S T SU PP
O E SS N T H
Reuben Machin
Koala Group Council to proceed with new Airport Masterplan Covid disruption adds new dimension to Herbies Spices University of Newcastle Business School earns place among world’s best
Page 8 Edgar Adams’ Editorial Increase the rate base
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Cover story 4 Visionary founder ensured Koala Group’s future 7 Council to proceed with new Airport Masterplan 7 Aero Club seeking 45-year lease 9 Covid disruption adds new dimension to Herbies Spices 9 University of Newcastle Business School earns place among world’s best 9 Central Coast water storage 10 Central Coast Grammar School new building wins top MBA Award 11 April approval expected for Brisbane Water Legacy to redevelop on Gosford waterfront 11 Central Coast Airshow sponsorship opportunities 12 Riton Engineering looking to expand as Manufacturing Manager takes over 12 New Manager for Ettalong Beach Bendigo Bank 12 Haymes Paints opens at West Gosford 13 Star Scientific appoints Principal Engineer 13 Coast Realty purchase Pearl Beach Café and Grocery Store
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15 Council to apply to IPART to maintain rates 15 Venues Live preferred for management of Central Coast Stadium 15 Council Plan taps into visitor economy 16 Property news 17 Jobs the focus as work starts Warner Business Park 18 Sydney investor buys Multi-tenanted freehold investment at The Entrance 19 Feds cutting red tape for business 20 A little bit of clarity on who is – and who is not – a contractor rather an employee 20 Defence in depth 21 Mind Your Business Business insolvencies set to rise in 2022
22 Funny Business
Regular features 6 Edgar Adams’ Editorial Increase the rate base
12 Business Briefs 15 Central Coast Council News 16 Property news 20 Business Tips 22 Funny Business
Front cover: Reuben Machin - Photo: Jeff McGarn Also follow us on Facebook and Twitter
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CENTRAL COAST BUSINESS REVIEW MARCH 2022
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COV ER S TORY
Visionary founder ensured Koala Group’s future FOUNDED IN 1990 by the late Tony Grieve Koala Publishing Pty Ltd at Fountaindale is a company that has survived thirty years of ups and downs due to his vision for its future and the culture he put in place from day one. A long time resident of the Central Coast and well known property developer and entrepreneur he had started other businesses, all successful, before buying a small Sydney poster printing and distributing business and relocating it to Lisarow, before moving to a larger warehouse in Fountaindale in 2005. The business evolved into Koala Publishing when Grieve saw an opportunity to move into greeting card production by out performing the ‘cheap’ imported card producers. Firstly though, his vision for the business was that it would not only “energise the greeting card industry” by delivering what customers want, but its future would be based on a workplace culture that shows employees they are highly valued, no matter what function they perform. Tony Grieve died in June 2015 after an illness that saw him leave the business in the hands of now Managing Director, Reuben Machin who had jointed the company in 2003 as General Manager. Just a few months later Koala Publishing would take out the prestigious Business of the Year and Employer of Choice Awards at the 2015 CCBR Central Coast Business Excellence Awards, with Bev Grieve, who retains a controlling interest in the
company and Reuben Machin accepting the Award. Koala’s success was predicated on offering a quality greeting card, printed in Australia price point of $1 to $4 per card. How did Grieve work out a way to produce a ‘high-end quality’ greeting card that retails for a fraction of the cost while utilising Australian products and services, including local printing? Firstly, Koala delivers high volume sales through a quality product and rapid turnover of custom designed stock on the shelves. Secondly, Tony Grieve established a business-to-business national distribution network that was unique in the industry. Today there are 20 distributors in Australia and four in New Zealand. Each distributor operates as a separate business entity under the Koala banner, however they are not franchisees. Distributor territories vary in size and each distributor is provided all the tools, resources and training they need to be successful at no cost to them. “Everything we do is in support of these distributors because if they don’t do well, we don’t do well,” said Reuben Machin. And last but not least, is the company’s commitment to avoid “putting profits before people”, a mantra introduced from the very beginning by Tony Grieve. Another factor in Koala’s success is in their distribution and the long-term relationship they have had with national groups such as Spotlight and Smokemart and Gift Box stores for some twenty years.
However, right from the start Tony Grieve laid down that not one retailer would dominate their business, so today Koala supplies over 3,000 retailers across Australia and New Zealand with no one customers representing more than 7% of annual turnover. Another enduring aspect of Koala’s success is their commitment to staff. It is this philosophy that earned them the Employer of Choice Award at the 2015 Business Excellence Awards mentioned earlier. Fifty per cent of staff have been with the company at least 10 years and many 15+ years. Strategy reset With a changing marketplace and new technologies influencing consumer attitudes the company five years ago undertook a review of its operations to take them into the future. However, Reuben Machin points out that Koala’s values didn’t change. “We still have very strong family values and a focus on work-family balance. Something Tony established early on in the business,” he says. Mr Machin said with one question we asked was: Why do we exist? The answer to which is to celebrate and enhance people lives. Cards The Reset has seen a product diversification with $1 to $4 cards being best value for money and the introduction of a “Send a Card to Santa” programme with the concept being to encourage kids to write cards.
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CENTRAL COAST BUSINESS REVIEW MARCH 2022
COV ER S TORY
Bamboo products Koala was the first company to bring the bamboo pillow to Australia. “Bamboo is the wonder fabric of 21st century,” says Machin. “Health benefits include antibacterial, dust mite resistant, soft luxurious feel, moisture wicking, thermo regulating, biodegradable. “We were connected via our freight forwarding agent who was importing bamboo pillows on behalf of a client and we bought the company out and now trade under the Bamboo Haus brand, says Mr Machin. IT and Technology: Koala has digitised /automated their entire business systems – from field staff placing orders right through to delivery of order to retailers. Additionally, internal innovation has lead to an internally developed transparent sales and reporting system that is accessed by retailers, field staff, and internal staff. Covid One of Koala’s more recent challenges has been the COVID pandemic. “We met as a team very early on to trouble shoot potential challenges we may encounter,” he says. “It was the team’s idea and decision to work 4 days a week for 6 months to protect the business and all involved.” All office staff choose when they want to work from home, and come into the office the days that best work for them ESG Koala have put ESG front and centre of their operations.
The Koala Group Team (l to r) Danielle Wilby – Marketing and Communications Manager, Peter Miller – Systems and Operations Manager, Reuben Machin – Managing Director, Laine Spencer – Distributor Manager Environment Following the installation of 130 solar panels on the roof of their Fountaindale warehouse Koala’s monthly power bill went from $1800 - $200. Social – Koala’s Send A Card To Santa programme supports Bravehearts charity, and gives $2 per card sold to this charity. Our goal for 2021 Christmas was to donate $80,000 to this amazing charity. Additionally, the company also donates to homelessness charities. Governance Mr Machin says that the company only
works with ethical supply chains. “While we do currently produce our Bamboo Haus products in China, it is our ambition and preference to produce in Australia, and this is something I will be pushing for this year. My long term vision to grow bamboo in Australia and have a fully integrated vertical supply chain,” he says. International expansion plans Koala’s Plan is to have their Bamboo Haus products selling in international markets within the next 6-12 months with their goal being to double total business income within the next three years
CENTRAL COAST BUSINESS REVIEW MARCH 2022
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EDITORIAL
Edgar Adams discusses local issues
Increase the rate base ONE OF THE fundamentals in running a business is to increase turnover by finding new customers. Not putting up the price. If you try that stunt, and many do, you will soon find that your customers are deserting you. It’s not easy. Sometimes you are in a market sector that is mature or is geographically constrained. But there is always a way to increase the pie, you just have to think outside the box. Of course government, all levels, don’t see it that way. Instead of growing the economy it is much easier to increase taxes. And so it is with our Central Coast Council. Forget about increasing the amount of rateable land, just increase our rates. One caveat, both Gosford and Wyong Council rates were out of kilter so had to be levelled (harmonised – in government parlance). This has been very painful and the first Administrator dodged it. Even so Central Coast Council is seeking a rate increase for ten years. This is predicated, it would seem, on the basis that there will be no more land opened up for development for the next ten years and if greenies have their say, forever. The fact that there is a large commuter population that would prefer to work where they live as well as one of the highest unemployment rates in the state seems to be of no consequence to this Council.
Why? While people, politicians and public servants, prattle on about creating more jobs vast swathes of land here on the Central Coast, mostly in the north remain undeveloped even though they have been zoned as either residential or employment lands. Spurious claims of protection for ‘threatened species’ are just that. One good long standing example is at Somersby Industrial Park where many blocks are vacant as the Somersby Mint Bush – a so-called ‘threatened species’ is found there. If the Somersby Mint Bush is so precious why have we not cloned it, as Premier Bob Carr did with the Wollombi Pine when it was first discovered. No, this is just a ruse to stop anyone from building a factory that will employ people. There are many others like the bush orchid that flowers every five years (we think) at Warnervale and dead trees on vacant land everywhere that could be a home to some clucky parrot who wants to nest there for a month or two. When the Warnervale Industrial Area was developed some years ago it was delayed because the developer had to provide for a squirrel glider to move from tree to tree without having to get across Sparkes Road and get killed. A lot of the gum trees you see around that place is there just to accommodate a handful of squirrel gliders.
The absurdities of this just go on and on. There is also another issue of DA’s. – another hot topic. Central Coast Council has inherited all the incompetencies in their Planning Department that pervaded both Gosford and Wyong Councils for over thirty years. Or is it a wilful policy to stop most forms of development? In one of the most diabolical cases of council maladministration, firstly at Wyong Council and now at the amalgamated Central Coast Council a group of East Wadalba property owners who have been hung out to dry by council staff over the past twelve years as they seek to get their land rezoned and sub-divided, while staff prevaricate, obfuscate and it appears deliberately obstruct a residential development of 1,200 homesites costing council millions in lost rates and the property owners millions in unnecessary costs. This residential development could have been signed off years ago would have generated hundreds of construction jobs apart from loss of rates. The opening up of new residential land is essential if we are to accommodate the new residents that the State Government has said we need to do, and in doing so increase the size of the economic pie. It is a similar case with high rise residential developments. When former CEO of Gosford Council was appointed he quickly CONTINUED ON PAGE 19
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NEWS
Council to proceed with new Airport Masterplan CENTRAL COAST COUNCIL is approaching the general aviation industry to help determine the future demand requirements of the Central Coast Airport with a Request For Information (RFI) To general aviation businesses and individuals interested in locating and operating their business at Central Coast Airport. This RFI follows Council’s decision to proceed to Gateway 1 and 2 of the Central Coast Airport Development Framework. The outcomes of the RFI process will inform the development of the Draft Central Coast Airport Masterplan. The Masterplan will set a clear framework for development of the airport. Council Director Corporate Affairs, Natalia Cowley said Council is excited to be presenting an opportunity for the aviation industry and interested parties to have their say in determining the demand behind the Central Coast Airport Masterplan. “We have established community support through Council’s independent telephone survey results, with respondents largely in support of the opportunities the Airport will present for local job creation and training, benefits to local business through investment, and an increase in local tourism,” Ms Cowley said. “Council is now looking forward to the voice of our Coast’s general aviation industries forming an integral part of the Central Coast Airport Masterplan.”
Central Coast Airport- Warnervale The general aviation hub will complement other planned developments in Council’s northern precinct, including Warnervale business and education precinct, Warnervale town centre and Wyong Employment Zone industrial lands. Administrator Rik Hart said the repeal of the Warnervale Airport Restrictions Act in 2021 provided the community with a clear signal regarding the future of the Central Coast Airport at Warnervale.
“Council is committed to following due process and considering all areas in planning the Airport. Our engagement and consultation with the general aviation industry will more broadly see their contribution help drive economic infrastructure, further connect communities and enhance the wider economic performance of our indemand region,” Mr Hart said. Council will be exploring funding opportunities upon finalisation of the Masterplan.
Aero Club seeking 45-year lease At its Council Meeting on April 27, 2021 Central Coast Council agreed to a 45-year lease for the Central Coast Aero Club at Warnervale Airport and also approved a land swap between Council and the club to allow the club to build new premises and hangar space on another part of the site. The decision included a two-year period at the current site with another two year option to allow time for subdivision development approvals and construction of a new Central Coast Aero Club (CCAC) facility at the proposed new location. The club says it will move within the next few years onto the new site within the current airport. Aero Club CEO, Andrew Smith said “Council’s move is a historic victory for the future of aviation on the Central Coast. “The huge uncertainty that we have all lived with under the previous Council has evaporated,’ he said. “We have gone from strength to strength, despite COVID and the partisan squabbling amongst the previous coun-
cillors and their lack of vision.” Mr Smith, said the club owned 2.25ha of land at the airport where it conducted its business and provided services for its members and the broader community. “The CCAC, via its wholly owned subsidiary, Warnervale Air, is approved by the aviation regulator, CASA, to conduct flight training for the issue of recreational, private and commercial pilot’s licences, as well as a vast array of ratings, endorsements and theory qualifications,” he said. “Currently we are root bound on our land, the ageing infrastructure was built in a time where these levels of activity were not feasible. We have the ability, with a larger maintenance hangar and a more efficient infrastructure layout, to increase our flying activity and maintenance operations substantially. The Aero Club is currently turning away work regularly as they do not have the space to work on the aircraft of owners and operators who have been
Andrew Smith, General Manager, Central Coast Aero Club attracted to our business by our good industry reputation and experience. “If this extra potential were catered for, we would see more jobs for Central Coast
CENTRAL COAST BUSINESS REVIEW MARCH 2022
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NEWS
Covid disruption adds new dimension to Herbies Spices
University of Newcastle Business School earns place among world’s best
Ian Hemphill
University of Newcastle’s NUspace Campus in Newcastle
HERBIE’S SPICES MANAGING Director, Ian Hemphill says that Covid has reduced their online sales trajectory from five years down to two years with sales having doubled on pre-Covid turnover. “Our business model has changed,” he says. “While our trade with restaurants in the past was quite substantial, we are not seeing the recovery that we expected as patrons are simply staying safe and staying at home. “We do see this coming back but there is no question that a lot of businesses have not survived and more are teetering on the edge of failure. On the other hand the well established restaurants, particularly those who have pivoted to home delivery and take-away will not only survive but come back even stronger,” says Mr Hemphill. Meanwhile, cooking from home has become a new experience for so many people that he expects this to continue although at a reduced rate. “We have been able to maintain our extensive range of spices and we continue to supply our selected independent stockists,” he said. Mr Hemphill says that they have resisted the lure of supplying the supermarket giants in favour of their loyal stockists across Australia. Herbie’s publishes a digital newsletter every few months with information about spices as well as new and exciting recipes with a reach of over 25,000 recipients Ian and Liz Hemphill founded Herbies Spices some twenty-five years ago and relocated from Rozelle in Sydney where they had a retail outlet, to Charmhaven in 2004 where they set up a dedicated Spicery. Due to the online demands created by Covid, Herbie’s now employs a staff of some 24 people.
The University of Newcastle Business School has been granted European Foundation for Management Development (EFMD) Quality Improvement System (EQUIS) Accreditation, joining the world’s leading providers of business education. EQUIS is the leading international system of quality assessment, improvement, and accreditation of higher education institutions in management and business administration. EQUIS accreditation ensures a rigorous process of quality control, benchmarking schools against international standards. Dean and Head of Newcastle Business School Professor Abul Shamsuddin welcomed the news and said, “This prestigious accreditation reflects the Newcastle Business School’s high standards and confirms our position as a leading provider of quality education,” Professor Shamsuddin said. “Our School is committed to inspiring and developing the next generation of business leaders and policy makers and we are proud that our efforts have been internationally recognised in this way.” Pro Vice-Chancellor of the College of
Central Coast water storage Following recent rains the Central Coast’s water storage has reached another record of 77% of total capacity. Mangrove Creek Dam has now reached almost 77% capacity
Human and Social Futures Professor John Fischetti said the University was very proud of the Newcastle Business School and this hard-earned achievement. “We can now proudly say with confidence that we have one of the top Business Schools in the world,” Professor Fischetti said. In its assessment the Accreditation Board commended the Newcastle Business School for focusing on student-centred, research-driven teaching with a mission to advance responsible and impactful business knowledge. “As the Accreditation Board recognised, ethics, responsibility, and sustainability play a central role in the mission of the Newcastle Business School and are embedded across research and learning, inclusive policies, and community outreach,” Professor Shamsuddin said. “The accreditation reinforces that our School strives to make a difference by addressing some of the great challenges society is facing both regionally and globally.” There are currently 204 EQUIS accredited schools across 45 countries globally.
Storage
Capacity (Ml)
Current Vol (Ml)
% Full
Mangrove Creek Dam
190,000
145,647
76.66
Mardi Dam
7,400
5,194
70.18
Mooney Mooney Dam
4,600
4,594
99.86
202,000
155,434
76.95
TOTAL
CENTRAL COAST BUSINESS REVIEW MARCH 2022
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NEWS
Central Coast Grammar School new building wins top MBA Award SYDNEY CONSTRUCTION COMPANY Reitsma Constructions Pty Limited have taken out the Master Builders Association of NSW 2021 Excellence in Construction Awards winning in the category Private Schools - $20-40 million with their Central Coast Grammar School’s Junior School project. The project consisted of a new K-6 junior school within the existing school campus comprising three buildings; One 3-storey classroom block, one 2-storey classroom block, a grandstand and significant landscaping. Headmaster, Bill Low said the project was an excellent example of teamwork between the School’s Building Committee, NBRS Architects and builders, Reitsma Construction.
CCCG Junior School
CENTRAL COAST BUSINESS REVIEW MARCH 2022
(l to r) Left: Wes Hart, Managing Director, Reitsma, Bill Low, Headmaster/ CEO CCGS, Matthew van Bentum, Construction Manager, Reitsma Mr Low, who attended the awards, congratulated Reitsma on the quality of the construction. He also indicated there had been immense interest in the new facilities from the broader education community. The Junior School facility brings together the very best in design for learning to fully support outstanding innovation in digital literacy, wellbeing, cocurricular and academic outcomes. It is recognised as one of the very best Junior Schools in terms of design and build across Australia and is loved by teachers and students. “The Junior School facility and grandstand build on an ambitious capital works program over the last 10 years and sharpens our focus on innovation and cutting-edge teaching and learning,” said Mr Bill Low.
NEWS
April approval expected for Brisbane Water Legacy to redevelop on Gosford waterfront
Brisbane Water Legacy’s proposed development on Masons Parade, Gosford waterfront BRISBANE WATER LEGACY which has operated a retirement village on the Gosford waterfront for almost 60 years has signaled their intention to redevelop part of the site with new modern accommodation for War Widows and Veterans. The proposed $27 million redevelopment, that will occupy about half the site will see 30 x 1-bedroom apartments plus 24 x one, two and three bedroom retirement village units constructed on the Masons Parade site. In addition, the site will accommodate Legacy Welfare support staff, a large community space, off street parking and a large garden space at the rear. The proposed 30, 1 bedroom apartments will be rented to War Widows and Veterans at a maximum of approx. $90 per week, based on pensioner assessments. The 24 additional Retirement Village units will be leased in accordance with the NSW State Retirement Villages Act, with the entire building remaining owned and operated by BWL. There will be one, two and three bedroom RV units, all with expansive views of Brisbane Water, close proximity to Gosford town centre and transport links Planning for the new development has been conducted through the NSW Department of Planning, Industry and Environment (DPIE), through the City of Gosford Design Advisory Panel, to achieve Design Excellence for this locality, with the DPIE endorsing the Development Application in December 2021. It is anticipated DA approval will occur in April 2022, with Construction Certificate documentation by July, and then Legacy mem-
ber’s approval to proceed with work by September 2022. The key intention of the redevelopment of the Masons Parade site is to continue to provide affordable accommodation for War Widows and Veterans, supplemented by Retirement Units. The project replaces the existing accommodation on site, which is old, too small, financially unsustainable and not appropriate for our ageing clients. Brisbane Water Legacy CEO, Peter Lawley said, “This next stage in the revitalisation of both the Legacy site, and the Gosford waterfront will further enhance Legacy’s services to the community, and the much needed improvement to the look and feel of the Gosford Waterfront.”
Central Coast Airshow sponsorship opportunities
Following the success of last year’s Central Coast Airshow at Warnervale Airport promoters, Paul Bennet Airshows will stage the event again this year on 14th and 15th May and are seeking supporting sponsors. Over 14,000 people attended the 2021 Airshow, the first ever held on the Central Coast held in conjunction with the Central Coast Aero Club and Central Coast Council. The event will not just be all about aviation but will feature a festival for the whole family with food and wine, handcrafts and children’s rides as week as adventure flights, helicopter rides and hot air ballons. As with last year it will feature displays of vintage aircraft along with aerobatics and skydiving. Paul Bennet Airshows is the biggest civilian airshow operator in the southern hemisphere. With years of experience and only aerobatic champions displaying in the air, their events are world class. Sponsorship opportunities range from: Diamond $50,000 Platinum $30,000 Gold $20,000 Silver $15,000 Bronze $10,000 Aircraft $3,000 For more details visit: www.paulbennetairshows.com.au
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BUSINESS BRIEFS
Riton Engineering looking to expand as Manufacturing Manager takes over
Branch in Sydney in 2002 and then to North Ryde in 2008. He succeeds Peter McKeon, who retired last month after 12 years at the local branch Established in 2005 the Ettalong Beach Branch of the Bendigo and Adelaide Bank is part of a network of three operating companies on the Central Coast under the Bendigo Bank franchise, the others being East Gosford and Wyong. East Gosford also operates its own branches at Lisarow and Kincumber. Directors of the Ettalong Beach Branch include: Michael Gage (Chairman)m Donald Wilson, Bruce Croft, Robert Millwood, Paul Thomas, Jeanette Polley, Karry Watkins, Sidney Tame, Kim Radford and Paul Gilmore. In its FY2021 Annual Report the Ettalong Beach bank reported their current loan and deposit book amounted to $150 million. In FY2021 the bank donated around $75,000 to local community groups and provided $100,000 to their Community Enterprise Foundation for future use. Mr McKeon retires after a 44 year in banking the last 12 of which were with the Ettalong Beach branch
Lyn Whitehurst with John Clarke
Haymes Paints opens at West Gosford
One of the Central Coast’s oldest and most respected engineering companies, Riton Engineering, is looking to expand its capabilities and capacity following the management buyout of the business from founder Lyn Whitehurst. Manufacturing Manager, John Clarke takes the helm after sixteen years with the company. Founded by Dr John Whitehurst and his wife Lyn in 1978 Riton has specialised in designing and manufacturing custom solutions across a wide range of sectors from power generation and distribution, mining, defence and nuclear energy components. A Doctor of Mechanical Engineering, John Whitehouse died in 1980 after a long illness and Mrs Whitehouse has carried on the business along with Mr Clarke. Riton gained a reputation for quality and innovative design and manufacture in its early years that has seen it grown from a small factory in Ace Crescent, Tuggerah (which they still own) to two adjacent factories in Gavenlock Road. All fifteen staff, some of whom have been with the business for twenty-eight years will continue under Mr Clarke’s ownership. However Mr Clarke pointed out that some of these employees will be retiring in the coming years and he will be actively looking for new blood to join the company. Mr Clarke said that he sees new opportunities as a result of supply chain unreliability CENTRAL COAST BUSINESS REVIEW MARCH 2022
in respect of imports and Riton’s ability to cost effectively produce in small lots. “I am also looking to modernise a machinery and equipment.” Meanwhile Mrs Whitehurst is retiring and moving closer to her family in Queensland. New Manager for Ettalong Beach Bendigo Bank
Haymes Paint Shop West Gosford Manager Nick Kongonis
Pat Italiano Ettalong Beach’s Bendigo Community Bank has announced the appointment of Pat Italiano as Manger. Mr Italiano’s banking career spans over 30 years having commenced with Westpac and joining the newly formed St.Ives
Haymes Paints, the largest family owned paint manufacturer in Australia, has opened a Haymes Paint Shop at Enterprise Drive, West Gosford as part of its national paint shop network. Haymes Paints have appointed Nick Kongonis as Store Manager. The new store stocks a wide range of quality products, spanning interior and exterior paints, woodcare and timber finishes, concrete and paving finishers, textured coatings and many more. The new store is open to the general public and trades. Based in Ballarat Haymes Paints operates 56 stores around Australia.
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BUSINESS BRIEFS
Star Scientific appoints Principal Engineer
Coast Realty purchase Pearl Beach Café and Grocery Store
Star Scientific Principal Engineer, Dr Ashkan Vatani Hydrogen research, development and deployment company, Star Scientific Limited, has appointed Dr Ashkan Vatani to the role of Principal Engineer. Dr Vatani’s appointment follows a reorganisation of Star Scientific’s key staff, which saw Jim Murray promoted to the Head of Mass Production, Steve Heaton to Global Head of Research, Sam Kirk to Principal Investigator, Shayne De Courcy to Global Head of Infrastructure, and Matt Hingerty to Deputy Chairman, Deputy CEO and Head of Business Development. The reorganisation will facilitate the move to the commercialisation of services based around the HERO® catalyst. Star Scientific’s Global Group Chairman, Andrew Horvath said, “I’m excited to welcome someone of Dr Vatani’s calibre as our new Principal Engineer and I know he will provide the leadership and rigour to enable us to deliver against one of our most important strategic priorities.” Prior to joining Star Scientific, Dr Vatani was project leader with CREATElab (Medical Devices R&D) where he developed a new ECMO (extracorporeal membrane oxygenation) drainage cannula to minimise the risk of life-threatening thrombosis for patients. He has a PhD in Mechanical Engineering from Griffith University with a focus on enhancing heat transfer using magnetic field and magnetic nanofluids. Star Scientific is based at Berkeley Vale.
Argyle Estates
Business Brokers Buying or selling a quality business, contact the experts on the Central Coast
Pearl Beach Café and Grocery Store In an unprecedented move for a real estate agency Umina Beach based Coast Realty has acquired the Pearl Beach Café and Grocery Store. Owned by Kevin McCunn for the past nine years the iconic café and grocery store has a long history in Pearl Beach servicing residents and tourists. The acquisition builds upon Coast Realty’s already established position within the Pearl Beach community through sales, rental and holiday services. Co-Founder of Coast Realty, Troy Rushton said it was an obvious decision for the business. “Our Principal, Stuart Gan has been servicing the area for well over 25 years. Naturally, our team has developed a good rapport and fantastic relationships with the local community. We are lucky enough to call many of them, including the cafés owner Kevin, our friends.” Mr Rushton said. Coast Realty have engaged local Chef and
hospitality expert, Pauly Mac who will work alongside Chef Cam to improve on the overall café offering and menu strategy. Pauly will review and improve everything, from operations and service to suppliers and food. The team will also be focused on giving the venue a face-lift, with high and low seating options and new spaces for everyone to enjoy at any time of day. Kevin will stay on in a managerial position under the guidance and leadership of the Coast Realty team for a transitional period. In what may seem to be a strange move for a real estate agency, Co-Founder of Coast Realty Troy Rushton, explains how it was in fact an obvious decision for the organisation. The acquisition builds upon Coast Realty’s already established position within the Pearl Beach community through sales, rental and holiday services.
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CENTRAL COAST BUSINESS REVIEW MARCH 2022
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Unity Bank
Extending support for small and medium sized businesses
SME RECOVERY LOAN SCHEME
EXTENDED
Unity Bank welcomes the Government’s extension of the existing SME Recovery Loan Scheme to support small and medium-sized businesses in their recovery. We are one of only a handful of lenders on the Central Coast who have been approved to assist the local community in injecting capital back into their business under the SME Recovery Loan Scheme. We are pleased to continue our ongoing participation and currently accepting applications for assessment.
How can Unity Bank assist under this scheme? Eligible SMEs can apply for: n Unsecured loans up to $200,000 n Secured loans up to $5,000,000 (refer to acceptable commercial securities within the Treasury link below) n Variable rates n Principal & Interest n Term of up to 10 years
n An interest accruing repayment holiday of up to 12 months n A further interest accruing repayment holiday of up to 12 months (maximum 24 months in total) n Credit eligibility criteria, terms and conditions, fees and charges apply
Eligibility and full Government details can be found here: https://treasury.gov.au/coronavirus/sme-recovery-loan-scheme For further scheme details, loan criteria or to discuss a scenario, please contact Darren Hooper to discuss your specific needs. Darren Hooper – General Manager Central Coast p: 4350 5256 | m: 0418 618 530 e: dhooper@unitybank.com.au | w: unitybank.com.au
Unity Bank, your SMERLS provider on the Central Coast. Important Information © 2021 Unity Bank Limited. | ABN 11 087 650 315 | AFSL/Australian Credit Licence 240399 | BSB 882 000. Any advice or information contained within does not take into account your personal objectives, financial situation or needs and you should consider whether it is appropriate for you. Please review our Disclosure Documents https://www.unitybank.com.au/about-us-disclosure-statements.html before acquiring any product.
CEN T R AL COA S T COUNCIL NE WS
Council to apply to IPART to maintain rates Council will formally apply to the Independent Pricing and Regulatory Tribunal (IPART) to maintain rates at their current levels for an additional seven years, ten years in total to 2031. Administrator Rik Hart said this does not mean a rate increase as the temporary Special Variation of 15% (including rate peg) determined by IPART in May 2021 is already included in the rates which have been applied for the 2021-22 financial year. “Maintaining the rates at current levels means Council can maintain services, continue productivity improvements and meet debt repayments. This is not a year on year increase, we are asking that IPART retain the status quo for a further 7 years,” Mr Hart said. “The current three year Special Variation only provides temporary stability. While borrowings have been arranged and savings have been identified, Council’s position remains unsustainable if the current rate variation is not maintained for a further 7 years. Not only would basic services be in jeopardy, but Council would be unable to meet its borrowing obligations without further drastic service reductions that would compromise the living standards of the community. “It is clear from consulting with residents and ratepayers that they want services maintained, and in many instances expect Council to invest more in services,” Mr Hart said. “Council’s financial recovery plan put in place over 12 months ago is working and we are meeting all major milestones and targets, and currently at 6 months of the financial year we are ahead of budget.” “Let me be clear, this is a repeat proposal from last year. We are simply reapplying for the shortfall of 7 years we did not receive in last years’ application. The community has had multiple opportunities to comment over the past 12 months and will have further opportunity to have their say through the IPART consultation process that follows Council’s submission, as well these important strategic documents will be reexhibited in April 2022 to allow for further comment,” Mr Hart said. The next steps are that Council will formally submit the application to IPART by 7 February 2022 and IPART will undertake further consultation with the community prior to their expected determination in May 2022.
Venues Live preferred for management of Central Coast Stadium
Council has identified the proposal submitted by Venues Live for the management of Central Coast Stadium as being the preferred bid and is now negotiating to finalise the commercial terms of the management agreement. Council continues to own the Stadium. Council issued a Request for Proposals (RFP) for the management of the Stadium on the 2nd July 2021 as an action under the Central Coast Stadium Strategy adopted by the Council on 23 March 2021. Three responses were received. One of the responses was submitted by the existing Central Coast Council Stadium Management team and Council is consulting with staff on the impacts of future management of the Stadium. Council has notified the other unsuccessful tenderer and key stakeholders of the Stadium. Venues Live indicate they are in negotiations with the Central Coast Mariners to remain anchor tenant at Central Coast Stadium. Administrator, Rik Hart said the proposal was exciting for the Coast and another step towards ensuring the Stadium reaches its potential for the region. Venues Live operate a number of key venues including Accor Stadium (Sydney Olympic Park, formerly Stadium Australia), Optus Stadium (Perth) and Commbank Stadium (Parramatta). In addition Venues Live is also the exclusive caterer for other large venues such as; McDonald Jones Stadium (Newcastle), Win Stadium (Wollongong), Jubilee Stadium (Kogarah), Sydney Olympic Park and Sydney Motorsport Park (Eastern Creek). Council expects to be ready for transition of management to occur for the new financial year.
Plan taps into visitor economy Council has confirmed how it will guide a shared vision for tourism development and destination management priorities in the region over the next four years with the adoption of the Central Coast Destination Management Plan 2022-2025. The Plan was developed over a four-month period in collaboration with Destination NSW, Destination Sydney Surrounds North, Darkinjung Local Aboriginal Land Council, NSW National Parks & Wildlife Service, Forestry Corporation of NSW, industry groups and local businesses, before being placed on public exhibition at the end of last year for community feedback. Council Administrator, Rik Hart said the Plan outlines the community and Council’s shared vision for the Central Coast. “Tourism is an important pillar for the Central Coast economic and employment sectors, and we want to see a thriving, connected and supported tourism industry that provides compelling visitor experiences, and positions the region as a premier sustainable tourism and lifestyle destination,” Mr Hart said. “Through the DMP, Council facilitates the strategic direction and delivery of tourism. Focuses include generating sustainable visitation patterns by increasing visitor dispersal and growing off-peak visitation, growing visitor yield, creating high quality amenity for residents and visitors, and empowering a unified, connected and supported tourism industry. “Since bringing the function of tourism marketing and management in-house, Council has received a number of accolades for the Coast and propelled our region onto the world stage with a powerful Destination Central Coast brand that heroes locals, local products and our spectacular natural environment. “This Plan supports the continuation of this strong brand and identifies shared responsibilities and co-ordinated actions for Council, local tourism operators, tourism funding bodies and other regional stakeholders, to ensure the industry sustainably grows into the future.” In addition to this Destination Management Plan, tourism activities on the Central Coast are guided by Council’s Tourism Opportunity Plan 2019-2024, which provides direction on public and private sector investment and activation opportunities.
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PROPERT Y NEWS
Jobs the focus as work starts Warner Business Park SALES Sydney investor buys Multi-tenanted freehold investment at The Entrance
Earthworks have commenced at Warner Business Park the first industrial land development on the Central Coast in over twenty years In June 2014 Wyong Council approved the acquisition of two lots of land at Jilliby and Doyalson. The Jilliby lot, owned by Warner Business Park Pty Ltd, for $10 million and the Doyalson lot, owned by Woodbury Park Pty Ltd, for $7 million. Earlier the Terrace Tower Group had approached Council offering its land holdings at Jilliby and Doyalson for sale to Council. The holdings are owned by the two companies which were members of the Terrace Towers Group The Jilliby land comprised one lot on Sparks Road and eight lots on Hue Hue Road totalling 879,588sqm while the Doyalson land comprised three lots on Thompson Vale Road totalling 1,440,100sqm. A report to Council said that both holdings are located in areas of strategic importance to Council. The Warner Business Park Land at Jilliby is located within the Strategic Investigation Area for the proposed Central
Coast Regional Airport and also contains an existing Part 3A approval for an industrial subdivision. The Woodbury Park Land is located adjacent to the Freeway Link Road at the north boundary of the Shire and will likely provide opportunities for future employment and environmental offset lands. Subsequently in May 2016 Wyong Council and Gosford Council were amalgamated to form Central Coast Council and at that point nothing more was done towards development of the land and then Council was placed in Administration and then fell under Council’s Asset Sales Programme. Subsequent to a public Expression of Interest, Lake Macquarie property developer Winarch Capital negotiated with Council to acquire the Jilliby holding and in late 2020 agreed to pay $27,031,775 for the Jilliby land which Wyong Council paid $10 million in 2014 and Knight Frank in January 2021 valued it at $19,500,000.
A Sydney investor has paid $2,650,000 (GST not applicable) for a multi-tenanted property at 50-52 The Entrance Road, The Entrance on a return of 4.18% per annum net. Situated in the heart of The Entrance the 724 sqm block, on the corner of The Entrance Road and Bayview Avenue with rear access to Amber Parade comprises 2 large commercial offices with tenants in place and comprises 677 sqm floor space plus onsite parking. Originally owned by the Commonwealth Bank the property has had three owners over the past 25 years the most recent having held it since 2019 having paid $1.375 million (Source: RPData) Ben Purdue from LJ Hooker Commercial Terrigal negotiated the sale. Toukley investment property sells prior to auction
FOR LEASE
PROFESSIONAL & SPECIALIST MEDICAL SUITES
152-154 PACIFIC HIGHWAY TUGGERAH
Easy Parking, great exposure, well maintained & presented property with well known quality tenants including Trader Vics, BCF & Super Cheap Auto, PRP Radiology, Australian Clinical Labs Pathology, Fullerton Health Medical Centre, Geriatrician; Psychologists, Dentist, Sports & Spinal Physiotherapy, Chiropractor, Cafe & more. Ideal for the Professional, Legal, Financial or Medical Specialist with sizes from 16m2 up to 95m2 suitable to Lease or Purchase. Features include: • Flexible lease terms • Competitive rentals • Excellent parking • Air-conditioning, carpets, kitchenette • Balcony access for East Wing suites • Exposure of Complex to Tuggerah Straight
For further details contact Julie Davies on 0402 779 186 CENTRAL COAST BUSINESS REVIEW MARCH 2022
An investment property at 362 Main Road, Toukley has sold prior to auction for $600,000 (GST not applicable) to a Sydney investor. The property on a 488sqm block has rear lane access comprises a 316sqm building with 12 rooms that could be renovated for co-housing. Ben Purdue from LJ Hooker Commercial Terrigal negotiated the sale.
PROPERT Y NEWS
Unit sells in new Somersby industrial complex $2,920 per sqm for Charmhaven factory unit
A buyer has paid $$589,900 plus GST for a 202 sqm factory unit in a recently completed complex at 4 Fairmile Close, Charmhaven. The complex comprises 14 units built on a 5,650 sqm site developed by Sydney developer SD Group. The sales were negotiated by Rick O’Toole from DiJones Commercial.
Unit 6 at 37-39 Somersby Falls Road, Somersby has sold to a Sydney investor for $720,000 (GST not applicable). The 201sqm unit is part of a recently completed 14-unit complex by Sydney developer Somersby Property Group Pty Ltd.
The unit was sold with a 3 x 3 year lease in place at a rental of $32,000 net per annum + GST giving the buyer a 4.4% per annum yield. Karen Aubrey from LJ Hooker Commercial Central Coast negotiated the sale.
Begin with the No. 1 NUMBER OF SALES 2021-2022 TOP OFFICE INTERNATIONALLY
(02) 4353 7700 Suite 401/1 Bryant Drive, TUGGERAH NSW 2259
87 Mann Street, GOSFORD NSW 2250
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PROPERT Y NEWS
NDIS business leases in Tuggerah Business Park
Platinum Building Erina suite sale and lease
Suite 3.08 in the East Wing of the Platinum Building at Erina has sold to an investor for $715,000 (GST not applicable) with a new lease in place to show a return of 5.03% pa. The 80 sqm suite has been leased Sydney investor buys West Gosford factory unit A Sydney SMSF investor has paid $635,000 (GST not applicable) for a 240 sqm factory unit with 4 car spaces at 14 Gibbens Road, West Gosford. The property was bought with a newly signed lease to a Gym for 3 years with a 3 year option at a rental of $36,000 per annum plus Outgoings and GST. Unit 4 is part of a 7 unit brick and tin roof industrial complex built over 30 years ago Andrew Dunn from DiJones Commercial negotiated both the sale of the property and the lease. Conveyancer buys in Tuggerah Business Park A conveyancing company has bought Unit 208, 12 Pioneer Avenue, Tuggerah Business Park paying $425,000 plus GST. The 145sqm unit is part of a 32 unit complex completed in 2021 Ty Blanch and Brett Dowling from LJ Hooker Commercial Central Coast negotiated the sale Local business buys North Wyong industrial for warehouse at $375 per sqm A local company looking to expand has purchased the last lot in a small industrial subdivision at Lot 1/19 Donaldson Street, Wyong paying $1,780,875 plus GST. The property is comprised within the North Wyong Industrial Estate with B6 Enterprise Corridor zoning. The sale was negotiated by Brad Rogers from Raine & Horne Commercial.
CENTRAL COAST BUSINESS REVIEW MARCH 2022
to a law firm on a 3 x 3 year lease at a rental of $36,000 pa plus Outgoings and GST with 3% annual increases. Both the sale and lease was negotiated by Brad Rogers from Raine & Horne Commercial Central Coast.
LEASES Government leases office suite at Tuggerah Business Park A NSW Government department has leased a refurbished office suite in Block F on the ground floor of 2 Reliance Drive, Tuggerah Business Park. Rent paid for the 305 sqm space with 10 designated car spaces is $84,500 per annum plus Outgoings and GST with lease term of 6 years with 2 x 5 year options. Andrew Dunn from DiJones Commercial negotiated the lease.
An NDIS provider has leased Suite 3 of 141sqm at 14 Pioneer Avenue, Tuggerah Business Park. The suite comprises 3 formed offices and meeting room with quality fit-out. 14 Pioneer Avenue is an A Grade office building with a 5 Star NABERS rating. Other tenants including the NSW Department of Education and Wesley Mission. The tenant is a national NDIS provider expanding across NSW. Terms of lease are 20 months with 3 year option at rental of $47,250 per annum plus Outgoing and GST. Ty Blanch and Rob Bose from JJ Hooker Commercial Central Coast negotiated the lease Arcade shop at The Entrance leased An eye-lash studio owner has leased a 30 sqm shop in an arcade at 68-72 The Entrance Road, The Entrance. Terms of lease are 1 year with two 1 year options at a rental of $9,500 per annum plus Outgoing and GST. Andrew Dunn from DiJones Commercial negotiated the lease.
Central Coast For Lease
6, 7 & 8/6 Botham Close, Charmhaven • Outstanding Highway Location offering maximum exposure • Opposite Bunnings – 1,133m2 total approx. area • Huge mezzanine spanning 492m2 approx. • Dual 4m x 4m approx. roller doors with clear, easy access Brad Rogers 0459 921 122 brad@cc.rhc.com.au
Andre Bianchini 0403 287 793 andre@cc.rhc.com.au
Commercial Central Coast 02 4302 2999 rhc.com.au/centralcoast
PROPERT Y NEWS
Feds cutting red tape for business Initiatives that will see a reduction in the sea of regulations imposed on them by governments at all levels.
By The Hon Ben Morton MP Minister Assisting the Prime Minister and Cabinet, Minister for the Public Service, Special Minister of State REGULATION DETERMINES WHEN a business can open, what they can sell, the services they can provide and opportunities to grow and invest. When the Prime Minister asked me to take on the Morrison Government’s Deregulation Agenda, I jumped at it because of my own experience and that of my parents who had successfully run their own family businesses in Wyong NSW Deregulation Agenda. As I revealed at Australia’s inaugural Regulatory Reform Conference last month, our Deregulation Agenda is expected to deliver benefits of over $21 billion over the decade. Good deregulation means removing duplication. We know from talking to businesses, they want to comply with regulation, but they only want to do it once. And fair enough, too. We have numerous regulators at different levels of government monitoring the same businesses and mandating the same information from them in different ways. Rather than talking to each other, they push the burden onto business to resubmit the same data over and over again. Creating duplicated efforts, wasted time and lost revenue. Imposing duplicative standards on businesses doesn’t help anyone; it just jacks up prices for consumers and wastes businesses’ valuable time.
Increase the rate base
In February my Ministerial colleagues and I announced more cross-government common sense changes that will cut red tape and save time and money for hundreds of thousands of businesses. We’re changing laws to allow the use of trusted overseas product safety and information standards in Australia. We estimate this will save Australian businesses $136 million every year and improve safety for Australians and their families. My long-held view is that our starting point should be not to regulate. Instead we should take a hard look at regulations to ensure they’re justified and minimise burdens. When we talk about deregulation, we don’t mean no regulation, we mean well-designed, well-targeted and wellimplemented regulation. We want to free businesses from the barriers, blockages and bottlenecks that put undue obstacles in their way. We’re taking advantage of technological solutions to make it easier for businesses to meet their requirements. We have committed $2.8 million to digitise legal documents making it easier and quicker for individuals and businesses to communicate with each other. We have also invested in a range of technologies that make it easier, cheaper and quicker for businesses to comply with a range reporting requirements. This includes $48 million to make it easier for industry to seek environment approvals for major developments, $20 million to slash time for up to 55,000 small and medium businesses lodging mandatory reporting, and $33 million to help farmers and businesses wanting to participate in the carbon market. Because deregulation is not just for business. We are working with States and Territories to make it easier for tradies and licensed professionals including teachers, architects and real estate agents to work where the work is. Almost all States and
Territories have amended laws to remove the need for licensed workers to apply and pay for additional licences to work in different States and Territories. I am pleased WA is set to pass its own law by July. Some fly-in, fly-out workers have wallets packed with different licences just to do their job. Many others simply don’t bother to take up work interstate. Our reform has worked, not by having a national licence, not by trying to harmonise or align State rules, but to replace them with a description of accountability and transparency. We shifted the focus on the needs of businesses while ensuring we continue to keep workers and the community protected. We estimate this will benefit 168,000 workers each year and add about $2.4 billion to the economy over 10 years. While I was pleased to see the Leader of the Opposition, Anthony Albanese, recently speak about deregulation, it was quite disingenuous. Labor were not supportive of these reforms. Instead, they voted in support of the Greens who tried to destroy them. Imagine the lost opportunity if they were successful. Mr Albanese claimed Labor would deliver “microeconomic reform through national consistency and removing duplication” but fails to realise the Morrison Government has already achieved this through National Cabinet last year. By listening to what Australians and businesses have to say, and freeing them from the burdens of cumulative, duplicative and unnecessary regulation, the Morrison Government is enabling industries to grow and create jobs. I’m proud of all we’ve achieved as part of the Deregulation Agenda, as well as the foundations we’ve built to support consistent reform in years to come. We will continue to find the best and most efficient ways to make Australians’ lives easier.
CONTINUED FROM PAGE 6
saw the need to increase the rate base. Within months he had ripped through Council’s planning staff and approved developments that saw more cranes in the sky for a couple of years than anywhere. Over twenty high rise projects that had been in limbo, some for over ten years, were developed creating a huge number of jobs and increasing council’s rate base. Presently, real estate agents are reporting a huge number of enquiries coming
out of Sydney from businesses, some quite large, looking to relocate on the Central Coast. This has come about following the opening of the NorthConnex Motorway connecting the Central Coast with Western Sydney. The opportunity to increase our rate base and expand the economic pie in our region is huge. Trouble is will Council’s Administrator and CEO get the message? Approving rezonings and develop-
ment applications is all it will take. It just needs them to cut through the red tape and intransigence of staff in the Planning and Environment Department at Central Coast Council. Edgar Adams Editor CENTRAL COAST BUSINESS REVIEW MARCH 2022
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BUSINESS TIPS
Defence in depth
By Michael Trimblett Certified Ethical Hacker General Manager, Loyal I.T. Solutions “DEFENCE IN DEPTH” is not a new idea. The military use this strategy to delay the advance of an attacker by creating multiple lines of defence rather than one strong line so as an attacker progresses, the attack loses momentum. This is a similar strategy in cyber security. Defence in depth in cyber security refers to multiple security controls in layers. These can be technical controls such as antivirus, administrative controls such as policies and procedures, or they could be physical controls such as securing your building. The
idea is to be able to protect yourself from any attack by forcing an attacker through multiple layers. A recent report released at the end of last year stated that 91% of cyber-attacks start with a “spear phishing attack” (i.e. hacks start with someone clicking a malicious link in an email). So, let’s use this attack as an example of how to implement defence in depth to thwart this sort of attack, where I’ll describe implementing technical controls to protect from email phishing. The first line of defence is an antispam product, to remove the most egregious spam before it gets to your inbox. But remember, attacks only get better, they never get worse meaning hackers are getting more savvy about bypassing antispam and your second line of defence, antivirus. So, for a third line of defence you should have an Endpoint Detection and Response (EDR) product as the next layer after the antivirus. The EDR should pick off any malware or viruses that get through the antivirus, but what if it doesn’t? The final layer of
defence is web filtering which disables the ability to access malicious websites, newly created websites, or websites without a reputation. For SME’s, this is your defence in depth strategy to prevent an email from being the source of attack. How many other sources of attack could be there be in your business? If a company could provide a single product to thwart cyber security threats, then you should buy shares in that business because everyone will want that product. Sadly, it doesn’t exist, so you need to be in control of your own cyber defences. No two businesses are the same so understanding your vulnerabilities, whether they are technical, administrative, or physical, it’s important to protect your business. You don’t want to be the low hanging fruit for hackers’ prey on. If you have defence in depth, hackers will likely get frustrated and move on to a lower hanging fruit. To discuss your defence in depth strategy, contact the experts at Loyal I.T. on 02 4337 0700 or email cybersecurity@loyalit. com.au for more information.
A little bit of clarity on who is – and who is not – a contractor rather an employee
By Warwick Ryan, Partner, Hicksons Lawyers ONE OF THE fundamental issues facing businesses is how to get the balance right in resourcing the work that needs to be done. Does the business need someone on full-time? Will they have enough work to do? How productive will they be if they are just paid by the hour? Would it be better to bring a contractor on whom can be paid based upon their productivity? These are decisions that business owners have to make all the time. It is hard enough for them to get that right without having a court second guess that arrangement years down the track – deciding that the arrangement was really an employment relationship. If a court does this, it will generally order the business to pay the worker retrospectively employment-based entitlements, i.e., in one case, 20 years of annual leave. Part of that confusion arose out of the fact that, until recently, the courts were
CENTRAL COAST BUSINESS REVIEW MARCH 2022
required not only look at the contract agreement between the parties, but also a detailed examination as to how the relationship worked in practice. It made the process of determining the line between an employment and an independent contracting relationship, difficult to navigate. This particularly arose in cases where the worker engaged as a sole trader with the business. The courts seemed more interested in what they thought the arrangement looked like – rather than what the parties agreed. All that changed last month when the High Court introduced some common sense and clarity. The High Court found that – when seeking to determine which type of relationship it was – a court’s job was to look at the agreement between the parties (much easier when in writing). So, what are the factors in that agreement that will render the arrangement to be an independent contracting (rather than an employment) relationship? The key elements in the independent contracting agreement, include: • allocating risk and responsibility for the work upon the worker – rather than the business; • allowing considerable discretion by the worker as to how to carry out the work. • allocating responsibility for the provi-
sion (of at least some) of the equipment and materials and responsibility for equipment maintenance and running costs, • allowing the worker to carry out work for third parties (as long as it does not interfere with the work for the business), • allowing the worker to employ their own workers to fulfill the requirements under the agreement; • the worker maintaining their own insurance cover for their business; and • invoicing the business at regular intervals - preferably on a per unit rather than an hourly rate, basis. All this is good news for businesses that need the flexibility that comes with using independent contractors as part of their resourcing mix to navigate the ebbs and flows of customer/seasonal demand. This decision of the High Court follows its (equally cogent) decision regarding casual employees of a few months ago. That decision also emphasised the primacy of the agreement as between parties (employer and casual employee) to determine the nature of their arrangement. What to do next? It’s simple and critical: Ensure that you have properly drafted agreements with your contractors – especially where they are sole traders. Where you require help in that regard, please reach out to us.
BUSINESS TIPS
Trusts in the crosshairs On 23 February 2022, the ATO released its long-awaited draft ruling and guidance on the application of anti-avoidance measures relating to trust distributions, and the related flow of funds. Operators of family trusts have been put on notice to ensure trust distributions to family members are genuinely payable to those family members in order to be considered effective. Assuming it is finalised in its present form, the ruling will change the way that many family trusts determine their distributions, particularly in a situation where there are adult children or other low-income beneficiaries. Any distributions not actually available to those beneficiaries will be attacked by the ruling. Beneficiaries with losses Among other things the ATO has indicated that they are likely to apply audit resources to situations where beneficiaries with tax losses are made presently entitled to trust income, and the cash representing the entitlement does not flow to the beneficiaries. The views espoused by the ATO represent a significant shift in the previously accepted norms, and trustees may need to adopt different approaches or obtain further advice in the future. The long-anticipated ruling sets out the ATO’s views on section 100A of the Income Tax Assessment Act 1936. Section 100A was introduced in its current form more than 30 years ago by the then Treasurer, John Howard
MIND YOUR BUSINESS
By Troy Marchant, Director, Adviceco Chartered Accountants
Business insolvencies set to rise in 2022 CREDIT REPORTING COMPANY, CreditorWatch, has released its report on business activity through January. The latest results indicate that the Australian economy is likely to recover at a slower pace than desired, with a follow-on effect of more insolvencies. Banks and the ATO have resumed their usual collection activity, driving a steep jump in court actions by 58 per cent over the last quarter compared to the corresponding period last year. It is this figure that tells us that insolvencies will increase in 2022. The pandemic, specifically lockdowns, has meant that Victoria and NSW are struggling more than other states. Small business owners have been hoping for a break for years, and they’re facing even more uncertainty. So, what
can they do about it? The top tip is…don’t wait! The minute you feel strain, rein in your financial support team and get cracking. Around the table with your accountant, look at your sales data, forecast the year ahead, know what your financial options are. Invest in software that will increase your visibility of every financial decision. It will pay you later. The business environment has forced the hand of many business owners, and that can be a very humbling experience, but the moment you get the right insight and advice could be a matter of business survival. We recommend taking a diagnostic first step in the form of a business health check with a qualified accountant and business coach covering the details that impact your bottom line, including supply, resources, sales and marketing. We’re not going to lie, it’ll take you a good hour to complete the AdviceCo business health check, but it could be the best hour of your career so far. It’s a document that you can complete in your own time, at no cost, and it will expose any leaks that need plugging and opportunities that can be pursued. Troy Marchant is a Director and Business Coach at AdviceCo. To find out more about the Business Health Check, email: mail@adviceco.com.au
WHY BUSINESS OWNERS ON THE CENTRAL COAST CHOOSE CCBR TO GROW THEIR BUSINESS
It’s simple. ✓ They can reach over 20,000 business readers every month. ✓ Most widely read and trusted business publication on the Central Coast. ✓ The repetition of your ad every month means readers will get to know you and remember you. ✓ Independent surveys show 94% of readers will use the CCBR for reference when looking for suppliers. ✓ The quality of the publication and the content means readers retain the CCBR for future reference.
Call Edgar Adams now on 0404 472 571 or Email: edgaradams@ccbusinessreview.com.au
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FUNNY BUSINESS
AN ACCOUNTANCY STUDENT asks a partner to explain ethics in accountancy. The partner thinks for a moment and relates the following. ‘Mr Jones, one of our clients, came to see me last week and paid me his bill of £1,000 in cash. As he left I counted the notes and they came to £1,100. The student said. ‘ I see. The ethics question is do I tell the client?’ ‘Wrong answer!’ The question is do I tell my partner’ The fellow was being sold a very cheap suit. “But the left arm is a lot longer than the right arm,” he complained. “That’s why the suit is such a bargain,” the sales clerk explained. “Just cock your left shoulder up a little, like this, and tuck this left lapel under your chin a bit, like this.” “But the right leg is way too short,” argued the customer. “No problem,” the sales clerk answered. “Just keep your right knee bent a little at all times, walk like this, and no one will notice. That’s why this suit is only $30.” Finally, the fellow bought the suit, cocked his left shoulder into the air, tucked the suit’s left lapel under his chin, bent his right knee, and limped out of the store toward his car. Two doctors happened along and noticed him. “Good heavens,” the first doctor said to the second, “look at that poor crippled fellow.” “Yeah,” answered the second doctor. “But doesn’t that suit fit great?” A young monk arrives at the monastery. He is assigned to helping the other monks
in copying the old laws of the church by hand. He notices, however, that all of the monks are copying from copies, not from the original manuscript. So, the new monk goes to the head monk to question this, pointing out that if someone made even a small error in the first copy, it would never be picked up! In fact, that error would be continued in all of the subsequent copies. The head monk, says, “You make a good point, my son.” He goes down into the dark caves underneath the monastery where the original manuscripts are held in a locked vault. Hours go by and nobody sees the head monk. The young monk gets worried and goes down to look for him. He sees him banging his head against the wall and wailing. “We missed the R! We missed the R! We missed the R!” “Father!” cries the young monk. “What’s wrong?” The head monk with tears in his eyes replies, “The word is celebrate!” Two guys were out walking their dogs on a hot day when they pass by a bar. The first guy says, “Let’s go in there for a pint.” The second guy says, “They won’t let us in with our dogs.” First guy: “Sure they will, just follow my lead.” He goes up to the pub, and sure enough, the bouncer says, “I can’t let you in here with that dog.” He replies, “Oh, I’m blind and this is my seeing-eye dog.” The bouncer says, “Ok then, come on in.”
The second guy sees this and does the same thing. The bouncer says, “You can’t come in here with a dog.” He replies, “I’m blind and this is my seeing-eye dog.” The bouncer responds, “You have a Chihuahua for a seeing-eye dog?” The second guy exclaims, “They gave me a Chihuahua?” A blind man visits Texas. When he gets to his hotel room, he feels the bed. “Wow, this bed is big!” “Everything is big in Texas,” says the bellhop. The man heads downstairs to the bar, settles into a huge barstool and orders a beer. A mug is placed between his hands. “Wow these drinks are big!” The bartender replies, “Everything is big in Texas.” After downing a few, the blind man asks where the bathroom is. “Second door to the right,” says the bartender. The blind man heads for the bathroom but accidentally enters the third door, which leads to the swimming pool, and he falls in. Popping his head up from under the water and flailing his arms, he shouts, “Don’t flush, don’t flush!”
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CENTRAL COAST BUSINESS REVIEW MARCH 2022
For Sale
For Lease
14/1 Bounty Close, Tuggerah Contact Agent
4 Fairmile Close, Charmhaven From $480,400 + GST
415 Terrigal Dr, Erina Contact Agent
72/2 Warren Road, Warnervale Contact Agent
293m2 – Industrial Rick O’Toole 0413 285 235
from 162m2 – Industrial Rick O’Toole 0413 285 235
303m2 – Industrial John Meares 0422 362 222
60m2 – Industrial Jaimy Vegter 0421 323 102
2 Elden Street, Toukley Contact Agent
12 Reliance Drive, Tuggerah Contact Agent
40 & 41/2 Warren Road, Warnervale 204/882 Pacific Highway, Lisarow Contact Agent $180,000 + GST 62m2 – Industrial John Meares 0422 362 222
34m2 – Industrial Rick O’Toole 0413 285 235
from 90m2 to 41m2 – Medical/Office Jaimy Vegter 0421 323 102
from 135m2 – Industrial Jaimy Vegter 0421 323 102
4/6 Corella Close, Berkeley Vale Contact Agent
3/3 Fleet Close, Tuggerah Contact Agent
14/1 Bounty Close, Tuggerah $76,000 pa + GST + outgoings
189m2 – Industrial Rick O’Toole 0413 285 235
238m2 – Industrial Brett Hunter 0410 630 222
Shop 9/34-38 Cutler Drive, Wyong $30,000 + GST + Outgoings 56m2 – Retail John Meares 0422 362 222
293m2 – Industrial Rick O’Toole 0413 285 235
Terrigal Haven Beach Café Business for Sale
Restaurant AND Takeaway
7 Years + Lease
Iconic Location
Liquor Licence
Restaurant and takeaway business for sale in iconic and truly unique location with thousands of potential clients walking past each day. Locate your business in THE most photographed building in Terrigal Brett Hunter 0410 630 222 for Information. dijonescommercial.com photo source: www.lovecentralcoast.com.au
THE FIRST-EVER FULLY ELECTRIC BMW i4. The thrilling BMW i4 heralds a new era of electric driving. It imbues true sports heritage delivering electric performance that goes beyond feeling fast – to feeling alive. It’s time to experience this ultimate electric driving machine. Find out more at Worthington BMW today. Worthington BMW 1 Kangoo Rd, Somersby. Ph (02) 4340 9988. worthingtonbmw.com.au LMCT 16016
