AUGUST 2010 ISSUE 51 $4.95 inc. GST www.b2bincanberra.com.au
A Logical
Partnership:
ACCOUNTING AND WEALTH MANAGEMENT
WHO IS PART OF THE CIA?
FIND OUT INSIDE
Profile: Jas Hugonnet
GALLERY OF AUSTRALIAN DESIGN
KREMLIN BAR SET TO RE-OPEN ISSN 1833-8232
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Business In Focus Month will be held for the second time in
September 2010 With a strong and resilient economy, the nation’s best educated and most productive workforce, Canberra’s business sector is dynamic and evolving. With around 25,000 businesses across the Territory, more people are employed by private enterprises than the public sector. Business In Focus Month is an annual program of business events for the ACT. Local businesses can take advantage of events to access the information, skills and service providers they need to assist them to build better businesses. This September, Business In Focus Month will help small business connect, create and grow with a wide variety of events throughout the month. Find the latest information about events in September to support your business by visiting www.business.act.gov.au and follow the Business In Focus Month September 2010 link, or free call 1800 244 650.
CONNECT
CREATE
GROW your business
Check out these and more events during the month: Business In Focus Month 2010 Launch
Going Green – What’s in it for you?
Every business needs a vision to succeed, but vision does not always come with an easy path to reach it. Hear one of Australia’s most celebrated and most successful short film-makers, Adam Elliot, share his story of dream and vision. Through years of success without wider recognition, numerous obstacles, rejections, limited funding, long hours, challenging work conditions right through to winning the Oscar, and beyond.
Increase your business income and help the environment! Come along to this exciting forum for small to medium sized businesses and hear about how other local businesses have adopted environmentally sustainable practices that have built their business profits. The ACT and Australian Governments will also be there to provide information on programs currently available to support green business practices. Presented by Regional Development Australia ACT Committee.
Date:
Wednesday 1 September
Time:
5.15 for 5.30pm -7.30pm, followed by networking
Cost: Venue:
Date:
Monday 20 September
FREE
Time:
5.30 – 7pm
Finkel Theatre, John Curtin School of Medical Research, Building 131, Garran Rd, The Australian National University.
Cost:
FREE
Venue:
Hotel Realm, 18 National Cct, Barton.
Bookings are essential.
Contact: 6173 7004 or liz.veitch@rdaact.org.au
Contact: 6205 1849 or jennifer.edmistone@act.gov.au
Small Business Forum – Building Human Resource Capability
Bookings are essential.
The Policy and Practice of Innovation: Has Australia got it right?
Learn from other small and micro business owners how they have handled the people and talent issues in their business. This forum will address issues like finding and retaining skilled people, keeping your skills up as an owner manager, training solutions and approaches, where demographic change is taking us, and succession planning. If you are in small business this is a not to be missed opportunity.
The current innovation policy in Australia is multidimensional; covering tax policy, grants, support for research and development, and business planning. Getting the match between innovation policy and practice can have significant benefits for business. A panel of ANU experts and business professionals will discuss and respond to audience questions regarding our innovation policy, practise and its relationship to ACT businesses. Presented by The Australian National University.
Date:
Tuesday 14 September
Date:
Tuesday 28 September
Time:
5.15 for 5.30pm – 7pm plus networking
Time:
6pm for 6.30 – 7.30pm
Cost:
FREE
Cost:
FREE
Venue:
National Portrait Gallery, Parkes Place, Parkes.
Venue:
TBA
Bookings are essential. Contact: 6207 7215 or andrew.dib@act.gov.au
Bookings are essential. Contact: 6125 7741 or jennifer.eadie@anu.edu.au
Find the latest information about events to support your business this September by visiting www.business.act.gov.au and follow the Business In Focus Month September 2010 link or call 1800 244 650.
PUBLISHER I EDITOR Tim Benson Liz Lang editorial@b2bincanberra.com.au 02 6161 2751
B2B IN CANBERRA BUSINESS AND GOVERNMENT MAGAZINE AUGUST 2010 ISSUE 51
PUBLISHED BY Man Bites Dog Public Relations ABN 30 932 483 322 PO Box 4106 Ainslie ACT 2602 t 02 6161 2751 f 02 6262 7721 b2b@b2bincanberra.com.au www.b2bincanberra.com.au DESIGN www.voodoocreative.com.au PHOTOGRAPHY www.art-atelier.com.au
CONTENTS
ADVERTISING ENQUIRIES Tim Benson 0402 900 402 Michael Inacio 0459 024 368 advertising@b2bincanberra.com.au
EVERY MONTH 06 UPFRONT Read about local business success Time to combine your governance and board charter workshops Local business wins contract in battle of David and Goliath The hidden death toll that affects Canberra Seven-part business planning series Kremlin Bar re-launch ‘What I love about Canberra’ winners 12 OPINION Hear from people in the know Should you give your adult children money as a ‘gift’ or ‘loan’? Juliette Ford, Consensus Family Lawyers Self managed superannuation funds – take control over your retirement Michael O’Hehir, RSM Bird Cameron
PRINTED BY Blue Star Print Group DISTRIBUTED BY Fairfax ISSN 1833-8232 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.
19 COVER STORY Partnering with accounting firms in Canberra to provide professional wealth management services
FEATURE 22 CONFIDENCE IN ACTION Darleen Barton on performance coaching
2BUSINESS 42 G2B: Government to Business ACT Government 43 A2B: Associations to Business Canberra Business Council ACT & Region Chamber of Commerce & Industry CollabIT Chamber of Women in Business ACT Exporters' Network 49 U2B: Universities to Business The University of Canberra
16 PROFILE David Mathews, Crystal Approach 24 CULTURE Page Break Short story by Robert Phillips Arts, sports, and charities Jas Hugonnet, Gallery of Australian Design 28 ADVICE Advice from business experts Accounting, Banking, Business Coaching, Corporate Governance, Estate Planning, Fleet Leasing, Human Resources, Information Security, Information Technology, Interior Plantscaping, Safety, Websites 40 HOT TOPIC Our political leaders views on the issue of the day Topic: The future of Northbourne Avenue 50 NETWORKING See who’s out and about in Canberra
Cover photo: Andrew Gregory and Richard Navakas of Hillross Wealth Management Centre | Canberra Photography: Michael Inacio
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Time to combine your governance and board charter workshops
N
UPFRONT
eil Primrose, managing director of Primrose Solutions, and fellow consultant Sue Hart, director of Commerce Management Services, have seen governance flourish during the ‘recession we almost had’. Their ‘team’ approach to facilitating combined governance workshops for boards and the discussion and drafting process for board charters has brought significant benefits to their clients. According to Neil, well-run boards typically hold an annual governance workshop for members of the board team and the CEO and executive management team, shortly after their AGM. “Governance workshops are used as a means of settling the new directors into their role and building, or strengthening, productive relationships within the board team,” Neil said. Governance workshops are tailored to an organisation’s particular situation and needs, as well as to the level of knowledge among directors about good governance practice. “Each workshop must be custom built for each board,” Neil said. Preparation for the workshop includes prior consultation by the facilitators with the chair of the Board and the CEO about the particular issues for their board and careful attention
is given by the facilitators to tailoring the presentation to cover those issues. Sue says that well run boards also have a board charter. “Board charters capture the directors’ aspirations about how they want to work together as a team and how they want the board team to relate to the CEO and the senior management team. The charter is a living document and its regular review provides a framework for internal evaluation of the board’s performance,” Sue said. Neil Primrose, managing director of Primrose Solutions and fellow consultant Sue Hart. Neil and Sue’s diverse experience has led them to believe there is con- for each purpose,” Neil said. “We also find that making the most of the siderable benefit from combining the governance workshop with the discussion and drafting synergies between the two separate activities gives a deeper quality of insight to the board process for a board charter. “Combining the governance workshop charter than when done separately, often with with the process of reviewing or developing lengthy periods between the two separate acthe board charter saves the cost of conducting tivities,” Sue said. To find out more about governance and two separate workshops. It also saves the time of busy directors and senior executives con- board charter workshops contact Neil Primrose ducting a separate workshop with the board on 02 6295 0980 or Sue Hart on 02 6290 1505.
Local business wins contract in battle of David and Goliath
C
anberra company SeaForce, has beaten off larger competitors to win a $157 million Australian Customs and Border Protection contract to supply, modify and manage, for the next four years, the new Southern Ocean Maritime Patrol and Response Capability vessel Ocean Protector. The Ocean Protector is a 106 metre multipurpose offshore vessel built in 2007. It has been leased from a Norwegian company, DOF Subsea, and SeaForce is responsible for modifying the ship, which includes fitting
6
accommodation modules, a medical facility and new davit system. The modification program is being carried out at Forgacs Dockyard in Newcastle, and the ship is expected to commence operational duties in the Southern Ocean and north west Australian areas in September. SeaForce has engaged Teekay Shipping Australia as subcontractor to manage the ship and provide the crew and supporting logistics. Changes being made to the ship include an additional accommodation module aft of the superstructure, a medical facility, fast rescue craft, and a 140 tonne loading crane pad while it remains at the dockyard at Newcastle. The Ocean Protector will replace the Oceanic Viking, the ship at the centre of a stand-off between asylum seekers and the federal government last year, in patrolling Australian borders. Seaforce partner David Miers said that he was particularly pleased to have won the contract. “It was an all or nothing project for us. We were competing against major companies like The Ocean Protector at the Newcastle Docklands
August 2010 | B2B in Canberra
P&O and Guardline, and we ended up winning because we had the best ship, and a value for money solution,” David said. The $157 million four year contract was awarded in March this year after an extensive tendering process. The Ocean Protector arrived in Australia in June but not without a complication along the way. After leaving Capetown on the way from Norway to Newcastle, the vessel was involved in the rescue of American teenager Abby Sunderland, after her boat floundered in rough seas in the Southern Ocean. “The Australian Maritime Rescue Authority in Canberra looked at all the vessels and aircraft close by and redirected them to assist. There’s no other option when it’s a search and rescue operation. We were happy for the vessel to be involved,” explained business partner Bryan Stapley. David and Bryan are former Navy senior engineer officers who started the business in 1999. The future is looking bright for this local business as it lines-up further contracts to pursue within Customs, Defence and the maritime industry. SeaForce 11/169 Newcastle Street, Fyshwick T: (02) 6239 1905 F: (02) 6239 1907
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The hidden death toll that affects Canberra
Y
UPFRONT
ou could easily find out that the road toll for the ACT last year was twelve deaths. You could also easily find out that the road toll for this year so far is seventeen deaths. But if someone asked you to name the suicide toll for the ACT for either of those years you wouldn’t be able to find it. That was the message that Lifeline delivered at a Breakfast Briefing at the Legislative Assembly hosted by speaker Shane Rattenbury MLA recently. Lifeline chief executive officer Mike Zissler told the audience that the best estimate for the suicide toll in Canberra is approximately forty people a year. It is part of an Australia-wide problem that sees six people commit suicide each and every day. The total suicide toll each year is more than two thousand people. Lifeline’s reception came shortly after the Senate Community Affairs References Committee released a report on the issue of suicide in Australia called ‘The Hidden Toll: Suicide in Australia.’ This report estimates that the total financial cost of suicide in Australia exceeds $12 billion. This cost does not take into account the personal pain and grief associated with a suicide. “Crisis lines are critical. Last year alone more than 20,000 people rang Lifeline Canberra. We need to maintain those lines
and make sure we have staff there 7 days a week, 24 hours a day,” Mike said. But he also believes that making suicide first-aid training more widely available is important. “How do we get suicide more widely talked about? We have to embrace accidental counsellors. Who are accidental counsellors? They are the people who we see every day,” Mike said. “They are the people like the receptionists,
hairdressers, and the people who say g’day to you. These are the people who can notice something is wrong with you,” Mike said. Mike said he wants fifteen thousand Canberra citizens trained to have the skills to redirect people towards support services, to be able to do more than just ask ‘are you okay?’ For more information, contact Lifeline on 6247 0655 or email office@act.lifeline.org.au
Photo: David Byrnes
Speaker of the ACT Legislative Assembly, Shane Rattenbury MLA and Lifeline CEO Mike Zissler
Look out for seven-part business planning series
Business planning series starts soon
D
o you want to undertake more business planning but find that the day-to-day demands of running a business constantly get in the way? Yes? Then make sure you read the new sevenpart business planning series kicking-off in the September issue of B2B. It could make all the difference to the way you currently do business.
8
August 2010 | B2B in Canberra
Throughout the series, RSM Bird Cameron will show how these business planning tools can benefit your business: • DVP Change Formula • Now-Where-How Process • Locus of Control • Pareto Analysis • Sustainable Competitive Advantage • Strategic SWOT • One Page Business Plans RSM Bird Cameron understands the small to medium enterprise (SME) marketplace through its large client-base and also through its research studies. In its fourth thinkBIG research study benchmarking the planning practices of SME owners and assessing the impact of the global financial crisis on their businesses, the research revealed that although significantly more businesses undertake formal business planning than three years ago, more than half of SME owners in this year’s study said they did not plan their business on a formal basis. For those of you running a micro SME, the following results will probably ring true. There is still a considerable gap between the planning practices of micro-SMEs and larger SMEs. Significantly fewer owners of SMEs
with 1–2 employees reported a formal business planning process compared with larger SMEs. Once again, SME owners who do not plan their business formally said it’s because their business is too small or that they know their market well enough. Consistent with the thinkBIG 2007 and 2009 studies, SME owners who undertake formal business planning continue to focus their attention mainly on financial planning and business goals. Three-quarters have a marketing plan but only half have an operating plan or a management plan. There is still a considerable gap in knowledge when it comes to business planning by SME owners. Make sure you increase your knowledge about business planning by reading the first instalment of the seven-part business planning series next month. RSM Bird Cameron will also be presenting a seminar on business planning in November 2010. Register your interest early by emailing nicola.savage@rsmi.com.au
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UPFRONT
Glasnost and perestroika at re-launch of Kremlin Bar
I
n the true sense of glasnost (openness) and perestroika (restructuring) the Kremlin Bar will reopen in August after two months of reconstruction following water damage that closed the bar and led to major renovations. Managers of Kremlin Bar Jocelyn Condon and Lucy Battaglene said they have used this time to reinvent the Kremlin, and are adamant that it will still be Canberra’s premier Russian style cocktail lounge where you can relax with friends, savour more than 40 varieties of local and imported vodka and eat caviar. “We have one of the most extensive ranges of vodka and knowledgeable and professionally trained cocktail staff in Canberra. In addition to vodka we also import an impressive range of Russian and Eastern European beers,” Jocelyn said. The Kremlin Bar is not decorated in an austere Iron Curtain way, but rather of the classic old style pre Lenin era – opulent, plush, warm and romantic – with a slight modern touch. “We will continue the ever popular burlesque nights ‘le chat noir’ (the black cat) and our live DJ on Friday and Saturday nights – and we will add a regular live jazz act on Thursday evenings,” Lucy said. Both Jocelyn and Lucy have developed a
new classic yet approachable cocktail menu special event to mark this and the reopening of that is sure to please the cocktail aficionado the new and improved Kremlin Bar. and the novice alike. Kremlin Bar is located on the Ground Floor, “The new cocktail menu ranges from the 65 Northbourne Ave Canberra (between Qantas New York originals through to contemporary office and Jolimont Centre/Novotel entrance) Kremlin Bar inventions such the Alligator T: 6257 7779 or visit www.kremlinbar.com.au Boogaloo with Russian Standard Vodka, for more information. lychee liqueur, and guava and peach nectar,” Jocelyn said. Prior to reopening the Kremlin Bar had seating for approximately sixty. Once reopened it will comfortably seat ninety. The bar will also be open later on Wednesday and Thursday evenings. “The Kremlin Bar will now be able to cater for all types of functions ranging from small intimate style events, birthday parties and corporate functions such as launches and cocktail and Christmas parties,” Lucy said. Kremlin Bar is coming into its fourth birthday this August. There will be a Managers of Kremlin Bar Lucy Battaglene and Jocelyn Condon
‘What I love about Canberra.’
B
2B is pleased to announce that Christine Wrigley is the first prize winner of the Gourmet Hamper Competition which was run in our June Issue. Christine will enjoy the wares of the Canberra Gourmet Art Hamper from Hamper Art which includes products such as RealChai Chai, Kardinia Dry Riesling, Homeleigh Grove
Canberra Gourmet Art
10 August 2010 | B2B in Canberra
And the winners are…
Dukkah, and Kaldi Coffee Signature Blend Ground Coffee. Second prize winner is Karen Bailey who will receive the Canberra Gourmet Treats Hamper which includes products such as Kardinia Durif, Serious Salsa and Sauces – Serious Chilli Jam, Gourmet Taste Bud Mandarin and Apricot Jam, and Homeleigh Grove Olives.
Thanks to Fiona Allardyce at Hamper Art who donated the fabulous prizes. As all our competition entrants would agree, Canberra is a fantastic place to live, work and enjoy the four seasons! hamperart.com.au
Canberra Gourmet Treats
“In raising funds to keep the Snowy Hydro SouthCare Rescue Helicopter in the air, we rely on RSM Bird Cameron to look after our own financial well-being.” Steve Gregory, CEO, Snowy Hydro SouthCare Trust
The Snowy Hydro SouthCare Rescue Helicopter is there to help Canberrans and residents of South Eastern NSW, 24 hours a day, every day of the year. Since 1988, the helicopter team has carried out almost 3900 rescue missions.
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OPINION
OPINION: CONSENSUS FAMILY LAWYERS Should you give your adult children money as a ‘gift’ or ‘loan’? The rapid increase in house prices over recent years has turned the dream of buying a home into a mirage for young people, with many turning to their parents for financial assistance to enter the real estate market. By Juliette Ford, Director, Consensus Family Lawyers
In the context of providing a gift to a child to assist with the purchase of property, you should ensure that the terms of any agreement are properly spelt out in a loan agreement.
12 August 2010 | B2B in Canberra
A
s parents, it is always your goal to give your children the best start to life and you may not think twice about providing financial assistance. Whether this assistance is in the form of a gift or a loan there may be legal implications involved in this type of arrangement, particularly if your child is in a relationship. For instance, if your child separates from their partner in the future, under the Family Law Act 1975, your hard earned cash contribution may be considered a ‘gift’ to both parties. Furthermore, you and your adult child may not get your money back. For example, if you gift $100,000, that doesn’t mean that your child will get an extra $100,000 in final property settlement. Is there anything you can do to avoid this? Binding financial agreement A standard property settlement under the Family Law Act 1975 requires the Court to examine and assess each party’s contributions towards the acquisition, conservation or improvement of any property. Broadly, the contributions can be taken as financial in nature (for example, money gifted from family) or non-financial in nature (for example, taking care of the children). The party who can demonstrate a larger contribution to the marital relationship may receive a larger proportion of the assets. However, this is not a given, and may change depending on a number of factors, including the amount of money gifted, the length of the relationship and the future needs of the parties. To avoid your financial contribution being ‘lost’, you should encourage your adult child to consider a binding financial agreement (BFA). If a BFA provides financial disclosure, is carefully drafted and complies with the necessary formalities, it will oust the jurisdiction of the Family Court in relation to the assets specified in the Agreement and the way the contributions attached to those assets are to be dealt with. Essentially, a BFA sets out how the parties want to divide any property they do accumulate and the steps for achieving the division. A BFA is a complex document drafted to cover
as many possible scenarios in the event of separation. The advice of a solicitor is not only recommended but a mandatory requirement for the validity of the document as both parties must receive independent legal advice before entering into the agreement. Estate planning A properly prepared Will can afford individuals the option to protect their assets such that these assets remain in the bloodline. This is particularly so in circumstances where the beneficiary is a child going through their own separation or bankruptcy. Estate planning primarily involves two interacting disciplines – law and finance. An estate plan should not be devised as an isolated or compartmentalised event. Instead, your financial goals should be understood in the context of the legal system and the law about Estates. In the context of providing a gift to a child to assist with the purchase of property, you should ensure that the terms of any agreement are properly spelt out in a loan agreement. That way it is clear that any money that you have given to your children is a loan and not a gift which can be called in at any time (even if the agreement itself does not require that they money is repaid. You can take the loan into account in your will so that the loan can be credited against any inheritance they may receive (in other words the loan becomes, in effect, an advance on their inheritance) or you can forgive it in your will. Either way, in the event your child’s relationship fails during your lifetime as the funds given are a loan and not a gift they are a debt which both parties owe to you which would be taken into account in any settlement so the amount is not lost. Ultimately, planning is the key if you are considering assisting your child with the purchase of their first home. With sound advice and the assistance of people who understand the threats presented by potential relationship breakdowns, you can ensure that your contribution is not lost in a dispute in the Family Court. For an Out of Court solution, contact Consensus Family Lawyers.
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OPINION
OPINION: RSM BIRD CAMERON Self managed superannuation funds – take control over your retirement A self managed superannuation fund offers a flexible structure for business owners and employed individuals to have control over their superannuation assets in their retirement planning. By Michael O’Hehir, Senior Manager, RSM Bird Cameron
W
ith Australia’s ageing population, planning for your retirement has never been more important, a self managed superannuation fund (SMSF) provide trustees with greater control, flexibility and generally reduced compliance costs.
What is a SMSF?
A SMSF is a type of trust fund designed to provide benefits for its members on retirement. These types of funds are limited to four members which makes them an attractive entity to have in any family business structure. Members have more responsibility compared with public funds, have control over the investments of the fund and are required to act as trustees for the fund.
What are the advantages of a SMSF?
Choice and flexibility The members decide on the investments included in the fund. As a member of a large public fund you have little say in the strategy and investments made on your behalf. Portability It does not matter if you are self employed or an employee, your superfund can move with you to different employment situations. In a time where employees are very transient, it is easy to lose track of the superannuation money you are entitled to. A SMSF means different employers can contribute to the one fund and if you have superannuation balances with different fund providers you can consolidate them into your own fund. Tax savings Assets you may have originally thought of holding in your name or a family trust such as term deposits, publicly listed shares and property can be invested by your fund. Earnings are taxed at 15% and 10% for some capital gains. For example, over 20 years this could generate significant tax savings. If these investments were in your own name, you could be paying tax up to 46.5% based on current tax rates. Running cost savings Public funds charge ongoing fees based on the
14 August 2010 | B2B in Canberra
funds under management. The larger your enti- looking at retirement in three years, they will tlement to super is, the higher the costs. With a both be entitled to a Commonwealth pension. Currently they are earning 5% on these deSMSF, there are significant cost savings available to people with large super balances as you are posits increasing their income by $45,000 each responsible for the administration of the fund. A year. The tax on this extra income is approxiSMSF is required to lodge a tax return each year, mately $20,000 per annum. They decide after receiving some advice to provide financial and member statements and must be audited. These costs do not change sig- set up a SMSF and invest the term deposits in nificantly from year to year and therefore a SMSF is the fund. The SMSF holds exactly the same a more cost effective alternative to paying ongoing investment as before. They immediately start transition to retirement pensions and withdraw fees to public fund managers. $45,000 out as pensions during the year. Investing in business property Recent changes to laws governing SMSF mean that trustees are allowed to borrow when they want to acquire a large When thinking of starting your own asset. Previously, if a small business wanted superannuation fund, you need to to acquire commercial property for their business it was out of reach for some be- get some advice on your obligations cause the fund did not have enough cash available. New borrowing rules now make and responsibilities. these types of acquisitions available to smaller funds. The fund pays no tax on the earnings as the For example, your business can pay commercial rent to your own fund which is taxed at fund’s assets are being used to pay the pensions. a maximum rate of 15%. It also means that when The two members are not taxed on their penthe property is sold any capital gain is also taxed at sions as they have reached the age of 60 and a maximum rate of 10%. If you have retired when their pensions are tax free. This strategy using a you sell the property, there may be no tax to pay. SMSF saves them $20,000 tax a year. When thinking of starting your own superReaching age 60 and taking a pension Taking a pension after you turn 60 has annuation fund, you need to get some advice some significant tax savings for the fund as on your obligations and responsibilities. Along the pension is not assessable to you. You do with the benefits of SMSF come further complinot even have to be retired to take advantage ance rules and regulations governed by the ATO. of these benefits. Significant tax savings can RSM Bird Cameron’s specialist team provides occur within the fund as well. Depending on comprehensive technical advice, including stratyour situation, you may find the fund totally egies to access your superannuation in the most tax free with regard to its earnings and any tax effective manner. We also offer compliance services for trustees, such as the preparation of capital gains. financial statements, audit and taxation returns. The scenario below helps illustrate this. Husband and Wife aged 62 and 61. They We can help you with SMSF creation and comhave accumulated $900,000 in term deposits pliance, wealth creation and pension strategies. in their personal names. They both still work Contact Michael O’Hehir at RSM Bird Cameron earning around $100,000 each. When they are for more information.
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PROFILE
David Mathews
Owner and director, Crystal Approach Business owner, David Mathews takes a progressive approach to business. David Byrnes finds out more. “When you’re a business owner, the most important thing is to look after your people. You have to ensure they have appropriate working conditions, have a good work-life balance, and are supported in terms of training and development,” David said. “These elements help to create a vibrant business – all of which I believe contribute to a very progressive approach to business.”
16 August 2010 | B2B in Canberra
Born in Colac, in southern Victoria, David spent his teenage years there, before moving to Coffs Harbour, and then to Sydney to study at university. Embracing a short career in the hospitality industry, David moved into the public service in the early 1980s. In 1997 he made the decision to move into the private sector and moved to Canberra. “My career had reached a crossroads within the public service. I could either continue to grow into executive roles in the public sector, or to go into consulting roles in the private sector,” David said. “I saw the private sector as a place that would offer variety and a challenge.” David set up the Canberra ICT firm Crystal Approach in 2004. When the business first started, the business partners had limited resources and no office premises, but were able to rely upon previous relationships to get ahead. “Four of us who had worked together for a long time took the plunge into business. We had a couple of long-term clients who said to us that if we started a business they would support us,” David said. “They did help us out and we worked hard to get more clients.” Nowadays David likes to focus upon how technology can help people and organisations achieve their goals. “You still have to concentrate upon delivering the technical side, the nuts and bolts of the software, but what I like to do is to understand what people are trying to achieve and how technology can help them achieve their objectives,” he said. David says that businesses need to make sure they are directing their efforts towards measurable outcomes. “We’ve had some instances where a particular objective has had a high priority, but the requirements weren’t really well defined.” David said. “You need to know what to do at that point to help clarify the requirements to ensure you deliver the outcomes.” Living in Hughes, David finds Canberra a nice balance between the peace of the countryside and the business of the city. “I really like the area where I live. It’s close to Red Hill and I love going for walks up there. That’s the thing about Canberra, wherever you live you are usually only five minutes away from a nature reserve,” he said. “I grew up in the country and after having lived in Sydney for a number of years I was ready to get back into the country and Canberra was a good balance. It isn’t the countryside exactly, but you’ve never too far away,” David said. David Mathews is also Labor’s 2nd Senate candidate for the ACT. Despite the commitment required to run a business David considers it an honour to run for the Senate. ““I’ve been engaged in politics ever since I was young. I learnt a lot about politics from my Dad, who was very interested in politics and taught me a lot about our system of government,” David said.
Does your accountant return your calls? We’re never too busy to talk
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18 August 2010 | B2B in Canberra
COVER STORY
Hillross Wealth Management Centre | Canberra Partnering with accounting ďŹ rms in Canberra to provide professional wealth management services There are more than 150 accounting firms in Canberra. Many of these firms do not provide wealth management services and could benefit from partnering with the Hillross Wealth Management Centre | Canberra (HWMC). Words: Tim Benson, Photos: Michael Inacio B2B in Canberra | August 2010
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COVER STORY
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he Hillross Wealth Management Centre delivers professional wealth management services to clients of accounting alliance partners – through their existing accountant. Hillross has a network of professional, qualified and competent advisers. It has one of the highest percentages of Certified Financial Planners (CFP) in the Australian financial services industry. The CFP qualification is considered the pre-eminent wealth advice qualification in Australia. “Hillross is owned by AMP, one of Australia’s largest wealth management businesses which has been in business for over 160 years. While Hillross can tap into AMP’s market-leading research and investment advice, it operates autonomously, providing advice across the board,” Director of Hillross Wealth Management Centre | Canberra, Richard Navakas said. Richard has lived, worked, and brought up a family in Canberra for the past 30 years. He has worked in wealth management for AMP and Hillross for almost 20 years. “Canberra is an excellent market for wealth management services. We understand that the Canberra community is highly educated and that people expect high level strategic advice in relation to their wealth management,” Richard said. Hillross has more than 300 advisers and 116 firms throughout Australia and more than $11 billion in funds under advice. Hillross has been active in Canberra since 1994. “We have grown Hillross in Canberra over time to include a strong client base and we have a good reputation for delivering high value, professional advice,” Richard said. “Wealth management is about creating and protecting wealth for our valued clients through advice and strategies and holistic positioning,” Richard said. “We pride ourselves on our technical expertise and we also understand that accountants and their clients require convenience, confidence, security and privacy,” Richard said. Though the establishment of the Hillross Wealth Management Centre | Canberra, Richard and his team are focusing on providing wealth management services to local accounting businesses. General Manager of Hillross Wealth Management Centres throughout Australia, Andrew Gregory added, “Hillross has conducted extensive research into the accounting industry over the past couple of years to understand how to work better with the industry and their clients.
1. There are over 10,900 accounting firms in the industry and the majority are small, or fourth tier, practices with little or no financial planning ability. 2. There is a natural alignment between accounting and wealth management services. 3. Accountants enjoy the highest level of trust of any profession. 4. Affluent clients and small business owners see their accountants as their primary source of advice and clients are looking to their accountant for financial services beyond accounting services.
“We understand that smaller accounting firms can be limited in their ability to offer wealth management capabilities because of competing priorities or the significant start-up costs involved. So we have built a ‘bolt-on’ business that provides professional wealth management services to our alliance partners,” Andrew said.
20 August 2010 | B2B in Canberra
HWMC’s advisers provide quality advice in areas such as investment, insurance, superannuation and estate and retirement planning. In particular, advisers at HWMC Canberra understand the local market and have an in depth knowledge and understanding of the Commonwealth Super Scheme, Public Sector Scheme, Defence Force Retirement Death Benefits Scheme and the Military Super Benefits Scheme. “By working closely with an accountant, our advice can be aligned with a client’s taxation, accounting and business advisory needs,” Andrew said. When an accounting firm partners with HWMC, they remain firmly in control of the client relationship at all times. “We understand that most successful accounting firms have a strong client focus and want to provide a full range of services to their clients. We recognise that if we want to work with accounting businesses we have to respect the relationship between the client and their accountant,” Andrew said. HWMC has also developed technology that identifies the financial needs of clients directly from their tax data. “Some accounting practices’ clients may not be fully serviced due to time and capability constraints and we can help to identify these clients and provide additional services through their existing accountant,” Andrew said. Hillross acts as a technical expert behind the accountant. The accountant’s brand is positioned with the client but the advice and risks are managed by Hillross. The client sees their accountant as their primary point of contact. This gives the accountant the ability to provide services their clients might source elsewhere.
The Hillross Wealth Management Centre’s services include: • • • • • • • • • •
Wealth accumulation strategies Building for retirement strategies Retirement planning and income strategies Superannuation and self managed super fund investment and structuring advice Portfolio structuring and administration Investment advice Corporate and individual risk management and insurance strategies Debt management and reduction strategies Public sector defined benefit scheme recommendations Estate and succession planning advice.
“We have the full capability of an outsourced wealth management provider, including systems, technologies, advisers, research and economics capability. Benefits for accounting businesses are the quality of services, safety and rigour, timesaving and speed to market. Importantly, the accountant controls the client relationship at all times,” Andrew said. Richard Navakas and Andrew Gregory would be happy to discuss with local accountants and accounting businesses how an alliance partnership with Hillross Wealth Management Centre | Canberra could expand their current services to clients.
Facing page L-R: Andrew Gregory, Richard Navakas Photography by Michael Inacio
Hillross Wealth Management Centre Canberra Pty Ltd. Level 7, AMP Building, 1 Hobart Place, Canberra City Ph: 02 6263 9200 | Fax: 02 6263 9222 E: andrew.gregory@hillross.com.au
B2B in Canberra | August 2010
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FEATURE
Highly effective individuals have highly effective businesses.
With Confidence comes Action!
What is performance coaching? The best way to describe it is assisting people to become the best they can be.
S
o many people just allow their lives to happen, they have landed in jobs and relationships they didn’t plan. They live life by chance and not by choice. They just don’t know how to change, where to start, even if they even want to change. Can you remember a time when you had big dreams for yourself and something just happened and your life changed? We often default to safety and security, we are afraid to step out and try new things in fear of failure. A coach provides guidance, support, encouragement and education. As a coach we don’t have all the answers, we just ask great questions and drill down until we arrive at the real opportunity for growth or change. Not to be mistaken, coaching is not counselling. Every great sports person has a coach to assist them achieve greatness. Sometimes you just need to get out of your own way to make it happen! My clients want to achieve clarity in their lives. They have made a great decision to live life by choice and not by chance. Many are striving to achieve lifelong dreams and have never known how or where to start. Yes, we deal with issues that have prevented people from achieving, the mental road blocks, the limiting beliefs, and the learned behaviors and then we place their stories away and move on together. I work with a mum developing a business, while still holding down a full time job to the CEO of a large corporate, who just wants to know she is doing her best, for the share holders and her family. Everyone needs a coach, someone who will keep them accountable to their goals in life and on track. I have coached individuals, managers and teams across many different industries from multi-nationals to SMEs over 20 years both internationally and on the domestic front. I have coached teams and individuals to achieve their goals. Big businesses only do what small businesses do but faster and smarter and more effectively. They understand the importance of understanding their employees. Large corporates employ performance coaches for their
22 August 2010 | B2B in Canberra
top executives. They know if their top executives are living their lives on purpose and they have clarity around the ‘why’ and the ‘how’ in their lives, the large corporates will have highly effective individuals. With highly effective individuals comes a highly effective business. The key to achieving in life is to move towards your dreams NOT move away from your past. Who do you need to ‘be’? What do you need to ‘do’ to ensure your desired future turns up? It has always been a very simple message – winning is a habit, and so is losing. Every single day our habits determine our effectiveness or ineffectiveness and say much about our values and character. Life is a mathematical equation – we add and subtract many different things in and out of our lives. My clients work through issues and frustrations, we work-shop ideas together, we seek counsel from other professionals to get it right! We as human beings are not all the same. We are unique and many of us have defaulted to the place we are in both personally and professionally by chance and not by choice. During coaching sessions, no subject is off the radar. We can discuss anything the client is comfortable discussing. Our sessions are solution focused and goal orientated. We set targets and visualise the result, and talk about how people will feel when they achieve what they set out to achieve. As human beings we are more inclined to break goals and promises to ourselves – a performance coach keeps us on track and sets the pace. When you enter into a coaching relationship you know you are never alone. It’s about self mastery, being the best you can be. It’s never too late to be who you might have been! Darleen Barton is a certified international coach and member of the International Coaching Federation. For more information: M: 0434 511 633, F: 02 6241 0962, W: confidenceinaction.net.au, E: performancecoach@confidenceinaction.net.au
Photography by Andrew Sikorski
By Darleen Barton, Performance Coach, Confidence in Action (CIA)
Above (From front left): Annie Barton – The Investment House, Michael Hazilias – HRMWEB, Phillip Jones – Schmooze, Irene Hazilias – HRMWEB, James Nikolaidis – HRMWEB, Darren Stevens – Godfrey Pembroke, Mick Burgess – Family Business Australia, Shane Widmer – The Investment House, Anita Burgess – Tulips Café, Adrian Stott – Voodoo Creative, Susan Miller – ServCorp, Ingrid Workman – Bentley Accountants, Kelly West – Westerly Dreams, Dr Jay Gombosa – Redd Dog, Carolyn Queale – SpySee, David Meers – Godfrey Pembroke, and Darleen Barton – Confidence In Action (CIA)
Anita Burgess – Tulips Café Tulips Café Pialligo offers delicious home style cooking (gluten-free choices), child-friendly secure playground, warm fire for winter, aircon for summer. Catering is also available. Phone: 02 6249 6118
Darren Stevens – Godfrey Pembroke Godfrey Pembroke helps people live their life on purpose, by providing them with a picture of what their financial position will look like over time. Phone: 02 6249 1555
Michael & Irene Hazilias, James Nikolaidis – HRMWEB We assist businesses to manage their most important asset – their workforce! Through consultancy, coaching and our award winning, ‘easy EMPLOYER’ solution, we enable clients to save time and money. www.hrmweb.com.au
Ingrid Workman – Bentley Accountants ”I am a leading taxation and financial advisor with a specialty in legal and professional service firms”. Phone: 02 6274 0400
Dr Jay Gombosa – Redd Dog
Kelly & Mercedes West – Westerly Dreams
Our men’s and women’s merino motorcycle gear is effectively as warm as a jumper but only as thin as a top. They fit beautifully under riding leathers without feeling bulky or restrictive. Phone: 0407 944 203
Do you currently get 7 to 8 hours sleep a night? If you answered no, would you like to? The Westerly Dreams Side Snuggler will give you back your quality of life! Phone: 02 6254 5531
Korina Choundary – KTL Solutions Delegate your financial headaches with KTL solutions. Full range of bookkeeping services from simple payroll through to your fully outsourced CFO. Phone: 02 6262 4447
Carolyn Queale – SpySee SpySee guarantees consistency across all your business touch points. SpySee ensures your customers experience your business like you dreamed they would. Phone: 02 6241 8228
Annie Barton & Shane Wildmer – The Investment House Make an informed decision. We save you time, money and effort in your home, investment or commercial property purchase. Phone: 02 6295 2899
David Meers – Godfrey Pembroke Godfrey Pembroke helps people live their life on purpose, by providing them with a picture of what their financial position will look like over time. Phone: 02 6249 1555
Phillip Jones – Schmooze The Schmooze professional community is a welcoming and collaborative environment that fosters rewarding professional and social opportunities for its members. Contact: info@schmooze.net.au
Adrian Stott – Voodoo Creative When it comes to branding, marketing, graphic and web design – we think differently. We strive to make our customers’ communication outstanding through skilfull media application and quality craftsmanship. Phone: 02 6282 0888
Mick Burgess – Family Business Australia
Susan Miller – Servcorp
Family Business Australia is the peak body for family and private business in Australia. We advocate on behalf of our members, and foster their sustainability and longevity. Phone: 0419 578 176
We provide the ideal solution for the 1–10 person business who wants to focus on running their business through a Servcorp Serviced or Virtual Office. Arrange a personal tour today. Phone: 02 6198 3204 B2B in Canberra | August 2010
23
Overnight at the White House by Robert Phillips
P resident Celine Chalston had just sat down to dinner with her family when there was a knock on the door. It was Mervyn Mee, her nervous little Secretary of State. ‘Excuse me, Madame President, Sir; we appear to have an emerging emergency situation.’ Madame President put down her fork. ‘An emerging emergency? I suppose it is inherent in the word emergency that it is something which emerges. What kind of emergency?’ Mervyn tugged at his collar. ‘Hurricane Murgatroyd. It’s developed to category five plus, and it’s heading our way.’ In the heady days of 2030, such natural phenomena were not uncommon. But Murgatroyd was about as big and bad as a hurricane could get. ‘The coast? Where?’ ‘The experts think Florida. But it could swing west to Louisiana, or maybe make landfall in Texas.’ Madame President picked up her fork. In the two years since she had won the Democratic nomination, she had become used to emergencies. The war in Afghanistan had been dragging on for 30 years, another huge chunk of ice had broken off from Greenland, and America was behind in its loan repayments to China. At least she didn’t have to worry about the Middle East anymore. The relentless march of the deserts, spurred on by global warming, was rendering the whole area uninhabitable, and the Jews had started their second Diaspora. ‘You’d better alert the National Guard, tell the Pentagon to put the troops on alert, and warn everyone in the area to batten down and prepare for the worst.’ ‘Shouldn’t we evacuate people?’ ‘What? The whole south-east of America? There’s tens of millions of them.’ Mervyn nodded and went on his way. President Chalston resumed her eating. She had learnt to let nothing spoil her dinner. ‘Hilary, dear, eat your greens, or there’ll be no apple pie for you…’ After dinner, she went to the Ops Room. Interns were tracking a great white whirl on a large screen. Mervyn was sweating. ‘We, uh, think it’s going to cut a swathe across Florida and hit Miami.’ ‘That will mean tidal waves at Miami Beach, will it not?’ She remembered the tidal surges that had swept up the Mississippi during the reign of her predecessor. Republican President Hardiman, the ultimate climate change sceptic, said it was just a one in a million year flood. ‘Er, probably. Murgatroyd could kill thousands and cause a trillion dollars worth of damage.’ ‘A trillion?’ Madame President groaned. ‘The Chinese are already threatening foreclosure.’ ‘What shall we do?’ asked Mervyn, wringing his hands. ‘Do? Order the army and the National Guard to seal the border between Florida and the other states.’ The interns gasped; Mervyn blinked. ‘D-did you say seal the border?’ ‘That is correct. I shall declare a State of Emergency. No one is to be allowed in or out of Florida without military permission.’ President Chalston went off to have a nice, relaxing bath. As she played with her rubber duck, she realised that she had made the right decision. Evacuating ten million people from Florida could
CULTURE
PAGE BREAK
Need a break from the world of business? Take a few minutes to read this story from Canberra writer, Robert Phillips
cause as much death and destruction as Hurricane Murgatroyd itself. From now on, whenever there was a natural disaster, the area would have to be sealed off and the hapless inhabitants left to fend for themselves. So she went to bed satisfied with her decision. She would have to find someone to blame for the disaster and there was still the problem of those pesky Chinese creditors. She woke up next morning, refreshed from a good night’s sleep. Over breakfast, she worked out who to blame. She entered the Ops Room to discover that Secretary of State Mervyn Mee had collapsed. He was being carried away on a stretcher. A fresh group of interns was tracking Murgatroyd, which was now approaching Miami. ‘What news?’ she asked cheerfully. ‘Florida is experiencing the strongest winds ever recorded in human history,’ explained one intern with mournful glee. ‘So strong that we couldn’t have evacuated people any way.’ She was about to leave the Ops Room when another staffer approached her. ‘Excuse me, Ma’am, but the Chinese Ambassador requests an urgent audience.’ ‘He’ll just have to wait. I’ve got to deal with the media first…’ President Celine Chalston put on her most earnest expression as she stood on the steps of the White House in front of the cameras. ‘People of Florida, please accept my condolences and those of American people for the tragedy that you are now experiencing. Regrettably, there is nothing we can do to help you. ‘Nor will any financial aid be forthcoming for the subsequent restoration. With all of those rich retirees in Florida, you have the highest per capita incomes of any state in the union. If you can’t pay for the restoration, no one can.’ The reporters were so stunned that they said nothing, until one of them, a White House plant, asked, ‘Madame President, who do you think is to blame?’ ‘The Florida Republicans, of course,’ she replied gleefully. ‘If they hadn’t rigged the 2000 election, Al Gore would have become President, and we would have taken steps to prevent climate change from happening.’ She turned, and went back into the White House. Ignoring the intern who said the Chinese Ambassador insisted on seeing her, she retired to the Oval Office for her morning cup of coffee and a donut. She needed a bit more time to think before she saw him. She looked at a map of the United States. Borrowing gruesome amounts from the Chinese was the only way the US Government could pay off its debts. It had resorted to disposal of assets to meet the loan repayments. Alaska had been sold back to the Russians, and Hawaii had been rented out to a Japanese honeymoon company. ‘Hmm,’ she thought, ‘if the rich don’t help the poor in Florida, there will be a revolution…A Florida Soviet? How amusing…Ah, ha!’ There was a knock on the door. ‘Madame President, the Chinese Ambassador demands-‘ ‘Show him in... Mister Hong Kong Long, have I got a deal for you…’
B2B in Canberra | August 2010
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B2B Business Seminar 5 Professionals Guide to Property Would you like insight into the information that accountants, real estate agents and property professionals use to assess and make their own investment property decisions? Yes? Then Register Now. Hear presenters: Andrew Sykes, RSM Bird Cameron and Neil Loveday, Ray White Canberra Complete the form below or email: b2bbusinessseminars@b2bincanberra.com for more information.
REGISTRATION FORM B2B Business Seminar 5: Professionals Guide to Property, Wednesday 8 September 2010, James Fairfax Theatre, National Gallery of Australia, Parkes Place. The Seminar commences at 6pm sharp. Name(s) of attendees 1.
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Please return form and payment details to: b2bbusinessseminars@b2bincanberra.com OR B2B in Canberra, PO Box 4106 Ainslie ACT 2602 OR Fax: 6262 7721
CULTURE
Jas
Hugonnet
manager, Gallery of Australian Design by Liz Lang, B2B Editor
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ited on the foreshore of Lake Burley Griffin, the Gallery of Australian Design (GAD) is a vibrant exhibition space bursting with big plans for the future. Opened in May last year, many Canberrans will remember the GAD space as one of the former homes of the National Portrait Gallery before it took up permanent residence next to the National Gallery of Australia. GAD manager and curator, Jas Hugonnet explains that what sets GAD apart from other design galleries in Australia is its outstanding location within the parliamentary triangle in Canberra and its public billing as THE Gallery of Australian Design. “Being a gallery, it is very different from the great design museums such as the Powerhouse in Sydney, the Helsinki Design Museum in Finland, and the Cooper Hewitt in New York – which are all collection based,” Jas said. “GAD is about showcasing design ideas to the public through an exciting program of eight exhibitions a year which run for approximately six weeks each. Unlike the large museums, GAD does not house a permanent collection of design items.” Free admittance to the public, and not in receipt of government funding, the Gallery was established through a partnership between the University of Canberra, the Australian Institute of Architects, the Australian Institute of Landscape Architects and the National Museum of Australia. The Gallery’s Patron is His Excellency Michael Bryce AM AE and the Gallery is run by a governing council and advisory group. The partnership between the four bodies creates unique opportunities in design learning experiences and research and enriches the gallery’s exhibition program. In addition to showcasing great Australian design, the gallery will be incorporated into the University of Canberra design curriculum, with students given the opportunity to take a hands-on role developing exhibitions, including curatorial content and design.
26 August 2010 | B2B in Canberra
“Through GAD, we want to bring the best of Australian and international design to audiences across all forms including landscape, architectural, industrial, and graphic design. We’re also interested in jewellery, ceramics, objects, fashion, textiles, glass – wherever design is involved.” “Put another way, design equals ideas which equals our gallery program,” Jas said. “We want people to come into the Gallery, soak up ideas, and be inspired by the ingenuity, creativity, and passion shown in the exhibitions.” Jas visibly loves talking about design and has had an extensive career in the visual arts and design to match this passion. Trained as an architect, he has worked in film and TV set design, owned a gallery in Sydney’s Newtown, spent six years as the curator of Craft ACT’s Craft and Design Centre, and is one of the three founding members of a local design collective called Obfunc which focuses on designing functional objects that possess clarity in terms of ideas, use of materials, and manufacturing processes. This month and through until September 25, GAD features ‘Design Media in Australia’ which is an exhibition promoting published design in Australia. Curated by Jas, the exhibition models itself on a trade fair where Australia’s leading design magazines including Artichoke, Architecture Australia, Houses, and Green have created free-standing installations for people to interact with their products. “The Gallery of Australian Design is here for the people. It is a not-for-profit organisation and another great cultural asset for Canberrans and visitors to Canberra,” Jas said.” If people are interested in GAD, all they need to do is subscribe on our website, and they will receive invites to our exhibition openings and events.” Gallery of Australian Design, 44 Parkes Place, Parkes, Southern foreshore of Lake Burley Griffin. T: 02 6273 1313 www. gad.org.au Open Wed-Sat 10am-4pm. Admission is free.
Photography by Andrew Sikorski
ACCOUNTING
Understanding key business profit drivers ADVICE
by Andrew Sykes
C
an you identify the six critical factors that drive the profits of your business? One of the toughest challenges in any business is trying to identify and manage the key drivers of profit. Great businesses are able to generate higher profits than their competitors in the same industry because they know the factors that drive their profitability. They clearly identify them and work relentlessly to improve them. Key drivers of business profit include: • Increasing your price – price is the easiest level to compete on and we often hear that a business can’t raise its prices because of competition. Consider improving customer service and relationships – you will be surprised at how much more pricing power great service gives you. • Increasing customer visits – maintaining contact with your customers is often the strongest link to sales. Knowing your customer better leads to great service and long term secure relationships. • Increase average dollar sale – if you have good customers look for strategies to sell them more. It’s easier to sell more to an existing customer than it is to find a new one. This is where the real value of knowing you customer can come from. • Increasing the number of customers – don’t miss opportunities to get new customers on board. Think about how you are going to get new customers over the next 12 months and write down a plan to achieve this. • Decrease your cost of goods sold – build relationships with your key suppliers. Remember you are their customer and they want to maintain good relationships with you. Put some time into negotiating
your buying prices and you will be surprised at what you can achieve. • Decrease your overheads – its often easier to save a dollar than earn one. Carefully examine your overheads and consider how lean you are running. Most businesses will have areas where they can cut costs and improve bottom line. These strategies all combine to generate your bottom line. Small changes in each can produce big impacts. Take for example a business that has (as a percentage of sales) cost of goods sold of 61% and overheads of 25%. If we can : • increase sales by 5% • decrease cost of goods sold by 5%; and • decrease overheads by 5%. Then the net profit will increase by 66%. RSM Bird Cameron has produced a simple spreadsheet that will allow you to input your business figures and estimate the impact of the change on the bottom-line. If you would like a copy of this spreadsheet please email andrew.sykes@rsmi.com.au.
Andrew Sykes is a partner at RSM Bird Cameron. For information on business improvements, contact our experienced team, 103 – 105 Northbourne Ave Canberra, T.6247 5988. www.rsmi.com.au
BANKING
Time for a banking service check-up? by Toby Mahoney
H
ow long is it since your business has had a banking service check-up? By this, I mean your insurances, merchant facilities and the like. It is important not just to make sure that you are getting the right banking requirements for your business banking needs, but that all your banking services are best suited to you. With many different options available on the market these days for your business, it’s vital that you set aside time to sit down with someone who understands your business and your business banking requirements to help you get the best deal possible. Do you currently have products that you don’t need? Yes. Then it is time to do a complete overhaul of your banking to ensure that you only have what your business needs to make it successful. When you are snowed under, it is easy to forget about the important things in life. Making sure you are fully protected within your business is certainly one of them. What would happen to your business if you were injured and unable to work? Would you, your family and your business survive during this time? It’s imperative to make sure that you are fully covered by insurance – not just your stock – but you and your income as well. Having your income protected not only gives you and your family piece of mind but there are also tax benefits available for you (which can be confirmed with your tax specialist). Income protection also enables your business to keep operating in a time where competition is constantly growing and you need to stay ahead of the pack.
28 August 2010 | B2B in Canberra
Given that we readily pay insurance premiums for other risks – people, buildings, and motor vehicles for example, it’s hard to justify not taking some protection for exposure to rising interest rates. Our bank’s Financial Markets desk can provide interest rate risk management solutions including forward start options, deferred start fixed rate, and interest rate caps and collars. These solutions can be tailored to the borrower’s situation. At Bendigo Bank, we believe that successful customers equals successful communities. If you want to make sure that you are getting the best for your business, why not give me a call today to make an appointment and I will come and see you at your business at a time that suits you.
Toby Mahoney is Wanniassa Community Bank’s branch manager . T: 02 6231 9024, F: 02 6231 9643, M: 0422 605 505, toby.mahoney@bendigobank.com.au
what’s your
christmas party august 2010
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Think about asking Daniel out. See CSCC Christmas Party ad in B2B and make a note.
Mention Christmas party to colleagues and check out Daniel’s reaction. Ignore Brian’s suggestions.
Talk to Brian in Accounts about budget for to Christmas Party. Talk in Marketing niel Da Ignore his bad jokes. about clien t guest list. Try not to blush.
Receive optio s and prices fronm CSCC Daniel still sick. Brian offers to come and check out Pitch and Putt venue. Jokes actually pretty funny.
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Ignore Daniel’s vote and choose Brian’s suggestion. He is very funny.
Make an appointment to see venues. Ask Daniel to come with me.
Visit Turner bowling green with Daniel and Brian.
log on to CSCC website to check out party options. log on to Daniel’s facebook page. Ignore Brian’s facebook request.
fInAlISe GueST lIST.
Visit yacht Club and MV Southern Cross with Daniel. Perfect for weddings... and Xmas parties
Go through range of Christmas shows with CSCC entertainment Manager
Start making list of party options.
Ring CSCC functions managers to talk about options within budget.
Visit beautiful events Centre. Also perfect for weddings...and Christmas parties.
DRAw uP A TABle of All PARTy oPTIonS.
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Book in party before ear Bird offer ends on 31 Auglyust and receive a restaurant dinner and show voucher wororth $100 – perfect for a luck door prize, staff incentive yor client gift.*!
Book your Christmas Party by calling the Function Manager at one of these venues: Woden 6283 7200 Tuggeranong 6293 7200 Yacht Club 6273 1784 Jamison 6251 2677 Turner 6247 7838 *For terms and conditions, and to download our function packages visit www.cscc.com.au. For the information of members and their guests
Raise topic of Christmas party at staff meeting. Ask Daniel to drinks out of earshot of Brian.
STAy AwAy fRoM BlACk CATS, lADDeRS AnD BRIAn.
Daniel sick today. n Ignore Brian’s invitatio to drinks.
27
Present options to staff and ask for votes. Go to drinks with Daniel and meet his model girlfriend.
BUSINESS COACHING
The referral goldmine ADVICE
by Wayne Bolin
I
even further. For example, you could provide customers a reward magine your business not having to spend a cent on advertising to attract new customers… Where every new customer that comes or gift (referral dollars or something tangible) for every paying through your door comes by a way of referral from your existing cuscustomer they refer your way. Then for referred customers you tomers – and that those referred customers arrive with a positive precould offer a ‘welcome’ gift or deal. It’s important to offer the conception and a willingness to spend their money with your business… person being referred something special just for being the friend Sounds like a dream come true, right? of the customer. This helps your customer look like a ‘hero’ in the So how can you start your own referral sales pipeline in your business? eyes of their friend. 5. Set the expectation up-front – Let your customers know that you would 5 keys to attracting more referrals like them to refer others to you when you first meet them. Simply ask 1. Become more ‘attractive’ to your customers – Your customer service that they refer at least one customer of similar calibre to your business and the results you deliver must be outstanding. It is not just about when they are happy with your product or the service that you offer. offering a great service. It‘s about offering MORE than expected. Focus on all aspects of your business including, the appearance of Please contact Wayne Bolin on 02 6295 9800 your premises, the attitude of your team, quality of your product and to find out how 10X can help you build a great even the way you answer the phone. referral network for your business. 2. Give customers an incentive for referring their friends – Think of an exciting introductory offer that you can make to potential clients, for example, a free meal at your restaurant or a complimentary hair cut at your hair salon. Come up with something that has high perceived value of $50-$100 but low hard cost, say $10 or less. 3. Actively ask for referrals – Start asking for referrals NOW. It will radically increase your results. The best time to ask for referrals is directly after a sale. This is when customers are most excited about your company. Wayne Bolin is the 10X Canberra South franchise owner. 4. Develop a system for encouraging referrals – Having a systemised For more information, please visit Unit 3/71 way of making sure referrals happen will improve your results Leichhardt Street Kingston or visit www.10x.com.au
CORPORATE GOVERNANCE
Raising risk awareness by Phil Butler
Inspiring small business to take the next step
A
AICD#789
s the world’s economy slowly emerges from the depths of the to be learned from past experiences. How each generation of managers Global Financial Crisis, there have been some interesting stud- ensures that learnings from past experience are remembered and used is ies released on what we can learn from the calamity. a constant challenge. It will be an even greater challenge over the next 10 The need to review how companies control risk is one par- years as baby boomers retire. With corporate memory walking out the door, ticular area that has been identified as a The priority for directors Institute who are organisations will need to establish systems to maintain the knowledge and Australian of Company Directors considering the governance implications of the GFC. experience gained from past crises. (AICD) is Australia’s membership institute for It was interesting to read a recent report from the World Economic ‘Empowering the Front Line’ was also recommended as a good risk governdirectors delivering knowledge continuing Forum, prepared with Boston Consulting Group, which investigated how ance practice, and as demonstrated by the aviation industry on safety reporting. the financial services sector could improve its thinking on risk management. The report found that few organisations had organisational structures that suflearning in the field of directorship. Some of the findings were common sense, such as the need to consid- ficiently empowered, or valued, information provided from employees working er the system-wide perspective, but as has often been written, ‘common at the coal face and that any issues detected were therefore largely ignored. For more information,Organisations contactof Laura sense’ is not common to all people. all types and sizes could Of particular interest was the chapter on Governance Culture learn from or these important Tierney on and 1300 764 633 visit thegovernance leswhich stated that, after a period of high performance, it was not in the sons. Employing improved practices could website at companydirectors.com.au nature of the industry, nor investors, to be ‘looking for trouble’. stand Australia in good stead for the inevitaThere were very few cautious voices, and those who did raise concerns ble next economic downturn. were generally ignored. The ‘herd’ mentality ruled and those with dissenting views were not encouraged to more forcefully express those views. The report recommended that in the future, the industry more readily ‘value experience’, comparing this favourably to the actions of firefighters assessing danger. As American playwright, Eugene O’Neill once reflected, ‘There is no Phil Butler is state manager of the Australian Institute of present or future, only the past happening over and over again, now’. Company Directors’ ACT Division. For more information While history does not always exactly repeat itself, there are many lessons about AICD ‘s course programs and events, call 6248 5954.
30 August 2010 | B2B in Canberra
ESTATE PLANNING
Dying intestate (not interstate) ADVICE
by Stephen Bourke
I
f you are concerned about who will receive your assets and belongings after you die, it is important that you make a will. If you die without a making a Will, your assets and belongings will be distributed under a rigid formula, regardless of what you may have wished. This is known as dying ‘intestate’, as opposed to dying in Bungendore (which is interstate). Consider these simple facts. Single male, 42 years old, living in rental accommodation, earns $60,000 per annum, no major assets or investments and no windfalls such as an inheritance. He suffered under the abuse of one of his parents and received ongoing psychiatric care. How much is his estate likely to be worth? In a recent case, the estate was actually worth almost $400,000. Why? Because the deceased had a superannuation death benefit of more than $300,000. However, the deceased had not made a will and died intestate. Under the rigid formula, his estate would go to the deceased’s parents, including the estranged, abusive parent. The moral to this story is simple, ‘make a valid Will before you die’. But what if you care for someone who lacks the mental capacity necessary to make a valid Will? This could arise through mental disability or through mental illness such as dementia. The following Victorian case is a good example: In Secretary, Department of Human Services v Nancarrow a 14 yearold boy, Zachary Nancarrow, became severely disabled following abuse by his father when he was a child. As a result of the abuse Zachary received an award under the Victorian Criminal Injuries Compensation Act. His father received a prison sentence. Zachary was taken into foster care and his life expectancy was said to be ‘wholly unpredictable’. If Zachary were
to die intestate the compensation award would form the vast bulk of his estate and his parents would benefit equally. This arguably was not how Zachary would have wanted his estate to be distributed. So what was the solution? In this case, an application was made to the Court for a special type of Will known as a ‘Statutory Will’. The proposed Will placed Zachary’s estate into a trust created solely for the purpose of providing funds to persons who are intellectually or physically disabled as a result of family violence. His carers did not seek any financial benefit from his estate. The proposed Will was approved by the Court. Similar Statutory Will provisions have recently been introduced in the ACT. The Court, pursuant to Part 3A of the Wills Act 1968 (ACT) may authorise a Will to be made, altered or revoked for persons who lack testamentary capacity.
Stephen Bourke is a director in the boutique firm, Certus Law, specialising in superannuation, trusts and estate planning. He also consults to other practitioners through the consulting practice, SuperSplitting. Level 5, 28 University Avenue T: 6268 9090 www.certuslaw.com.au
FLEET LEASING
Not enough kms for novated leasing? Think again. by Scott Iriks
I
t’s a common misconception that novated leasing is only for highly paid executives who travel more than 25,000kms per year. Did you know that for most vehicles your change in take-home pay will be the same (within a few dollars) at 15,000 kms per annum as it is at 25,000 kms per annum? The reason is that although your FBT liability is higher at 15,000 kms you pay considerably less in servicing, maintenance, tyres and petrol. What’s more, at the end of your lease your car is worth more, because it’s got less kms on it! Do you travel under 15,000 kms a year? Novated leasing is still a good choice. Not only do you get to save by accessing fleet discounts on the price of your car, you also save on GST. What’s more, you have the added benefit of salary packaging the running costs for your car – instead of having to fork out when your registration or insurance is due – it’s taken out proportionately out of your salary each fortnight. Plus, you get your own fuel card for all of your petrol expenses. An ACT government employee earning $65,000 a year recently took out a fully maintained novated lease on a Toyota Corolla Conquest, Automatic Hatch over 48 months, travelling 10,000 kms per annum. The recommended retail price for the vehicle is around $29,500 however she arranged finance for it at $24,279.36.
32 August 2010 | B2B in Canberra
The lease payments for her vehicle, including servicing, maintenance, tyres, insurance and petrol worked out to reduce her take-home pay by $322.24. Over the four year period it will save her $3,119.57 in tax. If you add the saving on the vehicle purchase and the savings in tax, this works out to an overall saving of $8,400 over her four year lease. Plus, this employee knows that at the end of her lease, her car is likely to be worth more than the residual value she will owe to the financier. Maybe it’s time to have another look at novated leasing.
Scott Iriks is Easifleet’s general manager, leasing. For more information or to discuss your novated lease quote contact Easifleet on T: 1300 266 828 or F: 1300 655 568
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companydirectors.com.au
Foundations of Directorship
Finance for New Directors Creating awareness of directorship
Looking to grow your business to the next level? Start with a director-orientated introduction to finance. Providing you with a straight-forward introduction to financial statements and learn how to assess the financial performance of a company. This course is designed for sole directors or new directors in small to medium enterprises who want to develop a basic understanding of company financials.
For more information visit companydirectors.com.au/foundationsofdirectorship or t: 1300 764 633
00537_10
Date: 9 September 2010 Venue: Federal Golf Club
HUMAN RESOURCES
Embrace the leadership challenge ADVICE
by Elsa Ramiro
S
trong leadership is top of mind for many of us right now – not Therefore while permanent roles are limited, contract and temporary just because we have a new Prime Minister, or because an elec- roles are likely to increase to cover resourcing needs. Using contractors tion is upon us, but because in the wake of economic downturn, and temporary staff has the benefit of providing a flexible workforce that 2010 is a make or break year. It is the year for a strong leader to can be adjusted to fit demand. really make the difference. As a business leader during this time, it is more important than ever to The 2010 World of Work Report by specialist recruitment & HR services communicate with your people, so they have an ongoing understanding company, Randstad, suggests Australians are seeking similar qualities in of how their role contributes to the organisation. Your ability to motivate their business leaders to those being discussed as respected qualities of employees, from ground-level staff all the way through to senior manageour PM and other national leaders. A lack of a compelling vision is the ment is critical to your organisation’s success. biggest concern for Australian workers when it comes to leadership. The As the Canberra market starts to prepare for new challenges in terms report shows that 41% of people rate the most important attribute of an of a changing business landscape and employment opportunities, strong, effective leader is the ability to create and share an engaging vision for the visionary and collaborative leaders will be future – that is owned throughout the entire organisation. Like you, his success relies on getting themore important than ever. right team around him. Having a leader who can set a clear idea for where the company is a copy of the Randstad 2010 At Randstad, we have our own high performance support team. Ours isFor meticulously trained to find theWorld right of heading, how it is planning to get there, and aligning each employee with Work Report, please visit www.randstad.com.au people for the right companies and vice versa. For more information on why you should choose Randstad for their own role in this process is integral to success, and to a happy and all your recruitment & HR requirements, visit www.randstad.com.au cohesive workforce. In the lead-up to the election and whatever the result, an election year can have a significant impact on the Canberra business landscape – both public and private sectors. Canberra employers are working hard to rebuild and lead recovery following the downturn. For further information, please contact Elsa Ramiro, As seen in the past, as an election approaches, this may mean tightenexecutive manager of Randstad’s Business Support division ing of budgets and recruitment freezes, which can last for some time until in Canberra T: 02 6245 2992 or email Elsa at 24/3/10 10:50:09 AM elsa.ramiro@randstad.com.au, www.randstad.com.au the federal government is comfortably in place.
INFORMATION SECURITY
The best way to predict the future is to invent it by Boaz Fischer
T
he future is not laid out on a track. It is something that we can decide, something that we can innovate, something that we can revolutionise and something that we can share that will make a big difference. Imagine if we could create models that would come alive? Imagine creating a virtual model, so we could try it out, test it, play with it and see if it really works? Imagine creating a security model that is self learning, self protecting, self healing and self predicting? We take this mantra seriously with the recent release of our second edition of the Essential Guide to Information Technology Security Best Practices. We are proud to inform our readers that the CommsNet Group has been awarded the 2010 iAwards for ACT on 15 July for two separate categories – Security Application and e-Learning. The The Essential Guide to Information iAwards is Australia’s premier technology Technology Security innovation awards program. Best Practice Winning an iAward demonstrates the power of our commitment to make a difference to organisations within the community. The Essential Guide to Information Technology Security Best Practices is revolutionary because its primary focus is to raise awareness, educate and empower you with the simple steps and solutions to sophisticated information security challenges.
Professor William Caelli, founder of Eracom and senior security researcher from Queensland University described this book as an ‘Excellent guide in helping raise awareness regarding security/assurance/governance practices and imperative for all ICT professionals’. Andrew Smith, an Australian expert in counter terrorism first response airports and airlines described this book as an ‘Excellent tool for managers to be proactive in the way they manage security. Like me, you will be shocked at how much you really didn’t know by the simple steps you can take to ensure your organisation’s IT security’. SPECIAL OFFER: CommsNet Group is providing the first 15 interested readers with the opportunity to receive a free copy of the book. Please register your interest to MyInterest@commsnet.com.au and mention ‘predict the future’.
Helping your business maximise your technology investment by maximising the availability, security & performance of your key assets
2nd Edition
Author: Boaz Fischer CEO, CommsNet Group Pty Ltd www.commsnet.com.au
34 August 2010 | B2B in Canberra
Boaz Fischer is the managing director of the CommsNet Group. For more information, contact T: 6282 5554 or visit Level 1, 67-69 Dundas Court Phillip, mail@commsnet.com.au, www.commsnet.com.au
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INFORMATION TECHNOLOGY
Can a phone system increase productivity? ADVICE
by Allan King
A
lot of time and energy is wasted when employees try and reach colleagues and are directed to voice mail. It’s also common to find multiple messages concerning the same subject in different places. Unified Communications, or UC, seeks to simplify these problems by sending all communications to a single inbox. When employees stay connected, they stay productive. By unifying your phone and computer network, you create a seamless flow between the work your employees do, and the people they need to connect with, to get work done faster and better. Employees can easily find each other, wherever they are, and both customers and prospects can be quickly routed to the most appropriate employee. Additionally, mobility is extremely important for employees who are on-the-go. They don’t just work at their desks anymore, they’re out on sales calls, at the airport, at home, or in other areas of your company. Employees can consolidate all their incoming business calls into a single business phone number and immediately receive calls wherever they are working. Unified communications provides access to the collaboration tools necessary to hold meetings including voice, video and web conferencing through a single easy-to-use interface. The growing use of Unified Communications that combines voice, video, conferencing, and fax has given employees a new and more immediate way of collaborating. Small and medium enterprises demand unified communications
solutions that easily integrate into, simplify and speed up business processes. As your business grows, a unified communication solution will let you add new employees, remote offices and mobile employees with minimal effort and expense. Simply put, costs will go down while service levels and productivity will go up. Infront’s Unified Communications solutions can enhance your organisation with new forms of flexibility allowing your business to scale for years to come. Infront’s superior range of BusinessONE solutions allows you to create the ultimate work environment. So, can a phone system make your employee more productive? Absolutely! By deploying UC, organisations can now focus their valuable time and energy on achieving business goals and objectives rather than on the technology that sustains it. The way IT should be.
Allan King is managing director of Infront Systems. For further information contact Infront, 1/10-12 Franklin St, Manuka T: 02 6239 8400, admin@infront.net.au, www.infront.net.au
INTERIOR PLANTSCAPING
Even indoor planters are designer these days by Jon Elphick
W
ho would have thought that the humble indoor plant would become a fashion item, but that’s the latest trend with a new Aussie planter designed by the reigning IDEA Designer of the Year, Helen Kontouris. In a sign of our environment conscious times, this ‘designer planter’, called ‘Zoie’, is also fully recyclable, and moulded with sub-irrigation ability for indoor and outdoor use. Made from polyethylene, the planter is free of VOCs – Volatile Organic Compounds – which means the product does not emit gases often associated with new products such as carpets, furniture and cars and makes it much more consumer and green friendly. The demand for creative ‘green’ planter options in the industry can be linked to the growing awareness of the health benefits of indoor plants as we all look to incorporate these plants in a way that also improves the look and feel of an indoor space. With trusted bodies such as the Green Building Council of Australia recognising the importance of indoor plants through their Green Star program, demand for plants is expected to increase.
36 August 2010 | B2B in Canberra
The psychological benefits of indoor plants, such as reduced stress levels and increased productivity, are many and varied. At Ambius, we like to think of it as ‘greening on the inside’. It is fantastic to see designer planters like this being introduced to the Australian market, further enticing people to incorporate indoor plants into the design of their homes and offices and reaping the aesthetic and health benefits. The designer ‘Zoie’ planter was unveiled at Australia’s premier design and architecture event, DesignEX earlier this year in Sydney, the first showing for Melbourne designer Kontouris since her award win. For more information on the GBCA, go to the Office Interiors / Interior Environment Quality section, (IEQ – 15 ‘Indoor Plants’): http://www.gbca.org.au/green-star/ratingtools/green-star-office-interiors-v1-1/1530.htm
The Ambius Canberra office is headed by Jon Elphick who has a team of seven staff. The business has been in operation for 20 years and was formerly Rentokil Tropical Plants. Unit 5/ 67-71 Vicars St Mitchel T: 02 6241 1451 www.ambiusindoorplants.com.au
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37
SAFETY
Safety begins with good communication ADVICE
by Darren Sterzenbach
W
hile we, as a nation, move closer to harmonisation of workplace safety laws, the truth is that changes to the laws will not alter the fact that effective workplace safety is only possible if several very important elements are implemented. Without these elements safety remains just words on paper. These essential elements are what we call ‘non negotiable’. The first of these elements up for discussion is communication and consultation. Without the involvement of everyone in and around the workplace effective safety is difficult. Effective communication and consultation will result in a more efficient workplace and will encourage a change in the safety culture. Every day I provide advice to clients on what is accepted practice and legally required when it comes to safety. Like all good managers my challenge is to listen to what employees have to say about their job, how they do it and why they do things in the way they do. I can’t be expected to know the processes of every job, nor do I need too. What I need to do is to provide an opportunity for discussion and provide outcomes that are effective, safe and practical. Whether you engage consultants or do it yourself, the challenge is to provide sound safety processes in the workplace based on input from your workers. I encourage all workplaces to set up avenues to discuss safety. It may be discussions during morning tea, over lunch or as an added agenda item on management meetings, forums or through open door policies. There is a myriad of good ideas out there that provide very good opportunities
for consultation and communication. It is only through talking to all levels of workers that effective changes, including culture changes, can be made. You will be surprised at the good ideas that people have to implement simple yet positive changes to safety. Remember, if you are not sure, ask a professional before implementing changes to the workplace. Tips – Document discussions. Discussions are important. Encourage involvement at all levels as a team and as equals. Listen to what is important to each member of the team as each of us are individual and may view things differently. Your role is to provide an effective outcome to which all can agree will provide a safer workplace. Safety…it’s just good business.
Darren Sterzenbach is Matrix’s national general manager. T: 02 6239 7322, darren@matrixcompliance.com.au, www.matrixcompliance.com.au
WEBSITES
Internet addresses. Will this be the next Y2K? by Sam Gupta
W
ithin a year, the internet will run out of IP addresses according to the American Registry of Internet Numbers. That means, there will be no new addresses available in the world for any new device wanting to connect to internet, which may include your computer, mobile phone, TV or even your fridge. No internet address, means no internet. This problem has nothing to do with your website address. Your website address and email addresses are safe. It relates to the actual IP address which are numbers such as 192.77.188.166. This 32-bit addressing system, or IP version 4, identifies a network. This internet protocol was set up in 1980, when computers were as big as a room or two and it was unimaginable that there would be more than four billion network connections in the world. With a year, we are set to reach nearly 4.3 billion IP addresses, thanks to advancements in technology and the increase in the number of gadgets that use the internet. This doesn’t include private networks such as internal office networks. Can this problem be fixed? Yes, but there are two schools of thoughts on this. The first option is to employ a Band-Aid solution and use technology to reduce the current number of IP addresses. This is a short term strategy that will buy time. Another option, which is well supported by Google and other major players in the IT market, is IP version 6 which is a 128 bit addressing system, which will provide a longer term solution (we hope). The new
38 August 2010 | B2B in Canberra
IP version 6 will be able to hold more IP addresses than the number of stars in the universe. Now, let’s just hope that it will be enough for our next generation. So, as a small business, what do you need to do? Well, this issue first needs to be fixed by your ISPs (Internet Service Providers) – the telecommunication companies. They are the ones who assign public IP addresses. Based on the road they take, we’ll probably have to upgrade our IT infrastructure or network equipments to adapt to the new protocols. As to whether or not it will be the next Y2K style issue, where millions of dollars are spent to make equipment compliant? Well… we’ll just have to wait and see how this issue will unfold over the next year.
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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NORTHBOURNE AVENUE
TOPIC: THE FUTURE OF
HOT TOPIC
40 August 2010 | B2B in Canberra
N
orthbourne Avenue is the gateway to the nation’s capital, and serves a multitude of uses ranging from an arterial road, a formal approach to the parliamentary zone, a conduit for vehicle, bike and pedestrian traffic along with accommodating businesses and public housing. Public housing has a visible and historic presence along Northbourne Avenue. There are in excess of 450 properties located along Northbourne Avenue with the majority of properties consisting of 1 or 2 bedroom units. The Northbourne precinct has been identified as a priority to respond to concentrations of disadvantage. Redevelopment consistent with the Public Housing Asset Management Strategy is a longer term option to improve these sites into the future. A Conservation Management Plan is being prepared for the Northbourne Housing Precinct (units on either side of Northbourne Avenue in Lyneham and Dickson) to respond to the proposed listing of the dwellings on the ACT Heritage Register. The Government also supports new policies which limit urban sprawl and conserve energy. A 2006 study found about 40 per cent of workers living in Turner and Braddon walked, cycled or caught public transport to work, compared with the Canberra average of 12 per cent. Increased densities for residential development along Northbourne Avenue could deliver
N
orthbourne Avenue should be the boulevard for Canberra, filled with medium to high density residential and commercial areas that add vibrancy and life to what is often the first impression for visitors to the nation’s capital. However at the moment, the ACT government has not utilised this thoroughfare properly, and without the necessary changes, it will be difficult to see substantial improvements for transport infrastructure. To improve housing affordability, transport and amenity in Canberra we must be looking to increase housing density at town centres and along transport corridors. Northbourne Avenue is one of these transport corridors that has been underutilised by this government for too many years. With increased densification in our town centres and transport corridors, we will begin to see the infrastructure in place which will provide opportunities for real improvements for public transport and amenity. Without the demand, we will continue to see public transport fail to provide a service that meets the needs of many Canberra families. Density in our town centres and transport corridors will also mean Canberrans will have choice about where they live. For some, living near the city or a town centre will be attractive, for others living in the suburbs
N
orthbourne Avenue is a crucial artery that connects the city with the growing northern suburbs of Canberra. With three lanes of traffic in each direction, no bus lane, and only a narrow on-road bike lane, it is congested, and many people perceive it as dangerous, slow and frustrating. To avoid it, some drivers ‘rat-run’ through neighbourhoods in the inner north, causing problems for the residents there. It also discourages some potential bicycle commuters, who see it as unsafe. But, bad as it looks, Northbourne’s problems aren’t intractable – in fact they present us with a perfect opportunity to start transforming Canberra into a more sustainable and liveable city. The ACT Government is shortly undertaking remedial works on Northbourne Avenue. The Greens are advocating for changes to Northbourne that will increase the percentage of trips made by sustainable transport, by making these trips quicker and safer. At the same time, this will help alleviate traffic and congestion problems. A redesigned Northbourne Avenue needs new public transport and cycling infrastructure that makes it safer, more efficient. Progressive cities around the world (and increasingly cities in Australia) are recognising that public transport, bicycle and walking
significant reductions in greenhouse emissions through transport alone. In 1993, new policies were introduced to deliver higher density redevelopment of some residential areas in parts of Turner, O’Connor, Lyneham, Dickson and Braddon near Northbourne Avenue. These have had limited success in encouraging urban density and in recent years as few as 100 new dwellings per year have been built in the inner north. Current restrictions on the intensity of development in some areas north of Macarthur Avenue have contributed to a low level of redevelopment. This is leading to some properties being run down until higher density redevelopment can occur. Where re-development has occurred, it has been of lower density than preferred under a modernised policy approach. The Government established a Legislative Assembly inquiry to examine how planning policies designed to increase density in the inner north have performed over the past 15 years. The inquiry’s findings are set to deliver the future policy direction for Canberra’s environmental sustainability. Northbourne Avenue is a central feature in our public transport system. Every day, over 500 buses run along the major corridor competing with some 50,000 motorists. While more daring cyclists ride on the onroad cycle lanes, others share the off-road footpaths with pedestrians. As our city grows, and demands on our transport system increase,
on a decent sized block of land will be more desirable. By forward planning where densification occurs, Canberrans will be able to protect the character of our suburbs from the threat of inappropriate developments. That is why the Canberra Liberals currently have a Bill in the Assembly called Infrastructure Canberra. This will establish a detailed infrastructure plan for Canberra, to provide for the considered rollout of infrastructure. This will be backed up by an Infrastructure Commissioner and a board of experts to give knowledgeable and strategic advice to make sure projects are delivered on time and on budget. The Canberra Liberals are doing the hard work on providing a blueprint for the city to improve the liveability for Canberrans. Unlike the Greens, the Canberra Liberals believe improving roads infrastructure is vital for Canberra’s future. A government of any persuasion would be silly to ignore roads infrastructure with cars being the only viable option for transport for many. Northbourne Avenue like many arterial roads in Canberra will need upgrading and with a public transport bus system, cleaner cars and electric vehicles coming on-line, not planning for improved roads infrastructure will only increase congestion and decrease the time people spend with their families. There is a housing affordability crisis in the ACT, and greater density
infrastructure are keys to reducing congestion and building a city that is resilient to growing populations, climate change, and peak oil. In the short term, buses need to be given priority on Northbourne. There are various configurations that can achieve this – including priority lanes, priority lights, or even a bus lane that operates down the centre of Northbourne’s wide median strip. This makes sense, given that buses stopping and starting already hold up one lane of Northbourne traffic. It also makes sense from a congestion point of view, given that three people in three separate cars take up as much roadspace as a bus that can carry 70 people. Rapid mass transit is the best long-term solution for congestion. It is also a better option for a commuter’s hip pocket as car travel becomes more expensive. The Greens have already achieved some improvements to Northbourne bus travel, secured through our Parliamentary Agreement. The rapid REDEX as together with a new Park’n‘Ride/Bike’n’Ride bus station at Mitchell will allow Gungahlin residents to swap to a bus before Northbourne and also avoid parking costs in the city. Northbourne also needs a redesigned, high quality bicycle path. Canberra has excellent cycling rates and people are increasingly interested in commuting by bike. Potentially, the Northbourne median
the ACT Government will continue to encourage Canberrans to consider sustainable transport options, such as catching the bus, cycling or walking. In developing a sustainable transport city, the ACT Government will undertake a $250,000 feasibility and design study for bus priority measures. We will also consider the best options for cycling and pedestrian facilities along Northbourne Avenue. Having identified the best options, preferred cycle facilities will be built with $4 million already allocated, with the bus priority measures to be built in future years. Northbourne Avenue will continue as the gateway to the nation’s capital, but its future also lies in accommodating urban density developments to take advantage of the transport services provided and balance the Greenfield developments on the periphery of the city.
Jon Stanhope ACT Chief Minister
will help alleviate some of the supply pressure we are currently seeing under an ACT Labor Government. Unfortunately, ACT Labor is looking to tax units in the city upwards of $50,000 in change of use charge. This will actively work against the goal of seeing more people live in town centres and along transport corridors. Our vision for Northbourne Avenue is to make it the boulevard of Canberra. Somewhere that represents the best elements of the ACT that makes people want to live there for the vitality and improved amenity it will bring. It will require drive that goes beyond the political cycle and we believe the legislation we currently have in the Assembly, Infrastructure Canberra, will go a long way to support this substantial change.
Zed Seselja
ACT Opposition Leader
strip could house a bike path running its length. Alternatively we could convert the existing on-road lane redesigned into a separated, ‘Copenhagen-style’ bike lane. These options provide speed and safety and will appeal to all levels of cycle commuters. The ACT Greens, in conjunction with the Australian Greens, have also developed a proposal for light rail to be constructed across Canberra, funded by the Commonwealth. The first stage for light rail would replace the existing REDEX route and travel down Northbourne’s wide median strip. A highcapacity, frequent and fast light rail service has the potential greatest potential to transform the Gungahlin-City commute.
Meredith Hunter Parliamentary Convenor, ACT Greens
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G2B
GOVERNMENT TO BUSINESS ACT GOVERNMENT
Food, fuel and climate change on phenomic radar A world-leading Canberra research facility is a key player in finding solutions to the planet’s food, energy and climate woes. When the Bill and Melinda Gates Foundation gives you $20 million to find ways of averting the global food security crisis, and when two major United States government agencies knock on your door because there’s no-one else in the world who does what you do, you know you’re doing something special.
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o it has been for the Canberra-based a complementary sister facility at the University node of the Australian Plant Phenomics of Adelaide – is a national resource whose techFacility, whose work in plant biol- nologies and tools are available to any publicly ogy has strengthened the reputation of funded researcher at marginal cost and on the Canberra’s innovation culture and the veracity basis of merit. The Centre’s ‘research hotel’ environment is of its tag as Australia’s knowledge capital – not to mention vindicating the wisdom of the ACT attracting national and international scientists, Government’s innovation investment strategy. academics and students to Canberra to underA collaboration between the CSIRO, ANU take cutting-edge research, strengthening the and industry groups, and supported financially ACT’s already excellent research and developby the ACT Government, Canberra’s High ment capabilities. The ACT Government’s funding contribuResolution Plant Phenomics Centre is taking aim at some of the greatest threats to life on Earth. tion to the Centre – $1.1 million through to The growing food security crisis, climate change 2013 – is being used in a number of ways. It is and the consequences of the ballooning world supporting post-doctoral research training fellowships, travel bursaries and PhD top-up funddemand for biofuels are among its targets. The Gates Foundation, for example, is fund- ing to attract top-quality students from around ing the Centre to bring international researchers Australia. Currently, three PhD and two Honours to Canberra to find ways of increasing rice yields. students are contributing to operations and And the US departments of agriculture and energy building career-shaping skills and knowledge. The funding also supports the Centre’s have brought plants to Canberra for identification ‘Innovators in Residence’ of genes responsible program to attract highfor performance as profile researchers from biofuel crops. In the plant world, it’s about around the world. The ”Phenomics is a first resident, Professor relatively new scientif- understanding how a plant’s Lyn Jones from the ic term,” says Dr Bob University of Dundee in Furbank, Director of genetic make-up determines Scotland, explored therthe Centre, located mal imaging for insight at CSIRO’s Black its function and performance. into cropland plants’ reMountain complex. sponses to drought. Two ”In the plant world, it’s about understanding how a plant’s more top-flight scientists are scheduled to take genetic make-up determines its function and up residence over the next six months. In addition, the ACT Government funding performance. We’re using the most recent advances in robotics, imaging and computing is being used to leverage outreach and educato build our knowledge, from individual cell, tion programs. An interactive display draws leaf and plant to whole crop and ecosystem. in industry collaborators, funding bodies and ”What we’re doing will help develop new school students to find out what the Centre and improved crops, healthier foods and more does; another program targets science teachers. A new initiative under the funding looks sustainable agricultural practices, and maintain to engage the Centre with the ACT’s creative and regenerate biodiversity.” As an initiative under the Australian industries. The Centre’s often beautiful highGovernment’s National Collaborative Research tech images have aroused interest in the art Infrastructure Strategy, the Centre – along with community, and an idea has been floated for
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an artist-in-residence scheme, and possibly the creation of an art prize down the track. As a hub of innovation and scientific collaboration, the Centre is providing many flow-on opportunities for Canberra businesses, especially in the areas of digital imaging and computer science. It is creating local economic spin-offs through the supply of specialist skills such as engineering, equipment-making and consulting services. ACT Government investment in research centres such as the Australian Plant Phenomics Facility, the ANU Climate Change Institute and NICTA, the National ICT Centre of Excellence is but one element of a wider Government strategy to enhance Canberra as an innovation city and strengthen the industry and business sector. Other measures to encourage business and innovation include co-funding the Lighthouse Business Innovation Centre, the Innovation Connect small grants program, additional investment in the Canberra Business Development Fund, and a range of initiatives to facilitate innovation leadership and awareness across the business community.
ASSOCIATIONS TO BUSINESS CANBERRA BUSINESS COUNCIL
A new government and the national capital A2B
Chris Faulks Chief Executive Officer, Canberra Business Council
Now that we are heading into a federal election, it is the ideal time to ensure that the ACT’s voice is heard. Regardless of who comes into power, it is critical that the ACT engages with and presents a clear list of priorities during the campaign if we are to have any hope of seeing action on important issues affecting our region.
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anberra’s electorates are not regarded as ‘mar- projects to be funded by Infrastructure Australia but ginal seats’ so we are often overlooked during was removed from the list at the eleventh hour. Other a federal election campaign and then margin- infrastructure projects such as the upgrade of the Barton alised by the incoming Federal Government. Highway and Constitution Avenue will require investThe election on 21 August 2010 provides an ideal oppor- ment from the federal government as will initiatives such tunity for Canberra’s business community to speak up. as the Australia Forum which will create a world-class What is Canberra Business Council’s ‘wish list’ for facility in Canberra where Australians can proudly host Canberra for this election? significant national and international meetings. First on the list is obtaining a strong commitment Another significant ‘nation-building’ infrastructure from the federal government with regard to its broad project which Canberra Business Council has long chamresponsibilities for the ACT as the nation’s capital. As pioned is High Speed Rail. Development of a High Speed an absolute minimum, the federal government must Rail network along Australia’s east coast from Melbourne bolster funding and support to the National Capital to Brisbane via Canberra, Sydney and Newcastle, with Authority so that it can priority given to the adequately carry out its Canberra-Sydney link. mandate of maintain- The election on 21 August 2010 provides There are many ing the Parliamentary other issues of imTriangle and promot- an ideal opportunity for Canberra’s portance to Canberra ing Canberra as the na- business community to speak up. that a new federal tion’s capital. government must Canberra is also home consider. The Council to many institutions of national significance – institu- will be putting forward a range of proposals to all parties tions that not only need to be appropriately resourced in the lead-up to the election and to the new federal but should be funded to develop and grow their collec- government as soon as possible after the election. In the tions, exhibitions and outreach programs. meantime I encourage you to do your part in making Second on the list is federal government sup- sure the ACT’s voice is heard. port for the Centenary of Canberra celebrations in 2013. Planning is already well underway at the ACT Government level to make the 100th year since Canberra was founded a very special occasion. This celebration is a perfect opportunity for the federal government to build a more mature and positive image of Canberra, right across Australia, as a vibrant city, a home to a thriving community and the nation’s capital. By getting behind the Centenary celebrations the federal government could encourage all Australians to better understand Canberra, and engender a sense of pride amongst Australians in their national capital. Third on the Wish List are several infrastructure projects which require strategic investment by the federal government if they are to proceed. The upgrade of Majura Parkway – a road development that will seamlessly connect the Federal Highway to the Monaro Highway – was on the priority list of infrastructure
UPCOMING EVENTS Thursday 12 August 2010 SAP Business Luncheon Topic: Youth mental health – a business proposition Guest Speaker: Prof Patrick McGorry AO Time: 12.30pm – 2.00pm Venue: Hyatt Hotel Cost: $90 members $90 Non-members $850 Table of 10
Tuesday 31 August 2010 Outlook 2020 Topic: Canberra – its transport and infrastructure for the 21st century Guest Speaker: Stephen Bryon Time: 12.30pm – 2.00pm Venue: Hyatt Hotel Cost: $90 members $90 Non-members $850 Table of 10
Wednesday 8 September 2010 2010 ACT Chief Minister’s Awards Time: 12.00pm – 2.15pm Venue: Hyatt Hotel Cost: $85 members $85 Non-members $750 Table of 10 To register all events www.canberrabusinesscouncil. com.au
Principal Members Actew Corporation, ActewAGL, Bank West, Bega Cheese, Bluestar Printing Group, Clayton Utz, Cre8ive, Ernst & Young, Elite, eWay, Medibank Health Solutions, Hindmarsh, Holistech, KPMG, MBA, National Australia Bank, National Museum of Australia, NEC Australia, Staging Connections, The Village Building Co, Thyssen Krupp Marine Systems Australia Affiliated with
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ASSOCIATIONS TO BUSINESS ACT AND REGION CHAMBER OF COMMERCE & INDUSTRY
A2B
How to interest young people into careers... Masterchef? Trevar Chilver, Director of Employment, Education and Training ACT & Region Chamber of Commerce & Industry
My daughter and I are big fans of Masterchef. At eight years old, she enjoys the spectacle, mourning with these aspiring chefs over their disasters and celebrating their victories, and we spend our weekends in the kitchen experimenting with cooking techniques learned from never missing an episode. The challenge for industry lies in making their industry not only interesting, but also open and accessible.
The Workplace Relations team of the Chamber has a long history of supporting members to navigate through the complexities of the Workplace Relations environment. To become a member of the Chamber please call 6283 5200 or visit www.actchamber.com.au.
Corporate Sponsors ACTEWAGL, 104.7 / Mix 106.3, Prime TV, The Canberra Times, The Good Guys Tuggeranong, Duesburys Nexia, Synapse Worldwide, B2B in Canberra.
Associates and Affiliates Retail Traders Association, Australian Industry Defence Network
Foundation Member Australian Chamber of Commerce & Industry
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ut Masterchef doesn’t just hound me in my leisure time. Working with industry on workforce development and youth transitions, I hear many industries lamenting the lack of a reality show of this kind to develop interest in their patch. Strangely, though, I never hear people in the hospitality industry raving about having it, and nor do I hear any decline in the demand for apprentice chefs. Indeed, with recent announcements about changes to the skilled migration arrangements for chefs, I hear more consternation than ever from that corner of the business community. Of more value to the hospitality industry in recruiting apprentice chefs have been partnerships like the one between the Southern Cross Club and St Clare’s College, which puts aspiring cooks and event managers into the hands of experienced professionals for mentoring. Likewise, the World Skills Competition not only raises the profile of tradespeople and para-professionals, but also instigates an enthusiasm for achievement that is critical in developing a strong and committed workforce for an industry. Initiatives like these also make it possible for young people to make substantiated decisions about what to pursue, reducing the likelihood that someone new to an industry will change their mind six months into a job. The value of these activities cannot be underestimated. Industry representatives often ask me if I can help them get speakers into schools to promote their industry as a post-school aspiration. This kind of connection with young people can be valuable, but the results are usually rather meagre in comparison to efforts that engage young
people in participation and have some kind of inbuilt ‘reality’ factor to them. A vet, for instance, who spends time working with a group of biology students on a research project is rather more likely to enthuse them and attract them to veterinary practice than one who just gives them a speech on what it’s like to be a vet. The value of such interactions have less to do with what a young person is told about an industry, and more to do with the perceptions and passions they develop as a result of having worked with a member of the industry. This is one of the reasons why there is a long tradition of (and even a cliché about) sons ‘following in their father’s footsteps’. Adolescents, more than any of us, are creatures of habit, and the pursuit of a career can be daunting. So children, understanding the habits and patterns of their families, have more courage in the face of a career path they understand. The challenge for industry lies in making their industry not only interesting, but also open and accessible. Collaborations between schools and industry open young people’s minds and give them insights that reduce the risk factor both for the young person and for the employer. The old saying that you can lead a horse to water but you can’t make him drink has never been more relevant. With laws, rules and other structures leading young people into the great new world of opportunities that await them as they complete their schooling, it seems we’re all waiting to see whether they will drink. Teachers are possibly more used to dealing with this than anyone else. Their role has been to lead students to information and find ways to encourage them to take the plunge and learn. Now, with issues like the population shortage, business people have to face the rather unpleasant reality that, along with opportunities, they must present young people with something engaging in the hope that they will actually embrace those opportunities. The Chamber of Commerce’s Ready Program is positioned to work with businesses, schools and community groups to help with this process. Our Partnership Brokers can support employers and industry groups to collaborate with schools in new and interesting ways in the hope of raising the profile of career opportunities. To get in touch with a Partnership Broker, contact Peter Ricardo on (02) 6283 5231 or email peter.ricardo@ actchamber.com.au.
ASSOCIATIONS TO BUSINESS COLLABIT
CollabIT turns one – cause to celebrate A2B
Alison Abernethy Manager, CollabIT ACT
CollabIT recently celebrated its first birthday and what a year it has been! In our first 12 months, membership has doubled and event attendance has increased threefold.
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etworking opportunities are continuing to grow as CollabIT works hard to establish partnership arrangements with the many other groups working within the ICT space in the ACT region. One such example is the reciprocal arrangement with the Australian e-Government Cluster. We’ve brokered a deal to include membership of representatives on both the CollabIT and e-Government Cluster committees further broadening opportunities for SMEs to access MNC partnerships. The Cluster provides a forum to share ideas and experiences in a non-competitive manner to the mutual benefit of all participants. Through seminars, workshops, conferences, and other events, the Cluster promotes the dissemination of e Government knowledge and brokers new business contacts for Cluster members. NICTA’s e-Government Demonstration Laboratory, located in Canberra, provides Cluster members with an opportunity to undertake demonstration projects and showcase innovative ICT solutions for deployment in the government sector. The CollabIT Committee has also expanded its membership to include a representative of an ICT contracting and training company to ensure we are more representative of the broader industry working to support ICT sector growth in ACT. But more importantly CollabIT companies have been demonstrating their innovation and business acumen by creating and delivering ICT solutions throughout the Territory, as well as nationally and internationally. At the recent ACT AIIA Awards four of the six category winners were CollabIT members. All of these companies demonstrated their commitment to high quality and innovative ICT solutions. The iAwards is the leading awards program for Australian technology innovators and the only truly international awards program delivered to the national ICT community. They recognise the importance of technology solutions to the creation of strong and efficient business in all industries as well as the imperative of innovation across the economy.
OUR WINNERS Communications: Better Network Services Group for msXsms Enterprise SMS gateway, software that allows insurances businesses, including Suncorp and GIO, to keep customers informed of their claim’s progress after extraordinary weather conditions. e-Learning & Security: CommsNet Group for The Essential Guide to Information Technology Security Best Practices, a unique, dynamic, easy-to-use and easyto-understand educational framework that will help every enterprise bolster security and reduce down-time and business loss. Sustainability and Green IT: Renewable Process (ACT) for E-Waste recycling in Australia, new and innovative processes through the use of smart material separation technologies that recycle eWaste – leaving only two percent going to landfill. These companies will now represent the ACT at national iAwards in Melbourne on 5 August 2010.
At the recent ACT AIIA Awards four of the six category winners were CollabIT members. All of these companies demonstrated their commitment to high quality and innovative ICT solutions.
SURVIVOR CANBERRA – an event not to be missed. Mergers and acquisitions in the ICT industry sometimes play out like an episode of Survivor – full of intrigue and suspense. Join CollabIT and the Lighthouse Business Innovation Centre on 23 September 2010 to explore the unique perspectives of three very different entrepreneurs. Learn how each panellist led their respective team through the various stages of the change of company control. What worked well? What went wrong? What lessons can be gleaned by company executives hoping to affect a merger or acquisition for their business? For more information visit the CollabIT website.
To learn more about CollabIT’s activities visit the website: http://aiia.com.au/ pages/collabitact.aspx Grnd Floor, 39 Torrens St Braddon ACT 2612 T: (02) 6281 9400
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ASSOCIATIONS TO BUSINESS CHAMBER OF WOMEN IN BUSIINESS
A2B
OH&S – there’s more to it than meets the eye CHAMBER OF WOMEN IN BUSINESS
Dianne Nockels, Promotions Officer Chamber of Women in Business
We all know there are rules and regulations about health and safety in the workplace, and most people, most of the time, probably obey these rules. But do you just go through the motions of doing the bare minimum required by Occupational Health and Safety legislation, or do you go a bit further? UPCOMING EVENTS Annual Gala and Awards Dinner Tuesday 17 August, 7:00pm Federal Golf Course Cost: $95
For more information: www.cwb.org.au
Or call 6282 6255 Find us on Facebook
Keeping your staff safe enhances their job satisfaction and therefore reduces staff turnover.
*Purple Tick businesses are committed to providing women with the customer service they desire. For details go to: www.purpletick.org.au Featured businesses: www.pacificformwork.com.au www.autoco.com.au For more information: T 6282 6255 F 6282 7191 E office@cwb.org.au www.cwb.org.au
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o you treat OH&S as a necessary chore, and let your staff see you do so? If so, you are creating a culture of disregard for OH&S, but does it matter? The main reason for a strong OH&S focus is, obviously, the health and safety of the workforce. This is a legal and, in my view, moral obligation for every employer. But there are in fact a number of benefits to promoting OH&S in your business. CWB member Graciete Ferreira is manager of Pacific Formwork Pty Ltd. In an industry often criticised for unsafe working practices, this family-owned construction business considers the health and safety of their employees of the utmost importance. I asked Graciete how Pacific Formwork had benefited from a strong OH&S focus. Extended benefits Unsurprisingly, the main benefit was the low number of accidents and injuries experienced by the staff at work. However, Pacific Formwork discovered this brought a number of extended benefits: Staff satisfaction and high staff retention levels In a 2008 survey 96% of Pacific Formwork’s employees reported they intended to remain with the company for at least the next two years. This might not seem much, but remember this is in an industry with a reputation for high turnover of shortterm contractors. Constantly having to recruit and, perhaps, train new employees is costly and time consuming. Keeping your staff safe enhances their job satisfaction and therefore reduces staff turnover. Low levels of sick absences High levels of staff absences due to sickness or injury can be costly. Focusing on workers’ safety at Pacific Formwork reduced sick-leave, not only from physical injury but also from stress. Stress is now a major cause of sick-leave, estimated at being behind a third of all new incidences of illhealth by the UK’s Health and Safety Executive. Reduced Insurance Premiums. As with car or house insurance – with corporate insurance the fewer claims you make, the lower the premium. This has saved Pacific Formwork considerable amounts of money
over the years. When the payroll amounts to millions of dollars every year, a reduction in insurance premiums of just one or two percent can add a lot to the company’s bottom line. How can OH&S policies be strengthened? Pacific Formwork employs a full-time Safety Officer, who spends most of his time developing work-method statements, project safety plans, and training and induction courses. Not every organisation can be expected to have a full time Safety Office, but there should be someone whose job description includes that role, or the role can be outsourced. Innovation and investment Pacific Formwork has sourced the lightest possible safety components, and invests heavily in innovative products to reduce physical stress and injury. Realising that a safety net was one of the most effective fall-arrest systems, and the majority of those available in Australia had not been tested for strength/breaking point, Pacific Formwork decided to import good quality safety nets themselves. This provides an additional bonus of a retailing opportunity, selling these safety nets on to other construction companies. I also discussed with Autoco, a Purple Tick* business, their approach to OH&S. I discovered this Purple Tick business also goes further than the minimum legal requirements when it comes to the health, safety and well-being of their employees and customers. Autoco ensures that all equipment is modern and regularly tested and tagged. The working environment is kept clean and tidy, unlike the stereotypical workshop most of us imagine. They also maintain a clean, efficient and welcoming front office. As with Pacific Formwork, Autoco enjoys low staff turnover in an industry normally associated with the opposite. Is any of this relevant to those of us working in an office environment? Yes, I believe it is. Ergonomic furniture, an ambient temperature, good lighting, screen breaks – the office equivalent of a reliable safety net perhaps? What could you do to improve your working environment, for your employees and/or your customers?
How do you keep your staff motivated at work?
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No matter what business you are in, keeping good employees is a vital ingredient of success. Investing in training for your employees shows that you value them, their future and the future of your business. CIT offers a range of courses in Business Administration, Management (including a postgraduate qualification from Charles Sturt University), Accounting, Recordkeeping, HR and Marketing, that will improve staff morale and ability. CIT offers part-time and flexible study options so both staff and employer can work around other priorities. CIT also recognises your employees’ current experience. For more information call the CIT Student Services Hub on (02) 6207 3188 or email: infoline@cit.act.edu.au > Developing a skilled community
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beat the leadership challenge Is motivating and inspiring your workforce a constant challenge? Randstad’s 2010 World of Work Report reveals Australians’ expectations of an effective leader is high on the agenda — causing many leaders to consider changing the way they lead. For advice to help you beat the leadership challenge and drive the success of your organisation, register for your copy of the report by visiting www.randstad.com.au
www.art-atelier.com.au I info@art-atelier.com.au I t. 6288 3626 corporate I events I editorial I portrait I product I architecture I fashion
ASSOCIATIONS TO BUSINESS ACT EXPORTERS’ NETWORK
A2B
Reduced funding for Export Market Development Grant scheme: disastrous result for many businesses Gemma Hansen ACT Exporters’ Network
Australian exporters have faced many obstacles over the past two years – a buoyant dollar making our products less affordable on the world stage, the global financial crisis, and now the reduction in funding of the Export Market Development Grant scheme.
In recent years the scheme has been underfunded and this is causing a great deal of uncertainty in the export community. In May the Federal Government announced that funding of EMDG would be cut by $50M down to $150M.
The ACT Exporters’ Network is proudly sponsored by the ACT Government, Canberra Business Council, the Centre for Customs & Excise Studies and AusIndustry.
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MDG is a scheme that has been supporting Australian exporters for many years to launch their products internationally by funding a portion of overseas marketing costs. In recent years the scheme has been underfunded and this is causing a great deal of uncertainty in the export community. In May the Federal Government announced that funding of EMDG would be cut by $50M down to $150M. A further announcement received in early July advised businesses that due to this underfunding of the scheme, first tranche payments for 2009/10 grants would be set at just $27,500 (compared to $40,000 in 2008/09). A disastrous result for all businesses who have invested money in developing international markets with the understanding that the government would assist with up 50% of these costs. Small to medium businesses rely on this scheme to take that first step onto the export stage. Canberra business Seeing Machines have accessed EMDG funding over several years. Belinda Burgess, COO of Seeing Machines says “Due to the nature of our business we were always going to get most of our revenue from overseas. EMDG has been very beneficial to us in helping fund some of our international marketing expenditure and in the early years of the business we would have really struggled without it”. Grant applicants for 2009/10 can be approved for a maximum rebate of $200,000 but their first payment will only be $27,500 and then they will have to wait until June 2011 to see whether they will receive further funding. This level of uncertainty makes it very difficult for businesses to sustain international growth. Businesses new to EMDG such as iCognition Pty Ltd will go into a scheme that has been so beneficial for companies in the past, but provides no assurances for moving forward. Joe Mammoliti, Director of iCognition says “There are many conferences and trade shows that we see as beneficial to our export growth, but we may have to reconsider how much international travel we can consider to do with the cuts to the EMDG scheme”. The export community is campaigning for the government to provide an additional $50M to the EMDG scheme for 2009/10 grants.
We are also looking for assurances from the federal government that the scheme will maintain funding of at least $200M per year for future grant applicants. Gemma Hansen works for Export Solutions assisting Australian businesses access the Export Market Development Grant scheme. www.exportsolutions.com.au
The 2010 ACT Chief Minister’s Export Awards Join the ACT Chief Minister, Jon Stanhope MLA, ACT Region business leaders and the 2010 Export Awards finalists at a lunch to recognise and celebrate the achievements of our top exporters. Date: Wednesday 8 September 2010 Time: 12.15pm for a prompt 12.30pm start Venue: Federation Ballroom, Hyatt Hotel Canberra Dress: Business attire Cost: $85 per person or $800 for a table of 10. A special early bird rate of $750 is available for tables of 10 purchased by 20 August 2010. RSVP: Tickets can be purchased online at www.canberrabusinesscouncil.com.au For more information about the Presentation Lunch, contact The Communication Link on 02 6226 8880 or email felicity.cliff@communicationlink.com.au
Above: Chief Minister, Jon Stanhope with 2009 ACT Export Awards winners.
UNIVERSITIES TO BUSINESS THE UNIVERSITY OF CANBERRA
Establishing Canberra as an international education hub U2B
Professor John H Howard Pro Vice-Chancellor, Development, University of Canberra
The ACT Government has commenced a consultation process aimed at creating a connected tertiary education environment. The process provides an opportunity to think about a broad, longer term vision for Canberra’s tertiary education system as an international education hub.
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ith some strategic initiatives and collaborative actions by education institutions, and supporting investments from government and industry, Canberra’s tertiary education system could be the best in the world for a region of its size. Canberra is already characterised by high levels of education attainment, a significant research base, and strong networks that support innovation. Canberra is unique as an Australian international city – being the seat of the Australian Government and host to more than 70 diplomatic missions. It is well known that industry is attracted to regions that have strong education and training capability. Building the link between education and industry is a major opportunity for Canberra’s economic future. To achieve the vision, the education system should provide an integrated framework for the delivery of tertiary level qualifications in accordance with Australian and internationally accepted standards. The system should also: • Provide the knowledge, skills, and competencies appropriate to educational, professional, technical, and vocational needs of industry, government and the community • Support the growth of the professions through opportunities for lifelong learning relevant and appropriate to workplace needs and requirements • Ensure that Canberra and region school leavers see the system as the best place to enter and continue with tertiary education • Be supportive of international students through services, amenities, and work place learning and employment opportunities. The ACT tertiary education system includes five universities: The ANU, the University of Canberra, The University of NSW at ADFA, the Australian Catholic University, and Charles Sturt University. The presence of these institutions establishes Canberra as a genuine university city. In the vocational sphere the system includes the Canberra Institute of Technology and a number of prominent private education providers and the International Hotel School. There are also linkages with the Illawarra Institute that operates in Queanbeyan. Our senior high schools and senior secondary colleges
are building closer links with tertiary institutions – evidenced in the naming of University of Canberra Senior Secondary College at Lake Ginninderra and University of Canberra High School (Kaleen High School). An integrated tertiary education system would bring substantial economic benefits as well as educational outcomes. In addition to attracting industry, education institutions are a major source of direct and indirect employment and downstream economic impacts that flow from income and expenditures on goods and services in the Canberra economy. There are, of course, a number of challenges to be addressed. And there are competitors, of course – nationally and internationally. For example Middle East and Asian Governments are inviting foreign universities to participate in education hubs. These include Dubai Knowledge Village, Bahrain Higher Education City, Kuala Lumpur Education City, and Singapore Global Schoolhouse. Over recent years, higher education has become a global industry, and the global education market is growing, and will continue to grow. Developing countries are creating larger middle classes and building significant education capacity and capability. China has 600 universities and now attracts more students from overseas than it sends out. Singapore has moved from a source market to a destination market. It follows that in this global competitive environment, Canberra’s universities are creating more sophisticated international strategies. Like other universities they are complementing fee-based international recruitment with collaborations and partnerships that emphasise cross cultural learning and study abroad. But the tertiary education institutions cannot develop a global education hub on their own. Significant supporting investments are required in teaching facilities and services and in student accommodation. Regulatory imposts such as school fees for children of visiting students and staff need to be removed. Changes and developments in the international education market provide significant opportunities for Canberra. Around the world cities are moving in this area. Canberra should be moving too – to position Australia’s national capital as a global education hub drawing on growing recognition as Australia’s university city.
It is well known that industry is attracted to regions that have strong education and training capability. Building the link between education and industry is a major opportunity for Canberra’s economic future.
For further details about how your business can interact with the University, please contact Professor John H. Howard, University of Canberra on (02) 6201 5050. B2B in Canberra | August 2010
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ALIC ALUMNI EVENT @ YELLOW EDGE PERFORMANCE ARCHITECTS 1. Matilda Embersen, Philip Eliason and Jane Broadman 2. Stuart Barr, Tania Tahana, Sangeeta Pilger and Len Hatch 3. Jill Grant, Ben Jarvis and Annabel Mayo 4. Andrew Simon and Richard Rigby 5. Natasha Murphy, Andrew Podger, Andy Gregory and David Sweeny 6. Tim Guilfoyle, Natalie Boswell, Kristen Hannan and Nicole Stevenson 7. Susan Henderson and Paul Ross
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ACT CHAMBER YOUNG BUSINESS NETWORK @ HOLY GRAIL 1. Sarah Golding, Peter Ricardo, Karin Glocker and Abdal Aijazi 2. Alison Percival, Scott Harris, Brooke Ingram, Olivia Ryan and Natasha Matkovic 3. Brooke Turner, Vanessa Ryan, Pria Jeevanthan and Katrina Kounnas 4. Jason Claudianos, Stephanie Tully, Jo Madsen, Mook Clifford and Rhys Caldwell-Bastian 5. Jo Powell, Toni Friend, James and Kirsty Greenshields and Sam Andrewartha
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OPEN DAY 2010
Primary School Alexander Street Red Hill Pre-school to Yr 6 Blamey Crescent Campbell Pre-kinder to Year 2
Senior School Years 7 - 12 Monaro Crescent Red Hill
www.cgs.act.edu.au
We look forward to welcoming you to Canberra Grammar at an Open Day.
Thursday 2 September 11am to 1pm To request a place at an Open Day on 2 September please contact Nikki Elliott | 02 6260 9700 | enrolments@cgs.act.edu.au
C G S A A D B S
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sleepless nights? As winter sets in and its harder to get out of bed in the morning, is staff productivity and their motivation causing you to have sleepless nights? Rest assured, you’re not alone! Randstad’s 2010 World of Work Report, recently released, has revealed that managing the productivity of the workforce is one of the 10 burning questions keeping business leaders awake at night. To help you get a good night’s sleep, register for your copy of the report by visiting www.randstad.com.au
b2b.indd 1
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NICTA ‘MEET THE FOUNDER’ SERIES @ NATIONAL ICT AUSTRALIA 1. Jonathan Gray, Gib Moore and Neris Pilka 2. Tim Conway, Chris Mills and Mark Todd 3. Chris Faulks and Peter Gordon 4. Kingsley Omosigho and Scott Leggo 5. James Nikolaidis, Mohammad Zamani and Michael Doyle
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CANBERRA BUSINESS COUNCIL CONNECT @ ANU – BRINGING TOGETHER RESEARCH AND BUSINESS 1. Ian Cox, Jonathon Peters, Peter Christen, Paul Melloy, Thushara Abhayapala and Matt Bullock 2. Senator Kate Lundy, Chris Faulks, David Mathews and Phil Sloper 3. Carla Huetter, Michael Cardew-Hall and Lyn Eiszele 4. Kate Holland, Amy Fu, Verity Blackman and Rebecca Vassarotti 5. Khoi Nguyen Tran, Tan Trong Dang Vo and Joshua Milthorpe 6. Vasenta Chaganti, Maude Arv, Oliver Nagy and Dale Holland
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Capital Cap Regio ion n BEC
How to Create or Build Your Business with Colin Emerson This excellent three hour workshop is for business intenders and those who are in the early stages of their business plans. Dates: Dates: Monday 26th 26th July July -- Queanbeyan Queanbeyan 6.00 6.00 pm pm to to 9.00 9.00 pm pm Monday Monday 2nd 2nd August August -- Goulburn Goulburn 1.00 1.00 pm pm to to 4.00 4.00 pm pm Monday Tuesday 3rd 3rd August August -- Yass Yass 6.00 6.00 pm pm to to 9.00 9.00 pm pm Tuesday Thursday 5th 5th August August -- Canberra Canberra 9.30 9.30 am am to to 12.30 12.30 pm pm Thursday Wednesday 1st 1st Septembe September- -Cooma Cooma12.00 12.00pm pmtoto3.00 3.00pm pm Wednesday Wednesday 8th 8th September September -- Queanbeyan Queanbeyan 9.30 9.30 am am to to 12.30 12.30 pm pm Wednesday
Cost Free
To secure your place call: (02) 6297 3121 for details visit www.crbec.com.au ‘The services services provided provided by by Capital Capital Region Region BEC BEC are are partially partially funded funded by by the the Australian Australian Government.’ Government.’ ‘The
Canberra's Website Experts
Professional Education Courses
UNSW@ADFA is a campus of the University of New South Wales and is located at the Australian Defence Force Academy in Canberra. UNSW@ADFA offers a range of postgraduate programs and Professional Education courses for the general community and Defence personnel. These courses provide stimulating learning and networking opportunities within a supportive environment. Courses offered in August – October 2010: Communications and Information Systems Basic Communications Principles, 16 - 18 Aug Modern Communication Systems, 19 - 20 Aug
Management Testing Preparedness - Minimising the Risk through Exercise Management, 12 - 13 Oct Organisational Resilience, 20 - 21 Oct
Occupational Health & Safety/Laser Safety Laser Safety 1 Day (Canberra), 13 Sept Laser Safety 1 Day (Melbourne), 20 Sept Laser Safety 4 Day (Melbourne), 20 - 23 Sept
Project Management Software Project Management, 28 - 30 Sept
Risk Management Risk & Contract Management, 14 - 15 Oct
Systems Engineering Requirements Engineering, 6 - 8 Sept
Systems Thinking Systems Thinking and Modelling, 20 - 22 Sept Most of these courses can be tailored for in-house delivery. A number of our courses can also be used as credit for eligible postgraduate programs. E: bsu@adfa.edu.au T: (02) 6268 8421 For information about more than 70 courses visit:
www.unsw.adfa.edu.au/ads/b2b Cricos Provider Code: 00100G
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ACT CHAMBER OF COMMERCE BUSINESS AFTER BUSINESS @ WESTPAC CANBERRA CITY
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1. Paolo Villanueva and Kerry Henshaw 2. Des Lineham, Ian Tidy, Natalie Grainger and Kylie Leary 3. Mook Clifford, Brendon Prout, Donna Chalmers and Jo Madsen 4. Kate Mudge and Alison Barton 5. Mark King, Scott Harris, Ross Hickey and Panny Anastasiades 6. Justine McDonald, Wayne Bolin and Irene Cassimatis 7. Shar Grieve and Suzette Bailey 8. Malcom Hedgecoe, Melvin Arulanthu, Abdel Mahtab, Peter Maher and Belnda Ayers
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CANBERRA MANAGERS FORUM & ACT STATE IAWARDS FINALIST PRESENTATIONS @ FEDERAL GOLF CLUB 1. Katy Gallagher MLA, Phil Sloper, Terry Griffith and Jed Johnson 2. Katy Gallagher MLA, Phil Sloper and Boaz Fischer 3. Katy Gallagher MLA, Andrew Sutton and Phil Sloper 4. Katy Gallagher MLA, Phil Sloper, Terry Griffith and Jed Johnson 5. Katy Gallagher MLA, Phil Sloper and Laurence Buchanan
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Be seen in b2bincanberra.com.au T 02 6161 2751 advertising@b2bincanberra.com.au
Strange thing money. People get very personal, very protective, very individual about it.
A long time ago the Bendigo recognised that successful individuals are the living heart of successful communities.
Maybe that’s why the word ‘bank’ and the phrase ‘community interest’ seemed worlds apart until the Bendigo came along.
So the Bendigo built a bank service stocked with banking products designed for individuals – then placed this resource at the heart of communities across Australia.
Of course, the Bendigo is much like any other bank – with loans, branches, ATMs, credit cards, interest bearing accounts, all the usual stuff. The one blinding difference between us and our competitors is an insight.
The result is the phenomenon known as community banking. Its spectacular success is built on one simple insight – at the centre of all successful communities is the successful individual. Someone like U.
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If U want to find out more, call into your nearest branch: Canberra branch 161 London Circuit, Canberra Phone 6290 9700
Jamison branch Shop D05 Bowman Street, Jamison Plaza Phone 6253 0088
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