B2B Magazine Issue 124 March 2017 by B2B magazine

124 MARCH 2017

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Introducing: Civium Property Group (p.2) Do you leverage your ITC Program? (p.10) Are you maximising the depreciation results on your property? (p.14)

Why customer service is vital in a sea of automation? RSM explains (p. 16)

Introducing

Civium Property Group Managing, investing, selling and buying property can sometimes be both a confusing and difficult process to understand.

ince Doug O’Mara started in real estate with Ray White in Canberra, he’s been continuously looking at the best ways to ensure buyers, sellers, investors and those looking for property management can get the best possible advice and service. “I got into real estate and it got me thinking about the process and making it easier for the consumer. I also wanted to have the ability to provide a full-service agency for the Canberra market. Of course at the time this was just a dream but now it is far more of a reality. We’d been working with Ray White for several years under that brand and wanted to find a way to make the full-service property offering a reality. We launched Civium Strata People in 2014 and had great success in the local region. Many businesses and government

Doug O’Mara Managing Director

organisations would have dealt with us as we managed strata based services” O’Mara said.

“I got into real estate and it got me thinking about the process and making it easier for the consumer. I also wanted to have the ability to provide a full-service agency for the Canberra market” Doug O’Mara

and ACT, Civium want to be our clients partner in every aspect of real estate”. O’Mara said the office now has over 700 years’ worth of collective experience in dealing with both residential and commercial real estate needs.

or business partner Andrew Smith, the decision to brand as Civium across both residential and commercial is a step in the right direction for staff and clients alike. “In December, we took the brave step to rebrand Ray White to Civum in Canberra and effectively have two arms of our company. One that deals with residential and one that has expertise in commercial” Smith said. “We see this as an important step forward in ensuring that we are the only full service real estate agency in Canberra. With more than thirty years’ experience and offices in NSW

“It sounds like a long time, but our staff have a tremendous level of expertise and are well respected within the property sector by peers and our clients”. “As a family owned and operated business, Civium believe in much more than bricks and mortar. Our team truly believes in building relationships and being engaged with people and the community. This exciting change to our business will mean our experienced team will be able to provide a more tailored and local focus, responsive to our client’s real estate needs in the Canberra region" O’Mara said. “In Canberra, we want to be the first choice when it comes to property”.

Civium Property Group p: 02 6162 0681 e: doug.omara@civium.com.au | andrew.smith@civium.com.au civium.com.au

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Andrew Smith Commercial Director, ACT

CONTENTS

ISSN 1833-8232

COVER STORY

Why customer service is vital in a sea of automation?

PUBLISHER'S NOTE 5 International Women’s Day 2017 by Tim Benson SMART BUSINESS TIPS 5 Simple business cash flow tips by Smart Business Guardian UPFRONT 6 Crucial changes to domestic violence legislation by DDCS Lawyers 6 The door is closing on super’s current caps by Gillespie Group 8 Is your company a member of Strata Community Australia? by Strata Community Australia (ACT) 8 Top ten tips for women and girls from WaterAid female CEOs FEATURE 10 Leverage your ITC Program for success by Cadence Performance Solutions 12 Standing toe to toe: to disclose your salary or not? by HorizonOne 14 Canberra – we are your local depreciation specialist by Capital Claims ADVICE 21 ACCOUNTING Are you missing out on tax incentives? by RSM 21 BOOKKEEPING The important role of CFOs in NotFor-Profit associations sector by Tailored Accounts 22 BUSINESS LAW 20,000 complaints – but is the customer always right? by Bradly Allen Love Lawyers 22 CASH FLOW SOLUTIONS Five common business hurdles by Fifo Capital 4

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23 INSOLVENCY A $23 million mistake! Take care with the PPSA by Vincents 23 INTELLECTUAL PROPERTY Trade Mark Examiner Adverse Reports – not necessarily fatal to your application by Moulis Legal 24 RECRUITMENT Avoid a fail grade: integrated temporary employees make powerful brand advocates by HAYS Recruiting experts worldwide 24 STRATA MANAGEMENT Special Levy or Strata Finance? the answer is not always straight forward by Vantage Strata 25 THINK RESULTS Mediation – Keep the decisions in your court by Dipac & Associates 25 WEBSITES Speed kills the bottom line by Synapse Worldwide A2B: ASSOCIATIONS TO BUSINESS 26 Water, water everywhere – but how do we charge for it? G2B: GOVERNMENT TO BUSINESS 28 Getting down to business BUSINESS NETWORKING 30 B2B @ Servcorp Community Meets Event 31 B2B @ Sky High Tea at the Wayfarer Sky Lounge 32 B2B @ 20th Anniversary Karpathian Fishing Competition 34 B2B @ Roses are Red MS Fundraising

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EDITOR / PUBLISHER Tim Benson editorial@b2bmagazine.com.au 0402 900 402 02 6112 8175 PUBLISHED BY Man Bites Dog Public Relations ABN 30 932 483 322 PO Box 4106 Ainslie ACT 2602 b2bmagazine.com.au ADVERTISING B2B Magazine advertising@b2bmagazine.com.au 0402 900 402 02 6112 8175 EDITORIAL ASSISTANT Termeh Garmestani termeh@b2bmagazine.com.au 02 6112 8176 DESIGN & PHOTOGRAPHY

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Illustration used on page 6: Dooder - Freepik.com. Pages: 4, 16-19 and cover: Freepik.com LEGAL NOTICE Man Bites Dog Public Relations (‘MBD’) owns the copyright in this publication. Except for any fair dealing as permitted by the Copyright Act 1968 (Cwth), no part of this publication may be reproduced without the prior written permission of MBD. MBD has been careful in preparing this publication, however: it is not able to, and does not warrant that the publication is free from errors and omissions; and it is not able to verify, and has not verified the accuracy of the information and opinions contained or expressed in, or which may be conveyed to readers by any advertisement or other publication content. MBD advises that it accepts all contributed material and advertisements contained in this publication in good faith, and relies on various warranties and permissions provided to it by the persons who contribute material and/or place advertisements. Those warranties and permissions include that neither the material and/or advertisements are misleading, deceptive or defamatory, and that their use, adaptation or publication does not infringe the rights of any third party, or any relevant laws. Further, MBD notifies readers that it does not, nor should it be understood to endorse, adopt, approve or otherwise associate MBD with any representations made in contributions and/or advertisements contained in the publication. MBD makes no representation or warranty as to the qualifications of any contributor or advertiser or persons associated with them, and advises readers that they must rely solely on their own enquiries in relation to such qualifications, and be satisfied from those enquiries that persons with whom they deal as a result of reading any material or advertisement have the necessary licences and professional qualifications relating to the goods and services offered. To the maximum extent permitted by law, MBD excludes all liabilities in contract, tort (including negligence) and/or statute for loss, damage, costs and expenses of any kind to any person arising directly or indirectly from any material or advertisement contained in this publication, whether arising from an error, omission, misrepresentation or any other cause.

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PUBLISHER'S NOTE

INTERNATIONAL WOMEN’S DAY 2017

n March, we celebrate International Women’s Day (IWD). According to the IWD homepage the World Economic Forum predicts the gender gap won't close entirely until 2186. So, don’t hold your breath for that one. But there are plenty of good thing to celebrate in the meantime. One of them is that the B2B Magazine website is visited by more women than men. In fact, the split is 52.68% women to 47.32% men. Not bad when you consider B2B Magazine has over 60,000 search engine impressions per month and more than 500 unique visitors to the website each day. I also learned a new word. That word is ‘Soroptimist’ (coined from the Latin soror meaning sister, and optima meaning best. Soroptimist is perhaps best interpreted as ‘the best for women’). The first Soroptimist club was formed in 1921 in Oakland California. Since then, Soroptimist International (SI) has sought to bring about change to the lives of women and girls worldwide. Through its global network of four Federations and its dedicated volunteer membership of over 75,000, SI is driven by its mission of transforming lives through education, empowerment and by enabling opportunities. In fact, the Soroptimist International Federation of the South Pacific, Canberra, held a lunch on International Women’s Day with guest speaker Kath Taplin, Executive Director of the Women’s Legal Centre. If you are interested finding out more about Soroptimist International then visit siswp.org. The following information is from the Australian Human Rights Commission: • Women and girls make up just over half (50.2 per cent) of the Australian population. • While women comprise roughly 46 per cent of all employees in Australia, they take home on average $283.20 less than men each week (full-time adult ordinary time earnings). The national gender “pay gap” is 18.2 per cent and it has remained stuck between 15 per cent and 18 per cent for the past two decades. • Australian women account for 92 per cent of primary carers for children with disabilities, 70 per cent of primary carers for parents and 52 per cent of primary carers for partners. • In 2013, Australia was ranked 24th on a global index measuring gender equality, slipping from a high point of 15th in 2006. More information can be found at www.humanrights.gov.au. Tim Benson, Publisher Send all comments to: editorial@b2bmagazine.com.au

Simple Business Cash Flow Tips Kristin Miller General Manager Smart Business Guardian I find myself regularly talking to business owners about simple ways they can manage their money to ensure they can pay their business obligations. The advice I give is very basic but the feedback we get is that is significantly reduces stress levels and means business have the funds to pay bills as they come due. So here are my gems of wisdom: • Have at least two business bank accounts. The first is to be used for day to day operations. The second is an on-line savings account. • After each payroll is run and net pays made to staff, the remaining liability for Super, Long Service Leave and PAYG Withholding is transferred to the savings account. While these obligations are usually only paid quarterly the funds are no longer available for other business expenses. • At least monthly a business should review its GST obligations and transfer an amount to cover this to the savings account. Again, this payment will not be due until the end of each quarter but funds are set aside. • Another option is to average out the above total costs and set up a weekly transfer to the savings account for these. By adopting these few simple steps at the end of each quarter when a business is required to pay Super and lodge and pay its Business Activity Statement funds are available to do so immediately. No stress then involved in looking for large lump sums of money. If you have any other simple ideas you would like to share with us or would like to chat with us further about how we can help you please feel free to give us a call. (02) 6162 1928 49 Phillip Avenue, Room C205, Watson, ACT 2602 smartbusinessguardian.com

UPFRONT

Photo: Christopher Ireland

Crucial changes to domestic violence legislation

ara Costigan’s tragic death and the recent sentencing of Marcus Rappell for her murder were two landmark events in the campaign to overhaul the domestic violence system in the ACT. The devastating loss of Ms Costigan just over two years ago, along with the deaths of three others in 2015, jolted the ACT Government into action with the announcement that the domestic violence system would be reviewed, including re-writing of the existing domestic violence laws. It is well known that Ms Costigan had obtained a Domestic Violence Order (DVO) against Mr Rappell the day before her brutal murder.

On 1 May 2017, new legislation will be put to the test as the Family Violence Act 2016 comes into effect. In seeking to recognise the systemic, widespread and gendered nature of domestic violence, which is experienced largely by women, the Family Violence Act 2016 implements the recommendations of the Australian and New South Wales Law Reform Commissions report, Family Violence – A National Legal Response. It is the also result of three other reports urging that the fragmented and flawed domestic violence laws in the ACT be reviewed. A key difference under the new legislation is the abandonment of the out-dated term “domestic violence” in favour of a much broader definition of “family violence”. The new language reflects changes in the community’s understanding and recognition of conduct which constitutes family violence. While still covering traditionally understood forms of violence between family members, such as physical abuse, verbal abuse and threatening conduct, the definition of “family violence” in the Family Violence Act 2016 now covers some of the more insidious forms of

By Jacquelyn Curtis

violence. For example: 1. Sexual violence or abuse 2. Emotional or psychological abuse 3. Economic abuse (including financial control and coercion) 4. Coercion or any other behaviour that seeks to control or dominate a family member 5. Behaviour that causes a family member to fear for their safety or wellbeing The new definition also now reflects more closely the definition of family violence in the Family Law Act, providing parity in different Courts and jurisdictions about how certain conduct is defined and dealt with. Jacquelyn Curtis is an Associate of DDCS Lawyers. 18 Kendall Lane, New Acton, Canberra phone (02) 6212 7600 mail@ddcslawyers.com.au www.ddcslawyers.com.au

The door is closing on super’s current caps

By Stuart Howard

New laws will limit the amount that goes into super. Are you prepared for the changes?

ollowing last year’s Federal Budget, new superannuation rules will take effect on 1 July this year here are some important points to consider.

How the new super rules will affect you

From 1 July, you’ll be unable to put as much money into super as you can right now. With a tax rate of 15% on earnings, super is likely to remain one of the most taxeffective ways to invest. However with some contributions caps set to reduce by nearly 45%, less money will be allowed to benefit from the tax concessions on offer. From 1 July, you'll only be permitted to add up to $100,000 in after-tax dollars per year. That’s because the non-concessional contributions cap is lowering from the current cap of $180,000 per year.

Act well before 1 July

There are two key things to consider right now: the current non-concessional contributions cap of $180,000 per year and the three-year rule that could allow you to add three years’ worth of non-concessional contributions before 1 July. That means you could add $540,000 into your super—or an adjusted amount if you’ve already made a non-concessional contribution within the last three years. You must be under 65 to take advantage of this current ruling and you must act before 1 July. After 1 July you’ll be limited to an annual amount of $100,000 or $300,000 in a three-year period. It’s likely you won’t have $540,000 lying around but because this may be the last chance for so much of your money to benefit from super’s tax-concessions, it’s worth considering whether you can transfer the value of other assets into super. Boost your balance until 30 June

After 30 June 2017, if the total amount you hold in super exceeds $1.6 million you won’t be allowed to make further non-concessional contributions. You now have a small window

of time left to boost your super so your money can benefit from the tax leniency that applies in super. Act now, before it’s too late

There are other changes coming to super including changing tax rules for transitionto-retirement pensions and restrictions on before-tax contributions (concessional) caps. It’s a good time to call us so you can be confident in your understanding of the current and changing rules that will affect you. We encourage you to act now so you can explore your options in time. Stuart Howard Financial Planner AFP® - DFP BA(Hons) EC Authorised Representative (464725) Gillespie Finance Directions Pty Ltd ABN 40 122 284 888 AFS and Australian Credit Licence No 478547 Phone 02 6260 4994 - Fax 02 6260 4995 Level 1, 68-70 Dundas Court PHILLIP ACT 2606 gillespiegroup.com.au

This advice may not be suitable to you because it contains general advice that has not been tailored to your personal circumstances. Please seek personal financial advice prior to acting on this information.

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UPFRONT Photo: Lindi Heap

Is your company a member of Strata Community Australia?

By Tim Maly

y now, those of you who own a unit, apartment or townhouse would be aware of Strata Community Australia. SCA is the peak industry body for anyone involved in unit titles, body corporate, or owners corporations. This includes strata managers, service contractors, lawyers, unit owners, or anyone with an interest in the strata industry. Each State & Territory has an SCA Branch or Chapter. SCA (ACT) strives to improve professionalism and knowledge of strata managers, and advocates for the rights of unit owners in Canberra. A major focus of SCA (ACT) over the last few years has been on the education and ongoing professional development of strata

managers in the ACT. With the assistance of the SCA National office, strata managers in Canberra have never been more educated and armed with the skills and tools to be the best strata managers they can be. Today, a new strata manager will undertake the SCA A-100 course, which is a comprehensive, non-legislative specific, introduction to strata management. As they progress in their career, an SCA aligned strata manager will complete a Certificate III and then onto a Certificate 4 in property services, specifically tailored to strata management. What does a better educated and trained strata manager mean to you, the unit owner?

Well it means better service, greater efficiency, a strata manager that can give you the advice and guidance you need, and the possibility of bringing your levies down through being better equipped to handle multiple issues all at once. Today, there are more than double the number of strata management firms in the

ACT, than there were four or five years ago. Each of them offer something different in terms of their philosophy to delivering a quality strata management service. Having a Strata Manager who is a member of SCA (ACT) has many benefits like as mentioned, but simple things like members abiding by a code of ethics and code of conduct, also gives unit owners peace of mind when dealing with their SCA (ACT) member Strata Manager. Owners Corporations who might be seeking a new manager are now asking the question of a prospective strata management firm, “Is your company a member of Strata Community Australia (ACT)?”

Tim Maly President – Strata Community Australia (ACT) Mobile: 0447 820 032 www.stratacommunity.org.au

Top ten tips for women and girls from WaterAid female CEOs  Believe in Yourself

“I think that we teach young girls to doubt themselves. For some reason, the way that we bring up our girls doesn’t inspire confidence in themselves. So I would say just give it a go – you can do it.” Rosie Wheen WaterAid Australia Chief Executive  Take Risks “Take some big risks, have a big vision and believe in yourself.” Barbara Frost WaterAid UK Chief Executive Officer  Find Your Passion “Go out and try and find your passion, it’s when you have that passion and that commitment that you can actually make a difference.” Cecilia Chatterjee-Martinsen WaterAid Sweden Chief Executive “I think that we teach young girls to doubt themselves. For some reason, the way that we bring up our girls doesn’t inspire confidence in themselves. So I would say just give it a go – you can do it.” Rosie Wheen

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Find a Mentor “Find a mentor, find someone you believe in, someone you trust who can accompany you on your path.” Nicole Hurtubise WaterAid Canada Chief Executive  Be Resilient “Have courage and resilience. Keep believing in yourself even when it’s tough, even when others don’t believe in you – and even when you don’t believe yourself – just keep at it.” Sarina Prabasi WaterAid America Chief Executive  Leave your comfort zone “The sky is not going to fall in if you make a mistake. You will actually learn more from giving it a go and getting yourself out of your comfort zone. What I have really found is 80% of success is just giving it a go.” Rosie Wheen WaterAid Australia Chief Executive  Say Yes “Try out new things, it’s ok to fail, but just go out there, say yes, be brave and try out. You will make a change if you really want to.” Cecilia Chatterjee-Martinsen WaterAid Sweden Chief Executive



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 Give It Your All

“Really believe in what you’re doing, do a job that plays to your heart, to your values, so that you’ll give it your all.” Barbara Frost WaterAid UK Chief Executive Officer  Be Patient “Be kind to yourself, you can’t change the world overnight – you can influence bits of it at a time, but it can’t be done overnight.” Nicole Hurtubise WaterAid Canada Chief Executive 1 Smile “You need determination, a really, really good sense of humour, and self-confidence of course… Remember to smile – smile through adversity.” Nicole Hurtubise WaterAid Canada Chief Executive

F E AT U R E

Leverage your ITC Program for success The table below depicts the key levers of the Change Management stream - all components are inter-linked and together Photo: Kasra Yousefi

o you have the right levers in place to drive a successful outcome for your Information and Communications Technology (ICT) program? Ensuring a successful implementation not only entails selecting the right technology and constructing a skilled Project Team, but critically it also entails driving a well considered change management, communications and training strategy and plan. The importance of change management, communication and training cannot be understated and is regularly quoted in ERP implementations as a key element of success (or failure). For example, a Monash & Victoria University of Technology (Australia) study found that “The main findings…indicate that organizations that have undertaken several iterations of ERP implementations still do not attain expected benefits, and the main reason for this lack of benefit attainment are people issues, mainly training and change management.”

Joe Westhuizen, CEO, Cadence Performance Solutions

form the basis for an effective plan.Cadence Performance Solutions (Cadence) continues to support Customers on medium to a range of ICT programs. Their focus is to work with Customers to ensure users adopt

Change Levers for Success

Change Leadership

Training

Support of business leaders in driving and facilitating the change within their Division through active and ongoing engagement, providing key support messages, and program updates.

Design, develop, and execute innovative training programs that suit the needs of each audience group and have minimal disruption to the business.

Communication

Stakeholder Management

Development of key messages focusing on the issues and interests for each audience within Divisions including Customers and Vendors and producing planned communications to raise awareness, build understanding and develop support for the change.

Secure the involvement of key audience to develop their confidence that their issues are being addressed and changed systems and processes will meet their needs.

Impact Management

Business Readiness

Understand the combined and individual effects of all aspects of the change on each audience group, and develop appropriate strategies to ensure a positive experience and minimise any potentially negative impacts for the business.

Drive the implementation of structure and/or role change and aligning, coordinating and supporting the Human Resources team to achieve this. Ensure the business is ready for go-live with all compliance, regulatory, blackout periods and backlogs managed and high confidence and readiness for each milestone.

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new systems. Joe Westhuizen, the CEO of Cadence, has worked on countless projects and says “not surprisingly, most organization’s

“...organisations that have undertaken several iterations of ERP implementations still do not attain expected benefits, and the main reason for this lack of benefit attainment are people issues, mainly training and change management.” create a communications and training plan, but very few give attention to all the levers of change. For example, senior leaders, who are often the face and voice of change and in the best position to reinforce change – their involvement most often seems to be assumed or expected rather than architected”. Whether its time, budget or the lack of experienced resources, ICT programs (and their leaders) are not being as comprehensive as they could and should be in their approach to help users embrace and adopt change and embrace and adopt new systems. Sports teams typically improve when they obtain the services of a coach. Why - because the coach brings the structures, plans and game experience. The coach uses different levers to drive team success. The key takeaway is to use all the levers you have at your disposal. Each lever uniquely contributes to a successful outcome. By not utilizing all the levers of change you leave certain aspects of change to chance or luck and put at risk the project results and outcomes. As Joe mentions when talking about successful ICT programs, “to be more successful, build an holistic approach, leverage all the levers, and you will be pleasantly surprised, or perhaps just relieved at how successful your ICT implementation really can be."

Phone : +61 1300 30 60 04 Email : info@cadenceperformance.solutions Website : cadenceperformance.solutions

F E AT U R E

Standing toe to toe: to disclose your salary or not? By David Harrington

There is ongoing debate on whether you should or should not disclose your current salary to a recruiter of hiring manager when applying for a position. Disclosing your current salary does not limit your chances of negotiating a better salary package offer. Refusing to disclose your salary however, may lose you the job! In the blue corner: not disclosing your salary

he argument for not disclosing your salary is primarily that in doing so, you will be in a weaker position when it comes to negotiating a salary package. Supporters in this corner would say that you should be able to negotiate a package based on what you feel you are worth, and that current or previous salaries are not relevant in this discussion. There are of course those who are in the enviable position of naming their price in the job market based on elusive skills, or high profile career achievements. In this situation, I agree that you are very likely in a great position to ask for what you want without mention of current package. For the majority of us however, we are likely to face serious competition in the market when we set out to look for a new career opportunity. How do you know where you weigh in against opponents in the ring? In the red corner: why you should disclose your salary

On your own, knowing your worth in the current job market can be difficult to identify and understand. Recruiters however are in a very good position to provide advice, as they meet with jobseekers and employers on a daily basis. They are able to compare and contrast the value and risk of an individual candidate amongst others competing for similar roles. Seeking expert insight into your worth on the job market is particularly important if 12

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you are looking to transition your career from one sector to another. For example, from the Private Sector into Government. A recruiter can use their knowledge to advise and guide you appropriately so that you set realistic expectations of your value, and do not price yourself out of getting the job you want. Watch out for sucker punches!

I am not saying you should trust all recruiters with your career path and salary negotiation. There are certainly those less scrupulous in the industry that are working towards their commission above all else, rather than genuinely seeking strong outcomes for their clients and candidates. This can involve them doing sales job on a candidate to get a quick placement which involves very little value-add consulting. We have all heard the horror stories. It is important to identify and engage with a reputable and well-referenced recruiter. Ask

recruiter or hiring manager. It is usually a fair assumption that if you won’t disclose your salary, it is likely to be far less than what is being offered for the role you are targeting. In my experience, many people who take this approach haven’t thought about the value proposition to put forward as to why they feel they are worth the higher salary package. Their expectation is quite often formed from pure emotion, personal need, misinformation and what colleagues might be earning. Relying on these things will not get you far. It’s a knockout

In conclusion, I encourage you to think twice before deciding not to disclose you current salary to a recruiter or hiring manager. It will not limit your chances of securing a stronger salary package if you can appropriately support your expectations. Consider why you feel you are worth it, and

“Seeking expert insight into your worth on the job market is particularly important if you are looking to transition your career from one sector to another. For example, from the Private Sector into Government.” your friends and colleagues who they have worked successfully with in the past and do your research. Believe you are a contender

Job seekers hold the power to negotiate a better salary package offer. If you genuinely have a strong case to negotiate based on facts and a proven track record of success in your career to date, then you should do so. Regardless of this, the employment market does suffer the same ups and downs as any other, based on availability of skills. If there is a glut of similarly experienced people in your field, you should realistically expect a potential fall in your market value. Don’t put yourself on the ropes

Failure to disclose your current salary will usually raise immediate concerns with a

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really define the value proposition that you will bring to the employer. Why are you valuable to them? What value will you create for their business? Back up your claims with evidence of where you have done similar things in your previous roles.

Sourcing talent is a science, not a sales game

Please contact David Harrington at HorizonOne Recruitment on 02 6108 4878 or david@horizonone.com.au Level 1, 27 Torrens Street, Braddon www.horizonone.com.au

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F E AT U R E

“Very professional and turnaround time to get the reports has been fantastic - would recommend them to all our clients.” Gay Spooner Real Estate Agent, Canberra and reported on. We know how to generate the maximum depreciation results for every investment property, whether it be residential, commercial, industrial or rural. How can we assist you and your clients?

Canberra – we are your local depreciation specialist

apital Claims Tax Depreciation has been servicing Canberra and surrounding areas since 2008, and has completed thousands of depreciation schedules for both residential and commercial property owners. In 2015 we introduced Sean Loftie-Eaton as a Director within our team to specifically service Canberra businesses and investors. Find out more about Sean on LinkedIn. What do we do best?

With 20+ years of experience in the niche field of depreciation, there is hardly a property type we have not inspected, assessed, costed

“I have used Capital Claims Tax Depreciation for 2 of my properties. The reports were professional, thorough and easy to follow and well worth the cost.” Brian Hunter Investor, Director Dizzy Office Furniture 14

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As accountants, property managers, real estate agents, mortgage brokers and conveyancers, your clients are counting on you for expert advice and guidance when it comes to purchasing and managing their investment property most effectively. Many investors don’t want to shop around for services they are unfamiliar with, and a business referred by a trusted advisor in the know is highly appreciated. We are here to be your local “go to” depreciation specialist for your team and clients. We can support your in-house education seminars by providing expert presentations and resources. We will conduct free desktop assessments of properties to ensure schedules are worthwhile for a property before we book it in. We offer free advice on all matters depreciation so you can grow your knowledge and discuss this aspect of investing confidently. We are fanatical about our service and our personalised approach ensures that your clients feel valued and confident in their purchase. And as the referring partner, that makes you look great too! What makes us the best?

As expert Quantity Surveyors and registered tax agents, with extensive experience and thousands of happy referrers and customers, you can count on us for the best results and service for your clients. Not only are our depreciation schedules the highest quality produced in our industry, but they also represent the best value. We include extras that our competitors don’t such as scrapping reports, and ongoing free updates for asset replacements and additions (not including capital works). Here’s what some of our current partners are saying about working with us

Salena Kulkarni – Wealth Creation I continue to work with Capital Claims because they offer excellent value for money

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and exceptional customer service. I would highly recommend anyone considering the preparation of a depreciation report to get in touch with Sean. Michael O'Hehir – Accountant, RSM Canberra As an accountant I find Capital Claims professional, priced well and very efficient. Their reports are first class resulting in happy clients. Kellin Kristofferson – Lawyer, Canberra Sean made obtaining a tax depreciation schedule effortless. I did not need to organise anything, and the report was excellent value. I wish I had known earlier what they could do for my investment property! Chelsea van Zyl – Real Estate Agent, Canberra White Rhino Property is extremely happy with the continued service that Capital Claims provides us and our clients. We never hesitate to recommend them, as we find Capital Claims to be professional, knowledgeable and efficient. Brian Hunter – Investor, Director Dizzy Office Furniture I have used Capital Claims Tax Depreciation for 2 of my properties. The reports were professional, thorough and easy to follow and well worth the cost. Gay Spooner – Real Estate Agent, Canberra Very professional and turnaround time to get the reports has been fantastic - would recommend them to all our clients. Maria Edwards – Real Estate BD Manager, Canberra Very friendly, personal service & efficient provision of reports. Definitely 5 stars.

Canberra office Level 6, 39 London Circuit, Canberra ACT 2601 T: 1300 922 220 seanl@capitalclaims.com.au info@capitalclaims.com.au

COVER STORY

WHY CUSTOMER SERVICE IS VITAL IN A SEA OF AUTOMATION? By Andrew Sykes

How to increase profits through better Customer Service

n recent years, we’ve seen huge growth in the use of live chat, messaging bots and online apps and software. As more and more organisations focus on customer self-help, it’s all too easy for plain old-fashioned customer service to get pushed to the sidelines. In fact, many organisations are doing their best to eradicate the need for customer service staff entirely, in a bid to reduce labour costs and tighten up efficiencies. While it certainly makes sense to equip customers with the tools they need to complete transactions at their own convenience, it’s important this doesn’t come at the cost of the personal touch. The reality is that the quality of your customer service has a bigger impact on your business bottom line than you probably think.

“Customer service is not just a warm and fuzzy addition to your business practices, it’s directly linked to your profitability and sales. This is why it needs to be a priority and a focus for any business that wants to grow or even survive in a highly competitive future.”

Why customer service is so important Here are three ways the quality of your customer service can directly impact your business profitability: 1. Differentiation: Great customer service differentiates you from the rest of the pack without cutting into your profit margins in the way that competing on price will. Customers these days enjoy a higher level of transparency than ever before, and they can compare and contrast products and services at the click of a button. Participating in a race to the bottom might lead to you getting a larger market share, but it will be at the expense of your profit margins, which 16

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could be damaging to your business over the long term. 2. Foster loyalty: If you offer good customer service you’ll get far more in the way of repeat business and referrals than if your customer service is average. The cost of retaining existing customers is far lower than acquiring new ones, so you’ll be able to increase your sales while keeping your marketing costs stable. Listening to your customers and building strong relationships with them will lead to greater loyalty and a dedicated base of repeat customers who will recommend you to others.

COVER STORY

“...many organisations are doing their best to eradicate the need for customer service staff entirely, in a bid to reduce labour costs and tighten up efficiencies.”

1 Press Press

Press 3# 3. Increased sales: Your customer service team are there to help customers with any problems they have with using your selfhelp platform. Without the right customer support, your potential customer will probably just give up if and when they encounter a roadblock, resulting in the loss of a sale. If you have well trained customer service staff, they will be able to resolve any issues quickly and effectively, ensuring that the customer completes the sale and you don’t lose out to your competitors. Customer service is not just a warm and fuzzy addition to your business practices, it’s directly linked to your profitability and sales. This is why it needs to be a priority and a focus for any business that wants to grow or even survive in a highly competitive future. So just how can you go about creating a better customer experience? The good news is it’s not difficult to improve your customer service and impress your customers.

Simple ways to improve your customer service Here are five simple strategies that can help you do just that: 1. Train your employees The simple things can make a big difference, so make sure your staff are aware of the need to smile and spend time getting to know your customers. An added personal touch can not only humanise your brand, it can lead to increased sales and boost your brand loyalty (leading to more sales and referrals in the future). Each and every organisation

has its own take on customer service, so it’s important that each and every employee is trained in your philosophy and approach. Educate them on your expectations, organisational standards, complaint resolution procedures and how to answer the phone or greet customers so you can ensure a consistent experience for your customers throughout. 2. Review each customer touchpoint Consistency is the key to building a strong brand identity and a loyal base of customers. This means offering a consistently good experience to your customers at each touchpoint. Think about all the ways your customers interact with you, from face to face, over the phone and via your website or app. Look at any areas that could benefit from improvement. In many cases, it’s possible to remove the need for a user to contact customer service by improving the quality of the information available via other means, mostly your website or app. For many organisations, a significant number of calls to customer service are down to the inability to find information, vague or unclear instructions, or difficulties completing a transaction online. If you can streamline as much as possible at your customer touchpoints, you can free up your customer service team to focus on relationship building, cut staffing costs and reduce call wait times. All this will in turn build a positive customer experience.

s4 Pres

“...a significant number of calls to customer service are down to the inability to find information, vague or unclear instructions, or difficulties completing a transaction online.”

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COVER STORY

“Great customer service isn’t just about resolving an issue. If you really want to differentiate yourself and impress your customers, you need to consider their experience from beginning to end.” 3. Create a documented customer service strategy This is essential if you want to provide a consistent experience to your customers and ensure your employees are all acting in accordance with your brand’s values. Your strategy should cover every single customer touchpoint, and it should be communicated to your staff across the board. A great customer service strategy incorporates the following elements: • Customer service vision tells your employees what your overarching goals are and how they can help you achieve that vision. • A hiring policy that focuses on hiring employees with the right skill set to provide quality customer service in line with your vision. • Identification of customer needs and expectations. • Clear goals for customer service staff. • Recognition of good service and high performance. Just like your customers need to feel appreciated, your employees should also feel valued and rewarded when they do a good job. 4. Improve customer interactions As well as looking at your overall customer interactions, if you’re serious about providing great customer service, you’ll want to look at the quality of your customer interactions. Do all your customers feel appreciated and valued? If they don’t leave every interaction feeling

COVER STORY

positive towards your business, they’re not likely to come back. Getting this right is a big step towards building customer loyalty and bringing in repeat business. It’s well worth evaluating the outcome of your customer interactions and even seeking out feedback from customers after they have been in contact with a member of your customer service team. 5. Seek out feedback Listening to your customers is one of the most valuable things you can do, both from the point of view of making them feel valued and also so you can be aware of any issues that you need to improve on. A negative customer experience can be turned into a positive one depending on how you deal with it. Take a proactive

“To fully understand the quality of customer experience, you will need to map out the entire customer journey, from the first time they land on your website all the way to when they make a repeat purchase. ” approach to seeking out feedback – many businesses avoid doing this for fear of what they might hear. But there’s nothing to be afraid of! Feedback can and should be sought regularly as part of the post sales process and it can give you valuable insight into your organisation’s strengths and weaknesses. It also gives you the opportunity to fix problems before they lose you sales or cost you your reputation.

Stand out by offering a quality user experience Great customer service isn’t just about resolving an issue. If you really want to differentiate yourself and impress your customers, you need to consider their experience from beginning to end. This is where user experience comes in. User experience is becoming a strong focus for more and more organisations as competition increases and expectations among customers change. If you’ve got it right, your customers will have a consistent, positive experience every time they come

into contact with your brand. This means from the first time they land on your website, through to their online transactions, apps or tools that are linked with your brand, through to post-sales follow ups and more. Once you’ve gone through the process of improving your customer service, the logical next step is to think about the whole customer or user experience. User experience looks at the whole journey, not just direct interactions between customers and your employees. To fully understand the quality of customer experience, you will need to map out the entire customer journey, from the first time they land on your website all the way to when they make a repeat purchase. User experience means removing any roadblocks on this journey that could be preventing a customer completing a transaction. As well as troubleshooting potential issues, creating a great user experience means ensuring a consistent message is communicated across every touchpoint, from your website and app to your customer service team. Your brand values should be clear and communicated across all platforms.

If you feel like you can’t afford to spend the time on your customer service staff or training, it’s well worth thinking about whether you can actually afford not to. With customer service having such a direct impact on profitability, overlooking its importance is not an option if you want to be successful.

At RSM we can help you ensure you provide exceptional customer service by offering our support and expertise in business. If you would like to speak to RSM about how we can help, please contact Andrew Sykes on 02 6217 0333 or andrew.sykes@rsm.com.au. Experience the power of being understood. Experience RSM. rsm.com.au

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ADVICE ACCOUNTING

Are you missing out on tax incentives?

BOOKKEEPING

The important role of CFOs in Not-For-Profit associations sector

BUSINESS LAW

20,000 complaints – but is the customer always right?

CASH FLOW SOLUTIONS

Five common business hurdles

by Sally Colquhoun, RSM

by Fuzuki Nishimura, Tailored Accounts

by Mark Love, Bradley Allen Love Lawyers

by Jane Lombard, Fifo Capital

INSOLVENCY 23

A $23 million mistake!Take care with the PPSA

INTELLECTUAL PROPERTY 23

Trade Mark Examiner Adverse Reports – not necessarily fatal to your application

RECRUITMENT

Avoid a fail grade: integrated temporary employees make powerful brand advocates

STRATA MANAGEMENT

Special Levy or Strata Finance? the answer is not always straight forward

THINK RESULTS

Mediation – Keep the decisions in your court

WEBSITES

Speed kills the bottom line

by Tony Lane, Vincents

by Shaun Creighton, Moulis Legal

by Jim Roy, Hays Recruitment Experts Worldwide

by Chris Miller, Vantage Strata

by Darleen Barton, DIPAC & Associates

by Sam Gupta, Synapse Worldwide

ACCOUNTING by Sally Colquhoun

Are you missing out on tax incentives? If you’re the owner of a company that, unbeknown to you, conducts research and development (R&D) which could qualify for tax incentives – to the tune of 45 cents for every dollar spent – now’s the time to explore how much tax money you might be leaving on the table. There are countless companies across Australia that periodically end up performing 'innovative and incremental' development, which, subject to certain criteria, is eligible for R&D tax dollars they’re simply not claiming. Broadly, for companies with a grouped turnover of greater than $20m (globally), the R&D Tax Incentive program provides a 40% tax credit (equating to a 10% benefit on top of the standard 30% tax deduction). So for $500k spent on eligible R&D, there is the opportunity claim an additional $50,000 to reduce your tax payable or increase tax losses going forward. For smaller companies with a grouped turnover of less than $20m, there is a more generous 45% refundable tax credit which provides up to 45c back per $1 spent on eligible R&D. Typically, the R&D claim process involves looking at areas of your business where R&D projects may have been undertaken. Broadly, this relates to activities: • where the outcome could not be known in advance on the basis of current knowledge or experience • where a progression of work took place, from hypothesis, to experiment, observation, evaluation and conclusions • work generates new knowledge in the form of new products, materials, processes, services, methodologies etc Many company owners may assume that they need to operate in an innovative industry to be eligible to claim. However, companies across all industries may be undertaking eligible R&D activities. Those involved in software development, chemistry, agriculture, pharmaceuticals, clean technology, renewable energy, and mineral science developments are amongst those sectors most at risk of missing out on R&D claims. However, companies in industries such as construction, property and engineering may also be undertaking eligible activities. For example, these companies may be undertaking the following activities as part of their ordinary business activities, each of which may be considered eligible R&D activities: • Development of improved site remediation methods • Development and trialling to achieve improved energy efficiency • Development of new or improved noise reduction techniques • Development of commercial or residential projects incorporating unique and leading edge design elements, such as facades, water systems, piles or back-propping. • Investigations and trials as a consequence of adapting new or nonindustry standard technology or materials. If you believe there is a possibility that your company undertakes eligible R&D activities, time is ticking. The cut-off date for lodging R&D tax claims is the 30 April 2017. Please contact Sally Colquhoun on sally.colquhoun@rsm.com.au or call 02 6217 0323 if you would like to explore the possibility.

BOOKKEEPING by Fuzuki Nishimura

The important role of CFOs in Not-For-Profit associations sector Recent changes in government policy have resulted in substantial impacts on the Not-For-Profit (NFP) association sector. Government grants to NFP associations are expected to decline, contributing to the resourcing pressures for many NFP associations in Australia. Financial resources from memberships, donations, and The recent changes in the government grants were core funds used to sustain NFP associations for National Disability Insurance many years. However, the concern Scheme (NDIS) removed many in the sector now would be their survival under the increasing existing grants paid directly to budget constraints. The recent changes in the the NFP association sector. National Disability Insurance Scheme (NDIS) removed many existing grants paid directly to the NFP association sector. According to market research conducted by BDO in 2016, most associations were not ready for the changes in the new scheme even after the NDIS was rolled out. The complexity of the changes required more effective change management. Typical associations in the healthcare and community well-being industry needed significant training and transitional support. A significant strategy for NFP A significant strategy for NFP associations to effectively adapt to associations to effectively adapt change is the development of new leadership. It should begin with Board reforms to create an “A-team”, to change is the development of who is willing to lead the association new leadership. through changes. In order to achieve this changing leadership need, the role of Chief Financial Officer (CFO) is crucial. CFOs can assist their CEOs and Board members with strategic decisions on budget, financial health analysis and estimation. The role of CFOs in NFP associations are expected to go beyond accounting or numbers. CFOs provide significant directional support to their associations. However, resource constraints often make it difficult for NFP associations to afford experienced CFOs on their Boards. The consequences are less effective decisions, poor financial management, and even fraud. Not having a full-time CFO is not a roadblock for NFP associations because there is a solution to help you. At Tailored Accounts, we could become your CFO to give advice and recommendations on your association’s financial situation. If you are the decision maker of your NFP association, feel free to contact us for our CFO program.

Fuzuki Nishimura is the Cheif Technical Officer at Tailored Accounts “The Accounts Department of Small and Medium Business” www.tailoredaccounts.com.au

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BUSINESS LAW

CASH FLOW SOLUTIONS by Mark Love

20,000 complaints – but is the customer always right?

Five common business hurdles

On 3 January 2017 the ACCC released statistics that more than 20,000 shoppers complained about ‘consumer guarantees’ in 2016. With Christmas presents now unwrapped and gift cards spent during the stocktake sales, if a good is faulty what obligations do businesses face? The Australian Consumer Law imposes non-excludable consumer guarantees on the sale of goods and the provision of services; these are in addition to any express warranties a business might give separately. Essentially goods need to be safe, free ...be clear about what your from defects and do everything that products can or can’t do, they are commonly used for. This applies even if they are discounted or train your staff about what second-hand goods. Where there is a breach of the consumer guarantees, representations they can make businesses are liable to repair the goods, replace the goods with goods about your products and don’t of an identical type or refund any try to be ‘tricky’ about refunds – money paid by the consumer. But faulty goods are not always it will only lead to complaints at the business’ problem. Manufacturers best and possibly a law suit and are subject to their own set of guarantees and this article doesn’t potential reputational damage. contemplate inherent defects which may not manifest for some time due to a faulty design (those are tales for another day). A business has rights to defend its goods and may not be liable in certain circumstances. Consumers may not be entitled to a remedy if: • the business warned the consumer that a good had a particular defect and the customer purchased it anyway; or • the consumer used the good for an unusual purpose (not one that the good is commonly used for) and either they didn’t alert the business to their intended use, or they did but the business advised it would not fulfil that particular purpose; or • the consumer tries to return the goods after an unreasonable amount of time after the failure became apparent. Businesses should be on the front foot when it comes to consumer guarantees – be clear about what your products can or can’t do, train your staff about what representations they can make about your products and don’t try to be ‘tricky’ about refunds – it will only lead to complaints at best and possibly a law suit and potential reputational damage. Notwithstanding the large number of complaints, common sense should really prevail. Consumer guarantees are there to protect consumers from being manipulated into thinking they have no rights; but businesses do have defences to claims where they have done the right thing. So is the customer always right? Customarily yes but each case turns on its facts. Knowing what rights your business has is a good start; managing your customer relationship is even better.

Mark Love, Legal Director, Business Law 9th Floor, Canberra House, 40 Marcus Clarke Street, Canberra ACT 2601 E: mark.love@ballawyers.com.au T: 02 6274 0810 | www.ballawyers.com.au

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by Jane Lombard

Owning a business takes a huge amount of energy and drive; growing a business takes even more. We work with many businesses across a variety of industries and time and time again, five key challenges crop up: Overexposure… Keeping client business at a safe percentage of total revenue is a challenge for many businesses. Developing a healthy number of regular customers is the foundation for long-term growth and stability, but it certainly can seem elusive when all of your time is devoted to the select few. But the cold hard fact is that when any one client becomes the source of 30 per cent or more of revenue, the risk of financial instability emerges. To avoid this problem, it’s essential to find the time and ways to continually market and bring in new business. Good old cash flow… Cash flow is the lifeblood of any business, but unfortunately, it’s not quite as simple as sending an invoice and having it paid at the end of the month. It’s a challenge that all too often can be the make or break a business. Companies that have accelerated their receivables, streamlined their banking and established efficient payment terms and processes are in a much better position to offer a competitive edge and kick into growth mode. That means setting terms that support your business and formalising these arrangements. The productivity toll... Cash flow is the lifeblood of any Stress is unavoidable, particularly business owners. While it can be a business, but unfortunately, it’s great motivator, too much over time can take a real toll on productivity. not quite as simple as sending Business owners carry a much heavier an invoice and having it paid burden than the average employee, but finding a work/life balance at the end of the month. that keeps the business humming is essential. It’s one of those things you have to force yourself to do – create habits that give you time out; rejuvenate the energy stores; and provide the opportunity for perspective. Growth versus quality... You’ve worked hard and have set the expectation for your clients. But when taking on resources to grow, some common hurdles that make striking the growth v quality balance tricky, are: (1) difficulty letting go of the reigns, (2) a lack of critical processes to manage a growing team or extra resources, and (3) cash flow pressure from additional operating costs. The trick is to stand back and work out the best route bit-by-bit. Getting into the detail and process mapping the specific deliverables of new resources helps determine exactly what will support business growth in manageable stages without risking quality and stressing cash flow. Me, myself and I... It sounds simple – just give more control and responsibility to employees or partners. But let’s be real here – a business is not just a tax number and services; real emotional connection and protection often characterises how a small business owner feels about what they have built. But the fact is, a business can’t tick over if its owner’s out of action, and controlling everything limits ability and freedom to innovate and expand. It’s a tricky balance but a challenge that simply has to be overcome. P 0408 226 841 E jane.lombard@fifocapital.com PO Box 3269, Weston Creek ACT 2611

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INSOLVENCY

INTELLECTUAL PROPERTY by Tony Lane

A $23 million mistake! Take care with the PPSA The Personal Property Securities Act 2009 (PPSA) has been in force for a little over 5 years and cases still emerge where either a lack of understanding, or a lack of attention to detail, cost the owners of goods significant sums of money. In the recently reported case of Alleasing Pty Ltd v Onesteel Manufacturing Pty Ltd (Admins Apptd), the sorry tale of inattention was blamed for the loss of $23 million in leased equipment to the administrators of Onesteel. In that case, the Court found that where a party searching the Personal Property Securities Register (PPSR), under the Company’s ACN (the principal identifier required by the PPSA for search purposes), could not identify the registration, the registration was invalid as against Taking positive steps to secure an External Administrator. This case, and many similar, an interest in assets requires a highlight a real emerging issue of the PPSA, and one long identified methodical and careful approach by insolvency practitioners and litigators alike – the codification – something with which Alleasing of a once common law position is no doubt now well acquainted. brings not only unintended consequences, but quite intended However, not taking steps to secure ones adverse to the position of what would appear to be the now a position notionally held over the the old-law position of an ‘owner’. assets of another party, where such The imposition of statutory rules to ‘perfect’ a position steps are possible, would appear formerly arguable under equity or common law, entrenches risks to smack of commercial hubris. through both action and inaction. Taking positive steps to secure an interest in assets requires a methodical and careful approach – something with which Alleasing is no doubt now well acquainted. However, not taking steps to secure a position notionally held over the assets of another party, where such steps are possible, would appear to smack of commercial hubris. A recent example from this firm concerns a major shopping centre operator who, in seeking to engage a tenant, offered a contribution towards the fitout of said tenancy. The funds provided to the tenant for that purpose were governed under a document creatively titled ‘Fit-out Deed’. That document, amongst other things, sought to secure the interests of the operator over assets of the tenant, in the event of early vacation or default. Critically and in my view predictably, the arrangement fell subject to the operation of the PPSA and, to be effective in the event of insolvency, required registration on the PPSR. This last step was overlooked (or considered unnecessary) by the operator, ultimately to their detriment as the liquidator was able to take significant parts of the fitout free of any claim by the operator. Take care with the PPSA!

Tony Lane is a Registered Liquidator at Vincents. For more information, contact Vincents on (02) 6274 3402 www.vincents.com.au

by Shaun Creighton

Trade Mark Examiner Adverse Reports – not necessarily fatal to your application After a trade mark application is filed it is examined by a Trade Mark Examiner. All trade mark applicants hope to get a “clear” Examination Report. This enables the application to be advertised as accepted. However, many applicants receive an Examiner’s “adverse report”, leaving some to think the application is “dead in the water” (not automatically true) and others wondering what to do next. The first thing to remember is that it may be possible to make ...it may be possible to submissions to IP Australia to overcome the Examiner’s adverse make submissions to IP report. Before submissions, Australia to overcome the applicants often choose to have a review carried out by trade mark Examiner’s adverse report. attorneys or lawyers specialising in trade mark law. If there are reasonable prospects, the applicant may instruct the professionals to draft and file submissions. The content of submissions varies depending on the objections raised by an Examiner in the adverse report. So, what objections might an Examiner raise? Objections often stem from section 41 and/or 44 of the Trade Marks Act 1995 (Cth) (TMA): Typical objection - lack of distinctiveness (s41, TMA): Here, the Examiner assesses that the mark is incapable of distinguishing the applicant’s goods/services from those of other traders (for example, attempting to register the word BIKE for bicycles). For a s41 objection, suitable submissions generally include: • legal submissions relating to the extent to which the trade mark is inherently adapted to distinguish the designated goods/services; • evidence in the form of statutory declarations attesting to the use (and depending on facts, the intended use) of the trade mark by the applicant; and • legal submissions relating to any other relevant circumstances. Typical objection - conflict with certain pre-existing marks (s44, TMA): Here, the Examiner assesses that the mark is substantially identical or deceptively similar to an earlier registered mark (or application) and registered (or applied for) in respect of similar or closely related goods/ services. For a s44 objection, suitable submissions generally include: • legal submissions that the marks in question are not substantially identical or deceptively similar and/or there are no conflicting goods / services; and/or • legal submissions and associated evidence to show prior user or honest concurrent use; and/or • enclosing a letter of consent from the proprietor(s) of the conflicting mark(s). Moulis Legal’s specialist intellectual property lawyers can assist in overcoming Examiner adverse reports, or with other legal requirements relating to intellectual property, business, property or international trade. For more information, please contact our intellectual property Partner, Shaun Creighton, on 02 6163 1000 or email shaun.creighton@moulislegal.com

Contact Shaun Creighton on 02 6163 1000 or shaun.creighton@moulislegal.com to discuss how we can assist with your trade mark and legal requirements.

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RECRUITMENT

STRATA MANAGEMENT by Jim Roy

Avoid a fail grade: integrated temporary employees make powerful brand advocates

by Chris Miller

Special Levy or Strata Finance? the answer is not always straight forward

The rapid rise in the use of temporary and contract assignments has seen a blended workforce become the norm in many industries and sectors. But the success or failure of this arrangement often comes down to how well temporary and contract employees are integrated into a team. The very nature of this form of employment means To integrate your next temporary that temporary and contract employees can quickly – and or contract employee, we suggest often with short notice – be brought into an organisation to you start by making sure they are perform specific and or high-skill tasks. The flexible nature of these aware of your organisation’s values assignments ensures they can be and way of working. Provide an released quickly too. While this process is fast induction so they know where to and easy, employers do have find the information necessary an important role to play in integrating a temporary or to perform their assignment. contract employee. Why is this important? Firstly, your temporary and contract employees will be more engaged and productive. Secondly, sites such as Glassdoor and SEEK’s Company Reviews mean there’s a huge employment brand risk if you don’t look after them. After all these sites provide any employee – not only your permanent staff – with an outlet to make their voice heard if their experience working for your organisation is not positive. To integrate your next temporary or contract employee, we suggest you start by making sure they are aware of your organisation’s values and way of working. Provide an induction so they know where to find the information necessary to perform their assignment. Let them know how and when to communicate with you. It also helps to give them the context of the tasks you need them to perform so they understand the bigger picture. Introduce them to others in the team and explain each team member’s role and responsibilities. Make sure other employees – especially those in the team your temporary or contractor will be working within – are aware of their reason for being there. You may also need to educate team members about a temporary or contractor’s hourly rate. Yes it may be a higher rate than what a permanent salary equates to on an hourly basis, however they do not receive paid annual, sick, carer or parental leave. They do not receive benefits. And tax has not been deducted from the hourly rate. It’s also important to make these employees feel part of the business, so include them in any team social activities or training sessions and interact with them in exactly the same way as your permanent staff. Finally, temporary and contract employees must know what is expected of them to be considered successful. Regular feedback sessions will help while at the same time keeping productivity and engagement high. To discuss your temporary recruitment needs, please contact me.

“Cash is King” is an expression I have often thrown around in relation to property matters. No doubt I picked it up from an early mentor of mine who also fancied the mantra. However catchy a line it may be, the principal behind it is by no means universal. When it comes to funding major works within a strata building, such as repainting or lift replacement, it is worth scrutinising the numbers carefully to determine if cash is in fact king, or if another option may be more appropriate. Strata Finance is emerging as a serious business. Whereas 5 – 10 years ago it was pretty well unheard of for an Owners Corporation to take out a loan, these days it is becoming much more commonplace. It is fair to say that a degree of suspicion still exists among owners, and there is a certain stigma about purchasing into a strata building which is carrying significant debt. However, as more time passes I would be willing to bet that eventually the market will simply accept this feature as par for the course. If you are inclined to look into it as I have, you will find that once you get past the superficial perception issues, there are actually a number of strong economic arguments in favour of using finance to fund projects for an Owners Corporation if it does not already have the cash at hand. Say an Owners Corporation is faced with the need to replace a lift that has reached the end of its life. There are 100 units in the complex and the works will cost $750K. The options are either raise a special levy of $7,500 per unit (average) or obtain funding through a strata finance lender. The second option will cost more in terms of raw numbers, as there will be interest applied to the principal until it has been repaid, usually between 5-10 years. However, consider some of the other secondary cost factors that may not be immediately obvious, such as; • Many owners simply will not have $7,500 to come up with at short notice even if they want to. There may be a lag of many months or even longer; • A building without a working lift may require discounted market rent. Weekly rent discounted to say $5 - $10pw at 6 months assuming half the units are rented could be as much as $26,000 in lost rent for investors • Delays in having the work done may impact on unit values. Even a small impact per unit would equate to a significant value across all units in principal • Interest applied to a loan would be an administration fund expense, which may be tax deductable for investor owners. In that case the tax discount should be considered as part of the equation Whether or not borrowing money makes the most sense in the circumstances is not entirely the point. What is clear is that owners should consider the merits of alternative funding solutions before ruling it out – in the long run it may well pay off to do so.

Jim Roy, Regional Director of Hays in Canberra A Level 11, 60 Marcus Clarke Street, Canberra D 02 6112 7663 | E jim.roy@hays.com.au

For further information, please contact Chris Miller, Managing Director M 0400 376 208 or 1800 878 728 The Griffin, Corner Giles & Jardine Streets, Kingston PO Box 4259, Kingston ACT 2604.

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THINK RESULTS

WEBSITES

by Darleen Barton

Mediation – Keep the decisions in your court Have you ever heard there are two (2) sides to any story? Metaphor: When you board a plane from Sydney to New York, the pilot knows his/her destination point and the route to get there. Over the course of the flight the plane will endure many environmental influences along the way e.g.: wind, rain, other aircrafts, restless passengers etc… the plane will be off course 70% of the time. However it is the skills of the pilot that will repeatedly bring the plane back on course, keeping the passengers safe and landing at their destination. Mediation is like the plane and the skills of the pilot, we discover the destination and we work towards learning the skills to navigate through life’s environmental challenges safely arriving at many locations along life’s path. We work with our clients in an attempt to settle disputes through the active participation of a third party a (mediator). We work to find points of agreement and help those in conflict to agree on a fair result. Mediation differs from arbitration in which the third party (arbitrator) acts much like a judge but in an out-of-court; less formal setting We work to find points of but does not actively participate in the discussion. agreement and help those in Mediation has become very conflict to agree on a fair result. common in trying to resolve domestic relations disputes (divorce, child custody, visitation), and is often ordered by the judge in such cases. Mediation also has become more frequent in contract and civil damage cases. The financial cost is less than fighting the matter out in court and may achieve early settlement and an end to anxiety. However, mediation does not always result in a settlement. The key to mediation is approach dialogue with an open mind to a resolution. Here is a brief outline of what to expect at a mediation conferenceCorporate/Family/Civil/ Business etc. : The mediator sets out a clearly defined plan, this is a path to help keep everyone moving in the same direction. In most circumstances the plan would look a bit like this: “the Problem” “the people involved” “the mediator and their role” “a goal for all parties to accomplish” we would discuss in the plan “options” “possible variables” “the history of the issue” “proposed timing” “issues and a possible resolution” We know when two parties are in dis agreeance there may be behavioural issues that may prove to be counterproductive. In the mediator's plan, he/she will set out the “expected behavioural style” in my mediation meetings I call it maintaining “above the line” behaviours. Once the plan and rules have been outlined and agreed to, the mediator will have a set of questions to start the dialogue between the parties. It is not uncommon for parties to take short breaks during mediation, as a matter a fact I encourage some cooling off and reflection time. I will help you along the way.

Darleen Barton - Practitioner Accredited- ANMS -AMA Mediator Ochre Medical Centre 15 Whitrod Ave, Casey ACT 2913 Ph: (02) 61634200 www.dipac.com.au

by Sam Gupta

Speed kills the bottom line Yes, speed kills - the difference is that it’s the other way around for the websites. A slow loading website is most likely reducing your conversion rate, hampering your search engine ranking and in essence affecting your business revenue and bottom line. In this article, let's talk about the need for Page load time is one of the major speed in the digital world. 1. Why is speed important? In factors in page abandonment. The today's fast paced world, people just don’t like waiting for the longer the page time, the higher website to load. This is specially applicable on the mobile devices. the bounce rate is likely to be. When it comes to user experience This will also turn into less average (UX), speed becomes one of the most important factors. When was time spent on the website. So with the last time you waited patiently for someone else's website to load? lower speed, comes less customers, Page load time is one of the major factors in page abandonment. The less average time spent on site and longer the page time, the higher less conversions. Need I say more? the bounce rate is likely to be. This will also turn into less average time spent on the website. So with lower speed, comes less customers, less average time spent on site and less conversions. Need I say more? 2. What affect does it have on SEO? Although, speed optimisation is only one of the factors affecting your ranking, I believe it’s an important one. Google, towards the end of last year, started using it's mobile search engine as the primary index. For mobile devices, speed is very important due to the limitation of mobile network and device processing power. Now, Google's primary index will most likely dictate the secondary/ desktop search results. This means, speed will become one of the most important ranking factors in the near future (if it's not already the case). 3. How to optimise your website for speed? This is a topic by itself. I don't want to get too technical on this. I will give you three tips that you can take to your web developers to help you optimise your website for speed. • Use Gzip compression to reduce the size of your webpage elements. • Make sure your website images are optimised for web to reduce the size of your webpage. • Where possible, use browser cache to carry the load of your webpage. (Please note, this may not suit every website. Discuss the pros and cons with your web developer first.) In essence, what I am trying to say is; in short term speed may not be the most important factor in search engine ranking, but in long run, it could potentially become one of the most factors. Regardless of this, it can still affect your conversion rate and eventually affect the overall bottom line. The solution is simple. Keep your website light and fast.

Sam Gupta is the managing director of Synapse Worldwide. Sam would love to hear your thoughts on this advice column. Tel: 1300 785 230 Email: admin@synapseworldwide.com Web: www.synapseworldwide.com

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A2B

A S S O C I AT I O N S T O B U S I N E S S

Photo: Andrew Sikorski

Water, water everywhere – but how do we charge for it?

Robyn Hendry CEO Canberra Business Chamber

ignificant investment by the ACT Government has secured the ACT’s water supply to such an extent that it is unlikely the Territory will need to implement high level water restrictions in the foreseeable future, even in years of drought. The new Cotter Dam wall has increased holding capacity of the reservoir from 4GL to 79.4GL. However, many Canberrans lived through the Millenium Drought, which lasted over a decade before ending in 2010. This drought is believed to be one of the worst ever recorded and it subsequently brought water supply to the forefront of the public consciousness.

...no single tariff structure can incentivise efficiencies for residential users and protect large commercial users from excessive costs. These two imperatives require opposite pricing structures. 26

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In the ACT, people and businesses learned new habits to reduce water use and invested in their own water storage equipment in order to do their bit. Despite the end of the Millenium Drought in 2010, there has been no clear bounce back in per capita water consumption. The Independent Competition and Regulatory Commission (the ICRC) recently issued a draft Tariff Review as the basis for determining the prices that Icon Water (ICON) will be able to charge in the ACT for its water and sewerage services. This document outlined the current water tariff structure and proposed changes for the ACT. On behalf of business, the Chamber made a submission to the Tariff Review. The current structure in the ACT has a low basic supply charge, and then two levels of quantity charge. The lower charges apply to the basic quantity of water an average household consumes, then additional water above this volume costs a higher rate. This structure excessively penalises large commercial users, when the intent is to provide an incentive for efficiencies by domestic water uses. This has resulted in large users moving to off-network water supply options (e.g. recycling, individual water extraction and water storage) to reduce their costs, leading to reduced demand for water. High basic utility costs represent an opportunity cost in business investment that could otherwise be redirected to target business growth and increased employment. For small and medium businesses with high water needs that cannot move to off-network options, this imposes an unreasonable cost which reduces national and international competitiveness. B2B M AGA Z I N E.CO M . AU

The Review proposed a new structure that would increase costs to smaller water users and reduce costs for larger users. Like the current structure, commercial and residential water use would all be charged through a uniform tariff arrangement. The Chamber argued that no single tariff structure can incentivise efficiencies for residential users and protect large commercial users from excessive costs. These two imperatives require opposite pricing structures. Therefore, it proposed that non-residential and residential tariffs be treated separately and that draft tariff structures be developed that: 1. For residential users keep fixed supply costs low, but provide price-based incentives to ensure water use efficiencies are maintained. 2. For large volume nonresidential users provide discounts that ensure they remain significant users of ICON water infrastructure. These discounts reflect the importance of these customers to supporting the ongoing maintenance and development of infrastructure. 3. Note that in the ACT a very large proportion of businesses are small to medium in size and therefore there is a

need to balance low usage charges with reasonable supply charges. 4. More complex scarcitybased pricing measures could be implemented for both residential and non-residential users to generate flexibility to gather greater revenue when water scarcity increases costs in supply, and where efficiencies for all users are desirable to protect water security. For example, when water storages drop below a pre-determined threshold, a multiplier could be applied to water tariffs. To keep things simple, the Chamber suggested businesses operating from residential premises not be considered commercial and be exempted from these arrangements. Canberra Business Chamber called on the ICRC to develop a revised tariff structure recognising the different needs and drivers for commercial and residential users and go back out to the community for further consultation. The Chamber’s submission is available at www.canberrabusiness.com

Join us for Chief Minister Andrew Barr’s annual Canberra Business Chamber address. Thursday 6 April, lunch 12-2 pm, Hotel Realm. To register visit: www.canberrabusiness.com/events/ Contact the Canberra Business Chamber Team: Phone: 02 6247 4199 Email: info@canberrabusiness.com Web: www.canberrabusiness.com

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G2B

CHIEF MINISTER’S MESSAGE

ANDREW BARR Chief Minister | Treasurer Minister for Economic Development Minister for Tourism & Major Events

ecent global political events have This included starting to finalise the shown it is important governments route and costs associated with stage two of listen to their constituents and act the city-defining light rail network to keep on their wishes and concerns. Canberra moving. Construction of stage In the ACT, last October’s election one is well underway and on schedule for showed that Canberrans want a progressive completion in late 2018. and positive agenda. They also want a Businesses in Canberra have had a government that listens, that acts and one tough few years due to constant Federal that they can trust. Government job cuts but the ACT economy We are building on this result and getting is strong. The ACT Government will continue on with the job. The to reduce red tape Government I lead and expand the “Recent global will make Canberra services available political events have a better place for through our Access all Canberrans. Canberra brand. shown it is important Our strong We will also governments listen to economic help business their constituents and take advantage management during the past few years of our booming act on their wishes puts us in good international tourism and concerns.” shape. We have a sector. There was an low unemployment 11.2 per cent rise in rate of 3.7 per cent and business confidence international visitors in the year to September is robust. The January CommSec State of the 2016 and this brings many opportunities for States report shows housing finance, retail Canberra businesses. trade and population growth are all aiding a Construction activity has been strong well-performing economy. at ACT public schools as we deliver extra As a result, our first 100 days in upgrades to schools and colleges and we are government we were able to confidently fund working on boosting the number of women key promises and work on delivering major in trades, with funding to be increased to help infrastructure projects. women take up a trade and to re-skill.

“We have a low unemployment rate of 3.7 per cent and business confidence is robust. The January CommSec State of the States report shows housing finance, retail trade and population growth are all aiding a wellperforming economy.” 28

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“Canberrans also want to trust their government so we have started the work needed to decide on the role of an ACT Integrity Commissioner. This essential work will be led by a Select Committee in the ACT Legislative Assembly.” Canberrans also want to trust their government so we have started the work needed to decide on the role of an ACT Integrity Commissioner. This essential work will be led by a Select Committee in the ACT Legislative Assembly. It’s important the ACT continues to be a nation-leading economy and world-leading liveable city. The election has reaffirmed our city’s positive and progressive nature and I look forward to continuing this over the coming years.

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