annual report 2013

Think building. Think Master Builders.

CONTENTS1. About Master Builders

2. President’s report

4. Highlights & challenges

6. Our performance

8. Our members

10. Our people

12. Our business

15. Master Builders Foundation

16. Policy & advocacy

20. State of the state

22. Regional overview

24. Corporate governance

26. Financial statements

Queensland Master Builders Association Industrial Organisation of Employers

ABN 96 641 989 386 RTO 30097

2012 Housing & Construction Awards winning projects are featured throughout this report.

© 2013 Queensland Master Builders Association. No text, photo or graphic shall be reproduced, copied, published,

broadcast, rewritten for broadcast or publication, or redistributed directly or indirectly in any medium without permission. No material

or links or any portion thereof may be stored in a computer except for personal and non-commercial use.

In our continuing tough economic times, Master Builders prides itself on our ongoing dedication to members. We have the ear of government and ensure we take every opportunity to push for reforms that will benefi t our members.

Derek Pingel

Master Builders President

ANNUAL REPORT 2013 MASTER BUILDERS < 1

About Master Builders

Master Builders is the number one source

of practical and relevant information

regarding the Queensland building

and construction industry. We keep our

members informed with regular updates

on changes to building codes and

legislation, industrial relations, and work

health and safety.

Master Builders membership is the key

to success in Queensland’s construction

industry. With quality training courses

developed specifi cally for the building

and construction industry, expert advice

on technical, legal and contractual

matters, industrial relations and human

resource support, work health and safety

advice, and a dispute resolution service,

we help our members to operate a

professional business.

We also save our members time and

money and help them to operate a

profi table business through cross-

industry networking opportunities,

exclusive member discounts, the Find a

Master Builder service, Master Builders

Housing & Construction Awards program

and our unique display village concept.

We are the voice of the industry. Master

Builders is committed to representing the

interests of members and the broader

building and construction industry

in Queensland. We achieve this with

comprehensive research and assessment

of industry issues, active lobbying to

all levels of government, and strong

representation on key industry bodies.

In today’s demanding work environment,

where change is a constant, complexity

is the norm and new issues arise daily,

having Master Builders to turn to is a

distinct advantage to our members.

Master Builders is the peak industry association representing buildingand construction in Queensland since 1882. With approximately 8,500members, we are the voice of the industry. Our services support members to operate professional and profi table businesses that deliversuperior quality outcomes to their customers.

+ VisionTo be recognised as the leader in:

• Representing the building and construction industry in

Queensland

• Providing professional advice, products and services to our

members

+ Mission• To be the essential business resource to our members

• To shape the future of the building and construction

industry through eff ective infl uence on government,

industry and stakeholders

+ Values• Pride and professionalism – in the way we undertake

our work and interact with our members, the industry and

relevant stakeholders

• Responsibility – to be accountable for delivering eff ective,

effi cient customer service in a timely manner

• Integrity – in achieving our goals and meeting our

commitments to our members and customers

• Delivery – to provide products and services, on a timely

basis, that exceeds the expectations of all customers

• Excellence – in everything we do

2 > MASTER BUILDERS ANNUAL REPORT 2013

President’s report

In our continuing tough economic times, Master Builders prides itself on

our ongoing dedication to members. We have the ear of government

and ensure we take every opportunity to push for reforms that will

benefi t our members.

As part of our lobbying eff orts, Master Builders regularly records wins on

behalf of members and the broader industry. Countering rising building

costs is a critical part of increasing building activity levels. Our eff orts in

this area during the year were two-fold – lobbying the government to

ensure additional costs on new construction are kept to a minimum, and

promoting effi cient building practices.

In looking back on some of our successes during the year, I particularly

recall the scrapping of the waste levy and the removal of the mandatory

water tank requirement for new homes. We believe these are a positive

step towards supplying aff ordable housing across the state.

In May, we were delighted to learn that the Queensland Building

Services Authority (BSA) would be overhauled and replaced by a new

commission in January 2014. In doing this, the government addressed

some of our major issues, including retaining the home warranty

scheme, introducing a new disputes resolution process and keeping a

comprehensive licensing system. We also welcomed the implementation

of a rapid dispute adjudication system for the housing sector.

Supporting apprentices is very important to Master Builders. To that

end, we launched the Construction Apprenticeship Mentoring Scheme

– otherwise known as CAMS – to support and encourage apprentices

to last the distance of their training. We started off with ten mentors

attending our fi rst training workshop in Brisbane, and now have over 40

mentors signed up across the state who voluntarily give of their time to

add value to our building industry apprentices. With a 50% apprentice

drop-out rate, it is an extremely worthwhile scheme, and one we are

proud of.

In a further show of support for training and development, we launched

a Continuing Professional Development (CPD) scheme for our members

in May – to help put the ‘master’ back into Master Builders – and the

fi rst intake of our Building Leaders in Construction course received their

Diplomas of Management. The course continues to run successfully.

This has been a year of investment for Master Builders. We have

implemented eDocs, an online system that gives members access to

contracts and supporting documents for all their commercial, residential

and subcontracting needs. More than 1,500 members are actively

It can be hard to gauge the state of the building and constructionindustry, with so many differing reports and statistics being bandied about. As I refl ect on the year, it seems clear that, while there have been some ‘green shoots’ for the industry during 2012–13, what is stilldesperately needed is an increase in consumer confi dence.


using the eDocs system. Work has also commenced on

other key projects, such as online safety management

plans, a business-to-business networking portal and an

eLearning system.

Internally, we improved our systems by introducing a

new intranet and upgrading our membership database.

We also launched our Facebook site in June, which

received over 100 ‘likes’ in its fi rst month and is now well

above 500 likes.

In 2012–13 we renewed our face-to-face focus on

membership recruitment by employing Membership

Recruitment Offi cers (MROs). Over the year, we had

nine MROs working across the state to spread the

word on the benefi ts of joining Master Builders. We are

committed to our members having access to the same

level of representation, no matter where they are based

geographically. For this reason, we have dedicated MROs

and Regional Managers assigned to all Queensland

regions, ensuring that all members have a voice. Despite

our MROs reporting a tough year, with many builders

low in confi dence and, in some cases, no work, during

2012–13 we gained 1,636 new members, with an overall

net gain to our membership base. This is the fi rst time

since 2008 that our net membership has increased.

We also opened two new Master Builders display villages:

‘Arise’ at Rochedale and ‘The Meadows’ at Pimpama.

We are confi dent there will be a resurgence in the

development and success of Master Builders display

villages over the next couple of years.

On a fi nal note, 2012–13 saw the departure of Executive

Director, Graham Cuthbert after 30 years with Master

Builders. I would like to personally thank Graham. His

outstanding achievements as Executive Director will be

marked as signifi cant in Master Builders 130 year history.

We welcomed Graham’s replacement, Grant Galvin, who

joined our association on 1 July. Grant joins us after

almost eight years in various roles at News Limited. His

business leadership skills will complement the already

strong leadership team at Master Builders. I look forward

to working alongside him as we develop and grow

into the new fi nancial year. Grant will work closely with

the Executive to plan for the growth of our fantastic

organisation and industry into the future. I wish him

every success with his future here at Master Builders.

Derek Pingel

President, Master Builders Queensland

During the fi nancial year

1,558 membersactivated their eDocs account

16,555documents were fi nalised

57,510credits were purchased (at a total of $92,169)

eDocs is smart and fl exible with

24/7 access

4,180technical, legal, contractual and disputes queries

answered

6,000workplace relations and workplace health and

safety queries responded to

Recruited 1,636new members into the association

8,470 members current membership base


Highlights & challenges

+ Tackled weakening membershipdemand with a renewed recruitment focus,

which resulted in a net increase in our

membership base for the fi rst time since 2008

+ Engaged with members

g gg

and the industry through a range of new

products and services, including eDocs, CPD

and the CAMS

+ Successfully lobbied the government to:+ Remove mandatory water tank requirements for new homes

+ Provide a more transparent and effi cient ‘worker’ defi nition for workers’ compensation

+ Redirect the First Home Owners Grant to new construction only

+ Delay the introduction of several work health and safety codes

+ Overhaul the BSA

+ Trained 3,568 industry participantsacross our diploma, certifi cate and short course

programs


+ Improved our internal systems by introducing a new intranet and upgrading

our membership database

+ Launched our social media strategy to help facilitate discussion, conversation and

two-way communication with members and

other key stakeholders

+ Exceededour budgetedinsurance

g

operationssurplus, despite a harsh market environment.

ChallengesLike any association, we also faced some challenges during the fi nancial year...

— Weakening demand for membership as a result of ongoing economic uncertainty, fragile consumer

confi dence and low building activity

— Keeping up with rapid changes in technology and social media

— Remaining fi nancially viable in an increasingly diffi cult fi nancial climate; reporting a net operating loss for

2012–13, the fi rst time in many years

— Increasing regulations and government reporting requirements, such as workplace gender equality and

fi nancial disclosure under the Industrial Relations (Transparency and Accountability) Bill 2013


Our performance

Strategic plan for 2008–2012*

our members

Achieve membership growth through service excellence and a combined focus on retention and growth

Communicate regularly with and deliver tailored educational/information products and services to members

Encourage member consultation and participation

Develop and deliver contemporary and cost eff ective products and services

Build a stronger brand and profi le Develop strong brand awareness amongst members and stakeholders

Develop a strong policy process that protects and advances the interests of the industry

Foster a culture that values

staff and provides outstanding

customer service

Have well trained and experienced staff

Promote eff ective internal and external communication

Develop proactive staff policies

Optimise operational eff ectiveness Ensure an eff ective organisational management structure is in place

Put in place a secure asset base to maintain organisational viability

Continuous business process improvement

Eff ective IT business solutions

*The strategic plan was extended to include 2012–13. A new plan will be developed in 2013–14.


What did we achieve?

• Recruited 1,636 new members, with a focus on membership recruitment, which included the appointment of MROs in the regions

• Implemented a revised onboarding and engagement program for new members, and continued with a range of retention initiatives

• Answered 4,180 technical, legal, contractual and dispute queries

• Responded to around 6,000 workplace relations and work health and safety queries (Note: This fi gure has increased substantially from the previous fi nancial

year due to enhanced reporting processes.)

• Launched a social media strategy to help facilitate discussion, conversation and two-way communication with members and other key stakeholders

• Delivered tailored information and advice on issues directly aff ecting members, particularly regarding the changes to mandatory water tank requirements, new

taxable payments reporting, changes to standards for garage doors, changes to the defi nition of a worker for workers’ compensation and new window barrier

requirements, as well as the introduction of the Queensland Code of Practice and Dad and Partner Pay

• Continued to communicate with members regularly across a range of channels, including face-to-face consultation, events, the Master Builder magazine and other

publications, and electronically through a range of targeted emails and eNewsletters

• Introduced a new voluntary CPD scheme to help members and their employees improve their skills and knowledge, to increase member engagement, and to

help members diff erentiate themselves as a ‘Master Builder’

• Launched a new electronic documents and online core services system, eDocs, which provides members with online access to current and compliant

contracts and supporting documents

• Continued to strengthen the Master Builders brand through our display village advertising

• Delivered a Google AdWord campaign to leverage the government’s Great Start Grant and promote members on the Find a Master Builder search

• Developed ongoing media awareness and key messages for Master Builders spokespeople to ensure a consistent message was delivered to all media outlets

• Continued to provide funding to MATES in Construction through the Master Builders Foundation, which is funded by voluntary contributions from members

• Participated in the Business Advisory Forum, along with other key industry groups, to discuss the key drivers of business growth in Queensland, the outcomes

of which will feed into The Queensland Plan

• Presented to the BSA inquiry committee, making a stand for builders with regards to payment protection in dispute situations

• Continued to produce quarterly Survey of Industry Conditions reports that provide information and analysis on Queensland’s building and construction

industry

• Lobbied the state government to redirect the First Home Owners Grant to new construction only and increase the grant from $7,000 to $15,000, as well as

abolish the waste levy

• Continued to shape policy and provide recommendation on industry-wide issues through Master Builders Construction and Housing Sector Committees

• Encouraged staff to undertake training and professional development programs to improve delivery of Master Builders core customer services

• Continued to recognise staff with the monthly Staff Excellence Award and Employee of the Year awards

• Facilitated MATES in Construction General Awareness Training for staff to help increase awareness and empathy, particularly when dealing with members at the

front-line

• Redeveloped the staff intranet to improve internal processes and facilitate communication, to assist with the provision of better service to members

• Rolled out Microsoft Lync to all staff , which allows instant messaging and video conferencing, to help improve internal communication, particularly between

regional offi ces

• Increased staffi ng levels, recruiting a full complement of front-line MROs across the state

• Continued to off er fl exible working conditions for staff , including fl exible working hours

• Ensured a stable Senior Leadership Team, in preparation for the changeover of Executive Director

• Released a range of new products and services, including eDocs and new training courses, as well as improvements to insurance and Telstra products, to

support Master Builders core service operations

• Reviewed our investment strategy in light of prevailing economic conditions and our risk profi le, and transferred to a new investment manager

• Streamlined storage and retention practices and policies for RTO records, which are required to be kept for 30 years

• Improved our invoicing process to achieve time and cost savings

• Relocated disaster recovery facility to an accredited and certifi ed hosting provider

• Upgraded our CRM system, allowing for enhanced integration with other Microsoft products, more meaningful data analysis and access on

smartphones/tablets

• Transferred WAN connection to a new provider to increase performance and reduce costs


Our members

It has been a tough, yet rewarding

year for the Membership team.

Towards the latter part of the fi nancial

year, improving building activity,

together with a full complement

of MROs circulating Queensland,

helped to increase Master Builders

overall membership base, putting the

association in a stronger position for

the future.

The strategic decision in 2012–13 to

tackle declining membership head

on with a renewed recruitment

focus has seen Master Builders

recruit 1,636 new members during

the fi nancial year. The net result

for the year was a gain, which is a

fantastic outcome and the fi rst time

since 2008 that our net membership

base has increased. Master Builders

current membership base stands

at 8,470 members, spread across

residential and commercial builders,

trade contractors, manufacturers,

suppliers, consultants and

apprentices.

Our retention strategies are also

working commendably well,

with a revised onboarding and

engagement program for new

members. The continuation of the

membership renewal competition,

business health checks, a good

customer service program and

regular member events also helped

to stabilise retention.

With nine offi ces across

Queensland, our regional

footprint is still unmatched by

any other industry association,

and the addition of a local MRO

in each region maximises our

reach, ensuring we can help

members wherever they are

working.

New members Total new members 2012–13 = 1,636

Trade Alliance = 929

Builders = 458

Consultants, Associates & Supervisors = 149

Apprentices = 42

Manufacturers & Suppliers = 48

Students = 10

Membership by categoryTotal members as at 30 June 2013 = 8,470

Trade Alliance = 3,637

Builders = 3,535

Consultants, Associates & Supervisors = 813

Manufacturers & Suppliers = 354

Apprentices = 97

Students = 34

Brisbane/West Moreton = 3,562

Gold Coast = 1,114

Sunshine Coast =891

Downs & Western = 602

Far North Queensland = 561

Central Queensland = 501

North Queensland = 492

Mackay & Whitsunday = 435

Burnett Wide Bay = 312

Membership by region Total members as at 30 June 2013 = 8,470

The strategic decision in 2012–13 to tackle weakening membershiphead on with a renewed recruitment focus has seen Master Buildersnet membership base increase for the fi rst time since 2008.


Looking forward to the new fi nancial

year, we will implement further

changes to our recruitment and

retention strategies to ensure Master

Builders is the preferred membership

choice in the building industry.

New initiatives for members

This year, we launched a range of

new initiatives to help our members

save time and money.

eDocs

In September 2012, Master

Builders launched a new electronic

documents and online core services

system, eDocs, which provides

members with online access to

current and compliant contracts

and supporting documents for all

their commercial, residential and

subcontracting needs.

Available exclusively to Master

Builders Queensland members,

eDocs is smart and fl exible with

24/7 access. It has a user-defi ned

document management system that

off ers an address book, direct email

facility, a create copy function, a

credit pricing scheme and access to

free supporting documents.

The development of the system was

based entirely on member feedback

(from its two predecessors – CD

contracts and Documents Online).

For example, members told us they

were sick of typing the same thing

over and over again, so we created

an address book. This facility allows

users to populate a contract with

contacts from their address book.

We also replaced the subscription

payment model with a credit system,

which means that eDocs users only

pay for what they use.

During the fi nancial year, 1,558

members activated their eDocs

account, 16,155 documents were

fi nalised and 57,510 credits were

purchased (at a total of $92,169).

CPD scheme

Master Builders launched a CPD

scheme for members in June 2013.

The CPD scheme is designed to help

members and their employees to

improve their skills and knowledge,

to ensure members meet the

professional standards expected

from a ‘Master Builder’, and to

improve the overall quality of

contractors in the building and

construction industry.

Participation in the CPD scheme is

voluntary and free. Members and

their employees who choose to

participate are required to undertake

at least ten hours of activities each

year. Those who meet the annual

requirement of ten hours will receive

a Record of Achievement certifi cate

at the end of each calendar year.

At 30 June, 74 members had

registered for CPD.

Social media strategy

In early 2013, Master Builders

launched its social media strategy

to help facilitate discussion,

conversation and two-way

communication with members and

other key stakeholders.

Master Builders Twitter account

(@MBAQld) is used to disseminate

newsworthy information and

lobbying messages to the media,

politicians and key government

stakeholders.

The Master Builders Queensland

Facebook page is a space for

members to get the latest news

and announcements, information

about lobbying and advocacy eff orts,

new services and facilities, member

benefi ts, deals and events, and

industry stories and photos.

Events

Each year, Master Builders travels

the state with Roadshow – a

travelling group of industry

experts and speakers, providing

information and industry updates

for members throughout

Queensland.

The format of Roadshow changed in

2012 to include a panel discussion

of key industry people, as well as

the local Mayor, which provided

attendees with more opportunity to

interact.

This year the theme was ‘countering

the rising cost of building’, which

is critical to increasing building

activity, and gave members practical

information about reducing costs

through building smaller and

more cost eff ective homes, using

innovative building methods and

products, and implementing better

business practices.

Throughout the year, Master

Builders also continued to off er

members cross-industry networking

opportunities at range of social

events, industry updates, seminars

and workshops throughout

Queensland.

Member discounts & special offers

Master Builders continued to help

members operate more profi table

businesses through a range of

member discounts and special deals

on products and services, including

an exclusive Caltex fuel deal and

member-only pricing on Telstra

phones and internet.

We continually review our member

benefi ts ensuring the off ers we

provide are attractive and provide a

genuine benefi t that saves members

time and money.


Our people

In spite of a continuing tough economic climate, Master Buildersincreased it staffi ng levels in 2012–13 to ensure a capable team is inplace to meet the ever-changing needs of our members when activitylevels are fi nally restored.

Master Builders leadership team is dedicated to ensuring the association’s success. Our organisational structure

comprises an Executive, State Council, various committees and a Senior Leadership Team. With a variety of experience

from all sectors of the industry, our leadership team is fi rmly focused on Master Builders, the industry and its future.

Executive

In accordance with the provisions of Master Builders Constitution, the management and control of the association is

vested in an eight person Executive team, elected by the State Council every two years. The Executive meets monthly

and is solely responsible for the operational direction of Master Builders.

State Council

State Council is elected by members and is responsible for Master Builders strategic and policy direction. The group,

which meets twice per year, is made up of 16 Master Builders members, including two contractor members, and nine

divisional representatives.

Committees

Master Builders has two main committees, the Housing Sector Committee and the Construction Sector Committee.

These committees are responsible for providing recommendations on policy and industry wide issues, such as proposed

or recommended changes to laws, codes and regulations.

Back row (left to right): Peter Schriek, Executive Member; Ralf Dutton, Chairman Housing; Greg Muir, Chairman Construction; Nick Herron, Executive Member.

Front row (left to right): Ken Bowen, General Manager Insurance; Fiona Ashmore, Director Corporate Services; Grant Galvin, Executive Director; Derek Pingel,

President; Kathy Seaman, Vice President; Paul Bidwell, Deputy Executive Director; John Crittall, Director Construction Policy; Martin Brooke, Treasurer.

Absent: Paul Boddington, Executive member


These committees provide valuable

input from the coalface of the

building and construction industry

and are supported by a number

of sub-committees, as outlined in

the organisational chart. See page

25 for a detailed list of committee

members.

Division & branch structure

In addition to the Brisbane region,

Master Builders is defi ned by eight

regional divisions, each of which

is supported by a regional offi ce.

Each division has a Committee of

Management that is comprised of a

Chairman, Vice Chairman, and up to

fi ve additional members.

Elected biennially, each committee

is responsible for identifying,

discussing and recommending

courses of action in relation to local

and industry issues.

Senior Leadership Team

The day-to-day operations of Master

Builders are overseen by the Senior

Leadership Team.

Operational staff

Master Builders employees a team of talented, experienced and dedicated

staff , who provide exceptional services, benefi ts and products to Master

Builders members.

Despite continuing tough economic conditions, Master Builders increased

it staffi ng levels in 2012–13 to ensure a capable team is in place to meet

the needs of our members and the industry when activity levels are fi nally

restored. In particular, we engaged a team of MROs, with an Offi cer based in

each of the major regional centres across Queensland and three in Brisbane.

ExecutiveExecutive Director State Council

Corporate Structure

Construction

Sector

Committee

Professional

Development

Committee

Branches

Foundation

Committee

Housing

Sector

Committee

Divisions

Contracts Committee

IR Committee

Renovators Committee

IBC Committee

H&S Committee

Environment Committee


Our business

Insurance

Insurance turnover for 2012–13 was

severely impacted by the continuing

depression of building activity in

all sectors, particularly the multi-

residential and commercial markets.

The resultant decrease in the number

of project starts, which subsequently

required insurance coverage, directly

aff ected the number of polices

issued and the level of insurance

commission earnings.

Income generated from interstate

diversifi cation assisted in balancing

low building activity in Queensland;

however, towards the end of the

Our diverse range of industry related business operations continueto ensure Master Builders has a secure asset base to maintainorganisational viability well into the future.

Master Builders business operations provide members with exclusive benefi ts and help to support Master Builders

core services, ensuring the organisation is not solely reliant on membership subscriptions to fund the association.

year, the other geographical areas

in which Master Builders Insurance

Services operates also experienced

sharp activity declines.

Insurance company premiums

remained reasonably competitive,

yet stable throughout the year,

coming off the back of substantial

insurance payouts for the weather

related losses of the previous year.

In addition, the weather events

of early 2013 did not produce

any recognisable upward shift in

insurance premiums.

The key highlights and issues for

insurance operations during 2012–

13 include:

• An insurance premium turnover

of $25.5 million, which yielded

gross commission revenue of

$4.9 million and a net trading

surplus of $2.6 million, helping to

bolster Master Builders provision

of member services and

subsidise membership fees. This

trading outcome exceeded the

budgeted insurance surplus.

• Operating overheads were

contained at an exceptional level

of 47% of gross earnings.

• Ongoing improvements to the

Master Builder ProtectionPLUS

policy coverage were achieved

and resulted in many additional

benefi ts for members, included

as standard conditions of the

policies.

• The policy wordings for the

Master Trade ProtectionPLUS

plans were upgraded to match

builder policies and create

conformity of insurance coverage

for both builders and trade

contractors.

• Policy excesses for northern

Queensland insurance risks

were contained at pre-fl ood and

cyclone levels, despite many

other insurers considerably

increasing charges.

• Interstate home warranty team

experienced a transitional

year into the new government

controlled systems and

successfully held sizable market

share, despite the removal of

competition by standardisation

of premiums.

Overall, Master Builders Insurance

Services achieved a very positive

result and a profi table year in an

austere market environment.

Training & Licensing

In 2012–13, Master Builders Training

& Licensing operations performed in

line with the overall industry.

This year saw a reduction of

students enrolled in recognition

of prior learning programs for

trade qualifi cations, due to a lack

of funding (previously funded by

Construction Skills Queensland).

Conversely, in 2012–13 we achieved

a record number of enrolments

in the Certifi cate IV in Building &

Construction program, with 243

students commencing studies and

an insurance premium

turnover of

$25.5 millionyielded gross commission

revenue of

$4.9 milliona net trading surplus of

$2.6 million


79 completing. Delivered over 18 months, the Cert IV

program qualifi es successful graduates to apply for a

Builder Low Rise licence. The next fi nancial year will see

the majority of these students complete their studies.

Our shining light for the year was the development and

delivery of the inaugural Building Leaders in Construction

program. The program is aligned to the Diploma of

Management qualifi cation, and is designed for future

leaders in the construction industry. The initial program

saw 13 students commence and fi nish the program over

six months. Due to the success of the program. Master

Builders commenced a second intake of 17 students,

who are due to complete the program in late 2013. This

program is built on a residential model where students

attend live-in workshops on a Sunday and Monday.

The below is a summary of training and licensing

candidates for this fi nancial year, compared to the

previous year.

As the building and construction industry improves over

the next 12 months, we hope to see an improvement in

student numbers and revenue generated.

Course 2011–12 2012–13

Qualifi cation Enrolled Completed Enrolled Completed

Diploma of Management (Building Leaders in Construction) 13 13 17 Ongoing

Certifi cate IV in Building & Construction (Building) 209 61 243 79

Certifi cate III Carpentry 30 30 20 20

Certifi cate III Brick & Blocklaying 2 2 2 2

Certifi cate III Concreting 22 22 14 14

Certifi cate III Painting & Decorating 7 7 6 6

Certifi cate III Solid Plastering 2 2 6 6

Certifi cate III Steelfi xing 5 5 1 1

Certifi cate III Wall & Ceiling Lining 8 8 2 2

Certifi cate III Wall & Floor Tiling 12 12 7 7

Certifi cate III Construction Waterproofi ng 6 6 2 2

Short courses

Business Management 1,219 1,245

Business Management (distance) 210 166

General Safety Induction 549 440

General Safety Induction (distance) 201 208

Asbestos Removal 1,020 788

Electrical Testing & Tagging 409 382

Completed Residential Building Inspectors 41 44

Construction First Aid 35 15

Residential Building Contract 62 46

Basic Estimating for Builders 42 26

Advanced Estimating for Builders 4 18

Project Administration for Commercial Projects 22 0

Swimming Pool Inspectors Course 16 51

Small Development Master Class 27 0

Total 4,025 3,568


Telecommunications

The 2012–13 fi nancial year has

seen signifi cant development in

Master Builders telecommunications

off ering.

Master Builders forged a

new partnership with Insite

Communications to provide

sales and service support to

members on the Master Builders

Telecommunications. Insite

Communications is a trusted,

independent Telstra Business Partner,

off ering end-to-end information,

communications and technology

solutions to a diverse client base.

The Master Builders

Telecommunications plan now

includes more competitive off erings,

such as a capped mobile plan and

data plan for tablet, both of which

cannot be matched anywhere in

the marketplace. Essentially, the

Master Builders plan is ‘Telstra for

Less’ and is being very well received

by members, many of whom have

been able to signifi cantly reduce

their communication costs and

administration time.

Due to our extremely competitive

pricing, two additional Master

Builder states – Victoria and

South Australia – have joined the

Queensland managed plan to make

this the fi rst truly national member

benefi t off ering. With the strength of

national demand behind us, we will

continue to negotiate with Telstra to

develop additional product off erings

to benefi t members.

To eff ectively manage the marketing

material at a national level, we

developed a single national brand

and logo to promote the Master

Builders Telecommunications

off ering, and are in the process of

developing a private collaboration

system to provide a communication

and resource tool for all states. We

expect to launch the network before

the end of the 2013 calendar year.

Display Villages

Over the past few years, the decline

in availability of large housing

estates and new master-planned

communities has impacted on

opportunities for new display

villages, with only two new Master

Builders display villages opened and

three closed during the fi nancial year.

On a positive note, the sentiment of

display village builders, and indeed

the industry as a whole, is positive

and indicates a steady increase in

building approvals over the next two

years. This increasing confi dence

toward the latter part of the fi nancial

year, has seen more builders willing

to commit in advance to future

display villages, and also developers

willing to give the ‘go ahead’ on

approved sites that were previously

held in limbo.

The key highlights and issues for

Master Builders Display Village

operations during 2012–13 include:

• Increased our eff orts on building

relationships with key developers

who control large parcels of

prime land, such as Stockland

and Lend Lease.

• Reviewed and enhanced our

marketing strategies, procedures

and agreements, with full

support from our builders. The

Display Villages promotional

fund expenditure has been used

on primetime TV commercials, a

variety of directional and other

signage, radio campaigns, The

Courier-Mail and local newspaper

advertisements, as well as

banners on realestate.com.au

and Master Builders consumer

website.

The overall fi nancial performance

of the Display Villages business

operations was within 2% of the

budget. Although the business

operated at a loss for 2012–13, the

value received in branding of the

‘Master Builders’ brand via village

promotional fund expenditure

(around $500,000) far outweighs the

business’ expenses.

Moving forward, we will continue

to enhance our relationships with

major developers and the media

to ensure we secure prime parcels

of land for new villages, and

ensure the Master Builders brand is

strengthened though our Display

Village operations.


Master Builders Foundation

The Master Builders Foundation is our fundraising and community support

arm. It was set up to build brighter futures by providing relief to less fortunate

Queenslanders. The Foundation, which is funded by voluntary contributions

from Master Builders members, has a strong focus on matters that align with

the Queensland building and construction industry. One of these matters

is suicide prevention in the industry, which is why we have partnered with

MATES in Construction.

MATES in Construction is a non-profi t organisation set up to reduce the high

rates of suicide in the construction industry. It delivers training programs

on building sites that are aimed at raising awareness about suicide in the

workplace, making it easy to access help. The long-term objective of these

programs is to create self-sustaining suicide intervention structures on

worksites.

The Master Builders Foundation provides funds for a MATES in Construction

fi eld offi cer. The offi cer visits sites across Queensland, with a priority of fi nding

ways to extend the MATES in Construction program to smaller sites and the

housing industry. They drop in on small sites to leave posters and information

for workers, letting them know that MATES in Construction is there to

support them.

Over the year, MATES in Construction spread its reach to support

construction workers right across Queensland, from the Surat Basin in the

west and Coolangatta in the south, to Port Douglas in the north. There was

an also uptake of the program in New South Wales, South Australia and

Western Australia.

MATES in Construction relies on industry funding to exist, and the Master

Builders Foundation has been proudly supporting the organisation since July

2011. This funding is scheduled to continue for a further two years.

In 2012–13, the Master Builders Foundation continued to support worthwhile programs that helped deliver mental health and wellbeingoutcomes for Queensland building and construction workers.

The Master Builders

Foundation has a

strong focuson matters that align with

the Queensland building

and construction industry

MATES in Construction is our

pillar partnerwhose objective it is to

reduce the high rates of

sucide in the construction

industry


Policy & advocacy

Master Builders is committed to representing the interests of members and the broader building and construction industry in Queensland.

We have the ear of government and

other key decision-makers. With well-

established networks, strong staff

representation on a broad range of

industry bodies, and comprehensive

research and assessment of industry

issues, we are in a strong position to

infl uence the outcomes of issues that

aff ect our members.

Master Builders produces

regular policy submissions and

commentaries on issues that aff ect

the industry. As well as regularly

reporting on our wins for the

industry, we also produce a number

of building industry reports and

release regular media statements

that receive consistent coverage.

Master Builders Policy & Advocacy

Blueprint sets our offi cial policy

agenda for 2012–13, identifying

a number of reforms to address

the constraints on the industry,

including the availability and cost of

fi nance, level of demand, planning

approval process, interest rates and

infrastructure charges.

This year, we took every opportunity to push for reforms that would benefi t

our members, successfully lobbing the government to:

• Remove mandatory water tank requirements for new homes

• Redirect the First Home Owners Grant to new construction only

• Delay the introduction of several work health and safety codes

• Overhaul the BSA.

We also launched a range of new initiatives for members, including the CAMS

and CPD.

In June 2013, Master Builders released a six-point plan to restore confi dence

in the building and construction industry in 2013–14. Over the next 12

months, we will work with the state government to:

1. Reduce the cost of land by reforming the planning and development

system

2. Provide housing at price points that people can aff ord, with measures to

contain building costs and drive demand

3. Improve the capacity of contractors to manage their operations and legal

liabilities

4. Enhance the safety, productivity and effi ciency of the industry by

ensuring work practices are based on the rule of law

5. Improve consumer confi dence in the building and construction

industry

6. Develop skills and training that is relevant and benefi cial to the industry.

Successfully lobbied for the removal of

mandatory water tankrequirements for new homes

+Overhaul the

BSA


$15,000Great Start Grant for fi rst home owners

+$35/tonnewaste levy scrapped

Goal 1: Supply affordable housing to accommodate Queensland’s future population growth

The problem

With housing in many Queensland cities unaff ordable

to the average home buyer, measures are required to

contain the cost to build a new home and drive demand.

Key to providing more aff ordable housing options will be

reducing the cost of developing land and encouraging

smaller homes.

What we’ve achieved

• Successfully lobbied the state government to restrict

the First Home Owners Grant to new homes only.

The state government now off ers a $15,000 Great

Start Grant for fi rst home owners to stimulate new

construction.

• Worked with the state government to review local

government infrastructure, charges and planning

reforms (including retaining compensation for back-

zoning).

• Simplifi ed the process for building adjacent to utilities,

such as sewerage lines.

• Statutory easements in small lot housing.

• Worked with fi nanciers, valuers, mortgage insurers

and other stakeholders to address problems with

mortgage valuations.

Goal 2: Sustainable housing

The problem

New housing only accounts for 2% of Queensland’s total

housing stock, yet it bears nearly all of the responsibility

for reducing the environmental impact of housing. The

current mandatory environmental requirements on new

housing add substantially to its cost and this situation

has been compounded by the carbon tax.

Government environmental initiatives need to be subject

to more rigorous cost-benefi t analysis prior to their

introduction.


• Successfully lobbied the state government to remove

the mandatory requirement for rainwater tanks and

greenhouse-effi cient hot water systems in new

homes.

• Scrapped the $35/tonne waste levy on construction

and demolition material.

• Testing and tagging for electrical equipment

no longer required where there is a safety switch

in place.


Policy & advocacy

Goal 3: Improve the capacity of the industry to manage risk and, at the same time, ensure clients maintain a high level of confi dence in the building and construction industry

The problem

Measures are needed to make contracting between the

parties to a building contract fairer for all involved, and to

ensure that all building contractors are held accountable

for their work.

The Queensland Government has an obligation to deliver

projects in a fair and effi cient manner that protects the

interests of all parties within the industry. Quality of

documentation, fair contracting principles, fair allocation

of risk and the government acting as a model client are all

essential in the optimal delivery of government projects.


• Introduced a member-only voluntary scheme for CPD.

• Retained a robust licensing system for the building

and construction industry as part of a national review.

• Argued in the review of the BSA to protect the

existing mandatory Home Warranty Insurance

Scheme, extend rapid adjudication into domestic

building and ensure all contractors are accountable

for their work.

Goal 4: Attract, recruit and retain a skilled building and construction workforce

The problem

The ability to attract, recruit, develop and maintain a

skilled workforce is fundamental to the growth and

development of the industry.

The industry must recognise that there are multiple

pathways for skills acquisition, and any training system

must be broad enough to accommodate all of those

pathways. With approximately 50% of apprentices failing

to complete their training, a new apprenticeship model

needs to be considered.


• Launched the CAMS to support and encourage

apprentices to last the distance of their training. At

30 June, 41 mentors and 50 mentees were signed up

across the state.

• Launched a CPD scheme for members in June 2013.

At 30 June, 74 members had registered.

• The fi rst intake of the inaugural Building Leaders

in Construction course received their Diplomas

of Management. There were 13 students who

completed the program over six months.

• A total of 3,568 industry participants took part in

Master Builders training in 2012–13.


Goal 5: Provide safe and fair workplaces

The problem

The industry suff ers from a rigid industrial relations

system and a highly prescriptive health and safety

legislative model. The nature of the building industry

and the range of market sectors require a workplace

relations system and a health and safety legislative

framework that is fl exible and fair and provides a level of

certainty for all stakeholders.

Strict adherence to the ‘rule of law’ is a fundamental

principle for delivering safe and fair outcomes.


• Completed a review of the Queensland Code of

Practice for the Building and Construction Industry

to ensure productive and fl exible workplace

arrangements are viewed as essential in delivering

fair and productive outcomes for all parties in the

contractual chain.

• Successfully lobbied the Queensland Government

to provide a more transparent and effi cient ‘worker’

defi nition in relation to the Queensland workers’

compensation scheme.

• Successfully lobbied the state government to

establish construction industry specifi c working

parties to further explore the concerns of the

industry in relation to both the defi nition of ‘worker’

and ‘right of entry’.

• Delayed the introduction of several work health and

safety Codes of Practice to ensure more in-depth

consultation with industry.

• Increased the number of safety-related workshops

and briefi ngs delivered to members to ensure the

industry is educated and provided with forums to

discuss relevant health and safety issues.

• Worked with the state government to streamline

new asbestos regulations and keep parts of existing

state based regulations.

Goal 6: Provide greater certainty and clarity on legal liability

The problem

Builders currently have a range of statutory, contractual

and common law obligations in relation to the quality

of their work. Some of these are not constrained by the

passage of time, while others have time limits that are

inconsistent with the builder’s ability to recover damages

from the party that has undertaken the work.

The Australian Consumer Law (ACL) places additional

obligations on builders in relation to the goods and

services they supply. Builders are now generally treated

as suppliers, further complicating the legal liability issue.

This is exacerbated, given that the warranties implied

under the Queensland Domestic Building Contracts Act

2000 do not align with the guarantees under the ACL.


• The BSA will not hold contractors liable for defective

white goods and some other manufactured products.

• Worked with the state government to align

contractors’ liability periods and limit liability for latent

defects to ten years.

3,568industry participants took part in

Master Builders Training


Building activity remained subdued across much of the state during the fi nancial year, as negative infl uences, such as

lacklustre confi dence levels, fi nancing diffi culties and economic uncertainty, continued to outweigh the positives of

lower interest rates, relatively low unemployment and a relatively strong, albeit patchy, domestic economy.

In a welcome development, however, the green shoots of recovery continued to emerge in the residential sector.

While the level of building approvals was volatile during the year, it continued to gradually trend upwards from the

decade low of late 2011.

The gradual improvement in activity was refl ected in the number of dwelling unit commencements. We anticipate

that the number of dwelling unit commencements in 2012–13 will be right on our forecast of 28,000. (The fi nal

fi gures will be released in October 2013.) This will be a slight increase on 2011–12 fi gure of 27,334 and 2010–11 fi gure

of 26,683, suggesting that the residential sector may have passed the bottom of the cycle.

Total dwelling unit approvals (Queensland) seasonally adjusted

State of the state

Consistent with the theme of recent years, 2012–13 was yet another tough year for the building and construction industry.


Unfortunately the same cannot be said of the commercial sector. After being

buoyed by publicly-funded projects over the last couple of years, activity

in the sector declined in 2012–13 as funding tapered off . Private investors

were simply unable or unwilling to fund enough projects to off set the fall

in publicly-funded work. Key segments, such as retail, industrial, offi ces and

hospitality, continued struggle as a consequence. Even last year’s bright spot,

mining/resources related construction activity, also softened during the year.

Value of non-residential building approvals (Queensland)

As in 2011–12, key business performance benchmarks were negatively

impacted by the tough trading environment. Turnover and profi t languished

in contractionary territory for much of the year, although both benchmarks

were marginally better than the previous two fi nancial years.

The work pipeline also remained disappointing, with many businesses

reporting below average capacity utilisation and work levels. However,

the level of these benchmarks was better than last year. Unfortunately

employment levels in the industry also remained under pressure with many

businesses reducing the size of their workforce during 2012–13.

Business performance benchmarks

The low level of demand was the

most critical constraint on building

activity during the fi nancial year.

The ongoing weakness in demand

was driven by a range of factors,

such as lacklustre consumer and

business confi dence, continuing

global economic uncertainty and

tough trading conditions in many

key areas of the domestic economy.

Lack of confi dence, in particular,

remains the biggest issue for the

industry. Until consumer and business

confi dence recovers, there will be no

sustained recovery in building activity.

Unfortunately confi dence is an

intangible (and not necessarily logical)

beast, so it is very diffi cult to predict

when or why it will rebound – we just

know that it will eventually recover.

The availability and cost of fi nance

was the second most important

constraint on building activity

in 2012–13. As in the previous

two years, fi nance continued to

be a problem along the chain

of construction with developers,

builders and buyers all experiencing

diffi culties in securing fi nance. We

also continued to receive reports of

sales contracts falling over as a result

of mismatches between the contract

price and the lender’s valuation.

Looking forward, given the

challenging economic environment,

activity levels in the residential and

commercial sectors are expected to

remain below the long-term average

during 2013–14. Residential activity

is, however, expected to continue

to improve over the coming year. At

this stage we are forecasting 32,000

dwelling unit commencements in

2013–14. Unfortunately the outlook

is not as positive for the commercial

sector, with activity in that sector likely

to remain subdued until businesses

are relatively certain that the

economy is rebuilding momentum.


While residential construction activity levels remained below their decade

average in many regions, there were some minor positives during the year. In

particular, the level of new dwelling unit approvals in 2012–13 was actually

higher than in 2011–12 in most regions. Unfortunately the news was not as

positive for the commercial sector with many regions recording a fall in the

value of non-residential building approvals for the fi nancial year.

Despite tough conditions prevailing across much of the state, local

businesses remained optimistic about the longer-term outlook for the

industry. On the residential front, many expect the fragile recovery that

is currently underway to build momentum very gradually over the next

couple of years. On the commercial front, businesses are expecting a much

bumpier ride as the sector grapples with a wind down in public expenditure

and resources-related activity at the same time that broader private sector

expenditure remains very weak.

Regional overview

Brisbane & West

Moreton

• Total new dwelling unit

approvals were marginally higher

in 2012–13 with activity in the

high density segment of the

market improving after a very

subdued 2011–12.

• The value of non-residential

approvals jumped by 39% after

a very weak performance in

2011–12.

• Local businesses reported

that the two most important

constraints on their growth

over the last 12 months were

the lacklustre level of demand

and the availability and cost of

fi nance.

Gold Coast

• Total new dwelling unit

approvals were stronger in

2012–13 with activity in the high

density segment of the market

improving slightly after a very

subdued 2011–12.

• The value of non-residential

approvals declined by 10% as

soft local economic conditions

continued to limit commercial

building activity.

• Local businesses reported

that the two most important

constraints on their growth

over the last 12 months were

the lacklustre level of demand

and the availability and cost of

fi nance.

Region New dwelling unit approvals

July 2011 to

June 2012

July 2012 to

June 2013% change

Brisbane & West Moreton 13,669 13,866 1.4

Gold Coast 2,322 2,579 11.1

Sunshine Coast 1,776 1,693 -4.7

Downs & Western 1,677 1,688 0.7

Central Queensland 1,466 1,236 -15.7

Burnett Wide Bay 2,104 2,960 40.7

Mackay & Whitsunday 1,883 2,666 41.6

North Queensland 1,561 1,872 19.9

Far North Queensland 1,002 736 -26.5

Source: Australian Bureau of Statistics

It was yet another tough year for the building and constructionindustry in most regions of Queensland, with low confi dence levels, lacklustre demand, a high Australian dollar, a slowing domestic economy and ongoing global economic uncertainty contributing to subdued building activity in many areas.


Sunshine Coast

• Total new dwelling unit approvals were lower in

2012–13 with activity in both the low rise and higher

density segments of the market falling during the year.

• The value of non-residential approvals almost

quadrupled as a small number of important projects

(the Sunshine Coast University Hospital in particular)

moved through the approval phase.

• Local businesses reported that the two most

important constraints on their growth over the last

12 months were the lacklustre level of demand and

the availability and cost of fi nance.

Downs & Western

• Total new dwelling unit approvals were higher in

2012–13 with the growth occurring in attached

dwellings, rather than new houses (which actually

declined during the year).

• The value of non-residential approvals fell by 22%.



12 months were infrastructure charges and the

planning approval process.

Burnett Wide Bay

• Total dwelling unit approvals fell in 2012–13 with

a substantial decline in the number of new house

approvals in particular.

• The value of non-residential approvals more than

doubled after a very weak performance in 2011–12.




the planning approval process.

Central Queensland

• Total dwelling unit approvals were substantially

higher in 2012–13 with strong growth in both

detached and attached dwellings.

• The value of non-residential approvals jumped by

66% buoyed by the strong local economy.



12 months were the lower level of demand (as heat

came out of the mining boom over the course of the

year) and land availability.

Mackay & Whitsunday

• Total dwelling unit approvals were substantially

higher in 2012–13 with strong growth in both

detached and attached dwellings.

• The value of non-residential approvals rose by 20% as

the strong local economy helped to boost activity.



12 months were infrastructure charges and the

planning approval process.

North Queensland

• Total dwelling unit approvals were higher in 2012–13

although the number of new house approvals fell

during the year.

• The value of non-residential approvals declined by 30%.




the availability and cost of fi nance.

Far North Queensland

• Total dwelling unit approvals were lower in

2012–13 as the local economy continued to struggle.

• The value of non-residential approvals also fell by 35%.




infrastructure charges.


Corporate governance

Executive meetings

Master Builders is governed by an

elected Executive team, which is

charged with the responsibility of

conducting the business of Master

Builders within the policies and

budget of the organisation (see page

10 for more details). During the year,

Master Builders held 11 Executive

meetings.

Strategic planning

The fi ve year strategic plan is

developed and approved by the

State Council. State Council is

responsible for setting the strategic

and policy direction of Master

Builders, as well as tracking the

association’s performance. The

strategic plan is reviewed on an

annual basis.

Given the challenging economic times,

Master Builders made the decision to

extend the strategic plan to include

2012–13. It is anticipated that a new

strategic plan will be developed in

2013–14, following the appointment

of a new Executive Director. See page

6 for Master Builders performance

against the strategic plan.

A number of strategic projects,

benefi ting both members and

organisational effi ciencies,

have been identifi ed in which

investment will be made over the

next few years. Some of these

projects have commenced, and

will be reported on in future.

Executive attendance register

Name PositionMeetings

attended

Meetings

eligible to

attend

President 11 11

Kathy Seaman Vice President 11 11

Martin Brooke Treasurer 10 11

Greg Muir Chairman Construction 9 11

Ralf Dutton Chairman Housing 11 11

Paul Boddington Executive Member 10 11

Nick Herron Executive Member 7 7

Peter Schriek Executive Member 7 7

Rick Burns Vice President 3 4

John Gaskin Executive Member 3 4

Master Builders corporate governance systems guide the way we manage our business, minimise risk and ensure integrity. Oursystems are based on a commitment to fairness, accountability andtransparency.

Mandatory reporting requirements

Master Builders is subject to a range

of mandatory reporting requirements

covered by various legislation.

Details of these requirements are

outlined on our website at

www.masterbuilders.asn.au.

AQTF/VET Quality Framework

audit information

The Registered Training Organisation

User Choice Pre-qualifi ed Supplier

program requires Master Builders

to publish a summary of our latest

AQTF/VET Quality Framework audit

information.

Financial disclosure

Under the obligations outlined

in the Industrial Relations

(Transparency and Accountability)

Bill 2013, Master Builders makes the

following information available:

• Initial fi nancial disclosure

statement – remuneration of

ten highest paid offi cers of the

organisation for the period

1 July 2012 to 30 June 2013

• Register of gifts, hospitality

and other benefi ts given and

received from 1 July 2013

• Register of political spending as

from 1 July 2013

• Register of grants loans and

donations from 1 July 2013.

Workplace Gender Equality

Master Builders also complies with

the Workplace Gender Equality Act

2012, and has submitted a workplace

profi le to the Workplace Gender

Equality Agency.

ANNUAL REPORT 2013 <

Complaints

Master Builders is committed to resolving complaints

quickly and fairly, and we empower our people to resolve

issues as they arise. All complaints and grievances are

recorded in the complaints register and reported to the

Executive Director.

Complaints can be submitted in writing to:

Master Builders Association of Queensland,

417 Wickham Terrace, Brisbane Queensland 4000.

Privacy policy

The privacy and confi dentiality of the personal

information of our members, stakeholders and other

parties is of the highest importance.

Master Builders is committed to protecting privacy

through responsible collection, use, storage and

disclosure of personal and sensitive information. We seek

to eff ectively comply at all times with the provisions of

the Privacy Act 1988.

Master Builders has adopted the National Privacy

Principles published by the Privacy Commissioner and

operates in accordance with those principles. A copy

of Master Builders privacy policy can be found on our

website at www.masterbuilders.asn.au.

Code of conduct

As an industry leader, Master Builders encourages

members to abide by high ethical standards. Members

are responsible for conducting their business in a

professional, fair and honest manner, and abide by the

Master Builders Code of Conduct.

Master Builders and its members commit to:

1. Apply fair treatment, courtesy, reasonable and honest

conduct in the effi cient operation of our business

2. Service and promote the interests of the building and

construction industry

3. Support research designed to advance the

professional image of the industry through

innovation, the application of new techniques,

methods and products

4. Participate in the furthering of favourable relations

with all public authorities concerned with the

administration of building and construction

5. Build strong relationships with manufacturers and

suppliers of goods and services and related industry

associations

6. Support training and development initiatives that

strive to maintain a high standard of workmanship

7. Encourage professional development for all stakeholders

that constantly seeks to lift the standards and improve

practical and administrative skills in the industry

8. Participate in a meeting with the Disciplinary

Committee appointed by the Executive and accept

the outcomes and be bound by any resolution

determined by the Disciplinary Committee

9. Encourage the friendly exchange of technical

information and practical knowledge between

members

10. Conduct all business activities in a professional and

ethical manner.

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Executive Director: G. Galvin (as at 1 July 2013013))

COUNCILLORS

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Far a North Queensland: R. Harder

Institute of Building Consultants:

M. Decman

DIVISIONAL CHAIRMEN

Gold Coast: W.J. Williams

Downs & Western: P. SchrS iek

Sunshine Coast: M. CM. rockrockerer

Burnett WideWide BayBay:: P.P. BaldBaBaldBaldwinwwin

CentCentralral QueeQueeensnslanslansland: nd: nd: WWW.W. Foster

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Innisfail: J. Hickerton

Tablelands: A. FlorlorFlo eaeancigig

DIVISIONNNNSSS

Instnstnsts ituiitute ofof BuiBuiBuiuillding Consunsultantnts:s::

M. DM. DDecmececman (Chairman)man), H., H. ArmArmArmrmstrostrostrong, ng, ngg, g, g,

RRR. HR all, P. Haskard,rd, M. M PortPorteer, er W. MW. Moultlttonononono

Convenorenoronor:: K.K. KK. K HawoHaw rth

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J. BBedsosor SSr, S CC. CoC le, e, , E. EE. EE. Edwarddwa ds, D. GGGrehareharehrehaehan, , nnn,

S HS. Hawkikikins, nsnsns, NNN. HN Herron, CCCC. Ma. Ma. Matthetthet ws, w

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P. Wardardrdrd

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HousHousHousHHHH ing:iing: R. DR. DR. Duttouttoutton (Cn (C(Chairhhairmaman))), ,,,

M CM. CM. CM. M. atchatchatchatchatchatchpolepoleppp , S., S. CedCedergrergrgr en, en, en P. CChuchhuchhuchuchuc erkoerkerkoerkerkorko, , , ,

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P. Simono ds, S. SStokekeeeess, , Ms, MM. TuTTuTuTullylly yy

Convonvenoreenorenor::: MMMM. M BBelfiBeB fifieldldlle dldld

Cononontto rararacts: N. Herron (Chairrman)man ,

P. Bododdioddidid ngtongton n, R. Faardoud lys, R.R. HallHall, ,

N. Harrirrir s, R, R, R. Ho. Hortonrton, S., S. KeuKeune, ne, M. RM. Roszkoszka, a

A. Sneddnedddon,o ,o J. TJ. TJ ayloaylor, Cr, C. Wo. Woolnoolnoughugh

ConvonvC enorenor:: J. P. PPJ oultoultneyney

HealHeala th th &&&& SafSSaffety:eety: A. Campbell (Chairman),

T. DDartrt, G.G. DavDDavies, B.B. Lewis, T. Lloyd,

J. McPhePhersosonnnrs , M, M. Pala mmer, W. Pitt, D. Sharry,y,

R. Thiehiess, B, B. TThhhT omomasoo , R. WilW lsono

Convnvenore :: S. GGGGayaylaaylaa rdd

EnviEnvironmronmoonnno entnt: E. CCE. ao (ao (a ChaihaiaihaiCh rmanrmanrmannrmanan),), ),))

P.P. AP. Andndderersosoon,on,, A. A. CampmppC bellllb , T., T. LLLloLloLloLloyd, yd, yd, yd, d,

H. MMapappsoopppp n,n, Mn, MMMn, MM, M. StSteeleeele, G, GGG. RobRobbbinnninsonsoinin n, n,

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MM. CM. Catchatchhpoleleeepoleeep , S., CCCCeCedCC ergerggrgren,en,en,en,n,en, MMM.M. DM oré,

A. FA. FA. Fung,ungung A.A GolGollGooGoG éé

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ProfProfessionalnaalalal DevDevDevDevDevvelopelope mentmentmentmentttt:: : J GJ. G. GJJ askkskiaskskiask nn nn

(Cha(ChCh irman), A. WWWWaldralalldldd on, G. BG. B. Boooddioddioddoddoo ngtngtngtog nn,nnn

G. Rashleigh

Actictiting Cng Cng Conveonvon nor:nor:or: J.JJJ Crittalllllllallallala

FounFounFoundatidatitida on: D. Pingeegegegel (Cl ll l hairiirhairi man)manman)manman), ,

P BP BP. Breeze, N. Herron, MMM.M McKMMcMcMcMMc ay, y, y, yy, F. Ashmoooshmooooorrrerere

Convenoro : F. Ashmororeoreore

Committees as at 30 June 2013


Financial statements

STATEMENT OF COMPREHENSIVE INCOME Year ended 30 June 2013

Notes 2013

$

2012

$

Revenue from continuing operations 2(i) 15,462,426 16,230,567

Other income 2(ii) 704,959 1,079,496

Employee expenses (10,372,057) (9,598,658)

Depreciation and amortisation expense (528,315) (628,977)

Printing stationery and postage expenses (436,812) (468,793)

Occupancy expenses (495,531) (488,067)

Other expenses 3(i) (4,836,872) (4,847,201)

Surplus/(loss) before income tax expense (502,202) 1,278,367

Income tax expense – –

Surplus/(loss) for the year (502,202) 1,278,367

Other comprehensive income

Items that will not be reclassifi ed to profi t or loss:

Net gain/(loss) on revaluation of land and buildings – (3,355,563)

Items that will be reclassifi ed subsequently to profi t or loss

when specifi c conditions are met:

Net gain/(loss) on revaluation of investment portfolio 319,588 (439,758)

Total other comprehensive income (loss) for the year 319,588 (3,795,321)

Total comprehensive income/(loss) for the year (182,614) (2,516,954)

The accompanying notes form an integral part of these fi nancial statements.


STATEMENT OF FINANCIAL POSITION As at 30 June 2013

Notes 2013

$

2012

$

Current Assets

Cash and cash equivalents 4 7,196,126 10,077,836

Inventories 146,113 164,521

Trade and other receivables 5 1,254,107 1,296,279

Other current assets 6 120,207 138,673

8,716,553 11,677,309

Non-Current Assets

Investment portfolio (Available-for-sale fi nancial assets) 6,137,379 5,552,459

Property, plant and equipment 7 19,724,260 20,014,663

25,861,639 25,567,122

Total Assets 34,578,192 37,244,431

Current Liabilities

Trade and other payables 8 7,249,679 9,351,022

Short-term provisions 9 (i) 31,077 38,182

7,280,756 9,389,204

Non-Current Liabilities

Long-term provisions 9 (ii) 270,810 645,987

270,810 645,987

Total Liabilities 7,551,566 10,035,191

Net Assets 27,026,626 27,209,240

Equity

Reserves 6,875,165 6,555,577

Retained profi ts 20,151,461 20,653,663

Total Equity 27,026,626 27,209,240



STATEMENT OF CHANGES IN EQUITY Year ended 30 June 2013

RETAINED

PROFITS

$

ASSET

REVALUATIONLand and buildings

$

ASSET

REVALUATIONInvestments

$

TOTAL

$

Balance at 1 July 2011 19,375,296 10,102,716 248,181 29,726,193

Net surplus for the year 1,278,367 – – 1,278,367

Other comprehensive income – (3,355,563) (439,757) (3,795,320)

Balance at 30 June 2012 20,653,663 6,747,153 (191,576) 27,209,240

Net loss for the year (502,202) – – (502,202)

Other comprehensive income – – 319,588 319,588

Balance at 30 June 2013 20,151,461 6,747,153 128,012 27,026,626


STATEMENT OF CASH FLOWS Year ended 30 June 2013

Notes 2013

$

2012

$

Cash fl ows from operating activities inclusive of GST

User charges 17,843,760 16,554,093

Interest and dividends received 570,780 817,891

Payments to suppliers and employees (20,708,009) (12,258,681)

Net cash infl ow/(outfl ow) from operating activities 15 (2,293,469) 5,113,303

Cash fl ows from investing activities

Proceeds from disposal of assets 56,819 450,400

Proceeds from sale of listed investments – 3,436,641

Payments for property, plant and equipment (379,728) (708,781)

Payments for purchase of listed investments (265,332) (5,564,874)

Net cash infl ow/(outfl ow) from investing activities (588,241) (2,386,614)

Net increase/(decrease) in cash held (2,881,710) 2,726,689

Cash and deposits at beginning of fi nancial period 10,077,836 7,351,147

Cash and deposits at end of fi nancial period 4 7,196,126 10,077,836


Financial statements


Note 1: Summary of Signifi cant

Accounting Policies

The fi nancial report is a special purpose

fi nancial statement that has been

prepared for distribution to the Members

to fulfi l the Executive Committee’s

fi nancial reporting requirement under

the Association’s constitution.

The report has been prepared in

accordance with the requirements of

the Industrial Relations Act 1999 (Qld)

and the recognition and measurement

requirements of the Australian

Equivalents to the International Financial

Reporting Standards (AIFRS), and the

disclosure requirements of the following

Australian Accounting Standards:

• AASB 101 Presentation of Financial

Statements

• AASB 107 Cash Flow Statements

• AASB 108 Accounting Policies,

Changes in Accounting Estimates

and Errors

• AASB 110 Events after the Balance

Sheet Date

• AASB 1031 Materiality

• AASB 1048 Interpretation of Standards

• AASB 1054 Australian Additional

Disclosures.

No other Accounting Standards,

Accounting Interpretations or other

authoritative pronouncements of the

Australian Accounting Standards Board

(AASB) have been applied. The fi nancial

report covers QUEENSLAND MASTER

BUILDERS ASSOCIATION INDUSTRIAL

ORGANISATION OF EMPLOYERS as an

individual entity. QUEENSLAND MASTER


ORGANISATION OF EMPLOYERS is an

association incorporated in Queensland

under the Industrial Relations Act.

The fi nancial statements have been

prepared on an accruals basis and are

based on historical costs modifi ed, where

applicable, by the revaluation of selected

non-current assets and fi nancial assets for

which the fair value basis of accounting

has been applied. The fi nancial

statements are presented in Australian

dollars, which is QUEENSLAND MASTER


ORGANISATION OF EMPLOYERS functional

and presentation currency.

The following is a summary of the

material accounting policies adopted

in the preparation of the fi nancial

statement. The accounting policies

have been consistently applied, unless

otherwise stated.

Income Tax

The activities of the Association are exempt

from income tax pursuant to Section 50.15

of the Income Tax Assessment Act 1997.

Inventories

Inventories are measured at the lower of

cost and net realisable value. Costs are

assigned on a fi rst-in fi rst-out basis.

Revenue

Revenue of the Association includes

membership subscriptions, commissions

from insurance premiums and third party

telecommunications services, course fees

for the provision of training courses and

proceeds from the sale of documents,

signs and advertising.

Subscription revenue is recognised

progressively over the subscription

period. Course revenue is recognised

at the time of raising the invoice,

which is within 30 days of course

commencement. Other income is

recognised when the service is provided.

Available-for-Sale Financial

Assets

Available-for-sale fi nancial assets

comprising managed funds operated by

professional fund managers are classifi ed

as non-derivatives that are not classifi ed

in any of the other investment categories.

Purchases and sales of available-for-sale

fi nancial assets are recognised on trade-

date – the date on which the Association

commits to purchase or sell the asset.

The asset is initially recognised at cost

and subsequently carried at fair value.

Unrealised gains and losses arising from

changes in the fair value are recognised

in equity in the asset revaluation reserve.

When securities are sold or impaired,

the accumulated fair value adjustments

are included in the statement of

comprehensive income as realised gains

and losses.

Fair Value Estimation

The fair values of available-for-sale

fi nancial assets are based on unit prices

at the time of valuation provided by the

professional fund managers.

Impairment

At the end of each reporting period,

the Association assesses whether there

is objective evidence that a fi nancial

instrument has been impaired. In the

case of available-for-sale fi nancial

instruments, a prolonged decline in the

value of the instrument is considered to

determine whether an impairment has

arisen. Impairment losses are recognised

in the statement of comprehensive

income.

Held-to-Maturity

Held-to-maturity investments are non-

derivative fi nancial assets that have fi xed

maturities and fi xed or determinable

payments, and it is the entity’s intention

to hold these investments to maturity.

They are subsequently measured at

amortised cost.

Held-to-maturity investments are

included in non-current assets, except

for those which are expected to mature

within 12 months after the end of the

reporting period.

Property, Plant and Equipment

Each class of property, plant and

equipment is carried at cost or fair value

as indicated, less, where applicable,

any accumulated depreciation and

impairment of losses.

Freehold land and buildings are shown

at fair value based on periodic, but at

least four-yearly, valuations by external

independent valuers, less subsequent

depreciation for buildings. Increases

in the carrying amounts arising on

revaluation of land and buildings are

credited to the asset revaluation reserve

in equity. Decreases that off set previous

increases of the same asset are charged

against reserves directly in equity; all

other decreases are charged to the

statement of comprehensive income.

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

re-valued amount of the asset.

All other property, plant and equipment

are measured on cost basis.

Property, plant and equipment, other

than freehold land, are depreciated over

their expected useful lives. Acquisitions

prior to 1 July 2007 were depreciated

NOTES TO THE FINANCIAL STATEMENTS Year ended 30 June 2013


using the diminishing value method.

Assets purchased post 1 July 2007 are

depreciated using the straight line

method. Where an asset’s life is not

expected to greatly exceed 12 months, or

expenditure is of a minor capital nature

(less than $1,000), it is written off and not

capitalised. Gains and losses on disposals

are determined by comparing proceeds

with the carrying amount. These gains or

losses are included in the statement of

comprehensive income. When revalued

assets are sold, amounts included in the

revaluation reserve relating to that asset

are transferred to retained earnings.

Other Operations

The Association administers the

following bank accounts not included in

the fi nancial reports for the year:

a) QMBA Insurance Agency. The

account was established to hold

insurance premiums received,

pending disbursement to insurers in

accordance with agreements with

insurers. The balance at 30 June 2013

was $520,353 (2012: $807,152).

b) Master Builders Foundation. The

account holds, separately to Master

Builders operations, voluntary

contributions made by members,

which are used to provide support

to Queensland based community

projects and programs, particularly

programs and projects that align

with the building and construction

industry. Voluntary contributions

of $227,871 (2012: $249,294) were

collected from members. Grants of

$15,000 (2012: nil) were made to

approved Queensland causes. The

balance of the account at 30 June

2013 was $481,141 (2012: $244,967).

The Association administers various

building display villages. As at 30 June

2013, net funds of $339,997 (2012:

$409,260) were held on behalf of display

village builders, pending expenditure on

promotion and administration costs. This

is recognised as a current liability.

There are two items on the Statement

of Financial Position that are included in

both ‘Cash at Bank – Restricted’ and ‘Other

Payables and Accruals”’ These items are:

a) An amount of $1,806,197 (2012:

$4,367,303) representing funds

administered by the Association on

behalf of parties involved in arbitration

b) An amount of $25,000 (2012: $30,000)

representing holding deposits made

by display village builders against

failures to complete contracts.

Employee Benefi ts

Provision is made for the Association’s

liability for employee benefi ts arising

from services rendered by employees to

balance date. Employee benefi ts that are

expected to be settled within one year

have been measured at the amounts

expected to be paid when the liability is

settled, plus related on-costs. Employee

benefi ts payable later than one year have

been measured at the present value of

the estimated future cash outfl ows to be

made for those benefi ts.

Long service leave is accrued in respect

of all employees with more than six years’

service.

Provisions

Provisions are recognised when the

Association has a legal or constructive

obligation, as a result of past events, for

which it is probable that an outfl ow

of economic benefi ts will result and

that outfl ow can be reliably measured.

Provisions recognised represent the

best estimate of the amounts required

to settle the obligation at the end of the

reporting period.

Cash and Cash Equivalents

Cash and cash equivalents include

cash on hand, deposits held at call with

banks, other short-term highly liquid

investments with original maturities of

three months or less. The Association

does not have a bank overdraft.

Accounts Receivable and Other

Debtors

Receivables expected to be collected

within 12 months of the end of the

reporting period are classifi ed as current

assets. All other receivables are classifi ed

as non-current assets.

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 Offi ce (ATO).

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

ATO is included with other receivables

or other payables in the Statement

of Financial Position. Cash fl ows are

presented on a gross basis. The GST

components of cash fl ows arising from

investing or fi nancing activities which are

recoverable from, or payable to, the ATO

are presented as operating cash fl ows

included in user charges or payments to

suppliers and employees.

Accounts Payable and Other

Payables

Trade payables represent the liability

outstanding at the end of the reporting

period for goods and services received

by the Association during the reporting

period which remain unpaid. The balance

recognised as a current liability with the

amount normally paid within 30 days or

recognition of the liability.

Critical Accounting Estimates and

Judgements

Other than accruals and provisions there

are no critical accounting estimates used

by management.

Adoption of New and Revised

Accounting Standards

During the current year the Association

has not needed to adopt any new or

revised Australian Accounting Standards

and Interpretations applicable to its

operations which became mandatory.

New Accounting Standards for

Application in Future Periods

The AASB has issued new and

amended Accounting Standards and

Interpretations that have mandatory

application dates for future reporting

periods. The Association has decided

against early adoption of these standards.

These amendments are not expected to

signifi cantly impact on the Association.

Reserves

The asset revaluation reserve records

revaluations of land and buildings and

unrealised gains and losses on available-

for-sale investments.

Capital Management

Management controls the capital of the

company in order to maintain a good

debt to equity ratio and to ensure that

the organisation can fund its operations

and continue as a going concern. There

are no externally imposed capital

requirements.

Comparative Figures

Where necessary, comparative fi gures

have been adjusted to conform to

changes in presentation in the current

year.


2013

$

2012

$

2. REVENUE

i) Revenue from continuing operations

Membership subscriptions 5,557,684 5,592,937

Course and training income 1,635,263 2,205,072

Commissions income 5,519,555 5,733,874

Awards night income 652,271 671,029

Publications income 198,955 275,012

Display village income 40,893 67,758

Document sales income 665,947 663,760

Other income 1,191,858 1,021,125

15,462,426 16,230,567

ii) Other income

Interest and dividends received 562,365 805,560

Gain/(loss) on disposal of plant and equipment (84,999) (10,452)

Gain/(loss) on disposal of available for sale fi nancial assets – 61,343

Rent received 227,593 223,045

704,959 1,079,496

3. OTHER EXPENSES

National levy and affi liation costs 503,008 450,968

Consultancy costs 691,457 531,849

Travel and accommodation 290,740 307,406

Telecommunications 415,504 455,781

Other expenses of operating activities 963,385 970,710

Training assessment expenses 678,611 838,098

Sponsorship and events expenses 1,147,644 1,113,969

Documents costs 146,523 178,420

4,836,872 4,847,201

NOTES TO THE FINANCIAL STATEMENTS Year ended 30 June 2013


2013

$

2012

$

4. CASH AND CASH EQUIVALENTS

Cash on hand 6,170 6,190

Cash at bank 1,352,591 1,777,071

Cash at bank – call deposit – 2,358

Cash at bank – term deposits 4,006,167 3,894,914

5,364,928 5,680,533

Cash at bank – restricted 1,831,198 4,397,303

Total cash and cash equivalents 7,196,126 10,077,836

5. TRADE AND OTHER RECEIVABLES

Trade debtors 1,328,208 1,346,749

Less provision for doubtful debts (193,147) (124,413)

Other debtors 119,046 73,943

1,254,107 1,296,279

6. OTHER CURRENT ASSETS

Tenancy security deposits 5,738 5,738

Prepayments 114,469 132,935

120,207 138,673

7. PROPERTY, PLANT AND EQUIPMENT

Land – at valuation

Freehold land at independent 2012 valuation 11,595,000 11,595,000

Buildings – at valuation

Buildings at independent 2012 valuation 6,980,000 6,980,000

Provision for depreciation (99,488) –

6,880,512 6,980,000

Building improvements – at cost

Building improvements 123,878 21,320

Provision for depreciation (1,767) –

122,111 21,320

Total land and buildings 18,597,623 18,596,320

Plant and equipment at cost

Plant and equipment 3,158,582 3,824,754

Provision for depreciation (2,031,945) (2,406,411)

Total plant and equipment 1,126,637 1,418,343

Total written down value 19,724,260 20,014,663

The revaluation of all freehold land and buildings is on the assessment of the market value of freehold land and buildings

based on the independent revaluation in February and March 2012 by Herron Todd White.


7. PROPERTY, PLANT AND EQUIPMENT CONTINUED2013

$

2012

$

Land & buildings

at valuation

$

Land & buildings

at cost

$

Plant & equipment

at cost

$

Net book value as at 1 July 2011 18,683,514 3,753,781 1,313,980

Assets acquired during the year – 21,320 687,461

Assets disposed during the year – (365,000) (102,723)

Revaluations 3,648 (3,352,341) –

Amortisation/depreciation charged during

the year (112,162) (36,440) (480,375)

Net book value as at 30 June 2012 18,575,000 21,320 1,418,343

Net book value as at 1 July 2012 18,575,000 21,320 1,418,343

Assets acquired during the year – 102,558 277,170

Assets disposed during the year – – (141,816)

Amortisation/depreciation charged during

the year (99,488) (1,767) (427,060)

Net book value as at 30 June 2013 18,575,512 122,111 1,126,637

8. TRADE AND OTHER PAYABLES

Trade payables 454,671 662,383

GST payable 172,256 193,118

Advance billings 2,482,135 2,409,200

Other payables and accruals 2,796,801 4,820,717

Display Village creditors 339,997 409,260

Short-term employee benefi ts 798,165 643,093

Income in advance 205,654 213,251

7,249,679 9,351,022

Trade creditors are generally settled within 30 days. The Executive Committee members consider that the carrying

amounts of trade and other accounts payable approximate their net fair values.

9. PROVISIONS

i) Short-term provisions

Qld Construction Industry Forum 31,077 38,182

ii) Long-term provisions

Employee benefi ts and related on-costs liabilities 270,810 645,987

10. CONTINGENT LIABILITIES

There were no contingent liabilities at 30 June 2013 (2012: $658,000).


11. COMMITMENTS FOR EXPENDITURE2013

$

2012

$

i) Capital commitments

Not later than one year 106,834 106,791

ii) Operating leases

Commitments for minimum lease payments in relation to non-

cancellable operating leases are payable as follows:

Not later than one year 145,013 142,402

Later than one year but not later than fi ve years 74,581 121,223

219,594 263,625

12. EVENTS SUBSEQUENT TO THE END OF THE REPORTING PERIOD

The Financial Statements were authorised for issue as dated in the Statement by Executive Committee of

Management.

13. REMUNERATION AND RETIREMENT BENEFITS

Executive Committee member fees

Meeting fees totalling $48,466 (2012: Nil) were paid to Executive and Councillor members during the year.

The names of Councillors who have held offi ce during the fi nancial year:

D Pingel (President); R Burns (Vice President); M Brooke (Treasurer); R Dutton (Chairman Housing Sector Committee);

G Muir (Chairman Construction Sector Committee); J Gaskin; K Seaman; P Boddington; L Doré; E Edwards; T Brown;

L Saragossi; D Bowes; G Rossow; N Herron; S Summers; G Riches; J Kirkwood; D Close; T Nobbs; P Ward; B Louttit;

G Baguley; M Decman; P Schriek; D Werner; M Casablanca; R Harder.

14. REMUNERATION OF AUDITORS

During the year the following fees were paid or payable for services provided by the auditor

Audit and review of fi nancial reports – Bentleys 26,650 24,959

Audit and review of Financial Services Licence – Bentleys 3,200 3,100

29,850 28,059

15. RECONCILIATION OF SURPLUS TO NET CASH FLOW FROM OPERATING ACTIVITIES

Net surplus/(loss) for the year (502,202) 1,278,367

Depreciation and amortisation 528,315 628,977

(Gain)/loss on disposal of non-current assets 84,999 (50,891)

(Increase)/decrease in trade and other debtors 60,589 155,236

Increase/(decrease) in provisions (227,210) 127,321

(Increase)/decrease in inventories 18,409 10,704

Increase/(decrease) in trade and other creditors (2,256,368) 2,963,589

Net cash infl ows from operating activities (2,293,468) 5,113,303

16. ENTITY DETAILS

The registered offi ce of the Association is 417 Wickham Terrace, Brisbane Queensland 4000.

The principal place of business is 417 Wickham Terrace, Brisbane Queensland 4000.


Statement by Accounting Offi cer

In relation to the attached accounts of the Association, I hereby

certify that the Association had 7,172 (2012: 6,978) members

and 1,298 (2012: 1,422) registrants all of whom are fi nancial as at

30 June 2013 and that in my opinion:

1. The accounts prepared in accordance with Section 555 of the

Industrial Relations Act 1999 (Qld) show a true and fair view of 9

transactions for the fi nancial year and the fi nancial position of

the Association as at the end of the fi nancial year.

2. A record has been kept of all moneys paid by, or collected

from, members of the Association and all moneys so paid

or collected have been credited to the bank account or

accounts to which those moneys are to be credited, in

accordance with the rules of the Association.

3. 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.

4. No payment was made out of a fund referred to in Schedule

5 of the Industrial Relations Regulations (Section 45). No

such fund was operated.

5. No loans or other fi nancial benefi ts were granted to

employees or persons holding offi ce in the Association.

6. The register of members of the Association was maintained

in accordance with the Industrial Relations Act.

Fiona Ashmore, Director Corporate Services

10 September 2013

Certifi cate in Relation to Documents

I hereby certify that the foregoing documents, being accounts

and notes thereto, and statements and reports in relation to the

fi nancial year ended 30 June 2013, are copies of the documents

presented to the Annual General Meeting of the Association for

2013.

Derek Pingel, President

10 September 2013

Certifi cate in Relation to Documents

Attention of the members is drawn to the following provisions

of Part 12 Division 2 Section 556 of the Industrial Relations Act

in relation to ‘prescribed information’ – as listed in Division 2.

1. A member of an organisation may apply to the organisation

for information that it must, under a regulation, give its

members.

2. An application may be made by the Registrar for a member.

3. The organisation must give the member or, if the Registrar

applied for the member, the Registrar, the information

applied for in the way prescribed under a regulation.

4. If the information is given to the Registrar, the Registrar

must give the information to the member for whom the

Registrar made the application.

Statement by Executive Committee of Management

The Executive Committee of the QUEENSLAND MASTER

BUILDERS ASSOCIATION INDUSTRIAL ORGANISATION OF

EMPLOYERS has determined that the Association is not

a reporting entity and that this special purpose fi nancial

statement should be prepared in accordance with the

accounting policies described in Note 1 to the fi nancial

statements. They are also of the opinion that the fi nancial

statements:

1. Give a true and fair view of the fi nancial position of

QUEENSLAND MASTER BUILDERS ASSOCIATION INDUSTRIAL

ORGANISATION OF EMPLOYERS as at 30 June 2013 and of its

performance, as represented by the results of its operations

and its cash fl ows for the fi nancial year ended on that date.

2. At the date of this statement, there are reasonable grounds

to believe that the Association will be able to pay its debts

as and when they become due and payable.

3. The meetings of the Executive during the year were held in

accordance with the constitution of the Association.

4. During the fi nancial year, there have been no instances

where records of the Association or other documents,

or copies of records or documents, or copies of the

constitution of the Association, have not been furnished

or made available to members in accordance with

the Industrial Relations Act, or the constitution of the

Association.

5. The Association has complied with Section 566 of the

Industrial Relations Act in relation to the provision of copies

of the accounts and statements to members, and to the

presentation of the accounts and statements to a general

meeting of members as required by Section 565 of the Act.

6. The accounts and statements for the fi nancial year have

been prepared in accordance with Section 555 of the Act

and with applicable Australian Accounting Standards as

detailed in Note 1: Summary of Signifi cant Accounting

Policies.

This statement is made in accordance with a resolution of the

Executive Committee and is signed for and on behalf of

the Executive Committee by:

Derek Pingel, President

10 September 2013


We have audited the accompanying fi nancial report of

QUEENSLAND MASTER BUILDERS ASSOCIATION INDUSTRIAL

ORGANISATION OF EMPLOYERS, being a special purpose

fi nancial report, which comprises the statement of fi nancial

position as 30 June 2013, the statement of comprehensive

income, statement of changes in equity and statement of cash

fl ows for the year then ended, notes comprising a summary

of signifi cant accounting policies and other explanatory

information and the statement by the Executive Committee.

Executive Committees’ Responsibility for the

Financial Report

The Executive Committee are responsible for the preparation

of the fi nancial report that gives a true and fair view and have

determined that the basis of preparation described in Note 1

to the fi nancial report is appropriate to meet the requirements

of the Industrial Relations Act 1999 (Qld.) and is appropriate to

meet the needs of the members. The Executive Committee

are also responsible for such internal control as the Executive

Committee determines is necessary to enable the preparation

of the fi nancial report that is free from material misstatement,

whether due to fraud or error.

Auditor’s Responsibility

Our responsibility is to express an opinion on the fi nancial

report based on our audit. We conducted our audit in

accordance with Australian Auditing Standards. Those standards

require that we comply with relevant ethical requirements

relating to audit engagements and plan and perform the audit

to obtain reasonable assurance about whether the fi nancial

report is free from material misstatement.

An audit involves performing procedures to obtain audit

evidence about the amounts and disclosures in the fi nancial

report. The procedures selected depend on the auditor’s

judgement, including the assessment of the risks of material

misstatement of the fi nancial report, whether due to fraud or

error. In making those risk assessments, the auditor considers

internal control relevant to the entity’s preparation of the

fi nancial report that gives a true and fair view in order to design

audit procedures that are appropriate in the circumstances,

but not for the purpose of expressing an opinion on the

eff ectiveness of the entity’s internal control. An audit also

includes evaluating the appropriateness of accounting policies

used and the reasonableness of accounting estimates made

by the Executive Committee, as well as evaluating the overall

presentation of the fi nancial report.

We believe that the audit evidence we have obtained is

suffi cient and appropriate to provide a basis for our audit

opinion.

Independence

In conducting our audit, we have complied with the

independence requirements of the Australian professional

ethical pronouncements.

Opinion

ln our opinion:

(a) QUEENSLAND MASTER BUILDERS ASSOCIATION INDUSTRIAL

ORGANISATION OF EMPLOYERS has kept satisfactory

accounting records for the fi nancial year, including records of:

(i) The sources and nature of the organisation’s income,

including membership subscriptions and other income

from members; and

(ii) The nature of and reasons for the organisation’s

expenditure; and

(b) The fi nancial report of QUEENSLAND MASTER BUILDERS

ASSOCIATION INDUSTRIAL ORGANISATION OF EMPLOYERS is

in accordance with Industrial Relations Act, including:

(i) Giving a true and fair view of its fi nancial position as at

30 June 2013 and of its performance for the year ended

on that date; and

(ii) Complying with Australian Accounting Standards to the

extent described in Note 1; and

(c) No material defi ciencies, failure or shortcoming in respect

of the matters referred to in (a) and (b) above were noted

during our work; and

(d) We obtained all the information and explanations required

to conduct our audit from the organisation’s offi cers or

employees.

Basis of Accounting

Without modifying our opinion, we draw attention to Note 1 to

the fi nancial report, which describes the basis of accounting. The

fi nancial report has been prepared for the purpose of fulfi lling the

Executive Committee’s fi nancial reporting responsibilities under

the Industrial Relations Act. As a result, the fi nancial report may

not be suitable for another purpose.

Bentleys Brisbane (Audit) Pty Ltd

Chartered Accountants

P M Power

Director

Dated in Brisbane on this 10th day of September 2013

Independent Auditor’s Report to the Members

Financial statement

A member of Bentleys, an association of independent accounting fi rms in Australia.The member fi rms of the Bentleys association are affi liated only and not in partnership. Liability limited by a scheme approved under Professional Standards Legislation.

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www.masterbuilders.asn.au

1300 30 50 10

Mackay & Whitsunday

Suite 2, 40 Evans AvenuePO Box 3188North Mackay Queensland 4740

Brisbane (Registered Offi ce)

417 Wickham TerraceBrisbane Queensland 4000

Sunshine Coast

Level 1, 91 King StreetPO Box 1458Buderim Queensland 4556

Burnett Wide Bay

Unit 2, 162 Boat Harbour DrivePO Box 358Hervey Bay Queensland 4655

Gold Coast

18 Central Park AvenueAshmore Queensland 4214

North Queensland

Unit 1, 316 Sturt Street PO Box 5801Townsville Queensland 4810

Central Queensland

35 Derby StreetPO Box 631Rockhampton Queensland 4700

Downs & Western

166 Hume StreetToowoomba Queensland 4350

Far North Queensland

310–314 Gatton Street Manunda Queensland 4870PO Box 806, Earlville Queensland 4870

Master Builders offi ce locations

With nine offi ces throughout Queensland, Master Builders regional footprint is unmatched by any other industry organisation in Queensland.

annual report 2013

Documents

master buildersmaster

master builders membership

master builders foundation16

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interests of members

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