B2B Magazine Issue 128 July 2017

COVER STORY

Why good

AICD

Signature Strata putting integrity first

Innovative ways to win the war for talent HorizonOne (p.8)

Don't just buy impressions - make an impression Sam Gupta from Synapse Worldwide explains how

(p.15) (p.10) (p.26)

governance is important to the public sector

COVER STORY

Why good governance is important to the public sector

PUBLISHER'S NOTE

5 B2B Magazine and RiotACT by Tim Benson

SMART BUSINESS TIPS 5 Record keeping tips for the new financial year by Smart Business Guardian

UPFRONT 6 Protecting the property pool – the family law toolkit by DDCS Lawyers 6 Meeting rules for strata community complexes by Strata Community Australia

FEATURE 8 Australian businesses must think innovatively to win the war for talent by HorizonOne 10 Signature Strata – putting integrity first by Tim Benson 12 The future of work is flexible by Callida Consulting

ADVICE 21 BOOKKEEPING

End of Financial Year preparation: Magical touch on your books! by Tailored Accounts 22 BUSINESS LAW

Joining the crowd – Crowd Sourced Equity comes to Australia by Bradly Allen Love Lawyers

22 CASH FLOW SOLUTIONS

Supply Chain Funding a game changer for suppliers by Fifo Capital

23

CYBER SECURITY

Cyber Security implications of IoT devices by Cordelta 23 INSOLVENCY

Tackling trusts by Vincents 24 INTELLECTUAL PROPERTY

Legal issues to consider when starting a business by Moulis Legal 24 RECRUITMENT

Digital disruption could be good for older workers by HAYS - Recruiting experts worldwide 26 STRATA MANAGEMENT Follow the money by Vantage Strata 26 WEBSITES

Don't just buy impressions - make an impression! by Synapse Worldwide

A2B: ASSOCIATIONS TO BUSINESS 28 Must be innovative to drive innovation

G2B: GOVERNMENT TO BUSINESS 30 Delivering for a better Canberra

BUSINESS NETWORKING 32 B2B @ CAPO launch 32 B2B @ Brumbies game

ISSN 1833-8232

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

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EDITORIAL ASSISTANT Termeh Garmestani termeh@b2bmagazine.com.au 02 6112 8176

DESIGN Kasra Yousefi kasra.com.au 02 61128195

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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Photography: Kasra Yousefi

B2B Magazine and RiotACT

Ihave been pondering the future of B2B Magazine and my next major step for the past year and I am proud to announce that we have decided to join forces with the new RiotACT to bring the next big thing to the Canberra region - Digital Regional News.

While there are loads of exciting announcements yet to come, B2B Magazine will be incorporated in the combined platform within the business category.

I would like to thank all of the people I have worked closely with over the last 10 years building the quality publication with a great reputation that B2B Magazine is known as today. Not the least of which, thank you to our valued readers, team members, suppliers, fabulous clients and of course my wife and daughter. Together I believe we have served the Canberra business community well.

I am really looking forward to joining the RiotACT team as a Business Development Manager and continuing to provide the same level of service to the Canberra business community from this exciting combined digital platform.

RiotACT owners, Michael McGoogan and Tim White, are well known to the Canberra business community. Their reputation and success with companies, such as Allhomes and Uber Global, speak for themselves. Their vision to revolutionise digital regional news is intoxicating and I am very passionate about this next stage of B2B Magazine. In business, you need to continue to make decisions and move forward. This is without doubt the best decision I could make for the magazine and my family.

I invite all of my current, and past clients, to get on board and take this journey with me. I also encourage the 26,000 Canberra business owners, no matter how large or small, to continue to support B2B Magazine as we transition to RiotACT. This is the beginning of something new and exciting. Hold on tight. It’s going to be one hell of a ride.

I will be in contact personally with all of our existing clients over the coming weeks. Thank you for your support.

Watch this space…

Tim Benson, Publisher

Send all comments to: editorial@b2bmagazine.com.au

Record keeping tips for the new financial year

Kristin Miller General Manager Smart Business Guardian

It's a chance for a fresh start again. We can embrace the opportunity to clear our desks, tidy out the filing cabinet, change our business structures and even get a new financial record keeping system in place. As part of this it may be the perfect time to also consider new systems or accounting packages and all their optional Add-Ons.

• Accounting Packages - All the major players have new and improved offerings with Cloud based options. Xero, MYOB and Quickbooks Online can really make a difference to providing real time information to your business and help with key functions such as invoicing, debtor management, payroll, bank feeds and reconciliations etc.

• Add Ons – Each of the above accounting packages also integrate with a range of other systems that can assist your business in targeted areas such as managing inventory, payments, CRM, time tracking, POS, payroll etc.

If you want some advice on what systems might work best for your business call us for a chat.

(02) 6162 1928

49 Phillip Avenue, Room C205, Watson, ACT 2602

smartbusinessguardian.com

I invite all of my current, and past clients, to get on board and take this journey with me. I also encourage the 26,000 Canberra business owners, no matter how large or small, to continue to support B2B Magazine as we transition to RiotACT.

Protecting the property pool – the family law toolkit

By Emily Tighe

The time it takes for a property settlement to be determined by the Court is significant. We often advise our clients that it can take 12, 18 and even up to 24 months to reach an outcome. Of course, life goes on after separation and finances are fluid. On one end of the spectrum, there is no halting everyday living expenses. At the other end of the spectrum, there can be the deliberate altering of corporate structures, the sale or transfer of real estate by one party without the other party’s consent and the withdrawal and diminishing of superannuation. Family lawyers have a “toolkit” available to them to protect their client’s property interests, and to ensure that the pool at the time of Trial is as ‘intact’ as it possibly can be. Two important tools include: • Injunctions. An injunction is a court order preventing someone from doing something. If there is a real risk that an asset will be dissipated, sold or transferred by the party who has control of it, the Court will act to prevent that from happening. In some circumstances, the Court can

even make orders which bind third parties (or which bind the couple in order to protect a third party’s interest in the property), including creditors.

• Setting aside transactions: While injunctions are preventative, the Court’s power to set aside transactions is curative. The Court has the power to set aside transaction which would otherwise defeat a family law claim (for example the sale or transfer of a property).

The Court can reverse a transfer, or can order that certain funds or property be returned. Even if the transaction itself cannot be reversed, the Court will credit the person with the property they removed because of the furtive transaction. This means it will be “added back” to the pool under that person’s name, and their share of the remaining property will be reduced accordingly. Simply put, the law tries to remove any advantage that a party may gain by inappropriately dealing with property after separation. The two tools above are powerful and complex creatures of the Family Law Act , and protecting the property pool

requires specialised family law advice. DDCS Lawyers routinely advise their clients on these questions, and help their clients assess and reassess their financial landscape during litigation so that they remain in the best possible position before the Court.

Emily Tighe is a Lawyer at DDCS

18 Kendall Lane, New Acton, Canberra phone (02) 6212 7600 mail@ddcslawyers.com.au www.ddcslawyers.com.au

Meeting rules for strata community complexes

By Sally Shaw

One of the primary roles of a Strata Manager is facilitating the meetings of an Owners Corporation, a role that includes maintaining order, focus on the agenda, and ensuring that each participant has an equal opportunity to have their voice heard. Successfully leading a meeting is a skill actively developed by a successful Strata Manager through experience and ongoing training.

Formal meeting procedure is founded on Parliamentary process, with significant reference to Joske’s Law and procedure at meetings. Setting rules and relaying this methodology enables members at the meeting to be aware of what is expected and how they should behave.

• respect authority of the chair at all times -any member wishing to speak must direct this through the chair -only matters noted on the agenda can be discussed. No floor motions can be tabled unless they are non-substantive, only procedural

• if an amendment is carried, the original motion must be put

• if amendment is unsuccessful , the original motion must be put

• amendment must be in the positive

• voting must be by voices, proxy, show of hands or by poll (a poll must be called prior to the vote being taken on the motion)

serve the best interests of the community under guidance from their Strata Manager, regardless of personal interests. Strata Community Association (ACT) presents a number of courses annually to assist its’

• a speaker must not digress from the subject

• the chairperson can direct the discussion to stop if considered unproductive or inappropriate

• no other member can speak until the motion or amendment has been seconded

• only the proposer can speak more than once during a debate

• chair can call for speakers for & against ,to talk alternatively

• if a member calls 'point of order' the motion must be put

• an entitled member can move the meeting be adjourned if unproductive Ultimately, members must strive to

members in developing the skills required to successfully facilitate owners corporation meetings. For further information, and to check whether your Strata Manager is a member of the SCA, please visit our website www.strata.community.

Sally Shaw Strata Community Association (ACT) www.strata.community

Photo: Tim Benson

Ultimately, members must strive to serve the best interests of the community under guidance from their Strata Manager, regardless of personal interests.

Australian businesses must think innovatively to win the war for talent

By Simon Cox

Recently we commenced advertising for several recruitment consultants with the aim of attracting high performers to our firm in Canberra. Included in our advertising is the offer to enjoy a six week paid holiday to new hires before starting in the job. The idea reeks of a gimmick, doesn’t it?

In today’s job market, the list of catchy perks being offered by businesses seems to go on, and get progressively more ridiculous. In-house baristas, treadmill meeting rooms, personal chefs and meditation rooms are just a few of the recently advertised ‘extras’ used to try and catch potential employee’s eyes. But do “perks” make a meaningful difference to attracting star performers? Do top people really move jobs for better perks? Well, not really, but they do serve a purpose.

Talented recruitment consultants are incredibly hard to come by. In fact, our industry is in many ways a classical case study for industry sectors that experience extreme challenges when attracting high performers. HorizonOne’s story will sound very familiar to many companies out there, especially those that demand highly-specialised skill sets, and recruit to high standards. This has led to our significant investment in Employer Brand, and we believe our story serves as an analogy for the problems more employers will inevitably face in the future.

What is employer branding

In 1997, Steve Hankin and his team at global consulting leaders McKinsey and Company predicted the success of companies will rely on how well they compete in a ‘war for talent’. They predicted employers would need unique and progressive profiles, or ‘Employer Brands’. The underlying assumption is that for knowledge intensive industries, there is an increasingly competitive landscape to recruit and retain the very best. That ultimately, it is talent in your organisation that drives your success.

Fast forward to today, and Employer Branding is a huge area for business

investment where companies of all sizes compete for the best people in candidate or skill-short markets. Employer Branding and budgets to attract talent are growing.

• 79% of Managers/Leaders consider talent attraction as the major priority for their business (LinkedIn, 2017)

• Over 57% of Australian recruitment leaders would invest more in Employer Branding if given more budget leeway (LinkedIn, 2017)

• Over 66% of recruitment leaders consider talent shortages in the top

three challenges their business faces (BullHorn, 2017)

Investment in Employer Brand is also yielding results:

• Employers with strong Employer Branding see a 43% decrease in cost per hire (LinkedIn, 2015)

• Employer Branding can increase your stock prices by 36%. (Lippincott via LinkedIn, v2013)

Your Employer Brand can’t be manufactured. It needs to be genuine, and portray the culture, values and benefits that speak to the

exact kind of person you want to attract.

We decided to examine businesses like ours with more advanced Employer Brands and much bigger budgets. Global consulting firms are leaders in the war for talent. The efforts by firms like PWC or Deloitte in employer branding and talent attraction are market leading.

Companies must identify what high performing employees really value. They need to think deeply, and really understand who their target people are – inhabit who they are, understand how they behave, and zero in on Employer Branding to pinpoint their motivators.

We wanted to see what approach would deliver success for a small to medium-sized business based in a regional city that is experiencing a major skills shortage.

So, six weeks paid holiday is employer branding?

Well, kind of.

By far the toughest recruitment assignments we undertake are for ourselves. Despite the Australian recruitment industry growing and evolving rapidly from a standing start about 50 years ago, recruitment firms really struggle to attract new employees. Currently, there are as many as 10,000 advertised positions for recruiters in Australia. Things are getting harder, with the abolition of the 457 Visa and the inclusion of recruitment and HR advisers on the removal list. This poses a problem for the Canberra market as it takes, on average, nine months to recruit a high performing consultant . This is one of the reasons why we are sourcing talented and experienced consultants from outside of Canberra.

We’ve got an established Employer Brand, having invested in continuously sharing who

we are with the market. We have invested time, money and energy into making it easier to understand who we are, what we do and what we stand for. We also offer employees a host of benefits, which are appealing to high performers. But we still don’t attract enough talented people to our growing Canberra business.

Canberra struggles to compete with the “sexier” cities such as Sydney and Melbourne. A lot of high performers focus their attention where they believe the biggest markets are. But Canberra shouldn’t be low on the corporate recruiter’s agenda. We have:

• the lowest unemployment rate in Australia – 3.7%

• Consistently ranks as having the highest levels of candidate shortages in Australia for large recruitment markets such as ICT (#1) and Finance (#2)

• in a number of ways, a ‘softer’ market for competition

Six weeks holiday cuts through the noise

The big challenge for us is that successful recruitment consultants are usually in wellpaid, secure jobs where they are highly valued and exceptionally busy.

My Co-Director David Harrington knows how big a relocation can be, having moved his young family from London to Canberra a few years ago.

We understand that finding the time to even contemplate such a move can be challenging and often falls into the ‘too hard’ basket.

Naturally, the idea of a six week paid holiday will capture people’s attention because it seems counterintuitive. A holiday for someone that has not earned it yet? That’s mental! But it should also appeal to those

experienced consultants that are yearning for something different – those that want to escape the race of congested CBD living, and that welcome the opportunity for a better, more affordable and healthier lifestyle.

The six week paid holiday is about creating a good headspace. Space to allow the idea of change to grow a little. We believe once given even this small chance, the idea of a successful recruitment career in Canberra is incredibly appealing. Once we’ve peaked interest and cut through the noise, we can engage with top candidates in a more meaningful and personal way.

Successful talent attraction is not about throwing gimmicks at people. It’s about coming up with innovative ways to get the attention of high performers, and then attracting them to engage with your business in a meaningful way.

We make our living helping our clients hire unique talent. Our job is to think laterally and creatively to solve challenging recruitment problems in markets where talent is incredibly scarce.

It was about time that we got serious about our own challenges attracting top talent. We are sick of being the plumbers with the leaky taps, so we are getting proactive about finding the best people.

So, is it about time your organisation got serious about your Employer Brand?

Sourcing talent is a science, not a sales game

Please contact Simon Cox at HorizonOne Recruitment on 02 6108 4878 or simon@horizonone.com.au Level 1, 27 Torrens Street, Braddon www.horizonone.com.au

Naturally, the idea of a six week paid holiday will capture people’s attention because it seems counterintuitive. A holiday for someone that has not earned it yet? That’s mental!

Signature Strata – putting integrity first

By Tim Benson

Signature Strata is the brainchild of partners Nina Cannell, General Manager and Leisa Newman, Business Manager.

The initial chat about Nina's future plans after her last tenure of 12+ years (18+ years in total) happened in the school yard. Leisa had hoped to coax her into a new role, essentially a side-step from strata management. "It actually all happened at lightening speed. We made the decision that continuing with Nina's strength in strata would be the most sensible approach for our future together in business,” Leisa said.

Leisa and Nina had some very exhaustive and in-depth meetings to set up their business plan; mapping out a vision of their ideal client, the service they would deliver and the ideal team who would meet market expectations now and into the future.

With this idealistic vision set hard and fast on paper, Nina's team of old were keen to join the new business venture. So Nina and Leisa, together with Calli Fenwick and Deb McCarthy set-up office in March.

Both Nina and Leisa agree that “market expectations have changed. Strata is no longer the 'little sister' of real estate. Clients seek professional services not too dissimilar to that of an accountant or bank manager. Often time poor themselves and being responsible for the financial and facilities management of their strata communities they need to have issues addressed efficiently, effectively and professionally.” Nina said.

Leisa said "that strata is appearing more in the media, and growth (locally) can be attributed to the types of developments being constructed to meet demand. We

have brought together a skilled team who can deal with mixed use developments and multipurpose units, not just the simple block of townhouses or standard units that may have a common carpark and grounds” She went on to explain.

Nina says that "Signature Strata will focus on the ACT. We don't plan on stepping outside the border. We want to be renowned for meeting the expectations of Canberrans; developers and established owners corporations alike, accomodating the needs of mixed scheme developments as well as community title developments who may just need assurance that what they are doing meets legal obligations".

“What you see is what you get at Signature Strata. You aren’t getting a franchise, you are getting local people with local knowledge and experiences,” Nina said.

Leisa believes "that Canberra should be viewed somewhat differently to other capital cities because we have the 'big city' scape, complimented by that homeliness of a much loved country town".

“We are fortunate in that we are in a position where we as a business get to focus on our ideal client". Leisa said they are being somewhat selective. They aren't taking on clients because they have to. They too do their research, essentially interviewing potential clients just like they expect clients to request Signature Strata tender for their business. Both need to do their due diligence to ensure a long-term sustainable partnership.

“Our team has a great reputation for providing trusted service to developers and established clients. We offer an all-inclusive service model which is value for money for

owners. Our team are responsive, passionate and knowledgeable. A pro-active approach is key to ensuring optimal management of a building” Nina said, “The business is taking off faster than anticipated for this reason. What we forecast to happen in 12 months has happened in three.”

Signature Strata now need to bring forward their infrastructure and recruitment plans. Leisa explains they are flexible enough to be driven by what the market is throwing at them. “From a recruitment perspective, we intend on growing the team with like-minded, skilled practitioners".

Nina said that strata is sitting at the edge of significant change, like residential real estate was in 2002. “The real estate industry in Canberra had predominantly unqualified and unregistered salespeople selling homes. Strata realises that it too needs to be more professional going forward, with recognised standards and qualifications to serve the needs of more complex clients,” Nina said. "Strata Community Australia is bringing in accredited training that will be great for our industry.”

If you hadn't already noticed, Signature Strata are throwing out the gender balance. The team are career focused women who have managed business and family responsibilities for many years in their respective fields.

But at the end of the working day the team at Signature Strata are focused on ensuring they deliver on their vision for the business -Trust Management. Unique Service. Quality Assured.

They are certainly off to a flying start.

Photography: Kasra Yousefi

Cannell, Partner and General Manager

Nina started in strata management back in 1999 in the heavily regulated state of NSW. First in Sydney and then in Wollongong. In 2004 Nina moved back to Canberra to be closer to her family.

Straight back into the strata industry as a strata manager for a few years, she moved up to manage the strata department and then on to establishing relationships within the new business arena of strata with her own team.

“After having my second child I transferred to new business development in strata

management and stayed there for a further seven years,” Nina outlined.

Nina says this experience working with developers was invaluable, giving her great insight into the needs of the industry.

“I like the diversity and the challenges that arise in strata management. You rarely come up against the same situation twice.”

“The team that we have built around us is really important. Our team have the skillsets and experience to really deliver for our clients,” Nina said proudly.

Newman, Partner and Business Manager

Leisa Newman returned to Canberra in 2000 after a number of years in Sydney where she ventured into a large residential real estate agency in Tuggeranong as the Business Coordinator until late 2004. That same year she moved on to becoming the General Manager of a second tier accounting firm.

In 2007 she started consulting to small business, predominantly focused on general business operations and HR/WHS. Real estate caught her attention again in 2009 where she became the Operations Manager for one of the top franchise networks in Canberra. “I went back to being a full time mum at the

Acquisitions

end of 2014 over the Christmas break and enjoyed my family very much, but after a while I needed to get back to business and started consulting again. Real estate once in your veins keeps you coming back, what more can I say,” Leisa explained.

She continued to consult to a couple of real estate agencies whilst also taking on a 9 month contract at a well-known insurance broking house, project managing their rebranding initiative and their expansion into Melbourne.

"I bring to Signature Strata the business side and Nina brings the strata side. We balance each other out very well."

Calli moved from the fast pace of hospitality the new business team that Nina was building upon where she predominantly looked after established owner’s corporations and also worked with developers during the initial setup of their new buildings.

Calli then became focused on working as a transition manager with these new developments to ensure service expectation were being met.

Becoming a mother last year has meant Calli has been able to take a well-earned (short) break and is very excited to be coming back to strata re-energised. “It is great returning to work to be part of such a talented and professional team. I am confident we will undoubtedly become a well-known company and brand in our exciting and ever-changing space in Canberra,” Calli stated.

Deb's career history has been knee deep in client-facing service based industries all of which have been an excellent foundation for her leap into strata administration.

Initially starting off as a strata assistant, her skills were a standout for Nina who brought Deb on board as a personal assistant to the new business team. Deb is not shy when it comes to the behind the scenes operations, software

02 6185 0347

info@signaturestrata.com.au signaturestrata.com.au 12/20 Curtin Place, Curtin ACT 2605

management and all things administration that help to drive the front-end of strata services.

After four years in the position Deb took a break late last year and she too is very eager to get back in the trenches and working with such a great team. "It's all about delivering high service standards to Canberra strata communities. We will exceed expectations I'm sure".

Leisa

Nina

Calli Fenwick, Executive Strata Manager and

Deborah McCarthy, Administration Coordinator

The future of work is flexible

and continuously improve when working with Callida, the people you’re working with are all experienced professionals who have been in the industry for a long time.”

Further, in a smaller environment, layers of workplace bureaucracy and process are lifted allowing us to be agile to meet our clients needs. This means a true meritocracy can operate, giving unprecedented career control.

Technological advances are transforming the way organisations do business and will ultimately reshape and re-define jobs, skills and workforce strategy.

At the World Economic Forum in Davos this year, a wide-ranging global insight report, ‘The Future of Jobs; Employment, Skills and Workforce Strategy for the Fourth Industrial Revolution’ was issued, outlining the way jobs will be impacted and the strategies that companies should adopt in order to be successful.

One of the key takeaways from the report around workforce strategy is to leverage flexible working arrangements, online talent platforms, ongoing training and embrace talent diversity.

At Callida Consulting, this is already part of our everyday ethos and an approach that is paying dividends. Our growing firm continues to attract market leaders in the consultancy world who value our workplace dynamics.

Flexible work structure, work-life balance, peer to peer learning and trust are our watchwords, and key factors in securing our newest Senior Principal Consultant, Jess Dalton.

Jess recently joined Callida as part of our Assurance and Risk team. She told us that three key factors stood out for her when considering a move to Callida.

Control your own destiny

First and foremost, Jess valued the ability to take control of her career trajectory at Callida. She knew that our consultants are all experienced in their field and that continuous learning opportunities were guaranteed. As she noted, “You can develop

Flexibility is key

Secondly, the flexibility and fluidity that Callida offers was key. The inflection point of a consultant’s career when they move to a more senior level, often coincides with a busy and active family schedule. At Callida, we know we get the best out of our talented team if they are able to work from different locations, flexible hours and feel valued and empowered – a genuine output-focused environment.

“Everyone in the business has been so supportive and welcoming, including making sure that my working arrangements also work for my family. They want to know who you are outside of work – this includes your family and getting to know all aspects of your life,” noted Jess, before adding “They are happy for you “to work autonomously, as long as you get your job done and deliver value for our clients.”

Flexibility also makes good financial sense. Recent McKinsey research shows that gender-diverse companies are 15 per cent more likely to outperform their peers, and we know that flexible working arrangements are particularly attractive to women.

Lastly, Jess puts a premium on Callida’s culture and our people. As she observes, “Callida is committed to fostering a high performing but also family friendly culture. They truly understand that personal character is equally important to your professional skills given we operate in a relationship-based industry”.

We believe that our forward-thinking approach to workplace strategy has driven our impressive growth trajectory over the last five years. Our people have driven Callida’s success and we have been able to continue to recruit market leaders.

If you like the sound of our working environment please contact info@callida.com.au.

callida.com.au

Address: 17 Murray Crescent, Griffith ACT 2603

Phone: (02) 6162 3339

Email: info@callida.com.au

‘The Future of Work’ is a hot topic in the business world at the moment, and something Callida Consulting is helping our growing client-list navigate.

Callida Consulting is constantly searching for experienced consultants to join our thriving team.

“You can develop and continuously improve when working with Callida, the people you’re working with are all experienced professionals who have been in the industry for a long time.”

Jess Dalton Senior Principal Consultant Assurance and Risk team Callida Consulting

grants to the arts cover all fields of creative endeavour for established and emerging artists. This includes singers, painters, sculptors illustrators, performers, dancers, jewellers, glass artists, photographers, publishers, poets, makers of films and video, digital artists, musicians and more. These grants are funded by CAPO through the auctioning of fine art gifted by artists and the financial support from business and the community.

"Shortsighted Support = Stress"

This is Silly Sally

Sally doesn't sweat the details and suggests her secretarial services are spotless.

This leads to Silly Sally ending up with a disastrous tax debt.Don't be Silly Sally - let the professionals tax care of your secretarial and administration support. Our team of qualified bookkeepers, accountants and administration professionals at Smart Business Guardian will keep you safe.

Don't delay, dial Smart Business Guardian today twitter: @sbguardian Telephone: +61 (0)2 5105 1395 49 Phillip Avenue, Room C205, Watson, ACT, 2602 www.smartbusinessguardian.com

Why good governance is important to the public sector

Good governance is at the heart of any successful business. It is essential for a company or organisation to achieve its objectives and drive improvement, as well as maintain legal and ethical standing in the eyes of shareholders, regulators and the wider community. Governance is not simply a concern for large companies, but for any business or organisation of any shape or size. “Good governance drives performance for all organisations, regardless of what sector they’re in,” says Phil Butler, who leads the Australian Institute of Company Directors' (AICD) not-for-profit sector program. “A well-governed organisation—one that has systems and processes under control, strategy mapped out, and risk monitored—will generally achieve much better outcomes than those that don’t.”

Good governance can also ensure compliance, says Lynette Pinder, AICD's ACT State Manager. “What do you know about your organisation, what’s your responsibility in terms of compliance, risk management, the overall financial management of your organisation? Understanding your responsibilities is where good governance comes into play.”

How well governed any business or organisation is will be heavily determined by its leadership, and a board brings a level of independence crucial to ensuring good governance. “People who aren’t working in the organisation every day don’t get so weathered to the ideas that are being kicked around by the senior management,” says Butler. “Let’s say there’s a new plan to implement XYZ, well a board is able to say, ‘Sounds like a great idea but how does that fit into our strategy, have you thought

about the risks involved, have you thought about another way of doing it?’ as opposed to when you’re working on something and you get excited by it and you often don’t see any other ideas or any pitfalls within a plan. So that to me is what a board can bring, that independent, objective thought and the ability to analyse ideas and put forward questions that individuals or teams might want to consider a bit further.”

Butler isn’t a fan of strict rules with regard to board composition. “My take is that boards should have the diversity of skills, backgrounds and thought to help the organisation to achieve the best possible outcomes, and that can be done in a range of different ways,” he says. “I don’t think you need an accountant, a lawyer, a marketing person, it’s about having a broad range of skill sets for the organisation at different levels.”

When it comes to the public sector, good governance means a responsible handling of public funds. A key difference between the public and private sectors is the lack of a profit imperative, and even for those public sector organisations that do have a profit imperative, that’s generally not the reason why they were initially established.

Butler notes the distinction between government statutory authorities, which often have more of a corporate structure with a board and chief executive and a large staff, and

government departments that generally won’t have a board. Government departments usually establish an advisory committee that can help advise the departmental secretary and the senior executive team as they explore different ideas. This recognises the need for the same level of objectivity and guidance that a board provides in the private sector. “It doesn’t have the same responsibilities as a board but it can do some similar things that a board does,” says Butler. “The governance is just as important, it’s just different.”

Public sector governance is defined by the Australian Public Service Commission as the set of responsibilities and practices, policies and procedures, exercised by an agency’s executive to provide strategic direction, ensure objectives are achieved, manage risks and use resources responsibly and with accountability. In this sense, good governance is about both performance—how an agency delivers goods or services— and conformance, how an organisation meets its legal requirements and community expectations.

“Governance is vitally

Phil Butler NFP sector leader, AICD

“A well-governed organisation — one that has systems and processes under control, strategy mapped out, and risk monitored — will generally achieve much better outcomes than those that don’t.”

important in the public sector because you’re dealing with the public’s money, so you’re going to be held to account by members of the community for what you do with their tax dollars and the resources that you have available to you,” says Pinder. “Making sure you have good governance practices in place is absolutely vital.”

Nigel Phair, the director of the Centre for Internet Safety at the University of Canberra who is speaking at the AICD’s upcoming Public Sector Forum at the War Memorial on 11 August, echoes this sentiment. “I like a conservative government—not conservative politics, but conservative government,” says Phair. “When they’re entrusted with the public purse, I like i’s dotted and t’s crossed, and that includes governance. A government board, to my mind, should be like any board, whether it’s a not-for-profit board or an ASX 100 board or anything in between, it should have a diversity of skills and a diversity of talent,” says Phair.

At the second annual AICD Australian Governance Summit held in March, Leilani Frew, a former director of Sydney Motorway Corp, described government boards as a hybrid in terms of not-for-profit and corporate conglomerates. “Community at heart but commercial discipline in my head, that’s the approach you have to take,” said Frew, who stressed the importance of strong engagement with the community that the business or organisation serves.

The governance of any organisation affects its appetite for risk and ability to innovate, says Robert Kay, the co-founder and executive director of Incept Labs who is also an Adjunct Professor at Macquarie University. Kay said that when it comes to innovation in the public sector, it’s a whole other world to the

private sphere. “They are quite distinct realms when looking at why governance matters as it relates to innovation,” he says.

Incept Labs has conducted two studies in relation to public sector innovation. The first one was a CEO study conducted over 2012-2013 where 25 private sector CEOs and 25 departmental secretaries or heads of department were interviewed in relation to how they saw innovation working in their organisations. The survey used a narrative approach, and asked participants to tell a story of an innovation they were involved with or closely associated with, one that’s a success and one that’s a failure to compare the different patterns of what’s going on. Kay said this was the first time anyone obtained comparable data sets from both the private and public sectors.

The findings showed that innovation occurs very differently within the public and private sectors. “A lot of the principles that you would apply to how you design an innovation capability or how you govern innovation in the private sector, if you tried to transpose those directly into the public sector they’re unlikely to work because things like the risk appetite are quite different,” says Kay. “The nature of the risks and how they manifest in the organisation are quite different. In the public sector you’re not actually in control of your own destiny to a large extent, you get a new minister every three years and they may or may not make sense. As a result, those dynamics that could be relatively organic in a private sector context, they’ll never survive in a public sector context. We even found, to some extent, there are even forms of innovation that wouldn’t exist in the private sector.”

Innovation usually occurs when the uncertainty around any given idea or strategy is reduced so that it can be implemented. But Kay found that there were ideas in the public sector that basically had no uncertainty associated with them at all, yet the fear of scrutiny meant they were not implemented. “You just wouldn’t get that in the private sector,” he said. “If you’re in the private sector you can net out the gain from multiple failed innovations through one mega success, whereas in the public sector you can’t. If you have a mega-success, that doesn’t buy you any points if the next one is a failure and becomes a headline. The political risk associated with that means you’ll just get smashed anyway so that therefore has a natural impact on the risk appetite of the people who are playing in that space,” says Kay.

The high level of transparency around public sector organisations reduces their

capacity to engage in certain exploratory activities, says Kay, who states the key goal of any public sector innovation is to not end up on the front page of the Daily Telegraph. “Private sector sentiment would say that’s really not a great environment for innovation, is it? However, the flip side of that is that the public sector achieves innovations that have a very high level of difficulty and still manages to do it. If zero risk appetite is the environment in which they have to innovate, that just means that’s a different intellectual challenge. It’s just a different problem to solve.”

Kay believes the more successful government agencies are filled with innovation. “There’ll be lots of good ideas and they’ll sit there and they’ll wait for the right political climate to see the light of day,” he says. “But having said that, you see that in private sector organisations as well, you get a new executive and they’ll want to see things done differently. I just think there’s far more scope for ideas to organically rise to the top through a systematic process in the private sector because the level of transparency over what might be happening in a private organisation is not there as it would be for a public sector one.”

Another factor affecting public sector governance is how agencies work with ministers. This unique challenge can be navigated, according to Frew, through a significant intimate relationship with your ministers, often leveraged off the relationships with the bureaucracy. She believes public sector boards can also play mentors and coaches to their shareholders, i.e. the ministers, which is why it’s crucial that all board or committee members

understand the purpose of their presence in

Lynette Pinder ACT State Manager, AICD

Robert Kay Executive director, Incept Labs

“Governance is vitally important in the public sector because you’re dealing with the public’s money, so you’re going to be held to account by members of the community for what you do with their tax dollars and the resources that you have available to you”

“The nature of the risks and how they manifest in the organisation are quite different. In the public sector you’re not actually in control of your own destiny to a large extent, you get a new minister every three years and they may or may not make sense.”

the organisation. “With government boards, if you’re agile, and you’re flexible, you’ll do extremely well,” Frew said.

The AICD helps promote good governance through a range of measures and delivers induction training to a number of board members of public sector entities. “The purpose of our organisation is to assist organisations across all sectors to improve their governance, because we recognise that better governance is a better outcome for the economy and society,” says Butler. These include events such as the AICD’s Public Sector Forum, advisory services, education programs and in-house training and online resources including webinars and the Governance Analysis Tool, which looks at how well a board is functioning. “From AICD’s view, we’re not talking about your dayto-day operations, we’re talking about your overall specific focus, the oversight of that,” says Pinder.

Pinder advises anyone interested in public sector boards to look at the skills they possess and see if they are transferrable to other areas. For those assembling a board, she advises to look broadly. “Just because someone is well known doesn’t mean they’ll be any good on that board. People without a public profile might be better able to critically analyse what you’re doing,” she says.

Pinder was on a South Australian government advisory board that deliberately went external to the forestry industry. While initially there was a bit of a furore about the lack of union or current industry representatives on the board, in the end the industry was supportive and the board was successful for the three years it operated. “We had a set job to consult widely, and there were no biases so there was no perception of bias, we came up with a plan, and then our job was done and we stepped back,” says Pinder. “The industry was actually supportive because it worked for that time, they needed a circuit breaker. Sometimes it can only come from outside.”

The AICD’s Public Sector Forum will be held on Friday, 11 August, at the BAE Systems Theatre in the Australian War Memorial.

For more information, visit companydirectors.com.au/public-sector-forum

Nigel Phair, Director of the Centre for Internet Safety, University of Canberra

“A government board, to my mind, should be like any board, whether it’s a not-for-profit board or an ASX 100 board or anything in between, it should have a diversity of skills and a diversity of talent”

Photography: Kasra Yousefi

by Harry Hoang

End of Financial Year preparation:

Magical touch on your books!

With end of financial year (EOFY) fast approaching, the Tailored Accounts team is counting down to the last day of the financial year! You may wonder why EOFY often becomes such a hectic time for bookkeepers and accountants. I hope this article can shed light on the inner processes of EOFY preparation. The following list articulates the main examples of magical touches that we exert to ensure your books are in the best order:

1.

The year-end payroll

Payroll reconciliations at year-end takes care and attention to ensure all requirements are met. Here are the core tasks that our team has been undertaking in the process of EOFY preparation:

• Final super payment runs must be done before 25th June each year to ensure the last super payment is eligible for a tax deduction in the current financial year.

• Payment summaries are to be communicated to employees via email/post before 14th July.

• Payment summary reports must be submitted to the ATO before 14th August in the following year.

2.

The last GST & BAS of the financial year

As you may be aware, April-June BAS is not due until 28th July in the next year. Regardless of the due date of BAS, our team finalises the last quarterly BAS before 14th July to reconcile balances between payslips and BAS. To prepare the end of the year BAS, we review all quarterly sets of BAS submitted during the financial year to reassure the integrity of your financial data since all adjustments need to be made in the final BAS.

3.

The final review of all other accounts

After the big year-end reconciliation processes of Payroll and BAS, our team also reviews every single account in your Trial Balance prior to closing your books. To deal with the sheer volume, the Tailored Accounts team prepares review and consolidation of all accounts after the reconciliation of Payroll and BAS.

One-hundred small business clients can be translated into a budget for 1,500 hours (equivalent to 6.5 full-time staff) at a minimum for six weeks prior to EOFY. This response, hence, addresses the original question, "Why are accountants and bookkeepers busy during the EOFY period?"

With strong attention to details, the Tailored Accounts team and I have always delivered neat, error-free and presentable reports to more than fivehundred clients since 2008. As the EOFY period is now approaching, this is an opportunity to set your financial reporting right by contacting Tailored Accounts today!

Harry Hoang is the CEO of Tailored Accounts “The Accounts Department of Small and Medium Business” www.tailoredaccounts.com.au

As you may be aware, April-June BAS is not due until 28th July in the next year. Regardless of the due date of BAS, our team finalises the last quarterly BAS before 14th July to reconcile balances between payslips and BAS.

BUSINESS LAW

CASH FLOW SOLUTIONS

by Mark Love

Joining the crowd – Crowd Sourced Equity comes to Australia

Recent Federal Government measures have made it easier for start-ups and small businesses to raise capital through Crowd Sourced Equity Funding (“CSEF ”). CSEF platforms such as Indigogo and Kickstarter, allow investors to make small financial ‘investments’ in emerging companies in exchange for equity in the business.

Are you eligible for CSEF?

From 27 September 2017, unlisted public companies with less than $25 million in assets and annual turnover can use CSEF to raise capital. Small companies that become public companies in order to access CSEF will be provided concessions from onerous reporting requirements and corporate governance usually required from public companies for up to five years.

Private companies and large public companies remain ineligible for CSEF, yet there is hope for proprietary companies.

What is the catch?

Eligible companies may only raise up to $5 million in any 12-month period. Retail or ‘mum and dad’ investors are restricted to an investment cap of $10,000 per company, per 12 month period. Investors also have access to a five-day cooling-off period to reconsider their funding, after making a commitment.

Companies interested in engaging in CSEF must do so through licensed crowd-funding platforms. Those platforms will be required to play a gatekeeping and oversight role including: providing checks on companies wanting to list themselves on the platform, providing warnings to investors and providing communication facilities. Intermediaries can also operate under a preferred fee structure and invest in business opportunities using their platform. These investments however, must be disclosed.

Are proprietary companies left out?

The Federal Government has recently released draft legislation to extend CSEF to proprietary companies. It is estimated proprietary companies will be able to access CSEF from around March 2018. Key provisions of the draft bill include:

• A proprietary company must have a minimum of two directors (a majority of whom must live in Australia) to access CSEF;

• CSEF investors will not be counted as part of the shareholder cap of 50 non-employee shareholders for classification as a proprietary company; and

• Proprietary companies undertaking CSEF will have additional regulatory burdens including: additional company reporting requirements with ASIC, the preparation of annual financial statements and director’s reports, and companies with CSEF investments exceeding $1 million will be required to have their annual financial reports audited. CSEF provides considerable opportunities to build businesses quickly and reach a new generation of investors. If you want to discuss potential CSEF opportunities for your business, contact BAL Lawyers.

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

by Jane Lombard

Supply Chain Funding a game changer for suppliers

When working capital dries up suppliers operating in the B2B space traditionally resort to debtor finance.

It’s a viable solution for many, but requires care when choosing a provider.

Qualifying for a facility can be hard, fees can be high and lock in contracts can be expensive to break.

The recent introduction to Australia of Supply Chain Funding, or supplier finance, changes that.

Business owners can now get their hands on working capital a lot more quickly and easily without many of the hassles associated with debtor finance.

WHAT IS SUPPLY CHAIN FUNDING

Supply Chain Funding occurs when a customer (debtor), with support from a finance company, offers to accelerate payments to suppliers in return for discounts.

The funds are provided by the finance company which also manages the transactions.

GAME CHANGER

It’s a game changer for suppliers who normally have to wait weeks or even months to be paid by their customers.

Now they can be paid when they need the funds and receive up to 97% of the value of invoices they have issued.

EASY TO SET UP

One of the biggest advantages for suppliers is the ability to receive early payment without entering into a lending arrangement with a finance company. The supplier simply signs a deed containing an honesty clause.

NO SECURITY

The supplier does not have to offer assets to secure early payment, nor guarantee to repay the funds if the debtor fails.

FLEXIBLE FEES

Fees are calculated on a daily basis. The discount offered by a supplier is determined by how far out from the due date early payment is required. The closer to the due date the lower the discount.

MORE CASH IN HAND

Debtor finance companies generally advance suppliers only 80% of the value of an invoice. They have to wait until the debtor pays to receive the rest. With supplier finance, the supplier receives the full amount of the invoice in advance less the discount.

NO CONTRACT

A supplier is not obliged to take early payment on every invoice issued to a customer. It can pick and choose depending on its working capital needs.

Fifo Capital was the first company to introduce this product to the Australian SME market and Managing Director, Neil McMillan says it is a compelling alternative to debtor finance.

“From a supplier’s point of view, this is a no brainer. There is little or no risk to its assets. Paperwork is minimal as are credit checks. Best of all, the supplier has greater control over its costs.

“Our platform creates a new environment of accelerated payments which enables suppliers to better manage their businesses and drive growth.”

E jane.lombard@fifocapital.com PO Box 3269, Weston Creek ACT 2611

Eligible companies may only raise up to $5 million in any 12-month period. Retail or ‘mum and dad’ investors are restricted to an investment cap of $10,000 per company, per 12 month period.

by Beneton Chu

Cyber Security implications of IoT devices

The Internet of Things (IoT) refers to the growing network of devices that are embedded with network connectivity, allowing them to collect and exchange data, and be accessed through the internet. Some examples include vehicles, home automation devices, appliances, and building management systems.

IoT is driving automation, however the proliferation of IoT devices also increases the attack surface and risks for malicious cyberattacks to your environment. Your IoT devices can be compromised which can lead to disastrous consequences.

As such, businesses that use IoT devices need to carefully consider the security implications of these devices. Imagine the consequences of a hacker compromising your business’ security system and devices (say your CCTV cameras), or even hacking a temperature control system responsible for regulating temperature over critical infrastructure (your server room or refrigeration system perhaps?). As an example, consider the case where a Chrysler Jeep was demonstrated to be hacked remotely by security researchers using just a laptop. What could this mean to the safety of your staff using such a vehicle?

IoT enabled devices are also increasing the accessibility of powerful Distributed Denial of Services (DDoS) attacks. For example, the Mirai botnet was responsible for one of the largest DDoS attacks to date (which took down high profile websites such as Netflix and Twitter) and was executed using compromised IoT devices from around the world such as CCTV cameras, DVRs and routers.

There is no ‘silver bullet’ for IoT security; businesses will need to extend their security practices to consider IoT devices. However, below are some simple precautions that can be taken to reduce the risk exposure. Change default administrator usernames and passwords on devices. Following good password practices such as regularly changing passwords (and ensuring they are strong and unique) will reduce the risk of a successful attack. Close inbound ports and apply network segmentation where practical. Allowing only required outbound connections on devices will reduce exposure to threats. Security risks of leaving inbound ports open indefinitely include malware infections, theft of data, and arbitrary code execution. Applying network isolation to devices will also reduce the impact if the IoT device or another visible network device is compromised. Buyer beware. Purchase IoT devices from reputable manufacturers that provide regular security patches. Monitor your devices. A device that has unexpectedly gone offline could indicate tampering is taking place.

The Cordelta security team can provide advice on your security risks if you are considering IoT devices. Contact us for further details.

INSOLVENCY

by Tony Lane

Tackling trusts

Speak with any well-informed insolvency practitioner and, aside from the sweeping law reform being foisted upon the industry, a major issue occupying the minds of many is the tricky task of winding up trust-related enterprises.

Why tricky? It all came about as a result of some recent case law that has effectively inverted the commonly-understood regime of dealing with the property managed by an insolvent trustee. Since 1983 at least, most if not all liquidators winding up a corporate trustee would simply go about realising that property subject to the control of the trustee (subject to any provision that might automatically evict that trustee company from its role – a hairy subject for another day). They would then rely on equitable principles to assert a trustee’s lien over property of the trust, allowing the Liquidator to claim that property as being ‘property of the company’.

In addition, most modern trust deeds provide an indemnity out of trust assets against liability for the trustee acting reasonably on behalf of the trust. In so doing, a Liquidator could feel comfortable dealing with trust assets as property of the company and applying the well-worn provisions of section 556 of the Corporations Act 2001 in distributing that property.

That all changed with the judgement handed down by NSW Supreme Court Justice Paul Brereton in Re Independent Contractor Services (Aust) Pty Limited (in liq) (No 2)1 That decision has been followed by the Federal Court (in Woodgate2) and Victorian Supreme Court (in Re Amerind3 ), with the effect being that trust property is not considered to be property of the Company and so the provisions of the Corporations Act simply do not apply. Ordinary principles of equity will see each and every claimant against trust property rank pari passu.

Under the Corporations Act regime, employees are provided with preferential status and, in receivership and liquidation alike, are entitled to be paid in priority (in some cases even before the insolvency practitioner!)

Why is this of concern? Under the Corporations Act regime, employees are provided with preferential status and, in receivership and liquidation alike, are entitled to be paid in priority (in some cases even before the insolvency practitioner!). However, by rejecting the applicability of section 556 and its regime of rights to receive distributions from insolvent companies, those employed by a corporate trustee will, in a winding up (and also in receivership), be denied any priority and will rank with all other ordinary unsecured creditors.

Lawyers, practitioners and creditors must be alert to these issues and risk of Court interference should they be found in error.

1 [2016] NSWSC 106 2 Woodgate, in the matter of Bell Hire Services Pty Ltd (in liq) [2016] FCA 1583 3 Re Amerind Pty Ltd (receivers and managers appointed) (in liq) [2017] VSC 127

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

IoT is driving automation, however the proliferation of IoT devices also increases the attack surface and risks for malicious cyber-attacks to your environment.

by Shaun Creighton

Legal issues to consider when starting a business

Starting a new business is an exciting time. A difficulty may be getting all necessary legal advice, and mechanisms in place prior to starting. Although cash flow can be tight when starting out, this is an important time to receive professional advice, as it may limit the risk of unintended issues arising later.

What are the legal issues / advice / documents you will need before you start your business? There is no such thing as “one size fits all”, as the answer to this question turns on the nature of your business, how you are structured, your size, and the industry you operate in.

Examples of the types of legal services we regularly find a start up business needs (and why) include:

• Legal structure advice: Before starting to trade, have you considered whether you will trade as a sole trader, company, partnership, trust, or company as trustee of a trust? This is important to discuss with both your lawyer and accountant.

• Founder Agreements (eg Shareholder Agreements): If going into business with other people, a founder’s agreement (such as a shareholders agreement, partnership agreement, unit holders agreement) is a must. This agreement should cover off issues such as the entry and exit process (and conditions to be satisfied prior to entry and exit), decisions making (including decisions which must be unanimous), IP ownership, and any restraints against an exiting party from competing with the business. As your business grows, we can draft suitable provisions and documents to assist with expansion and capital raising.

• Intellectual Property Protection: The type of IP in a new business varies, but almost every new business has a new brand. Brands should be protected as registered trade marks. This will provide you with an ability to prevent 3rd parties from using a similar brand, plus limit the risk of being forced to re-brand as a result of infringing the rights of a 3rd party.

• Good and / or Services Agreements: If your business intends selling goods or providing services, there is merit in having your own good / services agreement govern the relationships.

• Teaming Agreement: When entering into a business relationship with 3rd parties, we can assist with drafting / negotiating a range of teaming agreements, including supplier / distribution agreements, joint ventures and other alliance arrangements.

• Employment and / Contractor Agreements: If engaging people to work for you, will you engage employees or contractors? Do you understand the difference between the two and the consequences of getting this wrong?

• Regulatory advice: We advise on compliance with regulatory laws which affect a number of business transactions, such as competition, privacy, consumer contracts and trade-related issues.

• Policies: before you start, you may require a privacy policy, website terms etc.

Moulis Legal offers a fixed fee package tailored to suit start-up businesses. We call it Start Me Up! What is included in that package is up to you. Contact Shaun Creighton at shaun.creighton@moulislegal.com or on 02 6163 1000 for more information.

RECRUITMENT

There is no ‘business as usual’ as far as digital disruption is concerned, but one unique way organisations can prepare for such uncertainty is to employ more older workers.

While younger digital natives are often thought of as an organisation’s best response to the rapid pace of change, a workforce with older experienced employees can be more prepared to face change and deliver on agreed outcomes.

Last year, Ford CEO Mark Fields signalled quite how profoundly technology has overthrown all our assumptions about business. He admitted that companies seemingly far removed from the car industry –the likes of Apple and Google – were now considered its main rivals. New technologies are certainly redefining business models and sectors in a dramatic way (what we know as ‘digital disruption’).

Some companies are tackling this head on while others are just at the brink of embracing such change. Either way, organisations can make sure they are prepared first and foremost by diversifying their workforces and senior teams. Yet when people talk of the skills an organisation needs in response to digital disruption there’s usually an assumption that it is younger digital natives who need to be added as they’re seen as best suited to embrace technological change and adapt to new business models.

But diversity of experience and background is what’s really critical to ensure organisations can prepare for disruption. Yes, digital natives can grasp and make sense of the changes around them, but older professionals have the experience that allows decisions to be made and then deliver on agreed outcomes.

When an organisation creates a diverse workforce – of younger digital natives as well as experienced professionals in their 40s, 50s and 60s from various industries – they have a team that will bring knowledge from various backgrounds to the challenges faced.

Older professionals can also upskill to become digitally savvy and capable of responding to, or creating, disruption.

Apart from diversity of age and background, organisations need staff who can innovate and create new improved experiences for their customers. A strong culture of innovation is important. Agile working methods can also help foster and accelerate innovation. Of course, all this must be done while delivering the agreed outcomes.

Expanding the pool of candidates you consider and ensuring they can adapt to rapid and continuous change will help workforces be ready for disruption. After all, it’s sink or swim time.

For more, please contact our Canberra office on 02 6257 6344 or email kathy.kostyrko@hays.com.au

Kathy Kostyrko, Director of Hays in Canberra

T 02 6257 6344

E canberra@hays.com.au

Digital disruption could be good for older workers

by Kathy Kostyrko

When an organisation creates a diverse workforce – of younger digital natives as well as experienced professionals in their 40s, 50s and 60s from various industries – they have a team that will bring knowledge from various backgrounds to the challenges faced.

by Chris Miller

Follow the money

It is my good fortune that one of my best friends also happens to be my accountant. Naturally this means that on any given day I hit my longsuffering friend up for some free advice about all things financial. There is however one noticeable caveat to this arrangement; during the months of July / Aug I can forget about speaking to my friend regarding financial matters, or anything else!

This is because he is busy preparing and auditing the accounts of all of his clients. Obviously every one of these clients will submit a tax return, and a significant number will also have their accounts audited (many will have mandatory audits such as is required for a Self Managed Super Fund).

Over a beverage or two the subject of audits for Owners Corporations has come up between my friend and I. The question of why OC’s don’t have their financial statements audited as a matter of course has been put to me on many occasions. Frankly speaking, I don’t have a particularly good answer. The simple fact is that routine audits of an Owners Corporations accounts is not mandatory, and therefore has not historically been a standard practice in the ACT.

The status quo has arguably been perfectly adequate for the majority of Owners Corporations over time. However, times have indeed changed and it is well worth pausing to consider if past practices are appropriate for todays needs.

When I started my career in strata I managed a portfolio of almost 100 buildings, each with an average number of units probably at around 10 or less. It was once the case that a development of one hundred units or more was the exception; now it is more frequently the rule.

As the buildings that we manage become larger in scale and more diverse in complexity, the operating budgets to manage these facilities increases exponentially. It is now quite common for an Owners Corporation to control the flow of many hundreds of thousands of dollars annually. In some cases the figure will be in the millions.

In the absence of any statutory requirement for the accounts to be audited by a qualified third party there can be no doubt that an Executive Committee is exposed to risk of financial mismanagement if it does not take reasonable steps to protect itself and the Owners Corporation.

At Vantage Strata we insist that consideration be given at each Annual General Meeting to appoint an independent auditor to review the accounts, and we give our strong recommendation that such an exercise is undertaken no less than every three years at a minimum. For larger buildings dealing with greater volumes of money, we recommend this exercise take place every year.

Given that it is the start of a new financial year, perhaps it is timely to consider if your Owners Corporations accounts could benefit from a little scrutiny.

WEBSITES

by Sam Gupta

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.

Last week, a business owner who has been finding it hard to grow their business, told me that digital marketing does not work for them. When I hear people make such strong claims, I feel disappointed for two reasonsone, some digital agency did not do their job properly and two, this old established business is possibly giving business away on a silver platter to new competitors because of the lack of new opportunities.

Let's dig on this a little deeper. In the marketing world, 'Impressions' basically means that your advert appeared in front of someone. Impressions have been one of the widely exploited statistics from time immemorial - be it newspapers, television or online. Just because your advert has had 20,000 impressions, doesn't mean you actually made any impression on any of them. It doesn't say anything about the type of audience, the effect of that impression or if it prompted anyone to take any action. It simply gives you an opportunity to put forward your message in front of someone. How to make it effective, is a much more important question.

Many people claim to know digital marketing but only a few really understand the art of making it work effectively. My advise to you is simple; focus on making an impression rather than just counting them. If you run a campaign with an objective of getting leads and you are getting the impressions but not the clicks, then you shouldn't just assume that the medium doesn't work for you. Take another look at your audience, your ad, your message, your landing page and your call-to-action. If your objective was to get clicks and it didn't work as expected, there could be more than one reasons for it not working.

There has been many cases where I have taken over a campaign and it has almost doubled the conversion simply by taking a fresh look at various things. Few days ago, a client for whom we had setup an initial online campaign, which worked really well for them contacted me. After that campaign, they tried another digital agency (belonging to their friend) for 3 months, but their click-through-rate, conversion and many other statistics declined significantly as a result. They have asked me to re-look at their online marketing so that we can get them back to where they were before. I am not saying I have all the answers but we focus on continuous learning and work very hard to get results for our clients.

Getting impression may look like a simple task, but making an impression to your audience is an art. Don't let your business suffer from growth deficiency. If you need help, feel free to claim your free discovery session with me.

Sam Gupta is the managing director of Synapse Worldwide.

Sam would love to hear your thoughts on this advice column.

Tel: 1300 785 230

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Must be innovative to drive innovation

Robyn Hendry | CEO | Canberra Business Chamber

recognised on a world stage, the technology company Atlassian and the medical devices company Cochlear being two notable examples. It has always been the role of government to support such companies and the research behind their products. In doing so, government must make sure that the policies and programs it implements keep up with the times.”

Based on over 100 submission and views shared at five public hearings, the Parliamentary Committee developed 38 recommendations aimed at ensuring Australia’s tertiary education system can meet the needs of a future labour force focused on innovation and creativity.

with universities is challenging and expensive. While the focus of the report is on what we can do at an Australia-wide level to encourage greater innovation, there are steps the ACT can take immediately.

Italk a lot about the ACT being a knowledge and innovation hub, and we should rightfully be proud of our homegrown, cutting-edge companies and the partnerships forged between our research institutions, the tertiary education sector and industry.

Yet recent reports and comments suggest Australia is not embracing the future quickly enough.

Speaking at the Crawford Australian Leadership Forum in Canberra in late June,

Based on the feedback provided to this committee, its seems our wins in innovation and workforce development are not yet good enough.

The Australian Industry Group told the committee that Australia has the lowest level of business to research collaboration among comparator countries and ranks last in the OECD for industry-university collaboration on innovation.

It shared research showing only 30 per cent of Australian researchers are based in

The most recent ACT Budget contained funding for a number of programs that can have a positive impact. It included $15 million in continued funding for the Confident and Business Ready package to support innovation programs, key industry sector development, Canberra brand marketing, trade and investment facilitation, and the Office for International Engagement; and $1.3 million to partner with the private and university sectors to build expertise in autonomous vehicle technology.

In its last two ACT Budget submissions, the Chamber has sought support for integration of ACT employers, both private and public, and the education and training industry to help prepare our future workforce.

We are proposing a dedicated resource be funded to develop and maintain a comprehensive relationship between

Reserve Bank Governor, Phillip Lowe spoke about people’s fear of automation and the impact this is having on the economy, in particular it is preventing people seeking pay rises in their current jobs.

During the same Forum, Corrs Chambers Westgarth CEO, John Denton called managing economic integration and technological revolution the fundamental challenge for our nation.

Also in late June, the House of Representatives Standing Committee on Employment, Education and Training released a report on its Inquiry into Innovation and Creativity: Workforce for the New Economy.

In its introduction, this report says it comes “at a time when there is a nascent but promising innovation ecosystem in Australia. Many Australian companies are now

industry compared with 80 per cent in the United States, 70 per cent in Japan and 64 per cent in Switzerland.

Some of the barriers to university-industry collaboration according to the report are:

• lack of mobility between industry and universities for professionals and researchers.

• misalignment between the long research timeframes of universities and the shorter times frames required by industry competing in the global economy.

• relatively few government incentives for business to collaborate with public sector researchers compared to other nations

• difficulties around negotiating the legal parameters of collaboration, such as intellectual property and insurance.

• industry perception that collaboration

Photo: Andrew Sikorski

The Australian Industry Group told the committee that Australia has the lowest level of business to research collaboration among comparator countries and ranks last in the OECD for industry-university collaboration on innovation.

C M Y CM MY CY CMY K

Help i n g y ou m a k e a n I m p a c t

BARR

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

This Government went to the last election with a positive plan for vibrant renewal all across our city and suburbs. And our 2017-18 ACT Budget starts delivering that plan.

We’ve made huge strides in the past two decades, from the growth of Gungahlin

Delivering for a better Canberra

and the maturing of Tuggeranong to the creation and renewal of NewActon, Kingston Foreshore and Braddon. Economically, we’ve grown from a one company town to a confident and diversified city.

But there is plenty more we can do to make the city we love even better. We should keep building on Canberra’s potential.

We are renewing our city’s health services; we’re revitalising our city centre and cleaning up our suburbs; we are renovating Canberra’s schools and we are overhauling our transport system to keep Canberra moving.

For the six years that I’ve been fortunate enough to serve as the Territory’s Treasurer, I’ve made growing and diversifying our economy a top priority. That’s because I believe this city can – and should – invest in its own economic diversification.

Lannon Harley/ ACT Government

The Government has never lost sight of the importance of creating and maintaining good jobs for Canberrans, and this will continue to be at the centre of everything we do in the years to come.

From expanding Study Canberra to attract more international students and supporting the development of innovative new industries like autonomous vehicles, to attracting major sports matches and more blockbuster events, this Budget keeps pushing ahead with economic diversification to create more and better jobs.

A strong balance sheet goes handin-hand with a strong economy to keep our city growing. That is why this Budget continues our clear and steady path back to balance from the depths of the combined Commonwealth and Mr Fluffy effect to our books some years ago.

Our significant investments in transport, infrastructure, education and health will also create and maintain thousands more jobs over the next four years, including in

construction, nursing and our schools.

With this Budget, this Government is laying down an ambitious agenda for renewing Canberra over the next four years. And we are doing it by delivering on the promises we made at the last election.

We know Canberra has so much more potential still to be realised, and we are making that happen.

ANDREW

We are renewing our city’s health services; we’re revitalising our city centre and cleaning up our suburbs; we are renovating Canberra’s schools and we are overhauling our transport system to keep Canberra moving.

Photo:

Artist’s impression | MIN EER 5

NETWORKING

Benson

NETWORKING

CAPO launch Canberra Museum and Gallery Photography: Tim Benson

Billy Moore

Rugby League Legend

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