Federal Election Year in Australia | What's on the Government Relations agenda for Fitness Australia.

The Australian Federal Election date has now been announced (14 September 2013) and so, we are entering a marathon election campaign! Below are some of the government relations issues that Fitness Australia will continue to address to ensure that the health and fitness of Australia's citizens is considered by policy makers of all political persuasions throughout the year ahead.

Introduction

 

Over the past two years, Fitness Australia has raised its profile with government, stakeholders and the wider public through the media.

Fitness Australia has provided evidence that its membership has the scale, standards and programs necessary to help create a fitter and healthier Australia.

Fitness Australia has proven its value to the fitness industry by:

• Achieving a beneficial result for the industry in the protracted legal battle with regard to music copyright and the PPCA;
• Working on a national regulatory scheme & a single Industry Code of Practice;
• Lobbying for Fringe Benefits Tax (FBT) reform to encourage the Australian workforce to get active;
• Developing guidelines on Commercial Fitness Services in Public Areas;
• Developing an Adult Pre-Exercise Screening Guide and a range of other industry guidelines; and
• Building partnerships with Governments, health peak bodies, NGO’s and health services.

Key Objectives of Government Relations Strategy
 

1.   Position Fitness Australia as the authoritative voice on government and regulatory issues within the fitness industry.

2.   Position Fitness Australia to be seen as a leader and partner in the government’s preventive health agenda.

Fitness Australia’s priorities for 2012-13:

• create a regulatory/legislative framework that assists Fitness Australia’s drive to improve standards in the industry;
• expand the FBT exemption to include fitness services that are not located “on a company’s business premises”;
• work with Local Government Associations to reduce red tape and the cost for fitness instructors using public areas; and
• continue to build partnerships in preventive health and primary health care.

Third Party Endorsement

It is important that Fitness Australia is viewed as a partner in addressing preventive health costs. It has a number of well-established relationships, such as Baker IDI (Diabetes Research), and we need to secure their support for our Government Relations initiatives.

 

We are also establishing relationships and building support from the following groups:

• Black Dog Institute & Headspace (mental health)
• The Australian Lung Foundation
• The National Heart Foundation
• Cancer Council (Australia)
• The National Stroke Foundation
• Diabetes Australia
• Arthritis Australia
• Alzheimers Australia
• Indigenous Australian groups

Opposition Engagement

We’re also stepping up our engagement with the Opposition over the next 12 months.

The intention is that we minimise the risk of going back to ‘square one’ if a change of government occurs at the federal level in 2013.

Building Partnerships in Preventive Health and Primary Care

Fitness Australia is to be seen as part of the solution to achieving a fitter and healthier Australia.

Fitness Australia has an existing partnership with Baker IDI Heart & Diabetes Institute through the delivery of the Lift for Life program (an evidence based strength and resistance training program, developed to treat and prevent Type II diabetes and other chronic health conditions).

Fitness Australia is looking to harness partnerships with other key preventive health groups, such as the Australian Lung Foundation, as well as key primary health care stakeholders such as the Medicare Local Alliance.

Fitness Australia will need to build partnerships and form collaborations with Medicare Locals, who will be in charge of the delivery of primary health. 

Meetings will continue to be organised for Fitness Australia to meet with key preventive health and primary health care stakeholders to discuss the benefits of the fitness industry and its role in effective delivery of programs that help reduce the risk of chronic diseases.

Key Target Audiences

The following Government Ministers and their key advisors:

• Minister for Health
• Minister for Small Business
• Assistant Treasurer and Minister Assisting in Deregulation
• Minister for Mental Health and Ageing
• Treasurer
• Minister for Sport
• Finance Minister
• Minister for Indigenous Health
• Opposition counterparts to the above Ministers
• Minor Parties and Independents

The Australian National Preventive Health Agency and health promotion agencies in State jurisdictions.

Private Health Funds.

News and business media generally, and health, small business and political reporters.

National Registration

Fitness Australia has prepared a submission to the Council of Australian Governments (COAG) Business Regulation and Competition Working Group on the future COAG regulatory reform agenda, which proposed:

• a national regulatory regime for exercise professionals based on a registration system that identifies competent fitness & exercise practitioners; 
• a nationally regulatory regime for fitness industry businesses that are delivering fitness & exercise services to the public; and
• a single national Code of Practice for exercise professionals and fitness industry businesses.

We need to build support for the reforms at the jurisdictional level.
 

FBT Reform – A Strategic Approach

Fitness Australia has commissioned Deloitte to develop a detailed submission to make a case for reform of the current Fringe Benefits Tax (FBT) legislation in Australia. This submission has been made to the Federal Treasurer and other key Government Ministers ahead of annual budget deliberations.

Issue:

Fringe Benefits Tax exemption applies to facilities located on “business premises”. This favours large employers over small to medium businesses, as they can afford to have facilities on their premises.

Fitness Australia is of the view that all fitness benefits provided to employees should be free from Fringe Benefits Tax (FBT), whether or not they happen to be located on the company’s business premises.

The present FBT exemption is extremely restrictive, it exempts use of a recreational facility only if the facilities are located on “business premises”.

The expansion of the FBT exemption will allow all businesses to encourage their employees to be more physically active and would be a minimal loss of FBT revenue to Government. Fitness Australia estimates that the cost of the expansion of the FBT is at least $72 million, but is of the view that the costs could easily be recouped by the flow on benefits in reduced health care costs, increased workplace productivity and growth in the fitness industry (which leads to greater personal income tax revenue). In addition, Fitness Australia’s current registration scheme could be used by the ATO in order to ensure that fitness benefits are being claimed for items that meet high standards.

Outcomes:

It is estimated the fitness industry reduces avoidable health costs by $77 million a year. In a report commissioned by Medibank Ltd in 2007, it was revealed that the healthcare system could save $1.5 billion a year if more people were physically active. Fitness Australia is committed to a fitter and healthier Australian population. The main outcome achieved from the implementation of a proposed FBT exemption on fitness benefits is the overall improvement of health, a decrease in the prevalence of chronic conditions, decrease the demand on our health system, and reduce cost of lost productivity.

The Commercial Use of Public Areas

Fitness Australia wishes to establish a uniform approach to use of public land for the delivery of fitness services by personal and group training businesses.

Recently, a number of local governments and statutory authorities have considered implementing policy for the use of public areas. To assist in the development of appropriate policy and regulation, Fitness Australia has updated its position statement. The position statement assists policy makers to better understand how personal trainers go about their business and highlights key concerns.

A template for members has also been developed to guide engagement with local authorities when policy is being considered. The guide will assist members to navigate the process and have their voice heard and considered at a local policy level.

Population health & chronic disease prevention programs 

Fitness Australia in partnership with Baker IDI Heart & Diabetes Institute is delivering the Lift for Life program across Australia. The program is part of the Australian Government’s Healthy Communities Initiative.

Government funding has allowed Fitness Australia to provide subsidised services to those in the community who are most in need, however funding ends after 30 June 2013.

Outcomes:

To date, the Lift for Life® program has more than 744 participants, trained 264 accredited exercise professionals, 89 providers and 31 active local government areas participating – with more local government areas taking up the program.

Of the participants, 373 are not in the paid workforce and 632 are people at risk of chronic disease.

Early figures indicate that average initial BMI has dropped for all participants, there has been an average improvement with upper and lower body strength of more than 30%, agility has improved on average to nearly 50% and average aerobic capacity has improved by more than 50%.

Concerns:

Funding for programs under the Healthy Communities Initiatives ends after 30 June 2013.

Current figures suggest over $130 billion was spent on health in 2010–11, and this is only going to rise given the ageing population and the rise in chronic disease and conditions.

Funding for preventive health should be prioritised to programs with measureable health outcomes. For example, Government committed $60 million to extend the Measure Up campaign through advertising and promotion, the impact of which is questionable. In comparison, funding for the Healthy Communities Initiative which can clearly demonstrate measureable and significant health outcomes has no future funding allocated.

Fitness Australia data shows that approximately 8% of fitness businesses are referring clients to medical or health services and slightly more (11%) are referrals from such services to fitness businesses. This indicates that there is potential to improve collaboration between primary health care and the fitness industry.

Solution:

It is estimated the fitness industry reduces avoidable health costs by $77 million a year.

Fitness Australia requests that the Government consider carefully whether spending priorities should be reordered with more funds allocated to the expansion of accessible, evidence-based programs that facilitate more people undertaking exercise. This should include people who have received primary health care and/or have received transition care/rehabilitation services. Physical activity can help many people recover and stay out of hospital for longer.

Fitness Australia also requests Government to also consider the provision of exercise programs for people recovering from diseases such as cancer and as part of potential intervention programs, like integration of physical activity programs into mental health services such as Headspace.

Professional Registration Matters

At Fitness Australia, we encourage people that interact with us to provide us with comments and feedback because it helps us to learn more about the industry and improve our service. Over the last 6 months, we have been conducting regular 'Net Promoter Score' (NPS) surveys of our customers, mostly fitness professionals, and asking for comments. Just last month we received some constructive comments (both positive and negative) about professional registration. So this has prompted me to write this article, include some survey comments and to provide responses.

1.    Does Professional Registration Matter?

Below are four different comments about registration. Two people believe that it represents professional standing. Two others question its existence or relevance.
[All survey comments are in italics and blue font.]

"Trainers should already be registered with Fitness Australia, and if they are working without being registered I don't believe they should be encouraged to continue in the industry as they are not being professional."

"I believe a national regulating body such as Fitness Australia plays an essential role in ensuring that the standard of fitness professionals remains high. I appreciate being able to access ongoing support as I continue to study & learn as much as possible."

“Instructors also questioning why we insist on their being Fitness Australia accredited.”

 “The only reason I have it is because employers want you to have it."

My response:

Professional registration does matter because it represents an industry standard that is recognised both nationally and internationally. It is public recognition of each individual practising professional’s credentials and currency of skill, knowledge and competence. Information about registered exercise professionals is available to the general public via the website www.startexercising.com.au.

If you have acquired the minimum national standard qualification in fitness [or above] and have completed First Aid and CPR certifications, you are eligible to register as an exercise professional. To maintain registration, you need to complete a specified level of continuing education over the two year registration period and maintain current First Aid and CPR certifications.

Most health professionals are required to maintain professional registration. Can you imagine a nurse or a physiotherapist who did not wish to demonstrate to their patients that they have the appropriate credentials to practise? Why should an exercise professional be any different?

Anyone who has gone to the trouble of gaining an education and taking up a role in the fitness industry should be proud of their achievement and should be pleased to publicly display their registration status to their clients. Why wouldn’t you?

In the absence of government regulations that compel industry professionals to register, Fitness Australia is the recognised authority. Does the fitness industry really want to be populated by unregistered people? What message would that send to government, health professionals and consumers about the fitness industry?

2.    Why do quality employers insist on engaging registered professionals?

Quality fitness businesses are committed to industry standards and providing high quality service to clients and members. This includes standards of professionalism and safety. Imagine if an employer hired a person who was unqualified or someone who had the basic qualifications but had not maintained their knowledge and skill over time? In this scenario, the risk of providing a poor and unsafe service to clients increases. Professional registration immediately provides the employer with confidence in the employee’s credentials to practise and this can be independently verified by the employer.

3.    What is the value of professional registration?

“Being associated with an Industry Body is perceived by customers as an industry endorsement and a relation to quality so therefore our Fitness Australia fees are justified.”

"We pay a lot for registration with Fitness Australia and get very little in return.”

My response:

Fitness Australia administers the National Register of Exercise Professionals. Over a two year registration period, the fee is $220 (including GST). That’s $110 per annum, or $2.12 per week. As part of our commitment to supporting exercise professionals we also provide services that are akin to a membership of a professional body at no extra cost.

Compare this with a registered physiotherapist. Registration with the Australian Health Practitioners Regulation Agency (AHPRA) costs $199 per annum. If the physiotherapist also joins their professional association, the Australian Physiotherapy Association (APA), the fee is $744 per annum. That’s a total of $943 per annum to maintain registration and professional membership as a practising physiotherapist. Over a two year period, to compare directly with Fitness Australia, the equivalent cost is $1,886.

Fitness Australia endeavours to ensure that the registration fees remain at a low level so that registration is affordable for all fitness professionals and so that we can maximise engagement with the fitness industry. This, in turn, provides assurance to government and consumers that the majority of practising professionals in Australia are registered and therefore, that standards of professionalism and client care exist.

4.    What about the general public?

I would like to hit both ends of the scale above: people run business without it. I have never got a client for having the Fitness Australia membership. The general public don't know who they are or what they do. I have never even been asked what my qualifications are. There is a gym in my home town its huge and only one trainer there is actually qualified. I want to support my industry but it’s hard sometimes when I have different points of view! Thanks for asking :)"

My response:

In my experience, the general public will ASSUME that professional standards exist within the fitness industry and that a professional who is delivering services to them is appropriately qualified, skilled and competent. In other words, the majority won’t ask about this because they will assume that a standard exists. In addition, consumers are generally familiar with the concept of registration for a range of trades and professions and would generally assume that an exercise professional also holds some form of official registration.

Whilst the consumer may assume that professional registration exists, it is unlikely that they will be aware of the details of the actual registration body. Going back to the physiotherapist example, most consumers would assume that the physiotherapist is registered and therefore, has the requisite credentials to practise. However, the average consumer is unlikely to be aware of or know very much about the Australian Health Practitioners Regulation Agency. Consumers generally become more aware of registration and regulatory agencies when they need to file a complaint.

I agree that ‘accreditation’ systems should be as visible as possible to maximise their effectiveness. The best and most cost effective form of promotion is client awareness and this is most readily be influenced by the people that hold the registration.

If every one of the 26,000 registered exercise professionals displayed their registration credentials to their clients in some way, the level of public awareness about registration would increase dramatically.

At the same time, Fitness Australia is constantly profiling and promoting registered exercise professionals in the media and within our advocacy initiatives and programs.

From a personal perspective, I cannot see a down-side to professional registration. It provides recognition, credibility, learning opportunities, community and portability at a very affordable rate. I’m a registered exercise professional and proud of it.

What's happening in 2013

Happy New Year to everyone. It's great to be back on deck after a short break and I am looking forward to the year ahead. We have lots of great things planned at Fitness Australia in 2013, all designed to support the fitness industry to continue to grow and prosper. Here are some examples:

1. Priority strategic initiatives

• This year we are undertaking a world's first major research project into risk management and regulation in the fitness industry in collaboration with Bond and Monash Universities and Sports Medicine Australia. This research will assist us to thoroughly understand the regulatory environment that influences the fitness industry and to develop recommendations to improve and strengthen it. In addition, the research will provide us with an industry-wide overview of risk issues and risk management practices and help us to develop tools and systems that improve risk management and minimise client injury. An industry with effective regulatory systems and risk management will have a good reputation, so this will be a very positive and constructive project.
• We will continue to move ahead with our work in relation to enhancement of the professional registration and continuing education systems. This work has several aims, including; (i) to create and promote improved career pathways and opportunities for those fitness professionals who are interested in pursuing a longer-term career in the fitness industry and, in particular, those that wish to work collaboratively with others in the health care sector to improve population health; (ii) to improve professional standards and the quality of service delivery particularly in relation to new entrants to the profession; (iii) improving the recognition of more experienced exercise professionals and those that have undertaken higher learning and/or specialisations (iv) improving access to high quality continuing education opportunities for all registered professionals.
• Developing policies, tools, systems and protocols to generate more health-related referrals into exercise programs and working collaboratively with health and medical service providers and peak bodies to facilitate this.
• Continue to build relationships with health funders and profile the fitness industry as an important service provider in preventive health.
• Continue to lobby government at all levels on issues that are important to the fitness industry.
• Continue the development of the industry quality framework and associated systems and protocols that will set national and contemporary standards for professionalism, safety, customer care and business practice.

2. Industry engagement

Supporting and assisting registered businesses and professionals will continue to be a key priority for Fitness Australia and we will continue to offer this support through a range of channels, including face-to-face, online and over the telephone. We will continue to pursue innovation in the area of communications so that we can maximise engagement with the industry. We believe that this is one of the most effective ways of understanding and addressing the needs of the industry.

2013 will be Year 2 for the Quality Awards and we are planning an exciting gala event in Sydney in October! I will also be ramping up my industry engagement activities so that we can continue to get our messages out to more and more people. Here are just some of the events that I'm looking forward to being part of in support of the industry:

• Women in Fitness Forum (Feb)
• CEO Symposium for Association Executives (Feb)
• Cairns Fitness Industry Forum panel discussion (Feb)
• IHRSA Convention (Mar)
• FILEX Convention (Apr)
• Council of Small Business Conference (Jul)
• Fitness Australia Industry Forum and Quality Awards gala (Oct)

On a personal front, I intend to participate in four short-course triathlons this year, so my Personal Trainer is being kept very busy and I am staying very focused on my health and fitness goals!

I wish you all a healthy and prosperous 2013.