ANNUAL REPORTSydney, Newcastle, and Canberra saw in excess of 150 attendees across four events. The sessions were aimed at providing information to the industry on proposed changes

ANNUAL REPORTMaster Electricians Association Limited ACN 163 222 642Master Electricians Association Queensland ABN 40 669 256 171

2 Master Electricians Association Limited | ACN 163 222 642

CONTENT

3Master Electricians Association Limited | ACN 163 222 642

President’s report ............................................................................................................... 4

CEO’s report .......................................................................................................................... 6

NSW/ACT................................................................................................................................ 8

QLD .......................................................................................................................................... 10

SA/NT ...................................................................................................................................... 12

VIC/TAS ..................................................................................................................................14

WA .............................................................................................................................................16

TEAMS ......................................................................................................................................18

Advisory services...............................................................................................................19

Events .................................................................................................................................... 20

Information Technology ................................................................................................22

Policy .......................................................................................................................................23

Marketing ..............................................................................................................................24

Sponsorship and partnership .....................................................................................26

BRANDS ..................................................................................................................................28

ME Safety ..............................................................................................................................29

ME Training ......................................................................................................................... 30

FINNACIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2016 .................. 32

ME Training ......................................................................................................................... 34

Statement of profit or loss and other comprehensive income ..................38

Statement of financial position ..................................................................................39

Statement of changes in equity ...............................................................................40

Statement of cash flows .................................................................................................41

Notes to the financial statements ............................................................................42

Director’s report ............................................................................................................... 46

Director’s declaration .....................................................................................................47

Auditor’s independence declaration ...................................................................... 48

CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR

ENDED 30 JUNE 2016...................................................................................................52

Statements of profit or loss ........................................................................................ 54

Statements of comprehensive income ..................................................................55

Statement of financial position ..................................................................................56

Statement of changes in equity ................................................................................58

Statement of cashflows .................................................................................................59

Notes to the financial statements ...........................................................................60

Certificate by Accounting Officer of Union ..........................................................81

Certificate by Treasurer .................................................................................................82

Certificate by Members of Council ..........................................................................83

Certificate by President ................................................................................................ 84

Independent Auditor’s report to the members of Master Electricians

Association Queensland Industrial Organisation of Employers and

Controlled Entities ............................................................................................................85


PRESIDENT’S REPORT

WelcomeI find it difficult to comprehend that it’s been a year since I officially took over the custodianship of Master Electricians Australia as President. Whilst general market conditions among the membership have been mixed, my overall feeling and impression is that while it’s been a challenging year, there has been some positive signs and opportunities for many of us.

Over the past year I’ve spoken to many members and listened to the needs of the contemporary contractor. The MEA Council and Board have made a determined effort to influence a member-first culture in the organisation, delivering greater value, opportunities, business improvement, industrial relations and technical support to all members. While we have achieved some great things this year, we know that there’s still more to be done.

We’re pleased to report moderate growth in the membership nationally despite significant obstacles in some segments. Our success, I believe, comes as an output of hard work, active engagement and a continued culture of delivering more value for less. This will be a continuing theme throughout my tenure and I invite all of our members to engage with the team at MEA to ensure you are getting the maximum value out of your membership.

We have been extremely busy this year in our advocacy efforts to both state and federal governments, with a particular focus on equipment safety, licensing, apprenticeships, and the ABCC. In Queensland, the decision to merge Ergon and Energex, and in turn establish a private services business for emerging technologies, has been one of our focus areas. The decision to have a financially state-backed, private sector organisation competing with regional contractors presents a significant commercial risk to many Queensland contractors. Continued efforts are being made to protect all contractors from any perceived or actual anti-competitive behaviours that may be experienced.

Probably the most important development—one that will affect all sectors of the building and construction market—is the successful passage of the proposed ABCC legislation. The government has stated that it is ‘absolutely committed’ to pass the legislation. With the tenuous makeup of the newly elected federal government and even more tenuous senate, the pathway to change looks rocky to say the least. Whilst the importance of this legislation may be questionable to some in the detached housing or cottage sectors, it should be considered that if it was to fail, it will open the door to a heightened level of activity for all small to medium contractors. I believe this is both a significant risk and opportunity for all industry stakeholders, as if the ABCC legislation is passed it should be done so in a way that is fair and promotes national productivity gains, and tighter control over illegal or anti-productive activity.

To say my first year as President was busy would be an understatement. While challenging, I have enjoyed growing, learning and influencing the direction of the organisation with a group of focussed and committed individuals committed to providing outstanding services for our membership. The coming year will see some significant and exciting developments aimed at delivery of further value to the membership and collaborating with international partners. I look forward to reporting further positive information in the coming year and to catching up with many contractors at the national MEA Conference in beautiful Fremantle.

TONY ARNOLDPresident

We have made significant headway with national regulators in our efforts to advocate for stricter controls on electrical equipment and imports. Unfortunately, both state and federal organisations have been too slow to act in identifying and recalling many non-compliant products, causing significant loss of property and in some cases loss of life. This is an area we must be vigilant in, by only supporting products that are compliant and fit for their purpose. The best way to do this is by ensuring products are purchased from established wholesalers, holding the appropriate recall insurance, and supporting local manufactures with a proven track record.

Licensing is an area which affects many of our contractors who work across state and territory borders. Whilst national licensing would seem to be an obvious solution, this has been a difficult objective that we continue to work towards. Tasmania has recently adopted a model of Continued Professional Development (CPD) for all electrical license holders, so that they may continue to hold a valid license. MEA has worked closely with the Tasmania regulator to ensure acceptable outcomes for all industry stakeholders. A similar program is likely be adopted by all states and territories, and is something MEA supports as a means of ensuring quality and regulatory compliance in our industry.

The area of apprentice training is one that I personally consider to be of utmost importance to contractors. A way of developing skills and knowledge in first- and second-year apprentices without causing productivity losses and cost impacts for contractors is an enticing idea, but is difficult to achieve under the current model. Exciting developments have been achieved and we look forward to offering alternate apprentice training pathways in the near future. This would see apprentices conducting much of their first year college studies and practical work experience while at school, making them job ready when they hit the work force. This will achieve some significant productivity gains for contractors and provide apprentices with a heightened level of confidence when commencing.


CEO’S REPORT

WelcomeAs with many not-for-profits, revenues are hard to come by and member’s needs and wants are incredibly varied. Staff are often stretched and systems compromised as resources are spread sparingly in an attempt to meet all needs and wants. My conclusion is MEA is not much different, and this extends to the honorary personnel involved, in this case, those involved in the Advisory Area Committe’s (AAC) and MEA’s Boards. In short, we worked hard to keep the doors open, provide value to our members, and represent Australia’s electrical contractors at the highest level across a variety of channels.

The focus on representing members—whether in national or state government forums, in relevant and related industry groups, in enterprise bargaining and commission hearings, as well as in forums looking to the future through a variety of Industry and Standards Committees—often leaves little room for profitable endeavors.

Overall, I believe members will be understanding with the 2015–16 ‘transition year’ because our commitment has been palpable at every level, and the achievements of the staff has been solid through very difficult times. MEA will emerge from this with a stronger member offer and a more sustainable business platform. The national structure, with its single line of decision making, is a tremendous advantage in supporting regions as they emerge into sustainable profits. MEA has a deep history, and as it heads into its 80th year, should be able to capitalise on this to the benefit of all members.

MALCOLM RICHARDSCEO


“OUR SUCCESS COMES AS AN OUTPUT OF HARD WORK, ACTIVE ENGAGEMENT, AND A CONTINUED CULTURE OF DELIVERING MORE VALUE FOR LESS”


NSW/ACTGrowing our membershipThis past year has seen NSW/ACT membership grow by 15 per cent while maintaining an 84 per cent retention rate. Growth has been concentrated in the Sydney Metro area, and has predominantly been through small-to-medium contractors. This was in-line with our state-based growth strategy for the 2016 financial year and builds on our increased value proposition, product and service offerings, and brand awareness activities that we carried out throughout the year. Underlying these activities is the continued focus of the NSW/ACT team on a personalised and value-driven approach for our members.

ME SafetyThis year has seen all of our SafetyConnect members successfully migrated across to ME Safety. Our state-of-the-art ME Safety packages have taken safety and business management to the next level and provided our members with access to functionality never-before-seen in one single, holistic package. Using a three tiered approach, ME Safety has been able to cater for all levels of business, at all stages along the safety journey and is being embraced across our membership.

By providing ME Safety Express to all ME Members, we have also now embarked on a drive to significantly raise safety standards and awareness both within our membership and across the industry.

Focus continues to assist our current members to fully embed ME Safety into their business operations and to drive further membership growth through the adoption of ME Safety.

EventsThe delivery of information session on the AS/NZS 3000 Draft across Sydney, Newcastle, and Canberra saw in excess of 150 attendees across four events. The sessions were aimed at providing information to the industry on proposed changes to ‘The Wiring Rules’ (Australian Standard AS/NZS 3000:2007, Electrical Installations) as well as details on how to provide comment. It is pleasing to report the positive feedback that was received following the events on the quality and detail of the information provided.

Launching Women in Contracting in NSW


The 2016 financial year also saw the state launch of Women in Contracting (WiC) with a lunch in Sydney and the trial of some meet-and-greet networking events. Our Casino Night was also back with fabulous attendance and a great time had by all.

Advocacy and representationIn 2016, we put forward a number of submissions to government to champion the following matters for members;

• Enhance the Security of Payment legislation• Smart metering in NSW• Reform of the Home Building Compensation Fund• Distribution of election priorities booklets to all NSW candidates

for the federal election• Non-compliant electrical articles• PV battery storage and solar feed-on tariffs, and• Safety switches.

Presenting the proposed changes to AS/NZS 3000

Our Area Advisory Committee was also busy throughout the year

looking at the issue of electrical inspections in NSW and the burden

of WHS paperwork requirements in the building industry.

Our NSW/ACT team members were also representing our membership

through their participation in a range of industry working groups,

standards committees, and stakeholder forums.

Switch Thinking campaignA major public awareness campaign championing the use of safety

switches on all circuits was also undertaken in 2015/2016. The

campaign used a combination of transit advertising on buses in the

Sydney Metro area, outdoor advertising and supporting social media

advertising, competitions, videos and activities. The campaign resulted

in our messaging reaching an audience of over two million.


QLDGrowing our membershipThis past year has seen Queensland membership grow by 7.8 per cent year-on-year. We have seen large growth figures in the 1-3 membership bracket, a result of the April-June membership drive.

Our strategy for 2016/2017 is to focus on digital communications, with the intention of reaching the broadest target market for the lowest cost to the association. This will be supplemented by another AS/NZS 3000 event when the new Standard is released.

ME SafetyDue to the large volume of members in Queensland, the transition from SafetyConnect to ME Safety Express has taken some time. Currently, we have 73 members in Essential, 176 in Pro, and 151 in SafetyConnect ongoing. The rest are slowly being migrated as they touch in with MEA for access to Standards and other pieces of advice.

The AS/NZS 3000 event in motion for the next release of the Draft will be used to encourage members that have not yet transitioned into the new ME Safety System. We will also continue our ongoing

Discussing the AS/NZS 3000 review implications to your business


Campaigning to Save our Sparkies

Networking up a storm at the Cairns Golf Day

member-focused ME Safety campaign to encourage Express logins

and Essential/Pro upgrades.

EventsAS/NZS 3000 events across the state proved a success with members

and non-member alike, as were our two other Industry Forums. It is

clear from the topics that Technical Forums resonate with members,

as attendance at each forum was very satisfactory.

Our Branch Events have continued this year. In particular, our Golf

Days have had various levels of success across the state. These will

be reviewed at the end of 2016 to determine if they are a valued and

viable event for 2017. Additionally, several of the larger branches

continue to host regular monthly meetings, being Brisbane, Bundaberg

and the Gold Coast. Focus will be given to other locations in the

2016/2017 financial year to increase event engagement in those areas.

Advocacy and representationWe have worked tirelessly on several major advocacy pieces, including:

• Smoke Alarm Bill

• Licensing

• Apprenticeships

• Priorities for electrical safety

• Non Confirming Product Group

• Building Recovery Group

We also petitioned against the Ergon and Energex merger, believing it

is not in the best interest of electrical contractors. This particular piece

garnered high levels of media attention across Queensland.


SA/NT

Growing our membershipOur efforts in recent years to increase the presence of MEA in the South Australia and Northern Territory markets have proven fruitful, with a 27.5 per cent increase in membership growth year on year. In the next financial year, we will keep up our efforts to become more visible in the market place.

We have also spent time in the market increasing awareness of the MEA Brand. This long term strategy will lend itself to future growth in membership.

In addition to good growth, we have also seen a 95 per cent retention rate, a good sign that members are satisfied with our product offering, and the foundation of a healthy membership base in both areas.

ME SafetyME Safety Express has been rolled out to members in South Australia and the Northern Territory. In addition to the roll-out of the included free licence for every member in ME Safety Express, we have also seen a 7.14 per cent growth in paid subscriptions to ME Safety Essential or Pro. This is good growth in a smaller state and something we hope to continue in our committment to safety.

ME TrainingWe have worked closed with the team at ME Training to deliver specialist and occupational training courses locally in South Australia. This partnership will continue to grow in the next financial year.


EventsWe have held multiple events that saw good attendance this financial year. Events are a key part of being visible in the market place, and something we will continue to focus on in the next financial year.

Events include:

• MEA Golf Day – presented with several partners, the Golf Day saw good attendance and was enjoyed by all participants.

• Industry Forums – we partnered with the Office of the Technical Regulator, South Australia Power Networks and industry supplies to hold events in 15 locations across the state. These valuable technical forms are available to members and non-members.

• AS/NZS 3000 Events – in lieu of the new release of the Wiring Rules in the next financial year, we held several events around the state to highlight the changes to this important document for members.

• Wholesaler Workshops – with changes to the South Australia Power Network Demand Tariff, we took the opportunity to hold events on the topic at wholesalers, for both members and non-members

• Women in Contracting – the MEA Women in Contracting event launch was held in Adelaide in April.

Advocacy and representationThis financial year, we represented MEA on the Trades Recognition Australia Industry Advisory Group. Trades Recognition Australia (TRA) is a skills assessment service provider specialising in assessments for people with trade skills gained overseas or in Australia, for the purpose of migration and skills recognition.

Enjoying a day on the green for the Adelaide Golf Day

Women in Contracting


VIC/TAS

VictoriaMEMBER ENGAGEMENTThis past financial year, we invested a great amount of work into engaging with our members. The outcome of all this work has ensured our members are aware of the value Master Electricians membership offers them. This work has further strengthened our industry-leading reputation as we continue to offer a great MEA experience that will keep members returning.

MEMBER SATISFACTIONAdditionally, we have worked very hard to deliver great customer service and we are very proud to report that there has been a significant improvement in member satisfaction. When dealing with members, we always think of their journey: where they’ve come from, where are they now, and where do they need to go? By placing such a focus on the member’s journey, we have managed to deliver stronger customer service by really meeting the member where they are currently.

We are very proud of these accomplishments. They fit with the newly-renewed Vision Statement - the industry voice and the electrician’s choice. Some additional key milestones include:

• Increasing MEA’s brand exposure across wholesale branches in metro and regional areas. This helps raise MEA’s profile, building on the association’s industry-leading reputation that is so valued among our membership

• Collaborating more with the Regulator through formal and informal channels, building incredibly valuable contacts within the industry

• Participation in two industry committees—Skills Assessment and the Victoria Services Installation Rules Committee

• Delivering ME Safety Express to a larger number of contractors. This program has been particularly well received with businesses in the one-to-three employee range.


TasmaniaCPDIt has taken us many years to negotiate with the Licensing Board and the Regulator the impact a Continued Professional Development (CPD) scheme will have on contractors. It was a tough process but we are very pleased with the results, having talked the Licensing Board and Regulator down from some major time-consuming inefficiencies.

Another big win for us is that we are the only organisation to have an endorsed CPD plan. This is significant as the Tasmanian electrical community has noticed our influence in the industry and our commitment to our members. This is evidenced by:

• Strong growth, with 50 contractors signing up to become ME Members. This has cemented Tasmania as the fastest growing membership category in the nation

• Great attendance at our AS/NZS 3000 forums, with more than 100 contractors attending. This has gained remarkable exposure for MEA and further established our skilled staff as the experts in the field, and

• The formation of strong partnerships with wholesalers and influencers.

As a further commitment to our valued members, MEA is now monitoring the first year of CPD to ensure it is effective and adds value to our members. We are also helping our members embrace CPD to ensure the success of this program as we see so much value in raising the bar even further for the greater electrical industry.


WAGrowing our membershipThis past year has been challenging due to the defection of the previous

State Manager to our main competitor. The resulting outcome was

a significant impact on membership numbers through the period

November 2015 to August 2016. We have now reached the bottom of

this cycle with cancellations slowing to normal attrition rates and we are

now enjoying net member growth.

Where the predatory behaviour of our competitor had a significant

impact, we are pleased to report that during the period April 2016

to August 2016 we have recruited in excess of 70 new members.

Our new marketing programs coupled with an improved member

value proposition and new product and service offering have been

instrumental in maintaining a consistent new member pipeline.

Brand awareness has significantly improved in the electrical industry

through constant and consistent message plus re-engagement with the

key stakeholders.

ME SafetyThis year has seen all of our SafetyConnect members successfully migrated across to ME Safety. The implementation and transition program for ME Safety was remodelled and successfully rolled out in late December and early January.

Since ME Safety Express was launched, we have embarked on a drive to significantly raise safety standards and awareness both within our membership and across the industry, encouraging uptake of the paid subscription services.

We remain focused on assisting members to fully embed ME Safety into their business operations, and aim to drive further membership growth through the adoption of ME Safety.

We have now also imbedded into the ME Safety Pro platform the documentation, processes and administrative tools for members to obtain accreditation for Western Powers Contractor Connect Scheme. This will help drive base membership, ME Safety subscriptions, plus increased use of the ME Safety platform.


EventsThe delivery of information session on the AS/NZS 3000 Draft across

Perth, Bunbury, Albany and Geraldton saw in excess 600 registrations

across five events. The sessions were aimed at providing information

to the industry on proposed changes to ‘The Wiring Rules’ as well as

details on how to provide comment.

In addition to AS/NZS 3000 discussions, we also had presentations

from Energy Safety and Western Power. This level of satisfaction

resulted in the recruitment of a significant number of new members.

Advocacy and representationDuring the reporting period, we have been diligently working to repair

and improve the relationship with the Ministers Office, the regulator

EnergySafety, and network operators, Western Power and Horizon.

The relationships were significantly damaged due to the recalcitrant

behaviour of the previous State Manager. This was hampering our

ability to engage in meaningful dialogue or advocacy on electrical

industry issues.

We can report that we have now progressed significantly and are

representing MEA and our members on four key industry committees

whilst engaging regularly with the regulator and network operators on

current industry issues and initiatives.

Lorem ipsumWomen in Contracting


TEAMS“COMMITMENT HAS BEEN EVIDENT AT EVERY LEVEL, AND THE ACHIEVEMENTS OF THE STAFF HAS BEEN SOLID”


ADVISORY SERVICESTechnical Department The Technical Team has continued the proud tradition of delivering great customer service to our members, having responded to almost 8,000 calls this financial year. In addition to technical advice, the team has extended their expertise to represent ME Members on a number of Australian Standard Committees and state authority panels.

Much of this year has also been spent preparing for the Draft of the AS/NZS 3000 Wiring Rules which was undertaken in May and June. While the outcome of the public consultations is not yet known, it is encouraging that comments received by Australian Standards have almost doubled compared to previous consultations. It is wonderful to see that our members and the industry have been so engaged in the process, and in no small way due to the efforts of the Technical Team and state teams who have held consultation sessions.

Workplace Relations Department The Workplace Relations Team delivered great service to members, assisting with more than 4,000 calls on top of completing numerous Enterprise Bargaining Agreements, unfair dismissal claims, and tackling the emerging issue of general protections claims.

This year’s employer topics have aligned with the industry as employers continue to feel the effects of a slowing mining and construction sector with many employers downsizing significantly.

On a national level, the team has represented members in the current Modern Award review and the Manufacturing Award review, where the ETU were seeking higher allowances. The biggest topic of the review concerning our members is the Electrical Contracting Award. This will peak in the early part of the 2016/2017 financial year. We will keep members advised of any changes that emerge from that review.

MEA is representing members in the current Domestic and Family Violence Leave case before the Fair Work Commission, which is seeking to add 10 days paid leave for staff who need to attend court or medical appointments and is additional to current personal leave entitlements. It looks to be a long case, with hearings not expected to take place until late 2016 or early 2017. As always, we will keep you updated.


EVENTS2015 Electrical Industry ConferenceHeld in Kyoto, Japan, the 2015 Electrical Industry Conference was a huge success and welcomed more than 150 delegates to experience a very busy line up of networking opportunities, industry updates, and professional and personal development seminars.

Surrounded by the wonderfully diverse Kyoto backdrop, delegates were spoiled for choice with cultural activities which immersed them in the traditional and quirky side of Japan, opening them up to new experiences, stimulating the creative juices, and inspiring change in themselves and their business.

The post-conference survey indicated the 2015 Conference was one of the best Electrical Industry Conferences so far. Financially, the 2015 conference met all budget requirements and delivered additional revenue for the first time in years.

AS/NZS 3000 national roadshowWith 55 events in 50 locations around Australia, the AS/NZS 3000 national roadshow was a massive success with an incredible 2,000 electrical industry professionals attending.

Designed to discuss the proposed changes and additions to ‘The Wiring Rules’ and how they will effect your business, ME Members were invited to free and exclusive events with our experts.

Later in the year, pending Standards Australia’s approvals process, MEA will again embark on a national roadshow with our team of experts to discuss the final changes and additions to ‘The Wiring Rules’.

EfficienciesIn 2016, the Events Team moved from a paper-based registration system which was laboriously recorded and managed in Excel to an online system. This severely reduced the window for human error and time spent on menial and repetitive data entry.

Two online systems were trialled—EventBrite and Formstack. Although not ideal for the style of events MEA delivers, they are significantly more efficient. This opened the Events Team up to focus more on researching, planning, and delivering the outstanding events we all have come to expect from them.

Despite the newly increased efficiencies for the Events Team, the Finance Team still faces similar inefficiencies in the new process.

Women in Contracting relaunchWomen in Contracting (WiC) has been an MEA event for many years. However, in 2016 WiC underwent a much-needed rebrand and the event series went through some major changes.

After the first round of events it became even more apparent that there was a massive gap in the current market to support women on the business side of construction. WiC filled that gap and provided a safe place for women to network and openly discuss their experiences, concerns, and visions for the industry with one another.

Over 150 woman participated in the first round of WiC events which were held in Townsville, Brisbane, Sydney, Melbourne, Perth, and


Adelaide. The main focus of these events were to gather as much knowledge on what WiC can offer woman to teach, support, and develop them on a personal and professional level.

A WiC committee was formed with a representative from each of the states to represent the best interests of women in contracting across Australia. We congratulate these women and are so excited to see where they will take WiC in the future:

• Tammy Stanton (Chair)

• Nadine Ewis

• Tegan Grace

• Natalie Hiddlestone

• Brooke Macgregor

• Rebecca Mair

• Jo Reed, and

• Lauren Tomlinson.Kick-starting the 2015 Electrical Industry Conference

Proudly launching the Women in Contracting initiative


INFORMATION TECHNOLOGYThe IT Team has made great strides in 2015/2016, with a new team bringing a fresh set of opportunities for the business. Several areas have been targeted to improve the efficiency of the association, whilst decreasing costs and improving security.

Focus areasA key focus has been placed on addressing security concerns within our systems and database. Small wins in this area have added up to big results across the association, and we will continue to make improvements in the next year. By adjusting responsibilities within the IT Team, we created a more efficient system for providing IT services to MEA staff. In doing so, we have decreased the time it takes for basic IT tasks to be completed.

AchievementsThis financial year, we have made improvements to the MEA website, by bringing the member’s website into masterelectricians.com.au, making the website responsive, and by building a Join Online form that feeds data directly into the database.

This has created a large number of efficiencies across the association.

The Join Online Form has allowed membership services, business

development and the senior leadership team to save valuable staff

hours spent on administration and data entry. It also decreases a

barrier to joining for members who do not wish to spend time on a

paper form, and ensures quicker payment by taking payment details.

The combined members and consumer’s website saves valuable staff

hours within the marketing team, who were otherwise updating two

websites with the same information. It also provides a better website

experience for members, who are able to find all information in one

convenient location.

In addition to these public-facing IT improvements, we have also

achieved non-profit technical status with a variety of our IT and tech

suppliers. This has decreased costs in areas such as marketing, systems

and security.

What are you going to see in the coming year?In the next financial year, we will be working with the marketing

team to make greater improvements to our member experience via

our website, with plans to build a new website to better service the

needs of our varied target markets. This will see greater integration

between the database and the website, which will again save time on

administration duties across the association.

We are also updating office IT infrastructure by improving the phone

system, increasing our security, and supplying new computers and

devices to staff. These actions will have the combined impact of

improving systems for staff (which will flow on to improve the member

experience) and deceasing costs to the association.


POLICYOver 2015/2016, MEA contributed a number of submissions.

In response to the ongoing dangers presented by the recalled Infinity Cable and the recall of a large number of self-balancing hoverboards, MEA has continued to advocate for greater safeguards surrounding non-compliant electrical goods. As well as writing to the Australian Competition and Consumer Commission, Treasurer, and Attorney-General, MEA made formal submissions to the Senate Inquiry into non-conforming building products, the review of the NSW Electricity (Consumer Safety) Regulation, the review of Australian Consumer Law and contributed to the Queensland government’s development of strategies addressing non-conforming building products.

On the issue of electrical safety, MEA made a series of submissions to the Queensland Government regarding proposed changes to smoke alarm laws and had the opportunity to represent the industry at a Parliamentary Committee hearing.

In the workplace relations space, MEA has been advocating strongly for the re-introduction of the Australian Building and Construction Commission, writing to the Senate Crossbenchers and Senate Candidates to secure their support heading towards the 2016 Federal election. MEA also provided submissions to the Queensland inquiry into

the labour hire industry and the Workers’ Compensation and Rehabilitation and Other Legislation Amendment Bill 2015.

MEA has contributed to inquiries in both Queensland and New South Wales recommending changes to security of payment laws. Our response to the discussion paper on Advocating for Small Business and family enterprise also encouraged changes to be made to better protect subcontractors when it comes to retention monies.

In light of growing concerns about the impact of climate change and escalating electricity prices, MEA made a number of submissions in New South Wales, Tasmania, and Queensland on tariff reform, smart metering, solar PV incentives, and energy efficiency strategies.

The formation of an energy services subsidiary in Queensland as part of the merger of Energex and Ergon sparked major concerns. MEA was quick to respond meeting with representatives from Energex and Ergon and initiating a Parliamentary petition supported by the Hon Tim Nicholls MP which received close to 2,200 signatures.

Finally, in the lead up to the 2016 Federal election, MEA prepared a comprehensive election priorities booklet that was distributed to election candidates across the country. The booklet detailed the matters of most concern to the electrical industry and the actions needed from government to address these issues.


MARKETINGAfter significant change in the organisation and a recent value proposition, the Marketing Team has had great success in defining a marketing strategy that produces results for the business, and resonates with our target markets.

Each state is at a different stage in the member maturity cycle, and with greater segmentation available for members and leads, we have been able to create more targeted and relevant communications for our many stakeholders.

In 2016, our objectives were to:

• Build brand recognition within the industry and general public simultaneously to encourage passionate engagement with Master Electricians Australia

• Encourage non-members to join the association through word of mouth and brand power

• Build brand pride amongst existing members to secure loyalty

• Drive uptake of ME Safety, Accreditation and other MEA services

• Reconnect with lost members, and

• Build enthusiasm for the MEA brand with staff.

New Member OfferOut of the value proposition, it was evident that the MEA product

offering had become stagnant. In 2016, a new member offer was

introduced to all current members, with new benefits adding an

additional $3,500 of value to every membership!

The new member offer not only included better deals from current

partners, it also highlighted new MEA services ME Training and ME

Safety, increasing awareness of these two products within the market.

We also successfully brokered deals with new partners, to deliver

ongoing services to members, as well as a host of freebies used in

the Member Drive. These partners include:

• SAI Global

• Tradify

• Xero

• Milwaukee Tools, and

• Klien Tools.

This new member offer was the basis of a three-month marketing

campaign for increasing member acquisitions nationally.


Member DriveA Member Drive was launched in April and subsequently extended in May and June. The new Member Offer was clearly articulated using visual communications techniques, with a focus on highlighting MEA as the one-stop-shop for electrical contractors wanting a complete solution for their business.

With a new, contemporary creative design and messaging that focused on how the contractor could benefit from services rather than why they should join the association, this campaign successfully reached contractors around Australia through email marketing, social media marketing, and postal campaigns, gaining an additional 103 new members in April, 56 in May, and 78 in June.

In addition to gaining 237 new members in the three-month campaign period, the emphasis placed on value-for-money marketing techniques such as email and social media advertising allowed us to keep costs at a minimum throughout this campaign.

Communications strategyThis year, we focused on improving communications to members and other stakeholders; part of this process involved a review of current communications. Through the delivering of consolidated, monthly communications pieces, we have been able to produce more relevant emails for members, whilst also decreasing the amount of emails we send. In addition, we have created a better subscriptions strategy to allow members to send particular communications to different people within their team, again decreasing the amount of emails each individual worker receives. These combined efforts have produced an increase in email open and click through rates.

We also improved our communications by moving to a new email system, MailChimp. This has decreased the amount of time required to build an email, creating efficiencies in the marketing and events

teams to save staff hours. MailChimp also allows us to create more intricate reports on campaigns, allowing us to identify individuals as they interact with our emails and identify hot leads in member drive campaigns. It also allows us to report on members who are disengaged with our content and target these members as part of membership retention campaigns.

BudgetThis year, we have achieved non-profit status with several marketing systems, creating cost savings for the association on products regularly used by the marketing team. Achieved in June 2016, this will see a decrease in marketing expenses in the new financial year.

What you are going to see in the coming year?In 2016/2017, we will launch the new Master Electricians Australia and Find a Master Electrician websites. This project will create a better customer experience for members, industry, and consumers when interacting with the Master Electricians Australia brand.

Our Member Drive campaigns will continue in the new financial year, with new partner benefits added to increase the value of our member offer. In 2016/2017, we will have a focused message for every month, allowing us to better target communications pieces and better advertise the variety of products available to Master Electricians members. An example of this is the ME Safety Drive planned for August 2016.

We will also continue to audit our marketing and communications products to find cost savings for the association. One part of this is a complete review of the Master Electrician magazine, which will be released with a new design and format.


SPONSORSHIP AND PARTNERSHIPSponsorshipWe saw a massive improvement in our relationships with our sponsors in 2015/2016. Positive and consistent collaboration between both parties ensured deliverables and objectives were met through extensive marketing campaigns and event exposure.

There were two distinct categories of sponsors; • NATIONAL SPONSORS - Support MEA on a national level and

received face-to-face time with members and non-members, and also gain significant brand exposure through key communication pieces across a wide variety of channels

• EVENT-SPECIFIC SPONSORS - Receive targeted face-to-face time with members and non-members at their specific events and locations.

Our national sponsors received additional exposure opportunities with the launch of the Women in Contracting event series and the highly successful AS/NZS 3000 events. A number of our national sponsors have a significant interest in both of these events due to the very high attendance. The overarching objective of Women in Contracting was another big draw card for sponsors; to support woman in the electrical and construction industry, where there are a number of strong and obvious synergies with a number of sponsors in this exciting space.

Our national sponsors are;

• Clipsal & Schneider Electric

• CNW

• Legrand

• William Buck

• ME Training, and

• Tradify.

Our event-specific sponsors are;

• Haymans

• Electrogroup

• Concept Benefit Planning

• Bull Motors

• MELEC, and

• Construction Skills Queensland.

We also engaged with some new potential sponsors who are extremely interested in being more involved in next year’s calendar. These include;

• Hager

• Gerard’s Lighting, and

• Rexel.


PartnershipStrong partnership engagement was a major focus with three new

partners coming on board. These were: Xero, Tradify, and SAI Global,

who were proactively engaged to meet a gap in membership needs

that was identified from the 2015 Industry Benchmark Survey. Further

to this, existing partnerships were reviewed to discern if further value

could be created for members. This audit allowed us to restructure

a number of partnerships to provide mutual benefit to all parties.

A highlight of partnership engagement was the launch of the 2016

April Membership Drive, which allowed partners to participate in

a campaign with national exposure. This provided opportunities

with open lines of communication and to create common goals and

strengthen existing partnerships. An example of this is the updated

partnership with CNW. Mutual exposure was achieved by including

CNW in the new membership offer to provide a touch-point with all

new ME Members while also adding a new member benefit. MEA

also received point of sale exposure across 57 CNW branches for

the duration of the campaign.

This campaign also created partnerships that will continue to provide

significant value to members and exposure opportunities to MEA.

This is particularly evident with the new SAI Global partnership, which

offers members access to 14 Standards for free through the ME Safety

platform. This partnership will continue to be of relevance as the

updated AS/NZS 3000 is released.

This momentum will be carried into the next financial year as MEA

continues to seek and engage partners that deliver more value to our

members, while actively managing existing relationships.


BRANDS“MEMBERS ARE OFTEN SURPRISED BY MEA’S DIVERSITY OF PRODUCTS AND SERVICES”


ME SAFETYMembers are often surprised by MEA’s diversity of products and services, as well as the significant amount of solid—and often subtle—work of those charged with the wide variety of industry representation and advocacy tasks. The latter of which is often time consuming and rarely rewarded, but which goes to the heart of why MEA exists.

ME Safety is one such example and is a tremendous step forward for members and the organisation alike, with further evolution planned in the year ahead. After a difficult migration and transition phase, as well as a requirement to reinforce MEA’s Safety and Technical Advisory (STA) ranks, State Managers are forecasting strong national uptake ahead. The contribution of State Managers in packaging the ME Safety product to better meet members’ needs was extremely pleasing and showed what can be done with calm, focused effort. Fee-for-service work from the reinforced and dedicated team of STA’s complements these packages and so we should expect growth from this area in the year ahead.

Another major issue to tackle was the membership package and what it represents to members in terms of its value proposition. This started in the second half of the financial year and its results were instantly rewarded with 9.8 per cent growth from April to June. MEA was able

to deliver improved value with new partner benefits and the STA’s and State Manager’s helped push to make safety a central platform of membership. Offering ME Safety Express as a free ‘starter pack’ was a master stroke. It underpins the advocacy role MEA plays, and others in the market have missed; safety is not optional. It comes to the core of what MEA is about—a safe and secure workplace: always. The work on value proposition led by the Marketing, Membership, and Senior Leadership Teams is a solid foundation for future growth.

This has been a watershed year; it helped channel the region’s energies through a much more focused business development effort. We built a more dedicated resource base that can respond to local interest and present value to prospective members quickly and effectively. The sales process is a sophisticated one and relationships are nurtured over a long time. The Board’s support to allow this redirection from administration to business development began last November and has been an important contributor to our growth. We held group training sessions in the latter part of the 2015/2016 financial year with more sessions scheduled to continue into 2016/2017 to establish clear goals and key performance measures across all teams. This will reinforce the alignment of effort and focus and will lead to incremental and sustainable growth for our organisation.


ME TRAININGThe completion of nine months of work is certainly something both organisations, MEA and Careers Australia, and their staff, can be proud of. ME Training was launched across three tireless months with an aim to establish key frameworks and strategies to achieve early success. It was especially exciting to be a part of the strong collaboration between marketing, administration, finance, and operational teams.

Activity with the training programs, industry skills funding opportunities, and the development of quality services and deliveries increased in the new year.

Additionally, apprenticeships under ME Training also gained momentum in early 2016—finishing the year with more than 300 active new electrical apprentices across Queensland, New South Wales, and Western Australia.

This goes against the current trend documented by the National Centre for Vocational Research, observing a decline in apprentice commencements with a 12.4 per cent decrease in commencements between December 2014–2015.

Both political parties paid particular attention to these declines, jockeying for positions on the topic by announcing policy and investment strategies to reverse the trend.

However, ME Training bucked this trend, growing the apprenticeship number by 53 per cent year-on-year.

Queensland and Western Australia will continue to bookend apprenticeship growth over the next 12 months, in line with funding support from state governments.

Short courses remained the key platform in engaging and providing value to the contractor market, with 44 per cent of the 800 short course enrolments being ME Members. With funding support from state and federal governments, ME Training was able to offer key skills


training in compliance and licensing areas, as well as support new and emerging technologies in battery storage and design.

Without the support of apprentice training subsidies, New South Wales, Victoria, Tasmania, and South Australia focussed on developing schedules to support post-trade skills ranging from basic business courses to essential licensing/compliance requirements.

The 2017 financial year will welcome a focus back to the next wave of electrical apprentices. Queensland will assume control of all VET delivery with more than 300 school students being enrolled into Certificate II electrical programs in 2016.

The launch of the National Electrical Pathway Exam as the standard in sourcing apprentices will build a strong relationship with Energise-Oz to establish quality first year apprentices that are employer-ready.

ME Training’s success will again be dictated by the program’s financial performance in the 2017 financial year. Establishing key performance indicators will enable all staff to deliver positive customer experiences and growth within the industry.

Revenue Apprenticeships Long courses Short courses

$2.05m 293 212 1,479

Master Electricians Association Limited | ACN 163 222 642 32

FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2016Master Electricians Association Limited


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DIRECTORS’ REPORT For the year ended 30 June 2016

Gregory Owen Allen• Director• Director of Master Electricians Australia Limited• Self-employed• Appointed as a director on 30 October 2015

Anthony Hamilton Arnold• Director• Director of Master Electricians Australia Limited• Licensed electrical contractor• MEAQ President• Self-employed

Stephen Downey• Director

• Director of Master Electricians Australia Limited

• Licensed electrical contractor

• Self-employed

Glen Michael Eccles• Director• Director of Master Electricians Australia Limited• Licensed electrical contractor• Self-employed• Resigned as director 13 July 2015

Richard Gerard Flanagan• Appointed Chairman on 9 April 2013

• Director and Chairman of Master Electricians Australia Limited

• Licensed electrical contractor

• Self-employed

James Edwin Johnson• Director

• Director of Master Electricians Australia Limited

• Master of Business - Marketing

• Harvard BS - Global Strategic Management

Your directors present their report on the general purpose financial statements of the company for the year ended 30 June 2016.

The following persons were directors of the company at any time during or since the end of financial year and up to the date of this report:


Edward John Whitney McCoppin• Director• Director of Master Electricians Australia Limited• Licensed electrical contractor• Self-employed• Appointed as director on 27 July 2015• Resigned as director on 12 October 2015

Joshua Nicholls• Director• Director of Master Electricians Australia Limited• Licensed electrical contractor• Self-employed

Erik Scholz• Director• Director of Master Electricians Australia Limited• Self-employed• Appointed as director on 27 July 2015

Iain Milton Sibbald• Director• Director of Master Electricians Australia Limited• Licensed electrical contractor• Self-employed

Troy John Smith• Director• Director of Master Electricians Australia Limited• Licensed electrical contractor• Self-employed

Principal activitiesThe principal activity of the company during the financial year was the provision of membership services.

Overview of company’s results2016 ($) 2015 ($)

Profit before income tax

8,841 8,547

Income tax expense - -

Profit after income tax

8,841 8,547

ObjectivesThe objective of the Company is to provide a high standard of membership services and improve the safety and efficiency of Master Electricians business.

Strategies to achieve objectivesOutlined below are the strategies we have employed in order to achieve the above objectives:

• Identify member needs in relation to safety and efficiency; and source and develop innovative responses to address these needs

• Collaborate with key stakeholders in the Electrical and Communications industry and with Government to promote safety, efficiency and training through the facilitation and delivery of innovative programs, services and information dissemination to Master Electrician businesses, industry and the wider community.

DIRECTORS’ REPORT CONT’D


Progress on objectivesDuring the year the company has been working with key suppliers to

improve the provision of membership services including the launch of

ME Safety; the new Master Electricians Safety Management System

and implementation of key process improvements.

Key performance indicators• Action taken to identify industry, including master electrician

businesses and community needs in relation to safety and efficiency.

• Action taken to source and develop innovative responses to

member needs.

• Establishment of collaborative arrangements with key industry,

government and community stakeholders.

• Action taken to improve key membership service processes.

Company SecretaryMr Malcolm Ross Richards was appointed to the position of company

secretary on 9 April 2013.

Members guaranteeThe company is incorporated under the Corporations Act 2001

and is a company limited by guarantee. If the company is wound up,

the constitution states that each member is required to contribute a

maximum of $10 each towards meeting any outstanding obligations

of the entity. At 30 June 2016, the total amount that members of

the company are liable to contribute if the company is wound up

is $2,140 (2015 - $2,550).

Meetings of directorsThe company’s board of directors held six meetings during the year

ended 30 June 2016. The attendance by each director was as follows:

DIRECTORMEETINGS

ATTENDED

MEETINGS WHILE

DIRECTOR

Gregory Owen Allen 4 4

Anthony Hamilton Arnold 6 6

Stephen Downey 4 6

Glen Michael Eccles 0 0

Richard Gerard Flanagan 5 6

James Edwin Johnson 3 6

Edward John Whitney McCoppin 1 1

Joshua Nicholls 5 6

Erik Scholz 5 5

Iain Milton Sibbald 5 6

Troy John Smith 6 6




Significant changes in state of affairsIn the opinion of the directors, there were no significant changes in the state of affairs of the company during the financial year under review.

Events subsequent to balance dateThere has not arisen in the interval between the end of the financial year and the date of this report any item, transaction or event of a material and unusual nature likely, in the opinion of the directors of the Company, to affect significantly the operations of the Company, the results of those operations, or the state of affairs of the Company, in future financial years.

Auditor’s declaration of independenceThe Auditor’s Independence Declaration for 30 June 2016 has been received and can be found on page 49. This report is made in accordance with a resolution of the board of directors.


STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME For the year ended 30 June 2016

NOTE 2016 ($) 2015 ($)

Revenue 2 884,104 854,720

Agency fee - MEAQ (875,263) (846,173)

PROFIT BEFORE INCOME TAX 8,841 8,547

Income tax expense 1.b - -

PROFIT AFTER INCOME TAX 8,841 8,547

Other comprehensive income - -

TOTAL COMPREHENSIVE INCOME FOR THE YEAR 8,841 8,547

The Accompanying notes form part of these financial statements


STATEMENT OF FINANCIAL POSITION As at 30 June 2016

NOTE 2016 ($) 2015 ($)

CURRENT ASSETS

Prepayments 128,105 131,170

Loans to related parties 4 23,203 14,431

TOTAL ASSETS 151,308 145,601

CURRENT LIABILITIES

Trade and other payables 3 129,469 132,603

TOTAL LIABILITIES 129,469 132,603

NET ASSETS 21,839 12,998

EQUITY

Retained earnings 21,839 12,998

TOTAL EQUITY 21,839 12,998



STATEMENT OF CHANGES IN EQUITY For the year ended 30 June 2016

RETAINED EARNINGS ($) TOTAL ($)

BALANCE AT 1 JULY 2014 4,451 4,451

Total comprehensive income for the year 8,547 8,547

BALANCE AT 30 JUNE 2015 12,998 12,998

BALANCE AT 1 JULY 2015 12,998 12,998

Total comprehensive income for the year 8,841 8,841

BALANCE AT 30 JUNE 2016 21,839 21,839



STATEMENT OF CASH FLOWS For the year ended 30 June 2016

NOTE 2016 ($) 2015 ($)

CASH FROM OPERATING ACTIVITIES

Cash receipts from members 969,380 893,040

Cash paid to suppliers (969,380) (893,040)

NET CASH PROVIDED BY OPERATING ACTIVITIES 5 - -

CASH FLOWS FROM INVESTING ACTIVITIES

NET CASH USED IN INVESTING ACTIVITIES - -

CASH FLOWS FROM FINANCING ACTIVITIES

NET CASH FLOWS PROVIDED BY FINANCING ACTIVITIES

- -

Net increase in cash and cash equivalents - -

Cash and cash equivalents at the beginning of the year - -

CASH AND CASH EQUIVALENTS AT THE END OF THE YEAR

- -



NOTES TO THE FINANCIAL STATEMENTS For the year ended 30 June 2016

Note 1: Summary of significant accounting policiesThese financial statements are general purpose financial statements that have been prepared in accordance with the Corporations Act 2001 and Australian Accounting Standards - Reduced Disclosure Requirements (including Australian Accounting Interpretations) to the extent that they apply to not-for-profit entities and other authoritative pronouncements of the Australian Accounting Standard Board.

The following is a summary of the material accounting policies adopted by the company in the preparation of the financial statements. The accounting policies have been consistently applied, unless otherwise stated.

a. REPORTING BASIS AND CONVENTIONSThe financial statements have been prepared on an accruals basis in accordance with the historical cost convention and do not take into account changing money values or, except where specifically stated current valuations of non current assets.

The financial statements are presented in Australian dollars which is the company’s functional and presentational currency.

New and or revised accounting standards issued between the previous financial year and the current reporting date and new accounting standards for application in future periods do not have a significant impact on the company.

b. INCOME TAXMember income is excluded under the principle of mutuality. Non member income of the Company is assessable for income tax.

The charge for current income tax expense is based on the profit for the year adjusted for any non-assessable or non-allowable items. It is calculated using tax rates that have been enacted or are substantively enacted by the end of the reporting period.

Deferred tax is accounted for using the liability method in respect of differences arising between the tax bases of assets and liabilities and their carrying amounts in the general purpose financial statements. No deferred income tax will be recognised from the initial recognition of an asset or liability, excluding a business combination, where there is no effect on accounting or taxable profit or loss.

Deferred tax is calculated at the tax rates that are expected to apply to the period when the asset is realised or liability is settled. Deferred tax is credited in the statement of profit & loss and other comprehensive


income except where it relates to items that may be credited directly to equity, in which case the deferred tax is adjusted directly against equity.

Deferred income tax assets are recognised to the extent that it is probable that future taxable profits will be available against which deductible temporary differences can be claimed.

The amount of benefits brought to account or which may be realised in the future is based on the assumption that no adverse change will occur in income tax legislation and the anticipation that the Company will derive sufficient future assessable income to enable the benefit to be realised and comply with the conditions of deductibility imposed by the law.

c. REVENUEMembership income is recognised over the period to which the membership relates. All revenue is stated net of the amount of goods and services tax (GST).

d. CASH AND CASH EQUIVALENTSCash and cash equivalents include cash on hand, deposits held at call with banks and other short term highly liquid investments with original maturities of three months or less.

e. UNEARNED INCOMEFees received in advance are deferred and matched against billings as services are performed.

f. TRADE PAYABLESTrade and other payables are stated at amortised cost, which approximates fair value due to the short term nature of these liabilities.

g. GOODS AND SERVICES TAX (GST)Revenues, expenses and assets are recognised net of the amount of GST, except where the amount of GST incurred is not recoverable from the Australian Taxation Office. In these circumstances the GST is recognised as part of the cost of acquisition of the asset or as part of an item of the expense. Receivables and payables in the statement of financial position are shown inclusive of GST. Cash flows are presented in the statement of cash flow on a gross basis, except for the GST component of investing and financing activities, which are disclosed as operating cash flows.

h. CHANGE IN ACCOUNTING POLICYThe company has adopted all the new, revised or amending accounting standards and interpretations issued by the Australian Accounting Standards Board (AASB) that are mandatory for the current reporting period.

The adoption of these accounting standards and interpretations did not have any significant impact on the financial performance or position of the company.

i. NEW ACCOUNTING STANDARDS FOR APPLICATION IN FUTURE PERIODSThe AASB has issued new and amended accounting standards and interpretations that have mandatory application dates for future reporting periods and which the company has decided not to early adopt. At the date of authorisation of the financial report, the new or amended Australian Accounting Standards with future commencement dates are either not applicable to the company’s activities, or have no material impact on the company.

NOTES TO THE FINANCIAL STATEMENTS CONT’DNote 1: Summary of significant accounting policies cont’d


j. CRITICAL ACCOUNTING ESTIMATES AND JUDGEMENTSThe Board evaluates estimates and judgements incorporated into the financial statements based on historical knowledge and best available current information. Estimates assume a reasonable expectation of future events and are based on current trends and economic data, obtained externally and within the Company.

There were no significant estimates or judgements used by the Board in the preparation of these financial statements.

Note 2: RevenueRevenue from membership fees 884,104 854,720

884,104 854,720

Note 3: Trade and other payablesRevenue received in advance 129,399 132,495

Other payables 70 108

129,469 132,603

Note 4: Loan to related partyLOAN TO MASTER ELECTRICIANS ASSOCIATION QUEENSLAND

23,203 14,431

Note 5: Cash flow informationReconciliation of Cash Flow from Operations with profit after Income Tax

2016 ($) 2015 ($)NET PROFIT AFTER INCOME TAX

8,841 8,547

Changes in assets and liabilities:

(Increase)/decrease in prepayments

3,065 (37,069)

(Increase)/decrease in loans to related parties

(8,772) (8,966)

Increase/(decrease) in payables (3,134) 37,488

NET CASH FLOW FROM OPERATIONS

- -

Note 6: Auditor’s remunerationAUDITING THE FINANCIAL STATEMENTS

4,200 4,500

Note 7: Events after the end of the reporting periodThere have been no significant events which have occurred subsequent to the end of the reporting period.

NOTES TO THE FINANCIAL STATEMENTS CONT’DNote 1: Summary of significant accounting policies cont’d


Note 8: Contingent liabilities and contingent assetsThe company has provided an unlimited guarantee to the lenders of

the parent entity (Master Electricians Association Queensland Industrial

Organisation of Employers). The parent entity had a borrowing facility

of $6.05 million as at 30 June 2016 (2015 - $6.12 million). No material

liability is expected to arise from this guarantee.

Note 9: Members guaranteeThe company is incorporated under the Corporations Act 2001 and

is a company limited by guarantee. If the company is wound up,

the constitution states that each Accredited Member is required to

contribute a maximum of $10 each towards meeting any outstanding

obligations of the entity. At 30 June 2016, the total amount that

members of the company are liable to contribute if the company is

wound up is $2,140 (2015 - $2,550).

Note 10: Company detailsThe registered office and principal place of business of the Company is:

MASTER ELECTRICIANS ASSOCIATION LIMITED 57 Berwick Street

Fortitude Valley, Queensland, 4006

NOTES TO THE FINANCIAL STATEMENTS CONT’D


DIRECTOR’S REPORT For the year ended 30 June 2016

MEMBERS GUARANTEEThe company is incorporated under the Corporations Act 2001 and is a company limited by guarantee. If the company is wound up, the constitution states that each member is required to contribute a maximum of $10 each towards meeting any outstanding obligations of the entity. At 30 June 2016, the total amount that members of the company are liable to contribute if the company is wound up is $2,140 (2015 - $2,550).

SIGNIFICANT CHANGES IN STATE OF AFFAIRSIn the opinion of the directors, there were no significant changes in the state of affairs of the company during the financial year under review.

EVENTS SUBSEQUENT TO BALANCE DATEThere has not arisen in the interval between the end of the financial year and the date of this report any item, transaction or event of a material and unusual nature likely, in the opinion of the directors of the Company, to affect significantly the operations of the Company, the results of those operations, or the state of affairs of the Company, in future financial years.

AUDITOR’S INDEPENDENCE DECLARATIONThe Auditor’s Independence Declaration for 30 June 2016 has been received and can be found on page 13.

This report is made in accordance with a resolution of the board of directors.

Director Brisbane, 24 August 2016


DIRECTOR’S DECLARATION For the year ended 30 June 2016

The directors of the company declare that:

1. The financial statements and notes set out on pages 38 to 45 are in accordance with the Corporations Act 2001:

(a) comply with Australian Accounting Standards - Reduced Disclosure Requirements (including Australian Accounting Interpretations) and the Corporations Regulations 2001; and

(b) give a true and fair view of the Company’s financial position as at 30 June 2016 and of its performance, as represented by the results of its operations and its cash flows, for the year ended on that date.

2. In the directors’ opinion there are reasonable grounds to believe that the company will be able to pay its debts as and when they become due and payable.

This declaration is made in accordance with a resolution of the directors:

Director Brisbane, 24 August 2016






Master Electricians Association Limited | ACN 163 222 642 52

CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2016Master Electricians Association QueenslandIndustrial Organisation of EmployersIncorporated under the Industrial Relations Act 1999 ABN 40 669 256 171

53Master Electricians Association Queensland Industrial Organisation of Employers | ABN 40 669 256 171


54 Master Electricians Association Queensland Industrial Organisation of Employers | ABN 40 669 256 171

STATEMENTS OF PROFIT OR LOSS For the year ended 30 June 2016

CONSOLIDATED PARENTNOTE 2016 ($) 2015 ($) 2016 ($) 2015 ($)

Sales revenue 2 3,878,144 4,079,996 3,873,810 3,221,282

Cost of sales (2,625,377) (3,410,829) (2,625,777) (2,936,465)

GROSS SURPLUS 1,252,767 669,167 1,248,033 284,817

Other income 3 7,032,390 9,004,712 6,939,975 9.410,507

Employee costs (5,352,001) (5,955,606) (5,352,001) (5,954,741)

Depreciation and amortisation (292,318) (297,242) (339,818) (344,742)

Finance cost (381,779) (421,873) (381,778) (421,873)

Other expense (2,565,656) (2,875,407) (2,561,385) (2,845,014)

OPERATING RESULT (306,597) 123,751 (446,974) 128,954

Impairment of loans to group companies

- - 92,878 (52,705)

(LOSS)/PROFIT BEFORE INCOME TAX

(306,597) 123,751 (354,096) 76,249

INCOME TAX 11.a - - - -

(LOSS)/PROFIT FOR THE YEAR AFTER INCOME TAX

(306,597) 123,751 (354,096) 76,249



STATEMENTS OF COMPREHENSIVE INCOME For the year ended 30 June 2016

CONSOLIDATED PARENT

2016 ($) 2015 ($) 2016 ($) 2015 ($)

(Loss)/Profit for the year (306,597) 123,751 (354,096) 76,249

Other comprehensive income

- - - -

TOTAL OTHER COMPREHENSIVE INCOME

- - - -

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

(306,597) 123,751 (354,096) 76,249



STATEMENT OF FINANCIAL POSITIONAs at 30 June 2016

CONSOLIDATED PARENT

NOTE 2016 ($) 2015 ($) 2016 ($) 2015 ($)

ASSETS

CURRENT ASSETS

Cash and cash equivalents 5 1,748,047 2,877,798 1,252,443 1,356,284

Trade and other receivables 6.a 997,543 1,120,071 997,539 876,058

TOTAL CURRENT ASSETS 2,745,590 3,997,869 2,249,982 2,232,342

NON-CURRENT ASSETS

Property, plant, and equipment 7 7,844,916 8,078,507 7,844,916 8,078,507

Intangibles 8 151,674 139,168 959,174 994,168

Investments 14 - - 1 1

Loans to group companies 6.b - - 495,607 1,673,824

Total non-current assets 7,996,590 8,217,675 9,299,698 10,746,500

TOTAL ASSETS 10,742,180 12,215,544 11,549,680 12,978,842



CONSOLIDATED PARENT

NOTE 2016 ($) 2015 ($) 2016 ($) 2015 ($)

LIABILITIES

CURRENT LIABILITIES

Trade and other payables 9 2,104,001 2,909,262 2,104,001 2,817,561

Financial liabilities 10.a 5,678,882 298,721 5,678,882 298,721

Provision for employee entitlements

356,553 395,586 356,553 395,586

TOTAL CURRENT LIABILITIES 8,139,436 3,603,569 8,139,436 3,511,868

NON-CURRENT LIABILITIES

Financial liabilities 10.b 12,440 5,734,824 12,440 5,374,824

Provision for employee entitlements

148,486 128,736 148,486 128,736

TOTAL NON-CURRENT LIABILITIES

160,926 5,863,560 160,926 5,863,560

TOTAL LIABILITIES 8,300,362 9,467,129 8,300,362 9,375,428

NET ASSETS 2,441,818 2,748,415 3,249,318 3,603,414

EQUITY

Reserves 2,789,429 2,789,429 2,789,429 2,789,429

Retained earnings (347,611) (41,014) 459,889 813,985

TOTAL EQUITY 2,441,818 2,748,415 3,249,318 3,603,414

STATEMENT OF FINANCIAL POSITION CONT’D



STATEMENT OF CHANGES IN EQUITY For the year ended 30 June 2016

RETAINED EARNINGS ($)

ASSET REVALUATION RESERVE ($) TOTAL ($)

PARENT

Balance at 1 July 2014 737,736 2,789,429 3,527,165

Profit for the year 76,249 - 76,249

Other comprehensive income - - -

BALANCE AT 30 JUNE 2015 813,985 2,789,429 3,603,414

Balance at 1 July 2015 813,985 2,789,429 3,603,414

Loss for the year (354,096) - (354,096)


BALANCE AT 30 JUNE 2016 459,889 2,789,429 3,249,318

CONSOLIDATED

Balance at 1 July 2014 (164,765) 2,789,429 2,624,664

Profit for the year 123,751 - 123,751


BALANCE AT 30 JUNE 2015 (41,014) 2,789,429 2,748,415

Balance at 1 July 2015 (41,014) 2,789,429 2,748,415

Loss for the year (306,597) - (306,597)


BALANCE AT 30 JUNE 2016 (347,611) 2,789,429 2,441,818



STATEMENT OF CASH FLOWSFor the year ended 30 June 2016

CONSOLIDATED PARENT

NOTE 2016 ($) 2015 ($) 2016 ($) 2015 ($)

CASH FROM OPERATING ACTIVITIES

Cash receipts from customers and members 11,407,686 14,181,110 12,430,438 13,795,651

Cash paid to suppliers and employees (11,775,995) (13,175,983) (11,764,325) (12,647,350)

Interest received 29,106 47,801 20,593 14,536

Interest paid (381,779) (421,873) (381,778) (421,873)

NET CASH (USED IN)/PROVIDED BY OPERATING ACTIVITIES

12 (720,982) 631,055 304,928 740,964

CASH FLOWS FROM INVESTING ACTIVITIES

Proceeds from disposal of furniture and equipment - 427 - 427

Proceeds from disposal of motor vehicles 25,818 20,909 25,818 20,909

Purchase of furniture and equipment (23,539) (10,846) (23,539) (10,846)

Purchase of intangibles (68,825) (51,176) (68,825) (51,176)

NET CASH FLOWS USED IN INVESTING ACTIVITIES (66,546) (40,686) (66,546) (40,686)

CASH FLOWS FROM FINANCING ACTIVITIES

Repayment of borrowings (342,223) (513,183) (342,223) (513,183)

NET CASH USED IN FINANCING ACTIVITIES (342,223) (513,183) (342,223) (513,183)

Net (decrease)/increase in cash and cash equivalents (1,129,751) 77,186 (103,841) 187,095

Cash and cash equivalents at the beginning of the year 2,877,798 2,800,612 1,356,284 1,169,189

CASH & CASH EQUIVALENTS AT THE END OF THE YEAR 5 1,748,047 2,877,798 1,252,443 1,356,284



Note 1: Summary of significant accounting policiesThese financial statements are general purpose financial statements that have been prepared in accordance with Australian Accounting Standards, Australian Accounting Interpretations to the extent that they apply to not-for-profit entities, other authoritative pronouncements of the Australian Accounting Standards Board and the requirements of the Industrial Relations Act 1999 of Queensland.

The financial statements cover Master Electricians Association Queensland Industrial Organisation of Employers as an individual entity (parent entity or the association) and Master Electricians Association Queensland Industrial Organisation of Employers and its controlled entities (consolidated entity). Master Electricians Association Queensland Industrial Organisation of Employers is an association incorporated in Queensland under the Industrial Relations Act 1999.

The following is a summary of the material accounting policies adopted by the consolidated entity in the preparation of the financial statements. The accounting policies have been consistently applied, unless otherwise stated.

a. REPORTING BASIS AND CONVENTIONSThe financial statements have been prepared on an accrual basis and are based on historical costs modified by the revaluation of selected non-current assets, financial assets and financial liabilities for which the fair value basis of accounting has been applied.

The financial statements have also been prepared on a going concern basis. The consolidated entity is reliant on the continued support of its bankers. Current borrowing facilities mature on 31 December 2016. The ability of the consolidated entity to pay its debts as and when they fall due is dependant upon the borrowing facilities being renewed under the current terms and conditions. The council has no reason to believe the borrowing facilities will not be renewed.

b. INCOME TAXThe Association is exempt from income tax in accordance with |the provisions of Section 50 of the Income Tax Assessment Act 1997, accordingly no tax liability is recognised for the parent entity. The controlled entities are subject to income tax.

The charge for current income tax expense is based on the profit for the year adjusted for any non-assessable or non-allowable items.

NOTES TO THE FINANCIAL STATEMENTSFor the year ended 30 June 2016


It is calculated using tax rates that have been enacted or

are substantively enacted by the end of the reporting period.

Deferred income tax is provided in full, using the liability

method, on temporary differences arising between the tax bases

of assets and liabilities and their carrying amounts in the financial

statements. Deferred income tax is not accounted for if it arises from

initial recognition of an asset or liability in a transaction other than

a business combination that at the time of the transaction affects

neither accounting nor taxable profit or loss.

Deferred income tax is determined using tax rates (and laws) that

have been enacted or substantially enacted by the end of the reporting

period and are expected to apply when the related deferred income

tax asset is realised or the deferred income tax liability is settled.

Deferred tax is credited in the statement of profit or loss except

where it relates to items that may be credited directly to equity,

in which case the deferred tax is adjusted directly against equity.

Deferred income tax assets are recognised to the extent that it is

probable that future taxable profits will be available against which

deductible temporary differences can be claimed.

The amount of benefits brought to account or which may be realised

in the future is based on the assumption that no adverse change will

occur in income tax legislation and the anticipation that the controlled

entities will derive sufficient future assessable income to enable the

benefit to be realised and comply with the conditions of deductibility

imposed by the law.

c. REVENUERevenue from the sale of goods is recognised upon the delivery of goods to customers.

Interest income is recognised on a proportional basis taking into account the interest rates applicable to the financial assets.

Revenue from the rendering of membership services is recognised upon the delivery of the service to the members.

All revenue is stated net of the amount of goods and services tax (GST).

d. CASH AND CASH EQUIVALENTSFor the purpose of presentation in the statement of cash flows, cash and cash equivalents includes cash on hand, deposits held at call with banks, other short term highly liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within financial liabilities in current liabilities in the consolidated statement of financial position.

e. UNEARNED INCOMEFees received in advance are deferred and matched against billings as services are performed.

Customer deposits consist of payments received in advance from customers, deposits on credit sales for undelivered services and membership fees and cash collections on sales of undelivered merchandise.

f. PROPERTY, PLANT, AND EQUIPMENTEach class of property, plant and equipment is carried at cost or fair value less, where applicable, any accumulated depreciation and impairment losses.



PropertyFreehold land and buildings are shown at their fair value (being the amount for which an asset could be exchanged between knowledgeable willing parties in an arm’s length transaction), based on periodic, valuations by external independent valuers, less subsequent depreciation for buildings.

Any accumulated depreciation at the date of revaluation is eliminated against the gross carrying amount of the asset and the net amount is restated to the revalued amount of the asset.

Plant and equipmentPlant and equipment are measured on the cost basis less depreciation and impairment losses.

DepreciationThe depreciable amount of all fixed assets excluding capitalised leased assets, are depreciated on a straight line basis over their useful lives commencing from the time the asset is held ready for use. Leasehold improvements are depreciated over the shorter of either the unexpired period of the lease or the estimated useful lives of the improvements.

The depreciation rates used for each class of depreciable assets are:

CLASS OF FIXED ASSETBuildings 2.5% prime cost

Furniture, fixtures, and fittings 7.5% to 33% prime cost

IT and office equipment 6.5% to 40% prime cost

Motor vehicles 20% prime cost

The assets’ residual values and useful lives are reviewed, and adjusted if appropriate, at the end of each reporting period.

g. INTANGIBLE ASSETSIntangible assets are initially measured at cost. Indefinite life intangible assets are not amortised and are subsequently measured at cost less any impairment. Finite life intangible assets are subsequently measured at cost less amortisation and any impairment. The gains or losses recognised in profit or loss arising from the derecognition of intangible assets are measured as the difference between net disposal proceeds and the carrying amount of the intangible asset. The method and useful lives of finite life intangible assets are reviewed annually. Changes in the expected pattern of consumption or useful life are accounted for prospectively by changing the amortisation method or period.

The amortisation rates used for each class of intangible assets are:

Computer software 25% to 33% prime cost

Brands and trademarks 5% prime cost

h. EMPLOYEE BENEFITSShort-term employee benefitsLiabilities for wages and salaries, including non-monetary benefits, annual leave and long service leave expected to be settled within 12 months of the reporting date are recognised in current liabilities in respect of employees’ service up to the reporting date and are measured at the amounts expected to be paid when the liabilities are settled.

Other long-term employee benefitsThe liability for annual leave and long service leave not expected to be settled within 12 months of the reporting date are recognised in non-current liabilities, provided there is an unconditional right to defer settlement of the liability. The liability is measured as the present value of the expected future payments to be made in respect of services



provided by employees up to the reporting date. Consideration is given to expected future wage and salary levels, experience of employee departures and period of service. Expected future payments are discounted using market yields at the reporting date on national government bonds with terms to maturity and currency that match, as closely as possible, the estimated future cash outflows.

Defined contribution superannuation expenseContributions to defined contribution superannuation plans are expensed in the period in which they are incurred.

i. PROVISIONSProvisions are recognised when the consolidated entity has a legal or constructive obligation, as a result of past events, for which it is probable that an outflow of economic benefits will result and that outflow can be reliably measured.

j. BORROWING COSTSBorrowing costs directly attributable to the acquisition, construction or production of assets that necessarily take a substantial period of time to prepare for their intended use or sale, are added to the cost of those assets, until such time as the assets are substantially ready for their intended use or sale. All other borrowing costs are recognised in statement of profit or loss in the period in which they are incurred.

k. LEASESLeases are classified as finance or operating leases. A lease that transfers substantially all of the benefits and risks incidental to the ownership of property is classified as a finance lease. At the inception of a finance lease, an asset and an obligation are recorded at an

amount equal to the lesser of the present value of the minimum lease

payments and the property’s fair value at the beginning of the lease.

Assets recorded under finance leases are amortised on a diminishing

value basis over the term of the lease that is the estimated useful lives

of the assets. All other leases are accounted for as operating leases

wherein rental expenses are recognised on a straight line basis.

l. TRADE PAYABLESTrade and other payables are stated at amortised cost, which

approximates fair value due to the short term nature of these liabilities.

m. FAIR VALUE MEASUREMENTAll assets and liabilities of the association for which fair value is

measured or disclosed in the financial statements are categorised

within the following fair value hierarchy, based on the data and

assumptions used in the most recent specific appraisals:

* Level 1 – represents fair value measurements that reflect

unadjusted quoted market prices in active markets for identical

assets and liabilities;

* Level 2 – represents fair value measurements that are substantially

derived from inputs (other than quoted prices included within level

1) that are observable, either directly or indirectly; and

* Level 3 – represents fair value measurements that are substantially

derived from unobservable inputs.

None of the association’s valuations of assets or liabilities are eligible

for categorisation into level 1 of the fair value hierarchy. There were no

transfers of assets between fair value hierarchy levels during the year.



n. GRANTSNon-reciprocal grant revenue is recognised in profit or loss when the entity obtains control of the grant and it is probable that the economic benefits gained from the grant will flow to the entity and the amount of the grant can be measured reliably.

If conditions are attached to the grant which must be satisfied before it is eligible to receive the contribution, the recognition of the grant as revenue will be deferred until those conditions are satisfied.

When grant revenue is received whereby the entity incurs an obligation to deliver economic value directly back to the contributor, this is considered a reciprocal transaction and the grant revenue is recognised in the statements of financial position, with a corresponding amount of income recognised in the statement or profit or loss.

o. GOODS AND SERVICES TAX (GST)Revenues, expenses and assets are recognised net of the amount of associated GST, unless the GST incurred is not recoverable from the Australian Taxation Office. In this case it is recognised as part of the cost of acquisition of the asset or as part of the expense. Receivables and payables are stated inclusive of the amount of GST receivable or payable. The net amount of GST recoverable from or payable to, the Australian Taxation Office is included with other receivables or payables in the statement of financial position. Cash flows are presented on a gross basis. The GST components of cash flows arising from investing or financing activities which are recoverable from, or payable to the Australian Taxation Office, are presented as operating cash flows.

p. IMPAIRMENTAt the end of each reporting period, the consolidated entity reviews the carrying values of its tangible and intangible assets to determine whether there is any indication that those assets have been impaired. If such an indication exists, the recoverable amount of the asset, being the higher of the asset’s fair value less costs to sell and value in use, is compared to the asset’s carrying value. Any excess of the asset’s carrying value over its recoverable amount is expensed to the statement of profit or loss.

Where it is not possible to estimate the recoverable amount of an individual asset, the consolidated entity estimates the recoverable amount of the cash-generating unit to which the asset belongs.

q. PRINCIPLES OF CONSOLIDATIONA controlled entity is an entity that the parent entity has the power to control the financial and operating policies of an entity so as to obtain benefits from its activities. A list of controlled entities is contained in Note 14 to the financial statements. All controlled entities have a 30 June financial year-end.

All inter-company balances and transactions between entities in the consolidated entity, including any unrealised profits or losses, have been eliminated on consolidation. Accounting policies of controlled entities are consistent with those policies applied by the parent entity.

r. CHANGE IN ACCOUNTING POLICYThe consolidated entity has adopted all the new, revised or amending accounting standards and interpretations issued by the Australian Accounting Standards Board (AASB) that are mandatory for the current reporting period.



The adoption of these accounting standards and interpretations did not have any significant impact on the financial performance or position of the consolidated entity.

s. NEW ACCOUNTING STANDARDS FOR APPLICATION IN FUTURE PERIODSThe AASB has issued new and amended accounting standards and interpretations that have mandatory application dates for future reporting periods and which the entity has decided not to early adopt. At the date of authorisation of the financial report, the new or amended Australian Accounting Standards with future commencement dates are either not applicable to the association activities, or have no material impact on the association.

t. CRITICAL ACCOUNTING ESTIMATES AND JUDGEMENTSThe Council evaluates estimates and judgements incorporated into the financial statements based on historical knowledge and best available current information. Estimates assume a reasonable expectation of future events that may have a financial impact on the entity and are based on current trends and economic data, obtained externally and within the Association.

There were no significant estimates or judgements used by the Council in the preparation of these financial statements.



Note 2: Sales revenue CONSOLIDATED PARENT

2016 ($) 2015 ($) 2016 ($) 2015 ($)

Insurance commissions 463,345 505,817 463,345 505,817

Magazine sales 143,867 239,059 143,867 249,059

Training 1,135,780 1,307,759 1,135,780 1,307,759

Apprentice Connect 26,776 26,582 26,776 26,582

Events 58,844 13,891 58,844 13,891

Sundry 411,255 269,491 411,255 269,491

Project income 763,014 871,224 758,680 2,510

Agency fee - Master Electricians Association Limited

875,263 846,173 875,263 846,173

TOTAL SALES REVENUE 3,878,144 4,079,996 3,873,810 3,221,282



Note 3: Other income CONSOLIDATED PARENT

2016 ($) 2015 ($) 2016 ($) 2015 ($)

Administration and management fees - - - 807,706

Rental income 255,104 415,843 255,104 415,843

Grants received 443,833 708,415 359,931 339,769

Interest received 29,106 47,801 20,593 14,536

Sponsorship income 837,907 1,045,328 837,907 1,045,328

Revenue from membership fees 5,466,440 6,787,325 5,466,440 6,787,325

TOTAL OTHER INCOME 3,878,144 4,079,996 3,873,810 3,221,282

Note 4: Remuneration of auditorsDuring the year the following fees were paid or payable for services provided by the auditor of the parent entity and its controlled entities:

Audit of financial statements 37,700 44,319 37,700 44,319

Prior year under accrual 681 1,571 681 1,571

38,381 45,890 38,381 45,890

Note 5: Cash and cash equivalentsCURRENT ASSETS

Cash on hand 350 773 349 773

Cash at bank 1,747,697 2,877,025 1,252,094 1,355,511

1,748,047 2,877,798 1,252,443 1,356,284



Note 6: Trade and other receivables CONSOLIDATED PARENT

2016 ($) 2015 ($) 2016 ($) 2015 ($)

a. CURRENT

Trade receivables 425,085 746,876 425,085 719,999

Provision for impairment of receivables 169,250 (289,555) (169,250) (289,555)

255,835 457,321 255,835 430,444

Prepayments 341,557 445,308 341,553 445,304

Other receivables 400,151 217,442 400,151 310

997,543 1,120,071 997,539 876,058

b. NON-CURRENT

Loans to group companies - - 1,041,814 2,312,910

Provision for impairment - - (546,207) (639,086)

- - 495,607 1,673,824

The loans to group companies are unsecured, interest free and have no fixed repayment terms.



Note 7: Property, plant, and equipment CONSOLIDATED PARENT

2016 ($) 2015 ($) 2016 ($) 2015 ($)

LAND AND BUILDINGS

Freehold land at independent valuation (level 2)* 3,920,000 3,920,000 3,920,000 3,920,000

Total freehold land 3,920,000 3,920,000 3,920,000 3,920,000

Buildings at independent valuation (level 2)* 4,030,000 4,030,000 4,030,000 4,030,000

Less accumulated depreciation (403,000) (302,250) (403,000) (302,250)

Total buildings 3,627,000 3,727,750 3,627,000 3,727,750

TOTAL LAND AND BUILDINGS 7,547,000 7,647,750 7,547,000 7,647,750

PLANT AND EQUIPMENT

Furniture, fixtures, and fittings at cost 499,531 493,192 499,531 493,192


Total furniture, fixtures, and fittings 207,106 253,050 207,106 253,050

Computer equipment at cost 189,864 180,083 189,864 180,083


Total computer equipment 14,709 22,234 14,709 22,234

Office equipment at cost 140,441 133,021 140,441 133,021


Total office equipment 12,193 7,723 12,193 7,723

Motor vehicles at cost 247,708 332,062 247,708 332,062


Total motor vehicles 63,908 147,750 63,908 147,750

TOTAL PLANT AND EQUIPMENT 297,916 430,757 297,916 430,757

TOTAL PROPERTY, PLANT, AND EQUIPMENT 7,844,916 8,078,507 7,844,916 8,078,507



MOVEMENTS IN CARRYING AMOUNTS

PARENT: 2015 LAND ($) BUILDINGS ($)

FURNITURE, FIXTURES, AND

FITTINGS ($)COMPUTER

EQUIP. ($)OFFICE

EQUIP. ($)MOTOR

VEHICLES ($) TOTAL ($)

Balance at the beginning of year 3,920,000 3,828,500 307,741 50,011 18,238 246,129 8,370,619

Additions - - 4,611 6,236 - - 10,847

Disposals - - (7,365) (2,008) (4,248) (26,808) (40,429)

DEPRECIATION EXPENSE - (100,750) (51,937) (32,005) (6,267) (71,571) (262,530)

CARRYING AMOUNT AT END OF YEAR 3,920,000 3,727,750 253,050 22,234 7,723 147,750 8,078,507

PARENT: 2016


Additions - - 6,339 9,781 7,419 - 23,539

Disposals - - - - - (21,131) (21,131)

Depreciation expense - (100,750) (52,283) (17,306) (2,949) (62,711) (235,999)


CONSOLIDATED: 2015


Additions - - 4,611 6,236 - - 10,847

Disposals - - (7,365) (2,008) (4,247) (26,808) (40,429)



CONSOLIDATED: 2016


Additions - - 6,339 9,781 7,419 - 23,539

Disposals - - - - - (21,131) (21,131)



NOTES TO THE FINANCIAL STATEMENTS CONT’DNote 7: Property, plant, and equipment cont’d


Note 8: Intangibles CONSOLIDATED PARENT

2016 ($) 2015 ($) 2016 ($) 2015 ($)

Computer software at cost 247,836 179,010 247,836 179,010

Less accumulated amortisation (96,162) (39,842) (96,162) (39,842)

Brands and trademarks - - 950,000 950,000

Less accumulated amortisation - - (142,500) (95,000)

TOTAL INTANGIBLES 151,674 139,168 959,174 994,168

MOVEMENTS IN CARRYING AMOUNTS

Balance at the beginning of the year 139,168 123,281 994,168 1,025,781

Additions 68,825 51,176 68,825 51,176

Disposals - (577) - (577)

Depreciation expense (IT software) (56,319) (34,712) (56,319) (34,712)

Amortisation expense (brands and trademarks)

- - (47,500) (47,500)

CARRYING AMOUNT AT END OF YEAR 151,674 139,168 959,174 994,168

Note 9: Trade and other payablesTrade payables 194,274 411,406 194,274 411,406

Amounts received in advance 1,238,462 1,744,412 1,238,462 1,660,510

Other payables 671,265 753,444 671,265 745,645

2,104,001 2,909,262 2,104,001 2,817,561



Note 10: Financial liabilities CONSOLIDATED PARENT

2016 ($) 2015 ($) 2016 ($) 2015 ($)

a. CURRENT

Secured liabilities

Hire purchase 78,882 166,154 78,882 166,154

Commercial loan - 73,234 - 73,234

Commercial bills 5,600,000 59,333 5,600,000 59,333

TOTAL CURRENT FINANCIAL LIABILITIES 5,678,882 298,721 5,678,882 298,721

b. NON-CURRENT

Secured liabilities

Hire purchase 12,440 134,824 12,440 134,824

Commercial bills - 5,600,000 - 5,600,000

TOTAL NON-CURRENT FINANCIAL LIABILITIES

12,440 5,734,824 12,440 5,734,824

The commercial bills are secured by an unlimited guarantee by Master Electricians Australia Limited and Sneca Pty Ltd, a first registered mortgage over all land and buildings owned by the parent entity and a business mortgage over all assets located at 57 Berwick Street and a blocked cash deposit of $20,728. Hire purchase loans are secured by the related plant and equipment included in Note 7.



Note 11: Taxes CONSOLIDATED PARENT

2016 ($) 2015 ($) 2016 ($) 2015 ($)

a. RECONCILIATION OF INCOME TAX EXPENSE TO PRIMA FACIE TAX PAYABLE

(Loss)/Profit before income tax (306,597) 123,751 (354,096) 76,249

Prima facie income tax expense at 30% (91,979) 37,125 (106,229) 22,875

Non-assessable income 184,982 (52,937) (106,229) 22,875

Tax losses not brought to account - 15,812 - -

Tax losses utilised (93,003) - - -

INCOME TAX EXPENSE (BENEFIT) - - - -

b. TAX LOSSES

Tax losses available to the group but not recognised as deferred tax assets:

Master Electricians Australia Ltd 545,829 855,840 - -

ECA SafetyConnect Pty Ltd - - - -

ME Contractors Pty Ltd - - - -

545,829 855,840 - -

TAX BENEFIT AT 30% 163,749 256,752 - -



Note 12: Cash flow information CONSOLIDATED PARENT

2016 ($) 2015 ($) 2016 ($) 2015 ($)

a. RECONCILIATION OF CASH FLOW FROM OPERATIONS WITH (LOSS)/PROFIT AFTER INCOME TAX

NET (LOSS)/PROFIT FOR THE PERIOD (306,597) 123,751 (354,096) 76,249

NON-CASH FLOW ITEMS

Depreciation and amortisation 292,318 297,242 339,818 344,742

Loss/(profit) on disposal of fixed assets (4,687) 19,668 (4,687) 19,668

CHANGES IN ASSETS AND LIABILITIES

(Increase)/decrease in receivables 122,528 (124,923) (121,481) (213,904)

(Increase)/decrease in loans to group companies - - 1,178,217 82,383

Increase/(decrease) in deferred tax liabilities - - - -

Increase/(decrease) in payables (805,261) 270,703 (713,560) 387,212

Increase/(decrease) in provisions (19,283) 44,614 (19,283) 44,614

NET CASH FLOW FROM OPERATIONS (720,982) 631,055 304,928 740,964

b. CREDIT STANDBY ARRANGEMENTS WITH BANKS

Credit facility 450,000 450,000 450,000 450,000

Amount utilised (11,208) (10,830) (11,208) (10,830)

438,792 439,170 438,792 439,170

c. LOAN FACILITIES

Credit facility 5,600,000 5,673,234 5,600,000 5,673,234

Amount utilised (5,600,000) (5,673,234) (5,600,000) (5,673,234)

- - - -



Note 13: Capital and leasing commitments CONSOLIDATED PARENT

2016 ($) 2015 ($) 2016 ($) 2015 ($)

a. OPERATING LEASE COMMITMENTS

Non-cancellable operating leases contracted for but not capitalised in the financial statements are payable as follows:

Lease - minimum lease payments

- not later than 12 months 147,096 140,002 147,096 140,002

- between 12 months and 5 years 96,879 143,420 96,879 143,420

- greater than 5 years - - - -

243,975 283,422 243,975 283,422

b. HIRE PURCHASE LEASE COMMITMENTS

Non-cancellable hire purchase leases contracted for and capitalised in the financial statements are payable as follows:

Lease - minimum lease payments

- not later than 12 months 78,882 166,154 78,882 166,154

- between 12 months and 5 years 12,440 134,824 12,440 134,824

- reater than 5 years - - - -

MINIMUM LEASE PAYMENTS 91,322 300,978 91,322 300,978

c. CAPITAL COMMITMENTS

Non-cancellable capital commitments contracted for but not capitalised in the financial statements are payable as follows:

Capital - minimum capital commitments

- not later than 12 months - 50,000 - 50,000

- between 12 months and 5 years - - - -

- greater than 5 years - - - -

MINIMUM CAPITAL COMMITMENTS - 50,000 - 50,000



Note 14: Controlled entities

NAMECOUNTRY OF

INCORPORATION2016 2015

% OWNED $ % OWNED $

ME Contractors Pty Ltd*** Australia 100% 1 100% 1

Sneca Pty Ltd** Australia 100% - 100% -

Master Electricians Australia Limited* Australia - - - -

Energy Management Institute Limited* Australia - - - -

Project Safety Switch Limited Australia - - - -

1 1

* Controlled by virtue of common management and as a sole member of the company limited by guarantee.

** Sneca Pty Ltd is a wholly owned entity of ME Contractors Pty Ltd

*** Controlled by being a sole shareholder of the company.

a. BALANCES IN CONTROLLED ENTITY

TOTAL ASSETS TOTAL LIABILITES TOTAL REVENUE OPERATING RESULT

2016 ($) 2015 ($) 2016 ($) 2015 ($) 2016 ($) 2015 ($) 2016 ($) 2015 ($)

ME Contractors Pty Ltd 1 1 - - - - - -

Sneca Pty Ltd 1 1 - - - - - -

Master Electricians Australia Limited 495,607 1,765,527 1,041,437 2,404,235 96,749 1,270,623 92,878 (52,704)

Energy Management Institute Limited - - 377 377 - - - -

Project Safety Switch Limited - - - - - - - -



b. TRANSACTIONS AND BALANCES WITH CONTROLLED ENTITIES

CONSOLIDATED PARENT

2016 ($) 2015 ($) 2016 ($) 2015 ($)

Transaction with controlled entities:

Administration and management fees

Master Electricians Australia Limited - - - 807,706

- - - 807,706

Balances with controlled entities

Master Electricians Australia Limited - - 1,041,437 2,312,533

Energy Management Institute Limited - - 377 377

- - 1,041,814 2,312,910

Note 15: Events occuring after the reporting periodThere have been no significant events which have occurred subsequent to the end of the reporting period.

Note 16: Contingent liabilites and contingent assetsThe members of council are not aware of any significant contingent liabilities at the date of this report.

Note 17: Association detailsThe registered office of the Association is:

MASTER ELECTRICIANS ASSOCIATION QUEENSLAND INDUSTRIAL ORGANISATION OF EMPLOYERS 57 Berwick Street Fortitude Valley BC Queensland 4006

NOTES TO THE FINANCIAL STATEMENTS CONT’DNote 14: Controlled entities cont’d


Note 18: Financial instrumentsa. FINANCIAL RISK MANAGEMENTThe Association’s financial instruments consist mainly of deposits with banks, local money market instruments, short-term investments, accounts receivable and payable, bills and leases.

The main purpose of non-derivative financial instruments is to raise finance for operations.

Treasury risk managementThe Management Committee meets on a regular basis to analyse currency and interest rate exposure and to evaluate treasury management strategies in the context of the most recent economic conditions and forecasts.

Financial risksThe main risks the Association is exposed to through its financial instruments are liquidity risk and credit risk.

Liquidity riskThe Association manages liquidity risk by monitoring forecast cash flows and ensuring that adequate unutilised borrowing facilities are maintained.

Credit riskThe maximum exposure to credit risk, excluding the value of any collateral or other security, at balance date to recognised financial assets, is the carrying amount, net of any provisions for impairment of those assets, as disclosed in the statement of financial position and notes to the financial statements.

The consolidated entity does not have any material credit risk exposure to any single receivable or group of receivables under financial instruments entered into by the Association.

Price riskThe Association is not exposed to any material commodity price risk.



b. INTEREST RATE RISKThe Association’s exposure to interest rate risk, which is the risk that a financial instrument’s value will fluctuate as a result of changes in market interest rates and the effective weighted average interest rates on classes of financial assets and financial liabilities, is as follows:

WEIGHTED AVERAGE EFFECTIVE INTEREST RATE FLOATING INTEREST RATE FIXED INTEREST RATE MATURING

WITHIN 1 YEAR 1–5 YEARS

2016 (%) 2015 (%) 2016 ($) 2015 ($) 2016 ($) 2015 ($) 2016 ($) 2015 ($)

CONSOLIDATED

Financial assets

Cash on hand 0.0% 0.0% 350 773 - - - -

Cash at bank 1.3% 1.9% 1,747,697 2,877,025 - - - -

TOTAL FINANCIAL ASSETS 1,748,047 2,877,798 - - - -

Financial liabilities

Hire purchase 8.4% 8.5% - - 78,882 166,154 12,440 134,824

Commercial bills 6.7% 6.7% - - 5,600,000 59,333 - 5,600,000

Commercial loan - 8.6% - - - 73,234 - -

TOTAL FINANCIAL LIABILITIES - - 5,678,882 298,721 12,440 5,734,824

PARENT

Financial assets

Cash on hand 0.0% 0.0% 349 773 - - - -

Cash at bank 1.3% 2.4% 1,252,094 1,355,511 - - - -

TOTAL FINANCIAL ASSETS 1,252,443 1,356,284 - - - -

Financial liabilities

Hire purchase 8.4% 8.5% - - 78,882 166,154 12,440 134,824

Commercial bills 6.7% 6.7% - - 5,600,000 59,333 - 5,600,000

Commercial loan - 8.6% - - - 73,234 - -

TOTAL FINANCIAL LIABILITIES - - 5,678,882 298,721 12,440 5,734,824

NOTES TO THE FINANCIAL STATEMENTS CONT’DNote 18: Financial instruments cont’d


c. NET FAIR VALUESThe carrying value of the Association’s financial assets and liabilities approximate their fair values.

Note 19: Remuneration to councillorsThe following remuneration was paid to councillors:

2016 ($) 2015 ($)

Chris Lehman 3,000 -

Tamantha Stanton 3,000 -

Vince Whelan 3,000 -

John Horan 2,000 -

Owen Blamires 3,000 -

Robert Pearson (resigned) 2,000 -

16,000 -

NOTES TO THE FINANCIAL STATEMENTS CONT’DNote 18: Financial instruments cont’d


I, Carol Caton CPA, hereby certify:

i) As the Chief Financial Officer, I am the person responsible for keeping the accounting and other records of the Master Electricians Association Queensland Industrial Organisation of Employers for the year ended 30 June 2016;

ii) The number of financial members at the end of the year was 1,583;

iii) The number of non-financial members at the end of the financial year was 97;

iv) In respect of the financial year, in my opinion:

a) the accounts show a true and fair view of the organisation’s financial affairs at the end of the year;

b) a record was kept of all amounts paid by, or collected from, the organisation’s members;

c) all amounts so paid or collected have been credited to a financial institution account to which the amounts must be credited under the organisation’s rules;

d) each expenditure item by the organisation, was approved under the organisation’s rules before it was incurred;

CERTIFICATE BY ACCOUNTING OFFICER OF UNION

e) no payment was made for a special account of the organisation’s other than the purpose for which the fund was operated and, all payments were approved in accordance with the rules of the organisation;

f) no loans or other financial benefits were granted to persons holding office/or employees of the organisation; and

g) the register of members of the Industrial Organisation is maintained in accordance with the Industrial Relations Act 1999.


I, Tamantha Stanton, being the Treasurer of the Master Electricians Association Queensland Industrial Organisation of Employers, state that in my opinion:

i) The attached Statement or Profit or Loss, Statement of Comprehensive Income shows a true and fair view of the transactions of the Association for the financial period ended 30 June 2016 and the attached Statement of Financial Position gives a true and fair view of the financial position of the Association as at that date;

ii) A record has been kept of all monies paid by, or collected from members of the Association, and all monies so paid or collected have been credited to the Bank Account to which those monies are to be credited, in accordance with the rules of the Association;

iii) Before any expenditure was incurred by the Association, approval of the incurring of the expenditure was obtained in accordance with the rules of the Association;

iv) No loans or other financial benefits have been granted to persons holding office in the Association; and:

CERTIFICATE BY TREASURER

v) (v) the register of members of the Industrial Organisation is maintained in accordance with the Industrial Relations Act 1999.

Members are advised that in accordance with section 556 of the Industrial Relations Act 1999, members may apply for additional information as prescribed by Regulation 46 and 47 of the Industrial Relations Regulations.


In accordance with a resolution of the Council of the Master Electricians Association, Queensland Industrial Organisation of Employers, we state that:

In the opinion of the Council:

i) The attached accounts give a true and fair view of the financial affairs of the Industrial Organisation as at 30 June 2016;

ii) The attached accounts were prepared in accordance with the Industrial Relations Act 1999;

iii) The organisation was solvent during the whole period;

iv) During the period, meetings of the Council were held in accordance with the rules of the Industrial Organisation;

v) During the period, there have been no instances where any of the Organisation’s records or rules, or copies of them, have not been given to the Organisations Members under the Industrial Relations Act 1999, Regulations or Rules, or made available in accordance with the Act; and

CERTIFICATE BY MEMBERS OF COUNCIL

vi) the audit report and relevant accounts for the financial period ended 30 June 2015 have been:

a) Presented to a Council’s meeting on 18th August 2015 under section 565 of the Industrial Relations Act 1999

b) Given to its members under section 566 of the Industrial Relations Act 1999

On behalf of the Council.


I, Anthony Arnold, being the President of the Master Electricians Association, Queensland Industrial Organisation of Employers, hereby certify that the documents lodged herewith are copies of the documents presented to and endorsed by the management Council of Master Electricians Association, Queensland Industrial Organisation of Employers on 24th August 2016, and that a copy will be provided to the members in accordance with the provisions of the Act.

CERTIFICATE BY PRESIDENTIndustrial Relations Act 1999, Section 570





P: 1300 889 198

F: 1800 622 914

E: [email protected]

Documents

ANNUAL REPORTSydney, Newcastle, and Canberra saw in excess of 150 attendees across four events. The sessions were aimed at providing information to the industry on proposed changes