TELSTRA WOMEN'S BUSINESS AWARDS Feature on winners and finalists inside
SPECIALIST LAWYERS? DDCS Lawyers explain whats so special
RSM WARNING TO DIRECTORS Are you liable for payroll tax and more? NOVEMBER 2013
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Bartercard a world of business opportunities
B2B
ADVICE
ACCOUNTING
BUSINESS LAW
Are you prepared for the unexpected?
Contractual risk: have you filled the gaps?
CORPORATE GOVERNANCE
$4.95 inc. GST ISSN 1833-8232
Does not-for-profit = poorly governed? 9 771833 823005
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FOR SALE
INNER SOUTH AWARD WINNING RESTAURANT FOR SALE PRICE GUIDE: $400,000 + SAV (CIRCA $20,000) •
Specialise in fresh seafood
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Classic fit-out, comfortable dining area
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Location advantage – situated in the parliamentary triangle and surrounded by the wealthiest suburbs in Canberra
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Replacement value of equipment and fit-out in excess of $200,000
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Highly experienced head chef, popular chef’s special dishes and seasonal menus
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Long lease of 12 years with fixed rent
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Fully licensed + BYO
Fast population growth and ample new commercial/residential developments in surrounding areas
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Trading only 4.5 days a week and closed for three weeks during Christmas
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Many options to expand the business
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Can be run owner-managed or under full management
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Current earnings (EBITDA): approximately $170,000 per annum
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Seats 60 inside and 40 outside with appropriate government lease
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Current owner only works 20-30 hours a week
CONTACT OWNER CHRIS 0404 431 998
CONTENTS
B2B EDITORIAL
Don't drive home pissed! I agonised over the headline for this editorial. Just as Prestige Diala-Driver agonise every time they attend a corporate function and see TIM men, and women, stagger straight BENSON past them, get into their vehicles Editor and drive - putting both themselves and other drivers at risk. Many of us have done this at least once (and for some on a regular basis). And of course you can feel good that you haven't crashed your vehicle or killed anyone - yet. Ruth Foley, CEO Prestige Dial-a-Driver, has come up with a clever idea for businesses and business people to be able to have a few drinks this silly season and get both revellers and their cars home in one piece. It works a bit like this. I booked Prestige Dial-a-Driver before my wife and I hopped into our car and went to the Canberra Business Council Annual Dinner. At around 11pm I rang them and said we were ready to be picked up. At 11.20pm they turned up and chauffeured us home in our own vehicle. We were followed by another Dial-a-Driver that then picked up our driver and left. A very professional service and around the same cost as a taxi. Ruth's good Idea is to offer individuals and businesses the opportunity to purchase a booklet of 5 or 10 pre paid vouchers that can be used over the next 12 months. These would be great for festive season drinks and other functions where some may overindulge or even just have that extra drink that can lead to loss of licence or much worse. So I urge you to use this service or any other Plan B to RBT this festive season. Check them out at www.dialadriveract.com. au
Photo by Andrew Sikorski
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BARTERCARD: A WORLD OF BUSINESS OPPORTUNITIES
Cash or Bartercard? Bartercard is alive and well in Canberra and is our feature story this month. Bartercard has created a flexible, secure and fully accountable way for businesses to transact their goods and services with businesses all around the country and the world. The Bartercard network has more than 55,000 cardholders and 74 offices throughout the world. Bartercard Canberra has 250 members and is set to double over the coming years. Brothers Gabriele and Enrico Saccardo, of La Scala Restaurant fame, own and manage the Canberra office. If you want to gain new customers, move excess stock, free up cash and increase profits - then read this months cover story: Bartercard - a world of business Send all comments to editorial@b2bincanberra.com.au opportunity.
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CONTENTS
FEATURES 06 So what’s so special about being a Specialist? DDCD explains
08 Can Australia deliver the high-skills it needs?
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Hays answers 10 The age of e-commerce: The rise of online shopping with Canberra Web 12 RSM Bird Cameron warns; directors could be personally liable for Payroll Tax and more . . .
14 Are you looking for an Aussie Christmas Venue?
32 HEALTH Weight loss for life By Healthy Identity PROPERTY FINANCING Property investment cash-flow By Loan Market Home Finance Brokers 34 RECRUITMENT Communication skills are key! By PCA People
The Captain's Flat Hotel is for you!
16 Telstra Women’s Business Awards COVER STORY 21 Bartercard: A world of business opportunities
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26 ADVICE FROM THE EXPERTS 27 ACCOUNTING Is your organisation prepared for the unexpected? By RSM Bird Cameron BUSINESS LAW Contractual risk: filling the gap By Bradley Allen Love 28 CORPORATE GOVERNANCE Does NFP = poorly governed? By Australian Institute of Company Directors
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INTELLECTUAL PROPERTY Trade mark examiner adverse reports – not necessarily fatal to your application By Arete Group 30 ESTATE PLANNING An estate planning checklist By Certus Law
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35 SERVICED OFFICES Spend in order to grow By Synergy Business Centres WEBSITES Your business and digital economy By Synapse Worldwide A2B: ASSOCIATIONS TO BUSINESS 36 MINISTERS MESSAGE: Debt and borrowing 37 ACT & REGION CHAMBER OF COMMERCE & INDUSTRY: Meet the business development manager 39 CANBEERA BUSINESS COUNCIL: Time for a ‘meeting place’ in the ‘meeting place’ 40 ACT EXPORTERS: ACT Exporter’s top issues BUSINESS NETWORKING 42 B2B @ ACT Telstra Women's Business Awards 43 B2B @ ACT Chamber Golf Day 2013 44 B2B @ Canberra Business Council's Annual Gala Dinner
FAMILY LAW Keeping the personal private By DDCS
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F E AT U R E Rebecca Tetlow, Sally McGuinness and Stuart Cameron, DDCS Lawyers
SO WHAT’S SO SPECIAL ABOUT BEING A SPECIALIST?
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hoosing a lawyer to help with relationship changes is an important process. Not all lawyers are the same and while a lawyer must have a law degree, few lawyers would profess to know all the law. Finding a lawyer who specialises in the field in which you need advice is a pretty sensible starting point. Finding a specialist lawyer who chooses to work in the field they love will bring added benefits. At Dobinson Davey Clifford Simpson our talented and experienced lawyers working in family law and Wills and Estate planning do so because they love it and because they are very good at their jobs. Our clients get the benefit and protection of lawyers who know what they are doing and care about the client’s experience and outcomes. We also support and pursue Specialist Accreditation. The Specialist Accreditation Scheme was established by the NSW Law Society in 1992 as a way for lawyers to strengthen their expertise in a particular area of practice and to distinguish lawyers who demonstrate advanced skills in an area of practice. It is a structured and rigorous process of assessment about existing knowledge, competency and ability. At DDCS we are proud to announce that three more of our lawyers have successfully gained Accreditation as Specialists in their fields. Stuart Cameron and Sally McGuinness are now Accredited Specialists in Family Law. Rebecca Tetlow successfully attained accreditation in Wills & Estates Law and is Canberra’s only Accredited Specialist in Wills & Estates Law. Sally, Stuart and Rebecca join myself and my fellow directors (whom are all Accredited Family Law Specialists) Phil Davey, Lois Clifford, Di Simpson and Senior Associate, Alison Osmand. AT DDCS we have eight Accredited Specialists, more than any other law firm in the ACT region. DDCS is committed to encouraging and facilitating our lawyers
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By Julie Dobinson
to continually learn and to strive for excellence, in their professional practice and in our client service. We continue to find that the best outcomes for clients have been achieved by lawyers who are experienced and work in their field by calling and whom have high skills in their specific area of practice. Undertaking Accreditation is another way of communicating to our clients how seriously we take these matters. One of the key purposes of the Accreditation Scheme is to assist members of the public to easily identify lawyers who have particular competence in a specific area of practice. Members of the public can feel confident that an Accredited Specialist has been independently assessed as an expert in their field. Gaining accreditation is no easy feat and is not awarded by the Law Society lightly. Before applying to undertake the 10 week accreditation program, a lawyer must have: • Practiced full-time for at least five years; and • Worked in their area of specialty for at least three years. They must then pass a series of rigorous assessments in the areas of communication skills, drafting documentation, problem solving, interviewing technique and ethical issues. An Accredited Specialist is not just proficient in the technical aspects of the area of law in which they practice, but also has highly developed skills in problem solving and communication, to enable them to obtain the best outcomes for their clients. The ACT Law Society does not currently offer an Accreditation Scheme for lawyers practising in the ACT, which is why the DDCS lawyers have participated in the NSW Scheme. If you would like to make an appointment with one of our lawyers for expert advice, please telephone our office on 6212 7600. mail@ddcslawyers.com.au | www.ddcslawyers.com.au
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Can Australia deliver the high-skills it needs?
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By Jim Roy, Business Director of Hays in Canberra
n ongoing shortage of high-level skills means that Australia’s labour market is yet to find balanced ground, according to our latest Hays Global Skills Index. The question being asked is “can it deliver the high-skills needed?” The Index, which assesses the efficiency of the skilled labour market in 30 countries, or its ability to supply skilled labour, found that in Australia the labour market is still not producing the right skills pipeline. The Index scale ranges between 0 and 10, with the higher the Index score the greater the difficulty for employers in findings skills. A score greater than 5 indicates skill shortages; less than 5 indicates few if any signs of skills shortages. The score of 5.5 for Australia suggests employers face difficulty when recruiting for high-skill jobs. As the Abbott Government settles down here in Canberra, boosting employment should be a priority. But central to this is arguably the biggest thorn in the side of Australia’s labour market: the ongoing shortage of higher level skills. Yet while unemployment is expected to rise in 2014, as confirmed by Treasurer Joe Hockey earlier this month, employers still struggle to attract highly skilled and experienced professionals. It is a bitter paradox caused by employers being unable to find the skilled workers they
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need, particularly in more technical areas such as IT, construction and engineering. Demand is not evident in every function in every region of Australia, but we are seeing sustained demand for high-skill professionals. So instead of a balanced labour market where employers can easily recruit, retain or replace their key talent at generally prevailing wage rates, a shortage of professionals for jobs in high-skill industries and high-skill
the job market needs to deliver the talent necessary for businesses and ultimately societies to thrive. occupations is still evident. Skills gaps can manifest themselves through wage pressures, a talent mismatch and/or supply. Our Index looks at all three areas. Of interest in Australia are the three scores for wage pressure. Australia’s high ‘overall wage pressure’ score of 7.1 shows the country is expected to face overall wage pressures above historic norms. We expect to see growth in wages across the whole economy, after allowing for inflation. While overall real wage growth is expected to be down slightly from last year, this indicator continues to add upward pressure to the overall Index score of 5.5 for Australia. There is also a widening in pay differentials between high and low-skill industries, as the
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score of 8.0 for ‘wage pressure in high-skill industries’ shows. New Zealand received the highest score possible of 10.0 for ‘wage pressure in high-skill industries’, exacerbating the problem for this part of the world. Australia is also seeing a widening gap in pay differences between high-skill and low-skill occupations, as indicated by the score of 6.0 for ‘wage pressure in high-skill occupations’. According to Hays, in Canberra the top five skills in most demand are: 1. Payroll professionals 2. Early Education workers in childcare 3. Civil Engineers 4. Software Developers with (.Net & Java) 5. Digital Marketing experts In summary, the job market needs to deliver the talent necessary for businesses and ultimately societies to thrive. It is critical for Australian education authorities and businesses to work closely to ensure the education system is designed to provide students with the skills that their future employers require. The Hays Global Skills Index can be viewed at www.hays-index.com/2013 For your copy of the 2013 Global Skills Index, please contact Jim Roy Hays in Canberra on 02 6257 6344. www.hays.com.au
THE BASICS FOR EFFECTIVE RISK MANAGEMENT Seminar Invitation
We invite you to hear insights and discuss the advantages for your organisation of an approach for assessing, managing and mitigating risk. All not for profit organisations need to manage risk, from small local associations through to national peak bodies. If you are having difficulty implementing a risk management process or simply need to reinvigorate the process you already have we can help. This complimentary seminar will help provide the following: • Increase the chance of success in achieving business goals and seizing opportunities • Communicating and working with stakeholders to meet mutual goals • Targeting your resources, protecting assets and better managing costly surprises • Improve governance, assurance and accountability, while managing any downside risks • Enabling continual monitoring of business health DATE Thursday 5 December TIME 12.15 for 12.30 start – 2.00pm WHERE Dialogue Business Centre, 4 National Circuit, Barton To RSVP please contact Donna Collins on donna.collins@rsmi.com.au or 02 6217 0329.
F E AT U R E
The Age of E-Commerce: The Rise of Online Shopping Online shops have been growing in popularity as consumers are drawn to the convenience of shopping online, wherever and whenever they want. This year, for the first time, more than half of all Australian consumers will make purchases from online stores. With more than $24 billion dollars being spent online in Australia over twelve months to March this year, online shops have become an important aspect of every day business across so many industries.
TECHNOLOGICAL ADVANTAGE Online shops are incredibly accessible compared to conventional “brick-andmortar” storefronts. They are always open, allowing people to shop online whenever they want; no having to wait until the store opens, or rushing to get to it before it closes! An online shop is accessible from wherever a customer wants to shop, all they need is a connection to the internet. Customers can make purchases online from home, at work or on the bus; wherever they want to shop, whenever they want to shop. Online shops have another advantage over their offline counterparts: lower overheads. Many of the initial setup costs and running costs of a traditional store don’t apply to e-commerce. There is no need to rent out a shopfront for hundreds or thousands of dollars a week then spend thousands or tens of thousands of dollars on outfitting the shopfront before the store can even open. Staff don’t need to man the counter for the whole day while the shop is open, everyday the shop is open, whether there are customers or not. When you hire staff to process orders
from your website, you are hiring because the business is making money, not because it might. With an online store, there is no practical limit to how many people can visit your store at once, or how much they can buy. There is unlimited shelf space to sell as many products as you want. If stock is expensive, customised or perishable, you can purchase stock or create the products as orders come in so there is less wasted stock and lower overheads for stock storage.
EXPAND AND CONQUER Because of their accessibility and low overheads, an online shopfront is an excellent way for a business to expand in new directions without all of the expenditure and risk that expanding or opening new physical stores bring. By creating an online store, a business increases its available customer base, going from the people that have access to the business’s shopfront, or shopfronts, to the entire country or even into overseas markets. As more people have access to your business, your potential customer base can expand. Being open for business on the internet can bring millions of customers to your business.
CanberraWeb 10
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DON’T QUIT YOUR DAY JOB (UNTIL YOU’RE READY) Since online shops don’t require a manned shopfront, they also make an ideal avenue for anyone looking to start up a business. An online store doesn’t require staff to man the counter like a physical shopfront does, allowing entrepreneurs to start a business without “quitting their dayjob”. This means you are not dependant on the income from the store, lowering the risk of the start-up and giving the new business the time it needs to settle in to its place in the market. Online stores continue to increase in popularity as the importance of e-commerce in the Australian marketplace grows. This, combined with their accessibility and low setup and overhead costs, make online shops a serious consideration for both new businesses that just starting up and existing businesses that are looking to expand.
Call us on 02 6223 2222 or drop into our office at U5 47 Vicars St, Mitchell for a chat. www.canberraweb.com.au.
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BEWARE directors could be personally liable for Payroll Tax and more . . .
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udits by the ACT Revenue Office (ACTRO) for payroll tax purposes can result in significant tax liabilities for the unprepared, particularly if workers you’ve counted as contractors are determined to be employees and you’ve underestimated your tax liability. What many directors aren’t aware of, is the substantial power that ACTRO has to collect the resulting debt. Those who are unsure about the role of ACTRO and the power they can exercise to collect revenue, may find this summary useful. WHAT IS ACTRO? ACTRO – the ACT Revenue Office – administers taxation and revenue collection for the Territory. Payroll tax is a significant source of that revenue and it is managed in accordance with the Payroll Tax Act 2011 (PTA) and the Taxation Administration Act 1999 (TAA). ACTRO MONITORS COMPLIANCE In carrying out its responsibilities ACTRO takes steps to identify businesses that should be registered for payroll tax but are not, and conducts audits of registered businesses to verify information provided and the payroll tax liability. In the event that your business is non-compliant and a tax liability results, ATCRO has substantial powers at its disposal to recover the tax owed. POWERS TO COLLECT TAX DEBTS Naturally, in the first instance ACTRO seeks to recover the debt from the business.
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F E AT U R E
However, where a business cannot pay the debt and fails to make a suitable arrangement to do so, ACTRO may seek payment directly from financial institutions holding money on the company’s behalf, directors, former directors or even third parties who owe (or will owe) money to the business. SECTION 54 NOTICES – COLLECTING DEBT FROM THIRD PARTIES Under Section 54 of the TAA, the Commissioner can serve a notice requiring another person to pay the taxpayer’s debt. This can include: • Someone who owes or will owe money to the taxpayer; • A person who holds (or may hold in the future) money for or on account of the taxpayer; • A person who holds (or may later hold) money on account of another person for payment to the taxpayer; and • Someone having authority from another person to pay money to the taxpayer; This is quite broad and could include your bank, a client you are expecting a payment from, or even someone who is purchasing an asset from you. These notices are similar to those used by the ATO which are commonly referred to as “ATO Garnishee Notices”. If the person served with the Section 54 Notice fails to comply, the result can be a fine of up to $5500 for an individual, or $27500 for corporations. SECTION 56B NOTICES – COLLECTING DEBT FROM DIRECTORS Where a corporation fails to pay an assessment amount, a director or former director can become personally liable. The Commissioner has the power under Section 56B to issue a compliance notice on: • A director of the corporation; or • A person who was a director when the corporation first became liable to pay the assessed amount or any part of that amount – or at any time afterwards. If the assessment amount is not paid, or the assessment is not ‘withdrawn’, within the period stated in the compliance notice, the director or former director is jointly and severally liable with the corporation to pay
the assessment amount. An assessment may be considered ‘withdrawn’ under this section if the corporation enters into a suitable arrangement with the Commissioner to pay the debt, if a voluntary administrator is appointed, or if the corporation begins to be wound up or liquidated within the meaning of the Corporations Act 2001. UNPAID PAYROLL TAX CAN LEAD TO WINDUP If a company fails to make its payroll tax payments, the ACT Government Solicitor may be asked to take action on behalf of the Territory to wind up the company. The NSW Office of State Revenue (NSWOSR) has a similar capacity to collect debt and has increased its payroll tax compliance auditing and winding up activities. WHAT YOU CAN DO In the event that a Section 54 Notice is issued or you receive a Section 56B Notice, there can be options if you act early. You may be able to save your business and limit your personal risk. If a notice has been issued, it’s time to speak to an expert and take appropriate action quickly. HOW RSM BIRD CAMERON CAN HELP RSM Bird Cameron has a team of 23 local turnaround and insolvency specialists on hand as well as a number of industry specialists across our national team. We offer a cost and obligation free initial consultation where we look at the options that may be available to you and offer advice on your circumstances.
Bird Cameron
Chartered Accountants
Tel: (02) 6217 0300 Lvl 1, 103 – 105 Northbourne Avenue www.rsmi.com.au
WHAT YOU NEED TO KNOW As a director or former director, you can be held personally liable for the company’s payroll tax debt. The Government can collect unpaid payroll tax from clients who owe your company money. Have you received a Section 56B notice? Act quickly – you may still be able to save your company and limit your personal liability. Act quickly if you receive a notice – RSM Bird Cameron can help you explore options that may save your company or limit your personal liability. If you cannot pay your payroll tax, ACTRO can take steps to recover the outstanding tax from other parties who hold money for you, owe you money, or hold money for someone who owes you money. This could include a bank, a client you’ve invoiced, or even a client’s bank. ACTRO can take steps to wind up your company if the company cannot pay its payroll tax.
TIPS TO KEEP ON TOP OF PAYROLL TAX • • • • • •
Register for payroll tax if it applies to you Make accurate assessments of your workers Have funds available to pay any tax liability Pay your assessment promptly Seek expert advice if you cannot pay Act quickly if you receive an notice from the Commissioner
With RSM Bird Cameron you really are… Connected for Success.
F E AT U R E
Are you looking for an Aussie Christmas venue?
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ooking for an Aussie Christmas venue then the Captains Flat Hotel - Home of the Long Bar, is for you. Once the longest bar in the Southern Hemisphere - now the longest bar in Australia. The Captains Flat Hotel is under the new management of Gary Green. Gary has a long history in hospitality and is putting his experience to good use in this historic venue. "Our aim is to provide an environment where everyone can enjoy great value for money food and accommodation, service with a smile and a hearty welcome to the Pub with one of the longest bars in the southern hemisphere," Gary said. This great hotel is located 60 km to the East - a leisurely 45 minute drive - of Canberra. "The Captains Flat Hotel is a place to relax and enjoy old fashioned country hospitality so close to Canberra yet still in the heart of the country," Gary explained. The hotel features The Long Bar, function rooms, 21 rooms (accommodation up to 45 people) and great country catering and counter meals. "The Hotel would be a great venue for your Christmas function or party in 2013. We are close enough to Canberra that you could come out for the day or stay a night or two and experience our country hospitality," Gary said. But don't just take Gary's word on what a great venue the Captains Flat Hotel really is: 'I would recommend the Hotel as a wonderful place to get away from it all and focus on important issues.' 'We held a workshop at the Captains Flat Hotel and are pleased to say we thoroughly enjoyed our time there and met all our objectives.' 'Great food and hospitality. A really different experience for most of our staff and clients we will be back.' Book your staff end of year function at the Captains Flat Hotel by speaking to proprietor Gary Green on 02 62366201 or 0422 710 800 or visit the website at: www.flathotel.com.au.
Captains Flat recent history
Gold was discovered in Captains Flat in 1852. By 1881 fossickers had found substantial deposits of reef gold and major mining operations opened up the area. The following year copper was found (which accounts for the denudation of the hills around the town) and by the late 1890s the town was booming. It was around this time that the town's population reached 3,000 and it boasted five hotels, an oyster bar and a jeweller. By 1899 the mines were closing down and the town, like so many mining settlements, started to disappear. By the 1930s there were only about 150 people living in the town and most of the equipment which had been used in the 1890s had been removed. Then, in 1937, Lake George Mines built a 39 kilometre railway to Bungendore and with new drilling techniques and flotation plants reopened the whole area. Once again Captains Flat was successful. By the end of the 1930s it was second-only to Broken Hill as its mines produced vast quantities of gold, silver, lead, zinc (it was the most important of all the minerals being mined), copper and iron pyrites. By 1962 this flurry of mining was over. The railway line closed down and the town returned to a sleepy hollow once again.
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INTERNATIONAL AID CRUSADER TAKES OUT TOP ACT BUSINESS AWARD 10 October, 2013 – A woman who grew up in war-torn Zimbabwe witnessing poverty and discrimination, and who is now shaping the direction of a global aid organisation, has been named the 2013 Telstra ACT Business Woman of the Year. Making a difference to the lives of millions is what CARE Australia does best and CEO Dr Julia Newton-Howes is at the helm leading its reform agenda. Her vision for CARE Australia was to have gender equality and women’s empowerment recognised as an organisational commitment because she believed removing barriers for women and girls was the best way to bring lasting change to poor communities. In 2009 the CARE International Board agreed to commit to fight global poverty by empowering women and girls. Since Dr Newton-Howes joined CARE Australia in 2007 – an organisation of 1000 people – government funding has doubled, private fundraising has increased by 30 per cent and non-program specific funds are up 54 per cent. On her watch, the Walk In Her Shoes challenge was born where participants take 10,000 steps a day for a week to raise money for global poverty. The campaign draws a parallel with the burden experienced by women and girls in developing countries, who often spend hours every day walking to collect food, water and firewood. She has also partnered with corporates such as The Body Shop, realising $400,000 in funding in just two years, and community groups such as Girl Guides Victoria. In a push for greater transparency, the former AusAID and World Bank executive upgraded CARE Australia’s website and annual report.
Consequently her organisation has been a finalist for two years running in PwC’s Transparency Awards. She also introduced a landmark report on CARE Australia’s impact in Asia over a five year period providing invaluable benchmarking to drive improvement. Dr Newton-Howes says passion, putting her hand up for new challenges and compelling people to join her journey are central to her career progression. “I have learned throughout my career that being right or sure about a direction you need to take isn't enough; you also have to persuade other people. I feel lucky to work on issues I am deeply committed to,” she said. Dr Newton-Howes is a member of the CARE International Board and Vice President of the Australian Council for International Development, the peak body for non-profits working in international development. Kate McKenzie, Group Managing Director Telstra Innovation, Products and Marketing and Telstra Business Women’s Awards Ambassador, said: “The ACT winners are inspirational business women with extraordinary achievements. “Judges were impressed by Dr Newton-Howe’s passion for CARE Australia's agenda and her high competencies across the organisation, including effective fundraising. They said her business strategy, which focused on reducing poverty by targeting discrimination, particularly of women and girls, was inspirational and added that she enjoyed high respect and engagement from all her staff in Australia,” Ms McKenzie said.
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WINNERS OF THE 2013 TELSTRA ACT BUSINESS WOMEN’S AWARDS ARE: BUSINESS OWNER AWARD Louise Curtis Lollypotz | Canberra
BUSINESS INNOVATION AWARD Lisa Roberts Provincial Plants and Landscapes | Pialligo
After the success of her hamper company, Hamperesque, Louise Curtis launched Lollypotz in 2009. A ‘chocolate florist’, Lollypotz now has 27 franchises across Australia and New Zealand as well as companyowned outlets, home-based operations and pop-up stores. In 2012, Lollypotz provided 250,000 gifts across Australia and 3,500 in New Zealand. Ms Curtis developed a customised web-based ordering service for corporate customers enabling them to set up their own branded gift range. Judges were impressed with Ms Curtis’ strong business achievements, her leadership, drive and communications skills.
Co-founder of Provincial Plants and Landscapes, Lisa Roberts has developed a holistic business model incorporating plants, produce, aquaponics, animals, revegetation, landscape design, sustainable agriculture, eco-living and philanthropy. Her business operates on renewable energy, its nurseries specialise in plants grown without chemicals using harvested rainwater, and a polyculture farm produces organic food including fish, eggs and honey. The company donates composting toilets, creates wells, and provides education programs for the community. Judges recognised the innovation in Ms Roberts’ integrated business model, saying while the various parts of her business were inter-related, they could operate independently.
PRIVATE AND CORPORATE SECTOR AWARD Anita Borella GHD Pty Ltd | Canberra In a male dominated engineering profession, Anita Borella has achieved a great deal in a short time. Ms Borella, a Senior Project Manager and Defence Infrastructure Panel Manager, graduated with a double degree in Engineering (Honours) and Commerce in 2006. Her work for clients to realise projects with capital expenditure of about $700 million requires a focus on vision and the bottom line, and her Defence Infrastructure Panel role receives high-level national attention. She was named Council of Australia's ACT Future Leader of the Year in 2010. Ms Borella’s collaborative leadership on the many high profile projects she manages and her success as an engineer in a traditionally male dominated industry was applauded by the judges. COMMUNITY AND GOVERNMENT SECTOR AWARD Dr Julia Newton-Howes CARE Australia | Canberra
YOUNG BUSINESS WOMEN’S AWARD Anita Borella GHD Pty Ltd | Canberra 2013 TELSTRA ACT BUSINESS WOMAN OF THE YEAR Dr Julia Newton-Howes CARE Australia | Canberra The ACT winners proceed to the national finals in Melbourne on 14 November. CommBank’s Women in Focus program, which opens doors to opportunity for women across Australia, is an Official Partner of the Telstra Business Women’s Awards. The Bank is proud to present each of the category winners with $4,000 prize money. Telstra recognises the ACT Business Woman of the Year with a major prize of $10,000.
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T E L S T R A W O M E N ’ S B U S I N E S S AWA R D S
B2B MAGAZINE CONGRATULATES ALL THE FINALISTS AND WINNERS OF THE ACT TELSTRA WOMEN'S BUSINESS AWARDS FOR 2013
CARON EGLE SAGE THINKING Finalist Business Owner Award Finalist Business Innovation Award
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AGE Thinking is a thought leader in the field of human learning and leadership development. SAGE Thinking goes beyond the normal leadership approach to focus on the
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science of learning, thinking and optimizing human potential to develop leaders and organisations. As a boutique training company, SAGE Thinking provides lcutting edge innovation in education, executive coaching, consulting and facilitation for leaders, executives and organisations to achieve tangible results and create their preferred futures. “While there are lots of organisations providing leadership education, SAGE is at the forefront of education and research into global leadership competencies so we can keep our clients at the forefront of their fields”. SAGE Thinking specialises in transformational change and renewal. Our central ideas focus on blending intuitive problem solving and generative decision making processes, based in a deep understanding of how the brain works, to achieve new and more encompassing ways of operating within a global market of increasing complexity and uncertainty. We do this by working closely with our clients, deeply understanding their needs and facilitating a journey of generative discovery through challenging their assumptions and mental models of the world, harnessing their strengths, presenting strategies to innovate
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quickly and aligning strategy with their organisational vision and purpose. This results in enhanced human performance, operational excellence, knowledge creation and increased economic return. Caron Egle, the Managing Director of SAGE Thinking, was thrilled to be a finalist in the 2013 Telstra Business Women’s Awards in two categories – Business Owner Category and the Innovation Category. Caron said it was wonderful to be part of such a prestigious award and to meet such extraordinary women doing amazing things in business. She was particularly pleased to be recognized for her innovative leadership development programs. She said that the needs of our global economy today has changed enormously and we need to develop new levels of thinking to better lead and create our preferred and sustainable futures. Caron can be contacted at caron.egle@sagethinking.com.au
T E L S T R A W O M E N ’ S B U S I N E S S AWA R D S
MARGARET BEERWORTH PHARMACY GUILD OF AUSTRALIA Finalist Community and Government Award
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argaret Beerworth, ACT Branch Director of the Pharmacy Guild of Australia, has a long-standing passion for representing the interests of members of organisations and her current role with the Pharmacy Guild is no exception. As the Guild’s representative for pharmacies in the ACT, her main focus is to advocate to government and strengthen relationships with industry stakeholders. In addition, she champions pharmacy health programs which are conducted in pharmacies. One of her most successful health programs involved securing an ACT Government grant
to promote cardiovascular health to the community. Margaret says, “the ‘warning signs of heart attack’ project not only significantly contributed to the health and wellbeing of hundreds of people in the ACT, but saved the lives of many pharmacy attendees who were referred to hospitals after staff recognised heart attack symptoms”. Community pharmacists are the most accessible of all health professionals – available for advice and assistance, without charge and almost always without an appointment. Pharmacies are therefore playing an increasingly important role as health care hubs, providing PBS medicines, medication advice, a wide range of health screening servicesand related advice and appropriate referrals. The old days of putting a label on a bottle of pills and leaving at that are long gone. For example, almost all of the 5,200 pharmacies in Australia provide enhanced medication
TARA TAUBENSCHLAG CMAX COMMUNICATIONS Finalist Young Business Women’s Award
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overnment relations and strategic communications specialist Tara Taubenschlag has been honoured at the recent Telstra Women’s Business Awards. A Young Business Women’s Award Finalist, Ms Taubenschlag believes that her passion for politics coupled with a strong work ethic and entrepreneurial spirit has been a catalyst for her success in the industry. Based in Canberra, Ms Taubenschlag is the Managing Director of CMAX Communications, a consultancy which represents clients in the public and private sector. CMAX advises clients from a range of industries including defence, national security, agriculture, mining and resources, health, education and the arts. “We assist clients achieve their corporate objectives through strategy
development and implementation, stakeholder identification and engagement, media engagement, lobbying, policy analysis and advice, public relations, issue management and events and conferences.” Established in 2004, Ms Taubenschlag says the change in the political environment over the past decade has helped her shape the direction of her business. “My vision was to develop a truly bipartisan government relations and strategic communications agency that could help clients navigate through the often complex political and legislative environment.” Ms Taubenschlag has worked with Prime Ministers from both sides of the political spectrum, managing media communications for the Australia 2020 Summit under [former] Prime Minister Rudd and media training for the Prime Minister’s Business Community
management assistance through Dose Administration Aids, which are vital in helping some patients, particularly the elderly, take their medicines as and when directed by their doctors. Community pharmacies are among the most frequently visited small businesses in Australia with the average Australian visiting a community pharmacy about 14 times a year. For some Australians, these visits are more frequent. For the many patients, such as the elderly or chronically ill who are unable to visit the pharmacy, there are numerous home deliveries to these patients by pharmacy staff at all hours of the day and night, including weekends. For pharmacists and their dedicated staff, the health and wellbeing of their community is paramount.
Partnerships Programs under [former] Prime Minister Howard. Ms Taubenschlag says as a Young Business Women Award finalist, she wants to inspire and encourage other young women to play an active role in the political landscape. “We need greater representation on the Hill whether it is around the Cabinet table, or on the other side in government relations, influencing and advocating on behalf of others.” As a business leader, Tara feels a strong sense of commitment and responsibility to her community. She assists a number of non-profit and community organisations with their PR and communication needs on a probono basis. Tara has received an Australian Government Award for volunteer work in East Timor and sits on the board of the charity Send Hope Not Flowers which aims to reduce maternal mortality in developing countries.
P 02 6161 8627 18 National Circuit BARTON ACT 2600 www.cmaxcommunications.com.au
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FOR SALE
INNER SOUTH AWARD WINNING RESTAURANT FOR SALE PRICE GUIDE: $400,000 + SAV (CIRCA $20,000) •
Specialise in fresh seafood
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Classic fit-out, comfortable dining area
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Location advantage – situated in the parliamentary triangle and surrounded by the wealthiest suburbs in Canberra
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Replacement value of equipment and fit-out in excess of $200,000
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Highly experienced head chef, popular chef’s special dishes and seasonal menus
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Long lease of 12 years with fixed rent
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Fully licensed + BYO
Fast population growth and ample new commercial/residential developments in surrounding areas
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Trading only 4.5 days a week and closed for three weeks during Christmas
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Many options to expand the business
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Can be run owner-managed or under full management
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Current earnings (EBITDA): approximately $170,000 per annum
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Seats 60 inside and 40 outside with appropriate government lease
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Current owner only works 20-30 hours a week
CONTACT OWNER CHRIS 0404 431 998
COVER STORY
Bartercard a world of business opportunities Regardless of what country, currency or culture money makes the world go around, however money is a tangible and traceable tool created from an age-old technique called ‘Bartering’.
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artering has become more popular in the wake of the 2009-2010 economic crunch and lowers the barrier to entry for individuals and businesses to get what they need without blowing their budgets. In fact, bartering can help lower costs and save money. With commitment and tenacity, Bartercard has forged a substantial company that is today the largest and fastest growing barter network in the world. According to CEO and Founder Mr Brian Hall, Bartercard is the most innovative way of combining modern technology, a community of businesses, and indirect and direct marketing channels. “We have revolutionised the way companies conduct their dayto-day business. Over 55,000 cardholders in seven countries (20,000 Australian members) now benefit from the cashless economy of barter,” Brian explained. Members can use Bartercard trade dollars in:Australia, Cyprus, New Zealand, Thailand, UAE, United Kingdom and the USA.
Bartercard’s online services mean trading is simple and accessible 24 hours a day. Find Bartercard businesses around you, pay an invoice, process a sale and view your available balance online or on your mobile device through our mobile app.
How does Bartercard work?
While direct barter deals can be effective, in the modern world they lack flexibility. The challenge with a direct one-on-one barter deal is you might want something that one business has but they may not directly want what you have.
Bartercard has the solution
Bartercard has created a flexible, secure and fully accountable way for businesses to transact their goods and services with businesses all around the country and the world. Bartercard is one of the largest B2B networks who are effectively using barter to; • gain new customers, who generate increased sales income • move excess stock or utilise downtime • free up cash that would otherwise be used to pay existing expenses • increase profits from introduction of new business By using Bartercard you earn an electronic currency called a ‘trade dollar’ for the goods and services you sell. This value is recorded electronically in your member account (similar to a bank account), and is recognised as equivalent to a cash dollar by the ATO for all accounting and taxation purposes. Bartercard even provide you with an Account Manager dedicated to coaching you on how to use trading effectively in your business. “Join a business network with 55,000 cardholders who barter-trade over $60m every month, with 74 offices throughout the world.”
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COVER STORY
Bartercard basics ... Bartercard is the best small to medium business tool that exists and like all tools it is only as good as the user. Take the time to learn how to use it in your business to its best ability. Gabriele Saccardo, La Scala Italian Restaurant
Our business has the capacity to build eight websites a week which we were not achieving so we joined Bartercard to fill the idle capacity. We were paying our staff anyway but now we are gaining extra income and can use the trade to purchase hardware and then depreciate it as a capital expense. Steve Donald & Trevor Kenny, Directors – Webarena
Cost of trade dollar and purchasing discount
The true essence and power of Bartercard is the “purchasing power” of your product. Remember, when you purchase in Bartercard, you are effectively spending with your excess product and/ or service. Therefore, your purchasing discount is inbuilt into your margin. Therefore if it cost you 35c in the dollar to provide your product or service then for every $100 trade you spend, it really only costs you $35. So, you are in fact buying at a 65% discount! Do you know what your cost of trade dollar is and what your purchasingdiscount equates to?
Gain cash referrals
We find that every time a Bartercard member provides a service or product of great quality to another member, the satisfied customer is likely to recommend the business to other people they know in the cash economy. Therefore, by simply providing great service and products to Bartercard members, you’ll be in a position to gain referrals to new cash customers.
Fund capital growth
As a member of Bartercard you are automatically given an interest free line of credit. You are able to apply to increase this line of credit from $10,000 to $25,000 or more, depending on your level of trading within Bartercard, your equity and security. With this increase in credit, you are able to fund the capital growth necessary to grow your business. Some members have applied for substantial lines of credit which they’ve used to purchase new factories and office premises, complete renovations or develop extensive marketing campaigns to grow their business. What do you want to achieve in your business in the next 12 months?
Are you giving Bartercard members a good experience, so they will recommend you?
We’ve found that when we do a job on Bartercard, the happy customer then tells ten other people, which generates a lot of extra cash business for us. Jacqueline Johnson, K & J Welding and fabrication
Capture lost revenue
Most businesses have a certain amount of downtime, be it on certain days or at certain times of the year with the flux of seasonal trends. Bartercard’s goal is to assist you to gain additional customers to utilise business downtime. For example, hairdressers may fill empty spots in their diaries, restaurateurs may fill empty tables, hotels may fill empty rooms, and professionals may fill empty appointments with additional Bartercard customers. Are you utilising Bartercard to maximize your downtime? How much more business could you accept?
from the Trading Tips brochure Build your business potential with Bartercard
Using the interest free line of credit, we have been able to make some great improvements to our restaurant. We have bought a new stove, new deep fryer, two new wood heaters and put on a new shop front. Gary Webb, Montezuma’s Wagga Wagga
COVER STORY
I expanded my product line by using the interest free line of credit to purchase $120,000 worth of shoes, from a Bartercard supplier. I sold these in the cash market and made a $30,000 cash profit! Jonathan Deen, Profile fashion accessories
Bartercard helped me grow my recruitment agency. Gaining clients is much easier and cheaper with Bartercard. Freedom Recruitment Solutions, Isidora Carpenter-Rowland
“Bartercard has been instrumental in increasing my restaurant’s revenue and patronage. In the time I have been with Bartercard I would have saved over $900,000 in cash.” Andrew McElhone, Sage Restaurant
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COVER STORY
We have approximately 250 members within Canberra and its region and are looking to expand to over 500 members in the coming years
Bartercard Canberra Since 2012 Bartercard Canberra has been owned and managed by brothers, Gabriele and Enrico, Saccardo. Bartercard first opened its Canberra franchise in 1995 and currently services Canberra, the South Coast and the Snowy Mountains region. The current franchise owners have been members of Bartercard since 1997 through their Bartercard Platinum restaurant, La Scala. La Scala Restaurant (which has just entered into its 26th year of business here in Canberra) has been providing Bartercard members in Canberra, Australia and around the world an award winning culinary experience with its traditional, and modern, Italian cuisine. Gabriele Saccardo is both the proprietor and sales manager for Bartercard Canberra. Gabriele is married to Lenie and they have a son, Max, aged four. He has been involved in small business in Canberra since 1986. He has owned a variety of businesses ranging from the import and export of fashion from Italy, distribution of food products from Italy and catering ventures. Enrico Saccardo is both the proprietor and office manager for Bartercard Canberra. He has been part of the small business sector in Canberra since 1985. His business interests include restaurants, catering companies and the sale and export of Indigenous Australian art. Colin McCulloch is the trading manager at Bartercard Canberra. Colin has been working for Bartercard Canberra for the past twelve years.
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Canberra franchise
Bartercard Canberra is located in the heart of the city and has currently five members of staff. “We have approximately 250 members within Canberra and its region and are looking to expand to over 500 members in the coming years,” Gabriele said. Bartercard is a B2B set up which provides a ‘Business Advantage’ to its clients. “Part of Bartercard’s portfolio is the involvement in sponsorships, both at a local “grass roots” level and from there both nationally and internationally,” Enrico said. Within Canberra and its region, Bartercard offers sponsorships to many organizations including: ACT Brumbies, the National Zoo and Aquarium, Out in Canberra and the Queanbeyan Rodeo. Bartercard Canberra is also very proud to be associated to numerous charity and not for profit organizations including Snowy Hydro SouthCare, Anglicare ACT, the Salvation Army and Camp Quality. 02 6257 2009 canberra@au.bartercard.net 1300 BARTER | 1300 227 837 customerservice@au.bartercard.com members.bartercard.com bartercard.com.au
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ACCOUNTING
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INTELLECTUAL PROPERTY
30 30 32 32 34 35 35
ESTATE PLANNING
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Is your organisation prepared for the unexpected? by Rodney Miller, RSM Bird Cameron
BUSINESS LAW Contractual risk: filling the gap by Mark Love, Bradley Allen Love
CORPORATE GOVERNANCE Does NFP = poorly governed? By Phil Butler, Australian Institute of Company Directors
Trade mark examiner adverse reports – not necessarily fatal to your application By Shaun Creighton, Arete Group
An estate planning checklist By Stephen Bourke, Certus Law
FAMILY LAW Keeping the personal private By Di Simpson, Dobinson Davey Clifford Simpson
HEALTH Weight loss for life By Robbie Manzano, Healthy Identity
PROPERTY FINANCING Property investment cash-flow By Peter Spooner, Loan Market Home Finance Brokers
RECRUITMENT Communication skills are key! By Allison Guy-Ritchie, PCA People
SERVICED OFFICES Spend in order to grow By Robert Okulus, Synergy Business Centres
WEBSITES Your business and digital economy By Sam Gupta, Synapse Worldwide
ACCOUNTING
BUSINESS LAW
Is your organisation prepared for the unexpected?
By Rodney Miller
All not for profit organisations need to manage risk, from small local associations through to national peak bodies. While the risks vary across operational sectors, the processes and concepts involved in risk management are similar. Once you understand the basic principles, it’s not as complex as it sounds – but it’s certainly important to undertake the process. An organisation that fails to manage risk is a business waiting to fail.At its most basic, risk management is the process of identifying and understanding risks and deciding what to do about them. It’s often discussed in the context of insurance – but the concept is much broader than that. You take a risk with almost every decision you make – whether that decision is to hire additional staff, diversify your grant programs, or to take out a loan. Seizing any business opportunity carries risk and it’s important to look at all risk scenarios and have a process in place for dealing with them. Understanding Risks Initial stages of the process can be further broken down: • Establishing context • Analysing the risks • Identifying risks • Evaluating the risks Let’s ‘identify’ a common risk scenario for a simple example: property damage. There are numerous events that could bring about damage – from fire, natural disaster and vandalism, to accidental damage or an act of terrorism. The context may include business function, level of security and current circumstances or events that contribute to the context. The process of managing risk is an excellent way to explicitly engage with a range of stakeholder perspectives on achieving mutual business goals. Treating Risks There are four basic ways that we treat risks. We: • decide to accept the risk • take steps to avoid the risk • do what we can to reduce the risk - either at source, with detective controls, or in terms of mitigating consequences • transfer the risk to someone else Often we’ll opt for a combination of these. We might take out insurance (transfer the risk), but we’ll also look at steps we can take to reduce the chance of an unfortunate event occurring or to handle the consequences if it does happen. Benefits of Good Risk Management A business that manages risk well has a number of advantages. Good risk management: • Increases the chances of success in achieving business goals. • improves communications and working in together with others • targets resources, protects assets and avoids costly surprises, and • assists governance, assurance, accountability and managing downside. Failing to identify, assess and treat risks can have serious consequences for a business. A single event – such as a death or serious injury for which an organisation is found liable – can result in a loss of funding or community support.
By Mark Love
Contractual risk: filling the gap
Australia exists as one of the most regulated economies in the world. As new technology and access to information sweeps through our lives, society’s expectations of what businesses should deliver is constantly rising. That expectation shift means increased “risk” for businesses, as our society becomes increasingly litigious. In all skilled trades and professions this increasingly complex world demands that businesses must get specifically skilled teams to do specific jobs. Industry has long dealt with meeting specialist needs by “subcontracting”. What many often overlook is the risk posed to them by “proportionate liability1” and by the further subcontracting of modern day responsibilities to multiple subcontractors down the line. Having multiple contributors to an outcome can leave a gap between the contractual commitment which a “head contractor” makes with its client and the capacity of the head contractor to recover compensation from its subcontractors. Where multiple subcontractors have failed to take reasonable care or have breached the Australian Consumer Law causing economic loss or damage to the client2 then each “concurrent wrongdoer” who contributed to that loss will only be found liable for the proportion of the loss that they caused. Therefore, if the head contractor is going to be able to recover 100% of the loss inflicted on the client, then every party who contributed to the loss must be identified and pursued for their share3. Head contractors must, therefore, assess their risk in the context of: • Any indemnities for loss or damage they give to their clients; • The indemnities they demand from their subcontractors; and • The scope of coverage offered by their insurance. The contractual promise to indemnify a client is typical, as is the scope of insurance coverage. Insurers typically cover liabilities for a “failure to act with reasonable care”, but generally exclude any liability that the insured has voluntarily assumed under contract (such as an indemnity) unless such liability would have arisen even in the absence of the contract. Contractors who are not careful risk exposing themselves to their promise to make good 100% of the losses suffered by their client (if the contract terms are not fulfilled) but being left with an insurance payout which only covers the proportion of the loss they actually caused. If the head contractor had no part to play in causing the loss, then their insurance cover risks being zero. Solution – get your contracts right or pay higher insurance premiums. Imposed in the ACT through the Civil Law (Wrongs) Act 2002 (ACT). An ”apportionable claim” is subject to further qualifications and exceptions. Hunt & Hunt Lawyers v Mitchell Morgan Nominees Pty Ltd [2013] HCA 10
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Bird Cameron
Chartered Accountants
RSM Bird Cameron assists a broad range of organisations with risk management. If you are struggling to implement a risk management process or simply need to re –invigorate the process you already have we can help. Please contact Rodney Miller, Director at RSM Bird Cameron, on rodney.miller@rsmi.com.au or 02 6217 0363.
9th Floor, Canberra House, 40 Marcus Clarke Street, Canberra ACT 2601 Tel 02 6274 0905 | www.bradleyallenlove.com.au
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CORPORATE GOVERNANCE
Does NFP = poorly governed?
by Phil Butler
The recently released Directors Social Impact Study again provided fascinating insights into the governance of the Not for Profit ( NFP) sector. One of the key findings was that there was no evidence that NFP boards are not any more or less effective than for-profit boards.
The research acts as a timely reminder of the critical importance that the NFP sector plays in our community and economy, and that without vibrant and sustainable NFP organisations our society would not function effectively. This finding is important, as there has been much anecdotal commentary that governance of the NFP sector is second-rate in comparison to other sectors. This research challenges this commentary, and notes that over 80% of directors in the sector have undertaken some form of professional development in the last year and have an average of 10-years of governance experience. It was interesting to note from both the online survey and also from the focus groups, that directors recognised the need to have 'appropriate' governance for the size of style of the organisation. For example, many commented that they were running large NFP’s in some high-risk areas such as aged care, and therefore their risk oversight needed to be first rate, and their overall governance practices required close attention. Some of these directors also sat on the boards (or committees) of much smaller community organisations which had much smaller risks and budgets. They recognised that this required a different type of oversight (and often a much greater call on them acting as volunteers). Comparing the governance of a large, complex NFP organisation with a small community organisation is similar to comparing the governance of an ASX200 company with a family business. The governance requirements are totally different. In addition to the focus on the quality of governance, the research also noted the complexity of measuring outcomes in the NFP sector. A for-profit organisation usually has a single goal of maximising return on investment. A NFP organisation needs to manage its ongoing financial sustainability while also achieving its mission. The measurement of its mission can be difficult with a range of subjective as well as objective measures being used as goals. The research acts as a timely reminder of the critical importance that the NFP sector plays in our community and economy, and that without vibrant and sustainable NFP organisations our society would not function effectively.
Phil Butler is Manager - NFP, Public Sector & ACT at the Australian Institute of Company Directors. Level 3 54 Marcus Clarke Street Canberra T: 02 6132 3200 | www.companydirectors.com.au
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INTELLECTUAL PROPERTY
By Shaun Creighton
Trade mark examiner adverse reports – not necessarily fatal to your application
After a trade mark application is filed it is examined by a Trade Mark Examiner. All trade mark applicants hope to get a “clear” Examination Report. This enables the application to be advertised as accepted. However, many applicants receive an Examiner’s “adverse report”, leaving some to think the application is “dead in the water” (not automatically true) and others wondering what to do next. The first thing to remember is that it may be possible to make submissions to IP Australia to overcome the Examiner’s adverse report. Before submissions, applicants often choose to have a review carried out by trade mark attorneys or lawyers specialising in trade mark law. If there are reasonable prospects, the applicant may instruct the professionals to draft and file submissions. The content of submissions varies depending on the objections raised by an Examiner in the adverse report. So, what objections might an Examiner raise? Objections often stem from section 41 and/or 44 of the Trade Marks Act 1995 (Cth) (TMA): Typical objection - lack of distinctiveness (s41, TMA): Here, the Examiner assesses that the mark is incapable of distinguishing the applicant’s goods/services from those of other traders (for example, attempting to register the word BIKE for bicycles). For a s41 objection, suitable submissions generally include: • legal submissions relating to the extent to which the trade mark is inherently adapted to distinguish the designated goods/services; • evidence in the form of statutory declarations attesting to the use (and depending on facts, the intended use) of the trade mark by the applicant; and • legal submissions relating to any other relevant circumstances. Typical objection - conflict with certain pre-existing marks (s44, TMA): Here, the Examiner assesses that the mark is substantially identical or deceptively similar to an earlier registered mark (or application) and registered (or applied for) in respect of similar or closely related goods/services. For a s44 objection, suitable submissions generally include: • legal submissions that the marks in question are not substantially identical or deceptively similar and/or there are no conflicting goods / services; and/or • legal submissions and associated evidence to show prior user or honest concurrent use; and/or • enclosing a letter of consent from the proprietor(s) of the conflicting mark(s). At ARETE Group, our team includes specialist trade mark lawyers, registered trade mark attorneys and a former trade mark examiner. We can provide you with a free of charge and no obligation preliminary assessment of prospects of overcoming an Examiner’s adverse report. We can also provide more detailed advice and draft suitable submissions. We have extensive experience in drafting submissions to trade mark Examiners and often act for law firms (on an agency basis) who require specialist trade mark expertise for their clients. Visit us at www.aretegroup.com.au or www.atrademarks.com.au or email your query to shaun@atrademarks.com.au P: GPO Box 579, Canberra ACT 2601 E: shaun.creighton@aretegroup.com.au shaun.creighton@aretegroup.com.au T: 02 6162 1639 | M: 0430 22 78 62 W: www.aretegroup.com.au or www.asportslaw.com.au
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ESTATE PLANNING
by Stephen Bourke
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An estate planning checklist
FAMILY LAW
By Di Simpson
Keeping the personal private
If you are a diligent reader of this column, then you will already be aware of the importance of having a valid will. However there are other things that you should do to make the lives of your executors and beneficiaries a lot easier. We have put together a checklist of some things that you ought to do before you die – an “if I kick the bucket then…” list so to speak. The checklist should be kept in a safe place identifying where the original will and enduring power of attorney are kept. The list should include either a copy of the will or at least mention the date on which it is signed. The checklist should include: • Accounts and Investments The BSB and account numbers for any accounts or credit cards you have as well as the details of any shareholdings and real estate. • Insurance Include sufficient details of policies such as the policy number and type of insurance. • Motor vehicles The registration number and VIN. • Advisers If you have an accountant, financial planner, lawyer or other professional advisor include their contact details. If you have a business include details of where the company records are kept. • Important documents If important documents (such as certificates of title), valuables or personal items are being held in safe custody elsewhere you should identify the location. • Your digital life Include all your email login in details and loyalty scheme account details. This includes your membership to social media and cloud data sites so your executors and family may be able to access your on-line data, including books or music files. • Direct Debits If you have any direct debits in place you should include details so that they can be cancelled pending a grant of probate. • Superannuation Your most recent superannuation statement(s) should also be included. If it is self managed super, the deed and financial statement should be included. • And lastly, tell your executors Make sure your executors know where the list is! If you follow these steps, it will make the job of your executor far easier. You would be surprised by the amount of time and money that can be saved when an executor does not need to spend weeks searching through your belongings and paperwork trying to figure out the details of your life.
For many people, updating their Facebook page, sending a tweet or keeping their blogs fresh are easy ways to stay in touch and keep others informed. Even our politicians have embraced social media to share information with us all... sometimes more than we want course… But, in the context of a Family Law matter extra care should be exercised. Real damage can be done when that which you thought was “private” becomes all too public. People are less careful than they ought to be. These live publications, while perhaps intended to be read by certain people only, may be accessed by an unintended audience. Care should be taken at all times to pause and reflect – does it matter who reads this? If it does matter, then don’t post, tweet or send. In cases about children, where court proceedings are on foot, the court is asked to make decisions in the best interests of the children. Communications in social media, inconsistent with the formal story being told in court by a party, can be very damaging. Increasingly, social media postings are proving to be fertile ground for cross examination. I recall one particular case where a young mother claimed that she should provide care for her very young child, despite evidence about some real problems she was facing in her life. She was asked about a new relationship (the details of which she had not provided to the Court, even though the man, if she won, would be spending a lot of time with the child). She denied the relationship or its seriousness. Then she was cross examined. Facebook pages were produced including many intimate and detailed posts she had made about her new love and what they did together. She protested that she had been set up, but the Judge did not believe her. She lost the case. For those of us with children, while we may marvel at their technical dexterity and knowledge (with toddlers intuitively swiping and pinching iPads and smart phones) parents may also be subject to criticism for failing to properly monitor the cyber activities of their children. Being your child’s Facebook friend may not be enough. Do you know what sort of images your teenager is texting to his or her mates and who else will see them? Common sense and caution remain pretty good guides to working through these issues. The old adage about being careful before you put something in writing applies just as much here – think before you post/ tweet or update. And if you are involved in a parenting dispute, ask yourself is it ok if my former partner sees this? What about my kids? What about the Judge? And what about my lawyer?
Certus Law specialises in superannuation, trusts and estate planning. Visit Certus Law at Level 5, 28 University Avenue, T: 6268 9090, www.certuslaw.com.au
18 Kendall Lane, New Acton Canberra City ACT 2601 T: (02) 6212 7600 E: mail@ddcsfamilylawyers.com.au www.ddcsfamilylawyers.com.au
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HEALTH
By Robbie Manzano
PROPERTY FINANCING
Weight loss for life
McDonaldization is a term used to describe a society with a fast food culture. Although the number of fast food restaurants in Australia don't compare to the high number of restaurants in America, health statistics indicate obesity is becoming more prevalent as Australia becomes more industrialized. According to the Australia Bureau of Statistics (ABS) in 1995, 57% of adults were considered overweight or obese. In 2008, adults that were considered overweight or obese increased to 61%. Of greater concern, it seems that our population is gaining weight faster, with the obese category increasing from 19% to 24% from 1995 to 2008. These alarming statistics has seen our society intervene in a variety of ways; some interventions being beneficial and some causing more harm than good in a societal contexts. Currently, our vision to regain control of our weight as a society has seen "weight loss" as a profitable market. Consequently, the push to create the quickest weight loss strategy has caused confusion in our society. Understanding what to do or what to consume, has seen those wanting to lose weight fall short or their desired identity. Weight loss is simple. However, there is one ingredient these fast weight loss strategies left out. This single ingredient can cause us to lose weight and maintain a healthy weight for life. I'm referring to "time". I see too many people look for a quick fix and weight loss either turns into weight gain or the yo-yo phenomenon were weight is gone then back again before you know it. There are two rules when it comes to sustainable weight loss. 1) Seek a health professional that has completed a university health degree. Advice from someone who has completed a 10-week short course in fitness may not have the knowledge to lead you in the right direction. A university graduate with a health degree has over 3 years worth of knowledge in a variety of health disciplines. For this reason they are able to adapt a weight-loss strategy based on scientific evidence to suit you. 2) Take the advice health professionals offer and put it into practice. This is where fast weight-loss programs go wrong. We forget health management is a skill. Practicing a healthy lifestyle in a dynamic society may seem difficult at the initial stages of your health kick. However, with continuous practice you'll soon be able to manage healthy practices and manage your weight for life. To encourage your health kick this October and November, Healthy Identity is offering the community group workouts and healthy weight loss, nutrition and lifestyle consultations. If you or your workforce is contemplating on being healthy this spring, please get in touch as we would love to help. For more information on any of our health programs send a email to info@healthyidentity.com.au, call me on 0423 366 014 or visit www.healthyidentity.com.au Robbie Manzano is founder and managing director of Healthy Identity. Robbie has degrees in Human Nutrition and Coaching Science from the University of Canberra and has completed a Graduate Certificate Public Health from Curtin University. robbie.manzano@healthyidentity.com.au 0423 366 014
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By Peter Spooner
Property investment cash-flow
When a deal involves financing a newly completed property for investment purposes a key element in a Lender’s assessment of the loan application is the anticipated gross weekly rent income. Typically the rent projection is determined by the valuer at the time that the mortgage valuation report is prepared. The valuers anticipated rent income should closely match the independent property management rent appraisals used by the buyer in establishing the case for purchasing the property for investment purposes. Generally speaking, the Lender discounts the anticipated rent income by as much as 25% when the loan serviceability is determined. While this factoring by the Lender provides reasonable assurance that overheads in operating the property are covered in the loan servicing calculation it does nothing to mitigate risk if the property is not rented. Unless the property investment budget has been structured to absorb cash – that is, take hard earned cash out of the pocket of the investor there are a couple of things that I recommend my clients do to mitigate against having to kick in cash to cover rent shortfall or operating and maintenance expenses. First up, before applying for the investment loan, I recommend that they add up how much will be required to pay annual body corporate and general operating costs and add to this at least two to three months anticipated interest only mortgage repayments. Then either reduce the deposit amount by this sum or increase borrowings to allow for this sum to be held available to cover the costs as and when due. This route may incur a Lenders Mortgage Insurance premium if the borrowings exceed 80% of the purchase price but this is a small amount to pay (or capitalise into the loan amount) to provide protection against a cash drain on other sources of income. Secondly, I recommend not getting locked into a preconceived rental rate based on the one used when the purchase numbers were worked up. This is particularly true in the current Canberra market, were so many new developments are coming onto to the rental market at about the same time. Holding out to rent at the ‘budgeted’ rent rate could see the property sit unrented for a considerable period of time. Simple example: The ‘budgeted’ gross weekly rental is $420. The Property Manager receives an offer of $395 per week. This difference of $25 per week when divided into $420 means that for every week that the property is rented at the lower rate it will take almost 17 weeks at the higher rate just to catch up each week unrented. Want to know more? Want to discuss loan structures and options for effective investment property financing? Peter Spooner is a qualified and highly experienced residential property financing specialist. He has access to over 800 loan products from a panel of 30 lenders (including all of the major banks) plus reach-back to over 500 Loan Market associates when formulating solutions for his clients. Peter does not charge a fee-for-service.
Australian Credit Licence 390222
To gain further information into the Loan Market go to www.loanmarket or to book an appointment please call Peter on 0400 281 398 or email him at Peter.Spooner@loanmarket. com.au
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RECRUITMENT
Communication skills are key
By Allison Guy-Ritchie
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Rag Bags In its most basic form communication is the ability to convey a message to an audience. Communication is also the process by which information is exchanged between individuals.
Listening, clarifying, being open-minded and adjusting styles are all techniques that can be used to ensure a mutual understanding throughout the recruitment process. Recently at PCA we participated in an in-house training activity designed to challenge and highlight the different ways people communicate. The activity involved two teams with “lookers” who saw a finished lego vehicle, multiple sets of “runners” that passed instructions from one to the other and finally “builders” that attempted to build a replica of the lego vehicle sight unseen and based only on the information they were provided by the “runners”. The exercise was a lot of fun and resulted in lego vehicles of “interesting” designs. On the serious side, we learnt a lot about our communication styles. One team started with big picture descriptions and then followed with details whilst the other team did the complete opposite. One team provided frequent small pieces of information whilst the other provided less frequent but more information. There is no right or wrong answer and it is dependent on the people involved, however valuable lessons we discovered included the importance of listening carefully and being focussed throughout, of clarifying by repeating or paraphrasing until a mutual understanding was achieved, of being open minded and ready to receive information in whatever form it came, of adjusting our style from spoken to written instruction and even including drawings and diagrams. We also identified the pitfalls of making assumptions. Employers and employees alike require effective communication skills. Throughout recruitment processes, communication skills are paramount. Clients, Candidates and Recruitment Specialists must have a clear understanding of the job role being filled and the applicant pool available. There are many aspects of this including client background, position status, position details, person specifications, interview process and general questions. These are the overarching aspects however each has a myriad of layers and all need to be fully understood by those involved. Listening, clarifying, being open-minded and adjusting styles are all techniques that can be used to ensure a mutual understanding throughout the recruitment process. And beware the pitfalls of assumptions!
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By Robert Okulus
Spend in order to grow
When times are hard, the cry always goes up to cut costs. It's not the best place to start.
Whatever the economic pressures, you have to retain a long-term view. Give yourself the chance to grow so you're in a position to take advantage when markets pick up. In selective ways, you have to spend money in order to give a business the capacity to recover and grow. One problem is language. We should talk about saving money, not cutting costs. If you think only about cutting, it is hard to be creative. And it is possible to be creative about saving money. If you need to save money urgently, gather your senior management team for a no-holds-barred brainstorming session. You need ideas from a variety of different perspectives. Look at those costs often thought of as fixed. Take property, for example. If you own your property, sell it and lease it back to generate capital. If you rent, devise a commercial plan that allows for a workable renegotiation. Synergy has a number of high-profile clients who abandoned fixed office space in favour of our flexible workspaces. They found it saved on overheads and helped them became more productive. Take a fresh look at your suppliers. You should be working with them as partners, looking for mutual benefit. Find common goals, like electronic ordering and invoicing that save time, paper and money. We need to look at people, too. Sooner or later, most organisations will focus on headcount. Target productivity instead; if people are sufficiently productive then why would you let them go? To make employees more productive you have to be prepared to embrace new working practices. By allowing staff to do much of their work from home they will cost less in terms of office space. Switching to video conferencing will help cut travelling expenses, too. When it comes to hiring and paying staff, there's one good thing about tough economic times: they make more talent available. So when you find good people, pay and treat them well. Don't neglect staff training. If they can learn to get more done with less, you'll be making a net gain. My attitude to spending is the same regardless of the state of the markets. When approached by staff I always ask: Would you spend it if it was your money? Whatever the economic pressures, you have to retain a long-term view. Give yourself the chance to grow so you're in a position to take advantage when markets pick up.
Robert Okulus, Area Director robert.okulus@syn.net.au | T 1300 476 946 Level 6, 39 London Circuit, Canberra Units 1 to 4, 8 Jardine Street Kingston ACT 2604
WEBSITES
by Sam Gupta
Your business and digital economy
The way we did business 25 years ago is very different to today, and to what it will be in the next 25 years. The world and the economic landscapes are changing fast. Many of the traditional ways are no longer applicable. To put it simply, digital economy is based on the online trades and consumption of goods and services over internet. Let us analyse a few numbers on this. About 94% of Australians have access to internet and about 10 million Australians purchased something online last year. Australian eCommerce could reach about $39 billion this year. It comes to around $3500 per person online every year, which is only a fraction of our yearly earnings. This number is only going to grow as infrastructures improve. The question is, how is it affecting your business today and what is your strategy for the future?
The key is to have a well thought through strategy in place. Don’t do it because you have to, do it because it is the best way forward for your business. It doesn’t matter what your business is, you can take advantage of technologies to grow your business online. There is no reason why you can’t sell your goods or services online. Nearly 80% of Australia’s GDP comes from services sector. And, it’s not all about selling something online. The way customers are communicating is also changing dramatically. As the internet infrastructure improves, audio-visual communication will probably become a part of our day-to-day lives. Although, it will be challenge for the government to calculate the true value of digital economy, in many ways it will affect your business. Nearly every small business can embrace the technology to their advantage. You can save money, improve customer engagements and increase productivity in your business. Streamlining and automating your business processes can lead to happy customers, happy staff and happy bank accounts. The key is to have a well thought through strategy in place. Don’t do it because you have to, do it because it is the best way forward for your business. Think simple. Think out of the box. Don’t let technological convenience define your eStrategy; instead let your eStrategy dictate the technologies your business is going to use. Possibilities are limitless online; be a part of these exciting times! I would love to discuss your business’s online strategy. We offer free one hour consultation on how you can take advantage of the new digital economy. Please call 1300 785 230 or drop me an email on admin@ synapseworldwide.com.
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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G2B
MINISTER’S MESSAGE
Debt and borrowing ANDREW BARR
ACT DEPUTY CHIEF MINISTER TREASURER MINISTER FOR ECONOMIC DEVELOPMENT
T
hrough the foresight shown in our first 100 years Canberrans live in a great city, with services and infrastructure that are the envy of many around the world. As we come towards the end of our Centenary year now is a good time to consider what services and infrastructure should be priorities for our second century. To do this we must plan for the long-term, and think creatively about what we want our city to be like, and what it needs. Failing to do so is a recipe for stagnation, and will do future generations a disservice.
Canberrans of the future will no doubt want a city with quality infrastructure and services... This requires the courage to think ahead and commit to building and funding important transformational projects. As such, the ACT Government has committed to transforming Canberra through new and transformative projects, notably the Capital Metro light rail, the City to the Lake Project, and a new northside hospital. Each will provide benefits to Canberrans for generations to come – but they do pose the obvious question of how to pay for them. Quite simply, the government cannot fund projects costing hundreds of millions of dollars within the confines of a single four-year term of government. In other words, we need to borrow. Taking advantage of our strong budget position and low levels of debt, modest borrowings are an important step for investing in Canberra’s future. Using debt to fund productive infrastructure is something responsible governments have been doing for decades. Unfortunately, the debate in this country in recent years has become one about minimising debt at all cost. This mantra that ‘all debt is bad’ must be challenged, and must change. There is no good economic or social reason why governments should not take out a long-term loan for important new facilities. Given the benefits of big projects are spread across generations, such infrastructure need not be 36
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funded only from revenue from today’s budget. There are two important caveats that governments must recognise. First, borrowings are a good thing when used for projects that are: productive and transformational; help a community work more efficiently and effectively; and create longrun growth, jobs, and benefits for residents. In the way a household should borrow prudently to build their house, the Territory can do the same to build our city. Second, governments must ensure they are acting responsibly, and borrowing what they can afford to pay for. The ACT has one of the lowest proportionate debt levels of any State or Territory in Australia. Last month our AAA Stable credit rating – the highest available rating – was reaffirmed by Standard & Poor’s. As such, we have the capacity to take on debt – should we choose to do so – to ensure we build for the future. There will always be the need, of course, to be a responsible economic manager and tax and spend responsibly. Returning the ACT budget to balance in the medium term is important. But returning to balance is not an end in itself. Doing so frees up the capacity to pay for long-term projects, both in terms of making repayments and borrowing at as competitive a rate as possible. Further, with interest rates at historically low levels, now is an opportune time to undertake long-term borrowings. In the words of Nobel Prize winning economist Joseph Stiglitz, “Australia should instead seize the opportunity afforded by low global interest rates to make prudent public investments in education, infrastructure and technology that will deliver a high rate of return, stimulate private investment and allow businesses to flourish.” Further, with the Commonwealth continuing its contraction the ACT Government’s contribution to the Territory’s economic growth will take on greater significance. Spending on large-scale infrastructure projects will therefore be a big boost to economic and jobs growth in Canberra. Canberrans of the future will no doubt want a city with quality infrastructure and services. But providing this requires the foresight to take the long-term decisions to build the Canberra of tomorrow, and of 2033 and 2053. This requires the courage to think ahead and commit to building and funding important transformational projects.
A S S O C I AT I O N S T O B U S I N E S S
A2B
Meet the business development manager
T
he ACT & Region Chamber of Commerce & Industry supports all business in the ACT and surrounding region, and is unique as our membership base is extremely diverse. Our members range in size from non-employers to national organisations and cover all industries. Canberra is a fantastic community, and we offer our members a strong business community here at the Chamber. As the Business Development Manager, my role allows me to meet various local business owners daily. It is extremely satisfying to walk into a business and make them aware that we are able to provide advice on critical elements such as Workplace Relations, Employment, Education & Training and provide numerous opportunities to network and advertise. I am proud to work for the Chamber and I am rewarded daily knowing that we are making a difference by helping businesses achieve their goals. Our Workplace Relations team provide business specific services focused solely on the needs of the employer. Services include Industrial Relations, Human Resources, Occupational Health & Safety, Modern Awards, Individual Flexible Workplace Agreements and Enterprise Bargaining Agreements. In addition, we can represent your business in the Fair Work Australia Commission on claims such as unfair dismissal. The team conduct regular workshops providing information to employers and representatives on a number of topics including Bullying & Harassment and Adverse Action Claims. The Chamber is also authorised to assess applications by contractors wishing to obtain an IRE Certificate. “The Chamber is always there to answer our questions when we need advice. We have always found the staff to be knowledgeable, professional and certainly helpful.” Maria Selleck, Maria Selleck Properties The varied networking events and promotional opportunities offered at the Chamber aid in building strong professional relationships. They provide an opportunity to share your achievements and keep up to date with what is currently happening in your business community. A member will host a Business after Business event each month. We also run a
Women in Business Series, Annual Golf Day, Annual Dinner, Budget Briefings and more throughout the year. “Membership with the Chamber of Commerce has been very useful to me in the past; in fact my business would not run without it. I love attending the events. As the Chamber’s photographer for the past 15 years, I find it a great networking opportunity as well as a night out.” Jodi Shepard, Hot Shots Photography. Our Employment, Education and Training team offer a range of opportunities for your business. Our Education and Training Advisor is available to provide information and advice on nationally recognised vocational qualifications for your staff and any other education or training issues. The Ready team seeks and establishes sustainable partnerships between education and training providers, business and industry, parents and family and community groups. The Ready program is designed to foster a strategic, whole of community approach to improving education and transition outcomes for all young people. “We are currently working with the Chamber on Community based initiatives to educate young people on the benefits of inclusion in their financial issues through Anglicare: this is a pilot program and a great opportunity for us and the local accounting industry.” Bronwyn Morath, ClearCorp The Chamber continues to lobby business views to government on legislation in a wide range of areas including red tape, work cover, education, employment, planning, skills shortages, parking and other policy issues. The Chamber works closely with political leaders and Government to create positive outcomes for business. Staff members sit on a variety of committees and advisory bodies such as the Educational Ministerial Round table, ACT Worksafety Council, Red Tape Reduction Panel, the ACT Taxation Review Roundtable and Australian Chamber of Commerce & Industry Workplace Policy Committee. If you would like further information with regard to Chamber services and membership, please contact Jo Madsen, Business Development Manager on (02) 6283 5232 or jo.madsen@actchamber.com.au
JO MADSEN
BUSINESS DEVELOPMENT MANAGER
Corporate Sponsors ActewAGL TransACT The Canberra Times The Good Guys Tuggeranong Synapse Chamber Networks Women in Business Young Business Network Business after Business Foundation Member Australian Chamber of Commerce & Industry
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A S S O C I AT I O N S T O B U S I N E S S
A2B
Time for a ‘meeting place’ in the ‘meeting place’
R
ecently Canberra was privileged to have Larry Oltmann visit for a two-day workshop on the proposed Australia Forum convention centre. The Australia Forum workshop in light of the Australia Forum Scoping Study (2010) and the City to the Lake Project objectives, within the context of the City Plan. It was exciting to participate in the workshop, which considered potential sites for the new convention centre and concluded that the City Hill site (bounded by Constitution Avenue, London Circuit, Commonwealth Avenue and Vernon Circle) would not only accommodate the Australia Forum functional brief, it also had the potential to achieve an iconic outcome for the city. The design concept for the new convention centre, developed during the workshop, reinforced the need for flexibility and the ability to accommodate a significant expansion in the Canberra convention market over the next decade, as well as catering for ceremonial events appropriate for the national capital. While he was in Canberra Larry Oltmann also gave a lecture at the War Memorial. Titled The Right Building in the Right Place, he outlined the history of the design and location of convention centres around the world – from the 1960s when convention centres were built in city centres but the architecture tended to be that of a “box with a dock”, through to the 1980s and 90s when better designs were located inappropriately in industrial wastelands. More recently the trend has been to move convention centres back into the city centre, to make them a focal point of the city and to design them as iconic meeting places that reconnect people with their city and reflect the unique character of the city – the Right Building in the Right Place. Perhaps the most inspiring takeout from Larry’s presentation was that Canberra has an opportunity to design a new convention centre that is iconic in design and positions the city both nationally and internationally - as a smart city and knowledge economy; a place where BIG conversations take place; a place where world-leading scientists and researchers discover new solutions in our worldclass universities and research institutions; a place that is home to our national cultural institutions and collections and our National Parliament; a place
with an exceptional lifestyle; a place of brilliant possibilities. Larry stressed that all buildings need to be thought of as meeting places and convention centres, in particular, can act as a catalyst for cities to change, to become better places to live. Designed and located optimally, a new convention centre in Canberra will also add significantly to the economy. Larry quoted the fact that for every one dollar spent by a convention delegate, only ten cents goes to the convention facility itself. The other ninety cents flows into the economy more generally via spending on accommodation, restaurants and retail purchases. As an example of the economic impact of the business meeting industry, the latest $100m expansion of the Adelaide convention centre was repaid within five years from specific revenue that flowed into the economy from conferences. Larry Oltmann’s contribution vindicated the overwhelming industry support that the Australia Forum convention centre has attracted. In August 2013 over 50 peak industry bodies, National Institutions, research and learning institutions and other key organisations signed a Statement of Support unanimously identifying the Australia Forum convention centre project as the top priority for the ACT. Together these organisations represent all of the key industries and over half of the private sector employment base in the ACT and region. All have agreed that investment in a new state-of-theart meeting facility is an urgent priority for Canberra. Canberra Business Council and the Canberra Convention Bureau will continue to advocate at both the Federal and ACT Government levels and with the private sector for a commitment to progress the new convention centre project as a priority.
CHRIS FA U L K S
CEO CANBERRA BUSINESS COUNCIL
CANBE RR A BUSINESS COUNCIL AFFILIATED WITH
Principal Members ACTEW Water, BluePackets Brookfield Johnson Controls, Canberra International Airport, CanPrint Communications Pty Limited, Cantlie, Cre8ive, Custom Security Services, Elite Sound & Lighting, Ernst & Young, eWAY, Hindmarsh, ISIS, KPMG, Master Builders Association (ACT), National Australia Bank Limited, PricewaterhouseCoopers, Staging Connections (ACT), The Village Building Co, Toshiba (Australia) Pty Limited, TransACT Communications, Westpac Banking Corporation
A2B
A S S O C I AT I O N S T O B U S I N E S S
ACT Exporter’s top issues BRENT J U R AT O W I T C H
PRESIDENT, ACT EXPORTERS’ NETWORK
For more information on the ACT Exporters’ Network visit actexportersnetwork.com.au or call 02 6247 4199 The ACT Exporters’ Network is proudly sponsored by the ACT Government, Canberra Business Council, the Centre for Customs & Excise Studies and AusIndustry. 40
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he Federal Election is over and the new Minister for Trade and Investment is the Hon Andrew Robb AO, MP. Canberra Business Council and the ACT Exporters’ Network look forward to a long and productive relationship with the Minister in developing export trade by businesses based in the National Capital. There are a number of issues which the Exporters’ Network and the Council will be bringing to the attention of the Minister. TradeStart support for Canberra-based businesses Canberra’s business sector, though small compared to the major metropolitan centres, includes some of Australia’s most innovative businesses. Companies such as Aspen Medical, Seeing Machines, Inteledox, Funnelback, Windlab, Sentinel and many others are at the forefront of innovation in their respective fields. However, in global terms, they are almost all SMEs, which means that they have limited capacity to develop and expand their export trade activities. TradeStart support provides a vitally important resource to assist SMEs into export. We are glad to note the Coalition’s intention to boost the competitiveness of Australia’s SME sector generally. However, at the present time, Canberra-based SMEs do not have direct access to TradeStart support. The ACT-based TradeStart adviser position was abolished several years ago and the nearest adviser is based in Wagga Wagga and has a food and agri-business focus. It is vital to the continued growth of Canberra’s high-technology SME export sector for a TradeStart representative to be based in Canberra, so that he or she can provide higher levels of service and a greater awareness of the specific issues of Canberra-based SMEs. Austrade’s reduced support for exporters targeting the developed markets – the USA, Canada and the European Union. While it is encouraging that the Coalition supports assistance for Australian exporters to benefit from the continued strong economic growth of the Asian region particularly as the economic benefits of our increased engagement with Asia over the past few decades have been truly
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remarkable. However, the previous government, in implementing its approach, had directed Austrade to cease providing tailored in-country services, such as potential customer and partner identification, introductions, appointments and business matching services to exporters targeting the USA, Canada and the European Union, and instead, focusing these tailored services solely on emerging markets in the Asian region. While there is no doubt the overall business environment is more complex in most of Asia than it is in the US or Western Europe, the fact is that much of our trade with Asia is carried out in areas such as minerals, energy, agriculture, tourism and education, by well-established, larger exporters who already have substantial knowledge of their target customers. Meantime, many of our hightechnology SME exporters (and this is especially true of Canberra-based exporters) are targeting markets in the USA, Canada and the European Union, where the competition is the most intense of any in the world. We believe it is vitally important to Australia’s high-technology exporting SMEs for Austrade to restore the provision of tailored partner identification and business matching services in the USA, Canada and the European Union if they are to continue growing and helping to diversify Australia’s export base. Proposed changes to the Export Market Development Grant (EMDG) scheme The Exporters’ Network is glad to note the Coalition’s policy of an additional $50 million in funding for the EMDG scheme and recommends that the changes proposed by the previous government in its Export Development Grands Amendment Bill 2013 be scrapped. We are particularly concerned that the proposed changes would exclude expenses relating to sales promotion in the USA, Canada and the European Union in applications made in the sixth, seventh and eighth year of applications. As noted above, Australian companies exporting to those countries require the same levels of support in getting themselves established in those fiercely competitive environments as do exporters targeting other regions.
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