B2BMAGAZINE.COM.AU
MARCH 2015
MTAA Super ON TRACK TO NEON HOUSE
A SUPER FUTURE
CREATION OF AN ICON
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$4.95 inc. GST
ISSN 1833-8232
FOCUS ON TALENT... BEFORE IT'S TOO LATE HORIZONE ONE
GET SUPERSTREAM READY RSM BIRD CAMERON
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• Contractor payroll and full salary packaging • In house novated car leasing without set-up fees • Access to a national fleet buying network • Super salary sacrificing • Work related items, e.g. mobile phone, laptops, iPads • Professional memberships and subscriptions • Study costs • Tools of trade • Airline lounge memberships • Living away from home allowance, (where eligible) • All Insurances, Public Liability, Public Indemnity and Workers Compensation If you haven’t experienced the PayMe way then call today to enjoy peace of mind that your pay will be in your account when you expect it. Free call: 1800 082 006 Complete an on-line enquiry at www.payme.com.au or visit us at our Canberra Office at Suite 6, 18 Napier Close Deakin ACT.
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CONTENTS
PUBLISHER'S NOTE
B2B WELCOMES ACCESS CANBERRA The ACT Chief Minister, Andrew Barr has written in B2B this month (page 34) about Access Canberra, ’a new one stop shop to cut red TIM tape and better connect Canberran’s BENSON to government services’. This new Publisher service, once up and running, will potentially make it easier for businesses to get the information they currently need to chase seven agencies for - from one agency … fingers crossed. The full service is due to be launched in mid May from the newly named Canberra Connect shopfront in Gungahlin renamed ‘Access Canberra'. The marketing campaign is yet to be rolled out for this innovative program. In the meantime businesses can contact Canberra Connect and ask for Access Canberra. This month’s cover features MTAA Super, the superannuation fund for workers in the motor trades industry. Last year they celebrated 25 years in the business. This February they passed the $8.5 billion mark in funds under management. In addition to this, MTAA Super Chief Executive Leeanne Turner was awarded the Executive of the Year from Fund Executives Association while chair John Brumby won the Australian Institute of Superannuation Trustees’ Trustee of the Year Award. Big things are happening for this very forward focussed fund. We must also acknowledge the great work carried out by outgoing CEO of the Canberra Business Chamber, Chris Faulks. Since taking on the position Chris has been a terrific advocate for the business community and Canberra. B2B had worked closely with Chris and looks forward to continuing the relationship with the new CEO. Congratulations also to the newly elected Chair of the Canberra Business Chamber, Glenn Keys. Glenn is a very successful man that has used his wealth for good things. Firstly employing lots of people (more than 2000) and secondly through his generous philanthropy. His is a member of the Board of the National Disability Insurance Agency, chairman of Special Olympics ACT and is * the founder and Chairman of Project Independence, a new housing initiative, offering home ownership options for people with disability.
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Low fees . Run only to benefit members. A range of investment options MTAA SUPER winning industry leadership Please enjoy this issue of B2B Magazine - oh Award and please have a look at our new website at www.b2bmagazine.com.au.
Send all comments to editorial@b2bmagazine.com.au
ON TRACK TO A SUPER FUTURE
mtaasuper.com.au
Motor Trades Association of Australia Superannuation Fund Pty Ltd (ABN 14 008 650 628, AFSL 238 718) is the Trustee of MTAA Superannuation Fund (ABN 74 559 365 913). You should consider wh MTAA Super is appropriate for you. The MTAA Super Product Disclosure Statement (PDS) can be obtained by calling us on 1300 362 415. You should consider the PDS in making a decision. * All fees are below the Industry Average and received a “Leading” trend assessment. Source: Latest SuperRatings Benchmark Report
MTAA – B2B Magazine ad.indd 1
CONTENTS
26 DISTRIBUTION LOGISTICS Direct mail – the forgotten marketing tool? by National Mailing & Marketing
FEATURE 05 Superannuation revolving door on death benefits Dobinson Davey Clifford Simpson Lawyers
26 FAMILY LAW Cost orders and legal fees in family law matters by Dobinson Davey Clifford Simpson Lawyers
08 Creation of an icon Ray White & Savills
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12 Payroll, Get SuperStream ready RSM Bird Cameron Chartered Accountants 14 Focus on talent… before it's too late! Horizone One recruitment COVER STORY 17 MTAA Super On track to a super future
06 Hatch Property Julie M Cummings
29 RECRUITMENT Investing in your success by Hays Recruiting
21 Snedden Hall & Gallop Craig Painter
30 WEALTH CREATION Redundancy and CSS by Dixon Advisory
22 ADVICE FROM THE EXPERTS 23 ACCOUNTING Avoiding the usual GST errors by RSM Bird Cameron Chartered Accountants
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23 BUSINESS ADVISORY 'Do you want fries with that?' Considering the value of upsold services by Vincents Chartered Accountants 24 BUSINESS LAW Crowdfunding by Bradley Allen Love Lawyers
ISSN 1833-8232 LEGAL NOTICE
31 WEBSITES Maximising conversions online by Synapse Worldwide A2B: ASSOCIATIONS TO BUSINESS 32 CANBERRA BUSINESS CHAMBER Glenn Keys to take over as Chair of Canberra Business Chamber 34 MINISTER'S MESSAGE Making life easier for business in the ACT
24 CORPORATE GOVERNANCE Funding uncertainty: Part 2 by Australian Institute of Company Directors
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28 INTELLECTUAL PROPERTY Certification trade marks by Arete Group 29 PROPERTY INVESTING The countdown to the end of the financial year… by Hatch Property Australia
PROFESSIONAL PROFILE
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28 FINANCIAL PLANNING Are EFT's a better option by Dragonfly Finacial Services
25 BANKING Superstitions – From lucky numbers to unlucky days by ANZ Mobile Lending
BUSINESS NETWORKING 36 B2B @ Dixon Advisory Alumni 38 B2B @ Hong Konk New Year
EDITOR / PUBLISHER
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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.
F E AT U R E
Superannuation revolving door on death benefits By Brendan Cockerill
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ccording to data published by the Australian Taxation Office (“ATO”) the growth in the use of Self Managed Superannuation Funds (“SMSF”) continues. However, a recent publication stated that in the 2012/2013 financial year for the first time in the SMSF sector’s history the amount paid out by SMSF’s was greater than the amount contributed to them. Money can only, generally, be paid out of a SMSF in the form of transition to retirement pension, a retirement/ reversionary pension or as a death benefit when a member dies. When a member dies their death benefit will be paid in accordance with the rules of an existing pension; the provisions of the trust deed; the trustee’s discretion; or a binding death benefit nomination or a combination of these. The superannuation legislation requires that on a member’s death, the member’s death benefit must be “cashed as soon as practicable”. In two recently published Interpretive Decisions the ATO has provided guidance on its interpretation of the meaning of the term “cashed”. In the ATO’s view the term “cashed” requires the deceased member’s death benefit to be paid out of the
SMSF. It is not possible, for example, for the surviving spouse who is entitled to receive the death benefit to leave the assets in the SMSF and transfer them to his or her member balance by way of a journal entry. In the ATO’s view, if a surviving spouse wishes to contribute a death benefit received from their deceased partner into the SMSF the money or assets must actually flow out of the SMSF and then, assuming the spouse is eligible to contribute, be re-contributed into the SMSF. The ATO’s view, while somewhat unsurprising, highlights the need to consider the asset mix in any SMSF when its members are making estate planning and business succession decisions. Problems will arise in relation to SMSF’s with “lumpy” assets, for example, a SMSF with its main asset being a business premises. In such cases, without some sort of liquidity strategy to ensure that the fund is able to pay death benefits, the SMSF may have no other choice but to sell the property or at the very least transfer it out of the fund and incur the associated transaction costs. It is also important to ensure, particularly in a business succession context where business premises are owned within a SMSF,
that appropriate special purpose binding death nominations are allowed by the deed and put in place to provide that, if the property must come out of the SMSF, it goes to the intended family members. DDCS Lawyers can provide advice on all legal aspects of SMFS’s and can provide advice on appropriately structured binding death benefit nominations to ensure that estate planning and business succession requirements are met.
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Brendan Cockerill is a Senior Associate of the firm. 18 Kendall Lane, New Acton, Canberra phone (02) 6212 7600 mail@ddcslawyers.com.au, www.ddcslawyers.com.au
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PROFILE
Julie Cumming
Director Hatch Property words by Amber Gale photo by Andrew Sikorski
J
ulie, tell us a bit about your What crucial advice and assistance can background and your business, you offer first time property investors? HATCH Property. • Know your limits and why you have them. I began in real estate in early 2001 This includes both your financial and in shopping center management and then personal risk profile. • Surround yourself with an experienced as a buyer’s agent, specifically for investors team of professionals. Be wary of ‘one sourcing quality investment opportunities stop shops’ that offer finance, legal and in Canberra and interstate. I worked in insurance services etc. both residential and commercial property in the areas of property management, sales Relocating interstate can be daunting, and leasing. and this can often be the case for foreign Over time, I recognised that the buyers or investors and expatriates as well. How the tenants were often severely disadvantaged does HATCH assist in making this in negotiations due to a lack of knowledge. transition both smooth and transparent I developed targeted services to meet the for its clients? needs of those who find themselves in We do the legwork and report back to uncharted waters. clients with their best interests being served. For me, it’s all about seeing through the Having an experienced agent inspecting and illusion created by the marketing and sales negotiating on behalf of the absent buyer is hype and seeing what really lies beneath. well worth the cost. When making significant financial decisions, You have some wonderful reviews on it is imperative to be as fully informed as your website from your very contented possible to be able to negotiate effectively. clients – can you share one of your success If you don’t have the knowledge yourself, it stories with us? can save a lot of money and stress to engage I recently secured a new home for a client someone who does. living overseas on a posting. I was initially And let’s get straight to it – what is asked to bid on a property the night prior HATCH Property’s point of difference? to the auction. Due to irregularities in the It’s not about a sale, or just a transaction. building approvals, I ultimately advised my It’s about getting a positive outcome. client that it was not in her best interest
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to take such a risk. The property passed in at auction with no bids, and after identifying options that better met her lifestyle and investment needs, we secured a property in a superior location. What other services does HATCH Property offer? Vendor Advocacy is a very popular service. I have international, interstate and local clients who often engage me to appraise their home or investment property and recommend how best to take it to market. I offer a small number of handpicked agents to “pitch” a marketing plan, commission structure and sales strategy. We then select the agent the client feels most comfortable with, taking the angst out of the process for them. Contact Julie to arrange a time to discuss your property needs.
Contact Julie M Cumming, Director, Hatch Property Australia M: 0404 453 397 E: julie@hatchproperty.com.au www.hatchproperty.com.au
QUALIFIED PROPERTY INVESTMENT ADVISER
QPIA
cso.org.au CSO concerts offer a unique and prestigious experience providing unparalleled opportunities to develop valuable relationships with staff, and current and potential clients. Each CSO partnership is a bespoke package, tailored specifically to meet the needs identified by each partner. We don’t have set ‘plans’; we have an amazing product, innovative ways of associating with it, and a genuine desire to ensure that alignment with the CSO becomes a key element in your business development strategy. To align your organisation with Canberra’s premiere arts organisation, write to partnerships@cso.org.au or visit cso.org.au.
LLEWELLYN SERIES
SATURDAY SERIES
/01 SIBELIUS 1 & 2 APRIL SCHUBERT The Magic Harp Overture ˇ DVORÁK Cello Concerto SIBELIUS Symphony No. 5
/01 SHELL PROM, GOVERNMENT HOUSE 14 FEBRUARY A Touch of Tartan Featuring favourites such as Scottish Fantasy, Danny Boy, Hebrides Overture and more.
Nicholas Milton Conductor* Edward King Cello /02 TCHAIKOVSKY 6 & 7 MAY MATTHEW HINDSON Boom Box TCHAIKOVSKY Piano Concerto No. 1 RIMSKY-KORSAKOV Scheherazade Nicholas Milton Hoang Pham Piano
Conductor*
/03 BRAHMS 19 & 20 AUGUST KODÁLY Dances of Galánta SIBELIUS Violin Concerto BRAHMS Symphony No. 4 Nicholas Milton Conductor* Andrew Haveron Violin /04 RACHMANINOV 4 & 5 NOVEMBER MÁRQUEZ Danzón No. 2 RICHARD MILLS Soundscapes: for percussion and orchestra RACHMANINOV Symphonic Dances Nicholas Milton Conductor* Claire Edwardes Percussion
Guy Noble Conductor Anna Da Silva Chen Violin /02 ACTEW GRAND GALA 4 JULY Puccini Featuring favourites from Puccini, Wagner, Verdi & more. Nicholas Milton Conductor* Eva Kong Soprano James Egglestone Tenor /03 CANBERRA WEEKLY MATINEE MAGIC 26 SEPTEMBER In the Mood music from the ‘big band’ swing era Featuring favourites such as Little Brown Jug, In the Mood, Chattanooga Choo Choo and more. Timothy Sexton Conductor Rachael Beck Soprano *Artistic patronage of Nicholas Milton courtesy of ActewAGL
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Creation of an Icon Under the direction of leading Canberra development group, Crafted, the 1962 office building at 8-10 Hobart Place, Canberra City, has been transformed into one of Canberra’s newest icons. Featuring a striking LED façade which is computer controlled, is capable of up to 16 million different colours, and runs multiple programs throughout the night, changing with the seasons and for special events or days – Neon House has come to life.
Designed by graphic artist Paul Wallace, founder of boutique studio, PEOW-PEOW, the building also features new internals to match its façade, including new lobbies, bathrooms and more. 8-10 Hobart Place, Canberra
Complete Refurbishment Inside and Out - Over $3.6million in capital works.
Andrew Smith
0409 600 471
andrew.smith@rwcanberra.com.au
Theo Dimarhos
0433 474 747
tdimarhos@savills.com.au
An unbelievable investment. An unbeatable location. • • •
Further your business or investment potential. Save thousands by buying not renting or make almost 8% net return as an investor! Strata suites of all sizes selling now.
In the years to come Neon House will be one of Canberra’s most recognizable icons. It currently presents an amazing opportunity for businesses and investors alike. Located in Canberra’s premier business and legal district, Neon House is minutes walk from all necessary amenity, including the ANU, Law Courts, and the Canberra GPO as well as being surrounded by cafés restaurants and shops, all of this with an eye catching and unmissable name and façade. Your business or investment will have iconic, light filled premises, with already a strong tenancy profile including leading Australian and multi-national firms, and Government bodies. Investors can expect almost 8% net returns compared with a standard 3% for residential investment. This amazing opportunity will not be repeated and is being offered well below market value. Contact our agents for further details.
Andrew Smith
0409 600 471
andrew.smith@rwcanberra.com.au
Theo Dimarhos
0433 474 747
tdimarhos@savills.com.au
Neon House is being sold at below-market prices, despite the quality of its offering. This coupled with record low interest rates enables mortgage repayments, which are far less than paying rent. Suites of between 80m2 and 800m2 are available to suit your needs. For investors, rather than buy a residential property which may return around 3% net return p.a., Neon House offers net returns of almost 8% net of costs including body corporate fees, rates and the like. Some of these suites are less than half a million dollars (the same price as a small apartment), This is a unique opportunity.
F E AT U R E
Get SuperStream ready
T
he SuperStream standard is part of the government’s Super Reform package. It will provide a consistent, reliable electronic method of transacting linked data and payments for superannuation. Background The ATO is seeking to achieve the following: • Employer compliance in paying their employees’ superannuation obligations. • A reduction in the number of lost super accounts and unclaimed monies. • Improve efficiency in the superannuation system. Timeliness of rollovers and contributions. How does Superstream affect the way contributions are made? SuperStream is a government reform aimed at improving the efficiency of the
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superannuation system, we detail below how these changes will affect you. It will require employers to pay their employees and record their payments electronically. Employer Contributions Super contributions must be made electronically to the nominated Superannuation Fund whether that be an industry/retail fund or a self-managed superannuation fund. This means that employers will be required to obtain further information from their employees or default funds to make compliant employer contributions. These data messages are lodged through a choice of solutions mentioned below. The contribution data is sent electronically in a message format to the fund, and the contribution payment is sent electronically through the banking system.
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Once the fund has received the data message and payment, they are linked by a reference number, which enables swift reconciliation and then allocation to the member. Employers will no longer be able to pay employer superannuation contributions via cheque. If employers are not compliant with the new system the ATO may enforce administration penalties on them. Personal-Concessional Contributions Superstream will not affect how personalconcessional contributions are made. They can still be made by any means such as electronic banking or by a cheque payable to the superannuation fund. They will still require you to pass the 10% rule and a member must complete the section 290-170 notice and must receive
F E AT U R E
correspondence from the trustee of the super fund before they are able to claim the contribution as a tax deduction in their tax return. This form can be found on the ATO website (search: Deduction for personal super contributions) and is required to be completed by members of both retail/ industry superannuation funds and selfmanaged superannuation funds. Non-Concessional Contributions Superstream will not affect how personal non-concessional contributions are made and hence they will able to be made via electronic banking or by a cheque made out to the superannuation fund. What do you need to do? As the Government’s SuperStream and MySuper reforms start rolling out, there’s a lot of change for employers to manage, here is what you need to know from an Employer and Employee perspective. Employers: Employers have options for meeting SuperStream compliance – either using a: • Software solution that conforms to SuperStream (in the form of an ‘Add-on’) such as upgrading your payroll software. • Service provider who can arrange SuperStream compliance on your behalf such as an outsourced payroll or other service provider. • Default fund. They would also have an electronic channel they manage or can make transitional arrangements for you. • A commercial clearing house or, for employers with 19 or fewer employers, using the free Small Business Superannuation Clearing House To collect information from a new employee or update an employee’s records in relation to their nominated or selfmanaged superannuation fund, employers can download the form by going to the ATO website and searching ‘Superannuation (super) standard choice form’. Alternatively, employers may request information from the following sources: • Direct from your default funds. • From your employees in regard to their choice funds such as a self-managed superannuation fund.
The ATO has provided employers with a checklist on their website. This may be a good guide on how to implement the superstream system and can be found be heading to: www.ato.gov.au/Super/SuperStream/ In-detail/What-you-need-to-know/Employers. Employees with: Retail/Industry Funds: • For those employees who have a default or retail/industry funds, employers will need to obtain the following information: • The employee’s tax file number (TFN) • The fund’s Australian Business Number (ABN) • Unique Superannuation Identifier (USI) • Once the employer has obtained the above information, they will have to lodge a contribution message through their choice of solution package to the employee’s nominated fund. This will allow a smooth reconciliation between fund member and employer contribution. Self-managed Superannuation Funds: • For those employees in self-managed super funds (SMSF), employers will need to obtain the following: • The employee’s Tax File Number (TFN). • SMSF ABN – currently required and is used as a fund identifier. • SMSF bank account – currently required so contributions can be paid. • Electronic service address (ESA) – so messages can be sent/ received electronically using the SuperStream standard. • If you are an SMSF trustee, you will need an ESA to be able to receive data messages associated with employer contributions sent using SuperStream. The ESA is used to identify where contribution messages for your SMSF are to be sent. You need to provide this to your employer. Contact your fund adviser or administrator for your ESA or alternatively, a list of providers can be found on the ATO website: www.ato. gov.au/Super/SuperStream. • Once the employer has obtained the above information, they will have to lodge a contribution message through their choice of solution package to the employee’s nominated fund. This will allow a smooth reconciliation between fund member and employer contribution.
Key dates and who does Superstream affect For those Employers with 20 or more employees you should already have begun implementing the new system. Employers: • Employers with 20 or more employees will have until 30 June 2015 to be compliant with the new system as long as they have made a genuine attempt to implement the process. • Employers with 19 or less employees will have until 30 June 2016 to be compliant with the new system as long as they have made a genuine attempt to implement the process. Retail/Industry Superannuation Funds: • Since 3 November 2014, retail/industry superannuation have been required to be compliant with the new system in receiving contributions or rollovers. Self-managed Superannuation Funds: Since 1 July 2014, SMSF trustees have been required to receive both electronic messages and payment when employers make contributions using the SuperStream data and payment standard. Australian accounting software firm MYOB has announced cross-certification from the ATO for its AccountRight integrated superannuation payment and reporting features, a move that will potentially save SMEs time and money. RSM Bird Cameron will work you and whichever system your business operates with to become SuperStream compliant and move to the cloud. Simply. Safely. Securely.
Bird Cameron
Chartered Accountants
For enquiries on the SuperStream system and how it will affect business, contact: Michael O’Hehir or Michelle Van Lier, Tel: 02 6217 0300. Lvl 1, 103 – 105 Northbourne Avenue www.rsmi.com.au With RSM Bird Cameron you really are... Connected for Success
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F E AT U R E
Focus on talent….. before it’s too late!
W
hile privatisation of Commonwealth Government functions continues to cause some uncertainty in Canberra, a big increase in new contract-based opportunities plus growth in the private sector are giving many employees in the nation’s capital itchy feet. As the shift back towards a more typical candidate-driven market continues, Canberra
“Now is the time to focus on retaining high performers, as well as targeting talent before it’s too late!” organisations will need to be on their toes if they want to retain and attract high-calibre talent. Simon Cox, Director at HorizonOne Recruitment observes that, “We are starting to see skill shortages re-emerging. There is already unanswered demand for technically qualified professionals in Accounting and Finance, HR, Communications and specialist Government roles.” According to ANZ Bank’s latest job survey, there were 13.5% more jobs advertised during January in Australia compared to the same month last year. Job ads on SEEK have increased for 8 months in a row, up 20% on the same time last year. “Now is the time to focus on retaining high performers, as well as targeting talent before it’s too late!” Complacency is not your friend If complacency has crept into the way your organisation approaches its most talented people, you could find your stars leaving for greener pastures. What will the 14
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impact be if your most highly-valued team member jumps ship? As the demand for quality staff heats up, and with contractor scarcity already becoming a problem, you will have to wait significantly longer to source top talent. The latest ICT Employment Trends Report has found it currently takes 83 days to fill an ICT contractor role, up from 40 days in the previous quarter. Can your business afford to lose a key employee when it could take close to three months to fill the critical gap? Probably not. Develop your organisation’s value proposition Almost one-third of Australian employees have indicated they’re looking to leave their current roles within two years, according to the 2014 Global Workforce Study. Similar studies conducted in the ACT/NSW region indicate around 35% of employees are planning to change jobs in 2015. HorizonOne’s General Manager, David Harrington, suggests that in order to attract the best talent before the market dries-up, employers need to develop “compelling value propositions”. “Employers should be asking what they can offer highly-skilled professionals – and how well their business is perceived in the marketplace. How does your workforce approach talent management? Is your marketing content engaging and well-crafted? Is your website a static one pager? If so, for younger candidates your business may as well not exist.” There are many factors that influence an employee’s decision to accept a position – strong career paths, professional development, training opportunities, and remuneration.
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Importantly though, in Australia a preference for strong work-life balance trumps wanting a higher salary or a prestigious position for 73%of younger workers, according to a recent report, Understanding a Misunderstood Generation, by a leading employer branding group. Becoming a flexible employer of choice for Generation Y, in particular, will give your business the edge as the race for talent picks up the pace in Canberra. Attracting new talent Whether you manage your own talent search or work with a specialist recruiter, having a clear talent identification and management strategy will help your business attract the very best. “The days of popping an advert onto a job board and calling a few connections are over,” You need to be far more proactive, and one of the ways to do this is to build a partnership with a quality recruiter. We can help you target both active networks of candidates as well as access passive talent – so you can stay ahead of the game.” Overall, it’s still an employer’s market in Canberra. But in a number of industries and professions, the momentum is swinging the other way. Now is the time to get be prepared.
Sourcing talent is a science, not a sales game
Contact at the team at HorizonOne Recruitment on (02) 6108 4878 or horizonone.com.au Level 1, 27 Torrens Street, Braddon
Helping you
move to the cloud
SIMPLY. SAFELY. SECURELY. We’ve already helped many businesses make the switch to the cloud. Don’t think that your systems are too unique, complex or different, because we’ll take the time to know the way you work and provide prompt, honest advice.
Tel: (02) 6217 0300 | canberracloudaccounting.com
With RSM Bird Cameron you really are… Connected for Success. B2B M AGA Z I N E.CO M . AU
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COVER STORY
MTAA Super ON TRACK TO A SUPER FUTURE
W
hen you’re the head of the superannuation fund for workers in the motor trades industry, it helps if you have an interest in cars. And Leeanne Turner – the Chief Executive Officer of the Motor Trades Association of Australia Superannuation Fund (MTAA Super) – isn’t just interested in cars, she loves them. She grew up racing her brother’s go-cart and watching motor racing from the tender age of seven. Indeed, she comes from a
motoring family - her grandfather was a mechanic, her brother is a panel beater and her son is a mechanic too. It’s a background that serves her well at the helm of the superannuation fund for some 260,000 members, many of whom work in the automotive industry. “Our members work for the thousands of Australian businesses that keep our cars on the road – the retailers, mechanics, repairers and more, so it’s important that we serve them well,” Leeanne said.
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COVER STORY
“ It is all part of what the Fund sees as its value proposition to members and employers, and indeed, to all Australians“
From strength to strength Since its inception in 1989, the Canberrabased superannuation fund has grown significantly in size and financial muscle, achieving a strong return of 7.5% per annum over the past 25 years. This February, MTAA Super crossed the $8.5 billion mark in funds under management. Last year was a particularly memorable year for MTAA Super as it celebrated 25 years in the business. Additionally, MTAA Super’s MyAutoSuper or Balanced Option was ranked in SuperRatings Top 10 list in for 2014. MTAA Super Chief Executive Leeanne Turner was awarded the Executive of the Year from Fund Executives Association (FEAL) while chair John Brumby won the Australian Institute of Superannuation Trustees’ (AIST) Trustee of the Year Award. Just months before, Philip Brown, MTAA Super’s Executive Manager, Investments, won AIST’s prestigious Investment Award for Excellence. These are high accolades for the industry fund. Leeanne attributes the Fund’s success to its innovative, results-driven culture and its focus on members. “We exist solely for our members and we never lose sight of that. From the Board down, every person in the organisation is focused on helping our members maximise their retirement savings and achieve financial security in their postworking years,” Leeanne explained. According to APRA figures released this month, the superannuation industry is set
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to reach $2 trillion in just a few months, 4th largest after the US, UK and Japan and significantly exceeding the size of Australia’s GDP (approximately $1.5 trillion). Additionally, an ageing population combined with numerous regulatory and legislative changes have intensified focus on this fast growing sector. Working to protect a fair and stable superannuation system is a key part of Leeanne’s role. “As an industry, stable policy settings are important for long-term investment propositions. Small changes can have a big impact on members’ retirement balances, employers’ responsibilities and the general public’s confidence in the system.” David Murray’s wide-ranging Financial System Inquiry (FSI) is expected to usher in even more changes to the superannuation system, where superannuation tax settings are currently skewed toward Australians with more super rather than less. Other key changes include the recent freeze in the Super Guarantee (SG) and continuing uncertainty about superannuation’s role in the award wage system. The Federal Government has frozen the SG at 9.5% until 2021. Under previous plans, the SG would have increased to 12% by 2019-2020. It will now be 2025 by the time the guarantee reaches 12%, posing serious questions about the adequacy of retirement savings for a population living well into its 70s and 80’s.
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Champion of industry Uniquely for an industry fund, MTAA Super grew out of an employer association, the Motor Trades Association of Australia. The Fund’s early support for its employers has meant it has stood side-by-side with the automotive industry as it weathers significant challenges. “Though the spotlight has been on the decline in Australian car manufacturing, the outlook for the automotive industry is not all gloom and doom. Australia has one of the highest rates of car ownership in the world, with 17 million cars on the road and close to a 320,000 strong workforce in retail, service repair and recycling.” This latter segment is a core part of MTAA Super’s employer base. “People might be surprised to know that there is a skills shortage of close to 20,000 automotive mechanics in Australia. This is driven by factors ranging from rapid technological advances, changing skill requirements and a relatively low entrylevel wage. To this end, MTAA Super has created the Auto Pathways program, aimed at educating young men and women about careers in the automotive sector,” Leeanne said. State-based initiatives like the Motor Trades Apprentice of the Year Awards also help to encourage and support individuals by recognising the hard work and dedication of promising apprentices.
M
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A SUP A T
Low fees*. Run only to benefit members. A range of investment options Award winning industry leadership
mtaasuper.com.au Motor Trades Association of Australia Superannuation Fund Pty Ltd (ABN 14 008 650 628, AFSL 238 718) is the Trustee of MTAA Superannuation Fund (ABN 74 559 365 913). You should consider whether or not MTAA Super is appropriate for you. The MTAA Super Product Disclosure Statement (PDS) can be obtained by calling us on 1300 362 415. You should consider the PDS in making a decision.
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* All fees are below the Industry Average and received a “Leading” trend assessment. Source: Latest SuperRatings Benchmark Report
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COVER STORY
Above: MTAA Super Fund Canberra office
The Fund’s strong relationship with the motor industry is also obvious through its close support for employers, mostly small- to medium-sized businesses. “We have a strong relationship with our employers and work hard to support them in managing their super obligations,” Leeanne said. In 2014, the Fund launched the one-stop MTAA Super Clearing-house, an online payment facility which helps employers pay their super contributions faster and more efficiently. Additionally, its network of Business Development Managers (BDMs) work closely with employers to keep them abreast of superannuation developments. The Fund’s BDMs regularly host workplace seminars to educate staff at employer sites about superannuation basics and make them aware of the Fund’s financial planning services. It is all part of what the Fund sees as its value proposition to members and employers, and indeed, to all Australians. “Despite MTAA Super’s close affiliation with the automotive trades, we are a public offer fund, which means any and every Australian can join. “As we are a not-for-profit fund, all of our profits are returned to members. We have lower average fees than other super funds and we don’t pay sales commissions. We offer a range of investment options across different asset classes and risk tolerances and our bestpractice governance model has been a strong foundation for our growth.” MTAA Super is one of the few industry funds to adopt the “3x3x3” Board model with equal representation from employers, employees and independents. In a recent article for the Financial Standard profiling MTAA Super’s governance model, the Fund’s Chair John Brumby mentions,“ It’s been a ten out of ten experience, allowing us to bring in 20
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new talent and skill sets and has opened up opportunities for women to get onto boards”. MTAA Super is also unique in this regard with a third of the Fund’s Board composed of women. MTAA Super also invests broadly on behalf of its members. It invests heavily in nation-building infrastructure assets such as Flinders Ports, Sydney Airport and Brisbane Airport as well as significant commercial property assets in Melbourne, Sydney and Canberra, which it describes as a win-win for both members as well as the Australian economy. “These types of investments deliver strong, reliable, long-term returns for the Fund’s members while being less exposed to the risks compared to listed assets. They also allow ordinary working Australians to hold a stake in key infrastructure assets that would otherwise be unavailable to them,” Leeanne outlined. Winning culture Leeanne says MTAA Super’s ethos as an all-profit-to-members fund has helped to shape its relations with its employees. Much of MTAA Super’s success has been driven by its strong, collegial staff culture. It’s a team-driven workplace where people care about each other, both professionally as well as personally. “We believe that a successful workplace is one where employees are inspired to achieve strong professional results and have the personal support to do so,” said Leeanne proudly. Being a good corporate citizen is important to MTAA Super. The Fund in partnership with Lifeline Australia created the ‘readthesigns,’ program in 2004 which promotes help seeking behaviour and suicide prevention among young male apprentices. Suicide currently accounts for 25% of all
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deaths for males aged 15 to 24. The program is implemented via a network of state-based training centres where apprentices learn about the importance of mental health and coping strategies to deal with workplace stress, depression and anxiety. SUPERANNUATION: A KEY ISSUE “Superannuation for most people is their biggest investment outside the family home. Yet most people aren’t tuned into their super in the same way as they might be to their mortgage. This is an industry-wide challenge and we need to explore effective ways to help people strengthen their understanding and engagement with their super,” Leeanne said. “This is even more important given the ongoing legislative changes to super and the fact that adequacy of retirement savings continues to be a significant issue. It is critical that Australians understand the importance of their super. This can mean the difference between retiring before 70 or working long past it.” Contact MTAA Superannuation Fund Phone: 02 6273 4333 Email: info@mtaasuper.com.au mtaasuper.com.au
We value our private clients just as much as our contract work. We can provide you with an extensive quote for work such as landscape lighting or switchboard replacements and give you an over the phone estimate for smaller works such as installation of new appliances, replacement of lights. Some of our work: Manuka Oval – Stadium Lighting Action Buses – Upgrade refueling station Academy of Science – LED Lighting ANU – Switchboard upgrade Fellows Oval – Sports Lighting Woden Park – Redevelopment Telstra Tower – LED Lighting
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ACCOUNTING
Avoiding the usual GST errors by Rhys Kyburz, RSM Bird Cameron Chartered Accountants
BUSINESS ADVISORY
'Do you want fries with that?' Considering the value of upsold services by Tony Lane, Vincents Chartered Accountants
BUSINESS LAW
Crowdfunding by Mark Love, Bradley Allen Love Lawyers
CORPORATE GOVERNANCE
Funding uncertainty: Part 2 by Phil Butler, Australian Institute of Company Directors
BANKING
Superstitions – From lucky numbers to unlucky days by Paul Lanzon, ANZ Mobile Lending
DISTRIBUTION LOGISTICS
Direct mail – the forgotten marketing tool? by Matthew Jones-Angel, National Mailing & Marketing
FAMILY LAW
Cost orders and legal fees in family law matters by Stuart Cameron, Dobinson Davey Clifford Simpson Lawyers
FINANCIAL PALNNING
Are EFT's a better option by Luke Smith, Dragonfly Financial Services
INTELLECTUAL PROPERTY
Certification trade marks by Shaun Creighton, Arete Group
PROPERTY INVESTING
The countdown to the end of financial year… by Julie Cumming, Hatch Property Australia
RECRUITMENT
Investing in your success by Jim Roy, Hays Recruiting
WEALTH CREATION
Redundancy and CSS by Lee Eaton, Dixon Advisory
WEBSITES
Maximising conversions online by Sam Gupta, Synapse Worldwide
ACCOUNTING
BUSINESS ADVISORY
Avoiding the usual GST errors
by Rhys Kyburz
It is common for businesses to make GST errors in their BAS. The majority of these mistakes are unintentional. The ATO recently reviewed all of the BAS adjustments made as a result of auditing and revealed that over 80% were the result of inadvertent GST mistakes. Examples of common mistakes include: clerical errors such as duplications or accidental omissions, sales being incorrectly recorded as GST free, adding invoices after a period is closed, or accidentally recording a GST-free sale as taxable. Getting your BAS right the first time around can save your business time and money, and ensure that you receive your refund as soon as possible. Make sure that the ATO has your bank details on file so that the refund can be deposited directly into your bank account. Regular and meticulous bookkeeping can make a significant difference to the accuracy of your BAS. It is also important to retain any relevant documentation including tax invoices for purchases that included GST and all electronic records. The ATO has indicated that it will be lenient towards businesses with mistakes in the BAS unless there is an indication that the business has been reckless in their record keeping, or have deliberately provided misleading information. Here are some tips for ensuring accuracy on your BAS: • Confirm that all expenses and sales were incurred within the specified tax period • Do not enter cents into your BAS (whole dollar amounts only) • Ensure that none of the expenses claimed were private expenses • Only claim the GST that is on the invoice (relevant to insurance) • Double check that the amount you have calculated on your BAS is equivalent to what you expect to receive as a refund • Lodge your BAS online, as the online portal will pick up on many common mistakes If you have made any errors on your BAS then you have the option of simply correcting them on your next BAS yourself. This will not subject you to any liabilities or general interest, and is generally much simpler than redoing the past BAS. However, this is not possible if your error is outside the correction limits. If you are outside the correction limits you will need to amend the BAS in the period that relates to the correction. Business categories that have been identified as being at high risk of GST errors include construction, professional services, wholesale trade, retail and logistics.
Bird Cameron
Chartered Accountants
If you require assistance with your GST calculations contact Rhys Kyburz, Director at RSM Bird Cameron, on rhys.kyburz@rsmi.com.au or 02 6217 0311
By Tony Lane
'Do you want fries with that?' Considering the value of upsold services
We all recall and cringe at the famous fast food chain mantra – ‘do you want fries with that?’ The frustration often conjured by the notion of ‘up-selling’ belies the real problem – one of perception. A feeling that you’re being sold something that you don’t want or need, or is of little or no intrinsic value, is uncomfortable. This is no less the case for professional advisory firms. Clients who don’t understand the value of additional services offered equate them with the ubiquitous ‘set of free steak knives’ – they’ll take them as long as they’re free. How then do (the collective) ‘we’ as professional services firms help clients understand the value of services provided over and above those instructed or sought? The ‘carrot and stick’ approach is most often used: the ‘stick’ deployed where clients are advised that they must do such and such, or else so and so will happen. However, this approach does little to engender client ‘buy-in’ to the rationale for the additional work or services. A far more enduring approach is ‘the carrot’ – to emphasise the upside and highlight the anticipated benefits. “OK,” you say, “that’s obvious.” However, in our recent experience it is not quite so obvious as one might expect. The reason for this appears to stem from directors of some companies wanting what is cheap and expedient, as opposed to what is in their best interests. Consider this brief example. A client approaches their accountant for year-end financial statements and tax return work. That work is diligently performed and the accountant makes suggestions for business improvement. With a small amount of extra work, it is put to the client that there could be ‘significant gains available to the business’. However, those services are declined by the client on two bases – the first being cost and the second being the time required of the client (not the accountant) to devote to the provision of additional information/assistance. The Courts have looked unfavourably on directors who, when faced with the opportunity of better understanding their company’s affairs, chose the expedient route. In the 2011 case against Centro directors and executives – Australian Securities and Investments Commission v Healey (2011) – Justice Middleton held that directors must “take a diligent and intelligent interest in the information available to him” and to “apply an enquiring mind to [their] responsibilities”. Acting on advice is the second stage – seeking quality advice is paramount.
Tony is a Senior Manager at Vincents Chartered Accountants and provides specialist advice to clients in the areas of insolvency, business risk and financial conflict and dispute resolution. For more information, contact Vincents, Level 7, AMP Tower, 1 Hobart Pl, Canberra City. T: 6274 3400 F: 6274 3499 E: tlane@vincents.com.au W: www.vincents.com.au
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CORPORATE GOVERNANCE
BUSINESS LAW
by Mark Love
Crowdfunding
Traditionally, there have only been two methods by which start-up businesses could raise the funds for their project. Business owners will be familiar with “debt” and “equity” – either take out a loan, or sell a share of your business. In this sphere, the internet is threatening to disturb the status quo. Here it takes the form of “crowdfunding”, which is essentially raising money online from the public to enable development of your idea or product. Crowdfunding has developed a prominent profile in the last few years, with the media reporting exuberantly on items such as watches, video games and virtual reality headsets that have raised tens of millions of dollars through crowdfunding platforms such as Kickstarter. Yet in Australia (in contrast to many other developed nations) most forms of crowdfunding are not yet legal or not regulated differently to any other form of capital raising. It is unregulated if the creator is raising money online for their project through mere “donations”; however if the arrangement is such that the people providing the funds are promised something in return for their money (such as a share or a promise to repay the money), then the Corporations Act 2001 applies along with its disclosure, reporting, and licencing requirements. The focus in Australia right now is on ‘equity crowdfunding’ – selling equity in your business through a crowdfunding platform with lightened regulatory requirements which has the potential to unlock a huge pool of investors willing to sacrifice their pocket change in the hope of a windfall or a role to “facilitate” the creation of something. In the current political climate, the implementation of an equity crowdfunding regime has some level of bipartisan support, although a legislative proposal is yet to be proposed. Of course, developing an effective regime requires a fine balancing act: the economic importance of supporting the investment of startup businesses by reducing compliance costs must be tempered by maintaining an appropriate level of protection to the layperson investor and against fraudsters. As matters currently stand, “crowdfunding” other than by “gift” requires Corporations Act compliance. We doubt that situation will last for much longer. With hope, the Federal Government will use the regulatory models of other nations to hone a model we ultimately implement ourselves. But one thing is for certain – equity crowdfunding will soon be a reality, and the benefits to fledging business will be manifold, as will the risks to the unwary and the easily duped.
Mark Love, Legal Director, Business Law 9th Floor, Canberra House, 40 Marcus Clarke Street, Canberra ACT 2601 E: mark.love@bradleyallenlove.com.au T: 02 6274 0810 | www.bradleyallenlove.com.au
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by Phil Butler
Funding uncertainty: Part 2
I referred in my last column to the challenges facing the NFP Sector regarding uncertainty of funding and the ensuing implications. This issue continues to be of great concern for the sector and following on from the briefing held by AICD in late February, here are some more tips for organisations facing this predicament. While many of the tips listed below refer to the NFP sector, many will also be just as relevant for the private sector. Understand your financial position While it seems blindingly obvious, it is imperative that directors (and executives) really understand what their financial position is and what the possible ramifications are. For example, an organisation may have a very healthy bank balance, however these funds may be “tied” to particular government grants or other “donor restricted” funds. In such instances, the traditional ratios that directors usually employ may be unsuitable. Similarly, directors should have a very good understanding of the full extent of the liabilities they may face in the event of needing to wind-up the NFP. Have the full liabilities surrounding staff been brought to account? What leases are in place, and what is their value? Are all government grants fully acquitted or what value may need to be handed back if the organisation is wound up? Preferably this analysis is done well in advance of the looming difficulties, however this is often not the case. In what is often referred to as the “Zone of Insolvency”, directors and officers should pay particular attention to the potential financial impact of any decisions they make on behalf of the organisation. Exploring Opportunities Many organisations should look at broadening funding sources. Ideally, this should be done earlier rather than later, however it is never too late to investigate potential funding which may have less “strings attached”. Increasingly, mergers are being viewed as being a potential saviour for organisations facing this uncertainty. While such merger discussions are becoming far more common, boards need to understand the full implications of such changes. The cultural challenges of mergers are often greater than anyone ever expects, so those considering mergers need to have their eyes wide open. The final suggestion is to ensure that organisations remain true to their mission. There may be times when an organisation should try to do everything possible to survive. However there may also be times when an organisation would be better to “get out of the way” and let other organisations provide the service instead. For more information on this important topic visit the NFP Resource Centre on AICD’s website: http://www.companydirectors.com.au/ Director-Resource-Centre/Not-for-profit
Phil Butler is Manager - NFP, Public Sector & ACT at the Australian Institute of Company Directors. Level 3 54 Marcus Clarke Street Canberra T: 02 6132 3200 | www.companydirectors.com.au
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BANKING
Superstitions – from lucky numbers to unlucky days ANZ Mobile Lender Paul Lanzon
You might not think finding the right property has much to do with luck, but around the world, there are countless superstitions people believe that could influence their decision to buy a property. From numerology to rainy days, here are a few interesting beliefs regarding property from around the world.
NORTH AMERICA - Bringing an old broom to a new house is said to bring bad luck.
UNITED KINGDOM – Putting shoes on a table in your new home is often considered bad luck (or at the very least will make your new home dirty).
AFRICA - Sweeping your home at night could sweep away good fortune.
CHINA - Properties that sit on curved roads or T-intersections are reportedly unlucky.
CHINA - The number eight is a sign of good luck and prosperity, due to its similarity to the Cantonese or Mandarin word for wealth. Houses with the number eight or those with eight in the listing price could perform better as a result.
CHINA – Conversely, the number four bears similarities to the Cantonese or Mandarin word for death, and is considered unlucky.
Sources: 1. ‘13 Superstitions about house and home’, Realestate.com.au http://www. realestate.com.au/blog/13-superstitions-about-house-and-home/ 20th June 2014 2. ‘13 Lucky Superstitons for your home in 2013’, Houselogic.com http://www.houselogic.com/ blog/plants-trees/home-superstitions/# 20th June 2014 3. ‘Property superstitions: would you buy a house on Friday 13?’, Telegraph.co.uk http://www.telegraph.co.uk/property/ buyingsellingandmoving/10330712/Property-superstitions-would-you-buy-a-house-onFriday-13.html 20th June 2014 4. ‘Lucky numbers and other real estate superstitions’, Forbes.com http://www.forbes.com/sites/zillow/2013/09/13/lucky-numbers-and-other-realestate-superstitions/ 20th June 2014 Disclaimer: The information is in summary form and does not purport to be complete. It is intended as a general guide only and is not a substitute for professional advice. The information does not take into account your personal needs and financial circumstances and you should consider whether it is appropriate for you.
PHILLIPINES – Scattering coins around a new home could invite financial prosperity.
INDIA - Moving into a home on a Friday or Saturday, or when it’s raining is considered bad luck. In India, Thursday is considered the best day to move in.
GLOBAL – There are many theories as to why the number 13 is unlucky, but whatever the case may be, many buyers avoid that number entirely. It’s such a wide spread belief that many hotels don’t even consider a “13th floor”.
For more information, contact Paul Lanzon, ANZ Mobile Lender, M: 0422 007 005 F: 02 8456 6021 E: lanzonp@anzmortgagesolutions.com This Mobile Lender operates as ANZ Mortgage Solutions Canberra Inner South & Queanbeyan/Jerrabomberra, ABN 74 122 012 720 an independently operated franchise of Australia and New Zealand Banking Group Limited (ANZ) ABN 11 005 357 522. Australian Credit Licence Number 234527. ANZ’s colour blue is a trade mark of ANZ. Terms and Conditions, fees and charges apply. All applications for credit are subject to ANZ’s normal credit approval criteria.
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DISTRIBUTION LOGISTICS
by Amy Ellis
Direct mail – the forgotten marketing tool?
Mail is tangible, reliable and versatile. Although the general thinking in many circles seems to be that direct mail is an antiquated and expensive form of marketing, there is mounting evidence of an increasing respect for the humble letter, brochure or catalogue received in the home or office letter box. People who use email regularly have become savvy at blocking sales messages with advanced filters. In fact many reports and much anecdotal evidence suggest that consumers are now more likely to open and read marketing, advertising and other information received in the mail compared to opening and reading unsolicited emails. We have become overwhelmed by the continuous barrage of emails. Direct mail is highly targeted and can be tailored for a specific audience, thus ensuring customers only receive offers or information that are of interest to them. By targeting as opposed to randomly pitching your product or offer you will spend less and achieve a far more effective outcome. Design, size and presentation are critical and can really make a huge impact on your audience. The world of technology has in fact increased our love of tangible things, where receiving something in the post has become somewhat of a novelty. A variety of formats and options, from postcards and brochures to magazines and catalogues, make direct mail a suitable strategic component for almost any campaign. Contrary to popular belief, direct mail doesn’t have to be boring! Thanks to sophisticated marketing software and digital printing, savvy marketers are personalising messages and engaging prospective customers in incredible ways. Envelopes that catch the eye and engage the reader with customised teaser copy, highly customised letters that include handwritten notes and vivid brochures/inserts that showcase further details, capture and engage readers. Building a cohesive marketing campaign, that includes both traditional approaches, like direct mail, and new technology, will ultimately increase the impact of your brand by enabling your target audience to experience a tangible and exciting range of media rather than the standard barrage of emails. When balanced with the right creative and optimal data, direct mail can deliver more than just a meaningful piece of mail, it can boomerang a powerful return on investment and bring traffic to your online efforts. Online marketing has become the new and shiny toy, but don’t forget direct mail is still a reliable way to deliver compelling messages on an individual level. Together, direct mail and online marketing offer the perfect combination to turn prospective buyers into loyal customers.
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Your independent warehouse, mail house and distribution specialists... P: (02) 6269 1000 www.nationalmailing.com.au
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FAMILY LAW
by Jacquelyn Curtis
Costs orders and legal fees in family law matters
The cost of litigation is often the most important non-legal issue parties want to know about when deciding whether to take a matter to Court. Litigation is more expensive and usually takes longer than resolving a matter out of Court. While the majority of matters in the family law jurisdiction resolve by agreement, and most family lawyers work towards achieving this in the first instance, a portion of matters require the intervention of the Court to determine issues in dispute. Sometimes we hear clients speak of “getting the other party to pay my costs” or “when he/she loses, they will have to pay my legal fees.” In family law proceedings, the default principle is that each party bears their own legal costs. Judges do have a discretion under the Family Law Act 1975 to make orders requiring one party to pay the other party’s legal costs. Costs orders may be made where the circumstances justify it. To determine whether a costs order should be made, the Court takes into account: • The financial circumstances of the parties • The conduct of the parties to the proceedings • Whether proceedings were necessary because a party had failed to comply with previous Court Orders • Whether one party has been “wholly unsuccessful” in the proceedings • Whether a party has made written offers to settle the proceedings and the result of the proceedings is equal to or better than that offer • Any other relevant matters. Where a cost order is made, it is usually made as assessed by a schedule of costs under the relevant Court Rules or on a party-party basis. This means the costs were necessarily incurred and reasonable. Both types of costs orders will usually be less than the actual costs the litigant incurred. In exceptional circumstances, indemnity costs may be awarded for payment of all costs reasonably incurred. Even in cases that don’t go to Court, parties should weigh the cost and benefit of concluding matters at an early stage against their future legal expenses if it were to continue, when making decisions about process or settlement. In property matters, out-spending your eventual entitlement from the family law property division on legal fees is an unfortunate outcome and one which can be avoided. Good lawyers will not only be upfront about their fees and disbursements, but also provide clients with sound advice about the substance of their matter and commercially focussed advice, to assist parties in making settlement decisions. For example, Annie might be entitled to receive $25,000 from her husband as a final property settlement, but her husband is only offering her $20,000. When thinking about that offer, Annie should consider that the differential of $5,000 between her proposal and her husband’s, could potentially be spent on legal fees to take the matter to Court.
Jacquelyn Curtis is an Associate of the firm 18 Kendall Lane, New Acton Canberra City ACT 2601 T: (02) 6212 7600 E: mail@ddcslawyers.com.au www.ddcslawyers.com.au
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FINANCIAL PLANNING
by Luke Smith
Are ETFs a better option?
Superannuation investment has come a long way over the years and traditional managed funds are not the only way to gain an exposure to the market. A cost effective alternative is to use Exchange Traded Funds or ETFs. So what is an ETF? Exchange Traded Funds (ETFs) are one of the fastest growing investment products in the world, offering investors a simple and costeffective way to achieve diversification in their investment portfolios. ETFs blend the benefits of both managed funds and shares. They offer efficient, low-cost diversification, combined with flexibility and liquidity. ETFs can be bought and sold on a stock exchange like shares. And, like managed index funds, they contain a diversified portfolio of securities designed to track specific indices. Some indices are narrow, tracking a single market sector with minimal holdings, while others are as broad as the entire market with hundreds of holdings. This means investors can use ETFs to gain the exposure and diversification they want, quickly and simply. The cost of an ETF can be a lot lower than traditional managed funds, historically a retail managed fund could charge between 0.80% and 2.00%, depending on the type of investment maintained. The cost of an ETF can be as little as 0.07%, with costs generally ranging from 0.20% to 0.60%. The cost of the ETF would be impacted by the sector it targets, the provider and the underlying portfolio. This low ongoing cost makes them a very attractive alternative to traditional managed funds. Another advantage of ETFs is that the investor may also benefit from ongoing income distributions, similar to that of a listed share. In addition, the holder of an ETF could also receive franking credits generated by the underlying investments. This ensures a tax effective income stream is received over time where available. If you have a portfolio of managed funds that charge higher ongoing costs each year, considering an ETF may be a good way to maintain your diversification whilst reducing expenses. They can be used for investment in your own name, a good personal superannuation fund as well as Self Managed Superannuation Funds. For more information on ETFs and how they could be a better option for you and your portfolio, come and see the team at Dragonfly, because after all you don’t know what you don’t know. General Advice Warning:
The information provided in this document is general information only and does not constitute personal advice. It has been prepared without taking into account any of your individual objectives, financial solutions or needs. Before acting on this information you should consider its appropriateness, having regard to your own objectives, financial situation and needs. You should read the relevant Product Disclosure Statements and seek personal advice from a qualified financial adviser.
Luke Smith, Director AFSL No: 237590 T: 02 6273 3118 F: 02 6273 1118 E: luke@dragonflyfs.com.au M: 0413 311 999 GPO Box 1961 Canberra ACT 2601 www.dragonflyfs.com.au
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INTELLECTUAL PROPERTY
by Shaun Creighton
Certification trade marks
Certification trade marks are marks that indicate a certain good or service meets a particular standard. The certification mark might indicate features like: • The quality of the goods; • The type of material the goods are made from; • The geographic origin of the goods; • The purpose of a particular good or service. Usually certification trade marks are logos that can be applied to goods or services that meet its guidelines. Well known examples include the Heart Foundation tick on foods meeting certain nutritional guidelines, the Australian Made logo for goods meeting those particular guidelines or the WiFi Zone logo for public places with certain types of WiFi access. Since certification marks do not give exclusive property rights to an individual trader, they are often used by representative bodies or industry groups who want to regulate a particular quality scheme. The guidelines outlining the use of a particular certification trade mark must be publically accessible, and any good or service meeting those requirements must be permitted to use the mark. Usually companies owning a certification trade mark will require some form of licence fee be paid for use of that particular mark. How do certification trade marks differ from regular marks? The purpose of a regular trade mark is to serve as a “badge of origin” and indicate the trade source of those particular goods or services. Certification trade marks are different. They do not denote a trade origin, but a particular feature or quality of a good or service. Unlike a regular trade mark, certification marks must be lodged with a set of rules governing the certification process. These rules must be assessed and approved by the ACCC before the certification mark can be accepted for registration. These rules must include: • The standards that must be met; • How it will be decided whether these standards are met; • Who can assess these standards; • A dispute resolution procedure. What are the benefits of registering a Certification Trade Mark? A registered certification trade mark brings with it the benefit of legitimacy. All certification trade marks have been approved by the ACCC, and consumers can be sure the mark is being applied fairly and in line with stringent quality standards. Additionally, for some organisations, certification trade marks can become a valuable source of income via licence fees. How can we help? Our trade mark attorneys and lawyers have extensive experience in all aspects associated with the Certification Trade Mark process, from filing applications, drafting rules governing use of the mark, and commercialising the certification trade marks through suitable licensing arrangements.
Visit or contact us at W: www.aretegroup.com.au or www.atrademarks.com.au E: shaun.creighton@aretegroup.com.au T: 02 6162 1639 or 1800 705 680
PROPERTY INVESTING
by Julie Cumming
RECRUITMENT
The countdown to the end of the financial year…
It’s hard to believe we are already into March 2015. As the end of financial year approaches, now is the time to get your strategy in order. Property takes time to transact - so allow plenty. 1. Taxation and selling your investment property. Speak with your accountant to understand the taxation implications of buying or selling property. Timing possible implications can make a significant financial difference. Depending on your tenants and how they present your property, you may be better to wait until the lease expires before selling. Furnished homes generally get a better result, so consider getting it styled if the lease has finished. 2. Depreciation schedule. Provide a depreciation schedule to your accountant. 3. Tenancy and leases. Be aware of the current status of your tenancy agreement. Ensure it is up to date and has been renewed, the rents have been adjusted and any general property maintenance attended to. 4. Property management agreement. This is also a good time to review your property management agreement. I recommend investors maintain an active relationship with their property manager so they are known in a personal sense rather than by their property address. While it requires a little more effort, it generally pays dividends. 5. Insurances. Asses your insurances and renewal dates to ensure you are up to date and realistic about your assets and personal protection. Have your circumstances changed? Have you made the appropriate changes to your insurances and your Will? 6. Statutory charges holding costs. Be aware of changes to rates, land tax, water charges etc. Holding costs have a big impact on the bottom line for your investment. These are all subject to change and being informed allows you to update your figures to reflect the performance of your investments. 7. Maintenance and improvements. Be strategic about the timing of general maintenance and improvements to maximise taxation benefits. Be sure that you understand the difference between repairs and maintenance and improvements as the taxation laws treat these very differently. Get qualified advice before proceeding. 8. Accounting advice. Many investors never achieve their financial goals. Why is this so? Setting goals and allowing time to be spent focussing on the outcome you are seeking is essential. If your strategy is devoid of energy and effort, your goals will have no momentum.
by Jim Roy
Investing in your success
Would you cut your base salary to potentially earn more in a performance-related bonus? Australians are more risk averse than our New Zealand neighbours when it comes to our salary package, with a new survey by recruiting experts Hays showing that 59 per cent of Aussies would take a base salary cut for the opportunity to potentially earn more through performance-based bonuses, compared to 68 per cent of New Zealanders. In an online poll of 1,510 people, Hays found that New Zealanders seem to be more secure in their belief that their performance could earn them more dollars, suggesting that we are more risk-averse than our Kiwi neighbours. Understanding how people weight the various elements in a compensation package can be a great attraction and retention advantage. After all, a compensation package consists of more than just salary. However there is no one-size-fits-all approach to compensation packages and employers should work with a candidate and their recruiter to tailor an offer that has the best chance of retaining them long-term. This is especially important for employers in industries or sectors where certain skills are in short supply. Performance-related bonuses offer advantages to both employers and employees. A performance-related bonus rewards employees for good performance and can be very motivating for employees as they have a vested interest in achieving a top result. For employers, this can motivate their team to work at peak efficiency. Such bonuses work best when both the employer and employee are aware of the objectives that need to be met in order to qualify for the bonus, which is why they are often tied to performance appraisals. The minimum performance expectations must be made clear though, otherwise an employee may not feel they are being rewarded fairly for their performance. Communication is essential to make sure both sides are fully aware of the objectives that need to be met in order for performance-related bonuses to be awarded.
“The key to happiness is having dreams. The key to the success is making your dreams come true”
Julie M Cumming, Director, Hatch Property Australia M: 0404 453 397 E: julie@hatchproperty.com.au www.hatchproperty.com.au
QUALIFIED PROPERTY INVESTMENT ADVISER
QPIA
Jim Roy, Regional Director 5th Floor, 54 Marcus Clarke Street, Canberra T 02 6112 7663 | F 02 6257 6377 E canberra@hays.com.au
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WEBSITES
by Sam Gupta
Maximising conversions online
Gone are the days when you could simply rely on advertisement campaigns alone to generate sales. The sales process has become much more complex now and your website plays a critical role in it. In the old times, you would come up with a package deal, run a TV, radio or print ad and generate traffic to the website and hope that some of it converts. Some obviously buy, but what happens to those who don’t? The problem is that a lot of resources and efforts are wasted in generating traffic and not enough in engaging visitors or building relationships. This can make the cost of acquiring new customer very high. Customers nowadays have many options from which to choose. They can get roughly the same kind of product or service at roughly the same kind of price from someone else. They don’t just blindly trust an advertisement anymore, they like doing some research before they commit to buy. There is too much noise out there. What it comes down to is the type of relationship you have with your potential customers. The stronger the relationship, the better the chance of conversion. The idea is that rather than just focusing on the traffic that is ready to buy from you, try to also look after people who are interested in your product but are not ready to buy just yet. Try to capture the ‘not-so-hot’ leads and nurture them via your CRM and automated marketing. Depending upon your product or service, you can employ a variety of short term and long term lead nurturing strategies to build a strong relationship with your customers. This way, when the customer is ready to buy, you are one of the first businesses in their mind. It will simply increase the chances of conversion. Similarly, existing customer traffic is often taken for granted by many businesses. Integrate your website with the CRM and email newsletters to build relationships with your existing customers. It all comes down to personalisation. For example, a CRM can trigger an email to your sales when customers visit certain pages multiple times or show interest in another product. By personalising the messages and building strong, genuine relationships, you will be able to increase the conversion as well as the likelihood of repeat business and referrals. If you would like to know about how your business can grow online, give me a call and we can discuss it over a coffee.
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Sam Gupta is the managing director of Synapse Worldwide. Sam would love to hear your thoughts on this advice column. Please contact him on 1300 785 230 or admin@synapseworldwide.com
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Glenn Keys to take over as Chair of Canberra Business Chamber CHRIS FA U L K S
CEO CANBERRA BUSINESS CHAMBER
GLENN KEYS, CHAIR CANBERRA BUSINESS CHAMBER
T
he election on 19 February 2014 of Mr Glenn Keys, as Chair of the Canberra Business Chamber Board, was another important step in the successful coming together of two well-known and respected business organisations - Canberra Business Council and the ACT and Region Chamber of Commerce and Industry - to form Canberra Business Chamber, a single strong voice for business in Canberra and the region. Glenn is the 2015 ACT Australian of the Year, a successful entrepreneur and philanthropist and the Executive Director and co-founder of Aspen Medical. Aspen provides flexible outsourced healthcare solutions and specialised medical services to remote and inaccessible areas around the world. It has been headquartered in the ACT since it was founded in 2003 and now has more than 2000 employees. Glenn recognises that Canberra offers a number of unique competitive advantages for businesses to establish and grow here – being co-located with the biggest customer in the southern hemisphere (the Australian Government), connectivity to major capital cities, a well-educated population, a great digital network providing the opportunity to develop really innovative solutions that can be exported anywhere and government programs that increasingly recognise and support the private sector. His vision is that, now that we have a single platform, Canberra Business can provide a clear, strong voice from the business community on the direction for Canberra into the future. Concept Design Revealed For New Convention Centre
The ACT Government has released the winning concept design for a new convention centre to be built near City Hill. 32
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The concept was created by Guida Moseley Brown (GMB) and Rome-based architect Massimilliano Kuksas who, between them, have designed award-winning local projects like Canberra International Airport and Parliament House and international projects like the Shenzen International Airport. Selecting this initial design is an important milestone in making the new convention centre “investment-ready” by 2016. Next steps are the finalisation of a reference design and the completion of the business case for the new convention centre. Why is building a new convention centre and expanding our capacity to host business events in Canberra so important to business and our economy? The Value of Business Events to Australia Report released by the Business Events Council of Australia (BECA) in February 2015 demonstrated just how important business events are to the ACT economy: • Over 1,698,628 people (4.6% of the total for Australia) attended more than 15,666 business events in Canberra in 2013-14 (3.8% of the total business events for Australia). • These business events generated $898 million in direct expenditure (3% of the total for Australia); $427 million in direct value added (3% of the total for Australia) and 5,495 direct jobs (3% of the total for Australia). • In addition to the direct contribution, business events had a flow-on effect to the ACT economy making the total contribution (direct + indirect) $612 million Gross Value Add (3% of the total for Australia); $724 million Gross State Product (3% of the total for Australia) and 6,855 jobs (3% of the total for Australia). The Australia Forum Scoping Study Report released in 2011 indicated that with a new, larger and more modern Convention Centre, Canberra could treble the number of conferences, delegates, direct and indirect revenue and jobs from business events within 3-5 years. In terms of diversifying and growing our economy, investing in a new Convention Centre is a real no-brainer!
Planning for your retirement? Talk to an expert about your CSS – offer ends 31 March The better prepared you are for your retirement, the greater your chances are of finding fulfilment. Our clients have taught us that successfully planning for retirement can be as satisfying as living it. Dixon Advisory has dedicated 28 years to preparing Canberrans for a better retirement and we specialise in providing redundancy advice for CSS members.
If you are contemplating or facing redundancy, awareness of the financial options available to you is vital during this critical transition from your working life. Call us before 31 March to book your obligation free discussion. LEE EATON DIRECTOR, HEAD OF CANBERRA FINANCIAL ADVISORY
1300 264 485 dixon.com.au
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G2B
MINISTER’S MESSAGE
Making life easier for businesses in the ACT ANDREW BARR
CHIEF MINISTER TREASURER MINISTER FOR URBAN RENEWAL MINISTER FOR TOURISM AND EVENTS
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n the first sitting week of the ACT Legislative Assembly for 2015, I announced the government’s next reform- the introduction of a Local Industry Advocate to make sure that local businesses get a fair go in government procurement of goods, services and capital works. Part of the Local Industry Advocate’s role will be to work with government directorates to ensure that work that can be done by local businesses stays in the region, building capability and economic activity in our city. Local industry has told me they don’t need special advantages. Rather, they want a level playing field when they compete for government contracts. I am pleased that the industry stakeholders with whom I have consulted have been very positive about the new role of Local Industry Advocate. They have provided feedback that this reform will improve business confidence, and as we know, improved confidence is an important economic indicator. When businesses are more confident, they are more likely to invest and employ staff. The first job for the Local Industry Advocate will be to work with local industry to recommend where improvements can be made to government procurement processes. In particular I would like the Advocate to identify areas where requests for tender, policies, and even legislation, are geared to larger companies. This makes it more difficult for smaller, local firms, which might have more innovative solutions to offer. This announcement forms part of a suite of reforms the ACT Government is implementing to assist local businesses. One of my first decisions I made as Chief Minister was to establish a new ‘one-stop shop’ called Access Canberra- aimed at better connecting small and large businesses to government services. Access Canberra aims to be a leader and enabler for businesses, to encourage our local organisations to innovate, invest and grow whilst continuing to provide appropriate protections for citizens and the community. While still in its early days, the service is available to small and large businesses, community groups and individuals seeking access to permits, approvals and licenses needed to establish a new business or event in the Territory.
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During this establishment phase, Access Canberra is engaging with individuals and organisations to discuss how engagement with ACT Government directorates can be streamlined. Early feedback I have received has been very positive. Having an agency such as Access Canberra will enable us to quickly identify inefficient regulations and provide advice on changes to regulations that are needed. Already Access Canberra is making a difference to business. Through co-operative work across many agencies the process of applying for outdoor eating permits has been made much easier for business. The ACT Government web page has a simple one click approach to finding out how to make an application if you are the owner of a business which is seeking outdoor dining options. These are just two examples of how the Labor Government is making life easier for businesses in the ACT. I expect to see many more in the coming months as we continue to consult and engage with the sector.
For information phone: (02) 6205 0011 fax: (02) 6205 0157 email: barr@act.gov.au post: GPO Box 1020 CANBERRA ACT 2601 www.parliament.act.gov.au
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