small business tax concessions such as the reduced company tax rate of 27.5% and the small business CGT concessions remain unavailable to passive investment companies, but apply only to active trading businesses.

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We’re happy to help.

Please contact us if you would like to discuss these changes and how they may affect you in more detail. 

Peter Bembrick | Partner | Tax Consulting 

These days, when you see an imperfection in a concrete surface after removing formwork or after patching up a permanent form that has blown out, you wouldn’t think twice before dragging out your concrete grinder and vacuum cleaner to tidy it up. However, this kind of technology has only been around for the last three decades which is not a long time in the world of construction.

Concrete grinding is a technology that is still developing quite rapidly, so it’s important to keep abreast of the latest industry trends.

What are these latest trends?

The first is the ongoing development of diamond cup wheels in parallel with the machines they are best suited to.

The second is the realization that breathing in the crystalline silica dust generated from concrete grinding is very bad for you and that you need to be sure you have an entire system consisting of machine, cup wheel and vacuum cleaner that is capable of removing concrete to a high level of finish as well as exhausting and recovering the dust that’s been generated.

SafeWork NSW recommend using an M or H Class vacuum cleaner when capturing dust and have a great instructional video to watch which outlines the hazards of working with crystalline silica dust. 

Hilti offers two of these matched systems.

These are the DG150 6” specialised concrete grinder matched to 6” SPX diamond cup wheels as well as the VC 40-UM or VC 60M-X ‘M-Class’ vacuum cleaners. The second systems, for less frequent use, Hilti has the AG125 5” angle grinder range which, when be fitted with a dust hood, is matched to a range of 5” SPX diamond cup wheels and can be used with the same ‘M-Class’ vacuum cleaners.

                      

We’re happy to show you these systems on-site as well as in-store.

FIND YOUR NEAREST HILTI STORE

While using blockwork to construct structural walling is reliable, it is also complicated, time-consuming and expensive. It involves skilled tradespeople and their associated materials (bricks, concrete, etc.), and often relies heavily on scaffolding and cranage.

Dincel Structural Walling, an innovative polymer formwork system made by Sydney-based manufacturer Dincel Construction System, is a practical alternative to all of this. Simple, fast, clean and safe, it offers clear benefits over the traditional method.

“Being able to build a product without traditional block work on site is really appealing,” said Developer Julian Morton, who was recently involved in a residential project that incorporated the product.

“First off, what I like about Dincel is that it expands your aesthetic possibilities. It allows for wider interior spans.”

According to the project’s Site Manager, Sehez Construction’s Ian Hart, it is also significantly cheaper than blockwork.

In fact, it cuts the cost of building materials by around 20 per cent, and even more significantly, reduces the time it takes to build structural walling by 50 per cent. This frees up builders to perform other tasks, and in turn, reduces overall project costs.

Dincel also does away with the need for bricklayers and wet trades. Because the structural walling is encapsulated within a water-proof polymer skin, there is simply no need to get water proofers involved.

This also means that, unlike blockwork, it is not vulnerable to corrosion. Also, unlike blockwork, there are no air voids, and therefore no honeycombing.

Where Dincel is used, labour hours (and therefore costs) for bricklayers are reduced to zero. The wall can be constructed by the builders themselves, without assistance from anybody else.

The construction process is much simpler than the traditional blockwork method. It involves placing the PVC panels vertically into position where you want to build a wall; connecting them together using a patented snap-lock joint; inserting steel reinforcement; and pouring concrete from above.

Because these panels can be customised to as long as 8 m, scaffolding is never required. Similarly, because there is no formwork involved, excavation of the ground around the wall is minimized.

Dincel removes a lot of the mess that tends to be found around building sites. Its PVC panels can be easily cut and removed from the site for recycling. In contrast, where blockwork is used, everybody on site has to deal with things like metal scraps, sand, water, cement bags, broken blocks and so forth. There is always a lot more waste to eventually get rid of.

The absence of all this mess improves safety. No water and reduced clutter reduce the risk of slips, trips and falls on site. And, unlike heavy blocks, which sometimes require crane, Dincel panels are light enough for anybody to carry without risk of injury.

As Morton said, Dincel simply can’t be ignored as a genuine alternative to conventional methods.

“It allows you to come in underneath what you might be preparing for from a cost perspective. You can then use that money as profit or you can create other benefits within the building,” he said.

A message from Safe Work Australia.

"Sunday 28 April is World Day for Safety and Health at Work and Workers’ Memorial Day. Promote a safe and healthy workplace and plan and adapt to the future of work at your workplace.

This year, we (SWA) are promoting a safe and healthy future of work.

As digital technologies and automation become more common, employment and workplaces are changing. It’s important that with an ageing workforce and rising levels of stress—we need to plan our future workplaces and ensure we make them safe and healthy and reduce the risk of workplace injury.

We will be sharing content from the International Labour Organisation and relevant organisations across our social media channels – please give us a like or a share!"

To find out more, check out Safe Work Australia's World Day page.

Increase your productivity with Hilti tools.

Anybody in the construction industry with an ear to the ground will be well aware of permanent formwork, and how it is revolutionising construction in Australia.

To briefly summarise, this process uses systems with hollow panels to replace traditional block and brick work. Concrete can then be directly poured into these hollow panels, and just like that, you have a permanent structure. It essentially works like a mould, and the impact has been huge. Companies such as Dincel, AFS and Ritek are leading the permanent formwork charge, and as a result we are seeing a rapid increase in construction speed.

In the past, formwork has been mostly associated with putting down horizontal slabs, but new technologies and methodologies have made it possible to pour vertically and create walls. Perhaps most importantly, the process has also been embraced by architects, so we can all expect to see a lot more permanent formwork applications over the coming years.

It's tempting to use traditional working methods when putting up permanent formwork, but by using some of the latest tools out there, you can further increase productivity.

The first example of this is when laying down the bottom track that the vertical forms get placed over. Instead of anchoring these tracks down, you can shoot them down onto the concrete with a battery powered nailer, regardless of whether the tracks are steel or plastic. The material that tracks are made of is one of the big differences between different permanent formwork suppliers, so by accommodatingly multiple options Hilti equipment can be used in a far wider range of situations. This makes the entire process even faster than it would normally be, resulting in some truly lightning-quick construction work.

 

Speed isn't the only important factor in permanent formwork applications, though. There's a substantial need to make sure that every step of the process is safe, and this means installing the appropriate supports and reinforcements.

After laying the track starter bars are also required. With Hilti's cordless tools, you can drill a hole and glue the starter bars in before the moulds go up and are filled with concrete. The same batteries that power the nailer can be used for the rotary hammer drill and dispenser for the epoxy.

The rotary hammer drill can also be equipped with a dust hood which minimises worker exposure to crystalline silica – which is a really hot health and safety topic at the moment. Epoxies such as the HIT-RE 500 V3 can also be set in damp environments, which comes in very handy when gluing in rebar when the hole itself is full of water. This provides some key benefits when it comes to working in adverse weather conditions, and means that the construction process doesn't have to be delayed in the event of rain. This also allows for construction teams to get around any problems with starter bars that are still drying.

Finally, Hilti can also supply screw anchors which screw braces directly into concrete to keep the permanent forms stable whilst setting.

FIND YOUR NEAREST HILTI STORE

The latest FIA Partner event at Hilti was another outstanding success and we hope all that attended enjoyed it as much as we at the FIA and the Hilti team did.

Thank you to Hilti for hosting and for the informative insights on post-installing rebar and how their systems improve productivity, save money and increase safety onsite.

The workshop included both classroom sessions and practical demonstrations with an opportunity to try out the tools first hand.

THe FIA would like to thank Hilti for this event and for partnering with the FIA. All of the FIA partners contribute greatly to the success of the organisation and allow us to deliver the associations services to you. We will be bringing further practical workshops to you in 2019 and a number of partner member benefits to assist you in recouping the cost of your membership.

Look out for further announcements and be sure to book your place at our upcoming education and social workshop series.

FIA UPCOMING EVENTS

     

Penalties imposed on businesses and individuals who fail to comply with their WHS duties are significantly increasing.

Recent data published by Safe Work Australia shows in 2016-17, the total value of all court-ordered WHS fines increased by 8% compared to recent years, despite a 24% decrease in the number of WHS prosecutions commenced. FIA Insurance Partner, Coverfoce's workplaces services team also noticed a significant increase in fines and presence from Safe Work inspectors.

Coverforce expect this trend to continue into 2019, where they have already seen the first non-suspended sentence for 72 year old Maria Jackson, who was found to have breached her duties under the Occupational Health and Safety Act 2004 (Vic).

It can happen to any business.

Coverforce brokers explain more and offer FIA members assistance.

"Accidents happen, even to the most safety conscious businesses. Just last week a client notified us of an incident resulting in the death of a worker and another called to report a serious burn injury that hospitalised a young worker for days. Both of these incidents will be investigated by Safe Work.

No matter how large or small the business, every business owner is responsible for the safety of their workers. It's very important to understand your obligations under all relevant WHS legislation.

Do you need assistance with Workers Compensation, HR or WHS Support Services?

Our experienced team offer a range of services to assist your business in the efficient management of their workers compensation premiums, HR and WHS risks.

Just some of the ways we can assist include:

• reviewing workers compensation premiums, classification and claims
• workers compensation claims and injury management advice
• developing and implementing policies and processes that assist you in recruiting the right people for your business
• embedding safe working processes and the identification of risks and hazards in your workplace
• identifying and closing compliance gaps
• implementing policies and procedures that provide guidelines for performance and behavioural expectations

To find out more about how Coverforce Workplace Services can assist your business, contact the team on (02) 9376 7979 today.

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.