B2B July issue 84 2013 by B2B magazine

DEFENCE AWARDS LOCAL EMPLOYERS Reserves employers recongised for their support

SYNERGY BUSINESS CENTRES Could they be the address of your business?

GOVERNMENT CHANGES TO SUPERANNUATION Good news from the 2013 Federal Budget JULY 2013

Canberraâ&#x20AC;&#x2122;s centenary law firm

FAMILY LAW

PRICE IS RIGHT

FGD explains why it's not depressing

RSM explains how to set the right price

YOUR PLAN 'B' TO RBT

POST EVENT ANALYSIS

What about a 'dial-a-driver'?

What has this got to do with Warren Buffet?

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CONTENTS Left to right EMPLOYER OF THE YEAR 2013 Private Sector, Large Business Category - Mr John Shearer, ADT Security, Lance Corporal Justin O'Keeffe, EMPLOYER OF THE YEAR 2013, Private Sector, Medium Business Category - Mr Michael Halewicz, Slaven Mazda, Private Christopher Nipperess, Mr Philip Moss (Chair of the Defence Reserves Support Council – ACT & SE NSW), Corporal Daniel Keighran, VC, Member for Canberra, Gai Brodtmann MP EMPLOYER OF THE YEAR 2013 Public Sector - Corporal Adam Barlow, Rear Admiral David Johnston, Mr Roman Quaedvlieg, Australian Customs and Border Protection Service - EMPLOYER OF THE YEAR 2013 Private Sector, Small Business Category - Private Timothy Burgess, Mr Ray Galvin, Cooma Mobile Mechanics.

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B2B EDITORIAL

Leading local employers recognised at National Reserves Employer Support Awards TIM BENSON Editor

I recently was appointed to the Defence Reserves Support Council - ACT & SE NEW and am dedicating this months editorial to the recent awards.

Four exceptional local employers have been recognised for their support of Australian Defence Force Reservists at the National Employer Support Awards Dinner held recently (Thursday, 13th June 2013) at ANZAC Hall at the Australian War Memorial. Representing the Parliamentary Secretary for Defence, Senator David Feeney, at the award ceremony was Member for Canberra, Gai Brodtmann MP. Ms Brodtmann thanked the winners for the outstanding support provided to employees who choose to serve in the Reserves. “Your contribution to national security and the national interest is greatly appreciated,” Ms Brodtmann said.

Guest speaker at the awards ceremony was Victoria Cross for Australia recipient and Army Reservist, Corporal Daniel Keighran, VC. Corporal Keighran joined the Australian Army in 2000 and transferred to the Active Reserve in 2011, at the same time beginning a civilian career in the mining industry in Kalgoorlie, Western Australia. In November 2012, he became Australia’s 99th recipient of the Victoria Cross. The award winners joined with military personnel on the night to hear Corporal Keighran speak about his experiences as an Army member, a Reservist and a civilian employee. Ms Brodtmann presented Employer Support Awards to the four Australian Capital Territory and south-eastern New South Wales businesses. ADT Security, Slaven Mazda, Cooma Mobile Mechanics and Australian Customs and Border Protection Service were recognised for their continuing support of Reservists. The 2013 ACT & SE NSW Employer Support Award winners are: • Small Business Cooma Mobile Mechanics • Medium Business Slaven Mazda • Large Business ADT Security • Public Sector category Australian Customs and Border Protection Service.

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CONTENTS OPINION 10 Family law...depressing?

With Farrar Gesini & Dunn

FEATURES 12 Combat the rising cost of doing business with

a better pricing strategy with RSM Bird Cameron

14 Could they be the address of your business? Synergy Business Centre

COVER STORY 17 Elringtons; Canberra's centenary law ﬁrm 22 ADVICE FROM THE EXPERTS 23 ACCOUNTING Government changes to superannuation By RSM Bird Cameron

BUSINESS LAW Landlords and the PPSR - are you protected? By Elringtons Lawyers 24 BUSINESS RELOCATION Relax while we carry the load By Allied Pickford's Business Relocations CORPORATE GOVERNANCE NFP governance principles By Australian Institute of Company Directors

26 DOCUMENT MANAGEMENT Why it pays to go carbon neutral By Ricoh ESTATE PLANNING Planning for loss of capacity in SMSFs By Certus Law 27 SERVICED OFFICES Flexible Workspace By Synergy Business Centres

28 HEALTH Health is everything: do the things you like doing By Healthy Identity RECRUITMENT Staff retention By PCA People 29 RISK MANAGEMENT Post event analysis – the key to learning from what goes wrong By Paladin Risk Management Services A2B: ASSOCIATIONS TO BUSINESS 30 MINISTERS MESSAGE: Planning for the future 32 CANBEERA BUSINESS COUNCIL: Bring on the election 33 ACT EXPORTERS: Exporting success in the ACT 34 ACT & REGION CHAMBER OF COMMERCE & INDUSTRY: A new era begins BUSINESS NETWORKING 06 B2B @ ACT/NSW Defence Force Reserves Support Awards Dinner 07 B2B @ B2B June Issue 83 Launch 08 B2B @ RSM Bird Cameron Growing Your Business Seminar 09 B2B @ Canberra City Band Book Launch 36 PROPERTY 37 BRINDABELLA BUSINESS BROKERS Make it easy for the buyer if you want to sell your business

37 PUBLISHER I EDITOR

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

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ISSN 1833-8232 LEGAL NOTICE Man Bites Dog Public Relations (‘MBD’) owns the copyright in this publication. Except for any fair dealing as permitted by the Copyright Act 1968 (Cwth), no part of this publication may be reproduced without the prior written permission of MBD. MBD has been careful in preparing this publication, however: it is not able to, and does not warrant that the publication is free from errors and omissions; and it is not able to verify, and has not verified the accuracy of the information and opinions contained or expressed in, or which may be conveyed to readers by any advertisement or other publication content. MBD advises that it accepts all contributed material and advertisements contained in this publication in good faith, and relies on various warranties and permissions provided to it by the persons who contribute material and/or place advertisements. Those warranties and permissions include that neither the material and/or advertisements are misleading, deceptive or defamatory, and that their use, adaptation or publication does not infringe the rights of any third party, or any relevant laws. Further, MBD notifies readers that it does not, nor should it be understood to endorse, adopt, approve or otherwise associate MBD with any representations made in contributions and/or advertisements contained in the publication. MBD makes no representation or warranty as to the qualifications of any contributor or advertiser or persons associated with them, and advises readers that they must rely solely on their own enquiries in relation to such qualifications, and be satisfied from those enquiries that persons with whom they deal as a result of reading any material or advertisement have the necessary licences and professional qualifications relating to the goods and services offered. To the maximum extent permitted by law, MBD excludes all liabilities in contract, tort (including negligence) and/or statute for loss, damage, costs and expenses of any kind to any person arising directly or indirectly from any material or advertisement contained in this publication, whether arising from an error, omission, misrepresentation or any other cause.

B2B @ ACT/NSW DEFENCE FORCE RESERVES SUPPORT AWARDS DINNER AUSTRALIAN WAR MEMORIAL

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OPINION

Family Law… depressing? By Dara Isaacson , Farrar Gesini Dunn

ow many times has this happened to you, you’re at a party with people that you are meeting for the first time, or you are having a quiet after work drink and you meet someone new, or your new hairdresser is making polite conversation with you, or you are even standing in line at the supermarket making small talk with the person next to you, and you are asked the question “so, what do you do?” In a town such as Canberra where a significant percentage of the population work for the government, and people do have fascinating jobs, it’s a question I get asked when meeting someone new (sometimes even before I get asked what my name is) almost daily. What do I do? …I’m a Family Lawyer. This is how that conversation usually goes for me: Newly introduced Person X: So, what do you do? Me: Well, I am a Collaborative Family Lawyer. I then watch as Newly Introduced Person X contemplates this. Usually there is a small pause and then a look of slight puzzlement, which is followed by “wow. Isn’t it hard? That must be so depressing”. Sure, people’s automatic reaction to family law is that it is depressing and messy and traumatic. And of course I am not pretending that it cannot be. The Family Court has been referred to by one particularly astute observer as “the Court where they shot the survivor”. Of course there will always be a need for Court intervention in some family law cases. However, as a Collaborative Family Lawyer I have seen that family law can also be about

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rebuilding relationships and separating couples working together for the good of their children, which serves them well in the years to come as they will inevitably see each other at birthdays, graduations, weddings and other important milestones. Collaboration is a process whereby both parties and their lawyers agree not to go to Court. In fact, the parties and their lawyers sign a contact saying that they will not go to Court and instead of employing lawyers to fight for them in Court they are employing their lawyers to help them reach a settlement. It is a process whereby instead of focusing only on what your legal rights are and what you can do to ‘screw the other party over’, it focuses on your interests and goals. It is also a process whereby solutions can be achieved which are, unlike what a Court often orders, not zero sum solutions. For example, in a recent Collaboration the parties’ main non-superannuation asset was a house which the wife was living in with the two school aged children. In this case both parties had significant superannuation entitlements. Both parties agreed that the Wife should keep the house because it was important to both parties that the children not be required to move until they finished school. However, the Wife would need to make a payment to the Husband in exchange for the transfer of the home to her name. The problem was that the Wife did not have enough borrowing capacity to pay the Husband out. If this matter was being adjudicated before the Court, it is likely that the house would need to be sold. However, because the parties had agreed to settle their matters via Collaboration, they had many more options

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available to them that would not have been what a Court would likely have ordered. In this case the Wife was 35 years old and therefore would not be able to access her superannuation entitlement for some time. However the Husband was nearing the age of retirement, and therefore the age when he could access superannuation. Therefore, it was agreed that a larger share of the Wife’s superannuation would be split to the Husband in exchange for less of a cash payment to the Husband from the Wife. And the Wife would therefore be able to keep the house. By working together in a Collaborative space the Husband and the Wife were able to increase the amount of assets available for distribution now by splitting the superannuation into the Husband’s name. Ultimately, an outcome such as this where the parties were not faced with telling the children that they would have to move (and Mum probably blaming Dad, and Dad probably blaming Mum), but instead were able to tell the children “Mum and Dad worked together to ensure that everyone is looked after” has provided this couple with a solid basis to work together in the future to co-parent the children. So, in short the answer is ‘no’, it’s not depressing…but maybe I should work on my spiel…Its hard to sum this up at a cocktail party… 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

F E AT U R E

Combat the rising cost of doing business with a better pricing strategy

any Australian businesses are struggling with the rising costs of inputs such as fuel and electricity. These challenges are making it harder for businesses to compete. RSM Bird Cameron, one of the largest mid-tier accounting firms in Australia, offers advice on how a better pricing strategy can help organisations stay ahead of rising business costs. Andrew Sykes, director of business solutions at RSM Bird Cameron, said, “Having an effective pricing strategy can be the difference between stable profits and a business in decline. “Cost increases can only be recovered if a pricing strategy is flexible, regularly reviewed and can be adjusted quickly. Reviewing prices regularly reduces the need to make excessive price increases, which can damage customer relationships. It’s all about communication and managing expectations.” A pricing review doesn’t just mean increasing prices. Additional costs can sometimes be absorbed by bundling the offering differently or introducing new charges for certain transactions. Andrew said, “No matter what pricing strategy a business adopts, remaining transparent and communicating with customers about the need for price changes is critical.”

Four pricing strategies to improve profitability.

Keep other marketing elements current and up to date. Your reputation, image and branding should send a strong signal that reinforces your price. If your image reflects high quality, customers will expect to pay more.

Vary price for different market segments. Some segments will place a higher value on your service than others. Their perception of value will be determined by the need for convenience, what the service actually means to them and how important it is to meeting their needs. Where the perception of value is high you can look at charging higher prices. Also be aware of “over servicing” particularly where customers are not prepared to pay for additional things they don’t want.

About RSM Bird Cameron RSM Bird Cameron is the largest mid-tier accounting firm in Australia with national ownership and profit sharing and offers a full range of specialist advisory services, including business consulting and advisory, assurance and advisory, taxation consulting, corporate consulting and turnaround and insolvency. For more information on any of the strategies discussed here, please contact Andrew Sykes on andrew.sykes@rsmi.com.au or 6217 0333.

Know your costs but associate your price with added value. A “cost plus margin” pricing model gives you less room to adjust prices in a competitive market. However, a stronger perception of value in a customer’s mind gives you more potential for increasing prices. Understand the value of what you are offering and the dynamics of your market as well as your key differentiators such as service levels and competitive advantage. Additional costs can sometimes be absorbed by bundling your offering differently or introducing separate charges for some transactions.

Revise price regularly to reflect market changes. Businesses that are not flexible or responsive to changing industry conditions and market forces feel the impact first. Identify the key indicators that influence your profit margin including direct costs such as fuel, wages, maintenance and subcontractors. Regularly monitor these to ensure that the prices you charge maintain your margin. When costs change, communicate these openly and build support for price increases. The more customers understand your cost pressures the less shocked they will be by price changes particularly when you want to maintain current service quality levels. 12

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With RSM Bird Cameron you really are… Connected for Success. (02) 6217 0300

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F E AT U R E

Synergy business centres could we be the address of your business? We understand the Canberra business market and realise that there are thousands of very successful businesses operating from homes and coffee shops in the ACT and across the nation.

ut there is another cost effective alternative that can provide you with the same flexibility and give you an alternative to holding your meetings at home or in public places – and also give you the opportunity to expand and test new markets in Australia and throughout the world. In today’s ever changing business world, to be competitive you need to control costs and retain the flexibility to react swiftly to customer demands. Our office business centre allows you to preserve the individuality and character of your company, without the high costs of establishing an independent office. We provide you with a total office solution in a professional environment, and control your costs by only providing the services you need. Our adaptable leases give you the flexibility to grow or reduce your executive office space as the business demands.

What’s Included The Benefits for your organisation

Instant occupancy

Avoid substantial start-up costs and delays you get with conventional space

Immediate IT & phone connectivity using CAT 5e cabling

Wherever possible appropriate technology is used to Maximise flexibility and decrease space and power requirements. Cabling facilities to the desktop allows for ready changes in cabling requirements. Communication points are provided in areas such as meeting rooms for flexibility and function.

Building & facilities management

No need to worry about cleaning and building maintenance

Your serviced office solution

Staffed reception

You won’t need to employ reception staff or buy a switchboard system

When you take an executive serviced office with us you receive:

Personalised phone answering

A professional welcome with every call creates the right impression

Admin and secretarial support

No need to search for a temp when you need something done

Fully stocked kitchens and break out area

Somewhere to eat lunch or have an informal catch-up

All inclusive monthly payments

Peace of mind and the ability to budget with confidence

Meeting rooms

Impressive meeting rooms of different sizes available onsite on a pay-as-you-use basis

24 hour access & security

You can come and go as you please

Fully furnished serviced offices

No need to fit out and build offices and meeting rooms

• A fully equipped and furnished serviced office suite • Competitive rentals on flexible lease terms – from a day, a week, a month and any lease term to 12 months • A professional business address • A team of professionals available to support your business in the manner you require • Services designed specifically to meet your business needs. Whether you require a single person office or a configuration to accommodate 50, our centres provides you with a professional, attractive corporate executive office space to suit you specific needs – today and in to the future.

What’s in it for you?

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F E AT U R E

Our Purpose

“To be the address of your business.” Your business requires an address and a place, “My Place of business” from a serviced office a place to have a meeting or simply a virtual serviced offices – the perfect office solution for any size business.

Our History

Founded in 2004 Synergy is a proudly Australian owned and operated company. From humble beginnings, where John noticed a dearth of suitable office space for small businesses while building a cleaning company, Synergy now boasts 11 locations, with more being developed.

Our Spirit Virtual Office Suites

Ultimate freedom at an affordable cost Are you just starting a business? On the road all the time? Need an interstate office? Need multiple locations? Want the benefits of an office without the high costs? Then you need a virtual office suite from Synergy Business Centres.

Fun, Unified, Smart, Energetic & Diligent – and that’s what we bring to our company. Every detail of our culture is fused – from our people, to our products, to the places we help you conduct your business

Virtual office suites are great for Small and home-based business looking for an image enhancing address and a front line team to manage calls and mail, or a growing business looking for risk-free expansion into new markets.

Our People

Benefits at a glance: • A low-cost alternative to full-time office • A great address and image for your business • A professional place to meet with clients and colleagues • A fully trained call handling team so you never miss a business call • Print, copy and faxing service at every Synergy location • Pay-as-you-go access to admin and PA support • Reception and concierge service, such as organizing couriers, arranging travel and hotel bookings

Our Product

Please contact me to discuss a solution that will meet your business needs. Robert Okulus, Area Director robert.okulus@syn.net.au p 1300 476 946 Level 6, 39 London Circuit, CANBERRA CITY, ACT 2601 Units 1 to 4, 8 Jardine Street Kingston ACT 2604

Our team members are proud, passionate and empowering people, dedicated to providing you only the highest quality service for your business. Don’t need a large office? Don’t want the commitment or expense of full-time employees? Let us handle it all for you, from serviced offices to meeting facilities, virtual serviced offices, meeting rooms, board and conference rooms, memberships and even franchising opportunities.

Our Place

Professional office suites right where you need them – in the heart of business districts all over Sydney, Canberra and Wollongong. Have the image without the associated price – and excite those hard-to-impress clients!

Our Price

At Synergy Business Centres we strongly believe that by providing a total office solution at competitive rates, you are left to concentrate on what is important to you, and what brought you to us in the first place: your business.

Our Promise “My Place of Business”

Synergy Business Centres are proud to play a part in the success of your business – our quality services, combined with our exceptional understanding of what our clients’ require, mean we can effectively accommodate their needs.

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COVER STORY

Canberra’s centenary law firm As Canberra celebrates 100 years, elringtons is one of the few local law firms that can lay claim to have travelled alongside Canberra in its 100 year journey towards the vibrant and exciting city that it is today.

n various iterations it has helped the communities of Queanbeyan, Yass and now Canberra since 1897. “This history and longevity is a source of pride for the elringtons team who work together today to deliver to Canberrans what their predecessors 100 years ago also strived to provide – solid, legal advice and assistance in a range of fields,” Matthew Bridger, elringtons Managing Partner, said. Canberra’s community has been treated with plenty of history in this its centenary year. “In looking back at elringtons’ foundations 100 years ago from the creation of the Australian Capital Territory, the implementation of Burley Griffin’s master plan, the laying of the city’s foundation stone to the building and creation of the city’s landmarks, many of us wonder about where the people came from to put the city together, what they worked on and whether they are still connected with us in some way today.” One group of professionals that contributed to the building of the city and serving its community to the present day is elringtons law firm. Its founder was Frederick Woodward, who, in addition to running a

busy law practice in Queanbeyan as Canberra’s staging post, was also elected as Queanbeyan’s mayor in 1913. Woodward ran a busy practice from an office in Queanbeyan during the major construction program of creating Canberra. With the establishment of a public service for the Federal Government in the ACT there was an influx of a new and permanent population which kept Woodward and other local solicitors busy in servicing the legal needs of the new city. Woodward went on to become a founding member and the first President of the ACT Law Society. After Woodward’s passing, Edwin “Rex” Boardman succeeded to lead the legal practice in Canberra and Queanbeyan and later in Yass from where the firm takes its present name. Over the years, these senior solicitors have gained and passed on their legal knowledge and wisdom to the next generation of lawyers serving Canberra and its surrounding region. It continues to pass on from the old to the new maintaining an unbroken chain of knowledge and wisdom to the next generation of lawyers who will serve this community.

COVER STORY

David Walters

Cassandra Emmett

Serving Canberra’s energy Canberrans travelling to Sydney may look at the iconic wind farming propellers with a sense of awe at the relationship between Mother Nature and mankind to service our clean energy requirements. But little thought is given to the complex legal framework that underpins these arrangements. Elringtons is privileged to have David Walters as a leader in its property team. David has practised law for over 40 years and was a partner at elringtons for nearly all of that time. He is a NSW Accredited Property Law specialist, and has built a niche practice in managing the relationship between wind farming companies and land owning farmers in the wider Canberra region. His colleague, Cassandra Emmett, is familiar with the concept of brokering legal agreements between farmers and the big end of town to install infrastructure on grazing or pastoral properties. Cassandra recently worked as a lawyer on the National Broadband Network installation, across farms and aboriginal land, in the Northern Territory. “Working with David on the wind farm negotiations is a challenging and exciting prospect. These land sharing arrangements go for long periods of time, twenty to thirty years, and must contemplate all scenarios and outcomes so that farmers are not at a disadvantage,” Cassandra said. Cassandra is fortunate to have David guide her through the intricacies of NSW land law and his experience in wind farm negotiations, and to continue the strong relationship between elringtons and NSW farmers that has been established over the last century.

Shalini Sree

Dan Kelly

Serving Canberra’s businesses Cassandra Emmett is also working with younger professionals and fosters them in the areas of property and business law. Shalini Sree is one of elringtons’ lawyers benefiting from Cassandra’s experience. Shalini Sree was admitted as a lawyer in December 2012 and whilst studying for her Masters, works with Cassandra in the elringtons Business Services team. She joined elringtons last year already with property law experience looking to branch out into more complex commercial and business work “Shalini is amazing, extremely enthusiastic, and always looking for the best outcome for her clients,” Cassandra said.

Peter Murphy

Darren Carden

Serving Canberra’s property Peter Murphy has over forty years experience as a lawyer in Canberra and has been a mentor to many at elringtons for the past 15 years. He has close ties to regional Councils and is a trusted commercial and property law advisor to local Councils, national organisations and businesses. Peter’s junior colleague Darren Carden also brings local government experience to elringtons, having worked at a large local council in Adelaide. Darren moved to Canberra to broaden his property law experience and is keen to draw on Peter’s decades of wisdom. “Traditionally in law, the old teach and guide the young – in Peter and Darren’s case, wisdom and experience are shared. Elringtons are living and breathing this tradition by fostering partnerships of old and new,” Matthew Bridger, elringtons Managing Partner, said proudly.

COVER STORY

Serving Canberra’s conveyancing One team member who doesn’t need his hand held is experienced conveyancer Dan Kelly who heads up elrington’s Conveyancing team. Daniel has practiced in conveyancing for over 10 years and knows the ACT and NSW residential property jurisdictions inside out. He prides himself on providing silver service. Tanya Corneliusen works alongside Daniel having worked in the elringtons conveyancing team for as long as Daniel. She is calm and capable and clients know their property is safe in her hands. With Daniel, Tanya and their team it’s no stress and experienced property lawyers are on hand to complement their knowledge if something out of the ordinary arises.

Craig Painter

Will Atfield

Serving Canberra’s people The way Canberran’s have had to resolve their civil disputes has changed considerably over the years with government, at all levels drafting legislation to set out the rules as to how disputes should be managed and resolved. Elrington’s lawyers have been conducting cases in Canberra and its associated Federal and High Courts since the city was founded. They have moved with the times to find ways to resolve their clients’ interests in personal injury, compensation law, civil and commercial disputes. Craig Painter has been practicing law for over a decade and manages the elringtons Dispute Resolution Team. Craig has a background as a teacher and it is his knowledge and experience that has allowed him to mentor many practitioners and students. The youngest lawyer in the team is Will Atfield. Will was admitted to practice law 12 months ago but has been working at elringtons for almost three years. In addition to studying for his Masters, he has already conducted several personal injury and compensation cases and appears regularly in Canberra’s courts. Under Craig’s guiding hand, Will is fast developing the understanding that many legal problems often need a practical, commonsense approach. “Will was raised in regional NSW just outside of Canberra and his dealing with clients reflect his country values – values that we at elringtons strive to deliver on a daily basis.” Craig said.

Matthew Bridger

Kerin Cotchett

Estates Matthew Bridger has been practicing as a litigator with elringtons for 21 years and is now the managing partner. When he started with elringtons, his mentor was the former litigation partner of the firm, Jonathan Bell. “I learned from Jonathan that you develop expertise from experience particularly when it comes to going to Court and that acquired experience will show you that there is always more than one way to resolve a dispute between two warring parties,” Matthew explained. Matthew spent plenty of time in Court and found that Jonathan was right. In addition to becoming an Accredited Specialist in Personal Injury Law, Matthew developed expertise in will drafting, estate administration and estate litigation. Given its century long involvement with the city, elringtons has acted for tens of thousands of Canberrans and others in the surrounding region in their estates. “With the development of enforced saving through compulsory superannuation, the rise and rise of property prices, de facto relationships, same sex unions or second marriages, plus the Canberra community generally being more sophisticated in its business dealings, estates have become increasingly large, valuable and complex,” Matthew stated. Kerin Cotchett, who has been with elringtons for over two years, is tapping into Matthew’s experience and wisdom. Kerin works alongside Matthew in assisting clients administer estates and advising on estate claims. Kerin brings his own ‘wisdom’ of generation Y in providing clients with advice on dealing with estates. “Kerin’s refreshing views, as a member of the younger generation of lawyers on dealing with families who have lost a loved one, or on how to mediate between disputing parties, has resulted in many clients specifically asking for Kerin to find a quick and cost effective resolution to their claims,” Matthew said. Kerin is aware of the need to get estates administered as quickly as possible and he has now reached a point in his acquired experience where he can get grants for the administration of estates in the ACT and NSW in record time. He continues to work alongside Matthew in the contentious estates acting for executors defending claims and beneficiaries who, through no fault of their own, have been unfairly dealt with.

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COVER STORY

Elringtons offers the next generation of lawyers to stand by Canberra as it comes of age.

Kirsty McLeod

Serving Canberra’s family law and immigration clients The Elringtons Family Law Team is headed by Kevin Robinson and Carlos Turini (Partner). Carlos Turini has been practicing as a solicitor for 28 years and combines two passions in his practice, namely: family law and migration law. He has been a family lawyer since 1988 and is an Accredited Specialist in Family Law. Kevin has over 20 years experience in legal services. Prior to joining private practice, he was Acting Deputy Protective Commissioner and Director Client Services with the New South Wales Attorney General’s Department. Two other solicitors, Kirsty McLeod and Leroy Dickson, make up the team of experts in family law. Kevin and Carlos work closely with each other and with the younger practitioners, Kirsty and Leroy as a tight, efficient group on different aspects of files to provide maximum service. The vast majority of family law disputes settle without going to court which is the desire of most clients. The elringtons team recognise their clients’ needs and attempt to resolve disputes amicably without compromising strong advocacy in those cases which must be litigated. In addition to his family law expertise, Carlos is a Registered Migration Agent (MARN 1001381) with the Migration Agents Authority. 20

J U L Y 2 0 13

B2b M AGA ZINE

Kevin Robinson

Carlos Turini

Nannae Yoshiwara

Leroy Dickson

Carlos works closely in all migration matters with Nanae Yoshiwara, solicitor, who is also a Registered Migration Agent (MARN 0964316). Nanae combines her practice in migration law with a practice in the litigation team (commercial and personal injuries litigation). Nanae has been practicing as a solicitor for seven years. “Migration law is a complex area. There are hundreds of visa categories and sub categories, each with detailed, prescriptive legal and policy requirements. The visa requirements are constantly changing for numerous reasons including adjusting the entry of migrants to the needs of Australia at any particular time,” Carlos said. Carlos and Nanae work closely in all migration matters and combine and complement their knowledge and experience in migration law and their separate areas of expertise to represent their clients.

(02) 6206 1300 Level 7, 221 London Circuit, Canberra ACT Australia info@elringtons.com.au www.elringtons.com.au

“However beautiful the strategy, you should occasionally look at the results” - Winston Churchill

Are you ready for the new financial year? It is a great time now to stop and check your business strategy. One of the best ways to do this is to benchmark your business. Contact Rhys Kyburz to arrange your FREE benchmark report. rhys.kyburz@rsmi.com.au 02 6217 0311

rsmi.com.au

Connected for Success. Level 1, 103-105 Northbourne Avenue, Canberra ACT 2601

ADVICE 23 23

ACCOUNTING

BUSINESS RELOCATIONS

24 26 26

CORPORATE GOVERNANCE

SERVICED OFFICES

28 28 29

HEALTH

Government changes to superannuation by Michael O’Hehir, RSM Bird Cameron

BUSINESS LAW Landlords and the PPSR - are you protected? by Darren Carden, Elringtons Lawyers

Relax while we carry the load By Gary Green, Allied Pickfords Business Relocations

NFP governance principles By Phil Butler, Australian Institute of Company Directors

DOCUMENT MANAGEMENT Why it pays to go carbon neutral By Iain Heddle, Ricoh

ESTATE PLANNING Planning for loss of capacity in SMSFs By Stephen Bourke, Certus Law

Flexible Workspace By Robert Okulus, Synergy Business Centres

Health is everything: do the things you like doing By Robbie Manzano, Healthy Identity

RECRUITMENT Staff retention By Allison Guy-Ritchie, PCA People

RISK MANAGEMENT Post event analysis – the key to learning from what goes wrong By Rod Farrar, Paladin Risk Management Services

ACCOUNTING

By Michael O’Hehir

BUSINESS LAW

Government changes to superannuation

Some good news coming out of the 2013 Federal Budget is some extra red tape for Self Managed Superannuation Funds (SMSF) has been removed providing opportunities for those with tight cash-flows to continue making contributions via off market share transfers. SMSF Share Transfers The Government had previously announced that from 1 July 2013 you would not be able to contribute or sell listed shares you own to your SMSF. Instead you would have to sell the shares on the share market, bank the proceeds into your SMSF and then re-purchase the shares on the market. Legislation going through Parliament this month has had the part detailing the banning of off-market transfers removed. The proposal had originally been announced to commence from 1 July 2012. Lobbying by the industry including RSM Bird Cameron, and opposition by the Coalition, has helped see the proposal initially deferred for a year and now dropped. The legislation, in its first draft, would have caused SMSF trustees to contravene provisions of the Corporations Act. This was a significant surprise for the Government and eventually resulted in the issue being thrown into the “too hard basket”. The good news is that from 1 July 2013 SMSF members can continue to transfer shares into their SMSF via off-market transfers provided they are transferred at market value. Coalition Superannuation Proposals Due to key superannuation announcements being made ahead of the 2013 Federal Budget, no major measures affecting superannuation were reported in the Budget itself. However in Tony Abbot’s Budget Reply speech, he indicated that he would make changes to superannuation, if elected. Firstly, he intends to discontinue the low income superannuation contribution (LISC). The LISC is essentially a Government payment of up to $500 made to low income earners’ superannuation funds to offset the contributions tax the fund pays on behalf of the member. His reason for removing the LISC is that the Minerals Resource Rent Tax is not raising sufficient revenue to fund this measure (as originally intended). Tony Abbot also announced a proposed change to measures that have been legislated to incrementally increase the superannuation guarantee rate from its current rate of 9% to 12%. He stated in his Budget Reply that, if elected in September, he would seek to freeze the superannuation guarantee rate at 9.25% for two years.

By Darren Carden

Landlords and the PPSR are you protected?

The Personal Property and Securities Act 2009 (PPSA) came into effect on 30 January 2012 and has changed the way in which security interests in personal property are dealt with in Australia. Now all security interests, including contracts for the supply of goods, commercial equipment leasing agreements, hire purchase or lease finance arrangements and bailment agreements can be registered on the Personal Properties Securities Register (PPSR). In my previous B2B article I discussed Purchase Money Security Interests (PMSIs). This article considers the impact of the PPSA on landlords and the importance of including detail in PMSI registrations. Landlords: how are you affected? Real property and fixtures are excluded from the PPSA regime. However, security transactions involving leased premises may still be affected by the PPSA and mixed securities arrangements may require registration. If a landlord provides finance for a fit-out or plant and equipment OR provides a fit-out or plant and equipment to a tenant as part of a lease, and wants to ensure that the fit-out property is security for the finance or remains their property, they must register their interest as a PMSI on the PPSR. A failure to register an interest on the PPSR may result in the loss of the relevant property to a registered creditor or a liquidator, regardless of whether that property is “owned” by the landlord. It is also important when registering a security interest in fit-out property or plant and equipment as a PMSI on the PPSR that landlords ensure that a complete and accurate details of the fit-out property is recorded on the financing statement. The recent case of Carson, in the matter of Hastie Group Limited (No 3) [2012] FCA 719 demonstrated that a PPSR registration which does not accurately describe the property or has insufficient detail can easily fail. Justice Yates held that the administrators were justified in selling plant and equipment that was the subject of PPS registrations because the plant and equipment was not adequately identified. In this case the administrators gave the secured parties the opportunity to clarify their definitions of the property but despite advertisements and correspondence seeking information about the plant and equipment, 77% of the plant and equipment remained unidentified and was therefore sold. How can we help? Elringtons can assist with: • Staff training – registrations on the PPSR • Internal review – of all registered interests for and against your company • Document review – of your lease and security terms • Ongoing advice – on all PPSA matters

Bird Cameron

Chartered Accountants

For more information on the issues discussed here, please contact Michael O’Hehir on michael.ohehir@rsmi.com.au or 6217 0318.

Darren Carden Contact Elringtons T: (02) 6206 1300, Level 7, 221 London Circuit, Canberra City visit: elringtons.com.au

B 2 b M A G A Z I N E J U L Y 2 0 13

BUSINESS RELOCATIONS

Relax while we carry the load

by Gary Green

Is your business relocating? Allied Pickford’s is synonymous with business relocations management and corporate relocation services. We understand the wider issues, the need for careful planning, detailed project management and clear communication with your staff. Our experienced team takes total responsibility for your office or business relocations leaving you to concentrate on the day to day tasks of running your organisation. The process of relocating is more complex than most people realise. Due to business relocations being a relatively infrequent event for most organisations, people under estimate the time involved and the actions required. When you relocate with Allied Pickford’s we dedicate experienced business relocations Project Manager who is committed to your business relocations requirements. Our aim is to ensure a seamless and pain free experience for both your organisation and more importantly your staff. Eight reasons to choose Allied Pickford’s Business RelocationsProfessional Consultations- Our friendly and professional business relocations consultants have the experience and expertise to cater for all your requirements. We’ll listen to you and work in partnership to ensure a successful business relocation for your organisation. Pre Relocation Planning Assistance- You will be allocated business relocations Project Manager who will work with you to develop a detailed relocation schedule. Nothing is left to chance. From start to finish your business relocation will run like clockwork. Specialist Business Relocation Staff and Equipment- As the best business relocations company in the industry, you can expect nothing less at every stage of your business relocation. Professional Packing Systems- Our packing systems, procedures and equipment are a benchmark in the industry, all aimed at ensuring your goods are protected to the highest standards through the duration of the relocation. Safeguard Computer Protection-Your computers and peripherals are encased in anti-static preformed computer covers or bags and are transported in enclosed computer trolleys. High Security Storage- Allied Pickford’s safe and secure storage facilities are ideal for short and long term storage when undertaking a business relocation. Service- We are there when you need us. Reliability and responsive service are what we have built our reputation on. Experience and Expertise- Leave your business relocation to the experts. We have experienced and well trained staff who will have your business up and running with minimal disruption in the quickest possible time.

Gary Green can be contacted at Allied Pickfords Business Relocations on 0423806702. visit: www.alliedpickfords.com.au

J U L Y 2 0 13

B2b M AGA ZINE

CORPORATE GOVERNANCE

by Phil Butler

NFP governance principles

As part of our commitment to the NFP Sector and its directors the Australian Institute of Company Directors has developed the Good Governance Principles and Guidelines for Not for Profit Organisations. The Principles are designed to assist boards in determining what constitutes good governance practice for their particular organisation and to achieve better outcomes through good governance. It was recognised through an extensive consultation phase that the NFP sector was extremely diverse. This diversity reinforced the need for Principles which were not prescriptive, and most importantly they could be used differently as organisations mature and develop. A key aspect of the Principles and Guidance are questions for consideration which are designed to enable boards to consider the governance needs of their own organisation, rather than a “tick and flick” approach of recommendations. Ten Principles that promote good governance 1. ROLES & RESPONSIBILITIES The need for clarity 2. BOARD COMPOSITION The right group of people 3. PURPOSE & STRATEGY An appropriate vision, purpose and set of strategies 4. RISK Recognition & management appropriate risk oversight 5. ORGANISATION PERFORMANCE A focus on effective use of resources 6. BOARD EFFECTIVENESS Appropriate board structures and processes 7. INTEGRITY & ACCOUNTABILITY The right information at the right time 8. ORGANISATION BUILDING Build and maintain organisational capability to deliver on purpose 9. CULTURE & ETHICS A healthy culture in the boardroom and throughout the organisation 10. ENGAGEMENT Effective stakeholder engagement Another way organisations can use the Principles is by focusing on one Principle at a time over a series of board meetings. This approach would be more useful, in particular, for organisations where the directors were less experienced in governance issues, or had particular concerns around a particular issue.It is hoped that these Principles go some way to helping organisations understand what constitutes good governance, and how such governance can assist in overall performance They are designed to assist directors and boards in their conversations on good governance, and how they might practically approach improving governance outcomes. To see the Principles visit; http://www.companydirectors.com.au/goodgovernance

Phil Butler is Manager - NFP, Public Sector & ACT at the Australian Institute of Company Directors. Level 3 54 Marcus Clarke Street Canberra T: 02 6132 3200 | www.companydirectors.com.au

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B 2 b M A G A Z I N E J U L Y 2 0 13

DOCUMENT MANAGEMENT

Why it pays to go carbon neutral

By Iain Heddle

Ricoh Australia Pty Ltd have developed a carbon neutral printing service which will offset the greenhouse gas (GHG) emissions produced from the printing for qualified customers. Yes, it’s true: Ricoh will offset the GHG emissions from your printer for the term of its finance agreement. Recently Ricoh Australia announced that we have achieved an important milestone: to be a carboNZeroCertTM certified organisation. We are the first in our industry in Australia to achieve this status. It demanded many hours of measuring and auditing how we operate as a company. This also offered us the ability to identify ways we can cut our waste, costs, complexity and ongoing CO2 emissions. We are not just offsetting the carbon emissions we produce, we are putting in place plans to cut our emissions further, so we have less to offset in the future. We have a history of helping our customers reduce their own CO2 emissions, and enjoy the cost savings that come with it, through our Managed Document Services: Westpac is now saving 5,000 reams of paper every year equalling 16 tonnes of CO2 emissions (that’s 221 trees). The Southbank Institute of Technology in Brisbane is saving 3.2 million sheets of paper annually. Griffith University has diverted over 4.4 tonnes of waste from landfill since 2004 from using Ricoh’s Consumable Recycling Programme. Offering our carbon neutral printing service is the next step to helping customers reduce their waste, cost, complexity and CO2. So how does an organisation qualify for our free carbon neutral printing service? It applies to customers that engage with Ricoh Australia on a new rental or finance basis. Under this arrangement and for the duration of their lease, rental or hire purchase agreement, Ricoh Australia will offset the GHG emissions generated.* This includes printing produced on the company’s latest range of multifunction devices, printers as well as our cut-sheet production printers. This new carbon neutral printing service will also include an automated meter reading service and participation in Ricoh’s Consumable Recycling Programme. You would think that as a company that sells printers, encouraging customers to reduce their printing goes against our interests. But that’s exactly what we are encouraging organisations across Australia to do. A printed page is less necessary these days as technology is offering more ways to efficiently share information. Ricoh is constantly innovating on how to make document management easier – and greener. *For more information on Ricoh Australia’s carboNZeroCertTM certification and their carboNZeroCertTM certified service for customers, visit ricoh.com.au/ carbonneutral

Iain Heddle, Branch Manager – ACT 10/161 Gladstone St, Fyshwick T: (02) 6123 1888 E: iheddle@ricoh.com.au

J U L Y 2 0 13

ESTATE PLANNING

by Stephen Bourke

Planning for loss of capacity in SMSFs

We are all living longer. However, it is a sad fact that a longer life will see an increase in the inability to make decisions for ourselves. It is not uncommon to unexpectedly find yourself in the situation where someone else has to make important life decisions for you. This can be because of an accident, illness or aged related senility or dementia. We often talk about the importance of having an Enduring Power of Attorney (EPOA) so that someone you trust can make important decisions for you such as paying bills, where you live or whether you have an operation. These are all important decisions which impact on you personally but the importance of having an EPOA extends into other areas of life and can affect others. One significant and often overlooked example is Self Managed Superannuation Funds (SMSFs). There are two ways of being the Trustee of a SMSF. You can either: • Be a personal trustee. You are the trustee in your personal capacity. If your SMSF is set up this way then each member must be a trustee and you must have at least two trustees (i.e. if you have a single member fund, you need a trustee who is not a member of the SMSF); or • Establish a corporation which is the trustee of the SMSF. If your SMSF is set up this way then each member must be a director of the corporate trustee however if you have a single member fund, you only need one member director in this structure. But what happens in your SMSF if you lose capacity? Personal trustee: Where one of the personal trustees loses capacity without an EPOA, then the SMSF will effectively be hamstrung as the law requires that all trustees be part of any decision making. The remaining trustees cannot operate the SMSF without the infirm trustee. Corporate Trustee: If your SMSF has a corporate trustee and a director loses capacity without an EPOA, the rules of the corporation may include a provision to automatically remove a director. If the removed director also happens to be the sole shareholder of the company, this also causes an issue as the rules would need to include provision for appointment of a director where the sole shareholder also lacks capacity. If you have a client in the situation where there is loss of capacity and no EPOA, then the remedy is to apply for an order from the Civil and Administrative Tribunal. This is time consuming and expensive. The problem is easily avoided. All members, trustees and/or directors of the SMSF should each have a valid EPOA. This enables a trusted person to make decisions on their behalf. And the law provides that the trusted person can be a trustee as well in place of the disabled person. Prevention is better than cure. Anyone who is a member of an SMSF or is the director or trustee of an SMSF should have an EPOA.

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

B2b M AGA ZINE

SERVICED OFFICES

LE SA

Archive With Ease

Put a lid on this financial year. By Robert Okulus

Flexible workspace

We understand the Canberra business market and realise that there are thousands of very successful businesses operating from homes and coffee shops in the ACT and across the nation. But there is another cost effective alternative that can provide you with the same flexibility and give you an alternative to holding your meetings at home or in public places – and also give you the opportunity to expand and test new markets In Australia and throughout the world. Our office business centres allows you to preserve the individuality and character of your company, without the high costs of establishing an independent office. We provide you with a total office solution in a professional environment, and control your costs by only providing the services you need. Our adaptable leases give you the flexibility to grow or reduce your executive office space as the business demands. When you take an executive serviced office with us you receive: • A fully equipped and furnished serviced office suite • Competitive rentals on flexible lease terms – from a day, a week, a month and any lease term to 12 months • A professional business address • A team of professionals available to support your business in the manner you require • Services designed specifically to meet your business needs. • World class meeting room facilities A recent survey, which interviewed over 20,000 senior business people in 80 countries that found: • Flexible working practices have become a mainstream solution to containing costs and boost profitability, with 81% of firms globally offering their employees a level of choice about when and where they work. • 60% of businesses globally also believe that flexible working practices, whether related to office hours or location, are more cost efficient than fixed office working. This is added to the evident carbon reduction benefits resulting from reduced commuting distances. • In addition, flexible working is recognised as an effective practice for motivating and rewarding family-oriented employees. 70% of firms globally consider flexible working to be more family friendly. For the complete White Paper on Flexible Working please feel free to contact me directly.

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HEALTH

RECRUITMENT

Health is everything: do the things you like doing

By Robbie Manzano

We’ve all been guilty of using the cold as an excuse to sit on the couch. The funny thing is once we’ve set camp under three or four blankets, an apple while we watch our second movie for the afternoon is rarely the snack of choice. Unfortunately, one unhealthy practice cascades into detrimental exercise and eating habits. Not surprisingly detrimental lifestyle practices leads to an avalanche of detrimental health risk factors and thousands and thousands of dollars spent on tertiary health services. The worst thing about this phenomenon is that chronic diseases, such as diabetes and cardiovascular disease, creep up on us overtime and by the time we react to the problem it’s way too late.

Prevention is a the best cure and forming a healthy identity... will ensure you spend more time doing things you like doing. Prevention is a the best cure and forming a healthy identity regardless of what season it is will ensure you spend more time doing things you like doing. The famous philosopher and motivational speaker Alan Watts once told his students, “better to have a short life that is full of what you like doing, than a long life spent in a miserable way.” As much I as get a kick out of hearing this, I’m going to go one step further and ask: What if the things we love doing are limited to our health? The answer is simple. Work towards your personal health goals, live longer and start living life to the fullest. Because when you really think about it, your health is the critical factor in all life situations; whether it’s your family, job or personal aspirations. It makes sense to invest in your health and it makes even more sense to invest in your health now. To make things easier, there are a number of health professionals in Canberra that have put in the years at university and other health institutes. They are able to steer you in the right direction in regards to health, living and happiness. Again, I recommend seeking a health profession with a university degree as they have a greater range of knowledge that can adapt to your life situations. Healthy Identity provides premium health services and programs that are safe and sustainable for life. Whether you need to eat healthier, exercise more or manage your lifestyle, Robbie and the Healthy Identity team can facilitate a program that ensures these practices are second nature. This will enable you to finally do the things you like doing for longer. For more information or to start a personal/group health program, call Robbie on 0423366014 or send an email to robbie.manzano@healthyidentity.com.au.

Robbie Manzano is founder and managing director of Healthy Identity. Robbie has degrees in Human Nutrition and Coaching Science from the University of Canberra and has completed a Graduate Certificate Public Health from Curtin University. robbie.manzano@healthyidentity.com.au 0423 366 014

J U L Y 2 0 13

B2b M AGA ZINE

Staff retention

By Allison Guy-Ritchie

This is a topic that never goes away – it just varies in terms of degrees. Now, more than ever, employers are up against huge competition to retain and motivate their good staff. Losing staff is costly to any organisation; in dollar costs, lost productivity, loss of corporate knowledge and general workplace disruption. Retention strategies are not one off actions – they must be built into the culture and carried through the fabric of the organisation. Gaining loyalty is paramount and the key to this is to understand them; you need to understand the needs and aspirations of your staff and what motivates and inspires them. Cash incentives are mostly commonly thought of as a key retention strategy, however, although this is most definitely a key component, some of the following strategies should also be considered: • Delegate responsibility – entrust your staff to take responsibility – challenge them – you’d be surprised how many of them rise to the challenge. • Provide development and future career opportunities – a career pathway and clear structure is always attractive – this also builds corporate capability and encourages growth and advancement. • Provide mentoring and coaching • Set realistic and achievable goals; reward and celebrate these achievements across your business. • Recognise and appreciate the little things. • Provide variety in duties – maybe even rotate through different aspects of the business. This encourages cross skilling and succession. • Listen – listen to the things that aren’t being said….be a part of your team and place a value on open and honest communication. Provide opportunities to create an environment that is safe and respectful. • Adopt a flexible work environment – create and maintain a culture that supports and assists staff to manage their work life balance and introduce flexible work practices – such as 9 day fortnights or 4 day weeks – having hours spread across the week. Ask your staff what they would consider a flexible work environment. • Create an environment that values healthy lifestyles – a Wellbeing Program – ask your staff if they would value this and how you can best engage them. • Have a formal Award recognition day – formally reward values, productivity, fun etc. Get your staff to participate in the nominations and voting of the winners. • Value relationships and engage your team in setting the corporate and company values. Get their buy in to what are acceptable behaviours and what is not. • Above all – as a leader – you need to set the example. Lead from the front and be a role model.

Level 3, Canberra House, 40 Marcus Clarke Street, Canberra City T: (02) 6257 1010 | www.pcapeople.com

RISK MANAGEMENT

by Rod Farrar

Post event analysis – the key to learning from what goes wrong

No matter how effective the risk management program within an organisation, things still go wrong. They may be events that we have anticipated or they may be incidents that we have completely come out of the blue (unknown unknowns to quote Donald Rumsfeld).

To quote Warren Buffet; “What we learn from history is that people don’t learn from history” What we need to make sure of when these incidents do happen is that we minimise the chances that they are going to happen again. In order to do this, an organisation should conduct a post event analysis. During this analysis, we ask a series of questions: • What happened? • Why did it happen? • Did we or could we have forecast that it was possible that it was going to happen? • Could we have done anything to prevent that event? • Did we deal with the incident in an appropriate manner? • Is there anything we can do to prevent the incident occurring again in the future? • If the event does occur again in the future, are there any strategies we can put in place to minimise the impacts? The conduct of the post event analysis will feed directly into the risk management process in that it may: • Facilitate the identification of new risks • Cause the organisation to review current controls for effectiveness • Cause the organisation to review current treatment strategies for other closely related risks • Facilitate the identification of new treatment strategies If we do not undertake such an analysis, we run the very real risk that the same incident can occur again (and again). What we need to remember is that: today’s incident is yesterday’s and tomorrow’s risk. To quote Warren Buffet: “What we learn from history is that people don’t learn from history”

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G2B

MINISTER’S MESSAGE

Planning for the future

ANDREW BARR

ACT DEPUTY CHIEF MINISTER TREASURER MINISTER FOR ECONOMIC DEVELOPMENT

he Centenary Year is not only an opportunity to look at how our city has grown over the last 100 years, but also an opportunity for us to look at how we want our city to look in our second century. That’s why the ACT government has launched its plan to build and transform Canberra. Last month I announced the 2013 -14 budget, with the City to the Lake and Capital Metro projects front and centre. These city changing projects have the capacity to transform our cities economy and create thousands of jobs, which is why we have allocated over $20 million in funding to continue work on these projects.

The Gallagher Government’s vision as Canberra moves into its second century is for the city to become progressive, inclusive and vibrant, with a distinctive urban culture. The Budget lays the foundation for the Territory’s long-term economic development and ensures our community continues to prosper in our second century. City to the Lake and Capital Metro will contribute to economic growth, provide sustainable development, and provide world-class new leisure and transport infrastructure and facilities for Canberrans. Both projects have so far received strong support from Canberrans in the community consultation. The Budget includes funding to progress design work on the remaking of Parkes Way, which is one of the important first steps of the City to the Lake Project, so that the road is no longer a barrier between Lake Burley Griffin, West Basin and Civic. It also provides funding to progress the Australia Forum project which will provide state of the art convention facilities that can compete with other Australian capital cities. Through this project West Basin will become a great waterfront address that will be anchored by a new beach and aquatic centre, and provide a place

J U L Y 2 0 13

B2b M AGA ZINE

where the daily life of the city can engage with the Lake. The plan also provides for a new rectangular stadium, likely to be built on the Civic Pool site, to replace the ageing Canberra Stadium. The City to the Lake project will be of huge benefit to local business for several reasons. Firstly it will create jobs and provide a shot in the arm for our building and construction sectors. The stadium also has the capacity to bring more economic activity into the city on game days – providing an opportunity for bars and restaurants in the city to take advantage of up to 30,000 patrons. And lastly this project will provide a huge boost to our tourism sector, both through business tourism utilising the Australia Forum, but also by making our city a more vibrant place to come and visit. The 2013-14 Budget also includes $18.7 million in funding to progress the Capital Metro project, including the establishment of the Capital Metro Agency. Included in this funding is $5 million for preliminary design studies and a delivery strategy to progress the Light Rail Transit corridor between Gungahlin and the City. $1.4 million is also being provided for a master planning process which will investigate and identify issues for a future Canberrawide light rail network and assess its feasibility. For light rail to work, we need to further increase the density along the Northbourne corridor. As Minister for Economic Development I am overseeing a land release strategy along the corridor, to understand what development opportunities exist. The first stage of Capital Metro will be a model for a future Canberra-wide light rail network, and will play an important role in the Territory’s growth and development. The construction work involved in this project, as well as the increased density and activity along this corridor has the potential to transform our economy. The Gallagher Government’s vision as Canberra moves into its second century is for the city to become progressive, inclusive and vibrant, with a distinctive urban culture. The Budget lays the foundation for the Territory’s long-term economic development and ensures our community continues to prosper in our second century.

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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

Bring on the election

CHRIS FA U L K S

CEO CANBERRA BUSINESS COUNCIL

AFFILIATED WITH

t’s all about confidence stupid! Australia’s economic fundamentals might be sound but for too long business and consumer confidence has been battered by ongoing political instability and an increasing preoccupation by our politicians on attaining and retaining power rather than governing the country. Businesses are frustrated and disillusioned with this focus on politicking rather than policy. In Canberra and the region they are already dealing with a global economy that remains volatile and slow to recover from the GFC, a Commonwealth Government that is contracting both its purchasing and employment and a sevenmonth “claytons” election campaign that has frozen much decision-making within the Commonwealth Government. There is constant speculation about the magnitude of likely cuts to the public service; the labour market has softened - unemployment is increasing; investment has been strong but is slowing; growth of GST revenue continues to erode; and below average growth in residential and commercial activity has reduced taxation revenue. Is it any wonder that business and consumer confidence both remain fragile? The latest NAB Monthly Business Survey for May 2013 shows that overall business conditions remains weak and business confidence is poor. Forward orders, capacity utilisation and employment conditions were well below average levels while any confidence gained from the falling dollar and May interest rate cut has been undermined by weakness in the domestic economy. The best thing the newly re-elected Prime Minister, Kevin Rudd, can do for Australia, the economy and Canberra is to bring on an election as soon as possible so that the country and the economy can regain certainty and confidence. In the meantime here are a few suggestions for both sides of politics as they head into the Federal Election: 1. RECOGNISE THE CRITICAL ROLE THAT BUSINESS PLAYS as the creator of jobs, innovation and wealth. 2. SHELVE ANTI-BUSINESS LEGISLATION currently before the parliament - such as changes to 457 visa laws, right of entry for unions and the legislation of penalty rates.

3. CUT DOWN ON RED TAPE AND REGULATION Regulation is suffocating small business. The costs and time involved in complying with those regulations is bad enough, and the unnecessary duplication makes it even worse. Let’s cut the red tape and give small business a break.

The best thing the newly re-elected Prime Minister, Kevin Rudd, can do for Australia, the economy and Canberra is to bring on an election as soon as possible so that the country and the economy can regain certainty and confidence. 4. SIMPLIFY THE TAX SYSTEM Our tax and finance systems are impossible for the average small business person to understand and comply with. Many small businesses need to employ specialists and the whole process adds unnecessary cost and time while draining entrepreneurship. Let’s ease the tax burden and make it simpler. 5. MAKE IT EASIER TO EMPLOY PEOPLE Australia has become a very costly place for small business to hire, keep and dismiss staff. And when times are tough, that means jobs and hours get cut. It’s also too hard to get workers with the right skills. Let’s make it easier to employ people and create more jobs. 6. BUILD BETTER INFRASTRUCTURE Support enabling infrastructure to lift productivity and create jobs. In Australia we talk a lot but it’s time to move past rhetoric and actually do something about it. For Canberra and the region this means • Building the Australia Forum Convention Centre NOW and • Putting a High Speed Rail connection between Canberra and Sydney (as a first stage in linking the East Coast capitals) out to the market NOW, rather than in 15 years time. Both of these projects will deliver positive economic returns, create jobs and provide opportunities for businesses across in the ACT and region.

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

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Exporting success in the ACT

CT companies that export are very important to our local economy. Dollars coming from overseas and invested back into our local economy will be increasingly important to balance the ACT’s reliance on the public sector. The ACT government has a program called Global Connect which has a number of international programs established to support the continuing diversification and internationalisation of the ACT economy through export development and foreign investment attraction. The ACT Government is investing $750,000 per annum for the next 2 years into these Global Connect programs. • Trade Connect: a competitive grants program providing matched funding to emerging ACT exporters in support of trade development activities. • ACT Exporters’ Network: provides a unique forum for new and experienced exporting companies to network, share knowledge and to expand and develop export markets. • Trade Mission Program: delivered in partnership with program partners like Austrade, and involves annual outbound ministerial trade missions supporting between 8-10 companies. • Centre for Exporting Government Solutions: provides resources and expert mentoring to ACT SMEs with a demonstrated capability of delivering innovative solutions to the Australian public sector to access international markets. • ACT Chief Minister’s Export Awards: recognises excellence in export performance across a number of categories. The ACT awards feed into the National Export Awards which is delivered by Austrade. • International Student Ambassador Program: a niche initiative that aims to leverage the international student experience of Canberra as both an international education marketing tool and as a skills network that can link to the ACT economy. A local exporting success story is Fyshwick based company eVALUA Pty Ltd. They provide online electronic tendering and evaluation software as a service (SaaS) hosted in the TransACT Data Centre, Dickson. This month eVALUA signed a contract with the New Zealand Government for the Next Generation

Government Electronic Tendering Service (NG GETS) for the next 5-10 years. NG GETS is a major plank of the NZ Procurement Reform program and will enable New Zealand to meet emerging World Trade Organisation obligations into the future, whilst introducing new standards in government procurement. Based on eVALUA’s well-established eTenderBox™ service, NG GETS will enable around 80,000 companies to tender for work from 2,500 Government, Departments, Agencies and School Boards. The service will be hosted out of data centres in New Zealand to comply with NZ Government requirements. eVALUA will sub-contract another Canberra company, EWA Associates to independently audit Internet security for NG GETS. Formed in 2001, to originally support the Department of Defence, eVALUA is now a leading provider of procurement and decision support solutions and services, with Australian and international clients in government, universities and utilities sectors. Hugh Howell said “This is a major win for our Company and shows that with innovative and perseverance, ACT companies can provide world class solutions and compete in the international arena against ‘Tier 1’ competitors.”

ACT CHIEF MINISTERS AWARDS 2013 – 100 YEARS, 100 COUNTRIES, 100 EXPORTERS Reminder Entries are closing for the ACT Chief Ministers Export Awards. Key dates for the ACT Chief Minister’s Awards 18 July 2013 Information evening to assist you with your application 15 August 2013

Applications Close

26th September

ACT Chief Minister’s Awards Gala Ceremony

If you are involved with exporting and international business, then please consider the advantages that being involved with the ACT Exporters’ Network provides. To find out more information about membership of the ACT Exporters’ Network and to take advantage of the benefits please contact ACT Exporters’ Network Manager, Ellen Pope on 02 6247 4199, or Email: ellen.pope@canberrabusinesscouncil.com.au

ELLEN POPE

EXPORTERS NETWORK MANAGER

The ACT Exporters’ Network works with exporters from the Canberra region, to build opportunities in overseas markets. If you require assistance, would like to be involved in our events, or find out more about the Network, please visit our website (www.actexportersnetwork.com.au) or contact Ellen Pope, ellen.pope@ canberrabusinesscouncil.com.au or 02) 6247 4199

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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

A new era begins JULIAN BARRINGTON -SMITH

CHAIRMAN

he search for a new Chief Executive Officer for an organisation is always difficult but when you are trying to fill the shoes of a man of the calibre of Christopher Peters, the task is especially daunting. The Board of the ACT & Region Chamber of Commerce & Industry were faced with the almost insurmountable task of finding a new incumbent. A transformational

We are delighted to announce the appointment of Andrew Blyth as Chief Executive Officer of the ACT & Region Chamber of Commerce & Industry. Andrew’s appointment will take effect from Monday, 1 July 2013.

Corporate Sponsors ActewAGL TransACT The Canberra Times The Good Guys Tuggeranong Synapse Chamber Networks Women in Business Young Business Network Business after Business Foundation Member Australian Chamber of Commerce & Industry SAVE THE DATE Chamber Golf Day DATE Thursday 17 October TIME 11.30am Registration VENUE Federal Gold Club, Red Hill

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leader who could guide the Chamber in the directions dictated by the rapidly changing business environment that we in Canberra find ourselves in. We are delighted to announce the appointment of Andrew Blyth as Chief Executive Officer of the ACT & Region Chamber of Commerce & Industry. Andrew’s appointment will take effect from Monday, 1 July 2013. Andrew’s successful career to date spans politics, policy, advocacy and communication. He has held numerous roles including Ministerial Policy Adviser, Chief-of-Staff, Chief Executive, Company Secretary, Chairman, and Company Director. Andrew’s view is that whilst the ACT is mainly considered to be a public service environment, the importance of the private sector in Canberra and the Capital Region is often overlooked. “I believe more can be done to drive private sector development in Canberra,” Andrew said. “One of my priorities will be to push for an economy which is less reliant on public sector employment and one more focused on driving entrepreneurial opportunities and success for local businesses, big and small. We have a lot to offer in this region and it’s time for the rest of the country to sit up and take notice.” A second key priority for Andrew is small business investment resulting from Canberra’s tertiary institutions. “We are known across the nation as the ‘Knowledge Capital’, and that reputation brings significant business opportunities, particularly in the field of innovation,” Andrew said. B2b M AGA ZINE

Andrew has a special interest and proven track record influencing government policy reform in the areas of energy, environment, resources, employment, welfare reform, and communications. As Senior Policy Advisor to the Hon Ian Macfarlane from 2002-2004, Andrew provided an effective senior level contribution to the development of the national energy white paper, Securing Australia’s Energy Future and assisted in negotiating the passage of significant energy legislation. From 2004-2006 Andrew was Chief of Staff to the Hon Kevin Andrews MP, Minister for Employment and Workplace Relations. Following his career in politics and more recently, Andrew served as Chief Executive of the Energy Networks Association (ENA) from 2006-2011. Andrew’s most recent position was as Principal of Hartley Blyth & Associates, an advisory practice specialising in government relations, business strategy, and communications established in 2011. “As a small business operator I know first-hand how tough it is to keep a business afloat. I will be doing all I can to ensure government understands the importance of the business sector in Canberra and the region, and that our members’ voices are heard.” Andrew is also a part-time lecturer with Charles Sturt University and part-time tutor with the University of New South Wales Canberra at the Australian Defence Force Academy on strategy, leadership and management. With the knowledge and experience Andrew brings to the position of Chief Executive Officer of the ACT & Region Chamber of Commerce & Industry, we are excited not only for the future of the Chamber, but for the business community in the ACT and surrounding region. On behalf of the Chamber Board, I would like to take this opportunity to sincerely thank the management team and staff of the Chamber. Understandably the Chamber team were deeply saddened at the loss of Chris, their long-time friend and leader; they have however continued tirelessly to get on with the job at hand, namely acting as the voice of business, energetically supporting our members and assisting them to drive the Territory’s economy. For further information regarding the Chamber and our services please contact (02) 6283 5200 or visit www.actchamber.com.au.

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

MAKE IT EASY FOR THE BUYER IF YOU WANT TO SELL YOUR BUSINESS Jason from Brindabella Business Brokers discusses

B2B PROPERTY

MAKE IT EASY FOR THE BUYER IF YOU WANT TO SELL YOUR BUSINESS

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

hen Brindabella Business Brokers sells a client’s business, the one comment we always receive is why do we need to provide so much information upfront. Some of the items we ask for are 5 years of financials, leases, plant and equipment inventories, staff rosters, further capital requirements, franchise agreements, add backs, items not accounted for etc.

This level of commitment upfront from the business seller creates a two way street with the buyer. Due to the level of information required, some businesses may take a month before we list them on the open market. Whilst it might seem onerous at the time, this level of information delivers confidence to the buyer to proceed forward in discussing the business further. This level of commitment upfront from the business seller creates a two way street with the buyer. A lot of information has been

LARGE ASIAN SUPERMARKET NORTHSIDE This Chinese Supermarket was established in December 2010 and revenues are consistently increasing along with a loyal following of regular customers. This Chinese Supermarket would have to be one of the biggest in Canberra and located in a high trafﬁc and convenient position. Trades 7 days a week and over 5,000 product lines.

Turnover 2012 $637,000 | Turnover to March 2013 $629,000 Price $250,000 + SAV

COLD ROCK GUNGAHLIN Cold Rock Gungahlin has been running for 2.5 years and currently still holds the Australian record for the highest amount of sales ﬁrst weeks of opening. Further the vendor does not work in the business is 100% managed by staff. This is one of those business that is far from its full potential as the owner simply does not have the time to work on the business or promote it - hence the sale. She is committed elsewhere so the business could be trading much stronger with more owner involvement.

handed over so for the buyer to obtain more information, they have to be just as forthcoming. As a business broker/business seller some of the questions we require further information to are: • do you have the finance to buy the business? • have you approached the bank to start the process of obtaining approval? • do you own your house or what assets you have? • what experience do you have in the industry? • do you already own a business? If the buyer does not want to be upfront, than they may not be that committed to buying the business or after talking with them they may not appear the right buyer for this business. As a business broker we realise it might be the buyer’s first business purchase. Therefore we are there to help guide them through the correct steps in buying a business. Similarly, we have many first time business sellers. I can say, along with my sellers and buyers, that the process can be quite involved. A good broker works to ensure both the seller and buyer overcome any roadblocks so both achieve their main goal - to buy and sell a business.

LARGE INDEPENDENT PET STORE This independent pet store is how a pet store should be as it provides the full range of pets, food, treatments, accessories and nearly anything else you would need for you pet. Along with the large product range this pet store has well trained staff and are passionate about what they do. Finally the owners do not work in the business as they reside and operate other pet stores in other parts of NSW.

Turnover 2012 $1.17m | Similar for 2013 | GP 38% Price $250,000 + SAV

BRINDABELLA BUSINESS BROKERS BUYERS LIST For the 2013 ﬁnancial year we have sold over $1m in businesses that the open market was not made aware of.These were sold to buyers on our buyers list who receive the details and took over without the open market being aware. If you are interested you can join our buyers list by: 1) Going to www.bbbrokers.com.au 2) Click on the Subscribe tab 3) Complete your details and click Submit

Price $290,000 + SAV

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

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