B2B October 2012 (issue 76)

ASPEN MEDICAL EXPORTER OF THE YEAR Success for the second year in a row

JIGSAW HOUSING CANBERRA Businesspoint business of the year

CANBERRA'S LARGEST PICINIC Raising funds for the 'Lending a Healthy Hand Program' b2bincanberra.com.au

OCTOBER 2012

76

$4.95 inc. GST

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BACK TO BASICS

NEW HAT FOR PAT

Inside OPC's peace of mind solutions

Elringtons explore the best ownership structures for your business

Meet Dataflex's new Executive Chairman Patrick Cheetham

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DAN MURPHY’S NATIONAL WINE SHOW OF AUSTRALIA TM

Dan Murphy’s

National Wine Show of Australia

TM

2012 TROPHY PRESENTATION DINNER The Royal National Capital Agricultural Society invites you and your guests to attend the:

Dan Murphy’s National Wine Show of AustraliaTM 2012 Trophy Presentation Dinner The Great Hall, Parliament House Thursday 22 November 2012 at 7.00pm Tickets: $220 Dress: Black Tie

Entertainment by Boys in the Band

The evening recognises the achievements of the Australian Wine Industry whilst providing guests the opportunity to sample some of the best trophy and gold medal wines in Australia.

For reservation, please contact RNCAS: (02) 6241 2478 or admin@rncas.org.au

* Tables will be set for 8 people * A reservation is not deemed as confirmed until payment is made

CONTENTS B2B EDITORIAL

Election time Yes, it's that time again. Time to purchase a sausage and cake at the local school and catch up with neighbours that may live next door or a street away. Neighbours that you may not have seen since last polling day.

TIM BENSON Editor

Time to navigate your way through the piles of election flyers and electioneering.

For me its time to be smothered by the over-the-road neighbour proudly displaying her political devotion in large corflute sign form, heroically depicting her party of choice in her front yard. Time to reflect on all of the experiences that we have had since the last election and then vote for those that will represent up for the next four years.

Yep, four more years.Through the Centenary of Canberra next year. Through the next one or two Federal elections.

Through another four winters and four more Floriades ... anyway what is my point. It is that we are extremely privileged to have the right to stand, campaign and vote for those that will represent us.

photos by Andrew Sikorski

It's far better to have your letterbox stuffed with campaign material (not junk mail apparently), vista polluted with election banners (whether they be on the neighbours lawn or down Adelaide Avenue), and one Saturday distrupted by having to talk to your neighbours (and vote for people you don't know and might not really know what they intend to do if they get elected), than the alternative.

Canberra is all grown up now and we need to start standing up for ourselves and planning for the future.

I look forward to the contest over the next couple of weeks and voting on Saturday 20 October 2012.

23 COVER STORY

Cream of the Crop

UPFRONTS 10 Stockade Gym- How to increase sports performance with a barbell PROFILE

Please send all comments to editorial@b2bincanberra.com.au

12 Meet Patrick Cheetham from Dataflex OPINION 14 Farrar Gesini & Dunn share the 10 commandments of family law

Join us for Canberra Business Council’s Annual Gala Dinner, the Council’s premier event.

Thursday 18 October 2012 7.oopm for 7.30pm Hotel Realm, National Circuit, Barton RSVP: Friday 12 October 2012 Dress: Lounge Suit

Members: $170 (Inc. GST) Non-Members: $195 (Inc. GST) Table of Members (x10): $1,650 (Inc. GST) Table of Non-Members (x10): $1,900 (Inc. GST) Corporate Table (x10): $2,400 (Inc. GST)

www.canberrabusinesscouncil.com.au

PLATINUM SPONSOR

CONTENTS

FEATURES 14 Jigsaw Housing wins Canberra Business Point Business of the Year

18 OPC IT- Leave i.t. to us 20 Aspen Medical wins ACT exporter of

the year award for second year in a row

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COVER STORY 23 RSM Bird Cameron- Cream of the Crop when it comes to turnaround and insolvency 27 ADVICE FROM THE EXPERTS 28 ACCOUNTING Be aware of scams and stay safe online

By RSM Bird Cameron

16

BUSINESS LAW Back to basics on ownership structures: Part 1

By Elringtons Lawyers

A2B: ASSOCIATIONS TO BUSINESS 32 ACT DEPUTY CHIEF MINISTER AND TREASURER: Private sector critical for continued growth in the ACT 34 ACT EXPORTERS: Exporters Network welcomes new manager 36 ACT & REGION CHAMBER OF COMMERCE & INDUSTRY: Significant decision welcomed on adverse action law BUSINESS NETWORKING 06 B2B @ Tony Campbell Memorial Cup 07 B2B @ 2012 Canberra Business Point Awards 08 B2B @ Chamber of Commerce and Industry Golf Day

29 CORPORATE GOVERNANCE Business Deregulation

By Australian Institute of Company Directors ESTATE PLANNING The Tax Benefits of Testamentary Trusts

By Certus Law

18

31 WEBSITES How to launch your idea online

By Synapse

30 HEALTH Contemplating for too long?

Change your life with one decision

By Healthy Identity

09 B2B @ B2B September Issue Launch 39 PROPERTY 40 RAY WHITE KINGSTON Make the Move...

42 BENDIGO BANK When is a home not a home?

Perhaps when it’s a property.

44 BRINDABELLA BUSINESS BROKERS Patience is the key to selling your business

STRATEGIC FINANCIAL ADVICE Effective Estate Planning

By Perpetual Private

20 PUBLISHER I EDITOR

Tim Benson editorial@b2bincanberra.com.au 0402 900 402 02 6161 2751

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B2B @ TONY CAMPBELL MEMORIAL CUP THOROUGHBRED PARK

Premium Lounge Indulge in Canberra’s most luxurious cinema Luxurious reclining seats | Priority ticketing service | Seasonal wine list and delicious range of gourmet meals | Personal waiter service and in cinema dining | Exclusive use of the Premium Bar and Lounge Advance bookings are highly recommended. Visit www.dendy.com.au or book at the box office.

Dendy Premium Lounge is a licensed venue. Guests under the age of 18 are required to be accompanied at all times by a parent or legal guardian.

B2B @ 2012 CANBERRA BUSINESS POINT AWARDS NATIONAL PORTRAIT GALLERY

Premium Lounge Indulge in Canberra’s most luxurious cinema Luxurious reclining seats | Priority ticketing service | Seasonal wine list and delicious range of gourmet meals | Personal waiter service and in cinema dining | Exclusive use of the Premium Bar and Lounge Advance bookings are highly recommended. Visit www.dendy.com.au or book at the box office.

Dendy Premium Lounge is a licensed venue. Guests under the age of 18 are required to be accompanied at all times by a parent or legal guardian.

B2B @ CHAMBER OF COMMERCE AND INDUSTRY GOLF DAY FEDERAL GOLF COURSE

Visit the WorkSafe ACT website for advice and information on how to meet your health and safety obligations.

www.worksafe.act.gov.au

B2B @ B2B SEPTEMBER ISSUE LAUNCH DENDY PREMIUM LOUNGE

Visit the WorkSafe ACT website for advice and information on how to meet your health and safety obligations.

www.worksafe.act.gov.au

UPFRONT

How to increase sports performance with a barbell

R

egardless of how advanced exercise machines get, the barbell will never become obsolete. One of the main advantages of the barbell is that it is unparalleled as a tool for building strength.

As many people would know, the barbell is also very effective for building muscle (muscle size does not equate to strength). Barbells are also versatile enough to improve speed, endurance, co-ordination, and yes, even fat loss. The type of barbell training you do will depend on what you want to achieve. Usually there are two main reasons why people use the barbell – to boost their muscle size or to increase their sports performance by building strength. The key to achieving your goal with a barbell lies in getting the amount of reps right. Different repetition ranges have different effects on your body, so let’s look at what these rep ranges are all about.

Low reps When you’re looking for strength and explosive movements, then low reps are the key. Between one and five reps are recommended for people who want to build strength and speed, but are not that concerned with muscle growth – otherwise known as hypertrophy. Low reps will result in some hypertrophy, but not a huge amount. The reason why low reps are conducive to building strength is that you’re

able to lift bigger weights. Your body is not requiring extensive muscle endurance or cardio-vascular fitness to lift the weights - it’s all about the muscles producing maximum force. The only way to increase pure strength is to lift the highest amount you can lift. Once you start getting fatigued, you are no longer building strength.

Medium reps Between six and 12 reps is considered ideal for hypertrophy. You can’t lift weights quite as heavy as if you were doing low reps, but you will still build strength.

Because your muscles spend more time under strain when you do more reps, they adapt at a more metabolic and cellular level than a neurological level. With medium rep training your muscles sustain tiny tears and call in protein to repair these. This increases muscle cell size. If your goal is to increase size, then medium reps are the way to go, but you shouldn’t ignore low rep training. Building your strength will help you increase weights when you do medium rep barbell training.

High reps High rep work-outs also have their place. They are not conducive to building strength, and not ideal for hypertrophy, but may have other advantages.

High rep barbell training can increase you capillary density and your muscle endurance.

There are several barbell exercises you can

do to help increase your hypertrophy and build strength.

Back squat Front squats are also good, but back squats involve resting the barbell on your trapezoidal muscles, squatting down and then extending your legs.

Bench press This is a classic barbell exercise where you lay on your back on a bench and lift the barbell above your chest.

Overhead press - Either sitting or standing, hold the barbell to your clavicle area and extend your arms to lift the bar above your head.

Stiff-leg deadlift This can be a great exercise for hamstrings. You bend forward at the waist while holding the barbell, and stop when you feel your hamstrings fully stretched.

Clean and Jerk An Olympic weightlifting discipline where you position your feet shoulder-width apart, bend down at the knees and lift the bar up onto your shoulders.

The jerk action involves lunging forward and raising the bar overhead.

Snatch The other Olympic weightlifting sport, the snatch involves bending down as if you were to sit on a chair and grabbing the bar near the weights, explosively lifting the bar over your head as you squat, then stand up while keeping the bar above your head.

MMA Fitness Classes Monday, Wednesday Friday and Saturdays

way. All in a fun, safe environment. Classes are non-contact.

www.stockadetraining.com.au • 3 Rosevear Place, Dickson

healthy identity would like to invite you to Canberra’s largest Picnic Old Parliament House Rose Gardens (House of Representatives bowling green) Sunday, 28th October, 12:30pm - 3:30pm Adults $10 | Children FREE

Please bring a healthy picnic basket, Picnic blanket, family and friends.

All funds raised will go towards the “Lending a Healthy Hand Program” which will then be used to enhance, improve and promote health in developing communities abroad.

PROFILE

New hat for

Pat P

atrick Cheetham steps up to take the position of Managing Director, in the 25th year of Dataflex. Patrick has worked in IT for a decade and has a deep understanding and a personal commitment to Dataflex. “I look forward to taking the company on an upward journey well into the next 25 years of business.”

Patrick Cheetham, Executive Chairman.

Patrick has worked at Dataflex for over 6 years, in this time he has worn many hats ranging from Sales Executive to Cloud Solution and Data storage Architect. Patrick also brings experience in the IT reseller business as he was previously the Manager of the Ethan Group in Canberra.

“In this ever changing industry, Patrick brings many fresh ideas to Dataflex and I am looking forward to this exciting new chapter of Dataflex,” said Brian Evans, Dataflex Managing Chairman.

Dataflex has grown rapidly over the past seven years since it expanded into the NSW market; followed by the launch of Queensland last year. Dataflex is pleased to announce its recent expansion into the Victorian market, increasing the Dataflex portfolio once again.

As well as spatial growth there has also

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//Dataflex has the ability to deliver reliably to customers, generating strong relationships that in turn afford Dataflex to leverage with vendors in influencing pricing and delivery// been internal growth with the opening of the Logistics and Distribution Centre in Fyshwick last year; and the introduction of the Dataflex Hotel division. These developments allow Dataflex to provide expertise of all aspects of end-user computing, services and people; across Federal, State and Local Government, Education and the Private Sector.

The key to the success of Dataflex in a market dominated by multinational vendors is its reputation as a proven Prime Contractor.

Dataflex has the ability to deliver reliably to customers, generating strong relationships that in turn afford Dataflex to leverage with vendors in influencing pricing and delivery.

Dataflex has access to the very best products available from a large range of vendors allowing Dataflex to select from a variety of partners to best achieve the end

Dataflex Executive Chairman, Patrick Cheetham

clients requirements. Dataflex has a large team of technical support staff who ensure that we offer a single point of contact for any issues that may arise. For even the most complex multivendor solution, Dataflex is able to provide a single destination for all helpdesk assistance, troubleshooting and warranty job logging.

This sets Dataflex apart as a total solutions provider - Dataflex can design the best solution, deliver the best fit solution, facilitate the installation and manage the capability through life from help desk facilities through to a full managed service.

Dataflex is looking forward to a promising future with Pat in his new role as Managing Director and looks forward to the future evolution of this diverse company.

Hats off to Pat. For more information on Dataflex call 02 6295 1999 or go to www.dataflex.com.au Level 2, 9 Sydney Avenue Barton Act 2600

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OPINION

10

COMMANDMENTS OF FAMILY LAW

what not to do

By Kasey Fox, Farrar Gesini Dunn

I

can’t guarantee that your family law matter will be smooth sailing, but if you follow these 10 Commandments, you will be more likely to achieve the outcome you desire.

1. Thou shalt not take advice from friends As much as you trust your friends, they are not the ones to rely on for family law advice. You need to get advice from a family law expert and get it early. Once you have the correct information, you will be in a better position to make important decisions about your matter.

2. Thou shalt not go straight to Court This may sound strange coming from a lawyer, but Court is somewhere I want you to avoid if at all possible. Out of all of the options available to separating couples, Court is frequently the most expensive, time consuming and stressful. The best settlements are the ones that parties reach by agreement.

Collaborative Law is one of the options available, and best of all, you control the process. Another option is mediation which is a good alternative if you feel comfortable negotiating directly with your ex and have had legal advice.

3. Thou shalt not be rude to your ex After a break-up it is very tempting to take out your frustrations on your ex. This is particularly the case if you feel wronged by your ex. Try to keep in mind that your goal in your family law matter is to reach agreement as quickly as possible. The quicker the settlement, the less it costs and the sooner you can move on with your life.

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4. Thou shalt not bad-mouth your ex to the children If you and your ex have children together, your priority must be your children’s best interests, and those are not served by telling your children what a bad person their other parent is. To you, your ex may be the devil reincarnate, but to your child, your ex is part of them. Remember: the Court does not look kindly on parents abusing each other in front of their children. It is simple: do not do it.

5. Thou shalt not post online Online material is becoming more common in family law disputes. If you are separated, and in particular if you are in Court, you should assume that everything you post online (including photos) will be scrutinised.

All communications with or about your ex should be short and polite. Remember: if you cannot post anything nice, do not post anything at all.

6. Thou shalt not lie This applies to your ex, your lawyer and most importantly the Court. If you are thinking about hiding assets from your ex, think again. Your goal should be a settlement that is final so you can move on with your life. Hide assets from your ex, and even years later the whole deal could be undone. Do you really want to be looking over your shoulder for the rest of your life?

7. Thou shalt not sweat the small stuff Trust me – as much as you love that tea cup, it is not worth the thousands of dollars you will pay your lawyer fighting over it or the stress it will cause. Focus on the bigger picture: if you can reach agreement on the

big ticket items such as the house and super, it might be worth letting go of some of the smaller items.

8. Thou shalt not be inflexible If you approach your matter with an allor-nothing approach, nothing is just what you might end up with! In property matters, fighting to keep the house could mean you end up selling it to pay the bills. This doesn’t mean you simply give up and accept a bad settlement.

Instead try to be creative with the options you are willing to consider. There might be some middle ground where you get some of what you want and your ex gets some of what they want.

9. Thou shalt not go it alone Remember that you are not alone in this process. Support of friends and family can be important to help keep you sane after a separation. You may even want to seek counselling to help you through it. If you don’t know where to turn, ask for help.

10. Thou shalt not fail to formalise If you fail to formalise your settlement, it is not binding. Once you reach an agreement it is vital that you document it in a legally enforceable form that is recognised by the Court. This is the time to see a family law expert to make sure you are protected. It will be money well spent.

For Family Law Advice contact Farrar Gesini Dunn Level 5, Colonial , Mutual Building 17-21 University Avenue, Canberra City ACT P (02) 6257 6477 | F (02) 6257 4382 E fgd@fgd.com.au | www.fgd.com.au

Are you looking for a business advisor not just a tax agent?

90 years and here to stay At RSM Bird Cameron, we don’t just talk to our clients at tax time. We help you navigate and plan the future of your business and personal wealth throughout the year.

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rsmi.com.au

Connected for Success 02 6247 5988 Level 1, 103-105 Northbourne Avenue, Canberra ACT 2601

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F E AT U R E

Jigsaw Housing named 2012 Canberra BusinessPoint Business of the Year

C

anberra business Jigsaw Housing has been recognised for its innovative leadership in the, emerging field of integrative design by winning the inaugural Canberra BusinessPoint Business of the Year award.

Jigsaw Housing co-founded by an architect, builder and scientist offers energy efficient, residential building services including design, construction and thermal performance assessment. It was chosen as the 2012 Canberra BusinessPoint Business of the Year after recently winning the Clean and Green category at the 5th annual Canberra BusinessPoint Awards held at the National Portrait Gallery.

Finalists and winners in the 2012 Canberra BusinessPoint Awards were announced across six categories which recognise both the diversity of start-ups and existing firms in the ACT and the innovation, effective business planning and future potential of these enterprises. The major prize of 2012 Canberra BusinessPoint Business of the Year was presented by Minister Andrew

Barr.

Chris Faulks, Canberra Business Council CEO, and Anna Pino, CEO of the Lighthouse Business Innovation Centre, said the high standard of entries in this year’s Awards is very encouraging for the future of business in Canberra.

“Canberra BusinessPoint Awards this year demonstrate that the ACT is an excellent incubator for successful small businesses”, Ms Pino said.

Ms Faulks added that the calibre of finalists and winners not only reflects the success of each of these companies but the high-quality assistance being provided to new and growing businesses by Canberra BusinessPoint.

“As we are fully aware establishing businesses can be a trying process,” Ms Faulks said. “The work that Canberra BusinessPoint does in mentoring new and existing local businesses is extremely valuable.

“Jigsaw Housing, along with the other award winners in 2012, has shown great

innovation in their fields and has provided a great template for other businesses to follow in the future.”

This was backed up by the Co-Director of Jigsaw Housing, Jenny Edwards, who said she was grateful to Canberra BusinessPoint for their expertise and knowledge of the Canberra business community.

“Canberra BusinessPoint provided us with excellent mentoring and helped us to identify the strengths and weaknesses within our team and the opportunities and potential pitfalls ahead.” Ms Edwards said.

Canberra BusinessPoint had over 1200 businesses come to it for assistance or advice in 2012 alone and over 2000 since its relaunch in February 2011. It offers practical advice and support for both existing businesses and those intending to start a business in Canberra. Through mentoring programs and one-on-one consultations, Canberra BusinessPoint provide tailored and specific advice allowing local businesses to reach their full potential.

F E AT U R E

Winners and Finalists | 2012 WEB AND MOBILE Winner Cloudcentral | www.cloudcentral.com.au

Finalists Myinfoq www.myinfoq.com

Kris Sheather is the founder of Cloud Central.

CloudCentral is a 100 per cent Australian owned and operated provider of highly scalable, secure, dynamic cloud computing services. We focus on providing superior services to Australian software developers, IT service providers, enterprise and government customers.

Hrmweb www.hrmweb.com.au www.easyemployer.com.au

CLEAN AND GREEN Winner Jigsaw Housing | www.jigsawhousing.com.au

Finalists Envirolove www.envirolove.com.au

Jenny Edwards (scientist), Andrew Vent (architect) and Tom Henderson (builder) are the three directors of Jigsaw Housing.

Jigsaw Housing is a leader in the innovative, emerging field of integrative design: Architect + Builder + Scientist. Jigsaw offers comprehensive energy efficiency-focused, residential building services including design, construction and thermal performance assessment.

Easycare Landscapes www.easycare.com.au

BRICKS AND MORTAR Winner Switched on Cycles | switchedoncycles.com.au

Finalists Omege Medical Design www.femeflex.com

Simone Annis and Kim Houghton established Switched on Cycles in 2009 to bring good quality, mid priced electric bikes to Canberra.

Switched on Cycles work with manufacturers in China to make bikes to their specifications and then they market the bikes under the Switched on Cycles brand. This helps keep prices reasonable and the bikes are tailor made for Canberra. Off-the-shelf bikes bound for Europe are not well-suited to longer and faster rides. E-bikes enable a whole new group of people to ride and leave their cars at home.

Flint in the Vines www.flintinthevines.net.au

CREATIVE AND DESIGN Winner Canberra Academy of Dramatic Art | www.cada.net.au

Finalist Knave & Fables www.facebook.com/knavefables www.etsy.com/shop/KnaveAndFables

Elizabeth and James Scott are the founders and owners of Canberra Academy of Dramatic Art (CADA). CADA is Canberra’s leading drama school, providing innovative training in drama and communication skills for children aged 4 through to adults with an average of 200 students a week.

MICRO-ENTERPRISE Winner Canberra Holistic Massage | www.canberraholisticmassage.com Canberra Holistic Massage provides remedial massage therapy and complimentary modalities. Monica Gallacher founded Canberra Holistic Massage in 2005, as a part-time home business and took the leap to running the business fulltime in 2007.

Andie Meredith www.andiemeredith.com

Finalists Achieve Beyond www.achievebeyond.com www.cheerchickcharlie.com www.leanneshealangdown.com Nature’s Canvas www.naturescanvas.com.au

HIGH GROWTH Winner Handmade Canberra | www.handmadecanberra.com.au

Finalists Contractor Compliance Australia www.contractorcompliance.com.au

Julie Nichols is the founder of Handmade Canberra. Handmade Canberra exists to connect local designers and the general public.

The purpose of Handmade Canberra is two-fold; to provide a permanent showcase opportunity for handmade creations by local and interstate designers, and, to provide the local, regional and interstate community with access to these designers and artists.

Deeks Health Foods www.deeks.com.au

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F E AT U R E

Greg Mitchell, Chief Executive Officer Canberra Southern Cross Club and Brett Norton, OPC Managing Director

OPC AND CANBERRA SOUTHERN CROSS CLUB The Canberra Southern Cross Club (CSSC) first opened its doors in 1972 and has grown to have six venues around Canberra with over 85,000 members. The Club is celebrating its 40th year in 2012 and is as vibrant as ever.

T

heir continued focus is to provide excellence in member services and as such the CSSC has been recognised year after year in multiple categories at the Clubs ACT Awards across the entire spectrum of its offerings.

In order to deliver their range of member services 7 days a week/20 hours a day at each venue the Canberra Southern Cross is naturally heavily reliant on its IT infrastructure.

Since 2009 OPC has worked in partnership with the CSSC by providing fully managed IT services that also include the development of an ongoing ICT strategic plan to ensure the stability, redundancy and high levels of availability of IT services across each location.

“We are very pleased with the IT support and advice OPC provides to the Canberra Southern Cross Club,” said Greg Mitchell, Chief Executive Officer Canberra Southern Cross Club.

“As a member of the CSCC since the 80’s, I am simply delighted that OPC plays such a key role in the support of one of Canberra’s leading clubs,” commented Brett Norton, OPC Managing Director.

OPC’s managed services effectively provide Canberra Southern Cross with its very own IT department. Proactive monitoring with sophisticated toolsets is undertaken, as well 18

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as managing and responding to the Club’s computing requirements at all levels.

“All of this is achieved for a fraction of the cost of resourcing internally.”

In addition, the OPC team that provides the support is highly skilled across a broad range of technologies and maintains the highest accreditations to remain at the leading edge of the changing face of technology.

“The Canberra Southern Cross Club is a modern club at the forefront of modern technology thanks in great part to our partnership with OPC IT,” Greg explained.

“Our managed service gives Canberra Southern Cross complete peace of mind,” Brett added.

Today people are mobile and have multiple devices. They work from multiple locations - from home, the office, from the boardroom to the transit lounge - so they need access to their applications and data with total security. The idea of a single operating system and single device per user is literally a thing of the past.

“Our board members and key staff are extremely busy and mobile. OPC and state of the art modern technology enables us to share, and have access to information, wherever we are in the club – or around the

world,” Greg said.

OPC is looking to the future to help the Canberra Southern Cross Club capitalise on new technologies to meet the changing needs of its user communities.

As well as providing redundancy and high availability with the implementation of server virtualisation with VMware vSphere, OPC has implemented VMware View to provide the Club with a long term virtual desktop strategy. View simplifies desktop and application management whilst also increasing security and control. It also provides higher availability and agility of desktop services unmatched by traditional PCs while reducing the total cost of desktop ownership.

“The Southern Cross Club employees and board members are enjoying new levels of productivity and the freedom to access their business applications from more locations and devices such as Tablets,” Brett explained.

One of the major upsides to this technology is the simplification of the management process as OPC retain control of IT and gain operational efficiencies.

“The Canberra Southern Cross Club is a progressive club that embraces new technologies and OPC is proud to be partnering with them,” Brett concluded.

F E AT U R E

S

ince 1985, OPC Canberra has become synonymous with the provision of the highest standards of technical services and provision of business solutions throughout Canberra and the surrounding regions. Our clients come from a diverse range of environments including education, government and small-medium business.

Our aim at OPC is to demystify and simplify our clients’ entire IT experience.

By incorporating all facets of ICT, OPC can provide a single end-to-end fully managed IT solution, reliably and consistently. Our clients have complete peace of mind that they really can just ‘leave it to us’.

We are committed to providing definitive levels of support on an ongoing basis and have developed client specific managed services to facilitate this.

Our success is measured by our team member satisfaction in delivering service and our customer’s belief in the true value of our partnership.

What we do: • Fully Managed IT Services • Project Management & Consulting • VMware Server & Desktop Virtualisation • Helpdesk & Service Desk Support • Business Continuity & Disaster Recovery • Procurement Services • Dell Server & Storage Solutions • Desktop, Laptop and Mobile devices • Website Design & Development • Custom Drupal Development • Panoptic Monitoring & Website Hosting • Accessibility Compliance Testing 31-37 Townshend Street, Phillip ACT 2606 P: 02 6162 8300 F: 02 6282 6558 www.opc.com.au The Panoptic Monitoring system, developed by OPC allows you to monitor your website at any time of the day, 7 days a week and provides the peace of mind that in the event of an outage or urgent module update OPC will be available to do what is required to keep your site available at all times.

F E AT U R E

ASPEN MEDICAL wins ACT Exporter of the year award for second year in a row

A

spen Medical, a home-grown Canberra company continues to go from strength to strength recently taking out the ACT Chief Minister’s Exporter of the Year Award for the second year in a row. Aspen also won the Large Services category at this year’s ACT Export Awards presentation lunch, which was held at the Hyatt Hotel on 26 September 2012.

Aspen Medical, established in 2003 by high school friends Glenn Keys and Dr Andrew Walker, provides high quality healthcare, including healthcare professionals, facilities, equipment, procedures and aeromedical evacuation services in remote, challenging and under-resourced areas. Aspen now exports to eight countries, with 531 staff out of a total staff of 1016 employed internationally.

The latest award is Aspen Medical’s eighth Export Award-related title, following its success at the Australian Export Awards last year where it was named national winner of the Large Services category.

ACT exporters play a vital role in developing the strength and diversity of our local economy. In the past year exports contributed more than $1.2 billion to the ACT economy. The ACT Chief Minister’s

Export Awards are just one way of recognising and celebrating export success and the contribution our local exporters make to Canberra’s and Australia’s economy and international reputation.

Chris Faulks, CEO of Canberra Business Council, which has managed the ACT Export Awards on behalf of the ACT Government for the past five years, said the growing number of internationally successful, innovative ACT companies provided an incredibly optimistic future for exporting in the Territory.

The companies that were finalists and category winners in the 2012 ACT Export Awards were not only inspiring in their own right, they demonstrate just how diverse and vibrant our private sector is in the ACT. Category winners were: • Small Business – Recruitment Systems Pty Ltd • Emerging Exporter – Locata Corporation • Small to Medium Services – Seeing Machine Limited • Large Services – Aspen Medical • Small to Medium Manufacturing - Datapod • Agribusiness – Inland Trading Co (Aust) • Information and Communication Technology – XP Solutions

• Arts and Entertainment – Bearcage Pty Ltd • Minerals and Energy – Digitalcore Pty Ltd • Microbusiness (ACT only) The winners of each category in the ACT Export Awards will now go on to compete as finalists at the 50th Australian Export Awards at Parliament House, Canberra on 27 November 2012.

For those ACT companies that missed out on nominating for the Export Awards this year, the 2013 Chief Minister’s Export Awards will provide a unique opportunity in the Centenary Year to showcase the ACT’s dynamic, innovative exporting community that exports an extraordinary range of goods and services throughout the world.

Nominating for the ACT Export Awards not only increases the profile of your business and achieves local recognition. Category winners at the ACT level then go on to receive national recognition which can lead to further international success.

F E AT U R E

Inland Trading, who specialise in the export of premium quality Bearcage specialises in film, television and digital media production wines from 70 wineries around Australia, exported more than 310,000 for the Australian and international broadcast market developing cocases of wine to 38 countries in 2011–12 and have just signed a production partnerships with experienced producers in Germany, South US$1.3m contract in China with Metro - the third largest supermarket Africa, and New Zealand. operation in the world.

Local GPS technology exporter Locata Corporation was recognised as an emerging exporter for exporting its unique radiopositioning technology which delivers high accuracy positioning in remote areas and indoors, totally independent of GPS.

XP Solutions has established a global reputation for excellence in the development and marketing of water engineering software used to quickly and accurately simulate the impact of a storm or flood event or failures such as dam breaks. Over 4,000 organisations around the world use XP’s wide range of water engineering products.

Datapod exports data centre modules, designed to be deployed in any number of configurations and interchangeable to adapt to the ever-changing space, power and cooling demands of computer/IT technology.

DougsWordClock is a boutique, Canberra-based manufacturer of custom art clocks that tell the time using words. In 2011-12, DougsWordClock exported to the USA/Canada, Europe, the UK and NZ.

Digitalcore is the leading provider of 3D high-resolution digital rock analysis to the global oil and gas industry.

Recruitment Systems Pty Ltd is a born-global company, exporting recruitment CRM software products to assist recruiters by better organising key documents and communications; managing client and candidate contact; uploading positions to jobsites and downloading candidate applications.

Seeing Machines Limited has commercialised research that uses computer vision technology to monitor driver fatigue. Seeing Machines has been an exporter from its inception in 2000 and by 2012 had achieved export sales to twenty-one countries.

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COVER STORY

solvency

of Turnaround and In

Frank Lo Pilato, Director, has guided RSM Bird Cameron’s Canberra Turnaround and Insolvency division from a one-person operation in 1991 to Canberra’s largest insolvency practice, with 22 full-time staff in 2012.

F

rank Lo Pilato, Director, has guided RSM Bird Cameron’s Canberra Turnaround and Insolvency division from a oneperson operation in 1991 to Canberra’s largest insolvency practice, with 22 full-time staff in 2012. Frank has seen a lot of changes over the last 20 years and fondly remembers those times when business seemed a lot simpler.

“Today businesses seem to be larger and take on more risk.

There is also more legislation and red tape,” Frank said, “Business was more word of mouth - now there is a harder edge with lawyers and contracts.”

According to Frank the insolvency business is far more competitive these days and is driven by confidence and trust

through a strong referral base.

“Because many businesses have had to tighten up over the last four years, because of the Global Financial Crisis, they want value for money and what has been promised to be delivered on budget and on time,” Frank explained. When Frank started the Turnaround and Insolvency division with RSM Bird Cameron in Canberra his goal was to break into the market and promote awareness of their skill set.

Frank was concerned about taking on staff but was encouraged by Managing Director Garry Lee to ‘get bums on seats to create the capacity to do the extra work’.

COVER STORY By 2008 Frank had nine staff and in the past four years has grown the division to 22 staff and doubled their revenue.

“I am proud of all of our team. We have four liquidators and are a true national practice. We are especially looking to further our network of relationships with lawyers and accountants to assist them and their clients lives and businesses,” Frank said.

Frank acknowledged that a key to his success was the stability of his senior management staff. “Jonathon Colbran and Mitchell Herrett have worked with me for the past 10 years and have been critical to practice growth and development.” He said they bring key skillsets to the practice, which were recently recognised with both being appointed as Principals with RSM Bird Cameron.

“Jon and Mitch’s professional integrity and commitment to the profession have been evident for a long time. Both have over 12 years of experience amassed in the corporate and personal insolvency profession.

I have mentored them both through their careers and they are the future of Turnaround & Insolvency for RSM Bird Cameron,” says Frank.

“We all enjoy working together and having the ability to bounce ideas and problems between us is a definite benefit as we all have different skills and experience” RSM Bird Cameron’s Turnaround and Insolvency division now provides a full suite of services including:

• • • • •

Insolvency; Turning businesses around; Supporting creditors to litigate and prosecute directors; Pre-lending viability assessments; and Fraud and forensic accounting.

Frank says there are five key reasons for their growth:

1.

2.

3.

4.

Stability of staff; Profile building over time; Delivering on promises and expectations; Relating to a clients situation with empathy and understanding; and 5. RSM Bird Cameron being a national practice with depth of experience and resources.

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Another reason is that it is more complex to do business in 2012.

“There is certainly more hostility and disputes when there are large amounts of money on the line. These days there are also more rigid guidelines for borrowing money from the banks,” Jonathon outlined, “Good operators are being asked for more security and banks are becoming more reluctant to lend just on the value of your home.”

In Jonathon’s opinion there has been a three-pronged attack on businesses in recent years:

1. The banks have tightened up; 2. Global Financial Crisis and business confidence; 3. Bureaucracy and tightening up on taxation compliance.

• Directors becoming personally liable for unpaid tax and super; • Increased recovery activity from the ATO. There are also regional factors that can impact on business.

“Property values and cuts to the public service can have a big impact on confidence in the local market,” Mitch added.

If there is one point that Frank would like to get across to business owners and their advisors it is that they should seek advice early.

“If businesses come to us when problems are foreseen or just developing there is a much higher chance that we will be able to implement a strategy to trade out of their financial difficulties. Seeking advice earlier enables us to negotiate with landlords and banks and keep people afloat and potentially save their home and other assets,” Frank explained.

The best part is that Frank and his team don’t charge potential clients to sit down for an initial no-obligation discussion about the various options that may be available.

“If a business leaves it too late they potentially bypass most of the options that would be available if action was taken earlier,” Frank said.

When it all comes down to it Frank believes that his key role is to solve problems for businesses.

“We work with individuals, accountants and lawyers to solve problems when businesses get into trouble.”

“If you are having issues with your businesses your tax accountant and lawyer may not be aware of all of the options available to you.

This is why you need to see a specialist in insolvency and turnaround,” Frank explained.

COVER STORY

Frank Lo Pilato Director Canberra born and bred, Frank studied at St Edmunds College and later completed his Bachelor of Economics at the Australian National University..

Last year marked his 20th year with the firm, he has relished the opportunity to work closely with the Canberra business community and surrounding regions for the past 25 years. He has enjoyed seeing the practice grow from 3 people in July 1991 to 22 staff in 2012. Over the years Frank has been actively involved in the community, taking part in the 1st St Vinnies CEO Sleepout in Canberra, participating in the 2011 Oxfam Trailwalker 100km Walk and for many years was involved with the ICAA (Institute of Chartered Accountants Australia) including 2 years as the Chairman.

Rugby tragic and one-time ACT Kookaburra Frank still is enjoys being active and carries this passion for a healthy living forward by regularly walking up a local favorite Mt Ainslie and participating in fun runs.

Frank is a Chartered Accountant, Registered Official Liquidator & Registered Trustee in Bankruptcy and he attributes the success of his practice to their philosophy to simplify complex matters by looking at the commercial angle for all parties. This approach he has found, more often than not, guarantees the best outcome to complex situations for all involved. In an increasingly convoluted and ever changing business world troubled entities and individuals often require financial strategies capable of addressing those changing circumstances from an independent, honest and technically proficient advisor.

Frank and his team are equipped to handle these types of appointments. They are backed up by national resources and extensive experience across small to medium sized enterprises varying from varying industries and situational needs. Their straight talking, honest advice with no surprises is their point of difference.

Mitchell Herrett Principal Mitchell is a Principal with RSM Bird Cameron’s Turnaround and Insolvency division in Canberra.

He is a Registered Liquidator and Official Liquidator with over 12 years experience in the insolvency profession. Whilst some of Mitchell’s biggest professional achievements were completing the Chartered Accountants program, becoming a registered Liquidator and being promoted to Principal, he believes that his biggest, and undoubtedly his proudest, achievement was being promoted to dad three times. With a son and identical twin daughters, Mitchell’s time at home is sometimes just as exciting as his time at work. Mitchell moved from Sydney to Canberra with his wife in 2004 with the plan to start a family and to have a sustainable work-life balance. The move to Canberra at the time wasn’t career driven, but looking back, moving to Canberra has proved to be the best decision that he made for his family and career. Mitchell says that it is sometimes hard to believe that he has been a member of the RSM Bird Cameron team for nearly 9 years and as the saying goes “time flies when you’re having fun”.

Mitchell has a passion for the outdoors and enjoys motorbikes, camping, hunting and fishing which all help to relieve the pressures of a sometimes stressful job. Mitchell understands that sometimes his clients may be at a low point in their lives and his aim is to provide them with solutions that can help ease the financial and emotional strains.

Mitchell’s experience includes the management of corporate and personal insolvency matters and involves Voluntary Administrations; Voluntary Liquidations; Deed of Company Arrangements; Official Liquidations; Receiverships; Bankrupt Estates and Personal Insolvency Agreements.

Jonathon Colbran Principal Not Canberra born but certainly Canberra bred, Jonathon, like Frank, is also a product of St Edmund’s College and the Australian National University.

Jonathon is a Chartered Accountant, a Registered Liquidator and an Official Liquidator and has over 10 years’ experience providing specialist insolvency and turnaround advice in the Canberra region, to corporations, individuals, creditors and Government Departments. Jonathon specialises in providing insolvency solutions for small to medium enterprises and individuals with unmanageable personal liabilities. These solutions include formal repayment arrangements with creditors and informal workouts and restructures. Jonathon’s proudest professional achievement occurred in 2007, when he placed 2nd in Australia in the Insolvency Practitioner’s Association of Australia, Insolvency Education Program. In his spare time, Jonathon can be found pulling on the gloves for his beloved Tuggeranong United Football Club. A former Treasurer and committee member for the club and a goalkeeper for over 20 years, Jonathon will tell you that there are a lot of similarities between goalkeeping and being an insolvency practitioner. Jonathon explains that as a goalkeeper, you need to stay focused and make clear concise decisions, you need to communicate well and you take the field knowing that perhaps more than any other player, your skill and expertise can determine the outcome of the game. Born in Dubbo, and with deep family roots in Crookwell and Goulburn, Jonathon attributes his honest, straight talking approach to the values instilled in him by his family. This natural disposition allows Jonathon to more effectively advise on matters of insolvency and litigation support, for both local and interstate solicitors and accountants, who require him to prepare solvency reports or provide pragmatic solutions for their clients.

Tony Grieves Dispute and Fraud Tony is a Registered Liquidator and has over 20 years experience across a range of fields within the accounting profession including all forms of Turnaround and Insolvency, Dispute, Forensic accounting, Fraud Investigations, Valuations and Due Diligence reviews.

Tony recently joined the RSM Bird Cameron team and he brings with him specialist skills in the Dispute, Fraud and Forensic accounting areas which means the Canberra based team now has four Registered Liquidators servicing the region as well as the ability to provide additional specialized services. Arguably making it the most qualified locally based team in terms of insolvency appointments and other specialised services in the ACT and surrounding regions.

Tony has also undertaking a number of program evaluations and organisational reviews for Government agencies as well as worked closely with numerous organisations in the Not-For-Profit sector providing governance and financial advice. This work has lead to Tony travelling and working extensively throughout all parts of Australia including remote locations in central and northern Australia and the Torres Strait.

Travelling and spending time in various remote aboriginal communities Tony has acquired an appreciation of traditional indigenous art which he has collected over the years.

Although he has spent a number of years working in Sydney, Tony considered himself a Canberra local after growing up in the region.

Today Tony and his wife Sarah, have three boys who keep them busy with sporting activities. When he has spare time Tony also enjoys a hit of cricket or round of golf and travelling with Sarah and their boys.

COVER STORY

Case study RSM Bird Cameron was called in by a tax accountant to meet with the director of a company on a Friday afternoon. The tax accountant had reviewed the books and come to the conclusion that they needed liquidators to close the business. The director said this would lead to his financial ruin and a possible nervous breakdown.

This business is still trading today – four years later.

We outlined a number of options that were available to the company that had not been considered.

The business owner digested the options over the weekend.

Come Monday the business owner gave RSM Bird Cameron a call and said he was newly motivated to implement the strategy that had been mapped out to deal with his creditors and importantly save his business.

This business is still trading today – four years later.

“We did not charge for that Friday afternoon meeting. We know people are usually struggling to make ends meet when they come to see us. We don’t want them to be thinking about the cost of seeing us – we want them to concentrate on the options that may be available to them,” Jonathon explained.

What does the future hold for Frank and his team at RSM Bird Cameron?

First Frank says he intends to consolidate the experience that his team has brought together and add value for their existing clients and referral base of accountants and lawyers.

Frank’s strong team of liquidators, Jonathon Colbran and Mitchell Herrett, has been added to with the arrival of Tony Greives.

“With Tony joining us we can now provide a specialist fraud and forensic accounting skillset in-house,” Frank said.

RSM Bird Cameron can now offer solutions to departments with issues around organisations they have funded and assist them to look at viability and misappropriation of funds or disputes they may have.

“We can assist at the beginning of programs by doing due diligence around organisations applying for funding. We can also undertake ongoing monitoring of programs,” Tony outlined.

Frank says his team will continue to do training with the lawyers and accounts they work with to recognise early warning signs and to keep abreast of legislative changes.

“We want to be our clients trusted advisor for business problem solving,” Frank said.

RSM Bird Cameron Turnaround and Insolvency are also looking for accountants with specialist knowledge to come and join Frank and his team and continue to grow with them.

“We do this work because we love problem solving and putting processes in place to resolve them - every job is different and we always look forward to the next challenge,” Frank said.

Level 1, 103-105 Northbourne Ave Turner ACT 2601 T 6247 5988 | F 6247 3703 www.rsmi.com.au

ADVICE 28 28

ACCOUNTING

29

CORPORATE GOVERNANCE

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ESTATE PLANNING

30

HEALTH

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STRATEGIC FINANCIAL ADVICE

30

WEBSITES

Be aware of scams and stay safe online

by Tony Grieves, RSM Bird Cameron

BUSINESS LAW Back to basics on ownership structures: Part 1

by Cassandra Emmett, Elringtons Lawyers

Business deregulation

By Phil Butler, Australian Institute of Company Directors

The tax benefits of testamentary trusts

By Stephen Bourke, Certus Law

Contemplating for too long? Change your life with one decision

By Robbie Manzano, Healthy Identity

Effective estate planning

By Sean Ryan, Perpetual Private

How to launch your idea online

By Sam Gupta, Synapse

B 2 b O C T O B E R 2 0 12

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ACCOUNTING

BUSINESS LAW

Be aware of scams and stay safe online

By Tony Grieves

Identity theft using techniques such as phishing is a fast-growing area of online fraud. Phishing emails are fraudulent emails purporting to be from reliable sources. They usually ask the receiver to enter private information such as usernames, passwords, credit card details, or other data that could enable the sender to access bank accounts or otherwise commit fraudulent activities.

According to an ABS survey (conducted in 2012/11) around 6.4 million Australians over the age of 14 were exposed to a scam (of any type), and 8 per cent of those were exposed to email scam.

Recognising a scam email The ATO has identified a few common types of tax-related phishing emails to be aware of: • General phishing scams. These emails ask for personal information, such as name, usernames, passwords, and tax file numbers. They might direct you to what appears to be the official ATO website.

• Refund scams. These email scams purport to be from the ATO and offer a tax refund. They may ask for banking details such as credit card numbers or link to a download that installs a virus on your computer.

• Recalculation of tax refund scams. These emails offer a tax refund and ask for a form to be filled out and printed. Information such as credit card numbers and bank account details are required to be sent via email when the form is printed.

Avoiding internet scams Reduce the risk of you becoming a victim of phishing scams by using your common sense and the following tips might help: • Keep computer software up to date. Check for and install regular updates to your operating system and other programs which may include security patches.

• Security software. Use software such as anti-virus and anti-spam programs to protect your computer and scan regularly.

• Emails. Use spam filters and avoid opening any suspicious-looking emails.

• Attachments. Scan email attachments before opening. Don’t open attachments from unknown sources.

• Websites. Type website addresses directly into your browser rather than clicking on a link. Verify web addresses before accessing them.

• Confidential information. Never submit your confidential personal information via email or web form.

• Report. Report suspicious-looking emails to the ATO or other appropriate authorities.

by Cassandra Emmett

Choosing the best ownership structure for your business requires consideration of the potential costs, duties, personal liability, and flexibility. Two common legal structures are partnerships, and proprietary limited companies. Although a company is a more complex structure, it is often preferred for the following reasons: Protection from debt and liability: A company operates as a separate legal entity, capable of incurring debts and liabilities in its own right. This provides a veil of protection for the owner’s personal assets, as owners are not automatically personally liable for business debts.

Better Succession Planning: Gradual share buy-ins are a useful mechanism for succession planning in companies, allowing owners to sell their stake gradually without relinquishing immediate control. A buyer has a chance to become familiar with the company’s operations before taking outright control.

Easier Transfer of Control or ownership: transfer of control between old and new directors should not trigger tax liabilities, and can be achieved without disruption to the key operations of the business.

And transfer of ownership between family members or trusts can occur without the burdensome and costly exercise of deeds or sale agreements.

Beneficial structure arrangements: a separate trading entity can rent business premises owned personally, or owned by separate investment entities.

Additionally, companies pay tax at a reduced rate, and a company can raise capital through its shares.

In comparison, a partnership structure is less costly to establish, and will be simpler for small businesses with low turn-over. Important disadvantages to bear in mind are: Liability: each partner is personally liable for the debts of the business in agreed shares. However, if the partnership breaks down or one partner is unable to contribute their share, the other is personally liable for the entire debt. Additionally, each partner is liable for the actions of other partners.

Disputes: The successful operation of a partnership depends on the ability of the partners to agree, and partnerships are usually based on joint control of the business. Therefore, if a dispute arises the operations of the business are often disrupted. Where disputes cannot be resolved, dissolution of the partnership, and closure of the business, is more complicated than a corporate liquidation, with more involvement required from individual partners and more time and stress.

Tax: partners are personally liable for taxation of business profit, and will more often than not involve higher taxation rates than a company.

Ultimately, the nature and size of your business and your risk profile will all be relevant, and consideration of the above issues together with good advice will help you to choose the best model for your business and ensure its success.

Bird Cameron

Chartered Accountants

If you’re unsure about any electronic communication you receive, and suspect that it may be a scam email, feel free to contact Tony Grieves of RSM Bird Cameron on 02 6247 5988 or tony.grieves@rsmi.com.au or speak to the ATO directly for advice.

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Back to basics on ownership structures: Part 1

Cassandra Emmett Special Counsel & Manager, Business Services Contact Elringtons T: (02) 6206 1300, Level 7, 221 London Circuit, Canberra City visit: elringtons.com.au

CORPORATE GOVERNANCE

by Phil Butler

Business deregulation

Businesses based in the ACT can face greater complexity compared to that experienced by their national small business peers. It can be an unfortunate consequence of the Territory being an “inland island” surrounded by NSW. At times, the proximity to both the Capital and NSW can be beneficial, but on the downside, there is much duplication of red-tape when crossing the border into Queanbeyan or to Goulburn.

While good regulation supports the smooth functioning of business and society, the extent of duplication and inconsistencies is an issue for anyone trying to run a business.

It is also an issue for the not-for-profit sector where, just to name one example, individual organisations may have volunteers operating across the two jurisdictions, each with different legislative requirements.

The Australian Institute of Company Directors has a strong interest in ensuring that our nation has the appropriate regulatory framework to assist all sectors achieve their desired outcomes. Whether it be the private, not-for-profit or public sectors, it is important to have appropriate regulation in place.

To further our work on this issue, we prepared a Working Paper in June 2012, titled ‘Business Deregulation: A call to action’, to present a collection of research about red tape, deregulation and to review strategies to achieve regulatory reform.

Our research exposed a consistent pattern of: • government appointing an independent taskforce or body to research and report on a particular area of regulatory reform; • the taskforce or body then producing a lengthy and comprehensive research report to government recommending various areas for reform; • government producing a detailed response to the research report accepting and / or rejecting each of the recommendations; and • then little or no transparency, monitoring or follow-up as to the progress of implementation of the reforms, and no accountability on the part of government for failing to do so.

Notwithstanding the many well-intentioned reviews and initiatives, the volume of regulation impacting business in Australia has continued to increase at an unprecedented rate. Much of the new regulation being introduced is poorly justified and badly implemented, with little or no consultation with those affected.

In the lead up to the ACT election, we would like to see some consideration given to these issues and we look forward to working with the newly elected Government, whatever form it takes, to reduce the regulatory burden and to ensure that any new legislation is appropriate.

This could be addressed in part through more effective consultation and dialogue between business and government.

Phil Butler is Manager - NFP, Public Sector & ACT at the Australian Institute of Company Directors.. For more information about AICD ‘s course programs and events, T: 02 6248 5954.

ESTATE PLANNING

by Stephen Bourke

The tax benefits of testamentary trusts

Clients often ask us about the benefits of Wills which include Testamentary Trusts compared to Wills without Testamentary Trusts.

There are two main reasons people include Testamentary Trusts: taxation benefits and asset protection Let’s address the Taxation Benefits.

It is probably easiest if we use a case study. Bob is a widower who dies leaving three children: Jack – aged 30 (in the process of separating from his wife and earns $100,000 per annum. He has two young children); Jill – Aged 26 and Bill – aged 14.

His estate consists of: • Car $15,000 • House $800,000 • House Contents $30,000 • Superannuation Death Benefits $800,000 There are two main ways in which tax can bite into an inheritance – the taxation of superannuation death benefits and the income tax on the investments from the estate. If the estate is divided equally then the superannuation death benefits are also divided equally. Bill is a minor so his share is tax free. However Jack and Jill are both adults so pay 15% tax and 1.5% Medicare levy on their share of the death benefits which amounts to $44,000 each ($88,000 in total). Jack and Jill therefore receive $504,332 each whereas Bill will receive $548,332 purely because he happened to be under the age of 16 at his father’s death. Putting to one side the tax on superannuation death benefits, there is currently no death duty in Australia. However suppose Jack invests his $504,332. Any income he earns will be combined with his normal income of $100,000 per annum. Assuming the investment earns a return of 7% ($35,303) he will pay tax of about $13,591.

What if the Will included a Testamentary Trust?

The structure of the Will can stream the death benefits to the most tax effective beneficiary. This means that Bill’s share of the estate can be sourced completely from the superannuation death benefits which would be tax free. The balance of$251,668 is streamed through to Jack and Jill equally on which they will pay tax in total of only $41,525. This is a total saving of $46,475. The equalisation clause ensures no one beneficiary is better off. As the death benefits tax has been reduced this effectively increases the size of the estate and the income it earns for each beneficiary. Let us also assume that Jack is earning an income of $37,414 from the Testamentary Trust. As his children are also eligible beneficiaries of the Testamentary Trust, the Trust can distribute the income to his children. Minor children in Testamentary Trusts have the same marginal tax treatment as adults but no longer have access to the low income tax offset. However, even without the low income tax offset almost all the tax would wiped out. This would enable the education needs of the minor children to be properly funded. The above is only a simple example of how a Testamentary Trust works – every situation is different. It is important you get expert advice from your lawyer and your financial adviser.

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

HEALTH

By Robbie Manzano

STRATEGIC FINANCIAL ADVICE

Contemplating for too long? Change your life with one decision

For some of us leading a healthy lifestyle isn't too difficult. For many, juggling the social aspects of life cause major issues to our health.

Regular exercise and a good diet promote a healthy lifestyle however, have you ever asked yourself why you got take-away for dinner for the last 3 nights or why you didn't go for that run you said you were going to do last month?

Every step towards health is a step away from obesity. Every consumed fruit and vegetable is a step away from cardiovascular disease and cancer.

Having the knowledge or contemplating an action doesn't necessary lead to practice. In fact we contemplate things all the time. Can you recall how many things you wanted to do yesterday and how many actually started to take action?

To make sense of these dilemmas all we need to do is to explore the classic question - Why? Why did I choose to sit on the couch instead of going to the gym and why did I chose to get takeaway instead of that healthy sandwich in the fridge? For most of us the word "convenience" comes to mind.

Convenience - what's does it really mean? To put in Layman's terms, it's fancy way of describing lazy. Now use lazy in a exercise and nutrition context and visualise the practical outcomes produced from this practice. Visualise how much exercise are you doing? What types of food are you consuming and where you are when you eat those foods.

Now visualise yourself a year later living this practice. It's not a pretty sight - right?

Fortunately, Canberra has the resources to exercise regularly and eat healthy. Unfortunately, access to a wide-range of foods and health services have distorted our perception on healthy living.

Canberra's population has seen obesity, cardiovascular disease and type 2 diabetes increase dramatically the last 2 decades as a result.

So, what to do, what to do, what to do? For all you contemplators I need you to take some course of action now. Get your shoes on and go for that run or get up and make a healthy meal (after reading this, of course). Even better, call up a friend and organise a weekly game of tennis.

Every step towards health is a step away from obesity. Every consumed fruit and vegetable is a step away from cardiovascular disease and cancer. Make this a life changing week, let's take action and make the first step towards a new identity - a Healthy Identity

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 is currently completing a Graduate Certificate Public Health from Curtin University. robbie.manzano@healthyidentity.com.au 0423 366 014

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by Sean Ryan

Effective estate planning

While most successful business people focus on growing their wealth, protecting it is just as important. With personal and financial affairs becoming increasingly complex, and people living longer, this generally requires careful and integrated planning.

The factors to be considered in a modern estate plan depend on your intentions and the complexity of your family or estate. Assets such as superannuation death benefits and life insurance proceeds may not be covered by your will, but must be considered as part of your overall estate plan.

The potential taxation of your assets upon death, and subsequently in the hands of your beneficiaries, is an aspect often overlooked. The protection of those assets in the event that a beneficiary suffers legal action or marital breakdown is important to many people. Incorporating a specific trust within your will may provide both tax and asset protection benefits.

In addition, many people don’t consider how they will cope if they become incapable of managing their own financial affairs or indeed their business. The passing on of a business or other specific assets can also create inequities between beneficiaries which an estate plan should address.

A thorough estate plan, regularly reviewed and updated, is a vital document ensuring that your grieving family are protected financially.

Your checklist - do you have the right protective measures in place?

• Do you have a current and valid will?

• Have you chosen a suitable executor?

• Have you appointed an enduring power of attorney?

• Have you made a binding death nomination in your superannuation?

• Do you have a business succession plan in place?

• If you have children under 18, does your will provide a guardian for them?

• Have you considered setting up a trust to protect your family’s inheritance, a dependent with a disability or a charitable trust?

• Is your life insurance sufficient and who will benefit?

Perpetual Private advice and services are provided by Perpetual Trustee Company Limited (PTCo) ABN 42 000 001 007, AFSL 236643. This has been prepared by PTCo. It is general information only and is not intended to provide you with financial advice or take into account your objectives, financial situation or needs. You should consider whether the information is suitable for your circumstances. To the extent permitted by law, no liability is accepted for any loss or damage as a result of any reliance on this information. Any information referenced in the article is believed to be accurate at the time of compilation and is provided by PTCo in good faith.

For more information contact Sean Ryan, Senior Adviser, Perpetual Private.

Direct: 02 6243 6505 Email: sean.ryan@perpetual.com.au

WEBSITES

by Sam Gupta

How to launch your idea online

Have a great business idea? Consider an online start-up! It could be a website or a mobile app. Having an online business has countless benefits; low cost of capital, fast deployment, flexible resources, high returns, bigger target audience etc. However, the road to that could be overwhelming. This article can help you with that: • The Eureka moment It’s an amazing feeling when you come across a great idea. Make sure you do some research on it first. Find out what else is out there. Think of a name or even register a domain if you can. Discuss with your close friends & family, take their opinion. Get a Non-Disclosure Agreement signed if required.

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• Force yourself to take action Next step is to get serious. Find more time from your busy life to work out the business model, setup plans & goals, organise funds, setup legal entity and so on. Great ideas can come to anyone, but success comes to those who act on them.

Even I face the same issue. I have so many great ideas, and although I have access to an amazing development team, we keep putting our own work on the back burner. I think this second step is one of the hardest. Do this properly, because your success depends a lot on this.

• Be clear & flexible Be clear and flexible in your brief to the developers. Many projects evolve over a period of time. Select a development company who really understands your idea and your overall vision. Face to face meetings help. Think long term.

• Simplify development process The first prototype of Twitter was built only after a couple of weeks of development and was then used as an internal service for the Odeo employees. If you are not careful, you can complicate a simple idea by adding unimportant features at very early stages. Keep it simple at first and launch it fast. Your customers can tell you what features they want next. This will help you to get into the market sooner and will also give your customers something new to come back to.

• Have a launch strategy No use having a great website or mobile app if no one knows about it. Allocate a budget for promotions. Start with the core target market. Create a buzz, make a splash!

Most importantly, follow your heart; the success will follow you.

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A2B

MINISTER’S MESSAGE

Private sector critical for continued growth in the ACT ANDREW BARR

ACT DEPUTY CHIEF MINISTER TREASURER MINISTER FOR ECONOMIC DEVELOPMENT

As a Treasurer I have few more important goals than ensuring the economy continues to grow and create jobs.

But it is a task I cannot do alone. In particular, it means working with the private sector, and ensuring government does everything it can to help local businesses.

I’m delighted that the government and the private sector have a productive relationship, working towards this common goal of growing the ACT economy.

Canberra is facing some tough economic circumstances caused by the Commonwealth’s contraction in spending and employment. During this challenging period, it is vital that the ACT Government does everything it can to support our private sector.

The ACT Government wants to continue our work to reform the ACT’s taxation system to lighten the burden on businesses and households, and continue to provide targeted support for the private sector.

But most of all we want to continue the ACT Government’s work to support the building blocks of our society – our schools, our health system and our workforce.

Canberra has a highly educated population, world-class research institutions and universities, and an emerging role as a leader in the broader economy of south-east NSW. But it is a base that we can use to grow even more strongly.

Canberra can become a national centre of excellence in education and research, and become home to the nation’s most innovative, forward thinking businesses.

This is an achievable vision, but one which requires long-term planning and the right policy approach.

I have said before on these pages that the ACT Government is not, nor should not, be in the business of picking winners and creating industry

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plans in an attempt to shoehorn investment into particular areas.

Nor should our tertiary and research institutions – as strong as they are – be left to carry the load themselves in positioning Canberra as a smart city.

What government must do is create the right conditions for our private sector thrive, and provide the right support to our education and research sector.

In particular, we want to continue our work to implement the Business Development Strategy, which is providing concrete programs to help local firms to innovate and grow and create jobs.

This includes reducing red tape, making it easier to deal directly with Government, providing significant support and funding for business innovation, and working in partnership with education and research institutions.

We also want to keep lowering taxes on local businesses.

In the ACT Budget, the threshold for payroll tax was raised from $1.5 million to $1.75 million – this means the ACT now has the highest payroll tax threshold in the country and that we are the lowest taxing jurisdiction for businesses with payrolls of up to $4.7 million.

This is good news for local businesses. This payroll tax cut has exempted about 115 local businesses completely from this tax, and gave a tax cut of about $17,000 a year to 1865 Canberra businesses.

In total, this tax cut has put about $6.8 million back into the pockets of local businesses.

The payroll tax cut is in addition to the phasing out of stamp duty and insurance tax, the abolition of commercial land tax, and the introduction of a progressive rates system.

Canberra is facing some tough economic circumstances caused by the Commonwealth’s contraction in spending and employment.

During this challenging period, it is vital that the ACT Government does everything it can to support our private sector.

We look forward to continuing our support for local businesses to keep our economy strong.

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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

Exporters Network welcomes new manager

BY CHRIS FAULKS, CEO CANBERRA BUSINESS COUNCIL ELLEN POPE

NEW ACT EXPORTERS’ NETWORK MANAGER

New Exporters Network Manager The ACT Exporters’ Network will shortly welcome a new Manager. Ellen Pope has been appointed to commence on 15 October 2012 and comes to the role with a strong background in trade and industry assistance. She has a Masters of Business Administration, a Bachelor of Applied Science and a Graduate Diploma in Management (Marketing).

Ellen has worked as a Senior Trade and Investment Officer in Queensland and has experience organizing highly successful trade missions; project managing major treasury initiatives such as the ‘New Asian Markets for Horticulture’ program and DPI’s China Strategy; and developing the DPI&F Trade website to assist Queensland food and agribusiness in their export endeavours.

She is experienced in stakeholder engagement, providing strategic and policy advice and business development.

The ACT Exporters’ Network is an initiative of Canberra Business Council supported by the ACT Government and a number of sponsors. Since its inception in 2002 the ACT Exporters’ Network has been a very valuable resource for ACT exporters.

By offering export capability-building workshops and a collaborative networking environment, the network is able to leverage off the size and collegiate culture of the ACT business community to facilitate experienced members of the Canberra region’s international business community to make their expertise freely available to other members of the network.

With Ellen’s experience, drive and enthusiasm for her new role, the Exporters’ Network is poised to literally “take on the world”.

ACT Chief Minister’s Export Awards Aspen Medical was proclaimed the ACT

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.

Exporter of the Year recently at the ACT Chief Minister’s Export Awards, which were co-hosted by the ACT Government and Canberra Business Council.

Chief Minister Katy Gallagher presented the ACT Exporter of the Year award to Aspen commenting that the ACT’s expanding export community is essential to Canberra developing a diverse economic base and to strong economic growth in the region.

The full list of winners of this year’s ACT Export Awards are: • ACT Exporter of the Year – Aspen Medical • Small Business – Recruitment Systems Pty Ltd • Emerging Exporter – Locata Corporation • Small to Medium Services – Seeing Machines Limited • Large Services – Aspen Medical • Small to Medium Manufacturing - Datapod • Agribusiness – Inland Trading Co (Aust) • Information and Communication Technology – XP Solutions • Arts and Entertainment – Bearcage Pty Ltd • Minerals and Energy – Digitalcore Pty Ltd • Microbusiness (ACT only) - DougsWordClock All winners, aside from the Microbusiness category, will progress to compete at the 50th Australian Export Awards to be held at Parliament House, Canberra, in November this year.

Aspen’s Managing Director, Glenn Keys, commented that he was proud to be associated with the high calibre of business finalists competing at the 2012 ACT Export Awards. He went on to say that he believed back in 2003 when Aspen began and he still believes today, that the ACT provides micro businesses to multinationals alike with a unique place to operate and grow and to engage with government.

A2B

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

Significant decision welcomed on adverse action law GREG SCHMIDT

DIRECTOR, WORKPLACE RELATIONS

Corporate Sponsors ACTEWAGL, 104.7 / Mix 106.3, Prime TV, The Canberra Times, The Good Guys Tuggeranong, Duesburys Nexia, Synapse Worldwide, B2B in Canberra.

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O

n 7 September, the High Court handed down a landmark decision in the case of Board of Bendigo Regional Institute of Technical and Further Education v.

Barclay and Anor. In brief, the background to the case is as follows.

Mr Gregory Barclay is a teacher at the Bendigo Regional Institute of Technical and Further Education (BRIT) and also Sub-Branch President and delegate for the Australian Education Union (AEU). Mr Barclay used the work email system at BRIT to send an email to AEU members alleging that several members had informed him that they had been asked to create false documents for a TAFE accreditation audit. Mr Barclay later refused to provide specific details, including the names of the persons making allegations. The Chief Executive of BRIT considered that spreading non-specific allegations in this way, rather than reporting suspected misconduct to his manager, was a breach of Mr Barclay’s duties as a BRIT employee.

He was suspended on full pay, pending a formal investigation into his actions.

The Fair Work Act prohibits an employer from taking adverse action against an employee for what might be termed a prohibited reason – such as union membership or activities, making a complaint, or for a discriminatory reason such as race, gender or disability.

No one disputes that Mr Barclay’s suspension from duty constituted “adverse action” taken by the Bendigo Regional Institute of TAFE against him. The key question, therefore, was whether the employer’s action was taken for a valid reason, or a prohibited reason. The Fair Work Act includes a presumption that adverse action is taken for a prohibited reason, unless the person or organisation taking that action (usually the employer) can prove that the action was not taken for a prohibited reason. Mr Barclay, and the Australian Education Union, commenced action in the Federal Court of Australia alleging that Mr Barclay’s actions had all been consistent with his role as union delegate, and therefore BRIT’s action against Mr Barclay was taken for a prohibited reason, namely his union activities.

In the Federal Court hearings, the Chief Executive of BRIT, Dr Louise Harvey, provided compelling evidence as to the reasons for her decision to suspend Mr Barclay from duty pending an investigation. The trial judge, Justice Tracey, accepted

that the evidence showed that there were sufficient grounds to justify an investigation into Mr Barclay’s conduct and that adverse action had not been taken against him due to his union activities. Mr Barclay and the AEU appealed against the decision of the primary judge.

The appeal was heard by a Full Bench of the Federal Court, which decided that it should look beyond the evidence presented by the parties to try to determine the “real reason” for the decision taken by Dr Harvey. The Court felt that the real reason may not be the reason the relevant decisionmaker asserts it is (in this case, Dr Harvey), rather, it may be an unconscious reason. It found that while the subjective intention of the decision maker is relevant, it is not determinative. Instead an objective approach was favoured to determine a decisionmaker’s “real reasons”. In a two-to-one majority verdict, the Full Court found that Dr Harvey was motivated by an unconscious reason, and that adverse action was taken against Mr Barclay by reason of his union activities.

The recent High Court decision overturns the finding of the Federal Court, and rules that the Courts should base their decisions on the evidence presented to them, without trying to discern the “unconscious state of mind” of the decision-maker.

The Chamber welcomes this decision, which is a victory for common sense. We should not forget that employers still face a legal hurdle, with the “reverse onus of proof” requiring them to prove that adverse action was not taken for a prohibited reason. However, the High Court has confirmed that a decision maker’s direct testimony as to their ‘particular reason’, if reliable and accepted, is sufficient to discharge the burden on the employer.

The High Court’s unanimous decision ends a period of great uncertainty in this area, and provides some assurance to employers that they will be able to successfully discharge the reverse onus of proof in adverse action claims.

A critical requirement for employers is to make sure that there is evidence that decisions are taken for the right reasons, and that it is documented at the time of dealing with the employee and that the evidence is preserved.

The ACT & Region Chamber of Commerce & Industry has a long history of providing advice and support to employers on a wide range of Workplace Relations and Human Resources issues

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P RO P ERT Y YOUR MONTHLY LOOK AT PROPERTIES AND PROPERTY RELATED INDUSTRIES IN THE ACT

WHEN IS A HOME NOT A HOME?

WHEN SELLING YOUR BUSINESS...

BACK PAGE COMMERCIAL PROPERTY...

Bendigo Bank explains

Patience is the key

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Make the Move...

C

anberra has gone through rapid growth and urban sprawl over the past 10 years. In particular Canberra’s north has undergone significant change and has seen a shift away from the traditional urban centres of Civic, Belconnen, Woden and Tuggeranong, as home owners and investors look for lifestyle benefits and opportunities associated with new suburbs being developed across the ACT. Best practice urban planning by local government, in tune with the needs of community stakeholders and residents, has led to the emergence of suburbs such as Casey in the north of Canberra, designed to bridge the gap between high density urban living and community based suburban living.

The suburb of Casey, located in north-west Gungahlin, is a master planned suburb you’ll be pleased to call home. Filled with quality homes and perfectly located only minutes from shopping, schools and recreational facilities. Picturesquely located, the vision for Casey is built on bringing you a complete community that nurtures traditional

family values - offering residents a better work / life balance. So you can spend more time doing what you like instead of commuting!

Casey offers everything a growing family could possibly ask for; proximity to the Gungahlin & Belconnen shopping precincts, quality schools, sporting facilities, walking & riding trails and transport facilities.

First class amenities and transport facilities are set to place Casey at the forefront of Canberra’s newest suburbs.

Plans for the proposed Casey Shops include, retail and commercial outlets, arts & community centre, indoor sports centre, child care facilities and licensed club ensure you will have everything you need to make your day-today life easy and enjoyable.

“Casey will be more than a beautiful location – it will be a vibrant community and a great place to live”.

Make Casey a Reality...

L

ocated in the heart of Casey are the landmark Berwick Apartments. This boutique development spanning three levels, offers contemporary and comfortable living spaces that emphasise design and quality. The Berwick Apartments are ideal for those wanting all the benefits of easy care low maintenance living and the lifestyle benefits of being in close proximity to great shops, schools and transport facilities.

The Berwick Apartments occupy prime position, opposite the proposed Casey Shops and soon to be completed Horse Park Drive extension. The Casey Shopping Village is earmarked to be the only one of its kind and set new benchmarks as an alternative to the major shopping precincts of Belconnen & Gungahlin, offering access to great clubs and restaurants whilst maintaining the convenience afforded by local shops. With access to public transport facilities at your doorstep, the Berwick Apartments truly has everything at your fingertips.

The concept behind the Berwick Apartments is to set the highest standards of excellence while offering unparalleled affordability.

Combining contemporary fittings and finishes and well proportioned living areas to create an outstanding sense of space. If you’re looking for an easy care, high quality apartment positioned for convenient urban living, or a high demand investment property, the Berwick Apartments provide the perfect opportunity. With construction having already commenced and completion scheduled for September 2012 – act now to secure your place with Casey’s ground breaking development. For more information, please visit www.berwickapartments.com.au

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Nick Ryle is a property consultant at Ray White Kingston. Unit 1, 28 Eyre Street Kingston. T:6173 3000. nick.ryle@rwcanberra.com.au

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B2B PROPERTY

WHEN IS A HOME NOT A HOME? PERHAPS WHEN IT’S A PROPERTY.

T

he property market is different things to different people. For some the need to keep a roof over the head of self and family is paramount, for others it’s the thrill of investing and even more frequently as DIY mania spreads through the community, the concept of flipping houses for fun and profit is the inspiration.

The old adages about the home being the castle no longer resonate with the same level of certainty in darkest domestica Australiana.

The Great Australian dream can rapidly become a complete nightmare as the ravages of costs, charges, taxes and interest rates, all seriously outside the control of the average punter, impact with increasing regularity and higher levels of uncertainty. For many, owning property is also a major stress factor.

I personally believe that the great Australian dream can be affordable and that options should be available to ensure that all citizens are housed in comfort and safety.

Property may be a great investment but it is first and foremost a home.

Recent changes to the way the ACT Government proposes to collect rates show that it is possible to be creative and make life simpler for the average citizen. Under the proposed new arrangements 37,000 homeowners will pay significantly lower rates and over the coming years’ rates will rise by around $2.50 a month. Stamp duty is being phased out. This is a significant benefit to those entering the property market especially as stamp duty is reduced. Given I have three children who will be entering into the market

at some stage it seems sensible, and also a matter of social justice, for me to pay a little extra so that my kids, and yours, have an easier entry into home acquisition. Local Government cannot control international forces impacting the economy, but it is great that we have changes which, far from tripling rates, will actually change the focus of revenue raising.

That being said we need developers and builders, people ready to invest in the community as well as the market to ensure that housing stock is adequate and that prices are kept within reason. None of this is an easy balance. There is also a need for low cost and community housing so that the scourge of homelessness is minimised to the greatest extent possible. The ACT has done rather well, in recent years, from the period in 1997 - 2001 when 1100 of the community housing stock was sold off by the the previous government (600 of which were not replaced) re generation of stock has moved apace so that we currently have the highest ratio in the country of government to private housing (8%). Importantly there have been moves to ensure that appropriate seniors accommodation and half way houses for citizens with special needs has also grown apace. Canberra is a diverse community but ultimately we are a community that cares about our fellow citizens. We can always do more and although an increase of a thousand houses in the last 11 years is something to be proud of the waiting lists are still not as short as we would like.

One of the difficulties of Government

is achieving balance between competing needs and sometimes demands. The latest changes to the tax laws, despite some of the fear mongering, mean that for people entering the housing market, costs are reduced and that ultimately the burden is shared. Personally I doubt that in the future the traditional sources of Government revenue will be sufficient and I look forward to a time when we can generate greater community income from innovative practices in business, education and industry so that general services become more affordable through strategies designed to increase our sustainability profile.

Governments around the country could partner with Community focused and proven philanthropic corporate like the Bendigo Community Banks to create community assets in the community without having to tax to pay for it. The Partnership announced in September by Minister Burch, between Canberra’s Bendigo Community Bank Branches, West Belconnen Health Co-Op and the ACT Government to deliver a Bulk Billing Health Co-Op in Chisholm early next year is an example of just such collaboration. We can also build on the domestic and export value of our marvelous tertiary education facilities and create employment opportunities and export potential through greener jobs in a carbon neutral and sustainable economy. I do believe in dreaming big, but that can only become reality when combined with working hard. The future of Canberra has never looked brighter.

Jayson Hinder is Chairman of Molonglo Financial Services MFS operate the Calwell, Curtin, Jerrabomberra and Wanniassa Bendigo Community Bank Branches.

Calwell, Curtin, Jerrabomberra and Wanniassa Community Bank Branches

CAN WE BUILD A NEW HOME FOR UNDER $449,000?”

RIGHT NOW AT SPRINGBANK RISE, YOU CAN. Steve Harding, Project Director, Lend Lease

This August, make buying a home easier with Lend Lease. And with home and land starting from under $449,000, now is the time to preview our newest land release at Springbank Rise. Chat one-on-one with one of Lend Lease’s team of experts from home coaches to local mortgage brokers, they can help you find the perfect home to suit your family’s tastes and budget. If you have a question about home buying, our experts will have the answers.

Visit springbankrise.com.au or phone 1800 929 466 and register to make a time to chat with one of our experts today.

Sales and Information Centre Yeend Avenue, Springbank Rise Casey, ACT 2913 1800 929 466 springbankrise.com.au Lend Lease Financial Services Products Pty Ltd ACN 003 442 000. Credit Representative Number 418823. Credit Representative of Australian Finance Group, Australian Credit License Number 389 087.

B2B PROPERTY

PATIENCE IS THE KEY TO SELLING YOUR BUSINESS

Jason Klose, Managing Director t: 0414 890 286 jason@bbbrokers.com.au www.bbbrokers.com.au

S

elling a business and selling a house is like apples and oranges – they cannot be compared to each other. However a lot of buyers and sellers approach business sales as if they are one in the same.

Statistics show that real estate agents sell 8 out of 10 houses they list. Whilst for business brokers this number reduces to 3 out of 10. To take it one step further, if a business owner lists their own business for sale this ratio moves to 1 out of 10.

So why is there is such a difference? The three main factors I see are finance, price and patience.

Finance: Obtaining finance for a house is much easier than obtaining finance for a business. Banks have strong processes in place to allow money to be loaned on a house and hence their level of comfort is easier to meet. However when it comes to business

loans, the level of information required and understanding the bank requires can take some time. Then there is the equity you need put against the business loan as in a majority of cases the bank will not loan against the business.

Price: Most buyers and sellers can look at past house sales to determine the sale price for their house. But for businesses, you can have two very similar businesses, but the price can vary substantially.

For sellers of businesses it can be hard to put a value on their business as they have put a lot into it emotionally and financially. So it important to come to common ground so both the buyer and seller agree the price is fair.

Patience: The movement of house sales can occur very quickly and it not hard to see the under offers on properties you seen only listed a month ago. A seller of business see all the under offers on houses and think the same occurs for business. Business sellers must understand they are trying to find buyer in a much smaller pool of buyers, who have finance approved and agrees that the price for your business is fair.

It is a large decision for a buyer to understand the business the business owner has built and be confident they can continue to experience the success already enjoyed. Business still sell but at a much slower pace to houses – so patience is the key to ensuring it occurs.

Businesses are selling and all it takes is one buyer to make this happen. But be patient when it comes time to sell as takes time to educate the market why your business is the one for them.

NORTHSIDE SUPERMARKET

ICONIC QUEANBEYAN RESTAURANT

This award winning express supermarket ticks all the boxes you require for a strong supermarket business: • Excellent weekly turnover averaging $96,000.

• Well established with catchment base of 10,000 people.

• Gross Profit Averaging 21.8%.

• For 2012 owners profit over $300,000.

• Business still strong during the GFC • Landlord has confirmed new strong lease to be provided to new owner.

• Equipment all well maintained and regularly serviced.

• Owner chooses to work by choice but not necessary as strong systems in place.

If you have been looking for a profitable restaurant, with minimal owner involvement and includes a near new fit out of the whole premises, this is the restaurant you have been looking for. This restaurant has traded under the same name for 35 years in Queanbeyan and very iconic with both Queanbeyan and Canberra.Some of the features this restaurant offers: • Very little owner involvement.

• Turnover always increasing.

• Profitable.

• Reasonable rent.

• The premises has completed been refitted with new kitchen, seating area, bathrooms.

• For 2012 with little owner involvement, the owners return was $210,000.

Sale Price $1,485,500 + SAV

CABINET LOUNGE BAR $500,000 fit out and selling the business for $165,000.

This lounge bar multi facet business which operates as a bar / restaurant.

Recently has been catering for private events and only opens Thursday, Friday and Saturday nights.

Sale Price $165,000

Open to Offers. Negotiable.

HEATING COOLING PRODUCTS CANBERRA LEADER Very strong business that has been in Canberra for over 35 years. Owner Return 2012 $300,000 - Very Strong Business. Fit out worth $500,000.

Owners want to retire.

Sale Price $545,000 + SAV

Contact Jason Klose on 0414 890 286 for more information or visit www.bbbrokers.com.au

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take your pick‌

from more than 75 1, 2 or 3 bedroom, modern, fully appointed & self-contained serviced apartments.

At significantly better rates than traditional hotel accommodation, Accommodate Canberra provides you with the freedom of the home away from home experience, whilst providing loads more space, convenience, and total privacy.

Ph 02 6295 9430

Kingston, Manuka and the City. Accommodating you!

enquiry@accommodatecanberra.com.au www.accommodatecanberra.com.au

BerrySmith Acc B2B April 2012

Accommodate Canberra offers a personal corporate or leisure experience in some of Canberra’s most sought-after locations.

Commercial

Duffy 10 Duffy Place Unique Opportunity for Owner Occupier

•

Two storey building located in the popular Phillip precinct

Sale

Clinic - 60m2*; treatment rooms, View By Appointment reception, storage & amenities

•

Fully tenanted with 5 yr lease over both levels

View By Appointment

•

Studio - 30m2*; a/c, spacious, currently used for yoga classes

•

Gross income of $143,094pa, with 4% increases

•

Suitable for office, health & professional services. Take as one or separately

•

Fantastic Opportunity

• •

Fantatsic clinic & studio located at the Duffy Shopping Centre

Sale/Lease

Phillip 52 Colbee Court Opportunity to Invest - Fully Leased Building

By Negotiation

John Price 0412 266 194 6162 0681 rwcanberra.com.au

By Negotiation John Price 0412 266 194 6162 0681 rwcanberra.com.au

Commercial

Commercial

Canberra

Canberra

Phillip 68-70 Dundas Court Fully Leased Investment Opportunity

Sale

•

Approximately 691m2* NLA

•

Net annual income: $147,000*

•

Two long term secure tenants

View By Appointment

•

Onsite parking at rear

Troy McGuinness 0413 499 735

By Negotiation

6162 0681 rwcanberra.com.au

Hume 28 Sheppard Street Great Warehouse - Hume

Sale

•

500m2* high clearance warehouse, separate office

•

Loading dock, roller door access View By Appointment and wash bay

•

Truck access & large hardstand land

POA

John Price 0412 266 194 6162 0681 rwcanberra.com.au

Commercial

Commercial

Canberra

Canberra

Commercial Kingston 15 Tench Street ‘Griffin Hotel’ Rare Commercial Space • • • • •

Unit 1 to 4 - 588m2*, high quality office suite Unit 5 - 54m2*, leased to Hairdresser Unit 9 - 218m2* Restaurant, vacant possession with 66m2* outdoor area Sold separately or in one line 84 bay public car parks on site

•

Each unit has an additional on site park

Sale

By Private Treaty View By Appointment Andrew Smith 0409 600 471 6162 0681 rwcanberra.com.au

Commercial Canberra

Barton 11 National Circuit Premium Office Unit - Engineering House • • • •

Unit 17 - 305m2* + 7 car parks Currently leased at $140,993* plus GST per annum Features high quality fitout Suitable for professional services * Approx

Sale/Lease

By Negotiation Andrew Smith 0409 600 471 6162 0681 rwcanberra.com.au

Commercial Canberra