ACCESS Family Business - June 2019 by Access News Australia (ANA)

Allll tthe A he latest latest video video news: news: www.sydneywest.tv www.sydneywest.tv WESTERN SYDNEY

Family Business

With David Pring

WELCOME o KPMG Family Business ea ure ar icles, which I hope you enjoy reading. I you would like o discuss hese ar icles or how KPMG can help wi h your business, please eel ree o con ac me on 9455 9996 or davidpring@kpmg.com.au

Welcome No new axes on SUPERNNUA ION sel -managed unds hope or s abili y n JULIE DOLAN OS -elec ion, he $750 billion sel -managed superannua ion indus ry is probably relieved ha no ur her shake up o he indus ry is being planned. Over he las couple o years, he SMSF indus ry has ried o implemen and adminiser he his oric number o changes ha came abou rom he Simpler Super e orms in 2016. ere is no doub hey are welcoming a period o rela ive s abili y. Labor’s proposed aboli ion o ranking credi re unds was defni ely a poin o con enion be ween bo h par ies. e core o he deba e was he di ering opinions on how he ax policy around ranking credi s should be deal wi h. Bo h opinions held meri . Labor believed i was an erosion o he corpora e ax base whils he Coali ion argued i was a reins a emen o he correc ax posiion o he receiving axpayer. Due o he ax posi ion o many sel - unded re irees and SMSF’s, he impac o his measure had signifcan impac . Prime Minis er Scot Morrison has guaran eed “no new axes on Superannuaion”. Whils his guaran ee has been made, he Coali ion has s ill announced a ew minor changes o superannua ion. Some o hese changes o SMSFs include: • Changes o he ‘work es ’ ha will allow individuals aged 65 and 66 o make volun ary superannua ion con ribu ions. Curren ly only individuals over he age o 65 can make volun ary con ribu ions i hey have me he ‘work es ’. is es requires ‘gain ul employmen ’ or a minimum o 40 hours in a 30 day period be ore he con ribu ion can be made; • Ex ending he ‘bring orward’ rules o hose aged 65 and 66. As he rule curren ly s ands, a person needs o be under he age o 65 o benef rom he ‘bring orward’ rule so as o make hree years’ wor h o nonconcessional con ribu ions; • Increasing he age limi or spouse con ribu ions rom 69 o 74 years; • ein roducing he measure o increasing he SMSF member limi rom 4 o 6, despi e he removal o he measure shor ly be ore Parliamen was dissolved;

• Adminis ra ive changes in rela ion o how he SMSF calcula es exemp curren pension income. is includes a elimina ing a requen ly deba ed requiremen or SMSF’s o ob ain an ac uarial cer ifca e when he und is 100 percen in pension mode. • Con inuing o allow SMSFs o benef rom limi ed recourse borrowing arrangemen s. As o when hese proposed measures are in roduced will be a mater o ime, however

wha is cri ical, is ha any ur her changes are assessed agains he overall objec ive o superannua ion. is main objec ive, being “ o provide income in re iremen o subs i u e or supplemen he Age Pension”. o regain rus and s abili y in he indusry, a long- erm view needs o be aken. is is ur her subs an ia ed rom he recen fndings coming ou o he Financial Services oyal Commission, Produc ivi y Commission and APR repor s. A er many years o poli ical urmoil in Aus ralia and he desire o Aus ralians or

s able leadership, le ’s hope ha he Morrison led Coali ion par y will deliver his much needed requiremen . I is a ime o ‘rese ’. I you would like ur her in orma ion on ax regarding SMSF’s, con ac David Pring on 9455 9996 or davidpring@kpmg. com.au.

Article first published by Julie Dolan, Director, KPMG Enterprise on KPMG Newsroom.

Business of Family Master Classes How can you grow your family business, while balancing the needs of the business and the family?

Find out more at KPMG.com/au/businessoffamily

Share your vision, develop your plan!

WESTERN SYDNEY BUSINESS ACCESS JUNE 2019

Family Business

www.wsba.com.au

All the latest video news: www.sydneywest.tv

Why were he “quie Aus ralians” missed in he elec ion pre-polls? n AMANDA HICKS HE inaccuracy o polling da a came as a big shock in he recen Federal elec ion. A er consis en predic ions o a Labor vic ory, wi h bookmakers even paying ou in advance, he Liberal par y re ained heir majori y. As la e as elec ion eve, mos major polls had Labor ahead 51-49 on he wo-par y pre erred vo e. is resul mirrors a number o polling “upse s” globally over he pas ew years, rom rump’s elec ion in he US o Brexi . I ’s clear polls are missing a cohor o conserva ive vo ers, which he Aus ralian Liberal par y has now named “ he quie Ausralians”. is conserva ive vo e was also under represen ed in he 2015 UK General Elec ion, he 2016 Brexi re erendum and he 2016 US elec ion. is group is geting harder o quani y using radi ional polling me hods. ere are several reasons why he polls can pain an inaccura e pic ure o he elec ions, and in par icularly over he elec ion weekend in Aus ralia.

Increased disengagement In research, we ge much s ronger levels o accuracy and par icipa ion when people eel engaged in he issues a hand. e curren level o disengagemen wi h poli ical issues may be driving some o his under-represen a ion. We o en hear more s rongly in research rom hose wi h he loudes , mos ves ed voices. In his case, hose ha wan ed change may have been more visible and audible in he polls han hose con en wi h he s a us quo.

Fragmented audiences Poli ical opinion polling is a science ha depends on ex raordinary accuracy in erms o represen a ive samples, a a ime when inaccuracy is now oo easy. ere is no single way o reaching every Aus ralian cohor in an opinion poll. is compares o several years ago, when almos everyone had a landline and would answer he phone o do a quick survey. oday, increasing numbers o Aus ralians have in erne -only landline connec ions, i hey have a landline a all, and rely exclusively on mobile. Analysis o ACMA da a predic s only 50 percen o Aus ralian homes will s ill have a landline in 2021, down rom 83 percen in 2011. Wi h he 2015 UK general elec ion, he main problem wi h polling inaccuracy was de ermined o be unrepresen a ive samples.

People who ook par in polls did no accura ely re ec he popula ion as a whole. Analysis o he 2016 UK Brexi polling has indica ed ha online polls seemed o per orm beter han phone polls. In o al, 63 percen o online polls correc ly predic ed a Leave vic ory, while 78 percen o phone polls wrongly predic ed ha emain would win. Some o he discrepancy may have been due o younger vo ers suppor ing emain, bu no bo hering o vo e. A key di erence in Aus ralia, o course, is ha wi h vo ing being mandaory, he en ire elec ora e is represen ed.

Asking the right questions In he 2016 US elec ion, he vas majori y o polls predic ed ha Hillary Clin on

would bea Donald rump. One poll ha did correc ly pick rump in he lead was he USC/Los Angeles imes Daybreak racking poll. I allowed people o assign hemselves a probabili y o vo ing or ei her candida e, ra her han having o declare heir pre erence wi h 100 per cen . Di eren ypes o quesioning – ra her han he curren , s andard vo ing in en ion ques ion – may end up providing grea er insigh . And we are now seeing discussions abou whe her social media da a is a valuable predic or o vo ing in en ion. So when i comes o research, here is increasing inaccuracy buil in o he me hodologies ha akes ime and money o overcome. Poli ical opinion polling, such as ha we see in our media, is a rela ively unique

orm o research wi h regards o he degree o accuracy required, and he level o public scru iny placed on i hroughou an elec ion cycle. Commercial organisa ions recognise ha insigh and s ra egy is based on inves ing ime and money in seeking viewpoin s rom a varie y o da a sources o ensure all views are accura ely represen ed. I you would like o fnd ou more abou KPMG Acui y marke research services, please con ac David Pring on 9455 9996 or davidpring@kpmg.com.au.

Article first published by Amanda Hicks, KPMG Australia.

Logistics: the unlikely hero of business transformation n BRENDEN RICHARDS BIG par o wha I do in my day o day work is business res ruc uring. Now, in my line o work, here is a lo o con usion over exac ly wha res ruc uring involves. A lo o people hink o i as a slash and burn exercise where we grab any hing o value and sell i o o he highes bidder while he res o he business goes down he oile . Bu , in reali y, wha i really involves is reorganising he business – i s ownership, s ruc ure or opera ions – o make i more prof able and beter organised or i s u ure and presen needs. A company ha has been res ruc ured e ec ively will, in heory, be leaner, more e fcien , beter con rolled and beter ocused on i s business. I will have a revised s ra egic and fnancial plan, and all o ha will o en mean ha i is wor h more should anyone wan o sell i .

In my experience, a he hear o his ransorma ion, si s and unlikely hero – logis ics. emember, logis ics is no an indus ry, i is he unc ion o movemen . a ’s why i accoun s or up o 80 percen o every hing ha happens in our economy and ha ’s why any kind o business rans orma ion should s ar wi h an examina ion o he logis ics o he business. As I am ond o saying, logis ics is where real change happens. evolu ionary logis ics solu ions have regularly changed he social and economic landscape – hink he mo or vehicle, prin ing press, email and, mos recen ly, he cloud. Logis ics echnology changes everyhing. Cloud-based compu ing has emerged as a kind o digi al warehousing, accessible anywhere, reducing he need or physical in ras ruc ure. 3D prin ing will even ually elimina e much o he global shipping rade or manu ac ured produc , and he con inued grow h o online re ail will con inue o knock over radi ional supply chains and hose who par icipa e in hem.

e ra e o change in logis ics is ruly s arling, bu he poin is ha hose opera ing any kind o business and looking or an oppor uni y o rans orm ha business need o adop a logis ics mindse . ey need o look a heir business in erms o how every hing can be moved more e cien ly – no jus physical goods bu everyhing. ey also need o examine he various business unc ions rom a logis ics perspecive ins ead o he perspec ive o wha ever he discipline is radi ionally called. Le me give you an example. Is a ‘wai er’ a hospi ali y worker, a cus omer service represen a ive, or a logis ics manager? e mos backward o mindse s would defne he wai er by he indus ry hey work in. Someone more progressive migh look a hem rom he poin o view o heir in erac ion wi h he cus omer and he value ha adds. Bu he mos progressive will unders and ha he vas majori y o heir job involves moving he orders rom he ki chen o he able. ey are logis ics managers and

any hing he business can do o make ha movemen o goods more e ec ive, more e fcien and more cus omer ocused will have a ar grea er impac han he marginal improvemen s o ered by he narrow defni ions o ‘hospi ali y’ or ‘cus omer service’. ink abou i . Business rans orma ion involves making undamen al changes in how a business is conduc ed so i is beter able o cope wi h shi s in he environmen . In he modern world, mos o hose shi s are he resul o changes in logis ics. I makes sense ha business rans orma ion is bes achieved by realigning he business o a logis ics mindse . o fnd ou how we can help you wi h ranspor & logis ics, please con ac David Pring davidpring@kpmg.com.au

First published in the April issue of Prime Mover. Brendan Richards, Partner, National Sector Leader Transport & Logistics, KPMG Australia. WESTERN SYDNEY BUSINESS ACCESS JUNE 2019

Business of Family Master Classes It’s time to hone your family business skills to prepare you for an exciting future of growth! Join our new series of tailored master classes, all led by an expert KPMG Enterprise family business adviser. To ﬁnd out more and register your interest visit KPMG.com/au/businessoffamily

WESTERN SYDNEY BUSINESS ACCESS JUNE 2019