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ISSUE 11 MARCH 2012

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Firms raise concerns over regional unity A SUBMISSION to the NSW government states financial, property and professional services are Sydney CBD-centric and calls for an increased presence in areas such as Parramatta, Norwest, Penrith, Campbelltown and Liverpool. By Red Dwyer report prepared by AECGroup for RDA Sydney * noted Central Sydney, which includes the CBD and 10 inner-Sydney suburbs, accounts for 91,771 workers in the professional and property services sectors, compared to 57,885 in Western Sydney. Figures for specific areas were: Parramatta, 15,945; The Hills, 9,088; Penrith, 4,188, Liverpool, 3,438; and Campbelltown, 2,574. The submission said the potential existed for Sydneybased firms to “export” finance, professional business and engineering services including global best practice and innovation to clients across the region The submission said the presence of these sectors in these areas could contribute to the establishment of business parks, close to existing transport and infrastructure. The submission, to the Professional Services Industry Action Plan being developed.by the NSW government, was based on feedback from the six workshops with a total of 250 participants. A frequently raised issue was the lack of a consolidated business attraction strategy from the NSW government that emphasised west and south-west Sydney as key areas when attracting national and international businesses to the region. The submission suggested a NSW government pro-

A Absolutely famous: Rob Pirina with some of his media coverage.

Entrepreneur with a giving strategy HE’S the archetypical entrepreneur; charming, energy pouring off every word and a sense of self-destiny that only comes from the University of Street Smarts with Honours in Hard Knocks. Rob Pirina, owner of the Glenorie Bakery and the Outback Bakehouse at Windsor has based his growth strategy on giving. See full story page 22.

OUR COMMITMENT, YOUR SOLUTION Let’s celebrate!

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gram be introduced to specifically coordinate the activities of local, state and federal government business attraction initiatives and resources, resulting in joint initiatives to encourage more business to be located within the growth corridors of west and south-west Sydney “Attracting and retaining the required industry capability and expertise to Sydney and its sub-regions was seen as essential to build regional centres of excellence and attract the finance, property and professional business services,” the submission said. The submission said concerns were raised at the workshops about the lack of a unified business voice for Western Sydney . “Although there are a number of small chambers of commerce [in the region], it was felt that there was a need for a coordinating body to get partners together to work on strategic local economic development drivers,” the submission said. The submission said the NSW government’s lack of compliance to a long-term, clearly defined economic development plan, with slow release of employment lands and delays in providing improved access to transport and skills, created barriers for companies to come and invest in Sydney and its specific regional centres. * RDA Sydney, based in Parramatta, is one of 55 voluntary committees across Australia working in partnership with federal, state and local governments to strengthen regional communities.


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Plea for business to help city homeless PARRAMATTA City Council has made a plea to business leaders to overcome a major social problem affecting the growth of Parramatta – homelessness. By Red Dwyer arramatta has the largest number of homeless people in Western Sydney raising concern for the individuals affected and the prosperity of the city and its role in the metropolitan area. The 2006 census showed 599 homeless households existed in the Parramatta local government area. A council survey in 2011 recorded 354

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homeless people in the Parramatta CBD alone, including people sleeping rough and those in crisis or temporary accommodation. Council’s concern ranges from individuals and families to the wider social and economic environment and the costs to the community, and ensuring Parramatta emerges as a sustainable city. Homelessness creates difficulties in attracting investment and promoting growth, attracting and retaining labour and attracting and retaining visitors to the city, council reported.

“Small business owners are particularly concerned with ensuring the prosperity of the city and growing and maintaining its image as a place to live, work, play and visit,” the report said. “Feeling safe is also high on the agenda of business owners, employees and residents,” Council, in acknowledging the presence of visibly homeless people has the potential to impact on current and prospective resident, business and visitor perceptions of the city, has developed a homeless policy and implementation plan. “The aim of the policy is to minimise homelessness by improving the wellbeing of those at

risk and those who are homeless, and supporting the continued prosperity of the city for the benefit of the wider business and residential community,” council said. The report noted federal, state and local governments, not-for-profit organisations and the business community have a real opportunity to work collaboratively and innovatively to maximise efforts to assist the homeless. The report said activity to ensure the success of long-term planning included high-level involvement from business leaders who are motivated to affect change by bringing the very best that the corporate world had to offer and applying it to this social need.

Time to celebrate champions of the West HE stars will come out to honour western Sydney at an exclusive lunch to raise funds for the San Miguel Family Centre on March 16. Held at the Waterview in Bicentennial Park entrepreneur Rowena Szeszeran, racing legend Ken Callander, rugby league great Phil Gould, boxing champ Jeff Fenech and Blacktown Mayor Alan Pendleton will be attending the Celebrate the West event. Celebrate The West recognises their achievements as well as those of other Champions of the West. San Miguel Family centre manager Jennifer Wood said Celebrate the West is an opportunity to highlight the success of local heroes. “Our champions will share their stories and inspire others to strive for excellence. “It is also a great opportunity to help those less fortunate, with proceeds of the event going to the San Miguel Family Centre, she said. For more than 30 years San Miguel Family Centre in North Richmond has been providing short term accommodation to families who are in crisis and experiencing homelessness.

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Bryan Brown

San Miguel’s caring staff provides more than temporary, emergency accommodation, they offer support, counselling and guidance to help families tackle the issues creating their homelessness. Event patron Bryan Brown will act as MC for the evening. For information or ticket enquiries contact 02 4579 6622.

Couthouse contract awarded W Edwards has been awarded the $6.5 million contract for the expansion of the Liverpool Courthouse, which was built in the 1970s. The renovations include the construction of a fourth courtroom to accommodate increasing demand for facilities in Sydney’s south-west New meeting rooms for court users such as prosecutors, Legal Aid, the Aboriginal Legal Ser-

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vice and Corrective Services will be included. Other features of the renovations include additional interview rooms, improvements to security, an upgrade of holding cells, and the relocation of the Sheriff ’s Office into the main registry. The courthouse has closed for the renovations, with sittings relocated to Bankstown, Campbelltown and Camden courthouses. The building is expected to reopen early next year.

WHAT IS YOUR VISION FOR 2012? Rydges Parramatta 116-118 James Ruse Drive, Rosehill NSW 2142 Ph: 61 2 8863 7600 Fax: 61 2 8863 7601 Email: Functions_parramatta@rydges.com Internet: www.rydges.com/parramatta

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CONTENTS

SUPPORT

Innovation ....................13

ACCESS IS PROUD TO SUPPORT THESE GREAT ORGANISATIONS.

Opinion ........................14 Education .....................16 Aviation sector .............20 Entrepreneur ................22 Parramatta Council ......24 Blacktown ....................26 Online profits ...............29 Sales excellence ..........31 Technology ..................32 Business Culture .........37 People..........................38 Legal ............................40 Accountancy ................41 Insurance .....................44

WSBA team Publisher and Editor

Michael Walls M: 0407 783 413 E: info@wsba.com.au Access Creative Don Everett

Design Illustrator Contributors Steve Brown – Etienne Lawyers. Michaela Cladingboel - PD Training Dexter Duncan – Empower IT. Red Dwyer - Westbiz Services Kate Groom - Smart Franchise Kate Hill – Deloitte Private. Craig Hingston - Your Image Media and Marketing Tony Issa OAM – MP for Granville. Peter Knight - Smart Franchise Dr Geoff Lee- MP for Parramatta. Christina Mathews – Taggart Group. George Mavros – Leaf of Faith Training. Lindy McNocher – Gallop Solutions. Michael Mekhitarian – ATB Partners. Amanda Rose – My Business Help. James Solomons – Elite Financial Solutions. Narelle Stoker – Cumberland Business Chamber. Dr Jim Taggart – Taggart Group. Councillor Lorraine Wearne – Parramatta Lord Mayor. Jill Woods – Penrith Valley Chamber of Commerce Emeritus Professor Stuart Campbell - Stuart Campbell Consulting. Printer New Age Printing, Rydalmere Western Sydney Business Access ABN 38 102 914 027 Web www.wsba.com.au Mail PO Box 186 Kurrajong NSW 2758 Phone Sales and editorial 02 4572 2336 Administration/Accounts 02 4572 2336 Fax 02 4572 2340 Email: info@wsba.com.au

Important notice for advertisers It is the responsibility of all advertisers to ensure that advertisements comply with the Trade Practices Act 1974 as amended. Advertisements are accepted for publication on the condition that the advertiser indemnifies the publisher, its agents and servants against all and any actions, claims, loss or damages that may result from anything published on their behalf. All advertising material must meet the approval of the publisher who reserves the right to refuse any advertisements on the basis of offensive content or non compliance with regulations or company standards. Advertising cancellations will not be accepted after the deadline for material has passed and space will be charged at 100% of the booked rate for any cancellations. Copyright and disclaimer The publisher, authors and contributors reserve their rights in regards to the copyright of their work. No part of this work covered by copyright may be reproduced or copied in any form or by any means without the written consent of the publisher. No person, organization or party should rely on or in any way act upon any part of the contents of this magazine without obtaining the advice of a qualified person. The publisher, editor and contributors have no liability for any actions that may arise from any content in this magazine. The views expressed by authors, writers and contributors are not necessarily those of the publisher.

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NEWS

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Rail corridor land prime for jobs A WESTERN Sydney lobby group believes greater use of land adjacent to rail corridors would boost much-needed job opportunities in Western Sydney. he Western Sydney Regional Organisation of Councils (WSROC) said the use of such land could contribute to “ensuring most new housing and jobs are located near public transport”, an aim of the Metropolitan Strategy Review. “Clearly (land adjacent to rail corridors) is not suitable for manufacturing, warehousing or logistics but is suitable for other employment types such as retail, business, financial and professional services, government services and

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community services,” the group said in a submission. WSROC, which represents 10 local government areas in the region, made the submission to the NSW Legislative Assembly committee on transport and infrastructure’s inquiry into the utilisation of rail corridors. Currently, Western Sydney was under-represented in professional employment opportunities, providing only 17 per cent of banking, finance and business services jobs.

WSROC regarded these jobs needed to be attracted to suburban centres in the region to provide a better range of employment opportunities for residents. “They are also the jobs which can be more easily accommodated as part of a strategic program of urban renewal and targeted economic development, including better utilisation of land adjacent to rail corridors.” Land near rail corridors, especially as part of high-density residential and mixed-use development, could also be an ideal target for government decentralisation policies. “The relocation of selected government agen-

Tomatoe farm approved BENNELONG Holdings has NSW government permission to push ahead with a $24 million commercial glasshouse project, in Eastern Creek, which would create110 full time jobs and produce 6.5 million kilograms of truss tomatoes annually. he lease is on 16 hectares of Western Sydney Parklands land on the Great Western Highway, with the glasshouse covering 10 hectares. “It’s another step towards transforming this land into a thriving, sustainable commercial farming site and further securing Sydney’s food supply,” Premier Barry O’Farrell, said

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“The company also tells me the bulk of the tomatoes gown on the site will replace imported ones.” James Hamilton, director, of Bennelong Holdings, said the Eastern Creek project was the first in a series of national large-scale urban glasshouse developments being planned by the company.

WESTERN SYDNEY BUSINESS ACCESS MARCH 2012

cies and departments from Sydney’s CBD to strategic locations close to rail lines in outer suburbs can be a significant generator of jobs in regions such as Western Sydney,” the submission said. “As well as providing much-needed local jobs they reduce travel time for a large number of commuters, potentially increase public transport usage and reduce congestion on roads. “Further, they provide a magnet to attract associated private sector support activities and the employment opportunities they generate.” The submission noted that an estimated 38,000 extra jobs would be needed in the region within the next 25 years.

Law firm finalist PARRAMATTA legal firm, Coleman Greig Lawyers has been named a finalist in two categories of the BRW Client Choice Awards. The awards are one of the most prestigious recognition programs for professional services firms in Australia. The winner in each category will be announced at BRW’s Annual Gala Dinner, on March 14.

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Accountancy, taxation and business advice that’s sound, forward thinking & effective.

NEWS

Eclipse scales new heights ECLIPSE Tower in Parramatta, the latest commercial development project by joint venture partners Leighton Properties and Grosvenor Fund Management Australia, celebrated a major milestone last week with construction reaching its highest point, known as ‘topping out.’

Suite 4, Lvl 3, 20 Charles St, Parramatta T: 02 9687 1042 www.atb.net.au

7 tips for a successful start up 1 Get it on one page • • • •

By all means do a detailed business plan But summarise the essence on one page This is the who, what, when, where, how but also the WHY Make sure this addresses both your personal and business goals

2 Do your budget • • • • • •

Do the detail and then drill down into the detail Work your metrics Detail your assumptions Either engage your accountant to do this or have them do a critical analysis Drill down on detail again doing a best case and a worst case scenario Redo your budget after step 3 and 4 including all the set up costs required

3 Get your structure right

t a height of 88 metres, the 19-storey, $170M Eclipse Tower, which is being constructed by John Holland, is the tallest commercial building in the Parramatta CBD. The project is already 80 per cent leased, having secured pre-commitments from Deloitte, QBE Insurance and Landcom. It is currently the only A-grade commercial building under construction in Parramatta and as such is experiencing strong interest from the market for its remaining space. Members of the development team marked the milestone with a tree-planting ceremony, a long-standing construction industry tradition dating back to a time when all buildings were made of timber. Considered a symbol of growth and good luck, a tree is placed on the roof to signal to the city that the builders had reached the top. The building is due for completion in August 2012.

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• Seek advice from an accountant about which structure would be best suited to your start up • The structure must take into account 1. Asset protection 2. Additional investors or business partners both now and in the future 3. Quarantining IP from trading activities 4. Future sale or part sale 5. Future expansion , franchising licensing etc 6. Tax consequences including the above events Income tax and Capital Gains Tax

Top end demand drives Parramatta office market CONDITIONS continue to tighten in the Parramatta office market, fuelled by strong demand at the top end of the market, according to the Property Council of Australia’s latest Office Market Report.

4 Protect your intellectual Property (IP) • Seek specialist advice regarding patents, trade marks etc • Have your logos, colour and branding trade marked • Have your accountant and solicitors work together so the structure protects the IP

5 Do your cash flow • • • •

From your budget work out how much cash is required for the business to operate Don’t make assumptions that are optimistic Don’t assume you will be paid in 30 days. You may be but plan for 90 days Identify lumps in your cash flows e.g. imports, Christmas wages, deposit bonds, GST and PAYG payments • Calculate your total and maximum cash requirement for a 18 month to two year period

6 Get your finances sorted • Make sure you have the finances to support the cash requirements in your cash flow • Make applications for finance before you commence business as finance rejection may destroy you financially • Check your finance facilities to ensure they have the appropriate number of years before refinance applications are required • Consider finance options for: equipment, motor vehicles, rental bonds, importation of stock, over-draft, fit-out and floor stock.

7 go for it • • • •

Everything is in place don’t look back Continually monitor performance against budget and cash flow forecast Meet regularly with your account and critically review your metrics Make sure you allocate the time to work on the business rather than in the business

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The vacancy rate in Parramatta decreased from 9.3 percent to 9.1 percent in the six months to January 2012, its lowest level since July 2008, said NSW executive director, Glenn Byres. The vacancy decrease was due solely to positive demand, with net absorption of 1063 square metres in the past six months, he said. “The result was spread across the majority of the Parramatta market, with only the C Grade segment posting an increase in vacancy rate, to 18.8 percent.” “Net demand for A Grade space increased by 790 square metres and culled the vacancy rate from 2.4 percent to 2.1 percent.”

Key market indicators, Parramatta (aggregate) Grade

Vacancy, Jan 12 (%)

Vacancy, Jul 11 (%)

A B C D Total

2.1 4.5 18.8 15.3 9.1

2.4 5.6 17.6 15.6 9.3

Michael Mekhitarian has over 20 years experience as an accountant. His firm ATB Partners has had offices in Parramatta for over 15 years. For further information Mike can be contacted at mike@atb.net.au or 9687 1042.

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Net absorption, 6 months to Jan 12 (sqm) 790 1,765 -1,918 426 1,063

Net absorption, 12 months to Jan 12 (sqm) -582 4,050 -876 684 3,277

BRIEFS Objection to suspension

Disclaimer The information is general in nature and is not indented to be advice. No person should act on any of the matters commented on without seeking professional advice in regards to your particular circumstances.

“B Grade also saw strong demand, with net absorption totalling 1,765 square metres in the past six months, cutting the vacancy rate from 5.6 percent to 4.5 percent.” “D Grade vacancy fell to 15.3 percent over the period on the back of net absorption of 426 square metres.” Mr Byres said 25,050 square metres of space was scheduled to enter the Parramatta market in 2012. Nothing was scheduled to come online in 2013; 3000 square metres of projects are planned to be completed from 2014 onwards; 61,905 square metres of space is mooted.

UWS has been decreasing for a number of years in line with national trends.

UNIVERSITY of Western Sydney Hawkesbury alumni chairman, Anthony Martin, has objected to the suspension of the agriculture course at the campus. “The UWS structure does nothing to foster the land sciences and this has been an ongoing problem for years,” Mr Martin said. According to the Dean of the School of Science and Health, Professor Gregory Kolt, demand for the agriculture programs at

Regulation to allow project PROPERTY owners at Riverstone have welcomed a draft state regulation that will allow them to develop land which has been prohibited for more than 15 years because it was classified as scheduled lands because of a lack of infrastructure and because the lots were too small.

WESTERN SYDNEY BUSINESS ACCESS MARCH 2012


NEWS

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Golden Slipper party time YDNEY’S racing event of the year and Australia’s richest day of racing featuring the world’s best race for two-year-olds, the $3,500,000 Group 1 AAMI Golden Slipper, comes alive on April 12 at Rosehill Gardens. Whether travelling to Sydney for the long weekend or a Sydney-sider the day promises to be

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an Easter weekend to remember. Rydges Hotel Parramatta is located opposite Rosehill Gardens. Sales director, Lyndall Hermara said she expected a strong turnout at the venues two dining venues Stock Café and the award winning Steeds Bar & Grill Restaurant. Phone 1300 729 668 to book race day tickets.

Energy firm launches carbon tax calculator PARRAMATTA based independent energy management company, Energy Action has launched Australia’s first online carbon tax calculator that can approximate the cost impact of the carbon tax of Australian businesses. here is a great deal of confusion in the Australian marketplace about how the carbon tax will affect all manner of Australian businesses, as the debate has largely surrounded Australia’s largest industries and companies,” said Dr Ron Watts, Energy Action Chairman. “Energy Action’s online calculator enables businesses big and small to quickly understand how the scheme will influence them over a three year period and what its impact will be on their most affected business cost – energy.” The free online calculator is available for all companies with the modelling allowing businesses to begin to more accurately predict cost changes derived from the carbon tax. The Energy Action Carbon Adjustment Calculator prompts businesses to enter their gas and electricity consumption and length of billing period. From this information (readily available on energy bills) the calculator, using a set of listed assumptions, then approximates a business’ likely carbon expense for 2013, 2014 and 2015 energy bills.

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The calculator was developed by a number of Australia’s leading energy specialists as a forecasting tool for business and is based on information outlined in the Federal Government’s climate change policy, Securing a Clean Energy Future. “There is a common misconception in the market that the tax will only affect Australia’s Top 500 companies. The reality is that Australia’s largest energy generators are within that group and will pass new costs down the line, eventually reaching consumers,” said Edward Hanna, Head of Energy Efficiency and Sustainability at Energy Action. “The only way to beat the carbon tax is to emit less carbon in your operations. For all companies, understanding your cost exposure is the first step in understanding what investment you should now be making to reduce your carbon footprint and energy expenditure.” Users are encouraged to model the impact of increased and decreased energy usage then use this information to evaluate any investments in energy efficiency measures. Businesses can use the free online calculator at www.energyaction.com.au

I'm Geoff Lee. I welcome your thoughts on how we can make Parramatta a better place for business. If you would like me to visit your business or to help you deal with state government departments and agencies, please contact me.

Dr Geoff Lee MP Member for Parramatta

My contact details: 90 George St Parramatta PO Box 1126, Parramatta NSW 2124 Ph: 9891 4722 F: 9891 5618 parramatta@parliament.nsw.gov.au

BRIEFS Into administration BEDDING chain Sleep City, at Wetherill Park, has been placed in administration amid a continuing downturn in the retail market. PricewaterhouseCoopers (PwC) has been appointed voluntary administrator of parent company Furniture and Bedding Concepts Ltd and four other related entities.

New uni in town THE University of New England, in Armidale, has leased two buildings in the heart of the Parramatta CBD. The university has leased the 400-square-metre, two-storey, heritage-listed, formerly Parramatta’s first post office, completed in 1880 – and latterly used as a restaurant – at 211-213 Church Street, and premises of 430 square metres, opposite, formerly a St George Bank branch.

WESTERN SYDNEY BUSINESS ACCESS MARCH 2012

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NEWS

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Tenant demand steady for industrial: Colliers TENANT demand across Sydney’s west for industrial property has remained steady over the past six months with the majority of deals done being renewals, according to Collier Sydney Industrial Report for the second term 2011. enants have looked to exercise their lease extension options due to the ongoing uncertainty in the global economy, which continues to keep business confidence low and therefore postponing business expansion plans. The sub-10,000 square metre market has

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continued to drive the land market in the region with an increase in the number of owner occupiers purchasing lots in the last six months. This demand from owner-occupiers has occurred due to the lack of existing suitable properties available for lease or purchase, forcing them into the market to develop a purpose built asset.

This increase in demand also indicates that buyers now see land values have reached a point at which developing a property stacks up financially. Land values have reminded steady over the past six months ranging from $150 per square metre in the outer west to $600 per square metre in the inner west. “The industrial market in the south-west has seen a number of large high quality assets transact over the past six months bucking the trend of the other Sydney markets and providing evi-

dence that prime grade yields in the region have begun to tighten by as much as 25 basis points,” the report said. A positive story for the industrial market in the south-west over the past 12 months has been the success of Mirvac’s Hoxton Distribution Park at the former Hoxton Park Airport. The Hoxton Distribution Park is one of Australia’s largest industrial developments and consists of two state-of-the-art logistics facilities which have been 100 per cent pre-leased to Woolworths Limited, according to the report.

Skilled staff leave citing regional image problem A PROBLEM with Western Sydney in attracting and retaining professional skilled staff was its image in the business community his was highlighted in a submission by the Parramatta-based Regional Development Australia – Sydney, to the Professional Services Industry Action Plan being developed.by the NSW government. RDA Sydney undertook a series of workshops in Western Sydney, in 2011,with financial, property, professional services and industries. In addition to the image problem, feedback included: Professional services were Sydney-CBD centric and would benefit from an increased presence in areas such as Parramatta, Norwest, Penrith, Campbelltown and Liverpool. The sector’s presence in these areas could contribute to the establishment of business

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parks, close to existing transport and infrastructure. Greater coordination between industry and government in the development of strategies to address current and future skill shortages, which

was most evident in the west and south-west. “There is a need for the NSW government (Trade and Investment) to commission research into why large financial companies such as PWC Ernst & Young and KPMG withdrew from Parramatta and have a very limited presence in Greater Western Sydney to ensure issues and known and addressed,” the submission said.

Cloud provider BrennanIT best again EAD cloud computing provider, BrennanIT, a member of the Cumberland Business Chamber, has been named the number one managed services provider in Australia for the third year in a row. At the same time as confirming their top

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spot Down Under, the 2012 MSPmentor 100 Global Edition Report showed that they are the 4th best provider in the world out of the 100 that were assessed. The Report is conducted annually and based on revenue growth, managed services of-

A recommendation was that the NSW government facilitates local regional centres, for example, Parramatta, the Hills, Penrith, Liverpool and Campbelltown LGAs, to work collectively to raise their profile and promote their business assets and capabilities to demonstrate the need for finance companies to reside in these locations and operate locally. fered and customer devices managed. BrennanIT recently presented at the Cumberland Business Chamber’s B3 Business Building Breakfast on the topic of data security. This sector has experienced record revenue growth driven in part by strong demand for its cloud computing services. Cloud computing is expected to represent one-third of all revenue in the coming year.

ACP offers a full calendar of accredited specialist career courses as well as a comprehensive range of professional development training. All our courses are Nationally Accredited Government Funded Qualifications delivered in partnership with the NSW Department of Education & Training. Call today and talk to one of our qualified members to find out if you or your staff are eligible for Government Funded courses.

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WESTERN SYDNEY BUSINESS ACCESS MARCH 2012

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REGIONAL ROUND-UP

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NORTH WEST Access to airport THE Tourism Industry Council NSW said regional flights should continue to access Sydney Airport, following media speculation that such flights use Bankstown Airport and the RAAF Base, at Richmond, to boost capacity at Mascot.

Council to appeal decision PENRITH City Council has voted to appeal a recent decision in the Land and Environment Court that could leave the community with a $1.8million bill to provide facilities in a new 71 lot residential development

Centre sold for $180m THE 52,000-square-metre Home Hub Hills homemaker centre, at Castle Hill, has been bought by the LaSalle Investment Management fund from Fenix Real Estate, for about $180 million.

$250,000 for projects TOUCH screens, iPhone apps and a loyalty rewards program are among the first local projects to be funded under a $5 million state government program to boost regional tourism, with the Blue Mountains Lithgow and Oberon Tourism has re-

ceived $250,000 in grants through the Regional Tourism Product Development Funding.

Authority seeks CEO THE Sydney Catchment Authority, based in Penrith, is seeking a CEO. The organisation is responsible for managing and protecting the bulk water supply for more than 4.5 million customers across Greater Sydney It has a budget of $130 million with a workforce of 250 people.

Chemical storage facility The Department of Planning and Infrastructure is considering an application by Prime Constructions for a proposed chemical storage facility within an approved warehouse complex, in the WestPark Industrial Estate, at Erskine Park.

ATO building sold A PRIVATE investor has bought the office building containing the Australian Tax Office, in Penrith, for about $31 million, from Australian Unity’s unlisted diversified property fund. The building in Henry Street is an A-grade commercial building with a net lettable area of about 15,416 square metres, and 100 underground car spaces.

SOUTH WEST

Quest Campbelltown, stay a night, a week or longer

$45 million substation

Airports for sale

CONSTRUCTION on on Endeavour Energy’s $45 million Abbotsbury zone substation, at Bonnyrigg Heights, is expected to start in the middle of this year. Following feedback changes to the design include reducing the height of the control building by 1.2 metres and more extensive landscaping to screen the substation from adjoining houses. The project will take about two years to complete.

BAC Holdco Pty Limited, which holds the leasehold interests over the Bankstown and Camden Airports, has announced its intention to commence preparations for the sale of the two airports. The airports were privatised in 2003 and are held under long-term leases (85 years remaining) with the commonwealth government. The airports are to be offered for sale together. Operations at the airports will be unaffected by the sale process.

New residential estate

facilities, secure on-site car parking, gym, range of restaurant options

THE New Brighton Golf Club is going to be transformed into one of the most impressive real-estate and golf developments in NSW following a recently entered a joint venture with Mirvac Homes to develop up to 16 hectares of existing golf course for a new residential estate of up to 310 houses in Moorebank. This would bring the total number of new dwellings in the area to about 1200 houses and generate an additional 3000 residents in the next five to eight years.

and an alfresco BBQ terrace.

$6.5 million contract

Quest Campbelltown offers a range of quality 4.5 star accommodation solutions from studios, one, two and three bedroom serviced apartments. Our brand new accommodation also features on-site conferencing

Apartments (excl. studios) feature fully equipped kitchen and laundry facilities, separate living/dining areas, broadband internet access, Foxtel and separate work areas. The ideal accommodation solution whether you are travelling for work, projects or that special getaway, Quest Campbelltown is your short or extended stay specialist.

Book now and receive a $25 voucher to be used at any of our chargeback restaurants throughout your stay.

A W EDWARDS has been awarded the $6.5 million contract for the expansion of the Liverpool Courthouse. The renovations include the construction of an additional courtroom to accommodate increasing demand for facilities in Sydney’s south-west. The courthouse has closed for the renovations, with staff being relocated to Bankstown, Campbelltown and Camden courthouses. The building will have four courtrooms operating when it reopens early next year.

PARRAMATTA Leagues Club has sold a property with a net lettable area of 600 square metres, at Level 1, 50 O’Connell Street, North Parramatta, for $3.175 million, to an owner-occupier.

Quest Campbelltown

President of Law Society

1 Rennie Road, Campbelltown NSW 2560 Call 02 4622 4900 Or email: questcampbelltown@questapartments.com.au questcampbelltown.com.au

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JUSTIN Dowd, a partner at Watts McCray, in Parramatta, has been elected president, of the Law Society of NSW. Mr Dowd has worked as a family law solicitor in Parramatta for more than 17 years.

Decision deferred

Campbelltown

PARRAMATTA City Council has deferred a decision which could see a mix of buildings of eight and 10 storeys for some 400 metres along either side of Church Street, between the Great Western Highway and the M4/Parramatta Road. Apartment towers up to 30 storeys could be located behind these buildings on the western side of Church Street.

Awards contention questcampbelltown.com.au

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A positive story for the south-west industrial market over the past 12 months has been the success of Mirvac’s Hoxton Distribution Park at the former Hoxton Park Airport. The Hoxton Distribution Park is one of Australia’s largest industrial developments and consists of two state-of-the-art logistics facilities, which have been 100 per cent, pre-leased to Woolworths Limited, according to Collier Sydney Industrial Report for the second term 2011.

Industrial market The Sydney South West industrial market has seen a number of large high quality assets transact over the past six months, according to Collier Sydney Industrial Report for the second term 2011, bucking the trend of the other Sydney markets and providing evidence that prime grade yields in the region have begun to tighten by as much as 25 basis points

CENTRAL WEST Club sells property

*(Mention this ad when making your reservation. Conditions apply).

Large industrial project

PARRAMATTA legal firm, Coleman Greig Lawyers has been named a finalist in two categories of the BRW Client Choice Awards. The awards are one of the most prestigious recognition programs for professional services firms in Australia. The

winner in each category will be announced at BRW’s Annual Gala Dinner, on March 14.

Endorsement deferred PARRAMATTA City Council has deferred a decision to endorse a proposal to rezone and increase building heights to 15 storeys on the University of Western Sydney site, at 158-164 Hawkesbury Road, Westmead

50 years in city MATTHEWSFolbigg, a leading legal practice in Parramatta, will celebrate its 50th anniversary this year. The practice has grown rapidly since its early beginnings in 1962 when two brothers, Brian and John Folbigg, established one of the first specialist property law practices in Parramatta. Paul Matthews began his practice in Blacktown in 1970, specialising in areas of property and commercial law. The two practices merged in 1997 to form MatthewsFolbigg.

New man at the helm THE board of the Parramatta Eels has appointed Bob Bentley as CEO, of the Parramatta Eels Football Club and Parramatta Leagues Club. Mr Bentley has served as the leagues club CEO since April 2010 and as acting Eels CEO since December 2011 following the resignation of Paul Osborne.

WESTERN SYDNEY BUSINESS ACCESS MARCH 2012


NORWEST BUSINESS PARK

FOR

SALE OR LEASE SALE/LEASE • Sizes from 79sqm-376sqm • Cutting edge construction techniques • Located opposite Norwest Private Hospital • 5 star presentation

LEASE $281,400 pa plus outgoings • 804sqm suite with fit-out • 32 car spaces • Balcony overlooking lake

T I S O P EN E D AK T SALE/LEASE • 61sqm-849sqm • High quality office/warehouse • Parking at your level, close to all amenities

SALE/LEASE • Open plan suite with natural light • Use of free meeting rooms • Close to banks, gym and restaurants

CASTLE HILL

SALE/LEASE • 56sqm-238sqm • Great value office space • Plenty of parking, some suites with fit-out

$53,500 pa plus outgoings LEASE $34,800 pa plus outgoings LEASE • 173sqm • Fit out consists of offices, workstations, boardroom & reception • Includes fit-out • Includes furniture and network cabling • Fully furnished • Computers & telephone

SALE • 68sqm • Includes fit-out • Use of free meeting rooms and lounge

SALE/LEASE • 10sqm-373sqm • On-site concierge, gym and restaurant • Investment opportunities available

D L O

S

SALE - INVESTMENT • 8% net return • 5 year lease • Annual increases

LEASE • 246sqm factory incl 87sqm office • Front unit with exposure • Parking at the door

LEASE • 284sqm • Suitable for many uses • Includes storage area

9899 1699 5/38 Brookhollow Avenue Baulkham Hills (Norwest Business Park)

Disclaimer: All care has been taken in providing this information, however it as been provided by a third party and Norwest Commercial and Industrial Real Estate does not warrant it as accurate or correct. All interested parties should make their own enquiries.

www.norwestcommercial.com.au

WESTERN SYDNEY BUSINESS ACCESS MARCH 2012

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WESTERN SYDNEY BUSINESS ACCESS MARCH 2012


INNOVATION with Craig Hingston

Laser Line attracts world-wide attention AN invention developed by a western Sydney business that improves accuracy and operator safety with high speed saws is attracting world-wide attention. By Craig Hingston he CPAC IP67 Laser Line Generator is the brainchild of Ray Lemon, the managing director of Bandsaw Supplies at Arndell Park. Ray has been supplying the bandsaw industry with machines and blades for 33 years and when he saw a niche opportunity for a new type of product he decided to “have a go”. “I see myself as an innovator”, says Ray, “I look sideways at a lot of things and think out of the box. When people say it’s impossible I say no it’s not. I have an engineering mind and I love

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cages and with OH&S laws getting tougher the operator is not near the saw when it is operating, but with the CPAC IP67 he knows the cut is right because of what the laser line showed him. “On some machines the operator lowers the blade, sets up the cut, presses start and then the machine makes the blade go up and down again before starting which means there is room for error. “Using my invention the operator knows where the saw will be cutting, there is no need for manual alignment, it is just a case of press start and let it do the job.” Ray says the improved accuracy of cuts

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Laser beam on hand

electronics and design,” Ray said. “Customers were asking for a low-cost, compact laser guidance tool. There were a few units available in Europe but they were very big and cost thousands of dollars. “Also, they were cumbersome with separate control modules. The secret was miniaturisation. “My first design was mounted in a protective housing 50mm x 40mm x 20mm in size but the control module was a separate housing and still large. “The design has evolved from Mark 1 to the latest design Mark 4. This design has the laser head and the miniaturised controls housed in a 12mm stainless steel tube with an overall length of 100mm. This tube design allows the Laser Line Generator to be mounted in very tight locations on machines.” The 12mm stainless steel tube body has made it very versatile and can be mounted to a range of high speed saws to indicate the cutting path. The laser beam extends at least 20 metres and has a line that generates a one and half millimetre wide line. Ray says the CPAC IP67 allows an operator to verify the cut before starting, while the blade is raised in a safe position, and there is no need for them to have their head anywhere near the blade to confirm they are on the right path. He adds that some manual saws have safety

means operators have more confidence; they don’t waste time manually checking and rechecking, and they are able to finish a lot more projects each day. Orders have been coming in from fabricators and metal suppliers who cut steel and wood but Ray’s decision to make the CPAC IP67 waterproof has attracted interest from an unusual industry, “I got a call from the New Zealand meat industry asking for a laser for their butcher’s saws,” Ray said. “Operators are not allowed to use safety gloves and they have to push the meat into the saws with their bare hands. I added a sensor so that it can turn the beam on and show if a hand is in the cutting path. Being waterproof - and blood proof - it is totally hygienic for this market. The laser has become a safety tool.” Another opportunity could be the rail industry. Ray is talking to people responsible for welding sections of train track together. “As you would expect these sections must be millimetre-perfect when they are lined up. We are looking into using the CPAC IP67 as a lining up tool”, says Ray. Ray is continuing to develop the CPAC to suit other applications. If you have a western Sydney business innovation story to share contact Craig Hingston on 0488 60 7050.

WESTERN SYDNEY BUSINESS ACCESS MARCH 2012

02 9838 7740

www.interclean.com.au 13


OPINION

www.wsba.com.au

Excelling in civic leadership AS we farewell summer and welcome Autumn, it is clear there are some other seasonal changes taking place around Parramatta.

By Councillor Lorraine Wearne Parramatta Lord Mayor

arramatta’s invitation to the Council of Capital City Lord Mayors (CCCLM) in Canberra, heralds just one of these changes, and reflects Parramatta’s status as one of the nation’s leading cities. It was a great privilege to be asked to attend this summit and to address some of the challenges we face as a major Australian city. It also provided an opportunity to build relationships with other Australian councils and to meet with Federal Ministers to push the need for improved funding and infrastructure investment, such as our Western Sydney Light Rail Network, for the betterment of the wider region. There needs to be increased recognition of the growth of Western Sydney, which will house more than half of Sydney’s population within the next 25 years, and it’s vital that our

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major federal decision makers provide the necessary support to aid our development. One of my top priorities is to continue to strengthen Council’s relationship with both the Federal and State governments and share with them the strategic significance of Parramatta as the engine room of western Sydney. Parramatta’s growth is intrinsically linked to the development of the wider region. The State Government’s Community Cabinet meeting and public forum, held at Rosehill Gardens in February, signified the Premier’s willingness to listen to our plans about the future of Parramatta and Western Sydney. At the meeting Council’s delegation spoke to the Minister for Transport, Gladys Berejiklian, about the benefits of Parramatta’s light rail and regional ring road proposal. We also spoke to the Deputy Premier and Minister for Trade and Investment, Andrew Stoner about the relocation of public servants to Parramatta and the provision of support to industries expected to experience significant growth over the coming decades. The response from both ministers was very positive and I look forward to working more closely with other Cabinet members in the near future. Another significant milestone that will facilitate the commercial development of Parramatta was held last month, when I attended

From L to R: Dr Geoff Lee, Member for Parramatta, Lord Mayor of Parramatta, Councillor Lorraine Wearne, The Hon Barry O’Farrell MP – NSW Premier, Mark Gray, Managing Director, Leighton Properties and Anthony Lombardo, Head of Office Development, Grosvenor Australia, at the Eclipse Topping Out ceremony. PHOTO COURTESY OF LEIGHTON PROPERTIES.

the Eclipse ‘Topping Out’ Ceremony with the NSW Premier. Eclipse is the first delivery of new commercial stock to Parramatta since 2008, creating 25,660m2 of new office space. Deloitte and QBE Insurance, two of Par-

ramatta’s long term private sector tenants, have already started packing their bags in preparation for relocation to Eclipse to facilitate their expansion in the region. I expect this development will fuel further employment growth in the Parramatta CBD and Western Sydney.

Parramatta’s table at Community Cabinet AS we approach the first anniversary of the election of Barry O’Farrell-led NSW Government, in late February I welcomed the Premier and his team back to Western Sydney for a Community Cabinet at Rosehill Racecourse. ment he and I made prior to the 2011 election. At the heart of discussions was the NSW 2021 action plan, a long-term strategy developed by the Government to outline a list of priorities that the Government recognises need to be addressed. These priorities focus on rebuilding the economy, improving transport services, providing better family and community services,

By Dr Geoff Lee State Member for Parramatta

he visit was all about listening to the people of this region by allowing us to have our say on the direction of the state in the decades ahead. The Community Cabinet in Parramatta was the largest yet, with over 350 people representing over 200 business and community groups present on the evening. Remarkably, this is the 11th time the Premier has visited Parramatta since the election, underscoring the importance of this city to the fortunes of greater Sydney and the rest of NSW. On this occasion the Premier brought 17 of his Ministers including Jillian Skinner, Minister for Health; Mike Gallacher, Minister for Police and Emergency Services; Gladys Berejiklian, Minister for Transport; and Mike Baird, Treasurer. Earlier in the day the Premier marked his visit by announcing an extra $200,000 in funding for Parramatta Mission, delivering on a commit-

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allowing all students to receive a high standard of education, and ensuring the personal safety of all citizens. The Government’s number one priority is to restore strong economic growth and establish NSW as the ‘first place in Australia to do business.’ Responsible economic management and improving Government’s productivity will sharpen our competitive edge and attract investment and enterprise to NSW. A strong economy will allow for the creation of more jobs for the people of Western Sydney

and will allow our 11 billion dollar economy, the sixth largest in Australia, to grow in the decades to come. More jobs will mean more people travelling to and from Parramatta, the Capital of Western Sydney. As a result, an integrated transport system is required to ensure different transport modes work together to ensure the interests of the travelling public are put first. The NSW 2021 plan sets out a timeline for the delivery of strategic infrastructure projects and for the better coordination of different transport modes, which will help provide clean, reliable, safe and efficient transport services. Local communities on the night agreed that a strong economy and improved transport services were the top two priorities for the people of Western Sydney. The Community Cabinet was highly successful with the government being able to draw out the top priorities of the region on the night, which matched those produced in the NSW 2021 plan. We look forward to welcoming the Premier and Minister for Western Sydney as well as his cabinet colleagues back to Parramatta in the future.

WESTERN SYDNEY BUSINESS ACCESS MARCH 2012


OPINION

www.wsba.com.au

Challenge of attracting skills to Australia AUSTRALIA’S looming skills shortage has been well publicised for a number of years, so with the recent government announcements that Living Away From Home Allowance (LAFHA) is changing what does this mean for attracting skilled migration, which plays a vital role in ensuring Australia’s future economic growth?

By Kate Hill ot only can skilled migrants be used to fill short-term skill gaps but also can be utilised to develop and train local workers and implement best practice based on their global experience. According to Deloitte’s recent publication ‘Building the Lucky Country: Where is your next worker?’, the 168,000 skilled immigrants who arrived in Australia in 2009-10 boosted the Government’s bottom line by around $880 million in their first year of arrival! This is brought about by skilled immigrants typically paying higher marginal rates of income tax while receiving fewer Government benefits than an average Australian resident. Deloitte’s report also highlights other factors which must be considered that will affect labour shortages in the future. In particular, the expected number of skilled Australian graduates and the retirement of mature-age worker, this is supported by research conducted by the Department of Education, Employment and Workplace Relations which found the pace of retirement will ramp up over the next few years, but the number of students exiting education is expected to remain stagnant through to early 2020. So what is LAFHA? In principle, employees should pay for their housing and food costs out of income that has already been taxed. However, to assist labour mobility within Australia and attracted skilled migrants, the current fringe benefits tax (FBT) and income tax rules provide for concessional treatment of certain benefits provided to employees required to live away from home temporarily for work purposes. If structured correctly, the payment of a living‐away‐from‐home allowance (LAFHA) for accommodation and additional food costs is exempt from FBT and exempt from income tax in the hands of the employee. The Government has concluded that these

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tax concessions have been subject to growing exploitation, allowing people to claim significant amounts of tax-free income. In particular, the Government appears to be concerned by: The application of living-away-from-home benefit concessions to temporary resident employees who are living away from a home outside Australia and they regard as having an ‘advantage’ in receiving tax-free income over Australian workers The ability (in some circumstances) for employees to access large amounts of tax-free remuneration which exceed actual costs incurred. So what are the changes to LAFHA? The Government has announced proposed reforms which are intended to apply to both new and existing arrangements from July 1, 2012. In essence, the reforms will require all employees to: Substantiate their living-away-from home expenses For temporary residents to qualify, they must be living away from an Australian home which they maintain. Furthermore, benefits paid as a living-awayfrom-home allowance (LAFHA) will no longer be considered a “fringe benefit” and will therefore be subject to income tax in the hands of the employee. Employees who are Australian permanent residents will be able to claim an income tax deduction for the cost of accommodation and additional costs of food incurred whilst living away from home. The accommodation deduction must be substantiated for example by lease agreement or rental receipt. The Government has indicated that substantiation will not be required for food expenses up to an amount considered reasonable by the Commissioner of Taxation. A temporary resident holding a temporary visa, ie a 457 visa for skilled workers, will be taxed on a LAFHA if they are living away from

their home country and will only be able to access a deductible LAFHA if living away from an Australian home - for example if a UK resident moves to Sydney they will not be eligible for a tax-free LAFHA but if required to temporarily move from a home in Sydney to Brisbane they may qualify for a tax-free benefit. What impact will the changes have on Australia’s looming skill shortage? Notwithstanding the positive aspects of working in Australia, our cost of living is relatively high on a global scale. In addition, skilled temporary residents may not be eligible for Medicare benefits, must pay fees for public schooling for their children and often pay the costs of maintaining a home in their own country. It is not realistic to assume that employees would choose to live away from home unless they are remunerated or otherwise adequately compensated to cover any additional costs of living – and previously the tax concessions means the costs could be incurred by the employer with no additional tax cost. Tax concessions, such as a LAFHA, have been a crucial factor in attracting talent, in effect getting the employee ‘over the line’. Without an incentive, or at the very least a

The payment of a living away from home allowance (LAFHA) for accommodation and additional food costs is exempt from FBT and exempt from income tax in the hands of the employee.”

method to reduce the financial burden of employees who are living away from home, there is a significant risk that skilled migrants will choose to work in other countries - in particular countries with similar tax concessions designed to attract talent such as nearby Asia Pacific English speaking countries either with a lower tax rate or lower cost of living (ie Singapore, New Zealand or Hong Kong). The removal of the tax concessions would mean that businesses would need to increase the employee’s remuneration – resulting in a higher cost to business. We agree that reform of the LAFHA rules is needed to ensure that only those genuinely living away from home should be able to access the tax concessions. However, is the proposed discrimination against Australian businesses from hiring overseas workers the answer? Questions for Australian businesses: Do you have trouble attracting Australian talent or need to fill skill shortages from overseas? Can you afford to increase remuneration to attract overseas employees to fill your skill shortages? If you can’t fill a skill shortage due to our higher cost of living – what will that mean to your business? Will you have to outsource skills to overseas businesses, for example call centres in India? Another side effect of the proposed changes – increased employer compliance and on-costs Businesses should also be aware that to the extent that a LAFHA is now taxable for FBT purposes or paid as an allowance it will be considered wages for both payroll tax and Workcover purposes. Where the LAFHA is paid as an allowance, the allowance will also result in an increased Superannuation Guarantee obligation for the employer. If you would like to discuss any of the content in this article please contact Roan Fryer, Deloitte Western Sydney Tax leader: 02 9840 7374 or Elizma Bolt, Partner FBT 9322 7255. Kate Hill is a partner at Deloitte Private based at the company’s western Sydney office at Parramatta. Contcat her at 02 9840 7021.

Skilled migrants be used to fill short-term skill gaps but also can be utilised to develop and train local workers and implement best practice based on their global experience.” WESTERN SYDNEY BUSINESS ACCESS MARCH 2012

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OPINION

www.wsba.com.au

New options for business education THE qualifications marketplace in Australia seems to get more crowded year by year. How well do businesses understand the bewildering array of diplomas, certificates, degrees and other credentials that prospective employees present with?

By Professor Stuart Campbell ne qualification that is gaining ground is the Associate Degree, a two year (or part-time equivalent) course that has shoehorned itself into a space somewhere between the Higher Diploma and the Bachelor Degree. But identifying the exact space the Associate Degree occupies in the qualifications market is not so simple. The best starting point is the Australian Qualifications Framework. The AQF defines the whole array of credentials from school through vocational education and training (VET) to higher education. Qualifications are assigned a level from 1 (Certificate I)) through to 10 (Doctorate), and the learning outcomes criteria and notional duration are described for each. While the AQF may seem dauntingly complex, a basic understanding is a must for businesses engaged in recruiting and staff development. While some qualifications are offered principally by a specific sector, for example the School Certificate by schools and the PhD by universities, the Associate Degree straddles the VET and higher education sectors. In this respect it plays an important role in softening the boundaries between the sectors and making the transition from VET to higher education study easier. The notion of cross-sector transition is based on the principal of articulation, which allows a qualification from one sector, e.g. a VET Diploma, to be counted for credit in a Bachelor Degree.

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The Associate Degree was adopted by the AQF in 2004 and has been slower to get a foothold in Australia than its UK and US counterparts. In Britain, the two-year Foundation Degree is offered in hundreds of fields, and often includes workplace learning. The US Associate Degree is usually the equivalent to the first two years of a four-year junior college degree; paralegals, for example, commonly hold an Associate Degree. In both the UK and the US, these two year degrees can be “topped up” with university study. The slower start to the Associate Degree may be partly due to the strength of Australia’s

Education Minister, Adrian Piccoli.

system of VET qualifications compared to the UK and the US. The VET Higher Diploma is well entrenched as the credential that does the heavy lifting at the technician and paraprofessional level. In the AQF, the VET Higher Diploma and the Associate Degree are both at Level 6 and the learning outcome criteria of each are very similarly worded, although the Associate Degree

places more emphasis on underpinning theory and may be half a year longer. Employers would be entitled to ask why we need another qualification when the Higher Diploma is so widespread and has such high acceptance. In practice, four factors seem to make the Associate Degree distinct: accessibility, innovation, integration with work, and transition to a Bachelor degree. These three NSW examples each combine at least two of those factors: The Associate Degree in Policing Practice offered by Charles Sturt University meets the NSW Police requirement for a Higher Education credential, but is accessible to a wider range of applicants than a Bachelor Degree. Components of the course are undertaken through residential training at the Goulburn Police Academy. The Associate Degree in Creative Industries offered by the University of Western Sydney provides an innovative credential for an industry where students need to integrate study with diverse types of work. Entry criteria include three years of industry experience. The Tertiary Pathway to Accounting Strategic Alliance in NSW entails a partnership of TAFE, universities and industry bodies, with students able to progress from a TAFE Associate Degree to a university Bachelor Degree in Accounting. Launching the Alliance in 2011, Minister Piccoli said that the program would offer “an ad-

Honesty is the new niche “NOT only can a man be honest and grow rich, but it is almost impossible for a man to grow rich unless he is honest.” J. J. Cor

By Amanda Rose ould you believe it, honesty is now considered a niche service and strategy implemented by the leading (and soon to be leading) businesses.

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Consumers and clients have been “once bitten twice shy” so to speak, with the level of trust depleting by the minute through false claims, tricky marketing and sneaky sales strategies. The most common form of dishonesty in the world of business is deception and thanks to CHOICE magazine’s Shonky Awards we are made aware of just a fraction of these cases. Short cuts and sharp dealings to quick success are not smart practices on which to build a successful business. They can ultimately lead to failure. A tragic and recent example of a brand that damaged the trust of their market was Nurofen. By using the exact same pain killer but packaging it differently, giving the impression one needed a different name for a different pain (and at different price). I recently heard Michelle Ahern, previous Brand & Marketing specialist for The Wiggles

say “honesty is the best policy” when dealing with business and especially when communicating a brand. A perfect example of this was when the original “yellow Wiggle” had to leave due to illness. Everyone seemed to be in a panic and weren’t sure what to do or say. Michelle reiter-

ditional, accessible pathway to higher education, which is especially important for people facing disadvantage, including low SES, and Indigenous Australians”. The key to acceptance of the Associate Degree is acceptance by employers. Here are three things that Western Sydney business owners and managers can do to get involved: Get informed: Learn the basics about the AQF at www.aqf.edu.au . Find out what Associate Degrees are available to employees in your industry; Get represented: Universities and colleges rely on industry input into the development and update of courses. Find out who represents your industry on university and college advisory boards, and make your voice heard; Get creative: If you are in a new or rapidly changing industry where there is no relevant credential, make a proposal to your local university of college. Just like industry, our educational institutions thrive on innovation, and the Associate Degree is set to become a qualification that pushes the boundaries. Emeritus Professor Stuart Campbell is a former Pro Vice-Chancellor (Learning & Teaching) at the University of Western Sydney. Contact at him at info@stuartcampbellconsulting.com Disclosure: Stuart Campbell is a member of the TAFENSW Higher Education Academic Board and a non-executive board director of UWSCollege.

ated her honesty policy and said “just tell the truth and people will understand” and they did. We all know how successful the Wiggles became. Of course, the contrast occurred when the original yellow Wiggle recently returned, displacing the substitute. Michelle had moved on by then, and it seems without this commonsense approach the Wiggles were left a little lost when they went public with different stories, all of which made the “brand” look cold and cruel towards their colleague. William Shakespeare said “Honesty is the best policy” and it still stands today! If we practice honesty in our business dealings as well as in our personal affairs, we may find many will help us to build our business, paying handsome dividends. So honesty, how are you going with your business? Feel free to let me know your experiences. Amanda Rose is a connection specialist who runs My Business help radio program on Alive FM 90.5FM. Contact her at amanda@amanadarose.com.au

WESTERN SYDNEY BUSINESS ACCESS MARCH 2012


celebrate the west 2

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You are invited to an exclusive business lunch with Bryan Brown

to celebrate some of Western Sydney’s brightest stars and raise funds for San Miguel Family Centre.

Venue WatervieW in Bicentennial Park, Sydney Olympic Park Date

Friday 16 March 2012

Time

12 noon

Enjoy a fantastic afternoon with superb food, entertainment and inspiring stories.

Our Champions of the West Entrepreneur - Rowen Szeszeran, racing legend Ken Callander, rugby league great - Phil Gould, boxing champ - Jeff Fenech and Blacktown Mayor - Alan Pendleton.

Entertainment Tex Perkins will perform and Vince Sorrenti will host a live auction with attitude. Celebrate the West Patron - Bryan Brown

2012 Champion of the West - Phil Gould

Raising funds for the San Miguel Family Centre San Miguel Family Centre in North Richmond provides short term accommodation to families who are in crisis and experiencing homelessness. Caring staff offer support, counselling and guidance to help families tackle the issues creating their homelessness. Parents receive support to improve life skills such as budgeting, cooking and communication and children receive support from child development workers to enter the local schools and return to education. San Miguel Family Centre is a service of BoysTown.

Book a table today gold table

silver table

individual ticket

$5,000 per table

$1,750 per table

$200 per person

To secure your booking contact San Miguel on 02 4579 6622 or email sanmiguel@boystown.com.au WESTERN SYDNEY BUSINESS ACCESS MARCH 2012

17


OPINION

www.wsba.com.au

Chambers open doors to advocacy A KEY role provided by chambers of commerce is providing the business community with a service of an advocate or an ambassador.

By Narrelle Stoker his means taking issues on behalf of the business owners to the relevant people of influence and decision makers to broker a positive outcome. At the Cumberland Business Chamber we take this very seriously and have campaigned for many years on a wide range of issues. These include the new fire station at Cabramatta/Canley Vale and the redirection of heavy vehicles away from school zones and residential areas in Smithfield. With a 25 year track record in the Cumberland district we have been able to build invaluable relationships at local and state government levels on both sides of politics. Testament to these efforts was the invitation we recently received from the state government

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to an invitation-only meeting with a select group of ministers Six ministers made themselves available to meet a maximum of six people each and the Chamber was selected to see four of the six. We tabled a number of documents including an important infrastructure challenge which will have an effect on many thousands of vehicles every day, plus a proposal for the government to launch a revolutionary new initiative that can prevent businesses in the greater west from going bankrupt and leaving people without jobs. We met with Brad Hazzard, the Minister for Planning & Infrastructure and Minister assisting the Premier on Infrastructure, Katrina Hodgkinson, Minister for Primary Industries and Minister for Small Business,Andrew Stoner the Deputy Premier, Minister for Trade & Investment and Minister for Regional Infrastructure & Services, and Treasurer Mike Baird. From time to time I meet a business person who is not aware of the benefits of a business chamber. They might have turned up to a networking event once, didn’t find any new clients, and therefore wrote it off as a waste of time. Chambers are an invaluable business building tool because they provide an environment for trust to develop. Finding new customers and making a sale is all about trust. We like to do business with people whom we respect and will look after us.

Treasurer, Mike Baird.

Blacktown business stimulus Cumberland Business Chamber has announced the introduction of additional networking and advocacy initiatives to encourage more business growth in the greater Blacktown area. In addition to our existing calendar of events we will start After5‘s in the heart of the region in March. The first function is on Tuesday, March 20 at 5.30PM and will be followed by another on Tuesday, April 17 at the same time. After5’s provide business owners with an op-

Rude people are taking over SIMPLE courtesies are expected, or in fact taken for granted in our day to day dealings with people we meet, some who are our friends, our family and some who are strangers to us.

By Jill Woods es, we all seek courtesy and are quick to comment and feel annoyed when appropriate manners and behaviour is not forthcoming. We, those of us who rightly anticipate these general courtesies should then surely be representative of the majority of the population, isn’t that fair to assume? Aren’t we nearly all a decent lot of folk? So based on that assumption, it would seem we should all be able to go about our everyday activities interacting in some form or another with lots of other nice people. We also return phone calls and emails in a timely fashion as is required of good business manners. How come if this is a realistic perception, certainly our preferred and oft stated choice, why is it there seems to be more and more rude and discourteous people regularly crossing our paths every day?

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Take driving on our roads for instance to provide some quick examples to highlight my point. Red lights almost seem an optional choice these days, rather than an absolute must obey by stopping, which I understand is still the law in NSW. Probably some pretty good data around too, backing up why red lights matter. Whatever happened for people to ignore red lights in the first place.

Are not our newspapers and tv’s plastered with visions of carnage for those who failed to heed the signals. Amber ones of course count for nothing, merely heralding the need to flatten the accelerator and keep moving. More often than not these days many drivers take these actions with others of the same mindset. Rules are for others not them. My other favourite of course is vehicle indicators. They too are now so optional when you see them used it is quite something.

portunity to promote themselves and to meet potential customers, suppliers and strategic alliance partners. They will be led by President Craig Hingston, Treasurer Victor Prasad and committee member Rob Waddell who all work in the Blacktown area. The venue for the Chamber’s events is the Outback Jacks Bar and Grill on Blacktown Road. Narrelle Stoker is general manager of the Cumberland Business Chamber. Contact the chamber on 9757 4794 or email manager@cumberlandbusinesschamber.com.au

Once upon a time indicators would do just that - indicate the intention of the person using them. Why is it, these common courtesies especially on the road, where surely obvious safety is paramount is just rapidly disappearing? The rules don’t seem to apply to everyone anymore apparently, just you and me! So who determined when the rules stopped applying? Why is this mentality, this arrogance and total disregard for others increasing and being allowed to continue? Unacceptable manners, courtesies and civil practices invade us all, often in the workplace and certainly in our personal spaces. It is not just witnessed daily on the roads or using other public transport. People are rude at shop counters or in queues, pushing ahead of others quietly, patiently waiting their turn. Of course we can pause to blame everyone else but seriously if ‘we’ don’t begin to seek positive changes to these unacceptable behaviour patterns in all walks of our lives then heaven help us. You have rules or guidelines in your workplace - I bet you do! So why is this behaviour not transferable across our everyday society? In the meantime those who do consider the needs and rights of others will continue to be confronted and affronted by this growing selfish mentality. We can all contribute to positively changing this increasing ‘all about me’ mindset. Let’s practice what is right and appropriate and display courtesies once popular. Libraries and bookshelves are full of published works about good manners and behaviour in the past. Let’s revive them. Who knows, if enough of us do the right thing, it just might catch on and become the new trend;let’s hope. Good manners, best practice! Jill Woods is CEO of Penrith valley Chamber of Commerce. Contact the chamber on 02 4725 0303.

WESTERN SYDNEY BUSINESS ACCESS MARCH 2012


NEWS

www.wsba.com.au

We are a nation of entrepreneurs AUSTRALIA has cemented its position as one of the most entrepreneurial nations in the world, with a new study showing 10% of Australians were involved in the setting up or founding of a new business, just behind global leader the United States. By Craig Hingston he report, conducted by the Australian Centre for Entrepreneurship and the Global Entrepreneurship Monitor, studied 54 nations including 23 developed countries and found 12% of US respondents were setting up or owned a newly founded business. But Paul Steffens, associate professor at

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the Australian Centre for Entrepreneurship at Queensland University of Technology, says the Australian finding is surprisingly large.The 10% refers to people in the process of starting up or have started up already. In another key finding, Australians are more likely than people in the US to set up a business out of choice, rather than necessity, at 21% versus 15%. Steffens says Australia has an “entrepreneurial culture”.

“We always think of the US as the bastion of entrepreneurship, and on just about every dimension we’re remarkably similar,” he says. He says Australia’s conditions and culture are about right for new businesses. “There’s support by Government agencies. The barriers to starting a new business are very low, and the administrative burdens are reasonable, although many might not agree. “There’s also a reasonable investment in education that provides for opportunities, and business support networks.” “And along with the entrepreneurial culture, there’s an element of legitimacy for early-stage businesses within the business community,

Work starts on Epping upgrade REJUVENATION works to the Epping Town Centre have started and are expected to improve accessibility and public amenity. arramatta Lord Mayor, Cr Lorraine Wearne, said that Council had committed about $900k to the project, with total works expected to be completed by the end of September 2012. They include an upgrade of the footpath pavement and kerbs along Beecroft Road, Bridge Street and High Street. New widened access pathways have been proposed between Rawson Street and Boronia Park, in addition to nearby landscaping, tree planting, bike parking and seats.

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Council will also carry out minor works at the intersection of Bridge and Rawson streets, which includes new footpath construction, kerb ramps and minor landscaping. “Once complete, these works will deliver a high quality, attractive and distinctive town centre, which will benefit business and the wider community,” Cr Wearne said. Recent works have also been completed in Dundas, Granville and Guildford. Council has held meetings with the Epping RSL Sub-Branch

Epping railway station.

and Boronia Park Committee as part of plans to upgrade the Boronia Park Memorial.

which has been building for some time.” Steffens says although Australia’s sound performance during the global financial crisis has played a role in the high number of early-stage businesses, the economy is “not as rosy as we might think.” “The two-speed economy is very real, and we are being propped up by the resources sector,” he says. In total, 54 countries participated in the study, which is based on a survey of 2,000 people from each country. The study also found that an equal amount of men and women were involved in young businesses. Australia was the leader among developed countries for female participation, with 7.8% of adult of women involved in setting up a new business or owning a newly founded business. But it’s not all smooth sailing. Women were less likely to be involved in high-growth areas of IT and resources and also had more modest growth ambitions than men. Just 24% of Australian female entrepreneurs said they wanted to grow their business to larger than five employers over the next five years, compared with 42% of male entrepreneurs. Similarly, just 6% of Australian female entrepreneurs sought to have a substantial share of customers from international trade, versus 13.7% of men. Steffens says women’s more modest growth targets might be a reflection of their changing family responsibilities. Women were more likely to be involved in the retail and services sectors. Rob Pirina, the archetypical entrepreneur: Page 22.

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FEATURE

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Aviation sector prepares for worst

AUSTRALIA’S airline industry is taking plenty of hits. Market volatility, intense competition, the corrosive affects of skyrocketing jet fuel prices and the impact of wild weather are all creating hard landings for carriers. hile Australian airlines Qantas and Virgin Australia have already made significant cutbacks to survive – including the mid-February announcement by Qantas that it will eliminate 500 jobs in catering and engineering – they are preparing for the worst. Aviation is one of the fastest-growing sectors of the world economy. Over the next 20 years more than 27,000 new aircraft will be delivered and the number of air travellers will double to 9 billion over the same period. However, airline companies are predicted to be among the biggest casualties of climate change as their output of greenhouse gas emissions grows quickly with the unprecedented demand for air travel. The aviation sector will be significantly affected if it is forced to absorb further cost increases, including, most outstandingly, the carbon tax in Australia and a controversial tax on emissions for foreign carriers when flights takeoff or land in Europe. The latest Euro-tax with the aim of environmental protection, is distance-based, ensuring that skies are definitely scarier for carriers making long-haul flights from Australia and New Zealand. Qantas, Australia’s flagship carrier, has made it very clear that escalating costs pose a significant financial risk. In the short-to-medium term, the aviation sector is working hard to cut emissions by making incremental improvements to existing fleets, taking weight off aircraft to lower resistance in flight, buying more efficient aircraft and working with alternative jet fuels that produce lower carbon emissions. Qantas has 50 Boeing 787 Dreamliners on order, which it says will consume 20% less fuel than similarly sized planes, while its existing fleet of Airbus A380s, newsworthy for operational

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glitches, is also prized for its fuel efficiency. Beyond climate change regulation, airlines also face exposure to major physical risks. Fierce storms have now moved to the top of airlines’ risk agendas in the face of continued natural catastrophes. Scientific evidence suggests not only is the severity of weather events such as tsunamis, flash floods and typhoons increasing, but also the frequency. Changes in weather patterns – temperature, wind speed, direction and humidity – determine aircraft performance. Extreme weather events or even changed weather patterns can affect the jet stream (fast-flowing air currents) and cause severe disruption to flight schedules. Flying around a major weather event burns more fuel, so costs rise as aircraft change course to avoid more frequent extreme weather events. Beyond the expense of additional fuel, changing flight tracks poses a major financial risk for airlines due to related disruptions – chronic delays and cancellations, including the cost of accommodating stranded passengers. Transport chaos is predicted to become common. “The risk could be massive; we just don’t know how massive,” says Justin Wastnage, national aviation manager of the Sydney-based Tourism & Transport Forum. “Airlines can’t do much about bad weather. But to some extent the problem can be dealt with by developing more efficient operational practices and better traffic management. That means better aircraft landing procedures and more flexible flight paths.” Switching engines to idle Historically, planes have flown pre-determined routes. They flew in a straight line between beacons or “way points” to ensure they were on track. Many of these routes have stayed the same despite technological advances.

Following these routes often meant planes “fought” against the wind. Now, with more direct routes, more flexible flight paths and smaller separation limitations between aircraft in flight, pilots can use the weather system and take into account jet streams and prevailing winds. Commonly, airlines now hold aircraft on the ground prior to departure – rather than in the air – if delays are anticipated at the destination airport. However, the big money saver is “the new landing”. Pilots used to rev the engines to make a stepped descent before dropping altitude and queuing for landing. Now, there’s a move for them to save millions of litres of fuel by shifting engines to idle when descending into airports, before gliding onto the runway on a straight path.

The new landing is facilitated by navigation technology called Required Navigational Performance (RNP), which directs planes departing or entering the airspace around airports to fly on pre-programmed computer-plotted routes. Some features of the RNP system are already used at airports in Europe, Canada and Australia, and RNP trials are being held globally as companies seek to reduce fuel burn. RNP saves Qantas an estimated A$20 million annually in fuel costs, according to John Valastro, Qantas’s head of business resilience and environment. Each RNP descent is estimated to save 3596kg in carbon emissions. “A lot of the new aircraft we purchase have this capability,” says Valastro. Continued on page 21

» Improvements to air traffic management have been slow. Generally flight paths are fairly inefficient and could be improved.”

WESTERN SYDNEY BUSINESS ACCESS MARCH 2012


FEATURE

www.wsba.com.au

Qantas, Australia’s flagship carrier; has made it very clear that escalating costs pose a significant financial risk.” Continued from page 20

Qantas has been one of the leading proponents of optimised flight planning since its introduction in 2004. “Being long-haul flyers, we had to invest in RNP quite early and once you start developing that skill you start applying it to regional and domestic flying,” explains Valastro. “Obviously, the law determines how we fly as well as the conditions at the time.” Given Qantas is one of Australia’s largest fuel users – consuming 4.6 billion litres of jet kerosene per year – improving fuel efficiency is a major part of the carrier’s environmental strategy. But Wastnage believes improvements to air traffic management have been slow. Generally flight paths are fairly inefficient and could be improved, he says. Better air traffic management could cut fuel burn by 20%, suggests Wastnage, although savings are difficult to calculate. Weather events are unforeseen and it is not possible to forecast how much fuel will be used to escape a catastrophic event. Science is not advanced enough to understand the full impact of changing weather on airlines and the regions they service, says Ben McNeil, a senior fellow at the Climate Change Research Centre at the University of New South Wales. “Some routes would make flying more costly if jet streams slow down or not, but others would make it easier to fly. The pattern is not solid enough yet.” In the interim, adopting new radar technologies and algorithms for optimisation makes sense. Larry Dwyer, an expert in tourism economics at the Australian School of Business, notes that technology can only make incremental advances in fuel efficiency. “Airlines cannot come up with a whizz bang engine. But they can cut costs by looking at more innovative traffic movement in the air and less time circling around airports,” he points out. Flying in the face of uncertainty Companies must forge ahead with risk management programs in the face of uncertainty. The trick is having the ability to adapt and change direction swiftly. Adaptive techniques are required to identify and manage potential risks without focusing too heavily on one type of risk. “Climate change as a risk is evolving – as are other risks – so it’s about being very active in monitoring and adapting quickly to the environment,” says Valastro. “We can try to anticipate and, importantly, be open to the possibility that change is coming. Rather than saying, ‘I can’t believe another weather event is happening’, we recognise and acknowledge the environment we are in and know how to adapt to it.” The prevalence of severe weather events meant Qantas has had many opportunities to test scenario analysis. “We use scenario testing to check what might change the way we operate and how flexible we can be,” says Valastro.

While David White, Virgin Australia’s manager of sustainability and climate change, acknowledges the potential for flights to be affected by more frequent and severe weather events, at this stage there is not enough information on the extent of any change and when it would occur. That makes forecasting the impact difficult, particularly as any after-effects could be mitigated by other factors, such as alternative fuels. To Virgin Australia and Qantas, sustainable alternatives to traditional jet fuel will be essential to long-term sustainability. “While we will continue to fly as efficiently as possible using traditional fuels, in light of the fact that passenger numbers continue to grow markedly worldwide, biofuels are the key to achieving significant emissions reductions,” White says. The technology already exists to produce plant-based fuels but the next step is producing the required quantities at the right cost. It’s early days. Virgin’s biofuel partners have 13,000 hectares of mallee – small eucalyptus shrubs and trees native to Australia – in the ground in Western Australia, but essential work is still to be done on the supply chain to ensure fuel made from the plants can be delivered sustainably at the required volumes and price. A number of airlines have flown commercial flights with alternative fuel blends primarily to get stakeholders comfortable with the concept. “There is still a lot of work to be done to ensure that not only does conversion of biomass to fuel make economic sense, but that we are also able to produce the right quality from sustainable sources,” says White. Dwyer believes the lack of a commercialscale low-emissions alternative fuel market is stopping the aviation sector from switching to low greenhouse-gas-emitting operations. And McNeil agrees. Strategically, advanced bio-fuels seem like the only technology for the long-term. And, creating efficient planes and non-oil renewable fuels that aren’t dependent on geopolitics and price shocks would be an enormous economic advantage for whoever gets there first. “The airline business is one of the most technologically inelastic areas to make big revolutionary changes towards clean technology, as the car industry did on hybrids and electrification, for example,” says McNeil.

WESTERN SYDNEY BUSINESS ACCESS MARCH 2012

Australia has well-defined seasons, but any change will mean tourism companies will have to become more strategic with their marketing – altering flight schedules and pricing in the different seasons.” “Toyota and Honda did it for cars and reaped the rewards. The question is, who will be the first for airlines? The race is on. The US military is probably the place to look to, since they use 7 billion litres of fuel annually. They have already flown many of their jets on biofuel and are retrofitting them all to potentially run on biofuels by this year with the aim to have 50% fully run biofuel jets by 2016.” Destination reputation The highly visible nature of the aviation sector makes it vulnerable to reputation damage, even if such attacks are disproportionate to the sector’s overall greenhouse gas contribution. This negative view was inflamed by Australia’s lateness – 44th in the world – to introduce a carbon tax. Australia has a comparatively low profile in world news. Only major events, such the Queensland floods, receive overseas news coverage. As debate raged in Australia over whether to introduce carbon mitigation measures, the overseas coverage (limited as it was) was reporting that some Australian political parties did not believe the climate change science. Due to the protracted debate, the eventual passing of legislation for a climate tax in November 2011 did receive coverage. However, many suggested Australia looked like a laggard, and that perception may stick in the minds of potential visitors. The threat of tourism numbers shrinking poses a serious problem for the airline business.

According to Nina Mistilis, from marketing at the Australian School of Business, the impact of climate change on tourism is already being felt. “It’s not just the actual event, such as the (2011) Queensland flood, that affects tourism, but the images of those floods projected around the world made people think the whole state was flooded,” she says. Other countries have better organised media handling as part of their tourism risk management process, Mistilis points out. Immediately they distinguish between affected and unaffected areas. “Many Asian countries are well prepared here. For example, after the 2004 tsunami, the Thais promoted the beaches that weren’t destroyed, including large parts of the beaches in Phuket. We need to be more proactive, because in Queensland the wrong message got out unintentionally.” The tourism sector faces climate change challenges globally. Changing snowfall patterns and the resultant huge cost in relocating ski resorts and infrastructure is one. The erosion of beaches on tropical island destinations – as well as hurricanes or typhoons wreaking havoc with planes flying those routes – is another, while airports located on low-lying coastal land face the risk of inundation by heavy rain and storm-surge events. Qantas and Virgin’s economic future is intrinsically linked to preserving the earth’s natural assets. Australia has well-defined seasons, but any change will mean tourism companies will have to become more strategic with their marketing – altering flight schedules and pricing in the different seasons, Dwyer suggests. “Given its topology, bush fires and tropical cyclones, Australia will be one of the biggest losers. It has a huge coast and increasingly higher shorelines. And our airlines depend more on tourism than business travel.” Australian airlines have weathered the “constant shock syndrome” well. The phrase was often used by former Qantas chief Geoff Dixon as he steered the carrier through the vicissitudes of 9/11, SARS, bird flu and a currency crisis in Asia. Then came a global financial crisis and massive escalation in jet fuel prices. Now, as they face a global economic slowdown, it’s tougher than ever to be a long-haul carrier. ARTICLE COURTESY KNOWLEDGE @

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ENTREPRENEUR

www.wsba.com.au

Rob’s School of Street Smarts HE’S the archetypical entrepreneur; charming, energy pouring off every word and a sense of self-destiny that only comes from the University of Street Smarts with Honours in Hard Knocks. ob Pirina, owner of the Glenorie Bakery and the Outback Bakehouse at Windsor walks the talk. Sure, he’s not in the big league with a national chain of franchised stores, but that may come later; he’s barely 30. What’s important is that Rob’s businesses are successful and he built them from the ground up using a home-spun philosophy of business success based on giving back to your community. Rob spoke exclusively to WSBA editor, Mike Walls about what it takes to be a successful entrepreneur. Rob how would you define the qualities that have made you successful? Thinking outside the square is essential Michael, a perfect example of this is recently with the floods at the Hawkesbury river, the region was inundated with tourists flocking to see the action, I decided to make the “Rising River Pie” at the Outback Bakehouse one of my bakeries in Windsor, now not only did we sell hundreds of these pies over the weekend but we raised awareness of our brand to millions of people through channel 7,9 and 10 we also received a half page write up in the daily telegraph and multiple radio interviews with 2gb ABC radio and more, to talk about this “Pie”. As a business owner its these type of opportunities you need to pounce on, as they don’t come around to often if ever. Individuality in this type of market is the key and over the years we have set the bar quite high with our quirky marketing techniques, this has really sets us apart from others trading in a similar business. Being a young person in a market where there are more mature people who are in competition to me – for example I have the big players trying to knock me of my perch and put me out of business. But it’s the fund raising, putting back into the community which has been our untouchable point of difference. It’s no longer about how much money you make it’s more about how much you put back into your community and we put a lot of effort into this type of support and it has been very rewarding for us and business. So there’s connection between bottom line and giving?

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Rob at work in his bakery.

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There is a connection to the bottom line. A lot of people can’t understand the spending of five or 10 thousand on an event ….sure it’s going to raise money for charities, but at the end of the day it’s a mini investment within your community and if others could get their head around that type of investment it would be so much easier for them to do business successfully in their community. We work in a network of regional style communities and a good comment goes a long way - bad ones go further - but good ones go the distance. In today’s world business people in the city appear a little lost, in that they don’t have a community; they don’t have that gelling feeling – I have mates who have businesses in the city and its very hard for them to get involved in their community so its hard to work this business model in the city, but there is always other ways of doing business in the city. So what are the defiling qualities of an entrepreneur? Being an entrepreneur is all about personality and about connecting with your customers – if you can connect with your customers half the battle is won. I have a relationship with my customers that if I stuff up, they will come and tell me that I have stuffed up and give me a chance to rectify it. It doesn’t matter what product you are trying to sell if you can connect your consumers half the battle is won. It’s all about connection. I make a big effort at the weekends, I know a lot of people don’t like to work at the weekends but I love working the weekends; it’s a time when I get to spend time with my customers who are enjoying their free time. Weekend is the time to share with my customers, I sit down with them and make sure I am out their shaking hands giving kids cup-cakes and for me in my business that’s connecting with my consumer. Why do entrepreneurs fail? A lot of entrepreneurs fail because of preparation and not working on the project long enough behind the scenes – it’s about finding out exactly what can go wrong, and then multiply it by two – a lot of people show me business plans and want me to help them out and I say look at your

Rob Pirina with some of the many awards he has won.

turnover projections cut that in half. After all that if the plan still works your on a winner. People need to address worst case scenarios when creating a new business, this is key for success I am not conservative by nature mainly because I am in a position where I don’t need to be. I’ve made mistakes, I’ve set up businesses that have failed. a few years ago I set up a business and spent a lot of money doing so, I thought it would conquer the world It will change everyone’s lives. I pushed it really hard; great marketing, great effort, but had a bad business partner. I set up and funded the business, but fell short on my home work. I failed to visualise worse case scenarios. For example if my business partner fails what is my plan B? I didn’t have a plan B, I struck to plan A and I had nothing to fall back on which is business suicide and yes I lost money a lot of it, I guess it was it’s all part of the learning curve and it was cheaper than most business coach. What were your major lessons from failure? I learnt to stick to what I know. My father tried to teach me that back in the day and I would say: What do you know? But he taught me to stick with what you know unless you’ve done your home work and today that’s exactly what I do, lots of homework Right now I am focussing on my bakeries and some consulting for other small businesses. Currently both of these businesses are going very

well and I am very happy in the space I am in. Could you work for someone else? I could never work for a boss again. I started working for someone when I was a lot younger and I got treated and paid badly and worked like a Trojan, because I always give it my all. So I took it for a while, but eventually started my own landscaping business. I started this small business at the age of 18 and fresh out of school, then I was earning $60 an hour and had four five guys working for me. Some time later my father asked me to buy in to the family business and I did just that moved into the bakery business, I’ve never looked back. It’s opened many doors for me and given me a lot of satisfaction and recognition. How credible are business awards? I’ve won many awards that have meant absolutely nothing to a lot people, but whether they mean something or not to them doesn’t bother me at all, for I know their true value of to me. As a kid I was told that I would never achieve anything. I grew up believing I was going to be a failure full stop, from people around me, many of them were my teachers, who never believed in me. I became a bit of an outcast at school and copped a lot of crap, which sounds funny when looking back. At school I was a bit like a fish out of water I was only one or two Italian boys at the school which was tough, but my personality got me through - I didn’t let anything hold me down and I went to school every day swinging, literally. If I hadn’t gone through that process of copping a hiding I surely wouldn’t be the person I am today. I hated school, but I learn’t respect and family values too. I also learnt street smarts amongst other things. For example I’d go to Bali the family and bring watches back to sell to the other kids at school and then I found this fantastic chewing gum from states that I would sell for 20c a piece. They were the days no need for cash projections and profit and loss statements. How do you see Western Sydney developing? Western Sydney is buzzing. Look at the place; there are people investing, new businesses are opening up. I’d love to see us getting together as a community, yes that’s what I’d like to see; a business community who gives freely. If like me you too want to succeed in your business, I would love hear from you so that I could share with you some of the opportunities to help raise the profile of your business. Contact me at bakingyourbusiness@gmail.com

WESTERN SYDNEY BUSINESS ACCESS MARCH 2012


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PARRAMATTA CITY COUNCIL NEWS

Thoroughly Racing

AAMI

Easter Saturday 7 April, Rosehill Gardens

GOLDEN SLIPPER DAY

• Five Group 1 races including the world’s richest race for two-year-olds, the AAMI Golden Slipper • Myer Fashions on the Field with over $100,000 in prizes • See Jessica Mauboy live at the Slipper HQ Party

thesydneycarnival.com.au

nival.com.au

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WESTERN SYDNEY BUSINESS ACCESS MARCH 2012


PARRAMATTA CITY COUNCIL NEWS

Breathe Easy campaign launched in Parramatta Local dining patrons can Breathe Easy as Parramatta City Council launches its outdoor smoke-free campaign. he Breathe Easy smoke-free campaign is aimed at promoting community and business awareness in the lead-up to the prohibition of smoking in all alfresco dining areas Council controls, manages, or owns, from 1 May 2012. Cafes and restaurants in Parramatta will be presented with a resource kit, detailing Council’s recently adopted Smoking in Public Places Policy, along with marketing collateral and information about the new regulations. Eligible restaurants that choose to adopt the smoking ban before 1 May will receive six-months’ free lease on their outdoor dining areas. Two restaurants in Parramatta, The Bite and Nut N Fancy, were the first establishments to commit to the new policy and have already started to enforce the smoke-free ban in their respective outdoor dining areas. “Most people are aware of the impacts of second-hand smoking and as business own-

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ers we need to be responsible and attentive to the needs of our customers,” The Bite owner, George Barakat said. “It’s also pleasing that Council has actively engaged and consulted with businesses throughout this whole process, which will make the transition period a lot easier for owners, managers, and of course, our patrons.” Before implementing the new Smoking in Public Places Policy, Council surveyed residents, diners and businesses over a 12 month period to understand their concerns and impacts of the proposed ban. More than 900 participants took part in the survey, which found that 68% of residents and 60% of diners supported the smoking ban. “It’s understandable that some businesses were a little reserved after the smoking ban was first announced and concerned how it would impact their revenue,” owner of Nut N Fancy, Michael Barakat, said. “But this is something that the majority of

our community wants. If you look at the studies that have been undertaken and the findings from other metropolitan areas that have implemented a smoking-ban, you realise that this is going to be positive for the community and

your customers.” The new policy will also see smoking prohibited within 10m of children’s playgrounds, sporting fields, aquatic centres, sports facilities and bus and taxi stands.

NRL season to kick-start local economy The 2012 NRL season kicked-off earlier this month and for Parramatta this signifies the start of 31 weeks of increased visitation by sports fans from near and afar. lthough the Eels didn’t get off to the start they’d have hoped in their first round clash against the Brisbane Broncos, the good news for Parramatta fans is that they’ve still got another two games at home this month to get their NRL campaign back on track. Parramatta Lord Mayor, Cr Lorraine

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Wearne welcomed the return of rugby league and said the City carries a great vibe on game nights. “At maximum capacity Parramatta Stadium can hold up to 22,000 fans who may stay and explore Parramatta, eat at our restaurants and relax in our pubs and bars. The NRL is a major economy booster for the City,” she said.

In addition to an increase in visitation to Parramatta, the NRL season brings with it great opportunities for businesses to take advantage of the Eels corporate packages. There are a number of game day packages suitable for a range of budgets, starting with the premium Chairman’s Club packages, the middle range Corporate Suites and Open Air Corporate Boxes. Parramatta Stadium is one of the best grounds at which to watch Rugby League, with

corporate suites providing panoramic views of the entire field. There is also a range of one off corporate events that businesses have the opportunity to participate in, including the 2012 Presentation Night and a golf day, where teams can compete and mingle with Eels players. For more information on 2012 corporate entertainment options at Parramatta Stadium, contact the Pirtek Parramatta Eels on (02) 8843 0300.

The Lord Mayor’s outrageous hair needs your support he Lord Mayor and staff at Parramatta City Council will shave and colour their heads as part of the Leukaemia Foundation’s World’s Greatest Shave and are calling on the Parramatta business community to show its support by sponsoring their team. The World’s Greatest Shave fundraiser is being held between 15-17 March to raise much

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needed funds for the Leukaemia Foundation. The Lord Mayor, Cr Lorraine Wearne, said she is proud to be part of an event for such a great cause and encourages businesses to donate. “The Leukaemia Foundation provides invaluable support for patients and families living with leukaemia, lymphomas, myeloma and related blood disorders,” Cr Wearne said.

“By taking part in World’s Greatest Shave, staff and community members will help make a difference to the quality of life of those affected and help fund vital research into better treatment and cures.” You can participate by: 1. Sponsoring our team - Search online at www.worldsgreatestshave.com for team name

Parramatta City Council, or call Team Captain, Lauren O’Connell on 02 9806 5438 to get involved. 2. Attend Council’s event and make a donation on the day. The Lord Mayor and Council staff will be colouring and shaving their heads on Thursday, 15 March 2012, 12:00-1:00pm in Church Street Mall, Parramatta.

Content on these 2 pages is sponsored by Parramatta City Council in the interests of informing residents and businesses of Council initiatives and events. Any views expressed in these pages are not necessarily those of the editors of Western Sydney Business Access (WSBA) nor does WSBA accept any responsibility for claims made in these pages.

WESTERN SYDNEY BUSINESS ACCESS MARCH 2012

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BLACKTOWN

www.wsba.com.au

Blacktown faces CBD challenge BLACKTOWN faces significant challenges in transforming the central business district (CBD) into a desirable destination for the relocation of government departments and the construction of other new office development. By Red Dwyer hese challenges, according to a Blacktown City Council report, include current economic conditions, particularly the rising costs in construction which makes redevelopment cost prohibitive; high vacancy rates of lower grade office space in places like Parramatta increases competition; and the draft planning proposal for the CBD is yet to be finalised and tested in the marketplace. “These impediments makes it difficult for council in the short-term to attract small start-up businesses and small commercial operators to take up existing commercial space in the Blacktown CBD,” the report said. “Council therefore needs to consider taking a long-term perspective on this issue. Setting the foundations now is important so that when conditions change, Blacktown is well placed to take advantage.” The relocation of state government departments to Blacktown has been a long-standing issue dating back some years, with council making concerted efforts to see these relocations

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happen. Blacktown is one of the fastest growing areas in Australia where employment opportunities are needed to support that growth, the report said. Council made rrepresentations, for example, to the NSW government to have the NSW Police Service Headquarters and the head office of Sydney Water relocated to the Blacktown CBD Council was unsuccessful with both organisations relocated from the Sydney CBD to Parramatta. The report said council should continue to make representations for the relocation of government agencies. “However, before it does, and based on government feedback, council should explore new and creative ways to promote and market the CBD as well as to promote development opportunities to secure new highgrade office space that is attractive to large government agencies.” Blacktown has 15,000 square metres of NSW government office

Blacktown CBD.

space in the CBD and a further 25,000 square metres in the local government area.

This includes the Department of Attorney General and Justice, Department of Education and Communi-

ties, Workcover Authority of NSW, Corrective Services, Juvenile Justice, Housing NSW and Legal Aid NSW.

WESTERN SYDNEY BUSINESS ACCESS MARCH 2012


BLACKTOWN

www.wsba.com.au

Visitor focus in tourism stakes BLACKTOWN is not recognised as a major tourism destination but Blacktown City Council will implement a five-year plan to boost visitation and increase the sector’s contribution to the local economy. estination NSW (formerly Tourism NSW) considers it unlikely that Blacktown could meet the requirements to become a Sydney tourist precinct in the foreseeable fu-

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ture. “This is because it lacks a distinctive, cohe-

sive ‘experience’ such as food, culture or history and it is also surrounded by areas with stronger product offerings along with natural beauty and sites of significance or tourism ‘icons’.” according to the Blacktown City Tourism and Marketing Promotion Action Plan.

Eastern Creek Raceway

“However, at certain times, such as during major niche events including motorsport, sporting and other events, the city does attract such tourists to the award-winning Featherdale Wildlife Park, Eastern Creek Raceway, Sydney Dragway and Rouse Hill house and farm. “It is also expected that the new Wet n Wild theme park will also attract interstate and possibly international tourists once opened. “Overall, Blacktown City would benefit most from focusing on visitors rather than tourists.”

The plan said this meant focusing on maximising opportunities and increasing the average spend and length of stay of existing visitors, while increasing the number of visits from areas including the South Coast, Mid North Coast, Central NSW and Central Coast. Domestic overnight visitors average 57,000 annually, with domestic day visitors totalling 471,000 and International overnight 28,000 The estimated spend by a total of 656,000 visitors was $130 million annually.

Native animal are an attraction at Featherdale Wildlife Park.

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ACCESS Customer Service Insights Page 33

Why managers have more brain power MANAGEMENT presents ongoing and well-documented challenges, not least the need to deal with others’ demands and monitor their output. ut new research from the University of New South Wales (UNSW) appears to have uncovered a hidden benefit in later life from embracing the responsibility of rising through the corporate ranks – it boosts brain power. For the first time, researchers have identified a clear link between managerial experience throughout a person’s working life and the integrity and larger size of the hippocampus – the area of the brain responsible for learning and memory. It seems managing other people at work triggers structural changes in the brain, protecting its memory and learning centre well into old age. Using MRI imagery, on subjects between 75 and 92 years of age, scientists discovered that the rate of shrinkage (of the hippocampus) with age, in those with challenging careers, was much lower than those who were engaged in less complex, daily tasks. The findings refine the understanding of how staying mentally active promotes brain health, potentially warding off neurodegenerative diseases such as Alzheimer’s, says Michael Valenzuela, leader of the School of Psychiatry’s Regenerative Neuroscience Group at UNSW. “We found a clear relationship between the number of employees a person may have supervised or been responsible for and the size of the hippocampus,” he says. “This could be linked to the unique mental demands of managing people, which requires continuous problem solving, short-term memory and a lot of emotional intelligence, such as the ability to put yourself in another person’s shoes.” While you don’t have to be managing director of a top-performing company to get the cognitive benefits, Valenzuela says the brain-enhancing effect was particularly strong in those who had been in charge of more than 10 people. And while it’s men, statistically, who head some of the largest business empires, researchers also found that it wasn’t necessary to have followed a traditional management career trajectory to have a more resilient brain. In fact, larger hippocampal volumes were also seen in women who had taken on managerial roles in nursing or teaching, for example. These results align with research into ageing and employment by Peter McDonald, director of the Australian Demographic and Social Research Institute at the Australian National University and deputy director of the UNSW-based ARC Centre of Excellence in Population Ageing Research. A study of older workers by McDonald for the National Centre for Vocational Education Research, based on 2006 Census data, showed that, for men, as age progresses beyond age 65, managers and professionals make up increasing propor-

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tions of those employed, while technicians and trades workers, clerical and administrative workers, and machinery operators and drivers make up decreasing proportions. For women, the increase is also strong for those who are managers. This would seem to indicate that those at a higher level in their career, who are forced to use their brain to solve complex issues, are mentally active, as well as fully employed, for longer. “Cognitive ability is very likely to be a feature of people working longer at older ages,” says McDonald. “Certainly the reverse would be true (low cognitive ability would lead to people not working).” Hanging in at work These findings in the area of brain health are encouraging for Australian policymakers facing the challenge of a rapidly ageing workforce and escalating rising health costs. The recent Intergenerational report (2010) on population ageing estimates that between now and 2050, the number of people aged 65-84 years will double, and the number of people aged over 85 will quadruple. This will have a huge impact on the worker/non-worker dependency ratio. Currently, there are five working aged people for each Australian aged 65 years and over, but by 2050 this is set to drop to 2.7. One long-touted solution to the dilemmas presented by the ageing population is keeping older workers in the workforce for longer. Part of the challenge is maintaining

Staying socially active has previously been linked to a lower risk of dementia by researchers at the Karolinska Institute in Sweden. In 2009 it reported that socially active people who were not easily stressed had a 50% lower risk of developing dementia compared with men and women who were isolated and prone to distress. At a recent UNSW conference, Henriette van Praag, from the US National Institute on Aging, presented research showing a caus-

» Managing other people at work triggers structural changes

in the brain, protecting its memory and learning centre well into old age.” mental muscle: it is estimated that about 250,000 people in Australia have dementia but by 2030 that number may swell to more than half a million. Dementia is an umbrella term that refers to symptoms caused by changes in the functioning of the brain. These can include alterations in memory, personality and behaviour. UNSW is actively involved in contributing to the development of social policy for older citizens with brain disorders and promoting education about the brain and ageing through its Brain and Ageing Research Program, of which Valenzuela’s study was a part. The program, led by Perminder Sachdev, has been actively monitoring the cognitive function of 1000 people for five years, with various research objectives and outcomes. One of the most significant, yet to be published studies, shows that being socially and physically active, as well as mentally active, protects against cognitive decline, says Sachdev.

al link between exercise and brain regeneration, or neurogenesis (which continues throughout life, until the age of about 70), in the learning and memory centre in the brains of mice. “What is most exciting is that a cheap, simple, lifestyle intervention like exercise can influence the production and integrity of new nerve cells in the brain, which suggests our behavioural choices have influence over the functionality of our brains,” she said. “This is especially important as obesity rates continue to rise. And, as neurogenesis continues throughout life, the findings suggest significant cognitive benefits from exercise across all age groups.” How much exercise is required is uncertain though. Train the brain Actively training the brain is also beneficial. Acclaimed scientist and author Ryuta Kawashima, who developed Nintendo’s Brain Training programs, suggests the brain is a muscle like anything else – if you don’t

use it, it is going to get flabby and out of shape. Kawashima’s programs concentrate on what he believes are the most challenging brain tasks, including verbal, numerical and memory games – much like life in upper management. McDonald points out that international literature suggests a strong positive relationship between education and cognitive ability at older ages. In the debate about what causes, or prevents, cognitive decline, one of the most interesting concepts that may be especially relevant to senior professionals and others who function at a heightened cognitive level, is brain reserve. In a 2009 editorial in the American Journal of Geriatric Psychiatry, Sachdev and Valenzuela reported that “people with high levels of Alzheimer’s-type pathology in their brains escaped dementia and that this was related to a high count of neurons in the cerebral cortices”. They concluded from a meta-analysis of the literature relating brain reserve to incident dementia, including 22 studies comprising 29,000 individuals followed up over a median of 7.1 years, that higher brain reserve was associated with a lowered risk for incident dementia. The theory of a cognitive buffer, built up through complex mental tasks such as those involved in a challenging career, is moving rapidly from basic biology and epidemiology to clinical medicine, confirms Sachdev. Today, while managing directors or even mid-level managers are busily trying to stay ahead of the competition, they may be building up a brain bank that keeps their faculties above baseline. ARTICLE COURTESY OF KNOWLEDGE @

WESTERN SYDNEY BUSINESS ACCESS MARCH 2012


ONLINE PROFITS

www.wsba.com.au

How to attract, convert and get paid A RECENT NAB survey showed online retail grew 29% compared with a 2.5% growth in bricks and mortar retailers.*

By Camtu N Pham hether starting up a new business or running a well-established organisation, a professional and functional website is a firm financial asset. It will bring you advantages no other business tool can. If you are selling products or selling services, smart businesses know that their website is one of the first places their potential clients will go to ‘check them out’. Even consumers that aren’t there to buy will read about you and your business before they make that phone call or drive all the way to your shop front. In many cases, a prospect will check your site in her free-time – most often that is late evening. My suggestion? Have something in place for them to do. If your online business is automated, once your visitor sees what they want they

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can immediately place an order, make an enquiry, sign up for a newsletter or download some free information. Either way, your site logs their details so you or your sales team can follow them up. In the case of selling products online, they can immediately place an order and pay online at the exact moment they want that product the most For many businesses; the volume of online orders is well in advance of the amount of people that are walking in to the shop. With online sales, you receive the order notification instantly. By the time you arrive at your business the next day, the money is already in your bank account and the client has received a confirmation as well as receipt of payment. All you have to do is process the order! If you multiply this by even five orders, you have just saved yourself a few precious hours of creating invoices and replying to emails. Not to mention that you have five sales you would have missed had you not made your products available online. These days, it’s not about whether your

business should have a Website or not, it is about how you get the most of it, such as selling and accepting payment online, customer database, business process automation and more. If you want o fast track your business online and want to know the right ingredients for a successful online business, why not attend our course at North Parramatta on Wednesday, March 28 from 9:30am –

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1:00pm. Go to www.cleverlinktraining. com.au/parramatta or call 1300 721 837 to secure your place. Camtu Pham is the Managing Director at CleverLink. The CleverLink team can be contacted on 1300 721 837 or visit www.cleverlink.com.au * (According to NAB inaugural Online retail index published on 27 Feb 12).

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MAGAZINE - BUSINESS IMPROVEMENT

“Steer your business in the right direction �

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Integrity and success

2YHU WZR GD\V *DOORS 6ROXWLRQV¡ %XVLQHVV %RRW &DPS ZLOO HPSRZHU \RX ZLWK EXVLQHVV WRROV \RX FDQ WDNH DZD\ DQG XVH WR VWHHU WKURXJK WKH EXVLQHVV LVVXHV \RX DUH FXUUHQWO\ IDFLQJ R How to organize your company Dates: 13th & 14th April 2012 so you deliver the best possible product or service - walk away Place: Place: Leichhardt with a clear company structure R How to set up your basic Time: 2 days, 8am – 6pm company dashboard and start Check website for future dates - May, “drivingâ€? July, August, October, and November R How to use your company structure and dashboard to get If you would like to find out more, your key executives to be email rvertannes@gallopsolutions.com accountable and get things or register your your interest at: done, so you don’t have to do everything yourself www.gallopsolutions.com R How to have a happier team that works seamlessly together R How to attract qualified and competent staff, and keep them R How to have existing clients coming back for more, and keep new business flowing in R How to manage change smoothly as the company grows R How to have a happier family and work life balance <RX &$1 VROYH WKH GDLO\ SUREOHPV RI \RXU EXVLQHVV <RX &$1 JHW RXW RI WKH GD\ WR GD\ JULQG RI WKH RIILFH %XW WKHUH¡V RQH SRLQW you have to JHW LQWR WKH GULYHU¡V VHDW so you

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By Lindy McNocher “What is personal integrity? Surely we all need to have good integrity to survive in business? I will give you my understanding of this subject.“Personal Integrity is knowing what you know – what you know is what you know – and to have the courage to know and say what you have observed.â€? Why is this concept so important to assist you in making your business a success? Well look at it from this angle; you make decisions every minute of the day in business. You are given a lot of advice by people. But from my own experience, if you look at a situation thoroughly and observe properly and listen to that inner wisdom that is in your gut and have the courage to listen to that inner wisdom, you will usually ďŹ nd that you are right and the only time you run into trouble is when you don’t listen to that inner wisdom. It takes guts to do what you think is right and to not always listen to the advice. When someone you respect or someone you have hired who is apparently an expert, gives you advice, most often you feel inclined to listen and take that advice. It is very wise to listen and very wise to

look at what they have said in relation to the situation you are trying to resolve. But remember that the person giving the advice does not know every angle of the problem like you know it. You are the only one that has all the information and experience on the subject, and it would be nearly impossible for another person to have the same information you have. So when a problem arises, deďŹ nitely look and learn and get advice from people who have shown that they can get results in the area they are advising you, but only act on that advice if you feel it truly is the right thing to do to improve the situation. And once you have taken action, take the time to really look and see if the situation improved. If it did not, then look some more and learn some more! Get more advice, look for more information to help you, but only by continually looking and learning and keeping your own integrity in, that is to say, knowing what you know, and what you know is what you know and to have the courage to know and say what you have observed will you succeed in improving things. You are not in business to fail. You are in business to make your own life better. And remember that you are also making the lives of all the people that you work with better. By keeping your own personal integrity in, and having the courage to say or act on what is true for you, you are a step closer to making your business success a reality.â€? Lindy McNocher is the founder of Gallop Solutions. Visit www.gallopsolutions.com.au

WESTERN SYDNEY BUSINESS ACCESS MARCH 2012


MAGAZINE - SALES

www.wsba.com.au

When and why should we prospect? IF you don’t know what you are looking for, how will you know where and how to find it?

By George Mavros here isn’t a business I know of that stays static or is guaranteed of continuing custom from their clients. Even those that have contracts in place, only have that guarantee for the period of the contract and on the assumption that the client will still be in business and needing their ongoing services. So the answer to why and when - Simple because nothing is ever static and the client you have today – you may lose tomorrow. For me in any business I am involved with, I am either looking for extra business now or in the future but I am always looking for extra so I suggest prospecting is an ongoing process The first thing we need to understand is that prospecting is not about a guaranteed sale or an immediate new client. While this can happen sometimes, it is not the norm. Prospecting is about exploring the most likely opportunities for future success. Prospecting for me falls into two categories, the first being for prospective new clients and the second for relationships that may lead to me being introduced to new clients. Before we even start looking for new business, it would be very helpful if you actually knew what you wanted to go looking for. In the January edition of WSBA I introduced the MAVROS theory of Qualifying that is used in selling a product or service, it is related to the product or service that is being offered and it is answered from your client’s perspective. Below is the quick reminder of that;

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M = what product or service do they have at the moment? A = what is it about their current situation that annoys them? V = what do that value about their existing product or service? R = rate what are the biggest annoyances and the most important aspects? O = are their other considerations that will effect the sale going through? S = Strategy or solution or sale If you replace those questions with the ones below and look at it from your perspective, you will come up with what is the best strategy for you to seek out new prospective clients. Things you need to consider when reviewing your existing and thinking about your new clients are: Cost of servicing a client current and new. Profitability of the various clients you have or may obtain. The risk to your business of having too many small average earnings or for that matter too few high average earning clients. (Too many small ones may mean high cost of servicing- whilst just having a few large ones may risk you being in “too many eggs in one basket’ scenario, whereby if you lose the big one the whole business is in jeopardy.) What is the gestation period, sometimes referred to as the sales funnel time from first contact to acquisition of a new client by size / value? For example how quick can you meet and secure a new $1,000 client for your business and the same question asked for a $5,000 client Once you have answered the qualifying questions and have determined the sorts of clients from your existing mix that you value most, you can then set about a strategy to increase those types. Or maybe a twofold approach such as I increase the new ones that I value most, I will decrease the existing that I value least George Mavros is a business educator and sales professional. Visit www.leapoffaithtraining.com.au

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MAGAZINE - TECHNOLOGY WHAT’S POWERINGYOUR

Are the IT folks slacking off?

INFORMATION TECHNOLOGY SYSTEMS? ER POW M ST E HA ENERATOR R G

A RECENT experience with a client got me thinking about metrics and benchmarking of IT projects. By Dexter Duncan hether you want to install a new server, upgrade your Wide Area Network (WAN) or dive into some Business Improvements with CRM or SharePoint (document management and intranet messaging) you need a reference to plan your budget and schedule. If you have not had experience with

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As an example, let’s say you want to streamline how you manage leave and expenses. The first step is to capture the existing paper based process. Answering the following questions would help define the “scope”. Who needs to sign-off leave requests and how do you treat rejections? What level of expense requires manager only approval, etc. Do you need to print a confirmation or is an e-mail sufficient? Should leave bal-

similar projects, how do you know who to blame when the project is delayed or over budget? Gartner releases key IT metrics each year drawing on thousands of IT performance benchmarks which enable clients to compare their spending and performance against best practice. This article goes through a few of the broad averages so you can see how your project compares. Only 57% of IT projects are completed on-time and only 67% are completed on budget? Why? Are the IT folks bludging?! According to Gartners’ research the main reasons why projects are late or over budget are: • Poor initial scope. • Resource availability. • Scope creep. Laziness is in the eye of the beholder. If you are diligent on how you define project scope, ensure stakeholders and resources are available and identify scope creep, then you are covering the main risks involved in IT projects. IT people do not usually sit on their hands, but if they are not focused in the right areas, then it is a form of laziness. The first step, before a budget is finalised, is to define the project scope. A few paragraphs would be the minimum for a simple project upgrade. A few pages are needed if you are trying to do something custom. If you are not sure what is possible, then you need to go through the idea with your IT provider. For software development, a business analyst documents the requirements by talking to those close to the business. They usually capture what a user screens should look like and the actions that are needed. A good start is to document your existing processes.

ance automatically update or will it manually be entered in you HR system? The more automation, approval levels and complex details you build into your requirements, the more costly it will become. The second step is to ensure stakeholders and key resources are available throughout the project. If they are not available, you project will most certainly be delayed. And if the key resource and stakeholders are not clear on scope for budget, they will add to the scope creep. One of the best ways to avoid scope creep, or adding features in the middle of the project, is to leave all requests for additional features til the end of the project. Reworking estimates and getting approvals for more money always adds to budget and schedule. If you and/or the people on your team do not have a clear idea of scope, are not available or are adding to the scope rather than working within initial boundaries, there is a good chance your project spend and schedule will blow-out. If you have picked your IT folks well, they will be trustworthy and love to solve your business issues, but they are unable to approve scope or ensure your resources are available. Call your local technology partner for more advice. See our websites for more: www.EmpowerIT.com.au or www.EmpowerCS.com.au Dexter Duncan is a Division Manager at Empower IT Solutions. Contact Dexter at dd@EmpowerIT.com.au Reference: Gartner Group, Benchmark Analytics, “IT Key Metrics Data 2011: Key Application Measures: Project Measures: Current Year”, by Jamie K Guevara, Linda Hall, Eric Stegman.

WESTERN SYDNEY BUSINESS ACCESS MARCH 2012


MAGAZINE - PROFESSIONAL DEV

www.wsba.com.au

Has the Internet killed customer service? THERE’S no doubt, the internet has brought about a revolution in retailing. Purchases at the click of a button, from anywhere in the world, often at a discounted price. Service to your customers untouched by human hands; or is it? By Michaela Cladingboel t’s true that internet shopping is much more transactional compared to the relationship-based face-to-face shopping experience. Don’t be fooled though – there are some simple customer service techniques that are absolutely vital if you want to service your internet clients in a way that makes them come back and buy again and again.

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Communication The first rule is to make sure you’re accessible. Internet shopping is based on trust – we don’t know whether you’re going to keep our credit card details safe, and whether you’re really going to send what we’ve bought. So it’s crucial that at least one communication channel is clearly available to your customers, in case they need to contact you. The key thing here is allow for a dialogue with your customers. Websites that make it hard for us to contact the seller make us nervous. What are they hiding? And here’s another important thing – if you provide an email address, make sure someone is checking and responding to it

at least once a day. Don’t keep your customers waiting and wondering. Make sure your online purchasing system immediately sends a confirmation to your customer, acknowledging that you’ve received the order. Another tip is to have a system that allows customers to check the status of their order online without having to contact you at all. Let your customer have control and autonomy. If you have an online booking system, make sure there is a person on the other end of the system at all times. Sounds so obvious, but companies frequently fail to do this, or do it inconsistently. The online system will only be as good as the people actioning what comes out of it at the other end. You’re failing your customers and will lose business if email addresses or automated enquiry systems go unattended. Clear, easy to find product information is crucial for online selling. Amazingly, many online sellers don’t have product specifications and photos of their products. How can a customer know what they’re buying if you make it hard for them to be sure the product is right for them? It’s akin to having no stock on show in your shop, an empty shop window, emp-

WESTERN SYDNEY BUSINESS ACCESS MARCH 2012

ty shelves and no catalogue to browse through. There are no customer service staff wandering the virtual floor to help answer questions, so make sure all your product information is clear, easy to access and upto-date. Also make sure that it’s obvious if you’re out of stock. Don’t make the customer go through the full ordering process, only to discover when they hit the Submit Order button that you don’t have what they need. Although we don’t have customer service staff wandering our virtual store, a helpful option is to allow real-time online customer support chat. This allows a customer to chat back and forth in real time via text with a company

representative. This can make all the difference when time is key and the delay in email responses unappealing. FAQs – Frequently Answered Questions – are another great information tool. Put yourself in your customers’ shoes and make a list of questions you think they might need, such as your returns policy, delivery prices and policies, and so on. So far so good. Doesn’t seem so difficult to get it right, does it? In part 2 of this article, we’ll explore what happens when things go wrong – and they do – in internet retailing. Michaela Cladingboel is a customer service expert who conducts corporate training with PD Training, a national corporate training firm. Visit www.pdtraining. com.au

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WESTERN SYDNEY BUSINESS ACCESS MARCH 2012


“I probably have reviewed over 3,000 to 4,000 shows since 1942, ... That’s the top! The best word to use was ‘mind blowing’!” — Richard Connema Critic for Talkin’ Broadway

“So inspiring... I may have found some ideas for the next Avatar movie.” — Robert Stromberg Academy Award-winning production designer for Avatar

“The best! The best, the best!” - Charles Wadsworth Founding artistic director of the Chamber Music Society of Lincoln Center

REVIVING 5,000 YEARS OF CIVILIZATION.

“A marvelous evening… I am completely enchanted.” — Her Royal Highness Princess Michael of Kent

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27 APRIL - 6 MAY SYDNEY - CAPITOL THEATRE Ticketmaster.com.au 1300 723 038 Shen Yun Ticketing Office: 02-9146 4929 WebTicketCenter.com/sydney Presented by Falun Dafa Association of NSW Inc.

10 -15 APRIL

MELBOURNE - THE REGENT THEATRE

ALL-NEW 2012 SHOW WITH LIVE ORCHESTRA

ShenYun2012.com WESTERN SYDNEY BUSINESS ACCESS MARCH 2012

Ticketmaster.com.au | Tel: 1300 111 011

17 -18 APRIL

CANBERRA - CANBERRA THEATRE CanberraTheatreCentre.com.au | 02-6275 2700 *All individuals’ quotes originally published by The Epoch Times and New Tang Dynasty Television.

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An unmatched theatrical experience… “A mesmerizing performance...” — Donna Karan, Creator of DKNY

REVIVING 5,000 YEARS OF CIVILIZATION.

The Five Millennia Begin, 2009.

masterful moving exquisite WORLD’S TOP CLASSICAL CHINESE DANCERS LARGE-SCALE ORCHESTRA STUNNING ANIMATED BACKDROPS EXQUISITE COSTUMES AN ALL-ORIGINAL PRODUCTION

HEN YUN. For Chinese, the words evoke a sense of wonder, magic, and the divine. To audiences who have seen it, they recall the experience of a lifetime— a moment so powerfully beautiful it touches the soul.

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Discover the grandeur of a fantastically rich culture, that of classical China, brought to life through brilliantly choreographed dance and mesmerizing, all-original orchestral compositions. Magnificently costumed dancers—the world’s elite—move in poetic arrangements that evoke pastoral beauty, imperial drama, and the glory of an ancient civilization.

— San Francisco Chronicle

“The ancient Chinese wisdom it conveyed will not only benefit the Chinese people, but also the whole world.” — Ted Kavanau, founding Senior Producer of CNN Headline News

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CHINESE IS AN IMMENSELY rich language. Many characters contain deep inner meanings and nuances that are difficult to translate into English, such as those in our very name: Shen Yun.

This season, discover what art was meant to be. Discover Shen Yun.

“A visually dazzling tour of 5,000 years of Chinese history and culture.”

ShenYun2012.com

What Does “Shen Yun” Mean?

“Brilliant choreography… extravagantly beautiful.” – Broadway World

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27 APRIL - 6 MAY SYDNEY - CAPITOL THEATRE Ticketmaster.com.au 1300 723 038 Shen Yun Ticketing Office: 02-9146 4929 WebTicketCenter.com/sydney

The character Shen (Ṙ) is a general term for “divine” or “divine being.” Chinese cosmology, in fact, is replete with hundreds of deities, Buddhas, and Taoist immortals who play different roles and color the canon of Chinese history with thousands of rich stories. This feeling of the divine plays into the second character of our name: Yun (ㅥ). Its meaning is far greater than what literal translation can capture. “Yun” refers to the overall manner of a dancer, a dancer’s style, and the meaning behind his or her movements. So, when we put “Shen” and “Yun” together: it’s about the grace, compassion, and sublime beauty of heavenly realms that are shown through the subtlest expressions and gestures of our dancers. That is the essence of the name “Shen Yun.”

Presented by Falun Dafa Association of NSW Inc.

WESTERN SYDNEY BUSINESS ACCESS MARCH 2012


MAGAZINE - BUSINESS CULTURE

www.wsba.com.au

Conduct your own business culture DEALING with SME’s on a day-to-day, I find similar issues pop up from all businesses.

By Jo Hanlon he hot topic these days (hopefully once companies have their more fundamental HR related compliance processes sorted) is: How do we get the company culture we want? I set myself a challenge to come up with an anagram that may help define some of the key factors making up a company culture. I hope it makes things a little easier to remember: Your company culture shapes your company: Communication style, tone, look, feel, frequency and content, that is; what is talked about, how often its discussed and how it’s talked about. Just as much cultural insight can also be

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garnered from what is NOT talked about as well as what is talked about. Ideally your company culture will Underpin how key stakeholders behave whilst there, how they treat you and each other and how they interact with your company, remember these can be both internal staff plus external client, supplier and partner stakeholders. Company culture both creates and influences the Leading (future looking) goals and measures of success as much as it evolves from the Lagging (already past) goals and measures of success (or failure). Your goals and strategies tell much about what is important to the company and what issues staff need to focus on. Company culture will show the Truths about your company values. It portrays the company’s picture of how it sees itself and what people can rely on it for, or not! A great company culture can be a Unique emotional selling point for the company, making sure it stands out and appeals

to both staff and clients. Is this a company I want to work for or deal with or not? Your company culture is generally Real. It is hard to hide the real culture vs the desired culture for long if they are not aligned. This means it is important that what people hear they can expect to see in reality. Congruence builds trust, this is a key factor in the success of a growing, happy and healthy company. Lastly, wouldn’t you want your culture to be Engaging and energising so as to keep staff interested in contributing genuine effort

and contribution whilst at work; be proud to say they belong to your company and be attractive to talented staff as a prospective employer? As you will have gathered by now, company culture is a matrix of feelings, thoughts, behaviours, traditions, experiences and messages that are both consciously and unconsciously projected which all combine to determine how a staff member or client experience their interactions with the company, right from the moment they first hear of you. Ideally it is supported by

your brand, the public bits that all stakeholders see first. Culture starts by accident rather than by design. It is normally in alignment with the values and skills of the company founder, then it comes under the spotlight as the company grows. So, back to the question I often get asked by my clients: OK, so how do we get the company culture we want? How can we change what we have? I’ve run out of space, so put on your thinking caps in the meantime decide what attributes you’d like your culture to have. Do you want to be innovative (Bankwest) or stick with the tried and true (ANZ). Do you want to be friendly and casual (Jetstar) or formal and more structured (Qantas)? Think about what is “normal and expected” for your industry. Do you want to fit or break that mold? Jot down 12 or so key words that you’d like people to use when describing your company culture. Thanks for reading and we’ll talk soon. Jo Hanlon is a HR Coach and business consultant at Mind Your Ps. Visit www. mindyourps,.com.au

Subcribe for FREE on-line at www.wsba.com.au one:one coaching and mentoring strategic HR coaching

staff profiling

Jo Hanlon MBA m

0403 497 120

e

jo@mindyourps.com.au

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ACCESS HOW-TO event

www.wsba.com.au

ACCESS networking event a sell-out! THE Western Sydney Business Access HOW-TO Succeed in Networking and Sales event held at Rydges Hotel, Parramatta on February 22 was a sell-out . he audience was treated to almost three hours of cutting edge business education from Dr Jim Taggart and George Mavros – two leaders in their respective fields. Dr Taggart told the audience that the world had changed and with those changes the practice of networking had become more important and scientific. He said in days past the mantra was about who you knew; today it’s about who

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knows you. He said business people needed to be authentic when networking and not look for the best and biggest deal every time. “When I go to a networking event I am looking to do business, not get business. There is a big difference,” Dr Taggart told participants. George Mavros told participants that one of the biggest mistakes sales people could make was to push their customers into a purchase they do not want or need.

“You are better off from the relationship standpoint to recommend a competitor’s product. The integrity of the relationship is paramount,” he said. Both agreed that business people needed to focus more on how customers feel rather than pushing their products on to customers in order to make a quick sale. “We will often forget what someone says about us but we will never forget how they made us feel,” said Dr Taggart. The audience included representatives from Deloitte Western Sydney, Suncorp Bank and many western Sydney based businesses.

WSBA publisher, Michael Walls said this event had proved that savvy business people are looking for up to date information presented by experts in a friendly environment with the opportunity to network. Mr Walls said he would be confirming the dates and subject matter of another three events for 2012 over the next few weeks. “A special thanks should go to the sponsors whose great support made this event possible. They include the team at My Life’s Good Book, Snap Printing George St Parramatta and Rydges Hotel,” Mr Walls said. Visit www.wsba.com.au for updates.

WESTERN SYDNEY BUSINESS ACCESS MARCH 2012


MAGAZINE - PEOPLE

www.wsba.com.au

A night to be remembered

Corporate branding for your business

WHAT a night! Our 85th celebrations will be long remembered by our members and guests as appropriate and prestigious. More than 140 people attended the swish event. By Jill Woods eynote speaker NSW Treasurer, Mike Baird was his usual articulate self and enthusiastically praised the work and achievements of our chamber over so many years. Stuart Ayres MP who introduced Treasurer Baird made it clear in his own direct though affable fashion that we are serious about seeing this region properly developed and supported by government and other key stakeholders. Roger Hood on behalf of NSW Business Chamber and Mary Jo Capps, President of the Sydney Chamber also joined in our festivities. Mayor Cr Greg Davies was generous with his words of praise for members and their contributions to the local economy and wider community projects too. Other Cake Councillors were also in attendance.

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L- R PV Chamber Executive 2012 with NSW Treasurer

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MAGAZINE - LEGAL

www.wsba.com.au

Legalities of working in a cloud Wikipedia defines Cloud computing as: “The delivery of computer as a service rather than a product, where shared resources, software, and information are provided to computers and other devises as a metered service over...the internet. End users access cloud based applications through a web browser or a light weight desktop or mobile app while the business software and data are stored on servers at a remote location. Cloud application providers strive to give the same or better service as if the software programs were installed locally on end-user computers.” not need to purchase a license to use Lion or Micro-Soft 8 rather pay a fee when you use it on line in the cloud (that is over the internet).

Expectations from cloud computing contracts

By Steven Brown he idea behind cloud computing is that rather than buying a CD or DVD containing music, a movie or a game, the user accesses the music, the movie and the game on a use and pay basis rather than having to purchase a license of the intellectual property in perpetuity. The theory being that it should be cheaper to hire the use of the music, movie and or game than to buy the intellectual property outright. In a business environment, you would

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Cloud computing is delivered like any service: under a contract. A contract can be described as the vehicle by which the risks inherent in the transaction are allocated between the user and cloud computing service provider. If things do not work out, the user and cloud computing service provider may have liabilities to each other. Either or both may have liabilities to affected third parties. In simple terms the expectations of the parties are quite straightforward: Recently we were asked to advise a client to review a proposed cloud computing service contract. The contract from a legal perspective was fine. The issues we highlighted were

Parties expectations Cloud computing service provider’s

Users

To get paid

Have use of the software when required

To provide use of the software agreed to be used

Have use of the software as required

That the user will use the services provided in the Cloud

Receive a service as promised to be delivered

To provide the service as contracted for To be left alone

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To be left alone

The World’s

Not to be interfered with.

Wikipedia diagram of Cloud Computing

more commercial than legal but nevertheless sufficiently real for the client not to proceed with the proposed arrangement. For example, User under a cloud computing services contract (like any acquiring of services under a services contract) must take the following commercial risks: • The risk that the services paid for will be provided. • The risk of not being sued. • The risk that the services will be available when required. • The risk that the services will be provided as promised. With Cloud Computing there are these risks and more. Let us assume that you are contracting to have your database kept in the cloud. Your client list, accounting records, intellectual property are all retained by a cloud service provider. The commercial risks you run in entering such a contract can all be classified as performance default risks being, as follows: If the Cloud Service Provider is solvent: a. As the term of the service agreement continues all of your information is on the servers in the cloud. If the price you are being charged becomes too costly, to change how you have to work you need to find another cloud service provider or you have to incur the capital cost of purchasing your own hardware and to buy the software licenses for the programs you are using. b. The applications you can use will be those chosen by the service provider. You might be able to use more but will need to get the consent of the cloud service provider first. Consequently, having the ability to try a new process and achieve a competitive advantage over competitors could be delayed or lost by using cloud computing. c. If you have to find another cloud service provider you have to get the information belonging to you out of one cloud into another. Whether this will be done in a timely manner for you to continue to run your business is a risk you need to bear. The outgoing cloud service provider may promise to look after you but if the price of the service becomes too great

they obviously aren’t looking after you and you have to run the risk that the secondary promise will then be honoured in circumstances when a primary promise has already been breached. d. There is the risk that the information will not be properly destroyed and it falls into competitors’ hands. Your security is at the mercy of the cloud service provider. It is not in your control. e. There is the risk that the information is not in Australia. The information could be kept in the cloud offshore making obtaining access difficult if not impossible should you need to get the information in a hurry and the cloud service provider is not assisting you. If the Cloud Service Provider becomes insolvent: a. The issues above are further exacerbated by you having to deal with an insolvency practitioner who will have no need to look after your interests as they will not have a need to have any ongoing relationship with you. a. The insolvency practitioner may not be able to get to the information as the information may be on hardware owned by a third party that was leasing the storage space in the cloud to the cloud service provider. Having regard to the commercial issues that we highlighted the client decided not to proceed with the entering the cloud for the moment. The use of cloud computing for non-essential services, entertainment or games is worth considering but at this time the lack of security and the fact that you could ultimately be held hostage by the cloud service provider are risks that we do not see as being ones that clients should take. Unfortunately the world of cloud computing is too risky as it is not sufficiently real to run the risks of putting one’s entire business in an incorporeal world that is not accessible to you if the need arises. Steven Brown B.Ec, LL.B, (Sydney), M. App. Fin (Macquarie), FAICD, Accredited Business Law Specialist, AIMM, FPIAA is Chairman of Etienne Lawyers. Contact him at 02 8845 2400.

WESTERN SYDNEY BUSINESS ACCESS MARCH 2012


MAGAZINE - ACCOUNTANCY

Accountants trending towards innovation

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A HOT topic right now going around one of the world’s oldest professions is ‘can accountants be innovative’.

By James Solomons CA t’s a tough question to answer given the traditional historical approach of the work that is completed by accountants in public practice roles. But to have any chance of forming an opinion on the matter we really have to define what innovative means when it comes to accountants. The big innovation in the industry in the past 12 months has been the move to the cloud and the surge forward of web based accounting and bookkeeping programs such as Xero who have taken on the industry giants MYOB and Quicken in a battle to win the cloud based market. So, if your accountant moves you onto Xero or MYOB LiveAccounts or Quickbooks Hosted does that mean that they are themselves innovative or are they just responding to innovative changes in the industry? Another innovation is the increase in firms offering fixed price service agreements. Whilst a number of firms have been offering this option for many years, it is only recently that this is becoming mainstream and beginning to replace the old time cost basis for billing. But again, if your accountant offers this pricing model to you tomorrow and bundles up their services in a nice neat package and provides you with an option to pay monthly are they themselves being innovative or are they just responding to client demands for no end of year surprises. As you can see from the two examples above it really is an open ended argument which can be viewed from either side. (Although, does this mean that really only few people in the world are truly innovators?) Maybe to be innovative accountants need to find different ways to interact and advise their business clients? And I’m not referring to using Skype or FaceTime to hold meetings. Using the latest technologies to design their own products that deliver a more streamlined business advice model via smart phones and tablets as well as through the cloud could be one way? But is this really something for an accountant to do or should they let the experts develop these methods and then adopt them for use? Or maybe, with compliance services put to the side, accountants need to change the

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way they are paid for business advice services. Typically business advice is provided either on an hourly basis or packaged fee basis, but what if an accountant didn’t charge like this but took a profit share or equity share in the business they advising? Is this an innovative approach? Maybe not amongst the business coaching industry where this has been a pricing model for many years, but in the accounting profession this isn’t really mainstream. Would it work in practice? Accountants are experts with numbers but would they be able to offer useful advice in other areas like marketing and sales etc.? Would they need to though if their client has the expertise in these areas but lacks the financial mind required to make their business work?

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One thing is for sure though, under this type of model the advice provided would not be generic off the shelf advice often reproduced time and time again for multiple clients. This approach really is making the accountant accountable for the advice they provide because if it is wrong they don’t get paid! With changes to the industry through tax reform coupled with increasing economic pressures, accountants are facing a business clientele looking for better advice with greater expectations. In light of this, accountants have to be innovative in their own right to survive these changes as we have done for over a hundred years. So maybe we can really be innovative as we have been around for so long. Or are we still around because we have had the luxury of a compliance regime which gives us an almost endless supply of taxpayers with which to approach for work? Is it because of this that we don’t need to be innovative? So the question can your accountant be innovative really can’t be answered in this piece but maybe next time you meet with your accountant ask them the question! James Solomons is a Chartered Accountant, Xero Certified Adviser and Partner at Elite Financial Solutions based in Epping. Contact him on 02 9868 3900 or at james@elitefinance.com.au

WESTERN SYDNEY BUSINESS ACCESS MARCH 2012

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There are two things a business cannot do without, sales and marketing! Not all successful marketing requires a multi-million dollar advertising budget or expensive publicity campaigns But what it does require is a new way of looking at business world, this is a mindset that views every situation as an opportunity to promote your business. With so many different avenues of promotion it become a minefield to know where to market, and there’s no guarantee of new business. If it’s guaranteed new business you are after, if new sales are what you want, if you have excess inventory, if you have downtime in your business

There is an answer

BBX has the capability to breathe new life into your business by creating new sales for you and show you how to conserve cash in the other key areas of your personal and business life BBX is able to offer your business a unique opportunity to be part of its network and stands by its gurantee of “generating new business for your business”

For a competitive edge in your business call 02 9622 9000 42

WESTERN SYDNEY BUSINESS ACCESS MARCH 2012


Wide Span Homes supply affordable premium steel homes that come in kit form - giving you the freedom to finish your home to suit your taste and budget.

Country Home from $40,500

About Wide Span Homes

The Concept

Wide Span Homes is a division of the Steelx Group, which is one of Australia's leading national suppliers of world-class quality steel building solutions.

Wide Span Homes has provided thousands of kit homes to Australians to use for various purposes, from their main residential dwellings, holiday homes right through to studio offices and granny flats.

The Steelx Group is an Australian owned and operated family business and has grown to be a market leader since its inception in 2000. Our success is due mainly to our defiance to compromise quality. The Steelx Group supply world-class steel buildings, which have been engineered by industry professionals who are passionate about what they do. Our steel kit homes have been designed for Australian families, by an Australian family and have provided an affordable housing solution to the Australian market. Engineering and floor plans

We supply the steel shell of our homes in kit form, ready for construction and fitting out allowing you the option to complete as an owner builder or employ the services of a local builder to assist. How We Save You Money Our system saves you money by supplying the basic steel products required for your home without on selling additional items with an added margin. Many suppliers offer standard inclusions like windows, doors, gyprock, plumbing and more to you with an additional margin. WE don’t - so you can save by purchasing these items yourself to suit both your taste and budget - minus the margin!

Our range of homes include all engineering plans, floor plans and elevations for you to submit to council.

Call 1300 WIDE SPAN (1300 94 33 77) 014511

Check out our full range online at www.widespanhomes.com.au

WESTERN SYDNEY BUSINESS ACCESS MARCH 2012

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MAGAZINE - LIFE INSURANCE

www.wsba.com.au

Life cover in the super context IN the last edition of WSBA we spoke about life insurance and eluded to the different covers available. In this article we will provide an overview of having life insurance inside or outside of superannuation, and how the structure of your life insurance (and TPD) will affect the benefit payment made. Within super you generally have term life, TPD and income protection cover. We will be discussing term life and TPD only in this article.

By Christina Matthews and Dr Jim Taggart OAM hen insurance is held outside of super, the ownership of the policy can vary, depending on the need for the policy. For example, more commonly if a policy is being used for family protection, the policy will be owned by the life insured, or the spouse of the life insured, or maybe even jointly. A beneficiary may be nominated under the policy, and if no beneficiary is nominated then the benefit would generally be paid to the insured’s estate. Premiums for personal insurance policies outside of super are not generally tax deductible. If the policy is being used for business purposes, then the policy could be owned by the life insured, a business partner, or even a business entity depending on the purpose of the policy (key man cover, buy sell cover etc). Premiums for business insurance policies may be tax deductible depending on the purpose of the policy. When insurance is held within superannuation, the policy will be owned by the superannuation fund Trustee, and this includes Self Managed Super Funds. Premiums paid are deemed to be super contributions and will count towards contributions caps. The premiums paid may be tax deductible if you are paying them from after tax dollars. Quite often premiums are paid from super contributions made on your behalf by

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your employer which do not affect your personal cash flow. The most appropriate type of policy ownership will depend on your circumstances, and the purpose of the policy. Advantages of having insurance in super One of the main advantages of having insurance cover in super is tax efficiency. Premiums being paid from your super fund are deducted from contributions made, and therefore do not affect your cash flow. If you are paying the premiums from after tax dollars, you may be entitled to claim a tax deduction for those premium payments. In addition to this you may also be entitled to the Government Co-contribution for the premium payments (from after tax dollars) if you quality under the income threshold. Insurance held within super is treated differently when paid to dependent and non dependent beneficiaries. This is a very important point to consider when you are looking at having your insurance held within super. The definition of dependent is different under the Tax Act and the SIS Act1. The SIS Act dictates who can receive a benefit payment from superannuation, but it is the Tax Act which dictates how the benefit is taxed in the hands of the beneficiary.

Disadvantages of having insurance in super One of the main disadvantages of having insurance in super (as part of an accumulation fund) is that every dollar spent on insurance premiums being deducted from your super account balance, means less money to invest for retirement. The contribution caps also have a bearing on how much you can put into your super each year as a concessional contribution, and when you take into consideration that insurance premiums count towards this cap, it reduces to opportunity to contribute investment dollars. 1 SIS Act – Superannuation Industry (Supervision) Act 1993

Another disadvantage is that holding insurance in super is more restrictive than holding the cover outside of super as a condition of release must be met for the benefit to be paid. This is not generally an issue for term life cover, as the main event for this cover to be paid is the death of the life insured. However, under TPD (and income protection) the benefit payments are more restrictive when the cover is held in super as whilst the claim may be approved by the insurer, the benefit may not be released by the Trustee to the insured person if condition of release under the SIS Act is not met.

Estate planning considerations As noted earlier, beneficiary nominations are treated differently for cover held in and outside of super. For cover outside of super, generally the benefit is paid to the life insured (for TPD cover), and to the insured’s estate or nominated beneficiary for term life cover. There are not usually any tax consequences to the person receiving the benefit upon receipt of the benefit. However, the beneficiary nomination for cover held in super can be made as nonbinding or binding, or as determined by the super fund Trustee. If the Trustee is a SMSF, then the Trust Deed should be reviewed to ensure that a benefit payment can be made to a nominated beneficiary and not automatically paid to the insured’s estate. Payment to a beneficiary under a super policy may have a tax consequence depending on whether the beneficiary is a fi-

nancial or non financial dependent. It is very important to discuss your estate planning arrangements with a duly qualified adviser (legal and/or financial) so that you put into place the arrangements that you would like, and also make sure that any previous arrangements are ‘over ridden’ in the event that your personal circumstances change. The consideration of having your insurance cover within or outside of super is very important, and either course may have an impact on your cash flow, may have potential tax implications, and may affect the ultimate payment of a benefit to your beneficiaries/estate. It may be an appropriate strategy for you to have cover both inside and outside of super to get the best result overall. There are a number of other important matters to consider when you are looking at insurance cover inside or outside of super, and this brief article has only touched on some of those issues. You should always seek the guidance and advice from qualified advisers in these areas to make sure you have the most appropriate strategies for your circumstances. Christina Matthews and Dr Jim Taggart OAM are Representatives of Taggart Nominees Pty Ltd. Taggart Nominees Pty Ltd holds AFSL No: 234973, and is a Life Insurance Broker. The information is this article is general in nature and does not constitute financial advice. References: Superannuation Industry (Supervision) Act, 1993. CCH Australian Master Financial Planning Guide, 14th Edition, 2011/12.

Want the connect with business owners and managers in Sydney’s west? WSBA is western Sydney’s most popular business publication. Contact us to discuss an advertising package that suits your budget.

02 45 72 2336 info@wsba.com.au 44

WESTERN SYDNEY BUSINESS ACCESS MARCH 2012


MAGAZINE - BUSINESS IMPROVEMENT

Hidden relationships can be dangerous I’M sure we all remember the Hans Christian Andersen Tale about how the emperor who was convinced that nothing at all was the most spectacular suit he could own; and that if he couldn’t see it, it was his failure rather than that the clothes did not exist. How embarrassing when he went down the road!

By Schon G Condon, RFD usiness can actually be very similar, and this was recently proven so, again. Especially for business owners who have more than one component to their own business. “Not me,” did I hear you say “I’ve only got one company, this is not for me.” Well that may possibly be so, but just as equally, possibly not! Read on. When setting up businesses the immediate rush of blood over, the new shelf company in hand, and copies of a whole bundle of documents that have to be sent off to the Australian Taxation Office, Workers Comp, and a wide variety of other statutory authorities are complete. A job well done, well, lets hope it is; at least for that part. Quite often there can be hidden relationships that seem to escape the clear attention of the best planners. Clearly these exist when two related companies exist and there is a business relationship between them, for example one imports and the other wholesales or one buys and the other stores, the list of alternates is almost endless. However there can be many other financial relationships where there either should be, or in some instances must be, a documented relationship. The need can arise for various reasons and certainly the most obvious to all being in support of one’s taxation returns; but where either your business or possibly a business that has a significant involvement with yours runs into trouble then the lack of proper documentation can be more than just unsettling. Recently we came across a situation where, the Family Superannuation Fund had acquired the business premises. Alas, without a formal lease, the arrangement was at best ad-hock, with payments varying each month, admittedly never less than the monthly repayment but often less than what could have been argued as a marketable rent. Many issues arise: the fund is not receiving its due entitlement, the survivability of the fund from a technical compliance point of view could be put at risk and the funds

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ability to claim fully in an insolvency situation is put significantly at risk. That is one of the more significant situations but others can be just as dangerous. For example, merely having a member of the family or friend who consults (i.e. works part time but doesn’t want to be an employee) to the business. Without an official document (contract or agreement) between the parties you are not just likely to end up with a failure of the relationship, but more importantly it can end up in a serious and costly employment law claim. Issues like this come up all the time. Money borrowed from the family should be no different to a bank loan. That is interest is paid and yes, if it is significant enough then it should be secured against the business. If there is no room for interest then accept the fact that it is capital and plan on paying a dividend. Business is business and what you should be doing for an arms-length transaction is essentially no different to what

should be happening for the more proximate ones. Knowing and understanding the law will enable you to use it to work for you not against you. Knowing its relationships will enable you to use it to your advantage. Two quick examples: family members are considered related employees under the Corporations Law and have restricted benefits (entitlements to unpaid wages and salaries) in insolvency situations. Consequently if you are in a high-risk business category then rather than employ your own child, consider employing a colleague’s child, whilst they employ yours. They can consider rejoining you and becoming a partner when they have the experience and business acumen to do so. Who knows they might even come in with some new ideas. Likewise if you use equipment regularly that does not belong to the business ensure its title is properly recorded under the new Personal Property (PPS) Securities Register. It protects its ownership. You wouldn’t walk down the road naked, so why do business that way. Knowledge well used is power. Schon Condon is managing partner at Condon Associates. Visit www.condon.com.au

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